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

Regulations are current to 2022-11-16 and last amended on 2019-03-04. Previous Versions

Interpretation (continued)

[
  • SOR/2013-71, s. 1(F)
]

Marginal note:Permanent establishment throughout taxation year

 For the purposes of these Regulations, a financial institution has a permanent establishment in a province throughout a taxation year of the financial institution if the financial institution has a permanent establishment in the province at any time in the taxation year.

  • SOR/2013-71, s. 2

Marginal note:Residence of person

 For the purposes of these Regulations, and despite subsection 132.1(1) of the Act, a person resident in Canada is resident in the province

  • (a) if the person is an individual, where the person’s principal mailing address in Canada is located;

  • (b) if the person is a corporation or a partnership, where the person’s principal business in Canada is located;

  • (c) if the person is a trust governed by a registered retirement savings plan, a registered retirement income fund, a registered education savings plan, a registered disability savings plan or a TFSA, where the principal mailing address in Canada of the annuitant of the registered retirement savings plan or registered retirement income fund, of the subscriber of the registered education savings plan or of the holder of the registered disability savings plan or TFSA is located;

  • (d) if the person is a trust, other than a trust described in paragraph (c), where the trustee’s principal business in Canada is located or, if the trustee is not carrying on a business, where the trustee’s principal mailing address in Canada is located; and

  • (e) in any other case, where the person’s principal business in Canada is located or, if the person is not carrying on a business, where the person’s principal mailing address in Canada is located.

  • SOR/2013-71, s. 2

Marginal note:Definitions — section 225.3 of Act

  •  (1) For the purpose of section 225.3 of the Act, exchange-traded fund, exchange-traded series, non-stratified investment plan and stratified investment plan have the same meanings as in subsection 1(1).

  • Marginal note:Definitions — section 225.4 of Act

    (2) For the purpose of section 225.4 of the Act,

    • (a) exchange-traded fund, exchange-traded series, individual, investment plan, non-stratified investment plan, plan member, private investment plan, series, stratified investment plan and unit have the same meanings as in subsection 1(1); and

    • (b) specified investor has the same meaning as in section 16.

  • SOR/2013-71, s. 2

PART 1Prescribed Financial Institutions

Meaning of unrecoverable tax amount

  •  (1) For the purposes of this section, unrecoverable tax amount for a reporting period of a person means the amount determined by the formula

    A – B

    where

    A
    is the total of all amounts, each of which is
    • (a) an amount that would be included in the total for A in subsection 225.2(2) of the Act, read without reference to any adaptation made under Part 5, for the reporting period, if the person were a selected listed financial institution throughout the reporting period and no election under subsection 55(1) were in effect throughout the reporting period,

    • (b) an amount of tax that the person would be deemed to have paid under any of subsections 172.1(5) to (7.1) of the Act during the reporting period, if the person were a selected listed financial institution throughout the reporting period, or

    • (c) an amount that the person would be required by paragraph 232.01(5)(b) or 232.02(4)(b) of the Act to include in its determination of net tax for the reporting period, if the person were a selected listed financial institution throughout the reporting period; and

    B
    is the total of all amounts, each of which is
    • (a) an amount that would be included in the total for B in subsection 225.2(2) of the Act, read without reference to any adaptation made under Part 5, for the reporting period, if the person were a selected listed financial institution throughout the reporting period and no election under subsection 55(1) were in effect throughout the reporting period,

    • (b) the federal component amount, within the meaning of section 232.01 of the Act, of a tax adjustment note issued under subsection 232.01(3) of the Act to the person during the reporting period, or

    • (c) the federal component amount, within the meaning of section 232.02 of the Act, of a tax adjustment note issued under subsection 232.02(2) of the Act to the person during the reporting period.

  • Marginal note:Qualifying small investment plan

    (2) For the purposes of this Part, an investment plan (other than a distributed investment plan) is a qualifying small investment plan for a particular fiscal year of the investment plan where

    • (a) if, in the absence of section 57, the particular fiscal year is the first fiscal year of the investment plan, the amount determined by the following formula for each reporting period of the investment plan included in the particular fiscal year is equal to or less than $10,000:

      A × (365/B)

      where

      A
      is the unrecoverable tax amount for the reporting period, and
      B
      is the number of days in the reporting period; and
    • (b) in any other case, the amount determined by the following formula is equal to or less than $10,000:

      A × (365/B)

      where

      A
      is the total of all amounts, each of which is an unrecoverable tax amount for a reporting period of the investment plan included in the fiscal year of the investment plan (in this paragraph referred to as the “preceding fiscal year”) that precedes the particular fiscal year, and
      B
      is the number of days in the preceding fiscal year.

 [Repealed, SOR/2019-59, s. 16]

Marginal note:Prescribed financial institution — paragraph 225.2(1)(b) of Act

 Subject to sections 10 to 15 and for the purpose of paragraph 225.2(1)(b) of the Act, a financial institution is a prescribed financial institution throughout a reporting period in a particular fiscal year that ends in a taxation year of the financial institution if the financial institution

  • (a) has, at any time in the taxation year, a permanent establishment in a participating province and has, at any time in the taxation year, a permanent establishment in any other province; or

  • (b) is a qualifying partnership during the taxation year.

  • SOR/2006-162, s. 11(F)
  • SOR/2013-71, s. 2

Marginal note:Exception — qualifying small investment plans

 Section 9 does not apply in respect of a reporting period in a particular fiscal year of a financial institution that is a qualifying small investment plan for the particular fiscal year if

  • (a) the financial institution was a qualifying small investment plan for the fiscal year of the financial institution that precedes the particular fiscal year and was not a selected listed financial institution throughout that preceding fiscal year;

  • (b) the financial institution was a selected listed financial institution throughout the three fiscal years of the financial institution that precede the particular fiscal year; or

  • (c) the particular fiscal year is the first fiscal year of the financial institution.

  • SOR/2013-71, s. 2

Marginal note:Exception — provincial investment plan

 Section 9 does not apply in respect of a reporting period in a fiscal year that ends in a taxation year of a financial institution that is a non-stratified investment plan and that meets the following conditions throughout the fiscal year in respect of a particular province:

  • (a) under the laws of Canada or a province, units of the financial institution are permitted to be sold or distributed in the particular province but are not permitted to be sold or distributed in any other province;

  • (b) under the terms of the prospectus, registration statement, partnership agreement or other similar document for the financial institution, or under the laws of Canada or a province, the conditions for a person owning or acquiring units of the financial institution include

    • (i) that the person be resident in the particular province when the units are acquired, and

    • (ii) that the units are required to be sold, transferred or redeemed within a reasonable time after the person ceases to be resident in the particular province; and

  • (c) the financial institution’s percentage for the particular province and for the taxation year in which the preceding fiscal year ends, or the percentage that would be the financial institution’s percentage for the particular province and for that taxation year if the particular province were a participating province, is 90% or more.

  • SOR/2013-71, s. 2
  • 2018, c. 27, s. 57

Marginal note:Exception — investment plan with provincial series

 Section 9 does not apply in respect of a reporting period in a fiscal year of a financial institution that is a stratified investment plan if each series of the financial institution is a provincial series for the fiscal year.

  • SOR/2013-71, s. 2

Marginal note:Exception — pension and private investment plans

 Section 9 does not apply in respect of a reporting period in a fiscal year that ends in a taxation year of a financial institution that is a private investment plan or a pension entity of a pension plan if

  • (a) throughout the preceding taxation year, less than 10% of the total number of plan members of the financial institution are resident in the participating provinces; and

  • (b) throughout the preceding fiscal year, the following amount is less than $100,000,000:

    • (i) in the case of 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, the amount determined by the formula

      A + B

      where

      A
      is the total value of the assets of the defined contribution pension plan that are reasonably attributable to the plan members of the financial institution resident in the participating provinces, and
      B
      is the total value of the actuarial liabilities of the defined benefits pension plan that are reasonably attributable to the plan members of the financial institution resident in the participating provinces,
    • (ii) in the case of a pension entity of a defined benefits pension plan, other than a pension entity described in subparagraph (i), the amount that is the total value of the actuarial liabilities of the pension plan that are reasonably attributable to the plan members of the financial institution resident in the participating provinces, and

    • (iii) in any other case, the amount that is the total value of the assets of the private investment plan or pension plan that are reasonably attributable to the plan members of the financial institution resident in the participating provinces.

  • SOR/2013-71, s. 2

Marginal note:Election — qualifying small investment plan

  •  (1) If an investment plan is, or reasonably expects to be, a qualifying small investment plan for a fiscal year of the investment plan, if section 13 does not apply in respect of a reporting period in the fiscal year and if no application by the investment plan under subsection 15(1) in respect of the fiscal year has been approved by the Minister, the investment plan may make an election to be a prescribed financial institution for the purpose of paragraph 225.2(1)(b) of the Act that is effective from the first day of the fiscal year.

  • Marginal note:Effect of election

    (2) For the purpose of paragraph 225.2(1)(b) of the Act, if an election made under subsection (1) by an investment plan is in effect throughout a reporting period of the investment plan, the investment plan is a prescribed financial institution throughout the reporting period.

  • 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;

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

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

  • Marginal note:Cessation

    (4) An election made under subsection (1) by a person ceases to have effect on the day that is the earliest of

    • (a) the first day of a fiscal year that ends in the first taxation year of the person for which the person does not meet the requirement set out in paragraph 9(a);

    • (b) the first day of the fiscal year of the person in which the person ceases to be an investment plan; and

    • (c) 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 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, or on the first day of any earlier fiscal year as the Minister may allow on application by the investment plan, by filing in prescribed manner a notice of revocation with the Minister in prescribed form containing prescribed information on or before the day on which the revocation is to become effective or any later day that the Minister may allow.

  • Marginal note:Effect of early revocation

    (6) If the Minister allows an investment plan to revoke an election made under subsection (1) on the first day of a fiscal year that begins less than three years after the election became effective and the investment plan is a qualifying small investment plan for the fiscal year, section 9 does not apply in respect of any reporting period in the fiscal year.

  • SOR/2013-71, s. 2

Marginal note:Application for small investment plan status

  •  (1) An investment plan may apply to the Minister to not have section 9 apply in respect of any reporting period in a particular fiscal year of the investment plan and in respect of any reporting period in the fiscal year of the investment plan following the particular fiscal year.

  • Marginal note:Authorization

    (2) On receipt of an application made by an investment plan under subsection (1) in respect of a particular fiscal year of the investment plan and the fiscal year of the investment plan following the particular fiscal year, the Minister must, within 90 days of that receipt, consider the application and, if it is reasonable, based on the information in the possession of the Minister, to expect that the investment plan will be a qualifying small investment plan for those two fiscal years, approve the application or, in any other case, refuse the application, and must, within that time limit, notify the investment plan in writing of the decision.

  • Marginal note:Effect of authorization

    (3) If the Minister approves an application made by an investment plan under subsection (1) in respect of a particular fiscal year of the investment plan and the fiscal year of the investment plan following the particular fiscal year,

    • (a) if the investment plan is a qualifying small investment plan for the particular fiscal year, section 9 does not apply in respect of any reporting period in the particular fiscal year; and

    • (b) if the investment plan is a qualifying small investment plan for the following fiscal year, section 9 does not apply in respect of any reporting period in the following fiscal year.

  • Marginal note:Form and manner of application

    (4) An application made by an investment plan under subsection (1) is to be made in prescribed form containing prescribed information and is to be filed with the Minister in prescribed manner on or before the particular day that is 90 days before the first day of the first fiscal year to which the application applies or on or before any day after the particular day that the Minister may allow.

  • SOR/2006-162, s. 12(F)
  • SOR/2008-238, s. 1
  • SOR/2013-71, s. 2
 
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