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August 16, 2017
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IMPORTANT NOTICE TO U.S. SHAREHOLDERS RELATED TO THEIR INVESTMENT IN FRANCO-NEVADA CORPORATION

This information is provided for shareholders who are U.S. taxpayers. It may not be relevant for other persons.

THE U.S. TAX RULES REGARDING PFICS ARE VERY COMPLEX AND INVESTORS ARE STRONGLY URGED TO CONSULT THEIR OWN TAX ADVISORS REGARDING THE U.S. TAX CONSEQUENCES OF THE PFIC RULES WITH REGARD TO THEIR INVESTMENT IN FRANCO-NEVADA CORPORATION.

PFIC Status for Tax Year 2016

Franco-Nevada Corporation (“FNC”) believes, on a more-likely-than-not basis, that it was not a passive foreign investment company (“PFIC”) within the meaning of Section 1297 of the Internal Revenue Code of 1986, as amended, for its tax year ended December 31, 2016 (“2016 Tax Year”). However, the determination as to whether any corporation was, or will be, a PFIC for a particular tax year depends, in part, on the application of complex U.S. federal income tax rules, which are subject to differing interpretations and uncertainty. In addition, there is limited authority on the application of the relevant PFIC rules to entities such as FNC and its subsidiaries. Accordingly, there can be no assurance that the U.S. Internal Revenue Service will not challenge FNC’s views concerning its PFIC status. In addition, whether any corporation will be a PFIC for any tax year depends on its assets and income over the course of such tax year, and, as a result, FNC’s PFIC status for its current tax year and any future tax year cannot be predicted with certainty.

INVESTORS SHOULD CONSULT THEIR OWN TAX ADVISORS REGARDING THE PFIC STATUS OF FNC AND ITS SUBSIDIARIES.

The attached PFIC Annual Information Statements are being provided pursuant to the requirements of Treasury Regulation Section 1.1295-1(g)(1). These PFIC Annual Information Statements contain information to enable you, should you so decide after consultation with your tax advisor, to take the position that one or more of FNC and its subsidiaries is a PFIC for the 2016 Tax Year and/or choose to elect to treat one or more of FNC and its subsidiaries as a qualified electing fund.

The foregoing statements are qualified in their entirety by the discussion set forth under the heading “United States Federal Income Tax Considerations” in the Annual Report of FNC on Form 40-F filed with the United States Securities and Exchange Commission on March 22, 2017.