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

Marginal note:Tax adjustment transfer election

• 55 (1) An investment plan that is a selected listed financial institution and the manager of the investment plan may jointly elect to transfer, in accordance with subsection (2), the investment plan’s adjustments to net tax under subsection 225.2(2) of the Act to the manager.

• Marginal note:Effect of election

  (2) If a manager has made joint elections with one or more investment plans (each of which is referred to in this subsection as a “qualifying investment plan”) under subsection (1) that are in effect at any time in a particular reporting period of the manager (in this subsection referred to as the “manager’s reporting period”), the following rules apply:

  • (a) for each qualifying investment plan, any amount of tax under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act is prescribed for the qualifying investment plan for the purposes of paragraph (a) of the description of A, and any amount of tax under any of subsection 165(2) and sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act is prescribed for the qualifying investment plan for the purposes of paragraph (a) of the description of F in subsection 225.2(2) of the Act, if the amount of tax

    • (i) is in respect of a supply made by the manager to the qualifying investment plan, and

    • (ii) became payable by the qualifying investment plan or was paid by the qualifying investment plan without having become payable at a particular time that is

      • (A) during the manager’s reporting period,

      • (B) at a time when an election under subsection (1) is in effect between the qualifying investment plan and the manager, and

      • (C) at a time when no election under subsection 53(1) is in effect between the manager and the qualifying investment plan;

  • (b) for each qualifying investment plan,

    • (i) if an election under subsection (1) and an election under subsection 53(1) are both in effect between the qualifying investment plan and the manager throughout the reporting period (referred to in this subsection as the “real reporting period”) of the qualifying investment plan in which the manager’s reporting period ends, subsection 225.2(2) of the Act does not apply for the purpose of determining the net tax of the qualifying investment plan for the real reporting period, and

    • (ii) if subparagraph (i) does not apply and an election under subsection 53(1) is in effect at any time in the real reporting period, the positive or negative amount determined by the following formula is a prescribed amount for the purpose of the description of G in subsection 225.2(2) of the Act for the real reporting period

      –1 × A

      where

      A

      is

      • (A) if the manager is a selected listed financial institution throughout the manager’s reporting period, the amount determined under paragraph (c) and subsection (3) in respect of the manager’s reporting period, and

      • (B) in any other case, the amount determined under subsection 225.2(2) of the Act, as adapted by paragraph (d), in respect of the manager’s reporting period;

  • (c) if the manager is a selected listed financial institution throughout the manager’s reporting period, the total of all particular amounts is a prescribed amount for the manager’s reporting period for the purpose of the description of G in subsection 225.2(2) of the Act, each of those particular amounts being the positive amount that a qualifying investment plan would be required to add, or the negative amount (in subsection (3) referred to as the “negative adjustment amount”) that the qualifying investment plan would be able to deduct, in determining its net tax under subsection 225.2(2) of the Act, having regard to any applicable adaptations made to that subsection under these Regulations, for a particular reporting period of the qualifying investment plan if

    • (i) the beginning of the particular reporting period coincided with the later of the beginning of the manager’s reporting period and the day, if any, in the manager’s reporting period on which an election under subsection (1) between the manager and the qualifying investment plan becomes effective,

    • (ii) the end of the particular reporting period coincided with the earlier of the end of the manager’s reporting period and the day, if any, in the manager’s reporting period on which an election under subsection (1) between the manager and the qualifying investment plan ceases to have effect,

    • (iii) paragraphs (a) and (b) did not apply in respect of the particular reporting period, and

    • (iv) if, at any time in the particular reporting period, no election under subsection 53(1) is in effect between the manager and the qualifying investment plan, an amount of tax that became payable by the qualifying investment plan, or that was paid by the qualifying investment plan without having become payable, at that time is included in determining that positive or negative amount only if the amount of tax is in respect of a supply made by the manager to the qualifying investment plan; and

  • (d) if the manager is not a selected listed financial institution throughout the manager’s reporting period, subsection 225.2(2) of the Act is adapted in respect of the manager’s reporting period as follows:

    • (2) In determining the net tax for a reporting period of a manager (in this subsection referred to as the “manager’s reporting period”) that has made joint elections with one or more investment plans (each of which is referred to in this subsection as a “qualifying investment plan”) under subsection 55(1) of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations that are in effect at any time in the manager’s reporting period, the manager shall add all positive amounts, and may, if the manager has paid or credited the negative amount to the qualifying investment plan, deduct any such negative amounts, each of which is the positive amount that a qualifying investment plan would be required to add, or the negative amount that the qualifying investment plan would be able to deduct, in determining its net tax under this subsection, having regard to any applicable adaptations to this subsection made under those Regulations, for a particular reporting period of the qualifying investment plan if

      • (a) the beginning of the particular reporting period coincided with the later of the beginning of the manager’s reporting period and the day, if any, in the manager’s reporting period on which an election under subsection 55(1) of those Regulations between the manager and the qualifying investment plan becomes effective;

      • (b) the end of the particular reporting period coincided with the earlier of the end of the manager’s reporting period and the day, if any, in the manager’s reporting period on which an election under subsection 55(1) of those Regulations between the manager and the qualifying investment plan ceases to have effect;

      • (c) paragraphs 55(2)(a) and (b) of those Regulations did not apply in respect of the particular reporting period; and

      • (d) if at any time in the particular reporting period of the qualifying investment plan no election under subsection 53(1) of those Regulations is in effect between the manager and the qualifying investment plan, an amount of tax that became payable by the qualifying investment plan, or that was paid by the qualifying investment plan without having become payable, at that time is included in determining the positive or negative amount only if the amount of tax is in respect of a supply made by the manager to the qualifying investment plan.

• Marginal note:Restriction

  (3) Despite paragraph (2)(c), a negative adjustment amount in respect of an investment plan is not to be included in determining, in accordance with that paragraph, a prescribed amount in respect of a reporting period of a manager for the purpose of the description of G in subsection 225.2(2) of the Act unless the manager has paid or credited the negative adjustment amount to the investment plan.

• Marginal note:Form and filing of election

  (4) An election made under subsection (1) by a manager and an investment plan is to

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

  • (b) set out the first day on which the election is to be in effect; and

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

• Marginal note:Cessation

  (5) An election made under subsection (1) by a particular person that is a manager and another person that is an investment plan ceases to have effect on the earliest of

  • (a) the day on which the particular person ceases to be the manager of the other person,

  • (b) the day on which the other person ceases to be an investment plan or a selected listed financial institution, and

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

• Marginal note:Revocation

  (6) If a manager and an investment plan have jointly made an election under subsection (1), the manager or the investment plan may revoke the election, effective on a particular day, by filing in prescribed manner with the Minister a notice of revocation in prescribed form containing prescribed information not later than the particular day or any later day that the Minister may allow.

• Marginal note:Revocation — restriction

  (7) A revocation made by a person under subsection (6) of a joint election is effective only if the person notifies, before the day on which the revocation is to come into effect, the other person that made the joint election.

• Marginal note:Joint and several liability

  (8) If an election made under subsection (1) by a manager and an investment plan is in effect at any time in a reporting period of the manager, the manager and the investment plan are jointly and severally, or solidarily, liable for the net tax for the reporting period and any interest or penalties in respect of that net tax.

Marginal note:Requirement to register

• 56 (1) If a selected listed financial institution makes an election under either of sections 53 and 55 that comes into effect on a particular day and no election made by the financial institution under subsection 54(1) is in effect on the particular day,

  • (a) for the purposes of subsection 240(1.2) of the Act, the financial institution is a prescribed financial institution; and

  • (b) for the purposes of paragraph 240(2.1)(a.1) of the Act, the prescribed day is the particular day.

• Marginal note:Requirement to register

  (2) If, under any of subsection 54(3), (4) and (14), a selected listed financial institution withdraws from or revokes an election made under subsection 54(1) by the financial institution and an election made by the financial institution under either of sections 53 and 55 is in effect on the particular day that the withdrawal or revocation comes into effect,

  • (a) for the purposes of subsection 240(1.2) of the Act, the financial institution is a prescribed financial institution; and

  • (b) for the purposes of paragraph 240(2.1)(a.1) of the Act, the prescribed day is the particular day.

• Marginal note:Requirement to register as a group

  (3) If two or more selected listed financial institutions and a manager of those financial institutions have jointly made an election under subsection 54(1) that comes into effect on a particular day,

  • (a) for the purposes of subsection 240(1.3) of the Act, those financial institutions are a prescribed group;

  • (b) for the purposes of subsection 240(1.3)(b) of the Act, the manager is a person that is prescribed in respect of the prescribed group referred to in paragraph (a) and the prescribed day is the day that is 30 days after the particular day;

  • (c) for the purposes of subsection 242(1.2) of the Act, a prescribed circumstance is

    • (i) the cessation of the joint election under paragraph 54(10)(a) on a particular day, if no election by the manager and two or more of those financial institutions under subsection 54(1) is deemed to come into effect on the particular day under paragraph 54(10)(b), or

    • (ii) the cessation of the joint election under paragraph 54(11)(a) or (13)(b); and

  • (d) for the purposes of subsection 242(1.4) of the Act, a prescribed circumstance in respect of one of those financial institutions is the withdrawal of the financial institution from the joint election under subsection 54(3) or (4).

New Investment Plans

Marginal note:First fiscal year — deemed fiscal and taxation years

57 For the purposes of these Regulations and for the purposes of subsection 225.2(2) and sections 228 and 237 of the Act, as adapted by these Regulations, if, in the absence of this section, a particular fiscal year is the first fiscal year of an investment plan that is a selected listed financial institution, the following rules apply:

• (a) the investment plan is deemed to have

  • (i) another fiscal year that immediately precedes the particular fiscal year, and

  • (ii) another taxation year that immediately precedes the taxation year of the investment plan in which the particular fiscal year ends; and

• (b) the other fiscal year referred to in subparagraph (a)(i) is deemed to end in the other taxation year referred to in subparagraph (a)(ii).

Marginal note:New non-stratified investment plan — attribution point

• 58 (1) Despite the meaning of attribution point as set out in subsections 16(1) and 18(3), if units of a non-stratified investment plan are issued, distributed or offered for sale in a particular fiscal year that ends in a particular taxation year of the investment plan and, immediately before the issuance, distribution or offering for sale, no units of the investment plan are issued and outstanding, for the purposes of Part 2 and this Part the following rules apply:

  • (a) attribution point in respect of the investment plan for the taxation year of the investment plan that precedes the particular taxation year means the day that is the earlier of

    • (i) the day that is

      • (A) one of the following days, as determined by the investment plan:

        • (I) the particular day that is 91 days after the first day (referred to in this clause as the “issuance date”) in the particular fiscal year on which units of the investment plan are issued and before which no units of the investment plan are issued and outstanding,

        • (II) the last business day in the calendar month that includes the particular day described in subclause (I),

        • (III) the particular day that is 91 days after the earlier of

          1 the first day after the issuance date on which units of the investment plan are distributed or offered for sale, and

          2 the day that is 60 days after the issuance date, and

        • (IV) the last business day of the calendar month that includes the particular day described in subclause (III), or

      • (B) in the absence of a determination under clause (A) by the investment plan, the particular day described in subclause (A)(I), and

    • (ii) the day preceding the day on which a plan merger of the investment plan and one or more other investment plans first occurs; and

  • (b) attribution point in respect of the investment plan for the particular taxation year means the particular day that is the attribution point in respect of the investment plan for the taxation year of the investment plan that precedes the particular taxation year, as determined in accordance with paragraph (a), if the particular day is after September 30 of the calendar year in which the particular fiscal year ends.

• Marginal note:New series — attribution point

  (2) Despite the meaning of attribution point as set out in subsections 16(1) and 18(3), if units of a series of an investment plan are issued, distributed or offered for sale in a particular fiscal year that ends in a particular taxation year of the investment plan and, immediately before the issuance, distribution or offering for sale, no units of the series are issued and outstanding, for the purposes of Part 2 and this Part the following rules apply:

  • (a) attribution point in respect of the series for the taxation year of the investment plan that precedes the particular taxation year means the day that is the earlier of

    • (i) the day that is

      • (A) one of the following days, as determined by the investment plan:

        • (I) the particular day that is 91 days after the first day (referred to in this clause as the “issuance date”) in the particular fiscal year on which units of the series are issued and before which no units of the series are issued and outstanding,

        • (II) the last business day in the calendar month that includes the particular day described in subclause (I),

        • (III) the particular day that is 91 days after the earlier of

          1 the first day after the issuance date on which units of the series are distributed or offered for sale, and

          2 the day that is 60 days after the issuance date, and

        • (IV) the last business day of the calendar month that includes the particular day described in subclause (III), or

      • (B) in the absence of a determination under clause (A) by the investment plan, the particular day described in subclause (A)(I), and

    • (ii) the day preceding the day on which a plan merger of the investment plan and one or more other investment plans first occurs; and

  • (b) attribution point in respect of the series for the particular taxation year means the particular day that is the attribution point in respect of the series for the taxation year of the investment plan that precedes the particular taxation year, as determined in accordance with paragraph (a), if the particular day is after September 30 of the calendar year in which the particular fiscal year ends.