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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 IInterpretation (continued)

Consideration (continued)

Marginal note:Meaning of selected qualifying employer

  •  (1) For the purposes of this section, selected qualifying employer has the meaning assigned by subsection 172.1(9).

  • Marginal note:Election for nil consideration

    (2) For the purposes of this Part, if a participating employer of a pension plan elects jointly with a pension entity of the pension plan, every taxable supply made by the participating employer to the pension entity at a time when the election is in effect is deemed to have been made for no consideration.

  • Marginal note:Election for nil consideration — master pension entity

    (2.1) A person that is a participating employer of a pension plan and a master pension entity of the pension plan may jointly make an election in respect of taxable supplies made by the person to the master pension entity if

    A ≥ 90%

    where

    A
    is the total of all percentages, each of which is a master pension factor in respect of a pension plan of which the person is a participating employer for the fiscal year of the master pension entity that includes the day on which the election becomes effective.
  • Marginal note:Effect of subsection (2.1) election

    (2.2) For the purposes of this Part, every taxable supply made by a participating employer to a master pension entity at a time when a joint election made under subsection (2.1) by the participating employer and the master pension entity is in effect is deemed to have been made for no consideration.

  • Marginal note:Non-application

    (3) Subsection (2) does not apply to

    • (a) a supply deemed under section 172.1 to have been made;

    • (b) a supply of property or a service that is not acquired by a pension entity of a pension plan for consumption, use or supply by the pension entity in the course of pension activities (as defined in subsection 172.1(1)) in respect of the pension plan;

    • (c) a supply made by a participating employer of a pension plan to a pension entity of the pension plan of all or part of property or a service if, at the time the participating employer acquires the property or service, the participating employer is a selected qualifying employer of the pension plan;

    • (d) a supply made by a participating employer of a pension plan to a pension entity of the pension plan of property or a service if, at the time the participating employer consumes or uses an employer resource (as defined in subsection 172.1(1)) of the participating employer for the purpose of making the supply, the participating employer is a selected qualifying employer of the pension plan; or

    • (e) a supply made in prescribed circumstances or made by a prescribed person.

  • Marginal note:Non-application of subsection (2.2)

    (3.1) Subsection (2.2) does not apply to

    • (a) a supply deemed under section 172.1 to have been made;

    • (b) a supply of property or a service that is not acquired by a master pension entity of a pension plan for consumption, use or supply by the master pension entity in the course of pension activities (as defined in subsection 172.1(1)) in respect of the pension plan;

    • (c) a supply made by a participating employer of a pension plan to a master pension entity of the pension plan of all or part of property or a service if, at the time the participating employer acquires the property or service, the master pension entity is a master pension entity of one or more pension plans of which the participating employer is a selected qualifying employer;

    • (d) a supply made by a participating employer of a pension plan to a master pension entity of the pension plan of property or a service if, at the time the participating employer consumes or uses an employer resource (as defined in subsection 172.1(1)) of the participating employer for the purpose of making the supply, the master pension entity is a master pension entity of one or more pension plans of which the participating employer is a selected qualifying employer; or

    • (e) a supply made in prescribed circumstances or made by a prescribed person.

  • Marginal note:Joint revocation

    (4) The persons that have jointly made an election under subsection (2) or (2.1) may jointly revoke the election.

  • Marginal note:Form of election and revocation

    (5) An election under subsection (2) or (2.1) and a revocation of an election under subsection (4) must

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

    • (b) specify the day on which the election or the revocation is to become effective, which must be the first day of a fiscal year of the participating employer; and

    • (c) be filed by the participating employer with the Minister in prescribed manner on or before the day that is the day on which the election or the revocation is to become effective or any later day that the Minister may allow.

  • Marginal note:Cessation

    (6) An election made jointly under subsection (2) or (2.1) by a person that is a participating employer of a pension plan and by another person that is a pension entity of the pension plan or a master pension entity of the pension plan ceases to have effect on the earliest of

    • (a) the day on which the person ceases to be a participating employer of the pension plan,

    • (b) the day on which the other person ceases to be a pension entity of the pension plan or a master pension entity of the pension plan, as the case may be,

    • (c) the day on which a joint revocation of the election under subsection (4) becomes effective,

    • (d) the day specified in a notice of revocation of the election sent to the person under subsection (9), and

    • (e) in the case of an election under subsection (2.1), the first day of a fiscal year of the other person for which

      A < 90%

      where

      A
      is the total of all percentages, each of which is a master pension factor in respect of a pension plan of which the person is a participating employer for the fiscal year.
  • Marginal note:Notice of intent

    (7) If an election made jointly under subsection (2) or (2.1) by a participating employer of a pension plan and by a pension entity of the pension plan or a master pension entity of the pension plan is in effect at any time in a fiscal year of the participating employer and if the participating employer fails to account for, as and when required under this Part, any tax deemed to have been collected by the participating employer on the last day of the fiscal year under any of subsections 172.1(5) to (6.1) in respect of the pension plan, the Minister may send a notice in writing (in this section referred to as a “notice of intent”) to the participating employer and to the pension entity or the master pension entity, as the case may be, that the Minister proposes to revoke the election as of the first day of the fiscal year.

  • Marginal note:Representations to Minister

    (8) Upon receipt of a notice of intent, a participating employer must establish to the satisfaction of the Minister that the participating employer did not fail to account for, as and when required under this Part, tax deemed to have been collected by the participating employer under any of subsections 172.1(5) to (6.1) in respect of the pension plan.

  • Marginal note:Notice of revocation

    (9) If, after 60 days after the day on which the notice of intent was sent by the Minister to the participating employer, the Minister is not satisfied that the participating employer did not fail to account for, as and when required under this Part, tax deemed to have been collected by the participating employer on the last day of a particular fiscal year under any of subsections 172.1(5) to (6.1) in respect of the pension plan, the Minister may send a notice in writing (in this section referred to as a “notice of revocation”) to the participating employer and to the pension entity or master pension entity with which the participating employer made the election that the election is revoked as of the day specified in the notice of revocation, and that day is not to be earlier than the day specified in the notice of intent and must be the first day of any particular fiscal year.

  • Marginal note:Revocation — effect

    (10) For the purposes of this Part, an election under subsection (2) or (2.1) that has been revoked by the Minister under subsection (9) is deemed never to have been in effect on any day on or after the day specified in the notice of revocation.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 28
  • 2013, c. 33, s. 43
  • 2017, c. 33, s. 111

Marginal note:Tax refund discounts

 For the purposes of this Part, where a discounter (within the meaning of the Tax Rebate Discounting Act) pays an amount to a person to acquire from the person a right to a refund of tax (within the meaning of that Act), notwithstanding section 139, the discounter shall be deemed to have made

  • (a) a taxable supply of a service for consideration equal to the lesser of

    • (i) 2/3 of the amount, if any, by which the amount of the refund exceeds the amount paid by the discounter to the person to acquire the right, and

    • (ii) $30; and

  • (b) a separate supply of a financial service for consideration equal to the amount by which the amount of the refund exceeds the total of the amount paid by the discounter to the person to acquire the right and the amount determined under paragraph (a).

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
 
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