CRA reiterates the taxability of mutual fund trailer commissions and states that other trailer commissions will be reviewed

CRA has issued a Notice confirming that “[a]s a result of … industry developments” it “will enforce the application of the GST/HST to supplies made by dealers on or after July 1, 2026, in exchange for trailing commissions.” Its comments in the Notice are similar to those in 22 December 2025 GST/HST Interpretation 246664. It further states:

The tax treatment discussed in this notice applies to the payment of mutual fund trailing commissions only. … The tax status of services supplied in exchange for other types of trailing commissions will be considered on a case-by-case basis and is not the subject of this notice.

Neal Armstrong. Summary of GST/HST Notice 344, Application of the GST/HST to Mutual Fund Trailing Commissions, 10 February 2026 under s. 123(1) – financial service – (l).