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ARTICLE · 28 JANUARY 2014

The New Trust Loss Restriction Rules And Investment Funds

Borden Ladner Gervais LLP
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In the 2013 federal budget, the Canadian government announced its intention to extend the tax loss restriction rules to trusts.

CanadaTax
Craig Webster
Craig Webster
Laura White
Laura White
Stephanie Wong
Stephanie Wong
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In the 2013 federal budget, the Canadian government announced its intention to extend the tax loss restriction rules to trusts. Previously, loss restriction rules applied only to corporations when control was acquired. The new trust loss restriction rules were enacted on December 12, 2013, with retroactive effect beginning after March 20, 2013. Investment funds (including pooled funds, mutual funds and exchange-traded funds) are not exempt from the application of the rules.

This bulletin describes the new trust loss restriction rules and identifies implications for the investment fund industry. The rules present some significant operational challenges.

Trust Loss Restriction Rules

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