It’s important for distributed investment plans to make these annual requests under the GST/HST and QST information sharing rules and collect specific investor information in order to properly calculate their tax costs and determine whether they may benefit from certain elections. Plans that fail to make these requests and collect the required details from investors face higher GST/HST and QST costs which may affect the overall annual performance of the plans.
Investors and securities dealers have to meet their own obligations under these information sharing rules. In particular, investors that received a request from a distributed investment plan are required to provide specific details in writing to the plan, which can vary based on the type of investor. Additionally, certain types of investors must provide details to their distributed investment plans even without such a request. Note that investors and securities dealers face penalties if they do not meet these obligations under the GST/HST and QST regimes.
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