Note that changes were made to this notice on October 2011, due to draft legislative amendments released in January 28, 2011. A minor change was also made to this notice on February 9, 2012.
The Canada Revenue Agency has issued this notice that outlines the type of information that investment plans (other than exchange-traded funds) that are selected listed financial institutions (SLFIs), (referred to as SLFI distributed investment plans in the notice) may require from specific unit holders in SLFI distributed investment plans and from persons that sell or distribute units in these SLFI distributed investment plans.
For purposes of this notice, an “SLFI distributed investment plan” is defined as an investment plan that is an SLFI that is also a mutual fund trust, a mutual fund corporation, a unit trust, a mortgage investment corporation, an investment corporation, a non-resident-owned investment corporation or a segregated fund of an insurer, that is not an exchange traded fund. The term "SLFI distributed investment plan" is not defined in the proposed SLFI Regulations.
An SLFI distributed investment plan uses the information to calculate its provincial attribution percentage for a participating province, as required by the Special Attribution Method (SAM) formula to compute its liability for the provincial component of the HST, as required under the proposed SLFI Regulations and the Excise Tax Act. The type of information that a unit holder is required to provide will depend on the category of investor, and is discussed in detail in the notice, along with illustrative examples.
CRA Notice No. 259