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

Marginal note:Definitions

• 259.1 (1) The definitions in this subsection apply in this section.

  claim period

  claim period has the meaning assigned by subsection 259(1). (période de demande)

  printed book

  printed book does not include anything that is or the main component of which is

  • (a) a newspaper;

  • (b) a magazine or periodical acquired otherwise than by way of subscription;

  • (c) a magazine or periodical in which the printed space devoted to advertising is more than 5% of the total printed space;

  • (d) a brochure or pamphlet;

  • (e) a sales catalogue, a price list or advertising material;

  • (f) a warranty booklet or an owner’s manual;

  • (g) a book designed primarily for writing on;

  • (h) a colouring book or a book designed primarily for drawing on or affixing thereto, or inserting therein, items such as clippings, pictures, coins, stamps or stickers;

  • (i) a cut-out book or a press-out book;

  • (j) a program relating to an event or performance;

  • (k) an agenda, calendar, syllabus or timetable;

  • (l) a directory, an assemblage of charts or an assemblage of street or road maps, but not including

    • (i) a guidebook, or

    • (ii) an atlas that consists in whole or in part of maps other than street or road maps;

  • (m) a rate book;

  • (n) an assemblage of blueprints, patterns or stencils;

  • (o) prescribed property; or

  • (p) an assemblage or collection of, or any item similar to, items included in any of paragraphs (a) to (o). (livre imprimé)

  qualifying non-profit organization

  qualifying non-profit organization has the meaning assigned by subsection 259(2). (organisme à but non lucratif admissible)

  specified person

  specified person means

  • (a) a municipality;

  • (b) a school authority;

  • (c) a university;

  • (d) an organization that operates a post-secondary college or post-secondary technical institute

    • (i) that receives from a government or municipality funds that are paid for the purpose of assisting the organization in the ongoing provision of educational services to the general public, and

    • (ii) the primary purpose of which is to provide programs of instruction in one or more fields of vocational, technical or general education;

  • (e) a charity, public institution or qualifying non-profit organization that operates a public lending library; or

  • (f) a prescribed charity, or a prescribed qualifying non-profit organization, the primary purpose of which is the promotion of literacy. (personne déterminée)

  specified property

  specified property means

  • (a) a printed book or an update of such a book;

  • (b) an audio recording all or substantially all of which is a spoken reading of a printed book; or

  • (c) a bound or unbound printed version of scripture of any religion. (bien déterminé)

• Marginal note:Rebate for printed books, etc.

  (2) The Minister shall, subject to subsection (3), pay a rebate to a person that is, on the last day of a claim period of the person or of the person’s fiscal year that includes that claim period, a specified person equal to the amount of tax under subsection 165(1) or section 212 that became payable in the claim period by the person in respect of the acquisition or importation of specified property if

  • (a) in the case of a specified person described in paragraph (f) of the definition specified person in subsection (1), the person does not acquire or import the specified property for

    • (i) the purpose of making a supply by way of sale of the specified property for consideration, or

    • (ii) the purpose of transferring ownership of the specified property to another person in the course of supplying another property or a service for consideration; and

  • (b) in any other case, the person does not acquire or import the specified property for

    • (i) the purpose of making a supply by way of sale of the specified property, or

    • (ii) the purpose of transferring ownership of the specified property to another person in the course of supplying another property or a service.

• Marginal note:Application for rebate

  (3) A rebate shall not be paid under subsection (2) to a specified person in respect of tax payable by the person unless the person files an application for the rebate within four years after the end of the claim period of the person in which the tax became payable.

• Marginal note:Limitation

  (4) Except where subsection (5) applies, a person shall not make more than one application for rebates under this section for any claim period of the person.

• Marginal note:Application by branches or divisions

  (5) Where a person that is entitled to a rebate under subsection (2) is engaged in one or more activities in separate branches or divisions and is required under subsection 259(10) to file separate applications for rebates under section 259 in respect of a branch or division, the person

  • (a) shall file separate applications under this section in respect of the branch or division; and

  • (b) shall not make more than one such application in respect of the branch or division for any claim period of the person.

• (6) [Repealed, 2009, c. 32, s. 30]

Marginal note:Definitions

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

  claim period

  claim period has the same meaning as in subsection 259(1). (période de demande)

  Legion entity

  Legion entity means the Dominion Command or any provincial command or branch of the Royal Canadian Legion. (entité de la Légion)

• Marginal note:Rebate for poppies and wreaths

  (2) If a Legion entity acquires, imports or brings into a participating province property that is a poppy or wreath, the Minister shall, subject to subsection (3), pay a rebate to the Legion entity equal to the amount of tax that becomes payable, or is paid without having become payable, by the Legion entity during a claim period of the Legion entity in respect of the acquisition, importation or bringing in.

• Marginal note:Application for rebate

  (3) A rebate shall not be paid under subsection (2) in respect of tax that becomes payable, or is paid without having become payable, by a Legion entity during a claim period of the Legion entity unless the Legion entity files an application for the rebate within four years after the last day of the claim period.

• Marginal note:Limitation

  (4) A Legion entity must not make more than one application for rebates under this section for any claim period of the Legion entity.

Marginal note:Exports by a charity or a public institution

• 260 (1) Where a person that is a charity or a public institution is the recipient of a supply of property or a service, has paid tax in respect of the supply and has exported the property or service, subject to subsection (2), the Minister shall pay a rebate to the person equal to the amount of tax paid in respect of the supply.

• Marginal note:Application for rebate

  (2) A rebate shall not be paid under subsection (1) to a person in respect of a supply unless the person files an application for the rebate within four years after the end of the fiscal year of the person in which tax in respect of the supply became payable.

Marginal note:Rebate of payment made in error

• 261 (1) Where a person has paid an amount

  • (a) as or on account of, or

  • (b) that was taken into account as,

  tax, net tax, penalty, interest or other obligation under this Part in circumstances where the amount was not payable or remittable by the person, whether the amount was paid by mistake or otherwise, the Minister shall, subject to subsections (2) to (3), pay a rebate of that amount to the person.

• Marginal note:Restriction

  (2) A rebate in respect of an amount shall not be paid under subsection (1) to a person to the extent that

  • (a) the amount was taken into account as tax or net tax for a reporting period of the person and the Minister has assessed the person for the period under section 296;

  • (b) the amount paid was tax, net tax, penalty, interest or any other amount assessed under section 296; or

  • (c) a rebate of the amount is payable under subsection 215.1(1) or (2) or 216(6) or a refund of the amount is payable under section 69, 73, 74 or 76 of the Customs Act because of subsection 215.1(3) or 216(7).

• Marginal note:Restriction — emission allowance

  (2.1) A rebate in respect of an amount paid in respect of a supply of an emission allowance is not to be paid under subsection (1) to a person unless

  • (a) the person paid the amount to the Receiver General; or

  • (b) prescribed circumstances exist or prescribed conditions are met.

• Marginal note:Application for rebate

  (3) A rebate in respect of an amount shall not be paid under subsection (1) to a person unless the person files an application for the rebate within two years after the day the amount was paid or remitted by the person.

• Marginal note:One application per month

  (4) Subject to subsections (5) and (6), not more than one application for a rebate under this section may be made by a person in any calendar month.

• Marginal note:Application by branches and divisions

  (5) Where a person who is entitled to a rebate under this section is engaged in one or more activities in separate branches or divisions and is authorized under subsection 239(2) to file separate returns under Division V in relation to a branch or division,

  • (a) the person may file separate applications under this section in respect of the branch or division; and

  • (b) not more than one application for a rebate under this section in respect of the branch or division may be made by the person in any calendar month.

• Marginal note:Application of s. 239

  (6) Where a person who has not made an application under section 239 is entitled to a rebate under this section and is engaged in one or more activities in separate branches or divisions,

  • (a) section 239 applies to the person as if the references therein to “commercial activities” were references to “activities”, as if the references therein to “returns under this Division” and “returns” were references to “applications under section 261”, and as if the references therein to “registrant” were references to “person”; and

  • (b) where, because of this subsection, the person is authorized under section 239 to file separate applications for rebates under this section in relation to a branch or division, not more than one application for a rebate under this section in respect of the branch or division may be made by the person in any calendar month.

Marginal note:Definitions

• 261.01 (1) The definitions in this subsection apply in this section.

  active member

  active member has the meaning assigned by subsection 8500(1) of the Income Tax Regulations. (participant actif)

  claim period

  claim period has the meaning assigned by subsection 259(1). (période de demande)

  eligible amount

  eligible amount of a pension entity for a claim period of the pension entity means an amount of tax, other than a recoverable amount in respect of the claim period, that

  • (a) became payable by the pension entity during the claim period, or was paid by the pension entity during the claim period without having become payable, in respect of a supply, importation or bringing into a participating province of property or a service that the pension entity acquired, imported or brought into the participating province, as the case may be, for consumption, use or supply in respect of a pension plan, other than an amount of tax that

    • (i) is deemed to have been paid by the pension entity under this Part (other than section 191),

    • (ii) became payable, or was paid without having become payable, by the pension entity at a time when it was entitled to claim a rebate under section 259,

    • (iii) was payable under subsection 165(1), or is deemed under section 191 to have been paid, by the pension entity in respect of a taxable supply to the pension entity of a residential complex, an addition to a residential complex or land if, in respect of that supply, the pension entity was entitled to claim a rebate under section 256.2 or would be so entitled after paying the tax payable in respect of that supply, or

    • (iv) if the pension entity is a selected listed financial institution throughout the claim period, was payable under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1; or

  • (b) is deemed to have been paid by the pension entity under section 172.1 or 172.2 during the claim period. (montant admissible)

  employee PRPP contribution

  employee PRPP contribution means a contribution by an employee of an employer to a pooled registered pension plan that

  • (a) may be deducted by the employee under paragraph 60(i) of the Income Tax Act in computing their income; and

  • (b) is remitted by the employer to the PRPP administrator of the plan under a contract with the PRPP administrator in respect of all or a class of the employees of the employer. (cotisation RPAC de salarié)

  employer contribution

  employer contribution means a contribution by an employer to a pension plan that may be deducted by the employer under paragraph 20(1)(q) of the Income Tax Act in computing its income. (cotisation d’employeur)

  multi-employer plan

  multi-employer plan[Repealed, 2010, c. 12, s. 75]

  non-qualifying pension entity

  non-qualifying pension entity means a pension entity that is not a qualifying pension entity. (entité de gestion non admissible)

  participating employer

  participating employer[Repealed, 2012, c. 31, s. 88]

  pension contribution

  pension contribution[Repealed, 2014, c. 39, s. 97]

  pension entity

  pension entity[Repealed, 2012, c. 31, s. 88]

  pension plan

  pension plan[Repealed, 2012, c. 31, s. 88]

  pension rebate amount

  pension rebate amount of a pension entity of a pension plan for a claim period of the pension entity means the amount determined by the formula

  A × B

  where

  A

  is

  • (a) if the pension plan is a registered pension plan, 33%,

  • (b) if the pension plan is a pooled registered pension plan and either employer contributions or employee PRPP contributions were made to the pension plan in the particular calendar year that is the last calendar year ending on or before the last day of the claim period, the amount (expressed as a percentage) determined by the formula

    33% × (C/D)

    where

    C

    is the total of all amounts, each of which is determined for an employer that made employer contributions to the pension plan in the particular calendar year by the formula

    C₁ + C₂

    where

    C₁

    is the total of all amounts, each of which is an employer contribution made by the employer to the pension plan in the particular calendar year, and

    C₂

    is the total of all amounts, each of which is an employee PRPP contribution made by an employee of the employer to the pension plan in the particular calendar year, and

    D

    is the total of all amounts contributed to the pension plan in the particular calendar year,

  • (c) if the pension plan is a pooled registered pension plan, neither employer contributions nor employee PRPP contributions were made to the pension plan in the particular calendar year that is the last calendar year ending on or before the last day of the claim period and it is reasonable to expect that employer contributions will be made to the pension plan in a following calendar year, the amount (expressed as a percentage) determined for the first calendar year in which employer contributions are reasonably expected to be made to the pension plan following the particular calendar year by the formula

    33% × (E/F)

    where

    E

    is the total of all amounts, each of which is determined for an employer reasonably expected to make employer contributions to the pension plan in that first calendar year by the formula

    E₁ + E₂

    where

    E₁

    is the total of all amounts, each of which is an employer contribution reasonably expected to be made by the employer to the pension plan in that first calendar year, and

    E₂

    is the total of all amounts, each of which is an employee PRPP contribution reasonably expected to be made by an employee of the employer to the pension plan in that first calendar year, and

    F

    is the total of all amounts reasonably expected to be contributed to the pension plan in that first calendar year, or

  • (d) if the pension plan is a pooled registered pension plan and paragraphs (b) and (c) do not apply, 0%; and

  B

  is the amount determined by the formula

  G + H

  where

  G

  is the total of all amounts, each of which is an eligible amount of the pension entity for the claim period that is described in paragraph (a) of the definition eligible amount, and

  H

  is

  • (i) if an application for a rebate under subsection (2) for the claim period is filed in accordance with subsection (3), the total of

    • (A) the total amount indicated on the application under subsection (3.1), and

    • (B) the total of all amounts, each of which is an eligible amount of the pension entity for the claim period that is described in paragraph (b) of the definition eligible amount and in respect of which a portion of the rebate is claimed by the pension entity in accordance with paragraph (3.2)(a),

  • (ii) if an election made under subsection (9) for the claim period is filed in accordance with subsection (10), the total amount indicated on the election in accordance with paragraph (10)(c), or

  • (iii) in any other case, zero. (montant de remboursement de pension)

  provincial pension rebate amount

  provincial pension rebate amount of a pension entity for a claim period of the pension entity in a fiscal year that ends in a taxation year of the pension entity means the amount equal to

  • (a) if the pension entity is a selected listed financial institution throughout the claim period, the total of all amounts, each of which is determined for a participating province by the formula

    A × B × C/D

    where

    A

    is the pension rebate amount of the pension entity for the claim period,

    B

    is the pension entity’s percentage for the participating province for the taxation year for the purposes of C in the formula in subsection 225.2(2),

    C

    is the tax rate for the participating province, and

    D

    is the rate set out in subsection 165(1); and

  • (b) in any other case, zero. (montant de remboursement de pension provincial)

  qualifying employer

  qualifying employer of a pension plan for a calendar year means a participating employer of the pension plan that is a registrant and that

  • (a) if employer contributions were made to the pension plan in the immediately preceding calendar year, made employer contributions to the pension plan in that year; and

  • (b) in any other case, was the employer of one or more active members of the pension plan in the immediately preceding calendar year. (employeur admissible)

  qualifying pension entity

  qualifying pension entity means a pension entity of a pension plan other than a pension plan in respect of which

  • (a) listed financial institutions made 10% or more of the total employer contributions to the pension plan in the last preceding calendar year in which employer contributions were made to the pension plan; or

  • (b) it can reasonably be expected that listed financial institutions will make 10% or more of the total employer contributions to the pension plan in the next calendar year in which employer contributions will be required to be made to the pension plan. (entité de gestion admissible)

  recoverable amount

  recoverable amount in respect of a claim period of a person means an amount of tax

  • (a) that is included in determining an input tax credit of the person for the claim period;

  • (b) for which it can reasonably be regarded that the person has obtained or is entitled to obtain a rebate, refund or remission under any other section of this Act or under any other Act of Parliament; or

  • (c) that can reasonably be regarded as having been included in an amount adjusted, refunded or credited to or in favour of the person for which a credit note referred to in subsection 232(3) has been received by the person or a debit note referred to in that subsection has been issued by the person. (montant recouvrable)

  tax recovery rate

  tax recovery rate of a person for a fiscal year of the person means the lesser of

  • (a) 100%; and

  • (b) the amount (expressed as a percentage) determined by the formula

    (A + B) / C

    where

    A

    is the total of all amounts, each of which is

    • (i) if the person is a selected listed financial institution at any time in the fiscal year, an input tax credit of the person, in respect of an amount of tax under any of subsection 165(1) and sections 212, 218 and 218.01, for a reporting period of the person included in the fiscal year, and

    • (ii) in any other case, an input tax credit of the person for a reporting period of the person included in the fiscal year,

    B

    is the total of all amounts, each of which is

    • (i) if the person is a selected listed financial institution at any time in the fiscal year, a rebate to which the person is entitled under section 259, in respect of an amount of tax under any of subsection 165(1) and sections 212, 218 and 218.01, for a claim period of the person included in the fiscal year, and

    • (ii) in any other case, a rebate to which the person is entitled under section 259 for a claim period of the person included in the fiscal year, and

    C

    is the total of all amounts, each of which is

    • (i) if the person is a selected listed financial institution at any time in the fiscal year, an amount of tax under any of subsection 165(1) and sections 212, 218 and 218.01 that became payable, or was paid without having become payable, by the person during the fiscal year, and

    • (ii) in any other case, an amount of tax that became payable, or was paid without having become payable, by the person during the fiscal year. (taux de recouvrement de taxe)

• Marginal note:Rebate for qualifying pension entities

  (2) If a pension entity is a qualifying pension entity on the last day of a claim period of the pension entity, the Minister shall pay a rebate to the pension entity for the claim period equal to the amount determined by the formula

  A – B

  where

  A

  is the pension rebate amount of the pension entity for the claim period; and

  B

  is the total of all amounts, each of which is an amount

  • (a) determined by the formula

    C × D

    where

    C

    is an amount determined for A in the formula in subsection (5) for a qualifying employer as a consequence of an election made under that subsection for the claim period, and

    D

    is the percentage specified for the qualifying employer in the election, or

  • (b) determined under paragraph (6)(a) in respect of a qualifying employer as a consequence of an election made under subsection (6) for the claim period.

• Marginal note:Application for rebate

  (3) A rebate under subsection (2) shall not be paid for a claim period of a pension entity, unless the pension entity files an application for the rebate within two years after the day that is

  • (a) if the pension entity is a registrant, the day on or before which the pension entity is required to file a return under Division V for the claim period; and

  • (b) in any other case, the last day of the claim period.

• Marginal note:Application for rebate — pension rebate amount election

  (3.1) An application for a rebate under subsection (2) for a claim period of a pension entity shall indicate the total of all amounts, each of which is an eligible amount of the pension entity for the claim period (other than an eligible amount in respect of which a portion of the rebate is claimed by the pension entity in accordance with paragraph (3.2)(a))

  • (a) that is described in paragraph (b) of the definition eligible amount in subsection (1); and

  • (b) that the pension entity elects to include in the determination of the pension rebate amount of the pension entity for the claim period.

• Marginal note:Separate claims for a claim period

  (3.2) If an eligible amount of a pension entity for a claim period of the pension entity is an amount of tax that is deemed to have been paid under subparagraph 172.1(8.01)(b)(i), or to have become payable under section 172.11, the following rules apply:

  • (a) the portion of the rebate under subsection (2) for the claim period that is in respect of the excess pension rebate amount for the claim period in respect of the eligible amount may, despite subsection (4), be claimed in an application separate from the pension entity’s application for the portion of that rebate that is in respect of the remaining pension rebate amount for the claim period provided that the application for the portion of that rebate that is in respect of that excess pension rebate amount is filed by the pension entity after the beginning of the pension entity’s fiscal year that includes the claim period and not later than

    • (i) if the pension entity is a registrant, the day on or before which the pension entity is required to file the return under Division V for the claim period, or

    • (ii) in any other case, the last day of the claim period; and

  • (b) a particular election under subsection (5) or (6) for the claim period that is in respect of the excess pension rebate amount for the claim period in respect of the eligible amount may be made separately from an election under subsection (5) or (6), as the case may be, that is in respect of the remaining pension rebate amount for the claim period provided that the portion of the rebate under subsection (2) for the claim period that is in respect of that excess pension rebate amount is claimed by the pension entity in a separate application that is filed in accordance with paragraph (a) and the particular election is filed at the same time that the application is filed.

• Marginal note:Definitions

  (3.3) The following definitions apply in this subsection and subsection (3.2).

  excess pension rebate amount

  excess pension rebate amount for a claim period of a pension entity means, in respect of an amount of tax deemed to have been paid under subparagraph 172.1(8.01)(b)(i), or to have become payable under section 172.11, by the pension entity during the claim period, the amount that would be the pension rebate amount of the pension entity for the claim period if the amount of tax were the only eligible amount of the pension entity for the claim period. (excédent du montant de remboursement de pension)

  remaining pension rebate amount

  remaining pension rebate amount for a claim period of a pension entity means the amount determined by the formula

  A − B

  where

  A

  is the pension rebate amount of the pension entity for the claim period; and

  B

  is the total of all amounts, each of which is an excess pension rebate amount for the claim period in respect of which a portion of the rebate under subsection (2) for the claim period is claimed by the pension entity in accordance with paragraph (3.2)(a). (solde du montant de remboursement de pension)

• Marginal note:Limitation

  (4) A pension entity shall not make more than one application for a rebate under subsection (2) for any claim period of the pension entity.

• Marginal note:Election to share rebate — engaged exclusively in commercial activities

  (5) If a pension entity of a pension plan is a qualifying pension entity on the last day of a claim period of the pension entity, the pension entity makes an election for the claim period jointly with all persons that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan and each of those qualifying employers is engaged exclusively in commercial activities throughout the claim period, each of those qualifying employers may deduct in determining its net tax for the reporting period that includes the day on which the election is filed with the Minister an amount determined by the formula

  (A + B) × C

  where

  A

  is the pension rebate amount of the pension entity for the claim period;

  B

  is the provincial pension rebate amount of the pension entity for the claim period; and

  C

  is the percentage specified for the qualifying employer in the election.

• Marginal note:Election to share rebate — not engaged exclusively in commercial activities

  (6) If a pension entity of a pension plan is a qualifying pension entity on the last day of a claim period of the pension entity, the pension entity makes an election for the claim period jointly with all persons that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan and any of those qualifying employers is not engaged exclusively in commercial activities throughout the claim period, the following rules apply:

  • (a) an amount (in this subsection referred to as a “shared portion”) shall be determined for the purposes of this section in respect of each of those qualifying employers by the formula

    A × B × C

    where

    A

    is the pension rebate amount of the pension entity for the claim period,

    B

    is the percentage specified for the qualifying employer in the election, and

    C

    is

    • (i) in the case where employer contributions were made to the pension plan in the calendar year that immediately precedes the calendar year that includes the last day of the claim period (in this paragraph referred to as the “preceding calendar year”), the amount determined by the formula

      D/E

      where

      D

      is the total of all amounts, each of which is

      • (A) an employer contribution made by the qualifying employer to the pension plan in the preceding calendar year, or

      • (B) an employee PRPP contribution made by an employee of the qualifying employer to the pension plan in the preceding calendar year, if the qualifying employer made employer contributions to the pension plan in the preceding calendar year, and

      E

      is the total of all amounts, each of which is

      • (A) if the pension plan is a registered pension plan, an employer contribution made to the pension plan in the preceding calendar year, or

      • (B) if the pension plan is a pooled registered pension plan, an amount contributed to the pension plan in the preceding calendar year,

    • (ii) in the case where subparagraph (i) does not apply and one or more qualifying employers of the pension plan was the employer of one or more active members of the pension plan in the preceding calendar year, the amount determined by the formula

      F/G

      where

      F

      is the total number of employees of the qualifying employer in the preceding calendar year who were active members of the pension plan in that year, and

      G

      is the sum of the total number of employees of each of those qualifying employers in the preceding calendar year who were active members of the pension plan in that year, and

    • (iii) in any other case, zero; and

  • (b) each of those qualifying employers may deduct in determining its net tax for the reporting period that includes the day on which the election is filed with the Minister an amount determined by the formula

    (A + B) × C

    where

    A

    is the shared portion in respect of the qualifying employer as determined under paragraph (a),

    B

    is the amount determined by the formula

    D × E × F

    where

    D

    is the provincial pension rebate amount of the pension entity for the claim period,

    E

    is the percentage specified for the qualifying employer in the election, and

    F

    is the amount determined for C in the formula in paragraph (a), and

    C

    is the tax recovery rate of the qualifying employer for the fiscal year of the qualifying employer that ended on or before the last day of the claim period.

• Marginal note:Engaged exclusively in commercial activities

  (7) For the purposes of subsections (5) and (6), a qualifying employer of a pension plan is engaged exclusively in commercial activities throughout a claim period of a pension entity of the pension plan if

  • (a) in the case of a qualifying employer that is a financial institution at any time in the claim period, all of the activities of the qualifying employer for the claim period are commercial activities; and

  • (b) in any other case, all or substantially all of the activities of the qualifying employer for the claim period are commercial activities.

• Marginal note:Form and manner of filing

  (8) An election made under subsection (5) or (6) by a pension entity of a pension plan and the qualifying employers of the pension plan shall

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

  • (b) be filed by the pension entity with the Minister in prescribed manner

    • (i) at the same time the application for the rebate under subsection (2) for the claim period is filed by the pension entity, and

    • (ii) within two years after the day that is

      • (A) if the pension entity is a registrant, the day on or before which the pension entity is required to file a return under Division V for the claim period, and

      • (B) in any other case, the last day of the claim period;

  • (c) in the case of an election under subsection (5), indicate the percentage specified for each qualifying employer, the total of which for all qualifying employers shall not exceed 100%; and

  • (d) in the case of an election under subsection (6), indicate for each qualifying employer the percentage specified for the qualifying employer, which shall not exceed 100%.

• Marginal note:Non-qualifying pension entities

  (9) If a pension entity of a pension plan is a non-qualifying pension entity on the last day of a claim period of the pension entity and the pension entity makes an election for the claim period jointly with all persons that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan, each of those qualifying employers may deduct in determining its net tax for the reporting period that includes the day on which the election is filed with the Minister the amount determined by the formula

  (A + B) × C × D

  where

  A

  is the pension rebate amount of the pension entity for the claim period;

  B

  is the provincial pension rebate amount of the pension entity for the claim period;

  C

  is

  • (a) in the case where employer contributions were made to the pension plan in the calendar year (in this subsection referred to as the “preceding calendar year”) that immediately precedes the calendar year that includes the last day of the claim period, the amount determined by the formula

    E/F

    where

    E

    is the total of all amounts, each of which is

    • (A) an employer contribution made by the qualifying employer to the pension plan in the preceding calendar year, or

    • (B) an employee PRPP contribution made by an employee of the qualifying employer to the pension plan in the preceding calendar year, if the qualifying employer made employer contributions to the pension plan in the preceding calendar year, and

    F

    is the total of all amounts, each of which is

    • (A) if the pension plan is a registered pension plan, an employer contribution made to the pension plan in the preceding calendar year, or

    • (B) if the pension plan is a pooled registered pension plan, an amount contributed to the pension plan in the preceding calendar year,

  • (b) in the case where subparagraph (a) does not apply and one or more qualifying employers of the pension plan was the employer of one or more active members of the pension plan in the preceding calendar year, the amount determined by the formula

    G/H

    where

    G

    is the total number of employees of the qualifying employer in the preceding calendar year who were active members of the pension plan in that year, and

    H

    is the sum of the total number of employees of each of those qualifying employers in the preceding calendar year who were active members of the pension plan in that year, and

  • (c) in any other case, zero; and

  D

  is the tax recovery rate of the qualifying employer for the fiscal year of the qualifying employer that ended on or before the last day of the claim period.

• Marginal note:Form and manner of filing

  (10) An election made under subsection (9) for a claim period of a pension entity shall

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

  • (b) be filed by the pension entity with the Minister in prescribed manner within two years after the day that is

    • (i) if the pension entity is a registrant, the day on or before which the pension entity is required to file a return under Division V for the claim period, and

    • (ii) in any other case, the last day of the claim period; and

  • (c) indicate the total of all amounts, each of which is an eligible amount of the pension entity for the claim period

    • (i) that is described in paragraph (b) of the definition eligible amount in subsection (1), and

    • (ii) that the pension entity elects to include in the determination of the pension rebate amount of the pension entity for the claim period.

• Marginal note:Limitation

  (11) Not more than one election under subsection (9) shall be filed for a claim period of a pension entity.

• Marginal note:Joint and several liability

  (12) If, in determining the net tax for a reporting period of a qualifying employer of a pension plan, the qualifying employer deducts an amount under subsection (5), paragraph (6)(b) or subsection (9) and either the qualifying employer or the pension entity of the pension plan knows or ought to know that the qualifying employer is not entitled to the amount or that the amount exceeds the amount to which the qualifying employer is entitled, the qualifying employer and the pension entity are jointly and severally, or solidarily, liable to pay the amount or excess to the Receiver General.