
GST/HST REPRIEVE FOR TRAILING COMMISSIONS
CRA DELAYS GST/HST ENFORCEMENT ON MUTUAL FUND TRAILING COMMISSIONS
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As we have blogged here, the Canada Revenue Agency (“CRA”) previously announced that mutual fund trailing commissions paid by mutual fund managers to licensed dealers — and by dealers to their agents — would become taxable effective July 1, 2026.
However, in May 2026, through an updated GST/HST Notice 344, the CRA delayed enforcement of its new administrative position to January 1, 2028. This is a welcome development for mutual fund managers, dealers, and advisors, but industry participants should use the transition period to prepare for the new GST/HST treatment.



