The federal Finance department announced draft amendments to tax laws and regulations designed to reduce delays in the preparation of information slips for publicly-traded trusts and partnerships.

The proposed regulations would require publicly traded trusts and partnerships to disclose information concerning distributions and allocations of income and capital made in their units within 60 days after the end of the taxation year or fiscal period for which the information is relevant. For trusts and partnerships that invest in other publicly traded trusts, partnerships or corporations, this information would be required to be disclosed within 67 days after the end of the calendar year. This is a new requirement that is expected to make the filing process more efficient.

Finance says that investment managers could use this information to prepare the information slips that are required to be issued to their investors within 90 days of the end of the year. The taxation year and fiscal period of publicly traded trusts and partnerships normally end on December 31 of each calendar year. In the case of publicly traded trusts, a December 15 year-end can be used.

Proposed amendments to the Income Tax Act would provide authority for regulations requiring the disclosure, which would be made through a posting of the required information on the website for CDS Innovations Inc. (a subsidiary of the Canadian Depository for Securities). The proposed amendments were developed in conjunction with the investment industry.

These amendments are to be effective in respect of information required to be disclosed in connection with assessments in respect of taxation years (or fiscal periods, in the case of publicly traded partnerships) that end after today.

Minister of Finance Jim Flaherty said the amendments will make the tax system more efficient.

“Our government is committed to making the tax system as effective and efficient as possible,” said Flaherty. “The changes I am announcing today will address many of the concerns expressed by taxpayers about the timing of their receipt of tax information slips by helping investment managers to meet filing deadlines.”