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22 August 2016

Canada's proposals for consultation concerning GST/HST treatment of certain limited partnerships and investment plans discussed

In addition to legislative and regulatory proposals relating to the goods and services tax/harmonized sales tax (GST/HST), the Department of Finance on July 22, released a consultation paper listing proposals that relate to the GST/HST treatment of certain limited partnerships and investment plans. These proposals aim to "level the playing field" between investment entities structured as limited partnerships, and entities that are currently treated as investment plans for GST/HST purposes. The Department of Finance also proposes to (i) extend the imported taxable supply rules currently applicable to certain financial institutions to non-resident limited partnerships, and (ii) introduce a GST rebate for investment plans with non-resident investors. The Department of Finance has invited industry stakeholders, and other interested parties, to submit comments about these proposals by November 30.

A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.

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ATTACHMENT

Full text of Tax Alert 2016-1430

Document ID: 2016-1430

 

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