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The Voice of Canada’s Investment Funds Industry

GST/HST

IFIC is encouraging a government review of the GST and HST treatment of financial services.

Mutual fund holders pay four to five times more GST or HST per $100 of value-added than owners of GICs, equities, bonds and other non-fund financial vehicles.

Canada is an outlier compared to most of the more than 140 value-added tax (VAT) jurisdictions, effectively taxing rather than exempting mutual funds. Canada is also the only one of these countries applying federal and multiple provincial rates of tax, adding needless and costly complexity.

While sales tax harmonization is economically desirable in principle, sales tax legislation should be amended to levy the GST and HST on financial products and services in a way that is fairer to investors, economically neutral and administratively efficient.



Documents

2010
Submission to Federal Government (Finance Canada - Chief L. Kottachchi) - Follow-up to August 10, 2010 Joint Meeting (August 26, 2010)

Submission to Federal Government (Finance Canada - Chief L. Kottachchi) - Comments on Draft Regulations and Second HST Backgrounder (July 30, 2010)

Submission to Federal Government (Senate Standing Committee on National Finance) - Clause 55 of Bill C-9 on GST Application (July 9, 2010)

Submission to Federal Government (Ministry of Finance) - Comments on “Financial Institution Rules for the Harmonized Sales Tax (HST)” Backgrounder (June 8, 2010)

Backgrounder - Proposed Changes to the Application of the Harmonized Sales Tax to Financial Institutions

Submission to Federal Government (Chair, HOC Finance Committee ) - Bill C-9 (May 12, 2010)

Submission to Federal Government (Finance) - Response to Bill C-9 on GST Application (May 4, 2010)

Submission to Federal Government (CRA) - Response to Notice 250 on GST Application (May 4, 2010)

Submission to Federal Government (ADM Finance) - Objection to GST-HST Policy Change Evidenced by CRA Notice 250 (February 19, 2010)

2009
Submission to Provincial Government (Ontario Standing Committee on Finance and Economic Affairs) - The Impact of HST on Canadian Investors (December 3, 2009)