In an effort to reduce confusion and streamline administrative work related to new Harmonized Sales Tax requirements, a cross-financial-industry group has made resources available to help investment managers and institutional investors comply with the rules.

With the introduction of the HST in Ontario and British Columbia this year, the federal Excise Tax Act was adjusted. Under the new rules, institutional and other investors meeting certain criteria are required to provide investment fund managers with information about where their beneficial holders reside, for HST calculation purposes. Investors that don’t provide the accurate information within a certain time frame are subject to penalties from the Canada Revenue Agency.

The Investment Funds Institute of Canada announced this week that new resources related to these requirements are available on its website for investment managers.

A cross-industry group of representatives from the mutual fund, insurance, banking and securities industries developed a model letter and form that investment managers can use to solicit the necessary information from institutional investors.

The form and explanatory note may also be used by institutional investors that self-identify as related parties and are required to report.