I have a fairly simple setup where I want to alter the color of the svg image by using an svg filter:
So, this is going to seem silly - but it's the initial linebreak in your filter that's throwing it off. Correcting it to:
<feColorMatrix type="matrix"
values="0 0 0 0 0
0 0 0 0 0.68
0 0 0 0 0.94
0 0 0 1 0
"
/>
... works perfectly. (Incidentally, at one point, IE couldn't handle linebreaks in the values array in any position - you had to put them all on one line.)