ECPI examples

EXAMPLE 1:

A Fund has two members – Tom and Joan. Tom was in Pension Phase for 200 days of the tax year being processed.

Tom has a segregated asset worth $120,000.

Mclowd has calculated that the Fund earned $49,000 from jointly owned assets and $6,600 from Tom’s segregated asset.

The MWA report shows that Tom owns 58% of jointly owned assets.

Therefore, 58% of the income generated on jointly owned assets ($49,000 x 58% = $28,420), plus the income from the segregated asset ($6,600), attributes to Tom. Income attributable to Tom is $35,020.

As Tom was only in pension phase for 200 days, the tax free portion of the Fund’s income is:

$35,020 x (200/365) = $19,189.04

The ECPI value for this Fund is $19,189.04

EXAMPLE 2:

A Fund has three members – Jack, Sam and Jenny. Jenny is 68 and has been in pension phase for the full year. Both Jack and Sam are still in accumulation phase.

The Fund has no segregated assets.

The MWA report shows that Jenny owns a 42% share of the Fund assets.

The Fund has an income for the tax year of $80,100.

Jenny’s share is $80,100 x 42% = $33,642

$33,642 is therefore tax exempt.

The ECPI value for this Fund is $33,642.