We understand the specialized markets in which you operate and provide tailored solutions to meet your unique business needs.
Our comprehensive suite of business services combines industry expertise, market knowledge and professional insights.
MNP is a leading national accounting, tax and business consulting firm in Canada.
Suite 2000, 330 5th Ave. S.W.
MNP careers are Different by Design. As an entrepreneurial firm, we truly believe there are no limits to where your career can go.
Do you pay significant investment fees?
Would you like an opportunity to recover the GST paid on those fees?
A recent decision rendered by the Federal Court of Appeal (the “Court”) may impact the GST required to be collected, and that has been paid, on investment management fees.
In The Queen v. the Canadian Medical Protective Association (CMPA), the Court ruled that discretionary investment management services provided in respect of the management of certain segregated accounts and pooled funds are “exempt financial services” and should not be subject to GST.
The CMPA decision may be subject to an application for appeal by the government to the Supreme Court of Canada. Whether or not any such appeal is ultimately successful, the government may simply decide to amend the GST legislation in order to effectively overrule, or render inapplicable, the Court’s decision. The outcome may remain unknown for quite some time.
In the meantime, based on the CMPA decision, there is an opportunity to apply for a rebate of the GST paid on these investment management fees. GST rebate applications are subject to a two year limitation from the date of payment. If you use the services of a discretionary investment manager and pay significant fees to have your portfolio managed, there may be an opportunity to recover the GST paid on the investment management fees.
Please be advised that filing a rebate application may not result in a rebate from the tax authorities. The final outcome of a rebate application will depend on its particular facts, the final outcome of the CMPA case and any legislative action taken by the Government. We look forward to hearing from you to discuss whether this would be applicable to your situation.
To find out whether this would be applicable to you, please contact one of our indirect tax specialists.
Related Topics:Indirect Tax; GST
Find an office near me