Excise Tax Act

Meaning of selected qualifying employer

• 157 (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: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:Joint revocation

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

• Marginal note:Form of election and revocation

  (5) An election under subsection (2) 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 under subsection (2) made jointly by a participating employer of a pension plan and a pension entity of the pension plan ceases to have effect on the earliest of

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

  • (b) the day on which the pension entity ceases to be a pension entity of the pension plan,

  • (c) the day on which a joint revocation of the election by the participating employer and the pension entity becomes effective, and

  • (d) the day specified in a notice of revocation of the election sent to the participating employer under subsection (9).

• Marginal note:Notice of intent

  (7) If an election made jointly under subsection (2) by a participating employer of a pension plan and a 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 subsection 172.1(5) or (6) 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 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 subsection 172.1(5) or (6) 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 subsection 172.1(5) or (6) 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 of the pension plan 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) 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.