- Canada Revenue Agency (CRA) will tax mutual fund trailing commissions with GST/HST effective 1 July 2026, reversing its longstanding exemption for these payments.
- Dealers and agents receiving trailing commissions will need to register for GST/HST if their taxable supplies exceed CA$30,000, requiring updates to accounting systems, invoicing, and compliance processes.
- The change clarifies that investment account support and ongoing services provided in exchange for trailing commissions are taxable asset management services, while upfront commissions for initial fund issuance remain exempt.
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