Trust Administration Fee ("TAF") continued

TAF does not apply if:

  • The money paid into trust is solely for fees; or
  • The money paid into trust is held as a fee retainer.

TAF does apply if:

  • Funds are paid into trust for a mixed purpose (e.g. partly for fees and partly for a fixed purpose); or
  • Funds are paid into trust for a non-fee or non-retainer purpose.

Triggering Event:

  • TAF is triggered on receipt of funds into trust.

How often do you charge TAF?

  • The $15 TAF is charged once per distinct client transaction,not once per client.

Three ways to charge TAF:

  1. As a disbursement: the client pays the TAF as well as GST on the TAF;
  2. As a fee: the client pays the TAF and the TAF now attracts GST ;
  3. The lawyer pays the TAF and remits the GST to the LSBC.

When do you remit TAF?

  • See LSBC fixed schedule within this module.

Procedural issues in remitting TAF:

  • TAF is not remitted directly from Trust, it must first be transferred to the general account;
  • You cannot transfer TAF without first billing your client. However, you will still have an obligation to pay TAF when due!

TAF and separate trust accounts:

  • TAF is attracted on the initial deposit into either the pooled trust account or separate trust account. A subsequent transfer between trust accounts, so long as it is for the same matter, does not attract another fee

5 For more information about TAF than is provided in this module, see the Trust Administration Fee area of the LSBC website, which includes the TAF filing form and a set of Frequently Asked Questions about TAF.