Adoption of Bill C-10, which will tax foreign investment trusts, will result in significant and unnecessary costs for Canadian pension funds, according to the Pension Investment Association of Canada (PIAC).
PIAC is calling for amendments to the Bill, which is currently before the Senate Banking, Trade and Commerce Committee. The suggested changes would ensure that the
Non-Resident Trust (NRT) regime would not apply to pension funds.
“There is no sound policy rationale for applying the NRT regime to registered
pension funds,” PIAC declared in a release. “Unnecessary costs serve to reduce funds available to pay pensions.”
Many pension plans invest in offshore trusts—including foreign real estate, foreign public and private equity, and foreign bonds—to help improve returns and reduce risk. PIAC said this type of global investing is consistent with the lifting of foreign content limits for pension funds and RRSPs in 2005.
PIAC’s full submission can be found at www.piacweb.org, under
Submissions to Government.
PIAC calls for amendments to Bill C-10
Pension Investment Association says bill will result in unwarranted costs for pension funds
- By: Regan Ray
- December 13, 2007 December 13, 2007
- 09:45