The Canada Revenue Agency (CRA) has suggested to the Investment Funds Institute of Canada (IFIC) that its systems will not be updated until 10th August 2015 to enable it to calculate the tax relief due from a mismatch of a mutual fund trust’s capital gains and the Ontario surtax payable on capital gains retained in a fund.
The relief was set out in a comfort letter in 2014 and enacted in the Ontario budget for 2015. A number of mutual fund trusts therefore filed their annual T3 return on the basis that the relief applied. However the CRA has issued notices of assessment denying the relief. Some have received collection notices and calls about tax payments due.
After consulting with IFIC the CRA confirmed that it would not make any more collection calls regarding this matter.
