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

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