- CRA has reversed its longstanding position on the GST/HST exemption for mutual fund trailing commissions.
- Effective July 1, 2026, trailing commissions paid to dealers will generally be subject to GST/HST.
- CRA now views these commissions as payment for ongoing taxable services, not exempt financial services related to issuing mutual fund units.
- This change departs from previous interpretations that considered trailing commissions as exempt.
Source: taxinterpretations.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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