List of Products and Services of Trust Companies

From: Canada Revenue Agency

GST/HST Technical Information Bulletin B-057
August 2, 1991

This Technical Information Bulletin does not replace the law found in the Excise Tax Act and its regulations. It is provided for your reference. As it may not completely address your particular operation, you may wish to refer to the Act or appropriate Regulation or contact any Revenue Canada Excise/GST office for additional information.

INTRODUCTION

This document provides a listing of trust company financial products and services and their corresponding exempt or taxable status under the Goods and Services Tax (GST). For purposes of this document, "taxable" means taxable at 7%.

Classifications are based on the wording of Part IX of the Excise Tax Act, as amended by S.C. 1990, c.45 (Bill C-62), Revenue Canada's understanding of the description of the products and services, and the assumption that a separate fee is charged for each listed product or service.

Should legislation or Revenue Canada's interpretation of the description of the products and services be amended, some classifications may change. As well, the classifications may not apply to supplies of financial products or services made to a non-resident.

This list is divided according to the type of service supplied. A number has been provided for each item solely for ease of reference.

BANKING/DEPOSIT SERVICES

Accounts (Deposit-Taking) STATUS
Description: Fees that relate to the set-up, maintenance, administration of deposit-taking accounts.
A-1 Daily Interest Savings (Canadian & U.S.) Exempt
A-2 T-Bill Savings Exempt
A-3 Daily Interest Chequing (Canadian & U.S.) Exempt
A-4 Business Chequing Exempt
A-5 Provincial Home Ownership Savings Plan Account Exempt
A-6 Fixed Term Annuities Exempt
A-7 Guaranteed Investment Certificates Exempt
A-8 Term Deposits Exempt
A-9 Retirement Savings Plan Exempt
A-10 Retirement Investment Fund Exempt
A-11 Registered Education Savings Plan Exempt
Services
Description: Fees for services provided to deposit-taking accounts.
A-12 Acceptance of Currency Exempt
A-13 NSF Cheque Exempt
A-14 Travellers Cheques Exempt
A-15 Money Orders - Sale or Encashment Exempt
A-16 Confirmation of Balance of Account Exempt
A-17 Cashing a U.S. Dollar Item Exempt
A-18 Wiring of Funds Exempt
A-19 Stop Payment at Request of Account Holder Exempt
A-20 Postdated Item Held for Deposit Exempt
A-21 Voucher Search Exempt
A-22 Duplicate/Interim Statement Exempt
A-23 Deposit Exempt
A-24 Term Deposit Fees (Transferable GICs) Exempt
A-25 Overdraft Exempt

Description: Protection on customer's chequing account.

A-26 Statement with Returned Cheques Exempt
A-27 Certified Cheques - Fee to Certify Funds Exempt
A-28 Cheque Encashment Exempt
A-29 Dormant Accounts Exempt
A-30 Issuing Foreign Currency Cheque on Canadian Dollar Account Exempt
A-31 Collections: Domestic/Foreign Exempt

Description: Settlement/clearance of cheques

A-32 Official/Corporate Cheque (like a bank draft) Exempt
A-33 Account Closed Within 90 Days Exempt
A-34 Incorrect or No Micro-Encoding Exempt
A-35 Interim Statement Exempt
A-36 Transfer of Funds Between Accounts or Transfer of Account to another Financial Institution Exempt Exempt
A-37 Canada Savings Bond (CSB) Issuing & Redemption Exempt (Commissions) Exempt
A-38 Acceptance of Cheque on Savings Account Exempt
A-39 Cheque Return Exempt
A-40 Utility Bill Payment Exempt
A-41 Canada Savings Bond (CSB) Printing Taxable

Description: Charge made to other financial institutions for printing information on CSBs sold by other institutions. CSB is returned to the institution that sold the bond to the individual.

A-42 Client Administration - Financial Planning Taxable Taxable

Description: Fee for client record-keeping/ specialized administration/no balances.

A-43 Withdrawal Exempt
A-44 Late Payment Fee re: Safety Deposit Boxes Exempt Exempt

Description: Late payment fee assessed when rental fee is not paid by due date.

A-45 Safety Deposit Boxes Taxable

(Key and lock replacement and drilling fee) Taxable

A-46 Safety Deposit Boxes (Contents listing) Taxable
A-47 Safety Deposit Boxes (Rental of box) Taxable
A-48 Personalized Cheques (Sale) Taxable
A-49 Medical Administration (Billings Fee) Taxable

Description: Fee in respect of provincial medicare billing for medical offices.

A-50 Photocopying Taxable

Description: Copies of documents provided. Copies related to a financial service are exempt, e.g. mortgage contract.

A-51 Letter of Introduction Taxable
A-52 Safekeeping Taxable

Description: Custodianship of securities at retail branches.

CARD SERVICES

B-1 Interchange Fees to Merchants Exempt

Description: Fee earned from retailers for use of financial institution card.

B-2 Cardholder Fees to Individuals Exempt

Description: Flat or activity fee to individuals.

B-3 Financial Service Fees on Cardholder Account Exempt

Description: Interest charges.

B-4 Administration Service to Cardholder Exempt

Description: Fee for duplicate statement requests, ticket requests, written communication of account status, statement date changes, credit limit increases.

B-5 Private Label Card Fees Taxable

Description: Fee for third party administration (mail out statements, collection activities).

B-6 Credit Card Registration Fee Taxable

Description: Charge for registering all credit card account numbers with central registry of Trust Co.

COMMERCIAL LENDING & PROPERTY MANAGEMENT

Commercial Lending
Description: Contract whereby interest charged for the use of lender's fund.
C-1 Lending (loan commitment fees) Exempt
C-2 Lending (income participation) Exempt
C-3 Lending (loan interest spread) Exempt
C-4 Lending (shares obtained in lieu of interest) Exempt
C-5 Lending (loan set-up/application and adjudication fees) Exempt
C-6 Lending Administration Exempt

Description: Fees for ongoing administration, terms changes, overdraft protection, payment changes, security change or portability. Prepayment, renewal statements and NSF fees.

C-7 Debt Advisory Fee (Fees for Advice) Taxable

Description: Review of financing needs.

C-8 Administration Services (Advice to Clients) Taxable

Description: Fee for administration and advisory services. No financial risk.

Property Management
C-9 Rental Fees - From Commercial Property Taxable
C-10 Fees - Development/Consulting/Negotiation Taxable
C-11 Fees - Property Administration/Management Taxable
C-12 Fees - Property Acquisition/Disposition Taxable
C-13 Tax Fee Taxable

Description: Preparation of income tax statements.

COLLECTIONS SERVICES

D-1 Outside Collections Fees Taxable

Description: Collections for outside third parties. Ownership of debt remains with client.

CORPORATE SERVICES

E-1 External Fees - Microfiche Services Taxable

Description: Unrelated to providing of financial services.

E-2 External Fees - Courier Service Taxable

Description: Unrelated to providing of financial services.

E-3 External Fees - Reprographic Service (photocopying) Taxable

Description: Unrelated to providing of financial services.

E-4 External Fees - Warehouse (lease part of premises) Taxable

Description: Unrelated to providing of financial services.

E-5 External Fees - Mail Service Taxable

Description: Unrelated to providing of financial services.

E-6 External Fees - Laser Printing Taxable

Description: Unrelated to providing of financial services.

E-7 External Fees - Rent (Commercial) Taxable

Description: Unrelated to providing of financial services.

CORPORATE TRUST

F-1 Initial Fees for Corporate Trust Agreements Taxable

Description: Fee for entering into deed or trust agreement, entering into supplemental deed, delivery of bonds, exchange of interim certificates for definitives.

F-2 Bond Issuing Fees Taxable

Description: Fee charged to corporate client to prepare and sort bonds for delivery to purchaser.

F-3 Maintenance & Posting Bond Taxable

Description: Record changes of ownership of security in bond registry.

F-4 Bond Redemption Fees Taxable

Description: Administration of total or partial redemptions, sinking fund operations, registry maintenance and certificate destruction fees.

F-5 Stock Redemption Fees Taxable

Description: Administration of total or partial redemptions, sinking fund operations, related destruction fees.

F-6 Annual Bond Trusteeship Fee Taxable

Description: Annual fee for maintenance services.

F-7 Bond Trusteeship New Business Taxable

Description: Fee for maintenance activities after bond issue.

F-8 Bonds and Coupons Destruction Taxable

Description: Administrative fee for destruction of invalid or redeemed certificates/ coupons.

F-9 Bondholder List Maintenance Taxable

Description: Fees from maintenance, posting, change of address, per annum account fees, lists, mailings, statistics, proxies, interest, tax supplementaries.

F-10 Strip Coupons/Sentinels Taxable

Description: Fees for administrative services related to the forwarding, cancelling, destruction and issuing of certificates and safe custody of securities.

F-11 Certificate Forwarding, Cancelling, Destruction and Issuing Taxable

Description: Fees for certificate issuance, cancellation, forwarding, destruction based upon the receipt of information from the principal or from advisors to the principal (eg. brokers, lawyers).

F-12 Certificate Reject Fees Taxable

Description: Fee for additional administrative work involved in problem transfers of stock certificates.

F-13 Certificate Rush Fee Taxable

Description: Fee for administration of transfer of certificates on priority basis.

F-14 Dividend Reinvestment Fee Taxable

Description: Fees for administering dividend reinvestment, stock dividend and share purchase plans (recording activities).

F-15 Tax Consulting Fees Taxable

Description: Provision of tax advice.

F-16 Tax Information Slips Fee Taxable

Description: Preparation of slips re: interest/ dividends/capital gains.

F-17 Tax Form Fees Taxable

Description: Maintenance of tax records re: interest disbursements and preparation of returns.

F-18 Shareholder List and Maintenance Taxable

Description: Fees from maintenance, posting, change of address, per annum account fees, lists, mailings, statistics, proxies, dividends, tax supplementaries.

F-19 Shareholder Communication Taxable

Description: Fees for special mailings/ communications with stockholders at request of corporation.

F-20 Shareholder Meeting Service Taxable

Description: Corporation pays fees to trust company to schedule and arrange for shareholder meeting.

F-21 Shareholder Searches Taxable

Description: Corporation pays fee for identification of shareholders in register.

F-22 Executive Inquiry Fee Taxable

Description: Consultation fee with respect to corporation share structure and pricing of issues.

F-23 Reorganization Fee Taxable

Description: Fees from corporate reorganizations and escrows.

F-24 Search Card Mailing Taxable

Description: Arrange for printing, mailing, receipt of proxies, printing and mailing of announcements for annual shareholder meetings and annual reports.

F-25 Interest Disbursement Fee Taxable

Description: Fee for computing, preparing and mailing interest, cheques, etc. as well as the reconciliation of negotiated cheques and cancelled coupons received from paying banks.

F-26 Dividend Disbursement Fee Taxable

Description: Fee for computing, preparing and mailing dividend cheques, etc. as well as reconciliation of negotiated cheques.

F-27 Auction Fee - Notification of Brokers of Auction Taxable

Description: Corporation pays fee to trust company agent to arrange for securities auction (trust company does not participate in intermediation).

F-28 Preliminary and Initial Certification Taxable

Description: Certification fees for bond issues, i.e. arranging filings of documents with securities regulators.

F-29 Late Processing Fee for Clients (Not Interest) Taxable

Description: Extension of deadlines, filings. Administrative fees to cover additional costs incurred by trust company because corporate client did not provide required documentation to trustee.

F-30 Escrow Agreement Fees Taxable

Description: Fees for acting as trustee in an escrow agreement.

F-31 Policy 41 Fees Taxable

Description: Administrative charges to comply with Regulatory Requirements, e.g. information on share ownership percentage of each shareholder of a financial institution.

F-32 Proxy Solicitation Fees Taxable

Description: Fee for issuing and receiving proxies.

F-33 Reimbursement of Out-of-Pocket Expenses Taxable

Description: Performs other taxable services on behalf of a client at client's request, e.g. long distance phone calls, courier services, etc.

F-34 Interest Charges Exempt

Description: On overdue accounts.

ELECTRONIC BANKING

Fees Charged to Individual Account Holders
G-1 Utility Bill Payment Exempt

Description: Utility bill paid through automated banking machine (ABM).

G-2 Shared ABM Fees Exempt

Description: Fee to clients for performing chargeable transactions at other institutions' ABM.

G-3 Proprietary ABM Fees Exempt

Description: Fee charged to clients on ABMs.

EMPLOYEE BENEFITS CONSULTING

H-1 Sale of Benefits Brochures Taxable
H-2 Advisory Services Fees Taxable

Description: Benefits consulting.

H-3 Software Packages (Sales) Taxable

Description: Sale of software tailored to a particular client's needs.

HUMAN RESOURCES

I-1 Sales of Training Programs Taxable
I-2 Training Development Taxable
I-3 Facilitation Services Taxable
I-4 Payroll Services Taxable
I-5 Rental of Training Facilities Taxable
I-6 Compensation Consulting Taxable
I-7 Employee Communication Consulting Taxable
I-8 Benefits Consulting Taxable
I-9 Recruiting Taxable

INSTITUTIONAL CUSTODY SERVICES

J-1 Custodial - Basic Fee Taxable

Description: Fee covering safekeeping and reporting on portfolio.

J-2 Transaction Fees Taxable

Description: Charge for each security transaction occurring within client's portfolio. Administrative work resulting from buying/selling of securities by client. Trust company is not at risk.

J-3 Instructions to Third Parties Taxable

Description: Client requests custodian to communicate/instruct/confirm with client's broker to issue funds by wire/cheque.

J-4 Additional Custodian Accounts Taxable

Description: Fee for each additional account to segregate stocks by type.

J-5 Private Placements (New Stock Issues) Taxable

Description: Fee charged to client for attendance at closing to obtain required number of shares, taking custody of shares and transport to vault for safekeeping.

J-6 Mortgage Custody Fee Taxable

Description: Fee for monitoring mortgages in portfolio. No financial risk.

J-7 Options Charge Taxable

Description: Fee for administrative work for client-placed trades of security option contracts. Price and expiry dates are monitored for client (information service).

J-8 Audit Related Charge Taxable

Description: Fee for assisting client's external auditors (on-site).

J-9 Special Reports Taxable

Description: Fee for providing special reports or file downloads of securities held in custody.

J-10 On-Line Access Taxable

Description: Fee for allowing client direct access to their custody files.

J-11 Tax Filings Taxable

Description: Fee for completion and filing of T-5 and NR4 forms.

J-12 Special Services Taxable

Description: Client assistance - providing information quotes over the phone re: short term money market trading.

J-13 Reimbursements Taxable

Description: Reimbursement/recovery from client for out-of-pocket expenses, i.e. long distance calls, telex, postage, BBS/DTC/Euroclear charges, etc. where performed with other taxable services.

Exempt when performing exempt services on behalf of a client at client's request.

Exempt

INSURANCE

Client Referred to a Third Party Supplying Financial Service

Description: Finders fees or commission paid by insurer to trust company.

K-1 Accidental Death and Dismemberment Exempt
K-2 Mortgage Life Insurance Exempt
K-3 Employment Insurance (Job Loss Coverage) Exempt

INVESTMENT MANAGEMENT

L-1 Investment Management Fees Taxable

Description: Investment advice supplied to pooled/mutual funds.

L-2 Investment Management Fees Taxable

Description: Portfolio management for institutional and individual clients.

PERSONAL LENDING

M-1 Mortgage Lending Exempt

Description: A separate fee may be charged for each of the following activities:

  • set up of conventional mortgage
  • prepayments
  • transfer of conventional mortgage
  • discharge of conventional mortgage
  • renewal of conventional mortgage
  • early renewal of conventional mortgage
  • change in payment frequency, open/fixed term
  • NSF fee
  • late payment
M-2 Consumer Loans Exempt

Description: NSF cheque, stop payment, cheques greater than credit limit.

M-3 Appraisal Fee Exempt

Description: Appraisal fee related to lending operations.

M-4 Appraisal Fee Taxable

Description: Third party appraisal not relating to lending operation.

M-5 Mortgage Lending Administration Taxable

Description: Third party mortgages administration fee.

M-6 Consumer Loans Exempt

Description: Private label debt conversion. Fee to credit card company to convert cardholder's debt to a personal line of credit.

M-7 Consumer Loans Taxable

Description: Sale of personalized cheques (supply of property).

PENSION SERVICES

N-1 Asset & Fund Administration Taxable

Description: Custodial and administrative work following purchase/sale of securities by pension fund.

N-2 Transaction Charges - Canadian Taxable

Description: Record-keeping services.

N-3 Transaction Charges - Pooled Mutual Funds Taxable

Description: Record-keeping services.

N-4 Transaction Charges - U.S. Taxable

Description: Record-keeping services.

N-5 Transaction Charges - Non-North American Security Taxable

Description: Record-keeping services.

N-6 Transaction Charges - Covered Options and Futures Taxable

Description: Record-keeping services.

N-7 Transaction Charges - Margin Calls Taxable

Description: Provides advice to client on asset management and deals with broker on behalf of client.

N-8 Transaction Charges - Broker Call Loan Taxable

Description: Provides advice to client on asset management and deals with broker on behalf of client.

N-9 Transaction Charges - Collateral Substitutions Taxable

Description: Record-keeping services.

N-10 Transaction Charges - Attendance at Private Placements Taxable
N-11 Fund Administration and Reporting Taxable

Description: Asset Account Financial Statement.

N-12 Fund Administration and Reporting Taxable

Description: Additional copies of reports.

N-13 Fund Administration and Reporting Taxable

Description: Audit Continuity Report.

N-14 Fund Administration and Reporting Taxable

Description: Additional copies of Service Audit Report.

N-15 Fund Administration and Reporting Taxable

Description: Master Trust Arrangement - plan accounting.

N-16 Mortgage Administration Fees Taxable

Description: Held and administered for third party.

N-17 Other - Reimbursements Taxable

Description: Reimbursement of courier charges, long distance calls, etc. relating to taxable services provided.

N-18 Other - Advisory Taxable

Description: Assists external auditor on premises.

N-19 Other - Fees Taxable

Description: Special services and reports at client's request.

N-20 Regular Pension Processing Taxable

Description: Maintenance of individual reports of pension payments by direct deposit. Fees based on number of payments made.

N-21 Regular Pension Processing Taxable

Description: Issue of T4A, NR4A tax slips.

N-22 Regular Pension Processing Taxable

Description: Preparation and mailing of direct deposit (EFTS) and cheques, change in payment or regular monthly mailing.

N-23 Regular Pension Processing Taxable

Description: Preparation and issuance of retroactive pension payment cheques.

N-24 Non-Custodial Client Fees Taxable

Description: Trust company is not custodian of plan which payment is made from.

N-25 Minimum Fee Taxable

Description: For each pension or employee benefit plan.

N-26 Pensioner Data Changes Taxable

Description: Change to individual pensioner's record.

N-27 One Time Special Processing Taxable

Description: Termination refund, death benefit and transfer processing.

N-28 Lump Sum Payment Reversal and Re-Issue Taxable

Description: Reversal and re-issue.

N-29 Foreign Currency Administration Taxable

Description: Administration and record-keeping related to activities of conversion of pension or lump sum payments, recalls and re-issuance of paper cheque.

N-30 Stop Payment and Direct Deposit Recalls Taxable

Description: Administration and record-keeping related to the recall and re-issuance of cheques to beneficiaries as a result of change to amount of benefits.

N-31 Miscellaneous Fees Taxable

Description: Pensioner address labels.

N-32 Miscellaneous Fees Taxable

Description: Mailing of TD-1s.

N-33 Miscellaneous Fees Taxable

Description: Monthly Pension Payment Register.

N-34 Miscellaneous Fees Taxable

Description: Set up of pensioners' records.

N-35 Miscellaneous Fees Taxable

Description: Conversion of manual records to EDP format.

N-36 Other Fees Taxable

Description: Provide special services and reports.

N-37 On-Line Access Fees Taxable Taxable

Description: Client is given access to information re: pension fund by using own computer facilities.

PERSONAL TRUST/TRUSTEED RRSPs

O-1 Self-Directed RRSP Fee Taxable
Description: Record-keeping of redemption, partial redemption, termination, withdrawal, transactions, mortgage administration.
O-2 Brokers Plan Self-Directed RRSP Taxable
Description: Fees to broker for trustee's RSP account.
O-3 Investment Management RSP Fees Taxable

Description: Advice on purchase/selling of securities.

O-4 Self-Directed RRIF Fees Taxable

Description: Annual administration fees.

O-5 Corporate RSP Taxable

Description: Administration fee for trust.

O-6 Securities Transaction Fees other than Brokerage Taxable

Description: Fees re: administration (record-keeping) and delivery on third party basis for the purchase or subscription and the sale or redemption of stocks and bonds.

O-7 Securities Income Collection Fees Taxable

Description: Monitoring the trust receipt of dividend income.

O-8 Custodian Service Fee Taxable

Description: Administrative, record-keeping and safekeeping (fees to individual or trust).

O-9 Investment Management Service Fees Taxable

Description: Fees for managing income, portfolios.

O-10 Investment Management RRIF Fees Taxable

Description: Annual administration fees.

O-11 Investment Counselling Fees Taxable

Description: Fees for advisory services such as restructuring of client's investment/financial requirements.

O-12 Fees from Financial Planning Services Taxable

Description: Fees for advice on portfolio management.

O-13 Trust and Advisory Fee Taxable

Description: Fees to trust, estates for administration services.

O-14 Realizing and Distributing Fees (Capital and Income) Taxable

Description: Fees for collecting based on capital and income collected and/or disbursing, including minimum fees where applicable.

O-15 Income Splitting Trust Fees Taxable

Description: Trustee fee for advising set-up of trust.

O-16 Trustee Fee Taxable

Description: Annual fee to maintain inter vivos trust/testamentary trust.

O-17 Realizing and Distributing Fees (Capital and Income) Taxable

Description: Fees for distribution of assets out of inter vivos trusts and, where applicable, testamentary trusts.

O-18 Preliminary Estate Administration Taxable

Description: Initial fee regarding estates.

O-19 Special Asset Administration Fees Taxable

Description: Fees for management of particular portfolios.

O-20 Annual Care and Management Fees Taxable

Description: Annual administration fees.

O-21 Income Tax Return Fees Taxable

Description: Fees earned by preparation of tax returns.

O-22 Provincial Stock Savings Plans Taxable

Description: Annual administration fee and activity fee for plan.

O-23 Storage Fees Taxable

Description: Storage of property.

O-24 Searches Taxable

Description: Searches for securities, accounts or of safety deposit boxes of estates.

O-25 Appraisals Taxable

Description: Appraising estate property.

O-26 Wills Planning Fees Taxable

Description: Consultation with individual to discuss will.

O-27 EDP System Enhancements Taxable

Description: Customized reporting.

O-28 Special Services Taxable

Description: Fees for payment of domestic wages, special remittances, other special services, and personal time of administrators.

O-29 Information Collection Taxable

Description: Gathering of information relating to client's portfolio and advising as to structure and mix of products that should be utilized.

POOLED/MUTUAL FUNDS ADMINISTRATION

P-1 Trustee & Asset Administration Taxable

Description: Fee for managing and administering assets invested in stock, combination of stock/external investments, classified funds, group RSP's.

P-2 Reporting Taxable

Description: Fee for plan tax reporting, insider trading reports and additional financial statements.

P-3 Transaction Fees (Custodian) Taxable

Description: Recording fees relating to the purchase, sale, free receipts/ delivery, redemption, stock split and stock dividend (brokerage fees are exempt).

P-4 Record-keeping Fees Taxable

Description: Basic fee for single plan with one investment, one monthly contribution and an annual statement.

P-5 Activity Fees Taxable

Description: Fees for the record-keeping of the following: terminations, transfers, withdrawals, hard copy contribution data, negative contribution, manual adjustments, share withdrawal, demographic change, duplicate statement, tax slip and reallocations.

P-6 Special Charges Taxable

Description: Fees for balancing contributions, plan set up, review/approval of plan, customized statements, reprocessing of plan, processing/filing death benefits, commingling of investments, outside audit administration, special projects, issuing proxies, proxy tabulation, reimbursements.

P-7 Valuation Taxable

Description: Fee for performing daily, weekly, monthly, or when required, valuation for pooled and mutual funds, calculating income and capital gains factors.

P-8 Special Charges Exempt

Description: Interest on overdrafts, late trade notification interest adjustments.

PRIVATE BANKING

Q-1 Corporate Finance Loans Exempt

Description: Commercial lending to individuals or small companies.

Q-2 Advisory Services Taxable

Description: Advising clients regarding business and properties for purchase.

Q-3 Finders Fees Taxable or Exempt

Description: Refers a client to a provider of services. The tax status will depend on the nature of product/ service found for client.

Q-4 Advisory Services Taxable

Description: Providing information to a client regarding alternative financing.

Q-5 Money Market Products (Finders Fees) Exempt

Description: Refer client to financial institution that provides best rates re: T-Bills, foreign currency, commercial paper, term deposits.

SECURITIES

R-1 Fee and Interest Charges to Brokers Exempt

Description: Flat fee for late settlement.

R-2 Fee and Interest Charges to Brokers Exempt

Description: Interest fee for non-performance.

R-3 Earnings on Foreign Settlements N/A

Description: Financial income.

R-4 Securities Lending Exempt

Description: Bond/Stock loans to brokers to settle short trades.

R-5 Client Service Fees Taxable

Description: Administrative and record-keeping services provided to small brokerage houses for a fee.

R-6 Transaction Fees Taxable

Description: Record-keeping activity re: corporate capital changes (e.g. stock splits).

R-7 Transaction Fees for Client-Placed Trades Taxable

Description: Administrative work with respect to client-placed trades includes:

Depositing and withdrawing physical stock certificates, accessing information on-line, providing deposit and withdrawal instructions on-line, moving balances between accounts and branches (record-keeping), hard copy reconciliation services, all reporting/confirmation/settlement of client trades, dividend claiming, courier services, and security entitlements.

R-8 Security Reports Taxable

Description: Hard copy reports.

TREASURY

S-1 Syndication Services Exempt

Description: Sharing of risk in a loan.

S-2 Foreign Currency Exchange Exempt

Description: Buying and selling of foreign currency.

S-3 Swaps Exempt

Description: Acts on behalf of a client to exchange debt.

S-4 Issuing Asset Back Securities Exempt

Description: Assumes the risk of a new issue of securities.

S-5 Lease Arrangements of Property Taxable

Description: Leasing of property such as aircrafts, railway cars, etc.

S-6 Advisory Services Taxable

Description: Advice to clients regarding financial requirements.

S-7 Asset-Backed Securities Taxable

Description: Administration of services provided to third parties (e.g. collection of revenues, payment of expenses with respect to mortgages) where trust company is administrator. Trust company is not at risk.

OTHER PRODUCTS

T-1 Provincial Stock Savings Plans Taxable

Description: Fee for administration and record- keeping activities.

T-2 Translation Service Taxable

Description: Fee for performing translation services.

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