EdgePoint Wealth Management will make tax reporting information available to investors who are classified as “U.S. persons” under U.S. tax law.
With most Canadian mutual funds subject to the potentially punitive U.S. Passive Foreign Investment Company rules, providing this type of reporting will allow impacted U.S. tax filers holding EdgePoint Portfolios, at their option, to elect to treat their EdgePoint investment as a Qualified Electing Fund (“QEF”) on their U.S. tax returns. The QEF election permits taxpayers to retain the benefits of the lower tax rate on long-term capital gains and avoid interest penalties.
For the 2013 tax year and going forward, EdgePoint will provide personalized PFIC Annual Information Statements upon request prior to the April 2014 U.S. tax reporting deadline for individuals. These statements will be available for all funds and series offered by EdgePoint.