News Release Archive
FINANCE--RELIEF FOR SEGREGATED FUNDS ----------------------------------------------------------------- Nova Scotia companies like Maritime Life which operate segregated funds, similar to mutual funds, will continue to be nationally competitive because of changes announced today by Finance Minister Bill Gillis. Provisions to the regulations on the harmonized sales tax will ensure segregated funds with their head office in Nova Scotia will not be placed at a competitive disadvantage. "This is a unique situation," Dr. Gillis said. "But when jobs are preserved in Nova Scotia companies, especially those rooted here, then everyone wins." With the introduction of HST rules, management fees charged on segregated funds located in Nova Scotia will be subject to the 15 per cent HST. Under new provisions announced today, Nova Scotia companies will be rebated the provincial portion of the new sales tax, less any other rebates available. "The main principle of harmonization is to make sure Nova Scotia businesses benefit. These rules allow administrators of segregated funds to maintain the same advantages after the HST as before," said Dr. Gillis. Making the change also means segregated fund companies wishing to locate to Nova Scotia will not be placed at a disadvantage. -30- Contact: Steve Warburton 902-424-3522 trp Mar. 7, 1997 - 8:50 a.m.