Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations

Marginal note:New series — elected method

63 If units of a series of an investment plan that is a selected listed financial institution are issued, distributed or offered for sale for the first time 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 and if no election is in effect under section 49 or 64 in respect of the series and the particular fiscal year, the investment plan may elect in prescribed form containing prescribed information to have the following rules apply:

• (a) for the purposes of paragraph (a) of the description of A in subsection 225.2(2) of the Act, a prescribed amount of tax is any amount of tax under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act that became payable by the investment plan on or before the attribution point (referred to in this subsection as the “first attribution point”) in respect of the series for the taxation year (in this subsection referred to as the “preceding taxation year”) immediately preceding the particular taxation year, or that was paid by the investment plan on or before the first attribution point without having become payable, in respect of property or a service, but only to the extent that the property or service was acquired or imported for consumption, use or supply in the course of the activities relating to the series; and

• (b) for the purposes of the description of G in subsection 225.2(2) of the Act, for each reporting period in the particular fiscal year that ends after the first attribution point and for each reporting period in the fiscal year of the investment plan that follows the particular fiscal year, the amount determined, for each participating province, by the following formula is a prescribed amount:

  [(A – B)/C] × D × (E/F)

  where

  A

  is the total of all amounts of tax prescribed for the purposes of paragraph (a),

  B

  is the total of all input tax credits of the investment plan that are in respect of an amount of tax prescribed for the purposes of paragraph (a),

  C

  is the total of

  • (i) the total number of reporting periods in the particular fiscal year that end after the first attribution point, and

  • (ii) the total number of reporting periods in the fiscal year of the investment plan that immediately follows the particular fiscal year,

  D

  is

  • (i) if no election under section 50 is in effect throughout the particular fiscal year, the investment plan’s percentage for the series, for the participating province and for the preceding taxation year, and

  • (ii) if an election under section 50 is in effect throughout the particular fiscal year, the investment plan’s percentage for the series, for the participating province and for the particular taxation year,

  E

  is the tax rate for the participating province, and

  F

  is the rate set out in subsection 165(1) of the Act.