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

Regulations are current to 2022-09-22 and last amended on 2019-03-04. Previous Versions

PART 5Investment Plans (continued)

New Investment Plans (continued)

Marginal note:New series — percentage

 If units of a series (other than an exchange-traded series) of an investment plan that is a selected listed financial institution are issued, distributed or offered for sale in a particular fiscal year that ends in a particular taxation year of the investment plan, if immediately before the issuance, distribution or offering for sale no units of the series are issued and outstanding, if no election is in effect under section 49 or 64 in respect of the series throughout the particular fiscal year and if paragraph 62(d) does not apply to the series, the following rules apply:

  • (a) for the purposes of this section,

    • (i) the particular attribution point is the attribution point in respect of the series for the taxation year of the investment plan that precedes the particular taxation year (in this section referred to as “the preceding taxation year”), and

    • (ii) the particular calendar year is the calendar year that includes the particular attribution point;

  • (b) if the investment plan has elected in prescribed form containing prescribed information to have this paragraph apply to the series, subsections 30(1) and (2) apply for the purpose of determining the investment plan’s percentage for the series, for a participating province and for the preceding taxation year, except that the description of C in paragraph 30(1)(a) and the description of C in paragraph 30(1)(b) are each to be read without reference to subparagraph (ii);

  • (c) if paragraph (b) does not apply,

    • (i) for the purposes of these Regulations and the description of A6 in subsection 225.2(2) of the Act, as adapted by subsection 48(1), and despite sections 19 and 30, the investment plan’s percentage for the preceding taxation year, for the series and for any one participating province (in this paragraph referred to as the “selected province”) having the highest tax rate on the first day of the particular fiscal year is the percentage determined by the formula

      (A/B) + (C × A/D) + [(1 – C) – (D/B)]

      where

      A
      is the total of all amounts, each of which is the total value of the units of the series held, on the particular attribution point, by a person that the investment plan knows, on December 31 of the particular calendar year, is resident in the selected province on the particular attribution point,
      B
      is the total value, on the particular attribution point, of the units of the series other than units held, on the particular attribution point, by a person that the investment plan knows, on December 31 of the particular calendar year, is not resident in Canada on the particular attribution point,
      C
      is the lesser of 0.1 and the amount determined by the formula

      C1/C2

      where

      C1
      is the total of all amounts, each of which is the total value of the units of the series held, on the particular attribution point, by a person in respect of which the investment plan does not know, on December 31 of the particular calendar year, whether or not the person is resident in Canada on the particular attribution point or, in the case of persons resident in Canada, the province in which the person is resident on the particular attribution point, and
      C2
      is the amount determined for B, and
      D
      is the total of all amounts, each of which is the total value of the units of the series held, on the particular attribution point, by a person resident in Canada on the particular attribution point and in respect of which the investment plan knows, on December 31 of the particular calendar year, the province in which the person is resident on the particular attribution point,
    • (ii) for the purposes of these Regulations and the description of A6 in subsection 225.2(2) of the Act, as adapted by subsection 48(1), and despite sections 19 and 30, the investment plan’s percentage for the preceding taxation year, for the series and for a participating province (other than the selected province) in which the investment plan has a permanent establishment in the particular taxation year is the percentage determined by the formula

      (A/B) + (C × A/D)

      where

      A
      is the total of all amounts, each of which is the total value of the units of the series held, on the particular attribution point, by a person that the investment plan knows, on December 31 of the particular calendar year, is resident in the participating province on the particular attribution point,
      B
      is the total value, on the particular attribution point, of the units of the series other than units held, on the particular attribution point, by a person that the investment plan knows, on December 31 of the particular calendar year, is not resident in Canada on the particular attribution point,
      C
      is the lesser of 0.1 and the amount determined by the formula

      C1/C2

      where

      C1
      is the total of all amounts, each of which is the total value of the units of the series held, on the particular attribution point, by a person in respect of which the investment plan does not know, on December 31 of the particular calendar year, whether or not the person is resident in Canada on the particular attribution point or, in the case of persons resident in Canada, the province in which the person is resident on the particular attribution point, and
      C2
      is the amount determined for B, and
      D
      is the total of all amounts, each of which is the total value of the units of the series held, on the particular attribution point, by a person resident in Canada on the particular attribution point and in respect of which the investment plan knows, on December 31 of the particular calendar year, the province in which the person is resident on the particular attribution point, and
    • (iii) for the purposes of subparagraphs (i) and (ii), if, for the particular attribution point, the total of all amounts — each of which is the total value of the particular units of the series held on the particular attribution point by a person in respect of which the investment plan knows, on December 31 of the particular calendar year, whether or not the person is resident in Canada on the particular attribution point and knows, in the case of persons resident in Canada, the province in which the person is resident on the particular attribution point — is less than 50% of the total value of the units of the series on the particular attribution point,

      • (A) the units of the series, other than the particular units, are deemed to be held on the particular attribution point by a particular person and not by any other person,

      • (B) the particular person is deemed to be resident on the particular attribution point in Canada and in the selected province referred to in subparagraph (i) for the series and for the preceding taxation year, and

      • (C) the investment plan is deemed to know on December 31 of the particular calendar year that the particular person is, on the particular attribution point, resident in Canada and in the selected province; and

  • (d) if the particular attribution point is after September 30 of the calendar year in which the particular fiscal year ends, for the purposes of these Regulations and the description of A6 in subsection 225.2(2) of the Act, as adapted by subsection 48(1), and despite sections 19 and 30, the investment plan’s percentage for the series, for a participating province and for the particular taxation year is equal to the investment plan’s percentage for the series, for the participating province and for the preceding taxation year.

  • SOR/2013-197, s. 8

Marginal note:New series — modified real-time election

 If units of a series of an investment plan that is a selected listed financial institution are issued, distributed or offered for sale in a fiscal year of the investment plan, if immediately before the issuance, distribution or offering for sale no units of the series are issued and outstanding and if no election is in effect under section 49 or 63 in respect of the series and the fiscal year, the investment plan may elect in prescribed form containing prescribed information to have subsection 29(4) apply in respect of the series and the fiscal year. The election is to indicate whether the investment plan’s percentages for the series are to be determined by using investor percentages and whether the investment plan’s percentages for the series are to be determined on a daily basis, a weekly basis, a monthly basis or a quarterly basis.

  • SOR/2013-71, s. 2

Mergers

Marginal note:Prescribed circumstance and day

 For the purposes of subsection 244.1(2) of the Act,

  • (a) the occurrence of a plan merger to form an investment plan is a prescribed circumstance; and

  • (b) the day on which the plan merger occurs is the prescribed day in relation to the investment plan.

  • SOR/2013-71, s. 2

Marginal note:Investment plan merger

 If a plan merger occurs to form an investment plan that is, immediately after the plan merger, a selected listed financial institution, the following rules apply:

  • (a) for the purposes of these Regulations, subsection 225.2(1) of the Act, subsection 225.2(2) of the Act as adapted by these Regulations and section 225.3 of the Act, the fiscal year of the investment plan (in this section referred to as the “preceding fiscal year”) that precedes the fiscal year of the investment plan (in this section referred to as the “merger fiscal year”) that includes the day on which the plan merger occurs and the merger fiscal year are each deemed to end in a different taxation year of the investment plan and both of those taxation years are deemed to immediately follow each other in the same order as the corresponding fiscal years; and

  • (b) if an election made by the investment plan under section 50 is in effect throughout the preceding fiscal year and the plan merger occurs on or before September 30 of the calendar year in which the preceding fiscal year ends, for the purposes of Part 2 and this Part and despite the meaning of attribution point as set out in subsections 16(1) and 18(3), attribution point in respect of a series of the investment plan or in respect of the investment plan, as the case may be, and for the taxation year in which the preceding fiscal year ends means

    • (i) if an election under subsection 18(1) in respect of the series or an election under subsection 18(2) in respect of the investment plan is in effect throughout the preceding fiscal year,

      • (A) each day, if any, that would be an attribution point, in the absence of this paragraph, in respect of the series or the investment plan, as the case may be, and for the taxation year under subsection 18(3), and

      • (B) the day preceding the day on which the plan merger occurs,

    • (ii) if the series is an exchange-traded series or if the investment plan is an exchange-traded fund,

      • (A) each day, if any, that would be an attribution point, in the absence of this paragraph, in respect of the series or the particular investment plan, as the case may be, and for the taxation year under subparagraph (a)(i) or (b)(ii), as applicable, of the definition attribution point in section 16, and

      • (B) the last day of the month preceding the month that includes the day on which the plan merger occurs, and

    • (iii) in any other case, the day preceding the day on which the plan merger occurs.

  • SOR/2013-71, s. 2

2010 Transitional Rules for Investment Plans

New Selected Listed Financial Institutions

Marginal note:Exclusion from subsection 225.2(2) formula

 If an investment plan is a selected listed financial institution throughout the particular reporting period of the investment plan that includes July 1, 2010 and was not a selected listed financial institution throughout the reporting period of the investment plan that precedes the particular reporting period, 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, any amount of tax under Part IX of the Act that became payable by the investment plan before that day or that was paid by the investment plan before that day without having become payable is a prescribed amount of tax.

  • SOR/2013-71, s. 2

Attribution Point

Marginal note:Attribution point — series of stratified investment plan

  •  (1) For the purposes of Part 2 and section 69 and despite the meaning of attribution point as set out in subsections 16(1) and 58(2), if an investment plan is a stratified investment plan and no election under subsection 18(1) is in effect in respect of a series of the investment plan throughout any fiscal year of the investment plan that ends after June 30, 2010 and before January 1, 2011, attribution point in respect of the series for all taxation years of the investment plan in which any such fiscal year ends and for the taxation year preceding the earliest of those taxation years means the day determined by the investment plan that is on or after July 1, 2009 and before July 1, 2010.

  • Marginal note:Attribution point — non-stratified investment plan

    (2) For the purposes of Part 2 and section 70 and despite the meaning of attribution point as set out in subsections 16(1) and 58(1), if an investment plan is a non-stratified investment plan and no election under subsection 18(2) is in effect in respect of the investment plan throughout any fiscal year of the investment plan that ends after June 30, 2010 and before January 1, 2011, attribution point in respect of the investment plan for all taxation years of the investment plan in which any such fiscal year ends and for the taxation year preceding the earliest of those taxation years means the day determined by the investment plan that is on or after July 1, 2009 and before July 1, 2010.

  • SOR/2013-71, s. 2

Percentages for Distributed Investment Plans

Marginal note:Stratified investment plan

 Despite section 30, if a selected listed financial institution is a stratified investment plan, no election under section 49 or 64 is in effect in respect of any series of the financial institution throughout a particular fiscal year of the financial institution that ends after June 2010 and before January 2011, no election is in effect under section 50 throughout the particular fiscal year and the financial institution has elected in prescribed form containing prescribed information to have this section apply to each series, other than an exchange-traded series, of the financial institution, the financial institution’s percentage for each of those series, for each participating province and for each specified taxation year — being the taxation year of the financial institution in which the particular fiscal year ends and the taxation year of the financial institution preceding that taxation year — is the percentage that would be the financial institution’s percentage determined under section 30 for the series, for the participating province and for the specified taxation year if

  • (a) where, on an attribution point in respect of the series for the specified taxation year, less than 10% of the total value of the units of the series are held by persons (in this section referred to as “institutional investors”) that are neither individuals nor specified investors in the financial institution for the particular fiscal year, all units of the series held, on the attribution point, by unknown institutional investors — each of which is an institutional investor in respect of which the financial institution does not know, on December 31, 2010, the institutional investor’s investor percentage for each participating province as of the attribution point — did not exist on the attribution point;

  • (b) where paragraph (a) does not apply in respect of an attribution point in respect of the series for the specified taxation year and, on the attribution point, less than 10% of the total value of the units of the series held by institutional investors are held by particular institutional investors in respect of which the financial institution does not know, on December 31, 2010, the institutional investor’s investor percentage for each participating province as of the attribution point, all units of the series held, on the attribution point, by the particular institutional investors did not exist on the attribution point;

  • (c) where paragraphs (a) and (b) do not apply in respect of an attribution point in respect of the series for the specified taxation year, any institutional investor that holds, on the attribution point, units of the series were an individual;

  • (d) any reference in section 30 to “October 15 of the calendar year” were a reference to “December 31, 2010”; and

  • (e) any reference in section 30 to “December 31 of the calendar year” were a reference to “December 31, 2010”.

  • SOR/2013-71, s. 2

Marginal note:Non-stratified investment plans

 Despite section 32, if a selected listed financial institution is a non-stratified investment plan (other than an exchange-traded fund) in respect of which no election under any of sections 49, 50 and 61 is in effect throughout a particular fiscal year of the financial institution that ends after June 2010 and before January 2011 and the financial institution has elected in prescribed form containing prescribed information to have this section apply, the financial institution’s percentage for each participating province and for each specified taxation year — being the taxation year of the financial institution in which the particular fiscal year ends and the taxation year of the financial institution preceding that taxation year — is the percentage that would be the financial institution’s percentage determined under section 32 for the participating province and for the specified taxation year if

  • (a) where, on an attribution point in respect of the financial institution for the specified taxation year, less than 10% of the total value of the units of the financial institution are held by persons (in this section referred to as “institutional investors”) that are neither individuals nor specified investors in the financial institution for the particular fiscal year, all units of the financial institution held, on the attribution point, by unknown institutional investors — each of which is an institutional investor in respect of which the financial institution does not know, on December 31, 2010, the institutional investor’s investor percentage for each participating province as of the attribution point — did not exist on the attribution point;

  • (b) where paragraph (a) does not apply in respect of an attribution point in respect of the financial institution for the specified taxation year and, on the attribution point, less than 10% of the total value of the units of the financial institution held by institutional investors are held by particular institutional investors in respect of which the financial institution does not know, on December 31, 2010, the institutional investor’s investor percentage for each participating province as of the attribution point, all units of the financial institution held, on the attribution point, by the particular institutional investors did not exist on the attribution point;

  • (c) where paragraphs (a) and (b) do not apply in respect of an attribution point in respect of the financial institution for the specified taxation year, any institutional investor that holds, on the attribution point, units of the financial institution were an individual;

  • (d) any reference in section 32 to “October 15 of the calendar year” were a reference to “December 31, 2010”; and

  • (e) any reference in section 32 to “December 31 of the calendar year” were a reference to “December 31, 2010”.

  • SOR/2013-71, s. 2
 
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