Court case means big GST refund for investors
By Gordon Powers, Sympatico / MSN Finance
Canadian investors who been paying for discretionary investment management, where the manager makes all the buying and selling decisions on their behalf, may be entitled to a refund on Goods and Services Tax (GST) that has been incorrectly charged to their accounts.
In a recent ruling, the recent Federal Court of Appeal concluded that fees paid by the Canadian Medical Protective Association to its investment managers were in fact ‘exempt’ financial services. As a result, the CMPA is now entitled to recover the GST it paid on such management fees.
And so are you.
Of course, the government may simply decide to amend the GST legislation in order to effectively overrule or squash the Court’s decision, says Heather Weber, a Partner with the accounting firm Meyers Norris Penny in Kelowna.
In the meantime, if you’ve been paying for discretionary fund management services and have been unnecessarily overcharged, you should apply for a rebate of the GST paid on such fees, she advises. Unfortunately, although the GST has been around for 18 years now, rebate applications are subject to a two year limit from the date of payment.
And yes, despite this ruling, investment managers are likely to continue to collect GST on behalf of the CRA until it tells them not to.
Nothing like changing the rules after the game has started ... another cause for political protester Bill Tieleman?
Posted by: philippe | Jul 27, 2021 7:12:15 PM
I am reliefed to know that there are public servants thinking of what shoud be GST-tax exempt and what should not. It makes me realize that the the bank does not charge tax on the 3% it takes in my mutual fund. I think part of the tips we give to waitress and strippers is also met to be tax on these lovely services. In Quebec, we have your own copy of the GST, it is the PST, and it allows us to double the employement in government, for the same purpose.
Posted by: Annoyed with out dated tipping custom | Jul 28, 2021 11:33:51 AM
Re the last blog comment. Stop tipping period it's simply a voluntary employment tax of sorts perpetuated by guilt in order to subsidize employers wage costs and most of the time it's given on a suggested or at least expected 15 to 20% basis for Bad Service or at least average service !
Do you tip your plummber, doctor, electrcian, painter, bank tellers, the person who cashes you out at the grocery store, or packs your groceries, Not Likely so why tip any of these other folks for simply doing what their employer expects them to do for the pay they get from the employer.
Lets all stop subsidizing employers wage expense through our guild of being told we are too cheap if we don't tip ! ! If tipping all stopped maybe service would actually improve and workers would take some pride in doing a good job. It's not a custom in Australia and they Don't Tip over there and surprise service is great there. Let the employer give them a bonus or raise for exceptional service, not each customer each time you visit a restrurant, hair salon etc it's BS.
Posted by: Dave Harris | Aug 4, 2021 1:38:00 PM
It would be nice to stop tipping but unfortunetly employers in most cases where tipping happens only pay minimum wage for that industry. Unless you are willing to pay at least 30-35% more for food and service don't look for this to change anytime soon. I also have not even scratched the surface of what workers have to put up with in terms of rude and ignorant customers and bad bosses. I'm sure if "Annoyed with outdated tipping custom" had to put up with some of the garbage dished out to these people on a daily basis he would want 3 times their wages or more.