The CRA re-confirmed its view from its December 2025 letter where it indicated that its position has changed with regards to the tax status on mutual fund trailing commissions in light of modifications to industry regulations and practices in recent years. As a result, mutual fund trailing commissions are considered payments that are now subject to GST/HST. Many managers and dealers should consider how and when to adjust the application of indirect taxes to their operations to reflect the CRA’s new position. The CRA intends to enforce this tax treatment on services related to mutual fund trailing commissions supplied on or after July 1, 2026, but encourages dealers to apply the new tax treatment as soon as possible. The CRA confirmed this new position in GST/HST Notice 344 “Application of the GST/HST to Mutual Fund Trailing Commissions” released on February 10, 2026.
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