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.
- 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:
- As a disbursement: the client pays the TAF as well as GST on the TAF;
- As a fee: the client pays the TAF and the TAF now attracts GST ;
- 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.