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Excise Tax Act (R.S.C., 1985, c. E-15)

Full Document:  

Act current to 2021-04-05 and last amended on 2020-07-01. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION VCollection and Remittance of Division II Tax (continued)

SUBDIVISION BRemittance of Tax (continued)

Marginal note:Selected listed financial institutions

  •  (1) For the purposes of this Part, a financial institution is a selected listed financial institution throughout a reporting period in a fiscal year that ends in a taxation year of the financial institution if the financial institution is

    • (a) a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) during the taxation year; and

    • (b) a prescribed financial institution throughout the reporting period.

  • Marginal note:Adjustment to net tax

    (2) In determining the net tax for a particular reporting period in a fiscal year that ends in a taxation year of a selected listed financial institution of a prescribed class, the financial institution shall add all positive amounts, and may deduct all negative amounts, each of which is determined, for a participating province, by the formula

    [(A - B) × C × (D/E)] - F + G

    where

    A
    is the total of
    • (a) all tax (other than a prescribed amount of tax) that became payable under any of subsection 165(1) and sections 212, 218 and 218.01 by the financial institution during the particular reporting period or that was paid by the financial institution during the particular reporting period without having become payable,

    • (b) all amounts each of which is tax under subsection 165(1) in respect of a supply (other than a supply to which paragraph (c) applies) made by a person (other than a prescribed person or a person of a prescribed class) to the financial institution that would, in the absence of an election made under section 150, have become payable by the financial institution during the particular reporting period, and

    • (c) all amounts each of which is an amount — in respect of a supply of property or a service that is made during the particular reporting period by another person to the financial institution and to which the financial institution has elected to have this paragraph apply — equal to tax calculated at the rate set out in subsection 165(1) on the cost to the other person of supplying the property or service to the financial institution excluding any remuneration to employees of the other person, the cost of financial services and tax under this Part;

    B
    is the total of
    • (a) all input tax credits (other than input tax credits in respect of an amount of tax that is prescribed for the purposes of paragraph (a) of the description of A) of the financial institution for the particular reporting period or preceding reporting periods of the financial institution claimed by the financial institution in the return under this Division filed by the financial institution for the particular reporting period, and

    • (b) all amounts each of which would be an input tax credit of the financial institution for the particular reporting period of the financial institution in respect of property or a service if tax became payable during the particular reporting period in respect of the supply of the property or service equal to the amount included for the particular reporting period under paragraph (b) or (c) of the description of A in respect of the supply;

    C
    is the financial institution’s percentage for the participating province for the taxation year, determined in accordance with the prescribed rules that apply to financial institutions of that class;
    D
    is the tax rate for the participating province;
    E
    is the rate set out in subsection 165(1);
    F
    is the total of
    • (a) all amounts of tax (other than a prescribed amount of tax) under subsection 165(2) in respect of supplies made in the participating province to the financial institution, or under section 212.1 calculated at the tax rate for the participating province, that

      • (i) became payable, or were paid without having become payable, by the financial institution during

        • (A) the particular reporting period, or

        • (B) any other reporting period of the financial institution that precedes the particular reporting period, provided that

          • (I) the particular reporting period ends within two years after the end of the financial institution’s fiscal year that includes the other reporting period, and

          • (II) the financial institution was a selected listed financial institution throughout the other reporting period,

      • (ii) were not included in determining the positive or negative amounts that the financial institution is required to add, or may deduct, under this subsection in determining its net tax for any reporting period of the financial institution other than the particular reporting period, and

      • (iii) are claimed by the financial institution in a return under this Division filed by the financial institution for the particular reporting period, and

    • (b) all amounts each of which is an amount — in respect of a supply of property or a service that is made during the particular reporting period by another person to the financial institution and to which the financial institution has elected to have paragraph (c) of the description of A apply — equal to tax payable by the other person under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 that is included in the cost to the other person of supplying the property or service to the financial institution; and

    G
    is the total of all amounts each of which is a positive or negative prescribed amount.
  • Marginal note:Exclusions from adjustment

    (3) In determining an amount that a selected listed financial institution is required to add or may deduct under subsection (2) in determining its net tax,

    • (a) tax that the financial institution is deemed to have paid under any of subsections 171(1), 171.1(2), 206(2) and (3) and 208(2) and (3) shall be excluded from the totals for A and F in the formula in subsection (2);

    • (b) input tax credits in respect of tax referred to in paragraph (a) and input tax credits that the financial institution is permitted to claim under subsection 193(1) or (2) shall be excluded from the total for B in that formula; and

    • (c) no amount of tax paid or payable by the financial institution in respect of property or services acquired, imported or brought into a participating province otherwise than for consumption, use or supply in the course of an endeavour (as defined in subsection 141.01(1)) of the financial institution shall be included.

  • Marginal note:Election

    (4) If a person, other than a prescribed person or a person of a prescribed class, and a selected listed financial institution have made jointly an election under section 150, the financial institution may make an election, in prescribed form containing prescribed information, to have paragraph (c) of the description of A in subsection (2) apply to every supply to which subsection 150(1) applies that is made by the person to the financial institution at a time the election made under this subsection is in effect.

  • (5) [Repealed, 2017, c. 33, s. 131]

  • Marginal note:Effective period of election

    (6) An election made under subsection (4) by a selected listed financial institution in respect of supplies made by a person to the financial institution shall be effective for the period beginning on the day specified in the election and ending on the earliest of

    • (a) the day the election made jointly by the person and the financial institution under section 150 ceases to be effective,

    • (b) the day specified in a revocation of the election made under subsection (6.1),

    • (c) the day the person becomes a prescribed person, or a person of a prescribed class, for the purposes of subsection (4), and

    • (d) the day the financial institution ceases to be a selected listed financial institution.

  • Marginal note:Revocation

    (6.1) A selected listed financial institution that has made an election under subsection (4) may revoke the election, in prescribed form containing prescribed information, effective on the day specified in the revocation, which day is at least 365 days after the day on which the election becomes effective.

  • Marginal note:Notice of election

    (6.2) If a particular selected listed financial institution has made an election under subsection (4) in respect of supplies made by another selected listed financial institution to the particular financial institution, the particular financial institution shall, in a manner satisfactory to the Minister,

    • (a) notify the other financial institution of the election and of the day it becomes effective on or before that day or any later day that the Minister may allow; and

    • (b) if the election ceases to be effective, notify the other financial institution of the day that the election ceases to be effective on or before that day or any later day that the Minister may allow.

  • Marginal note:Information requirements

    (7) For the purposes of this section, subsections 169(4) and (5) and 223(2) apply with respect to any amount that is included in the description of F in subsection (2) as if that amount were an input tax credit.

  • (8) [Repealed, 2012, c. 31, s. 79]

  • Marginal note:Regulations — selected listed financial institutions

    (9) The Governor in Council may make regulations

    • (a) requiring any person or any class of persons to provide to a person any information that is required to allow a selected listed financial institution to determine the value of an element of a formula in subsection (2) or 237(5) or in any other provision of this Part or of a regulation made under this Part, specifying what information is to be provided, prescribing compliance measures in respect of that provision of information, and prescribing joint and several, or solidary, liability or penalties for failing to provide that information when and as required;

    • (b) allowing a person and a selected listed financial institution to make an election in respect of the filing of the returns of the person or the financial institution, specifying the circumstances in which that election may be revoked, prescribing compliance measures or other requirements in respect of that filing, and prescribing joint and several, or solidary, liability or penalties in respect of that filing; or

    • (c) requiring any selected listed financial institution to register under Subdivision D for the purposes of this Part or deeming any selected listed financial institution to be a registrant for the purposes of this Part.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1997, c. 10, s. 208
  • 2000, c. 30, s. 54
  • 2006, c. 4, s. 21
  • 2007, c. 18, s. 27
  • 2009, c. 32, s. 20
  • 2010, c. 12, s. 70
  • 2012, c. 31, s. 79
  • 2017, c. 33, s. 131
 
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