Potential Tax Advantage For Certain U.S. Investors*
For U.S. non-corporate investors who hold units for one year and timely file a QEF form, gains realized on the sale of the Trusts' units are currently taxed at a long-term capital gains rate with a maximum of 15% (20% for married filers earning over $450,000 and single filers earning over $400,000 per year), versus a maximum of 28% applied against most precious metals ETFs and physical coins.
For more information, please see ''Tax Considerations-U.S. Federal Income Tax Considerations" in the Prospectus and always consult your tax accountant regarding your particular situation.
US Tax Information
The information provided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering or tax, legal, accounting or professional advice. Readers should consult with their own accountants and/or lawyers for advice on the specific circumstances before taking any action.
A U.S. Holder (as defined in the prospectus) will be required to file an annual report with the IRS reporting his, her or its investment in the Trust. Please see the IRS's 'Form 8621, Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund' and the accompanying instructions, including who must file and when and where to file.
U.S. Persons are encouraged to make a qualified electing fund (QEF) election with respect to the Units of the Trust on the IRS Form 8621, for reasons discussed in detail in the Prospectus for each of the Trusts.
For the IRS Form 8621, filers require the following information:
- The Trust does not have an "Employer Identification Number (EIN)". In cases where no EIN is entered, a Reference ID number is required to be entered on the Form. A"Reference ID Number" is a number established by or on behalf of the U.S. person. Details on how a filer can create this number are on page 3 of the IRS Form 8621 instructions.
- The address of the Trust is:
Royal Bank Plaza, South Tower
200 Bay Street
Suite 2700, PO Box 27
Toronto, Ontario M5J 2J1
- The tax year of each of the Trust is the calendar year, January 1 to December 31.
- Part I of the IRS Form 8621 is "reserved for future use". See the Form instructions for details.
- U.S. Holders electing to treat the Trust as a QEF rather than a Passive Foreign Investment Company (PFIC), on Part II of the IRS Form 8621, will require certain information from the Trust to complete Part III of the Form. This information is included in the PFIC Form for the Trust. This form can be found on the right hand side of the Tax Information webpages for the applicable Trust:
Sprott Physical Gold Trust
Sprott Physical Silver Trust
Sprott Physical Platinum & Palladium Trust
- Per page 3 of the IRS Form 8621 instructions, a shareholder of a PFIC must attach certain information to Form 8621. This information includes:
- The number of shares in each class of stock owned by the shareholder at the beginning of its tax year;
- Any changes in the number of shares in each class of stock during its tax year and the dates of such changes; and
- The number of shares in each class of stock at the end of its tax year.
* The information provided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering or tax, legal, accounting or professional advice. Readers should consult with their own accountants and/or lawyers for advice on the specific circumstances before taking any action.