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

Marginal note:Exception — investment plan with provincial series

12 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.

Marginal note:Exception — pension and private investment plans

13 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.

Marginal note:Election — qualifying small investment plan

• 14 (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.

Marginal note:Application for small investment plan status

• 15 (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.

PART 2Percentage for a Participating Province

Interpretation

Marginal note:Definitions

• 16 (1) The following definitions apply in this Part.

  attribution point

  attribution point means, in respect of a particular series of a stratified investment plan, or in respect of a particular investment plan other than a stratified investment plan, and for a taxation year in which a fiscal year of the stratified investment plan or the particular investment plan, as the case may be, ends,

  • (a) in the case of a particular series,

    • (i) if the particular series is an exchange-traded series, each of September 30 of the calendar year (in this definition referred to as the “particular calendar year”) in which the fiscal year ends and

      • (A) one or more of March 31, June 30 and December 31 of the particular calendar year, as determined by the stratified investment plan, or

      • (B) March 31 of the particular calendar year, in the absence of such a determination by the stratified investment plan, and

    • (ii) in any other case, September 30 of the particular calendar year; and

  • (b) in the case of a particular investment plan,

    • (i) if the particular investment plan is a distributed investment plan other than an exchange-traded fund, September 30 of the particular calendar year,

    • (ii) if the particular investment plan is an exchange-traded fund, each of September 30 of the particular calendar year and

      • (A) one or more of March 31, June 30 and December 31 of the particular calendar year, as determined by the particular investment plan, or

      • (B) March 31 of the particular calendar year, in the absence of such a determination by the particular investment plan, and

    • (iii) if the particular investment plan is a pension entity of a defined benefits pension plan, the day that is the last day for which calculations of the actuarial liabilities of the plan have been completed and that is in the period that includes the particular calendar year and the three preceding calendar years or, if no such day exists, September 30 of the particular calendar year, and

    • (iv) if the particular investment plan is a pension entity of a defined contribution pension plan or if the particular investment plan is not described in subparagraphs (i) to (iii), the day that is the last day for which the particular investment plan has, or can reasonably be expected to have, all or substantially all of the data required to calculate the particular investment plan’s percentage for each participating province and for the taxation year and that is in the period that includes the particular calendar year and the preceding calendar year or, if no such day exists, September 30 of the particular calendar year. (moment d’attribution)

  gross revenue

  gross revenue of a selected listed financial institution for a particular period means the amount that would be the gross revenue of the financial institution for the particular period for the purposes of the Income Tax Act if the financial institution were a taxpayer under that Act and if every reference in that Act to a taxation year of the financial institution were read as a reference to the particular period. (revenu brut)

  particular period

  particular period means

  • (a) in applying this Part for the purpose of the description of C in subsection 225.2(2) of the Act (other than for the determination of the amount for C in that subsection for the purpose of subsection 228(2.2) of the Act) and for the purpose of the description of A₆ in subsection 225.2(2) of the Act, as adapted by subsection 48(1), a taxation year;

  • (b) in applying this Part for the determination of the amount for C in subsection 225.2(2) of the Act for the purpose of subsection 228(2.2) of the Act, a reporting period; and

  • (c) in applying this Part for the purpose of the description of D in subparagraph 237(5)(b)(ii) of the Act, a fiscal quarter. (période donnée)

  plan merger

  plan merger means the merger or combination of two or more trusts, corporations or partnerships, each of which was, immediately before the merger or combination, a distributed investment plan and each of which is referred to in this definition as a “predecessor”, to form one trust, corporation or partnership (referred to in this definition as the “continuing plan”) in such a manner that

  • (a) the continuing plan is a predecessor and is, immediately after the merger or combination, a distributed investment plan;

  • (b) for each predecessor other than the continuing plan, all or substantially all of the outstanding units of the predecessor are converted, by any means, into units of the continuing plan or are cancelled; and

  • (c) the merger or combination is otherwise than as a result of the acquisition of property of a particular trust, corporation or partnership by another trust, corporation or partnership, pursuant to the purchase of that property by the other trust, corporation or partnership or as a result of the distribution of that property to the other trust, corporation or partnership on the winding-up of the particular trust, corporation or partnership. (fusion de régimes)

  specified investor

  specified investor in a particular distributed investment plan for a fiscal year of the particular investment plan that ends in a calendar year means a person (other than an individual or a distributed investment plan) that holds units of the particular investment plan as of September 30 of the calendar year and that meets the following criteria:

  • (a) if the person is an investment plan,

    • (i) 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,

    • (ii) on or before December 31 of the calendar year, the person has not notified the particular investment plan that the person is a qualifying investor (as defined in subsection 52(1)) in the particular investment plan for the calendar year, and

    • (iii) the particular investment plan neither knows nor ought to know that the person is a qualifying investor (as defined in subsection 52(1)) in the particular investment plan for 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 déterminé)

  specified transaction

  specified transaction means

  • (a) in relation to an attribution point in respect of a non-stratified investment plan for a taxation year of the investment plan, the acquisition of units of the investment plan by a person, or by a group of persons, from the investment plan if

    • (i) the acquisition by the person, or each acquisition by a member of the group of persons, occurs less than 31 days before the attribution point,

    • (ii) the units are disposed of, within the meaning of subsection 248(1) of the Income Tax Act, by the person, or by each member of the group of persons, within 30 days after the attribution point,

    • (iii) in the case of the acquisition of the units by a group of persons, each member of the group is related to every other member of the group,

    • (iv) the total value of the units as of the attribution point is greater than the lesser of

      • (A) $10,000,000, and

      • (B) 10% of the total value of all of the units of the investment plan on the attribution point,

    • (v) the investment plan’s percentage for any participating province and for the taxation year, determined without reference to subsection 32(3), is less than the amount that would be that percentage if that percentage were determined without reference to the units, and

    • (vi) the acquisition by the person, or any acquisition by a member of the group of persons, does not meet one or more of the following conditions:

      • (A) the acquisition is undertaken by the person or member and the investment plan in good faith as part of the normal business practice of the investment plan,

      • (B) the person or member and the investment plan deal with each other at arm’s length,

      • (C) the acquisition is made for consideration equal to or greater than the total value of the units at the time of the acquisition,

      • (D) neither the investment plan nor the manager of the investment plan provide any guarantees or indemnities to the person or member with respect to gains or losses in the value of the units during the period beginning on the particular day the acquisition occurred and ending on the day that is 30 days after the particular day, and

      • (E) any fees charged by the investment plan to the person or member in respect of the units are similar to fees charged by the investment plan to other persons holding units of the investment plan; and

  • (b) in relation to an attribution point in respect of a series of a stratified investment plan for a taxation year of the investment plan, the acquisition of units of the series by a person, or by a group of persons, from the investment plan if

    • (i) the acquisition by the person, or each acquisition by a member of the group of persons, occurs less than 31 days before the attribution point,

    • (ii) the units are disposed of, within the meaning of subsection 248(1) of the Income Tax Act, by the person, or by each member of the group of persons, within 30 days after the attribution point,

    • (iii) in the case of the acquisition of the units by a group of persons, each member of the group is related to every other member of the group,

    • (iv) the total value of the units as of the attribution point is greater than the lesser of

      • (A) $10,000,000, and

      • (B) 10% of the total value of all of the units of the series on the attribution point,

    • (v) the investment plan’s percentage for the series, for any participating province and for the taxation year, determined without reference to subsection 30(3), is less than the amount that would be that percentage if that percentage were determined without reference to the units, and

    • (vi) the acquisition by the person, or any acquisition by a member of the group of persons, does not meet one or more of the following conditions:

      • (A) the acquisition is undertaken by the person or member and the investment plan in good faith as part of the normal business practice of the investment plan,

      • (B) the person or member and the investment plan deal with each other at arm’s length,

      • (C) the acquisition is made for consideration equal to or greater than the total value of the units at the time of the acquisition,

      • (D) neither the investment plan nor the manager of the investment plan provide any guarantees or indemnities to the person or member with respect to gains or losses in the value of the units during the period beginning on the particular day the acquisition occurred and ending on the day that is 30 days after the particular day, and

      • (E) any fees charged by the investment plan to the person or member in respect of the units are similar to fees charged by the investment plan to other persons holding units of the series. (opération déterminée)

  total gross revenue

  total gross revenue of a selected listed financial institution for a particular period means the portion of the gross revenue of the financial institution for the particular period that is reasonably attributable to the permanent establishments of the financial institution in Canada. (revenu brut total)

• Marginal note:References to individual

  (2) For the purposes of sections 22, 23 and 27, a reference to an individual includes a reference to a trust that is not an investment plan.