Tax updates that may affect the mortgage industry

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In a July 6 note to its members, Mortgage Professionals Canada outlined recent developments involving the Goods and Services Tax (GST) as well as the Harmonized Sales Tax (HST) that might affect how the mortgage industry does its business.
 
CRA interpretation challenged
 
Mortgage Professionals Canada supplied a member with data that allowed the latter to challenge “CRA’s interpretation of her services as a mortgage broker” when 2015 drew to a close. The case went all the way to the Tax Court of Canada, which eventually ruled in favor of the broker thanks to the information provided.
 
Guidelines to be drafted
 
As a result of the case mentioned above, “Mortgage Professionals Canada sought a tax ruling to clarify the issue more specifically and definitively.”
 
In connection to the Tax Court’s ruling, the organization would also be composing new guidelines to help members adhere to the parameters of “arranging for financial services”, which would allow them to be exempt from charging both GST and HST.
 
Mortgage Professionals Canada advised members to be on the lookout for the release of the revised guide, as well as for more information on the upcoming updates by the CRA to GST/HST Interpretation Bulletin B-105.

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