Tag Archives: OVDP

How the logic of the quantifiers: "All", "Some", and "Not All" apply to Canadian mutual funds

What is a PFIC?

The acronym “PFIC” stands for “Passive Foreign Investment Corporation”. For your reading pleasure, I refer you to:

S. 1297 of the Internal Revenue Code which defines what a PFIC is; and

S. 1291 of the Internal Revenue Code which describes the “default taxation” of a PFIC.

Assuming that all Canadian mutual funds are PFICs, the results are horrific. I have written about this problem in two separate submissions to the U.S  Senate Finance Committee.
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