Contributing Lawyers

Canada

Cyndee Todgham Cherniak

United States

Susan Kohn Ross

Australia

Andrew Hudson



The GST Changes Re "Financial Services" Are in Bill C-9

This is an unusual post for us - Bill C-9, "The Jobs and Economic Growth Act", which puts into legislation the Notice of Ways and Means Motion tabled with the 2010 Budget DOES INCLUDE THE CONTROVERSIAL CHANGES TO THE DEFINITION OF "FINANCIAL SERVICES" IN THE EXCISE TAX ACT. Bill C-9 was tabled in Canada's House of Commons on March 29, 2010.

The reason for this post is that during my first review of the online First Reading version of Bill C-9, I could not find the proposed changes in the Excise Tax Act section. Due to an issue with the electronic version, which breaks up the large bill, you can find the proposed changes under the "Customs Act". Please go to the following link - http://www2.parl.gc.ca/HousePublications/Publication.aspx?Language=E&Parl=40&Ses=3&Mode=1&Pub=Bill&Doc=C-9_1&File=77#16

It may be a coincidence that the technical problem is in the exact spot where there is front page controversy. However, since the problem has been identified, the problems with the changes to the definition of "financial services" remain.

For more information about the problems with the proposed changes to the definition of "financial services", please go to the following articles:

Ottawa changes GST rules, setting up finance battle - http://www.ctv.ca/generic/generated/static/business/article1512595.html

http://www.cbc.ca/money/story/2010/03/26/gst-mortgage-brokers.html

Mortgage brokers to fight GST - http://www.cbc.ca/money/story/2010/03/26/gst-mortgage-brokers.html

Flaherty denies new taxes on financial services - http://www.torontosun.com/news/canada/2010/03/26/13373981.html

Saving for Retirement to Cost Canadians More Due to New GST/HST Rules - http://www.marketwire.com/press-release/Saving-for-Retirement-to-Cost-Canadians-More-Due-to-New-GST-HST-Rules-1139130.htm

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