On October 30, 2003, the Canadian Department of Finance released a fourth version of draft legislation regarding foreign investment entities. The proposed FIE legislation will significantly affect Canadian taxpayers that invest in foreign-based investment funds and other non-controlled foreign entities as well as non-residents that use a Canadian entity to make such investments. In addition, non-residents who manage foreign investment funds should also consider the implications of the new rules. The FIE rules are effective for taxation years that begin after 2002.

type Canada's Proposed Foreign Investment Entity Rules