... A harmonized sales tax (HST) would result in additional taxes being applied to investment management services, including mutual funds, segregated funds and other managed investment accounts, which are part of many registered savings plans, registered income funds and locked-in retirement accounts.A warning to government:
... While ... manufacturers would likely benefit the most from an HST by claiming credits for taxes paid on the inputs used to make their products, there is no similar offset for investment managers. For investors, it would be a tax grab, pure and simple.
Should the HST be implemented ... financial services firms will be obligated to investigate ways to reduce the impact on their clients. One option would be to move parts of our operation to a province without an HST, such as Alberta. [And don’t think individuals won't also have an incentive to move.]Taxes, taxes, taxes. We’re taxed on income. When we spend what’s left we’re taxed again. When we try to save it we’re also taxed. Time for a tax revolt.