These rules also impose responsibilities on both investors and securities dealers.
Canada’s government announced that distributed investment plans, such as mutual fund trusts and investment limited partnerships are required to reach out to their investors by 15 October 2025 to gather specific information related to goods and services tax/harmonised sales tax (GST/HST) and Quebec sales tax (QST) under tax information-sharing regulations.
These rules also impose responsibilities on both investors and securities dealers.
Investors who receive such requests must respond in writing, providing details that depend on their investor category. Securities dealers face similar compliance requirements under these regulations.
Distributed investment plans classified as SLFIs (Selected Listed Financial Institutions) are required to gather specific information annually from certain investors. This obligation applies to various types of investment vehicles, such as mutual fund trusts and corporations, investment corporations, mortgage investment corporations, unit trusts, certain pension entities, segregated funds of insurers, and investment limited partnerships.
To comply, these plans must send written requests to investors by 15 October each year and ensure the necessary details are collected by 31 December.
This process is essential for calculating the plans’ provincial attribution percentages, which play a critical role in managing indirect tax costs. These percentages are used to determine tax liabilities throughout the year and to make adjustments in GST/HST and QST returns. Regularly collecting this information ensures accurate tax reporting and compliance.
