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Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations (SOR/2001-171)

Regulations are current to 2020-10-05 and last amended on 2019-03-04. Previous Versions

PART 2Percentage for a Participating Province (continued)

Investment Plans (continued)

Pension Plans and Private Investment Plans (continued)

Marginal note:Percentage — employee benefit plans

  •  (1) If a selected listed financial institution is a private investment plan that is an employee life and health trust or a trust governed by an employee benefit plan, an employee trust or a registered supplementary unemployment benefit plan in a particular period in which a fiscal year of the financial institution ends, the financial institution’s percentage for a participating province and for the particular period is

    • (a) in the case of any one participating province (in this section referred to as the “selected province”) having the highest tax rate on the first day of the fiscal year, the percentage determined by the formula

      A/B

      where

      A
      is the total of all amounts, each of which is determined for an attribution point in respect of the financial institution for the particular period by the formula

      (A1/A2) + [A3 × (A1/A4)] + [(1 – A3) – (A4/A2)]

      where

      A1
      is the total number of plan members of the investment plan that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, are resident in the selected province on the attribution point,
      A2
      is the total number of plan members of the investment plan other than plan members of the investment plan that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, are not resident in Canada on the attribution point,
      A3
      is the lesser of 0.1 and the amount determined by the formula

      C/D

      where

      C
      is the total number of plan members of the investment plan in respect of each of which the financial institution, on December 31 of the calendar year in which the fiscal year ends,
      • (i) does not know whether or not the plan member is resident in Canada on the attribution point, or

      • (ii) knows that the plan member is resident in Canada on the attribution point but does not know the province in which the plan member is resident on the attribution point, and

      D
      is the amount determined for A2, and
      A4
      is the total number of plan members of the investment plan resident in Canada on the attribution point in respect of each of which the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, the province in which the plan member is resident on the attribution point, and
      B
      is the number of attribution points in respect of the financial institution for the particular period;
    • (b) in the case of a participating province (other than the selected province) in which the financial institution has a permanent establishment in the particular period, the percentage determined by the formula

      A/B

      where

      A
      is the total of all amounts, each of which is determined for an attribution point in respect of the financial institution for the particular period by the formula

      (A1/A2) + [A3 × (A1/A4)]

      where

      A1
      is the total number of plan members of the investment plan that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, are resident in the participating province on the attribution point,
      A2
      is the total number of plan members of the investment plan other than plan members of the investment plan that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, are not resident in Canada on the attribution point,
      A3
      is the lesser of 0.1 and the amount determined by the formula

      C/D

      where

      C
      is the total number of plan members of the investment plan in respect of each of which the financial institution, on December 31 of the calendar year in which the fiscal year ends,
      • (i) does not know whether or not the plan member is resident in Canada on the attribution point, or

      • (ii) knows that the plan member is resident in Canada on the attribution point but does not know the province in which the plan member is resident on the attribution point, and

      D
      is the amount determined for A2, and
      A4
      is the total number of plan members of the investment plan resident in Canada on the attribution point in respect of each of which the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, the province in which the plan member is resident on the attribution point, and
      B
      is the number of attribution points in respect of the financial institution for the particular period; and
    • (c) in the case of any other participating province, nil.

  • Marginal note:Attribution of plan members to a participating province

    (2) For the purposes of subsection (1), if, for any attribution point in respect of an investment plan for a particular period in which a fiscal year of the investment plan ends, the total number of plan members (in this subsection referred to as the “known members”) of the investment plan in respect of each of which the investment plan knows, on December 31 of the calendar year in which the fiscal year ends, whether or not the plan member is resident in Canada on the attribution point and, in the case of plan members resident in Canada, the province in which the plan member is resident on the attribution point is less than 50% of the total number of plan members of the investment plan on the attribution point, the following rules apply:

    • (a) the plan members of the investment plan, other than the known members, are deemed to be resident on the attribution point in Canada and in the selected province referred to in subsection (1) for the particular period; and

    • (b) the investment plan is deemed to know on December 31 of the calendar year that the plan members of the investment plan, other than the known members, are, on the attribution point, resident in Canada and in the selected province.

  • SOR/2013-71, s. 2

Marginal note:Percentage — mixed pension plans

 If a selected listed financial institution is an investment plan and a pension entity of a pension plan, part of which is a defined contribution pension plan and the remaining part of which is a defined benefits pension plan, in a particular period in which a fiscal year of the financial institution ends, the financial institution’s percentage for a participating province and for the particular period is the amount determined by the formula

[A × (B/C)] + [D × (C – B)/C]

where

A
is the financial institution’s percentage determined for the participating province and for the particular period by applying section 35 to the part of the pension plan that is the defined contribution pension plan;
B
is the value of the assets of the defined contribution pension plan held by pension entities of the pension plan on a particular attribution point in respect of the financial institution for the particular period that is the last such attribution point required to be used in the determination of the percentage referred to in the description of A, or such other amount that the Minister may allow on application by the investment plan;
C
is the total value of the assets of the pension plan held by pension entities of the pension plan on the particular attribution point, or such other amount that the Minister may allow on application by the investment plan; and
D
is the financial institution’s percentage determined for the participating province and for the particular period by applying section 36 to the part of the pension plan that is the defined benefits pension plan.
  • SOR/2013-71, s. 2

Divided Businesses

Marginal note:Agreement with the Minister — weighted average

 If one or more parts of the business of a particular selected listed financial institution, other than a financial institution described in any of sections 24 to 26, for a particular period consist of operations normally conducted by any of the types of financial institutions referred to in any of sections 24 to 26 and 29 to 38, the particular financial institution and the Minister may agree that the particular financial institution’s percentage for a participating province and for the particular period is the weighted average of the percentages determined

  • (a) by applying to each of those parts of the business whichever of those sections refers to the type of financial institution that normally conducts the operations comprising that part of the business; and

  • (b) by applying section 23 to the remainder of the business that does not consist of operations normally conducted by any of the types of financial institutions referred to in those sections.

  • SOR/2013-71, s. 2

PART 3Prescribed Amounts of Tax

Marginal note:Amounts not included in net tax adjustment formula

 For the purposes of paragraph (a) of the description of A and paragraph (a) of the description of F in subsection 225.2(2) of the Act, the following amounts are prescribed amounts of tax:

  • (a) any amount of tax that became payable by an insurer, or that was paid by the insurer without having become payable, in respect of property or services acquired, imported or brought into a participating province exclusively and directly for consumption, use or supply in the course of investigating, settling or defending a claim arising under an insurance policy that is not in the nature of accident and sickness insurance or life insurance;

  • (b) any amount of tax that became payable by a selected listed financial institution, or that was paid by the financial institution without having become payable, in respect of a supply or importation of property referred to in subsection 259.1(2) of the Act;

  • (c) any amount of tax that became payable by a stratified investment plan, or that was paid by a stratified investment plan without having become payable, in respect of property or a service, to the extent that the property or service was acquired, imported or brought into a participating province for consumption, use or supply in the course of the activities relating to a provincial series of the stratified investment plan;

  • (d) any particular amount of tax that became payable or was paid by a selected listed financial institution under any of subsection 165(2) and section 212.1 of the Act in respect of a supply or importation of property or a service in respect of which tax under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act became payable by the financial institution, or was paid by the financial institution without having become payable, in a reporting period of the financial institution that ends before July 2010, provided that the particular amount of tax

    • (i) is payable as a consequence of the application of Part 3 of the New Harmonized Value-added Tax System Regulations or Divisions 2 and 3 of Part 9 of the New Harmonized Value-added Tax System Regulations, No. 2, or

    • (ii) is payable at the rate of 10% as a consequence of the application of the Nova Scotia HST Regulations, 2010; and

  • (e) any particular amount of tax that became payable or was paid by a selected listed financial institution under any of subsection 165(2) and section 212.1 of the Act in respect of a supply or importation of property or a service in respect of which tax under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act became payable by the financial institution, or was paid by the financial institution without having become payable, in a reporting period of the financial institution that ends before April 2013, provided that the particular amount of tax is payable as a consequence of the application of Part 3.1 of the New Harmonized Value-added Tax System Regulations or Divisions 2 and 3 of Part 9.1 of the New Harmonized Value-added Tax System Regulations, No. 2.

  • SOR/2013-71, s. 2
  • SOR/2013-197, s. 1
 
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