2017-0722391E5 Investment management fees

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA. Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Principal Issues: Announcement of deferral of implementation date for position on application of advantage tax rules to investment management fees.

Position: Deferred to January 1, 2019

Reasons: To consider submissions from stakeholders

Author: Wurtele, Dave

Section: 207.01(1) advantage

XXXXXXXXXX                                                                                                         2017-072239           
                                                                                                                                 D. Wurtele 

September 15, 2017

Dear XXXXXXXXXX:

Re: Application of advantage tax rules to investment management fees

We are writing to provide you with an update on the technical position that the CRA announced at the 2016 Canadian Tax Foundation conference concerning the application of the advantage tax rules to investment management fees (2016-067080).

At the Conference we committed to working with the investment industry on this matter. We are currently considering a number of submissions from various stakeholders and will be deferring the proposed implementation date by one year to January 1, 2019.  

We wish to thank you for the assistance that you have provided us in our review. 

Yours truly,


Stéphane Charette, CPA, CMA, MBA
A/Director
Financial Industries and Trusts Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch

All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without the prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5.

© Her Majesty the Queen in Right of Canada, 2017

Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.

© Sa Majesté la Reine du Chef du Canada, 2017


Monthly Tax Update

For additional commentary on Technical Interpretations, court cases, government releases, and conference materials in a single practical document specifically geared toward owner-managed businesses, see Video Tax News Monthly Tax Update newsletter.

This effective summary and flagging tool is the most efficient way to ensure that you, your firm, and clients are fully supported and armed for whatever challenges are thrown your way.

Packages start at $399/year.

Learn More