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August 24, 2021

Canada's Distributed Investment Plans required to request certain investor information by October 15

A Distributed Investment Plan (DIP), which as defined generally includes mutual fund trusts and certain partnerships, that is a selected listed financial institution (SLFI) is required to make a written request to obtain certain information from its investors by October 15. The information provided by the investors is used to calculate the DIP's provincial attribution percentage (PAP) and the DIP's Goods and Services Tax (GST)/Harmonized Sales Tax (HST)/Quebec Sales Tax (QST) net tax liability/refund. If a DIP does not request this information by October 15, certain investors may be deemed to be residents of the highest rate province (i.e., 15%) and, as a result, the DIP may have higher tax liabilities or lower refunds.

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


Full text of Tax Alert