Canada's New Government Introduces Measures to Make the Tax System More Efficient

News Release

Ottawa, July 4, 2007 2007-058

Related Documents:

Legislation - Amendments to the Income Tax Act and Regulations Facilitating the
Preparation of Information Slips Reporting Income from Certain Mutual Fund
Trusts and Partnership

Notes - Amendments to the Income Tax and Regulations Facilitating the
Preparation of Information Slips Reporting Income from Certain Mutual Fund
Trusts and Partnerships

As proposed in Budget 2007, the Honourable Jim Flaherty, Minister of Finance, today announced draft amendments to the Income Tax Act and the Income Tax Regulations that will make the tax system more efficient. They will reduce delays in the preparation and issuance of T3 information slips (relating to distributions of publicly traded trusts) and T5013 information slips (relating to allocations of publicly traded partnerships).
"Our government is committed to making the tax system as effective and efficient as possible," said Minister 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."
The proposed amendments to the Income Tax Act would provide authority for regulations requiring the disclosure by publicly traded trusts and partnerships of information enabling investment managers to prepare the tax information slips that they are required to issue to investors. This disclosure 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 Limited), a website that is designed to provide this type of information to investment managers. The proposed amendments were developed in conjunction with the investment industry.
The proposed regulations would require publicly traded trusts and partnerships to disclose information concerning distributions and allocations of income and capital made in respect of each of their units within 60 days after the end of the taxation year or fiscal period for which the information is relevant. For publicly traded 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 to which the information relates. This is a new requirement that is expected to make the filing process more efficient.
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 upon election.
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.
The draft amendments and explanatory notes are appended to this news release and are available on the Department of Finance website.
___________________________________ For further information, media may contact:

Chisholm Pothier
Press Secretary
Office of the Minister of Finance
613-996-7861
David Gamble
Media Relations
Department of Finance
613-996-8080

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Canada's New Government Introduces Measures to Make the Tax System More Efficient

News Release

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