• Federal Government Clarifies GST/HST Treatment of Investment Management Services
  • December 28, 2009 | Author: Beverly J. Gilbert
  • Law Firms: Borden Ladner Gervais LLP - Calgary Office; Borden Ladner Gervais LLP - Toronto Office
  • On December 14, 2009, the federal government released a backgrounder announcing its intention to propose amendments to the Excise Tax Act (the “ETA”) that would explicitly exclude investment management services from the definition of “financial service” for GST/HST purposes. If passed, these amendments would have the effect of subjecting discretionary management fees to the full tax burden that will be imposed by the HST when it comes into effect on July 1, 2010 in the absence of any specific exemptions and/or rebates.