Mutual fund dealers must start collecting GST/HST on their mutual fund trailing commissions starting July 1, 2026, according to the CRA’s new position. The CRA confirmed it was changing its longstanding position in an interpretation letter issued in December 2025, and will now consider mutual fund trailing commissions as consideration for taxable supplies. Due to the various technical and practical issues related to this upcoming change, mutual fund dealers may want to consider postponing significant capital property purchases until after July 1, 2026, if it makes business sense. Quebec has not yet announced whether it will adopt a similar interpretation for mutual fund trailing commissions for QST purposes.
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