Tax Memo: GST and the Financial Services Sector – Updated Draft Legislation Released

On September 23, 2009, the Honourable Jim Flaherty, Minister of Finance, released updated draft legislation on the proposed changes to the application of the Goods and Services Tax (GST) to the financial services sector. The draft legislation updates the proposals that were released on January 26, 2007.

Despite industry concerns and appeals to revise the proposals that were released on January 26, 2007, the latest release is substantially similar in many ways. However, the Department of Finance appears to believe that the new release does address the major concerns raised by the financial services sector, especially in connection with imported taxable supplies. Key features of the latest draft legislation and differences from the previous draft legislation are outlined in the Tax Memo below.

Read the Tax Memo below to understand the new proposal’s details and how they will affect employers participating in a pension plan.

Tax Memo - GST and the Financial Services Sector – Updated Draft Legislation Released (90 KB) Download the full PDF.