Many fund managers—including mutual and segregated fund managers—need to consider certain GST/HST and QST* requirements as they help their investment plans meet important tax obligations by 30 June 2016.
To avoid processing delays and potential compliance penalties and interest, fund managers must make accurate calculations, properly file the correct GST/HST and QST returns, and remit the correct amount of taxes to the appropriate tax authorities, among other requirements. Managers also need to determine that they adjust their "blended rate" calculations to take into account the upcoming HST rate changes. Investment plans that qualify as selected listed financial institutions and their managers can jointly file certain elections to help reduce the administration of the GST/HST and QST compliance obligations. However, the related rules and tax calculations can be complex.
*GST/HST and QST = goods and services tax / harmonized sales tax and Quebec sales tax
Read a June 2016 report [PDF 49 KB] prepared by the KPMG member firm in Canada: Managers - Don't Miss GST/HST and QST Obligations for You and Your Investment Plans
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