CIBC Aids US Taxpayers With Canadian Fund Investments

By Editorial 11 February, 2014

In a press release, CIBC Asset Management Inc. (CAM) has announced that it will make reporting information available that will help American tax filers who own Canadian mutual funds to receive more favorable United States tax treatment.

Under US tax law, it is explained, most Canadian mutual funds are now subject to US Passive Foreign Investment Company (PFIC) rules, which are aimed at limiting the extent to which investors classified as US persons can defer US tax through foreign investments.

CAM will provide PFIC Annual Information Statements for the Renaissance Investments family of funds, Imperial Pools and CIBC Personal Portfolio Services in non-registered retirement savings accounts, starting with the 2013 tax year.

These statements will allow investors to make the Qualified Electing Fund (QEF) election on their US tax returns. The QEF election allows for long-term capital gains to be taxed at more favorable rates, while interest penalties can be avoided.

"We are pleased to be among the first Canadian fund providers to offer customized statements that benefit our investors who are affected by this US tax law," said Steve Geist, President, CIBC Asset Management.

"These new PFIC statements will allow US tax filers to receive the benefits of owning mutual funds without having to worry about potentially punitive US tax consequences," added Jamie Golombek, Managing Director of Tax and Estate Planning with CIBC Wealth Advisory Services.

It is suggested that clients should contact their advisors in order to obtain more information and request their PFIC Annual Information Statement, if appropriate.

Tags: Individuals | Compliance | Wealth | Tax | Investment | Tax Compliance | Law | Retirement | Investment Funds | Canada | United States | Individual Income Tax | Expats | Investment | Invest | Investment | Tax |


News Archive