- 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.
Source Tax News
Latest Posts in "Canada"
- Alaska and Montana Consider Statewide Sales Tax Amid Fiscal Pressures and Revenue Diversification Needs
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- British Columbia 2026 Budget Expands PST to Professional Services, Removes Select Exemptions
- Canadian Tax Court Clarifies GST/HST Rebate Eligibility for New Housing Purchases and Resale
