The controversies which have surrounded Canada’s attempts since 1999, to design a tax regime which will apply to foreign portfolio investments made by Canadian taxpayers and the parallel increase in attention by Canada to foreign constituted trusts, when both business and tax considerations are factored in, has led foreign investment managers increasingly to structure investment funds in the form of publicly traded or private partnerships. These investment funds are generally formed outside of Canada and have no investments in Canadian situated assets. Such vehicles are attractive to Canadian investors seeking to diversify their portfolio holdings.

type Tax Law Bulletin – July 2009 – Foreign Constituted Partnerships with Canadian Partners May Be Required to Report to Canada