CFFiM’s response to the proposed changes to Canada’s Income Tax Act (“Act”) is found here. 

Key highlights as follows:

Expanding Qualified Investments for Registered Accounts

• Fully Paid Securities Lending Transactions: One of our prior key recommendations is reflected in the clarifying amendments which permit registered plans to engage in fully paid securities lending transactions and broadly align with the Canadian Investment Regulatory Organization (CIRO) rules governing fully paid securities lending (i.e. 4600 of the Investment Dealer and Partially Consolidated (IDPC) Rules). Clarifying amendments can be further extended to clearly include registered investment funds. Further recommendations to address practical challenges and alignment.
• Additional recommendations include the simplification of the regime for the holding of shares of small business in registered plans and the inclusion of all listed derivatives as qualified investments for registered accounts. 

Broadening Capital Gains Rollover on Investments 

• CFFiM supported the December 16, 2024 Fall Economic Statement proposal to broaden the scope of what qualifies as an eligible small business corporation share and to ease certain conditions for capital gains rollover under section 44.1 of the Act. Further recommendations for express referrals to common and preferred shares and that the rollover be extended to include a series of additional securities. 

Trust Reporting Exemptions

• Provided further support for an exemption from bare trust reporting for securities issued in nominee-name.

Retroactivity

• The retroactive application of tax laws should be avoided to preserve fairness and certainty. 

Red Tape Review 

• The government’s Red Tape Review efforts are supported. CFFiM encouraged the government to launch an independent review of the federal tax system, guided by the core principles of good tax policy: neutrality, efficiency, fairness, and simplicity.

For all inquiries please contact CFFiM Public Affairs.