Canada Revenue Quebec Clarifies GST/HST, QST Treatment of Mutual Fund Trailing Commission Payments

The Canadian Revenue Quebec April 8 issued a press release to clarify the GST/HST and QST treatment of mutual fund trailing commissions paid for mutual fund dealer services. The announcement provides that: 1) mutual fund dealer services provided in exchange for trailing commissions are considered taxable supplies subject to both GST/HST and QST; 2) the Canada Revenue Agency (CRA) will impose GST/HST and QST on dealer services provided on or after July 1; and 3) mutual fund dealers may be required to register for GST/HST and QST in order to bill, collect, and pay taxes on services provided for trailing ...