List of Products and Services of Trust Companies
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.
TABLE OF CONTENTS
- (A) Banking/Deposit Services
- (B) Card Services
- (C) Commercial Lending & Property Management
- (D) Collections Services
- (E) Corporate Services
- (F) Corporate Trust
- (G) Electronic Banking
- (H) Employee Benefits Consulting
- (I) Human Resources
- (J) Institutional Custody Services
- (K) Insurance
- (L) Investment Management
- (M) Personal Lending
- (N) Pension Services
- (O) Personal Trust/Trusteed RRSPs
- (P) Pooled/Mutual Funds Administration
- (Q) Private Banking
- (R) Securities
- (S) Treasury
- (T) Other Products
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 ServiceDescription: 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:
|
|
| 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. |
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| 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. |
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| Q-4 Advisory Services | Taxable |
| Description: Providing information to a client regarding alternative financing. |
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| 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. |
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| R-2 Fee and Interest Charges to Brokers | Exempt |
| Description: Interest fee for non-performance. |
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| R-3 Earnings on Foreign Settlements | N/A |
| Description: Financial income. |
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| R-4 Securities Lending | Exempt |
| Description: Bond/Stock loans to brokers to settle short trades. |
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| R-5 Client Service Fees | Taxable |
| Description: Administrative and record-keeping services provided to small brokerage houses for a fee. |
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| R-6 Transaction Fees | Taxable |
| Description: Record-keeping activity re: corporate capital changes (e.g. stock splits). |
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| 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. |
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| R-8 Security Reports | Taxable |
| Description: Hard copy reports. |
TREASURY
| S-1 Syndication Services | Exempt |
| Description: Sharing of risk in a loan. |
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| S-2 Foreign Currency Exchange | Exempt |
| Description: Buying and selling of foreign currency. |
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| S-3 Swaps | Exempt |
| Description: Acts on behalf of a client to exchange debt. |
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| S-4 Issuing Asset Back Securities | Exempt |
| Description: Assumes the risk of a new issue of securities. |
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| S-5 Lease Arrangements of Property | Taxable |
| Description: Leasing of property such as aircrafts, railway cars, etc. |
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| S-6 Advisory Services | Taxable |
| Description: Advice to clients regarding financial requirements. |
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| 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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