The Pension Investment Association of Canada(PIAC)is calling for amendments to Bill C-10 which is now before the Senate Banking, Trade and Commerce Committee.

“PIAC strongly recommends that Bill C-10 be amended so that the Non-Resident Trust(NRT)regime would not apply to registered pension funds,” says a statement from the organization. “There is no sound policy rationale for applying the NRT regime to registered pension funds, and it will result in significant and unnecessary costs for Canadian pension funds.”

Bill C-10 is intended to address concerns relating to tax avoidance by Canadians involving the use of foreign investment trusts by taxing these vehicles and Canadians who invest in them.

PIAC says many pension plans invest in offshore trusts to help improve returns and reduce risk. However, it adds that Canadian pension funds have no reason to avoid Canadian income tax by using offshore trust vehicles because pension plans are already exempt from paying income tax in Canada.

To view PIAC’s submission to the federal government on the organization’s website, click here.

To comment on this story, email craig.sebastiano@rci.rogers.com.

Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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