Under the Income Tax Act, the accretion accruing to an investor on redemption of his shares or units in a Collective Investment Scheme (i.e. the difference between his redemption proceeds and the original purchase price of his units or shares) is treated as interest. Such accretion is subject to withholding tax at a standard rate of 25%, save for one exception, Long Term Savings Exemption. See section 8.11 of the prospectus for further details.