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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 2Percentage for a Participating Province (continued)

Investment Plans (continued)

Stratified Investment Plans (continued)

Marginal note:Percentage — particular period

  •  (1) If a selected listed financial institution is a stratified investment plan, no election under section 49 or 64 is in effect in respect of a series of the financial institution throughout a fiscal year of the financial institution that ends in a particular period and in a calendar year and the series is not an exchange-traded series, the financial institution’s percentage for the series, for a participating province and for the particular period is

    • (a) in the case of any one participating province (in this section referred to as the “selected province”) having the highest tax rate on the first day of the fiscal year, the percentage determined by the formula

      A/B

      where

      A
      is the total of all amounts, each of which is determined for an attribution point in respect of the series for the particular period by the formula

      [(A1 + A2)/A3] + [A4 × ((A1 + A2)/A5)] + [(1 – A4) – (A5/A3)]

      where

      A1
      is the total of all amounts, each of which is the total value of the units of the series held, on the attribution point, by a person that is an individual or a specified investor in the financial institution for the fiscal year and that the financial institution knows, on December 31 of the calendar year, is resident in the selected province on the attribution point,
      A2
      is the total of all amounts, each of which is the total value of the units of the series held, on the attribution point, by a person that is neither an individual nor a specified investor in the financial institution for the fiscal year and in respect of which the financial institution knows, on December 31 of the calendar year, the person’s investor percentage for each participating province as of the attribution point multiplied by the person’s investor percentage for the selected province as of the attribution point,
      A3
      is the total value, on the attribution point, of the units of the series other than units held, on the attribution point, by an individual, or a specified investor in the financial institution for the fiscal year, that the financial institution knows, on December 31 of the calendar year, is not resident in Canada on the attribution point,
      A4
      is the lesser of 0.1 and the amount determined by the formula

      C/D

      where

      C
      is the total of all amounts, each of which is the total value of the units of the series held, on the attribution point, by a person in respect of which the financial institution
      • (i) does not know, on December 31 of the calendar year, any part of the information in respect of those units that is described in whichever of subsections 52(4), (6) and (8) is applicable in respect of those units (which part is referred to in this description as the “missing information”), and

      • (ii) requests, on or before October 15 of the calendar year, the missing information under the applicable subsection referred to in subparagraph (i), and

      D
      is the amount determined for A3, and
      A5
      is the total of all amounts, each of which is the total value of the units of the series held, on the attribution point, by a person
      • (i) that is an individual, or a specified investor in the financial institution for the fiscal year, resident in Canada on the attribution point and in respect of which the financial institution knows the province in which the person is resident on the attribution point, or

      • (ii) that is neither an individual nor a specified investor in the financial institution for the fiscal year and in respect of which the financial institution knows, on December 31 of the calendar year, the person’s investor percentage for each participating province as of the attribution point, and

      B
      is the number of attribution points in respect of the series for the particular period;
    • (b) in the case of a participating province (other than the selected province) in which the financial institution has a permanent establishment in the particular period, the percentage determined by the formula

      A/B

      where

      A
      is the total of all amounts, each of which is determined for an attribution point in respect of the series for the particular period by the formula

      [(A1 + A2)/A3] + [A4 × ((A1 + A2)/A5)]

      where

      A1
      is the total of all amounts, each of which is the total value of the units of the series held, on the attribution point, by a person that is an individual or a specified investor in the financial institution for the fiscal year and that the financial institution knows, on December 31 of the calendar year, is resident in the participating province on the attribution point,
      A2
      is the total of all amounts, each of which is the total value of the units of the series held, on the attribution point, by a person that is neither an individual nor a specified investor in the financial institution for the fiscal year and in respect of which the financial institution knows, on December 31 of the calendar year, the person’s investor percentage for each participating province as of the attribution point multiplied by the person’s investor percentage for the participating province as of the attribution point,
      A3
      is the total value, on the attribution point, of the units of the series other than units held, on the attribution point, by an individual, or a specified investor in the financial institution for the fiscal year, that the financial institution knows, on December 31 of the calendar year, is not resident in Canada on the attribution point,
      A4
      is the lesser of 0.1 and the amount determined by the formula

      C/D

      where

      C
      is the total of all amounts, each of which is the total value of the units of the series held, on the attribution point, by a person in respect of which the financial institution
      • (i) does not know, on December 31 of the calendar year, any part of the information in respect of those units that is described in whichever of subsections 52(4), (6) and (8) is applicable in respect of those units (which part is referred to in this description as the “missing information”), and

      • (ii) requests, on or before October 15 of the calendar year, the missing information under the applicable subsection referred to in subparagraph (i), and

      D
      is the amount determined for A3, and
      A5
      is the total of all amounts, each of which is the total value of the units of the series held, on the attribution point, by a person
      • (i) that is an individual, or a specified investor in the financial institution for the fiscal year, resident in Canada on the attribution point and in respect of which the financial institution knows the province in which the person is resident on the attribution point, or

      • (ii) that is neither an individual nor a specified investor in the financial institution for the fiscal year and in respect of which the financial institution knows, on December 31 of the calendar year, the person’s investor percentage for each participating province as of the attribution point, and

      B
      is the number of attribution points in respect of the series for the particular period; and
    • (c) in the case of any other participating province, nil.

  • Marginal note:Attribution of unit holders to a participating province

    (2) For the purposes of subsection (1), if, for any attribution point in respect of a series of an investment plan for a particular period in which a fiscal year of the investment plan ends, the total of all amounts — each of which is the total value of the particular units of the series held on the attribution point either by a person that is an individual or a specified investor in the investment plan for the fiscal year and in respect of which the investment plan knows, on December 31 of the calendar year in which the fiscal year ends, whether or not the person is resident in Canada on the attribution point and, in the case of individuals and specified investors resident in Canada, the province in which the person is resident on the attribution point or by a person that is neither an individual nor a specified investor in the investment plan for the fiscal year and in respect of which the investment plan knows, on December 31 of the calendar year, the person’s investor percentage for each participating province as of the attribution point — is less than 50% of the total value of the units of the series on the attribution point, the following rules apply:

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

    • (b) the particular individual is deemed to be resident on the attribution point in Canada and in the selected province referred to in subsection (1) for the series and for the particular period; and

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

  • Marginal note:Specified transactions

    (3) For the purposes of subsection (1), if no election under section 18 is in effect in respect of a series of an investment plan throughout a fiscal year of the investment plan and a specified transaction occurs that is in relation to an attribution point in respect of the series for a particular period in which the fiscal year ends, the following rules apply:

    • (a) the units of the series acquired in the specified transaction are deemed to be held on the attribution point by a particular individual and not by any other person;

    • (b) the particular individual is deemed to be resident on the attribution point in Canada and in the selected province referred to in subsection (1) for the series and for the particular period; and

    • (c) the investment plan is deemed to know on December 31 of the calendar year in which the fiscal year ends that the particular individual is, on the attribution point, resident in Canada and in the selected province.

  • Marginal note:Plan mergers

    (4) Despite subsection (1), if a plan merger between two or more investment plans (each of which is referred to in this subsection as a “predecessor”) occurs on a particular day to form a particular stratified investment plan that is a selected listed financial institution, a particular series of the particular investment plan is neither an exchange-traded series nor a provincial series and no election under section 49 or 64 is in effect in respect of the particular series throughout the fiscal year of the particular investment plan (in this subsection referred to as the “transitional fiscal year”) that includes the particular day, the following rules apply:

    • (a) if no election under section 50 is in effect throughout the transitional fiscal year, the particular investment plan’s percentage for the particular series, for a participating province and for the particular period (in this subsection referred to as the “preceding period”) that precedes the particular period in which the transitional fiscal year ends is equal to the particular amount that is the total of all amounts, each of which is determined for a particular predecessor by the formula

      A × B/C

      where

      A
      is
      • (i) if the particular predecessor is a stratified investment plan, the total of all amounts, each of which is determined by the following formula for a series of the particular predecessor (in this subparagraph referred to as a “predecessor series”), units of which were converted, by any means, into units of the particular series:

        A1 × A2/A3

        where

        A1
        is
        • (A) if an election under section 49 or 64 is in effect in respect of the predecessor series immediately before the plan merger, the particular predecessor’s percentage for the predecessor series and for the participating province as of the last day on which that percentage is required to be determined for the purposes of subsection 225.2(2) of the Act, as adapted by these Regulations, before the plan merger, and

        • (B) in any other case, the particular predecessor’s percentage for the predecessor series, for the participating province and for the last particular period of the particular predecessor ending before the plan merger,

        A2
        is the total value immediately before the plan merger of the units of the predecessor series that were converted, by any means, into units of the particular series by virtue of the plan merger, and
        A3
        is the total of all amounts, each of which is the total value immediately before the plan merger of the units of a series of the particular predecessor (including the predecessor series) that were converted, by any means, into units of the particular series by virtue of the plan merger,
      • (ii) if the particular predecessor is a non-stratified investment plan in respect of which an election under section 49 or 61 is in effect immediately before the plan merger, the particular predecessor’s percentage for the participating province as of the last day on which that percentage is required to be determined for the purposes of subsection 225.2(2) of the Act, as adapted by these Regulations, before the plan merger, and

      • (iii) in any other case, the particular predecessor’s percentage for the participating province and for the last particular period of the particular predecessor ending before the plan merger,

      B
      is the total value immediately before the plan merger of the units of the particular predecessor that were converted, by any means, into units of the particular series by virtue of the plan merger, and
      C
      is the total of all amounts, each of which is the total value immediately before the plan merger of the units of a predecessor (including the particular predecessor) that were converted, by any means, into units of the particular series by virtue of the plan merger; and
    • (b) if the plan merger occurs on or after September 30 of the calendar year in which the transitional fiscal year begins, the particular investment plan’s percentage for the particular series, for a participating province and for the particular period in which the transitional fiscal year ends is equal to the particular amount referred to in paragraph (a).

  • SOR/2013-71, s. 2

Non-stratified Investment Plans

Marginal note:Percentage — real time

  •  (1) If a selected listed financial institution is a non-stratified investment plan in respect of which an election under section 49 is in effect throughout a particular fiscal year of the financial institution, the financial institution’s percentage for a participating province as of a particular day in the particular fiscal year is

    • (a) in the case of any one participating province (in this subsection and subsection (2) referred to as the “selected province”) having the highest tax rate on the first day of the particular fiscal year, the percentage determined by the formula

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

      where

      A
      is the total of all amounts, each of which is the total value of the units of the financial institution held, on the particular day, by a person that is an individual or a specified investor in the financial institution for the particular fiscal year and that the financial institution knows is resident in the selected province on that day,
      B
      is the total of all amounts, each of which is the total value of the units of the financial institution held, on the particular day, by a person that is neither an individual nor a specified investor in the financial institution for the particular fiscal year and in respect of which the financial institution knows the person’s investor percentage for each participating province as of that day multiplied by the person’s investor percentage for the selected province as of that day,
      C
      is the total value, on the particular day, of the units of the financial institution other than units held on that day by an individual, or a specified investor in the financial institution for the particular fiscal year, that the financial institution knows is not resident in Canada on that day,
      D
      is the lesser of 0.1 and the amount determined by the formula

      D1/D2

      where

      D1
      is the total of all amounts, each of which is the total value of the units of the financial institution held, on the particular day, by a person in respect of which the financial institution
      • (i) does not know any part of the information in respect of those units that is described in whichever of subsections 52(3), (5) and (8) is applicable in respect of those units (which part is referred to in this description as the “missing information”), and

      • (ii) requests, on or before October 15 of the calendar year that precedes the calendar year in which the particular fiscal year ends, the missing information under the applicable subsection referred to in subparagraph (i), and

      D2
      is the amount determined for C, and
      E
      is the total of all amounts, each of which is the total value of the units of the financial institution held, on the particular day, by a person
      • (i) that is an individual, or a specified investor in the financial institution for the particular fiscal year, resident in Canada on that day and in respect of which the financial institution knows the province in which the person is resident on that day, or

      • (ii) that is neither an individual nor a specified investor in the financial institution for the particular fiscal year and in respect of which the financial institution knows the person’s investor percentage for each participating province as of that day;

    • (b) in the case of a participating province (other than the selected province) in which the financial institution has a permanent establishment in the taxation year in which the particular fiscal year ends, the percentage determined by the formula

      [(A + B)/C] + [D × ((A + B)/E)]

      where

      A
      is the total of all amounts, each of which is the total value of the units of the financial institution held, on the particular day, by a person that is an individual or a specified investor in the financial institution for the particular fiscal year and that the financial institution knows is resident in the participating province on that day,
      B
      is the total of all amounts, each of which is the total value of the units of the financial institution held, on the particular day, by a person that is neither an individual nor a specified investor in the financial institution for the particular fiscal year and in respect of which the financial institution knows the person’s investor percentage for each participating province as of that day multiplied by the person’s investor percentage for the participating province as of that day,
      C
      is the total value, on the particular day, of the units of the financial institution other than units held on that day by an individual, or a specified investor in the financial institution for the particular fiscal year, that the financial institution knows is not resident in Canada on that day,
      D
      is the lesser of 0.1 and the amount determined by the formula

      D1/D2

      where

      D1
      is the total of all amounts, each of which is the total value of the units of the financial institution held, on the particular day, by a person in respect of which the financial institution
      • (i) does not know any part of the information in respect of those units that is described in whichever of subsections 52(3), (5) and (8) is applicable in respect of those units (which part is referred to in this description as the “missing information”), and

      • (ii) requests, on or before October 15 of the calendar year that precedes the calendar year in which the particular fiscal year ends, the missing information under the applicable subsection referred to in subparagraph (i), and

      D2
      is the amount determined for C, and
      E
      is the total of all amounts, each of which is the total value of the units of the financial institution held, on the particular day, by a person
      • (i) that is an individual, or a specified investor in the financial institution for the particular fiscal year, resident in Canada on that day and in respect of which the financial institution knows the province in which the person is resident on that day, or

      • (ii) that is neither an individual nor a specified investor in the financial institution for the particular fiscal year and in respect of which the financial institution knows the person’s investor percentage for each participating province as of that day; and

    • (c) in the case of any other participating province, nil.

  • Marginal note:Attribution of unit holders to a participating province

    (2) For the purposes of subsection (1), if, for any particular day in a fiscal year of an investment plan, the total of all amounts — each of which is the total value of the particular units of the investment plan held on that day either by a person that is an individual or a specified investor in the investment plan for the fiscal year and in respect of which the investment plan knows whether or not the person is resident in Canada on that day and knows, in the case of individuals and specified investors resident in Canada, the province in which the person is resident on that day or by a person that is neither an individual nor a specified investor in the investment plan for the fiscal year and in respect of which the investment plan knows the person’s investor percentage for each participating province as of that day — is less than 50% of the total value of the units of the investment plan on that day, the following rules apply:

    • (a) the units of the investment plan, other than the particular units, are deemed to be held on that day by a particular individual and not by any other person;

    • (b) the particular individual is deemed to be resident on that day in Canada and in the selected province referred to in subsection (1) for that day; and

    • (c) the investment plan is deemed to know that the particular individual is, on that day, resident in Canada and in the selected province.

  • Marginal note:Percentage — exception

    (3) Despite subsection (1), if a selected listed financial institution is a non-stratified investment plan, an election under section 49 is in effect in respect of the financial institution throughout a particular fiscal year of the financial institution and, on a particular day in the particular fiscal year, more than 10% of the total value of the units of the financial institution is held by persons other than individuals and specified investors in the financial institution for the particular fiscal year,

    • (a) if the first day in the particular fiscal year on which more than 10% of the total value of the units of the financial institution is held by persons other than individuals and specified investors in the financial institution for the particular fiscal year is on or before the first day in the particular fiscal year as of which the financial institution’s percentage for a participating province is required to be determined under subsection 225.2(2) of the Act, the financial institution’s percentage for a participating province as of every day in the particular fiscal year is

      • (i) if no election under section 49 or 61 is in effect in respect of the financial institution throughout the fiscal year (referred to in this paragraph as the “preceding fiscal year”) of the financial institution preceding the particular fiscal year, the financial institution’s percentage for the participating province and for the preceding fiscal year, and

      • (ii) in any other case, the total of all amounts, each of which is the financial institution’s percentage for the participating province as of a day in the preceding fiscal year for which that percentage is required to be determined under subsection 225.2(2) of the Act, divided by the number of those days in the preceding fiscal year; and

    • (b) in any other case, the financial institution’s percentage for a participating province as of the particular day and every following day in the particular fiscal year is the amount determined by the formula

      A/B

      where

      A
      is the total of all amounts, each of which is the financial institution’s percentage for the participating province as of a day (each of which is referred to in this paragraph as an “attribution day”) in the particular fiscal year
      • (i) that precedes the first day in the particular fiscal year on which more than 10% of the value of the units of the financial institution is held by persons other than individuals and specified investors in the financial institution for the particular fiscal year, and

      • (ii) for which that percentage is required to be determined under subsection 225.2(2) of the Act, and

      B
      is the number of attribution days in the particular fiscal year.
  • Marginal note:New investment plan — elected method

    (4) If a selected listed financial institution is a non-stratified investment plan and an election under section 61 is in effect throughout a particular fiscal year of the financial institution, the following rules apply for the purposes of determining the financial institution’s percentage for a participating province as of a particular day in the particular fiscal year:

    • (a) if the election indicates that the financial institution’s percentages are to be determined by using investor percentages, subsections (1) and (2) apply for the purpose of determining the financial institution’s percentage for a participating province as of a day in the particular fiscal year, except that the description of D1 in paragraph (1)(a) and the description of D1 in paragraph (1)(b) are each to be read without reference to subparagraph (ii); and

    • (b) in any other case,

      • (i) the financial institution’s percentage as of a particular day in the particular fiscal year 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 financial institution held, on the particular day, by a person that the financial institution knows is resident in the selected province on that day,
        B
        is the total value, on the particular day, of the units of the financial institution other than units held on that day by a person that the financial institution knows is not resident in Canada on that day,
        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 financial institution held, on the particular day, by a person in respect of which the financial institution does not know whether or not the person is resident in Canada on that day or, in the case of persons resident in Canada, the province in which the person is resident on that day, 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 financial institution held, on the particular day, by a person resident in Canada on that day and in respect of which the financial institution knows the province in which the person is resident on that day,
      • (ii) the financial institution’s percentage as of a particular day in the particular fiscal year for a participating province (other than the selected province) in which the financial institution has a permanent establishment in the taxation year in which the particular fiscal year ends 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 financial institution held, on the particular day, by a person that the financial institution knows is resident in the participating province on that day,
        B
        is the total value, on the particular day, of the units of the financial institution other than units held on that day by a person that the financial institution knows is not resident in Canada on that day,
        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 financial institution held, on the particular day, by a person in respect of which the financial institution does not know whether or not the person is resident in Canada on that day or, in the case of persons resident in Canada, the province in which the person is resident on that day, 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 financial institution held, on the particular day, by a person resident in Canada on that day and in respect of which the financial institution knows the province in which the person is resident on that day, and
      • (iii) for the purposes of subparagraphs (i) and (ii), if, for any particular day in the particular fiscal year, the total of all amounts — each of which is the total value of the particular units of the financial institution held on that day by a person in respect of which the financial institution knows whether or not the person is resident in Canada on that day and knows, in the case of persons resident in Canada, the province in which the person is resident on that day — is less than 50% of the total value of the units of the financial institution on that day,

        • (A) the units of the financial institution, other than the particular units, are deemed to be held on that day by a particular person,

        • (B) the particular person is deemed to be resident on that day in Canada and in the selected province referred to in subparagraph (i) for that day, and

        • (C) the financial institution is deemed to know that the particular person is, on that day, resident in Canada and in the selected province.

  • SOR/2013-71, s. 2
 
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