Trust Administration Fee ("TAF") continued
It is irrelevant that the money that comes into trust is not received from your client. For example, if you are a criminal lawyer and money is returned to your client from a law enforcement agency by way of a bank draft "in trust," the TAF applies. On the other hand, if no money is received into a trust account, even if a transaction is recorded as a trust transaction in your trust ledgers, there will be no TAF. An example would be where you endorse a trust cheque, without recourse, over to a third party.
The TAF is due upon the receipt of funds into trust (not when a bill is created or the file is closed).
GST is payable on the TAF and when you make your remittance to the LSBC the GST must be included in the total TAF collected. You can handle the GST and TAF in one of three ways:
- As a disbursement on your bill, where both the TAF and the GST are charged to the client.
- Included in your fee. The TAF is still charged to the client, but GST will apply as it is now part of your fee.
- You can pay the TAF, but then you must still remit the GST to the LSBC. (The first two methods, where GST is collected from the client, allow you an offset).