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ARTICLE · 26 APRIL 2024

Budget 2024: Legislative Changes Of Note For Investment Funds

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The Income Tax Act (Canada) (the "Tax Act") contains a host of provisions that influence how investment funds are structured and administered.

CanadaFinance and Banking
Michael Friedman
Michael Friedman
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The Income Tax Act (Canada) (the "Tax Act") contains a host of provisions that influence how investment funds are structured and administered. The Tax Act also restricts the types of investments that may be held by registered plans and in other tax-advantaged accounts without adverse tax consequences.

In Budget 2024, the Government acknowledges that the restrictions placed on the property that may be held by registered plans have become unduly complex. Conversely, the Government has identified concerns with how certain tax-advantaged investment funds are administered and, in this regard, proposes to tighten the conditions that must be satisfied for a corporation to qualify as a "mutual fund corporation" for the purposes of the Tax Act.

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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