TORONTO, Dec. 13, 2013 /CNW/ - To help investors in Mackenzie Funds who file US tax returns, Mackenzie Financial Corporation (Mackenzie Investments) announced today that it will make available the US tax information necessary to complete these returns.
For US tax filers, Canadian mutual funds are viewed as passive foreign investment companies (PFIC), which means they are subject to prescribed tax rules intended to curb the extent to which US persons can defer tax in the US through foreign investments.
By providing detailed US ordinary earnings, net capital gains and distribution information - fully customized for each investor - on the PFIC annual information statements (AIS) it generates, Mackenzie Investments is enabling US persons, if they choose, to make an election to treat each of the Mackenzie Funds as a Qualified Electing Fund (QEF) for US federal income tax purposes for the tax year 2013 and beyond. To make it even more convenient for US taxpayer clients and their advisors, Mackenzie Investments will provide information on a per-unit/share basis, and the date and amount of distributions per unit/share, in US dollars.
"PFIC rules affect many US persons, including those who reside in Canada," said Carol Bezaire, Vice President, Tax and Estate Planning at Mackenzie Investments. "Making a QEF election may, in certain circumstances, mitigate the adverse aspects of holding a PFIC investment. We're making it both easier and more cost-effective for our US taxpayer clients to complete their US tax filings."
This personalized tax reporting is available on all series of all Mackenzie Funds. Advisors can request an AIS on behalf of their clients for each account containing mutual funds upon which they may wish to make a QEF election.
It is recommended that affected US persons consult with their advisor and tax professional who understands both Canadian and US tax issues, to discuss any PFIC-related tax implications.
For more information on this topic, please refer to the Mackenzie Investments paper entitled Impact of U.S. "PFIC" Rules on Canadian Mutual Funds.
Mackenzie Investments was founded in 1967, and is a leading investment management firm providing investment advisory and related services. With $65.3 billion in assets under management as at November 30, 2013, Mackenzie Investments distributes its investment services through multiple distribution channels to both retail and institutional investors. Mackenzie Investments is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's premier financial services companies with over $131 billion in total assets under management as at November 30, 2013. For more information, visit mackenzieinvestments.com.
SOURCE: Mackenzie Investments
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