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

Regulations are current to 2020-09-09 and last amended on 2019-03-04. Previous Versions

PART 5Investment Plans (continued)

Net Tax Adjustment for Investment Plans (continued)

Marginal note:Election for real-time calculation — stratified plans

  •  (1) A stratified investment plan (other than a mortgage investment corporation) that is a selected listed financial institution may make an election in respect of a series of the plan (other than an exchange-traded series) for the purposes of these Regulations and subsection 225.2(2) of the Act, as adapted by subsection 48(1), and that election is to be effective from the first day of a fiscal year of the investment plan.

  • Marginal note:Election for real-time calculation — non-stratified plans

    (2) A non-stratified investment plan (other than an exchange-traded fund or a mortgage investment corporation) that is a selected listed financial institution may make an election in respect of the plan for the purposes of these Regulations and subsection 225.2(2) of the Act, as adapted by subsection 48(2), and that election is to be effective from the first day of a fiscal year of the investment plan.

  • Marginal note:Restriction

    (3) An election made under subsection (1) in respect of a series of an investment plan or under subsection (2) in respect of an investment plan is not to become effective if

    • (a) on the day on which the election is to come into effect,

      • (i) an election under subsection 18(1) or section 64 in respect of the series, or an election under subsection 18(2) or section 61 in respect of the investment plan, is in effect, or

      • (ii) an election under section 50 by the investment plan is in effect; or

    • (b) on September 30 immediately preceding the day on which the election is to come into effect, less than 90% of the total value of the units of the series or of the investment plan is held by individuals or specified investors in the investment plan.

  • Marginal note:Form of election

    (4) An election made under subsection (1) in respect of a series of an investment plan or under subsection (2) in respect of an investment plan is to

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

    • (b) set out the first fiscal year of the investment plan during which the election is to be in effect; and

    • (c) indicate whether the investment plan’s percentages, or 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.

  • Marginal note:Cessation

    (5) An election made by a person that is an investment plan under subsection (1) in respect of a series of the investment plan or under subsection (2) in respect of the investment plan ceases to have effect on the earliest of

    • (a) if, on a day in a particular fiscal year of the person, subsection 29(3) applies in respect of the series or subsection 31(3) applies in respect of the investment plan, the first day of the fiscal year of the person immediately following the particular fiscal year,

    • (b) the first day of the fiscal year of the person in which the person ceases to be an investment plan or a selected listed financial institution or becomes a mortgage investment corporation,

    • (c) in the case of an election under subsection (1), the first day of the fiscal year of the person in which the series becomes an exchange-traded series,

    • (d) in the case of an election under subsection (2), the first day of the fiscal year of the person in which the person becomes an exchange-traded fund, and

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

  • Marginal note:Revocation

    (6) An investment plan that has made an election under subsection (1) or (2) may, in prescribed form containing prescribed information, revoke the election, effective on the first day of a fiscal year of the investment plan that begins at least three years after the election became effective.

  • Marginal note:Restriction

    (7) If a particular election made under subsection (1) or (2) ceases to have effect on a particular day, any subsequent election under subsection (1) or (2) is not a valid election unless the first day of the fiscal year set out in the subsequent election is at least three years after the particular day.

  • SOR/2013-71, s. 2

Marginal note:Election for reconciliation

  •  (1) An investment plan that is a selected listed financial institution may make an election for the purposes of section 48 and subsection 225.2(2) of the Act, as adapted by subsection 48(1), and that election is to be effective from the first day of a fiscal year of the investment plan.

  • Marginal note:Restriction

    (2) An election made under subsection (1) by an investment plan is not to become effective if, on the day on which the election is to come into effect, an election under subsection 49(1) or section 64 in respect of a series of the investment plan, or an election under subsection 49(2) or section 61 in respect of the investment plan, is in effect.

  • Marginal note:Form of election

    (3) An election made under subsection (1) by an investment plan is to

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

    • (b) set out the first fiscal year of the investment plan during which the election is to be in effect.

  • Marginal note:Cessation

    (4) An election made under subsection (1) by a person that is an investment plan ceases to have effect on the earlier of

    • (a) the first day of the fiscal year of the person in which the person ceases to be an investment plan or a selected listed financial institution, and

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

  • Marginal note:Revocation

    (5) An investment plan that has made an election under subsection (1) may, in prescribed form containing prescribed information, revoke the election, effective on the first day of a fiscal year of the investment plan that begins at least three years after the election became effective.

  • Marginal note:Restriction

    (6) If a particular election made under subsection (1) ceases to have effect on a particular day, any subsequent election under that subsection is not a valid election unless the first day of the fiscal year set out in the subsequent election is at least three years after the particular day.

  • SOR/2013-71, s. 2

Allocation of Expenses to a Series

Marginal note:Allocation of expenses to series

  •  (1) For the purposes of these Regulations, the New Harmonized Value-added Tax System Regulations, No. 2 and subsection 225.2(2) of the Act, as adapted by subsection 48(1), and subject to subsections (2) and (3), for every property or service that a stratified investment plan acquires, imports or brings into a participating province, the stratified investment plan must determine the extent to which the property or service is acquired, imported or brought in for consumption, use or supply in the course of the activities relating to each series of the stratified investment plan.

  • Marginal note:Requirement

    (2) For every property or service that is acquired, imported or brought into a participating province by a stratified investment plan, the total of all amounts, each of which is an extent, expressed as a percentage, in respect of the property or service determined in accordance with this section, must equal 100%.

  • Marginal note:Method of allocating expenses

    (3) The methods used by a stratified investment plan to determine the extent to which properties or services are acquired, imported or brought into a participating province for consumption, use or supply in the course of the activities relating to each of its series must be fair and reasonable and must be used consistently throughout a fiscal year of the stratified investment plan.

  • SOR/2013-71, s. 2

Information Sharing

Marginal note:Definitions

  •  (1) The definitions in this subsection apply in this section.

    affiliated group

    affiliated group means a group of investment plans, each member of which is affiliated with each other member of the group. (groupe affilié)

    qualifying investor

    qualifying investor, in a particular investment plan for a calendar year, means a person that is an investment plan and a selected investor in the particular investment plan for the calendar year and that

    • (a) is neither a qualifying small investment plan for the purposes of Part 1 for the fiscal year of the person that includes September 30 of the calendar year nor an investment plan in respect of which section 13 applies throughout that fiscal year;

    • (b) is a selected listed financial institution throughout the fiscal year referred to in paragraph (a); or

    • (c) is a member of an affiliated group,

      • (i) the members of which together hold units of the particular investment plan with a total value of $10,000,000 or more as of September 30 of the calendar year, or

      • (ii) any member of which is a selected listed financial institution throughout the fiscal year of the member that includes September 30 of the calendar year. (investisseur admissible)

    selected investor

    selected investor, in a particular investment plan for a calendar year, means a person (other than an individual or a distributed investment plan) that is resident in Canada and that meets the following criteria:

    • (a) if the person is an investment plan, the person holds units of the particular investment plan with a total value of less than $10,000,000 as of September 30 of the calendar year; and

    • (b) in any other case, as of September 30 of the calendar year,

      • (i) if the particular investment plan is a stratified investment plan, for each series of the particular investment plan in which the person holds units, the person holds units of the series with a total value of less than $10,000,000, and

      • (ii) if the particular investment plan is a non-stratified investment plan, the person holds units of the particular investment plan with a total value of less than $10,000,000. (investisseur désigné)

    selected non-stratified investment plan

    selected non-stratified investment plan means a non-stratified investment plan that is a selected listed financial institution and not an exchange-traded fund. (régime de placement non-stratifié désigné)

    selected stratified investment plan

    selected stratified investment plan means a stratified investment plan that is a selected listed financial institution. (régime de placement stratifié désigné)

  • Marginal note:Affiliated persons

    (2) For the purposes of this section, persons affiliated with each other are

    • (a) pension entities of the same pension plan;

    • (b) trusts governed by the same deferred profit sharing plan, employee benefit plan, employee trust, employees profit sharing plan, registered education savings plan, registered supplementary unemployment benefit plan or retirement compensation arrangement;

    • (c) employee life and health trusts established for the same employees; or

    • (d) related persons.

  • Marginal note:Production of investor percentage — non-stratified investment plan

    (3) Every person (other than an individual) that holds units of a selected non-stratified investment plan and that is not a specified investor in the investment plan must, if the investment plan makes a written request during a calendar year, provide to the investment plan the person’s investor percentage for each participating province as of September 30 of that calendar year and the number of units held on that day by the person in the investment plan on or before the particular day that is the later of

    • (a) November 15 of that calendar year, and

    • (b) the day that is 45 days after the day on which the person receives the request.

  • Marginal note:Production of investor percentage — stratified investment plans

    (4) Every person (other than an individual) that holds units of a series (other than an exchange-traded series) of a selected stratified investment plan and that is not a specified investor in the investment plan must, if the investment plan makes a written request during a calendar year, provide to the investment plan the person’s investor percentage for each participating province as of September 30 of that calendar year and the number of units held on that day by the person in each series (other than an exchange-traded series) of the investment plan on or before the particular day that is the later of

    • (a) November 15 of that calendar year, and

    • (b) the day that is 45 days after the day on which the person receives the request.

  • Marginal note:Production of address — non-stratified investment plans

    (5) Every person that holds units of a selected non-stratified investment plan and that is a selected investor in the investment plan for a calendar year must, if the investment plan makes a written request during the calendar year, provide to the investment plan the person’s address that determines in accordance with section 5 the province in which the person is resident on September 30 of that calendar year and the number of units held on that day by the person in the investment plan on or before the particular day that is the later of

    • (a) November 15 of that calendar year, and

    • (b) the day that is 45 days after the day on which the person receives the request.

  • Marginal note:Production of address — stratified investment plan

    (6) Every person that holds units of a series (other than an exchange-traded series) of a selected stratified investment plan and that is a selected investor in the investment plan for a calendar year must, if the investment plan makes a written request during the calendar year, provide to the investment plan the person’s address that determines in accordance with section 5 the province in which the person is resident on September 30 of that calendar year and the number of units held on that day by the person in each series (other than an exchange-traded series) of the investment plan on or before the particular day that is the later of

    • (a) November 15 of that calendar year, and

    • (b) the day that is 45 days after the day on which the person receives the request.

  • Marginal note:Non-application of subsections (5) and (6)

    (7) A person is not required to provide the information described in subsection (5) or (6) to an investment plan if the person

    • (a) is a qualifying investor in the investment plan for the calendar year; and

    • (b) provides the information described in subsection (9) or (10), as applicable, to the investment plan on or before November 15 of the calendar year.

  • Marginal note:Production of address — securities dealers

    (8) Every person that sells or distributes units of a selected non-stratified investment plan or that sells or distributes units of a series (other than an exchange-traded series) of a selected stratified investment plan must, if the investment plan makes a written request during a calendar year, provide, for each participating province, the number of units of the investment plan, in the case of a non-stratified investment plan, or the number of units of each series (other than an exchange-traded series) of the investment plan, in the case of a stratified investment plan, held by clients of the person resident in the participating province on September 30 of that calendar year and the number of units of the investment plan, in the case of a non-stratified investment plan, or the number of units of each series (other than an exchange-traded series) of the investment plan, in the case of a stratified investment plan, held by clients of the person resident in Canada on that day, on or before the particular day that is the later of

    • (a) November 15 of that calendar year, and

    • (b) the day that is 45 days after the day on which the person receives the request.

  • Marginal note:Qualifying investor status — non-stratified investment plans

    (9) Every person that holds units of a selected non-stratified investment plan and that is a qualifying investor in the investment plan for a calendar year must provide to the investment plan, on or before November 15 of the calendar year,

    • (a) notice that the person is a qualifying investor in the investment plan for the calendar year;

    • (b) the number of units held on September 30 of the calendar year by the person in the investment plan; and

    • (c) the person’s investor percentage for each participating province as of September 30 of the calendar year.

  • Marginal note:Qualifying investor status — stratified investment plans

    (10) Every person that holds units of a series (other than an exchange-traded series) of a selected stratified investment plan and that is a qualifying investor in the investment plan for a calendar year must provide to the investment plan, on or before November 15 of the calendar year,

    • (a) notice that the person is a qualifying investor in the investment plan for the calendar year;

    • (b) the number of units held on September 30 of the calendar year by the person in each series (other than an exchange-traded series) of the investment plan; and

    • (c) the person’s investor percentage for each participating province as of September 30 of the calendar year.

  • Marginal note:Use of information

    (11) A distributed investment plan that obtains any information in respect of a person in accordance with any of subsections (3) to (6) and (8) to (10) must not knowingly use, communicate, or allow to be used or communicated, otherwise than as required or authorized under the Act, these Regulations or any other regulation made under the Act, the information without the written consent of that person.

  • Marginal note:Penalty — failure to provide information

    (12) Every person that fails to provide, on request made by a distributed investment plan under any of subsections (3) to (6) and (8), the information described in that subsection to the investment plan on or before the particular day described in that subsection, or that misstates such information to the investment plan, is liable to a penalty, for each such failure, equal to the lesser of $10,000 and 0.01% of the total value, on September 30 of the calendar year set out in the request, of the units of the investment plan in respect of which that person was required to provide information to the investment plan in accordance with that subsection.

  • Marginal note:Penalty — failure to provide notice

    (13) Every person that is required by subsection (9) or (10) to provide the information described in that subsection to a distributed investment plan on or before November 15 of a calendar year and that fails to do so is liable to a penalty, for each such failure, equal to the lesser of $10,000 and 0.01% of the total value, on September 30 of that calendar year, of the units of the distributed investment plan held by the person on that day.

  • SOR/2013-71, s. 2
  • SOR/2019-59, s. 23
 
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