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An overview by Borden Ladner Gervais LLP, Taxand Canada
The Canada Revenue Agency has recently confirmed that it will delay the implementation of its revised GST/HST treatment of mutual fund trailing commissions until 1 January 2028, pushing back the previously planned start date of 1 July 2026. The change marks a significant shift from the Canada Revenue Agency’s long-standing position by treating trailing commissions as taxable supplies rather than exempt financial services. The deferral follows consultation with industry and is intended to give businesses more time to prepare for the operational and compliance changes required.
While the extension will be welcomed by industry, it reflects longstanding concerns that the original six-month implementation window was insufficient. However, the pattern of announcing major tax changes and subsequently delaying them has caused some frustration, underlining the need for clearer timelines and greater certainty in policy implementation.
Owen Clarke from our Canadian member firm Borden Ladner Gervais LLP provides further details on what the deferral means for the industry, which you can read here.
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