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

Full Document:  

Act current to 2019-11-19 and last amended on 2019-08-28. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION VCollection and Remittance of Division II Tax (continued)

SUBDIVISION BRemittance of Tax (continued)

Marginal note:Definitions

  •  (1) In this section, exchange-traded fund, exchange-traded series, non-stratified investment plan and stratified investment plan have the meaning prescribed by regulation.

  • Marginal note:Application to Minister

    (2) A selected listed financial institution that is an exchange-traded fund may apply to the Minister to use particular methods, for a fiscal year that ends in a taxation year of the financial institution, to determine

    • (a) if the financial institution is a stratified investment plan, the financial institution’s percentages for the purposes of subsection 225.2(2) for each exchange-traded series of the financial institution, for each participating province and for the taxation year; and

    • (b) if the financial institution is a non-stratified investment plan, the financial institution’s percentages for the purposes of subsection 225.2(2) for each participating province and for the taxation year.

  • Marginal note:Form and manner of application

    (3) An application made by a selected listed financial institution under subsection (2) is to be

    • (a) made in prescribed form containing prescribed information, including

      • (i) if the financial institution is a stratified investment plan, the particular methods to be used for each exchange-traded series of the financial institution, and

      • (ii) if the financial institution is a non-stratified investment plan, the particular methods to be used for the financial institution; and

    • (b) filed by the financial institution with the Minister in prescribed manner on or before

      • (i) the day that is 180 days before the first day of the fiscal year for which the application is made, or

      • (ii) any later day that the Minister may allow.

  • Marginal note:Authorization

    (4) On receipt of an application made under subsection (2), the Minister must

    • (a) consider the application and authorize or deny the use of the particular methods; and

    • (b) notify the selected listed financial institution in writing of the decision on or before

      • (i) the later of

        • (A) the day that is 180 days after the receipt of the application, and

        • (B) the day that is 180 days before the first day of the fiscal year for which the application is made, or

      • (ii) any later day that the Minister may specify, if the day is set out in a written application filed by the financial institution with the Minister.

  • Marginal note:Effect of authorization

    (5) If the Minister authorizes under subsection (4) the use of particular methods for a fiscal year of the selected listed financial institution,

    • (a) despite Part 2 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,

      • (i) the financial institution’s percentages for any participating province and for the taxation year in which the fiscal year ends that would, in the absence of this section, be determined under that Part are to be determined in accordance with those particular methods, and

      • (ii) the financial institution’s percentages for any exchange-traded series of the financial institution, for any participating province and for the taxation year in which the fiscal year ends that would, in the absence of this section, be determined under that Part are to be determined in accordance with those particular methods; and

    • (b) the financial institution must consistently, throughout the fiscal year, use those particular methods as indicated in the application to determine the percentages referred to in paragraph (a).

  • Marginal note:Revocation

    (6) An authorization granted under subsection (4) to a selected listed financial institution in respect of a fiscal year of the financial institution ceases to have effect on the first day of the fiscal year and, for the purposes of this Part, is deemed never to have been granted, if

    • (a) the Minister revokes the authorization and sends a notice of revocation to the financial institution at least 60 days before the first day of the fiscal year; or

    • (b) the financial institution files with the Minister in prescribed manner a notice of revocation in prescribed form containing prescribed information on or before the first day of the fiscal year.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2012, c. 31, s. 80

Marginal note:Definitions

  •  (1) The following definitions apply in this section.

    business input

    business input has the same meaning as in subsection 141.02(1). (intrant d’entreprise)

    Canadian activity

    Canadian activity has the same meaning as in section 217. (activité au Canada)

    exclusive input

    exclusive input of a person means property or a service that is acquired or imported by the person for consumption or use directly and exclusively for the purpose of making taxable supplies for consideration or directly and exclusively for purposes other than making taxable supplies for consideration. (intrant exclusif)

  • Marginal note:Prescribed definitions

    (2) In this section, exchange-traded fund, exchange-traded series, individual, investment plan, non-stratified investment plan, plan member, private investment plan, series, specified investor, stratified investment plan and unit have the meaning prescribed by regulation.

  • Marginal note:Stratified investment plans

    (3) If a selected listed financial institution is a stratified investment plan and no election under subsection (6) in respect of a series of the financial institution is in effect throughout a fiscal year of the financial institution that ends in a calendar year, the following rules apply:

    • (a) for the purposes of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,

      • (i) if the series is an exchange-traded series, all units of the series that are held, at a particular time in the fiscal year, by a person that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province,

      • (ii) if the series is not an exchange-traded series, all units of the series that are held, at a particular time in the fiscal year, by an individual, or a specified investor in the financial institution, that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province, and

      • (iii) the financial institution is deemed to know, on December 31 of the calendar year, the province in which the particular individual referred to in subparagraph (i) or (ii) is resident;

    • (b) for the purposes of determining an input tax credit of the financial institution, any supply made during the fiscal year by the financial institution in respect of units of the series that are held by a person that is not resident in Canada is deemed to have been made to a person resident in Canada;

    • (c) for the purposes of the definitions external charge and qualifying consideration in section 217, any outlay made, or expense incurred, by the financial institution during the fiscal year in respect of units of the series that are held by a person that is not resident in Canada is deemed to be applicable to a Canadian activity of the financial institution; and

    • (d) no amount of tax in respect of a business input of the financial institution that becomes payable by the financial institution during the fiscal year or that is paid by the financial institution during the fiscal year without having become payable is to be included in determining an input tax credit of the financial institution if the business input

      • (i) is acquired or imported for consumption, use or supply in the course of any activity relating to the series, or

      • (ii) is not an exclusive input of the financial institution.

  • Marginal note:Non-stratified investment plans

    (4) If a selected listed financial institution is a non-stratified investment plan and no election under subsection (7) made by the financial institution is in effect throughout a fiscal year of the financial institution that ends in a calendar year, the following rules apply:

    • (a) for the purposes of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,

      • (i) if the financial institution is an exchange-traded fund, all units of the financial institution that are held, at a particular time in the fiscal year, by a person that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province,

      • (ii) if the financial institution is not an exchange-traded fund, all units of the financial institution that are held, at a particular time in the fiscal year, by an individual, or a specified investor in the financial institution, that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province, and

      • (iii) the financial institution is deemed to know, on December 31 of the calendar year, the province in which the particular individual referred to in subparagraph (i) or (ii) is resident;

    • (b) for the purposes of determining an input tax credit of the financial institution, any supply made during the fiscal year by the financial institution in respect of units of the financial institution that are held by a person that is not resident in Canada is deemed to have been made to a person resident in Canada;

    • (c) for the purposes of the definitions external charge and qualifying consideration in section 217, any outlay made, or expense incurred, by the financial institution during the fiscal year in respect of units of the financial institution that are held by a person that is not resident in Canada is deemed to be applicable to a Canadian activity of the financial institution; and

    • (d) no amount of tax in respect of a business input of the financial institution that becomes payable by the financial institution during the fiscal year or that is paid by the financial institution during the fiscal year without having become payable is to be included in determining an input tax credit of the financial institution if the business input is not an exclusive input of the financial institution.

  • Marginal note:Pension entities and private investment plans

    (5) If a selected listed financial institution is an investment plan that is a pension entity of a pension plan or a private investment plan and no election under subsection (7) made by the financial institution is in effect throughout a fiscal year of the financial institution that ends in a calendar year, the following rules apply:

    • (a) for the purposes of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,

      • (i) all plan members of the financial institution that the financial institution knows, on December 31 of the calendar year, are not resident in Canada at a particular time in the fiscal year are deemed to be resident in Canada at the particular time but not resident in any participating province, and

      • (ii) the financial institution is deemed to know, on December 31 of the calendar year, the province in which each of the plan members referred to in subparagraph (i) is resident;

    • (b) for the purposes of determining an input tax credit of the financial institution, any supply made during the fiscal year by the financial institution in respect of plan members of the financial institution that are not resident in Canada is deemed to have been made to a person resident in Canada;

    • (c) for the purposes of the definitions external charge and qualifying consideration in section 217, any outlay made, or expense incurred, by the financial institution during the fiscal year in respect of plan members of the financial institution that are not resident in Canada is deemed to be applicable to a Canadian activity of the financial institution; and

    • (d) no amount of tax in respect of a business input of the financial institution that becomes payable by the financial institution during the fiscal year or that is paid by the financial institution during the fiscal year without having become payable is to be included in determining an input tax credit of the financial institution if the business input is not an exclusive input of the financial institution.

  • Marginal note:Election — stratified investment plans

    (6) A stratified investment plan may make an election in respect of a series of the investment plan to have subsection (3) not apply to the series, and that election is to be effective from the first day of a fiscal year of the investment plan.

  • Marginal note:Election — other investment plans

    (7) A person that is a non-stratified investment plan, a pension entity or a private investment plan may make an election to have subsection (4) or (5), as the case may be, not apply to the person, and that election is to be effective from the first day of a fiscal year of the person.

  • Marginal note:Form of election

    (8) An election made under subsection (6) or (7) by a person is to

    • (a) be made in prescribed form containing prescribed information;

    • (b) set out the first fiscal year of the person during which the election is to be in effect; and

    • (c) be filed with the Minister in prescribed manner on or before the first day of that first fiscal year or any later day that the Minister may allow.

  • Marginal note:Cessation

    (9) An election made under subsection (6) or (7) by a person ceases to have effect on the earliest of

    • (a) the first day of the fiscal year of the person in which the person ceases to be a selected listed financial institution,

    • (b) in the case of an election made under subsection (6), the first day of the fiscal year of the person in which the person ceases to be a stratified investment plan,

    • (c) in the case of an election made under subsection (7), the first day of the fiscal year of the person in which the person ceases to be a non-stratified investment plan, a pension entity or a private investment plan, as the case may be, and

    • (d) the day on which a revocation of the election becomes effective.

  • Marginal note:Revocation

    (10) A person that has made an election under subsection (6) or (7) may revoke the election, effective on the first day of a fiscal year of the person that begins at least five years after the election becomes effective, or on the first day of any earlier fiscal year as the Minister may allow on application by the person, by filing with the Minister in prescribed manner a notice of revocation in prescribed form containing prescribed information no later than the day on which the revocation is to become effective.

  • Marginal note:Restriction

    (11) If a revocation of an election made under subsection (6) or (7) by a person becomes effective on a particular day, any subsequent election under that subsection is not a valid election unless the first day of the fiscal year of the person set out in the subsequent election is a day that is at least five years after the particular day or any earlier day as the Minister may allow on application by the person.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2012, c. 31, s. 80
 
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