CRA warns that mutual fund trailer commissions may be subject to GST

In a 2012 Interpretation which was recently released, CRA went out of its way to warn that trailer commissions (or "renewal commissions" as it termed them) paid by a mutual fund manager to licensed representatives who sold the mutual fund units might not be exempt from GST.  It previously warned in 14 July 2011 Headquarters Letter 132388 that trailer commissions paid to mortgage brokers might not be exempt.

Neal Armstrong.  Summary of 29 June 2012 Interpretation Case No. 104941 under ETA – s. 123(1) – financial service.