It said that mutual fund trailing commissions paid by fund managers to both original dealers and new dealers will generally be subject to GST/HST beginning in July. That’s one part of the test.”Ultimately, whether trailing commissions are taxable or not will “depend on the particular facts of the taxpayer. If agreements are “structured to be exempt,” including in the way services are described and operationalized, then trailing commissions may remain exempt. Fund managers will “generally” be able to recover the GST/HST on trailers using input tax credits, the CRA’s email said. Fund economicsBorden Ladner Gervais LLP has suggested that managers should assume that tax on trailing commissions will impact fund economics, either through unrecoverable tax or increased compliance cost and audit risk.