Lower Taxes for Pooled Funds

The 2021 Federal Budget proposes to ease indirect tax burden on pension plan members

Matthew Elder 23 April, 2021 | 2:09AM
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Among the many proposals presented in last Monday’s 2021 federal budget is a measure intended to lighten the tax burden and, by extension, improve investment returns for investors in pooled funds and other funds that do not benefit from rules that favour mutual funds and segregated funds.

The issue is that pooled funds often are registered investments under the federal Income Tax Act, but do not qualify as mutual trusts or corporations because they have fewer than 150 unitholders. These pooled funds are set up for large institutional investors and certain employees, plus other qualified individuals to offer scalable low-cost retirement saving vehicles.

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Matthew Elder

Matthew Elder  

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