OTTAWA: The 2018 Federal Budget contains a number of excise and sales tax (GST/HST) proposals and amendments that may be relevant to registrants and practitioners. Each of the proposals below deals with issues that may require significant planning or structuring considerations. Please do not hesitate to contact one of our team members for further discussion or analysis with respect to the proposals in Budget 2018 the supply by the general partner to the investment limited partnership that includes the service is deemed to have been made otherwise than in the course of the investment limited partnership’s activities. A proposed definition of “Management or administrative service” is broadly defined under subsection 123(1) of the ETA to include an asset management service, which is further defined to encompass most activities performed by a GP, such as managing, researching or analyzing the assets or liabilities of the ILP, or determining which assets or liabilities to acquire or dispose of. As a result, GPs will have to charge and collect GST/HST on the fair market value of any management or administrative services performed for the ILP and will have to register for GST/HST purposes.
These consultations are expected to be the first step towards the ultimate reduction of the scope of these rules. Please contact one of our team if you wish to add your views to the consultation process.
