Are Our Fees Still Taxable?

You may be aware of a recent court decision involving the Canadian Medical Protective Association (CMPA), on the tax status of some investment services. The court ruled that discretionary investment management services may be GST and QST exempt.

For the time being, the Canada Revenue Agency considers these services fully taxable. We are therefore legally bound to continue to charge GST and QST, considering the CMPA decision can still be appealed to the Supreme Court of Canada, and the law can be amended to clarify the taxation status of these services.

The implication of the CMPA ruling is that  you may be eligible for a rebate of the GST and QST paid in the past 2 years for some of our services. While each case is unique with corresponding impacts, it is best to have a discussion with your advisor on the situation as it relates to you.

We will continue to follow this development closely and will keep  you apprised of any changes.