In order to be treated as a "flow-through entity" for tax purposes, a mutual fund must do which of the following?
I. It must hold almost all of its assets in stocks, bonds, and other securities.
II. It must follow investing rules set by the Canada Revenue Agency.
III. It must pass through all realized investment income to its shareholders.

Question

Quizplus · Accepted Answer

To be treated as a "flow-through entity" for tax purposes, a mutual fund must hold almost all of its assets in stocks, bonds, and other securities, follow investing rules set by the Canada Revenue Agency, and pass through all realized investment income to its shareholders.

In Order to Be Treated as a "Flow-Through Entity" for Tax