Principal Issues: Announcement of deferral of implementation date for position on application of advantage tax rules to investment management fees.
Position: Deferred until Finance completes its review.
XXXXXXXXXX 2018-077926 D. Wurtele September 28, 2018
Dear XXXXXXXXXX:
Re: Application of advantage tax rules to investment management fees
We are writing to provide you with an update on the technical position that the CRA announced at the 2016 Canadian Tax Foundation conference concerning the application of the advantage tax rules to investment management fees (2016-067080), which implementation was deferred to January 1, 2019 in our letter of September 15, 2017 (2017-072239).
We wish to advise you that we will be deferring implementation of the position pending completion of a review of the issue by the Department of Finance Canada.
Thank you for your assistance on this matter.
Yours truly,
Stéphane Charette, CPA, CMA, MBA
Director
Financial Industries and Trusts Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch