On December 14, 2009, the Federal Department of Finance announced its intention to amend the Excise Tax Act, yet again retroactively (to January 1, 1991). This article focuses on one of many services affected by the announcement: fully discretionary investment management.
Sales Tax, VAT and Trade Services leader Mike Firth summarizes the history and impact of the proposed change and then uses the service as a prism to view the poor current state of GST/HST statute maintenance and administration. The deterioration highlighted by this example is part of a broader pattern of decline in GST/HST administration. This factor will become increasingly damaging as we enter a year when the tax will be adopted by both Ontario and BC, in their efforts to attract inward investment.