News Release Archive

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.


Contact: Steve Warburton  902-424-3522

trp                   Mar. 7, 1997 - 8:50 a.m.