New Harmonized Value-added Tax System Regulations (SOR/2010-117)

Marginal note:Instalment base following harmonization

• 58.1 (1) Despite subsection 237(2) of the Act, if a registrant (other than a selected listed financial institution) to which subsection 237(1) of the Act applies is resident in a specified province and is not resident in Nova Scotia, New Brunswick or Newfoundland and Labrador and a reporting period of the registrant begins in 2010, for the purpose of determining the amount of instalment payments under subsection 237(1) of the Act, if any, that become payable after the first fiscal quarter of the registrant beginning on or after July 1, 2010, the registrant’s instalment base for the reporting period is equal to the lesser of

  • (a) the amount determined under paragraph 237(2)(a) of the Act, and

  • (b) 240% of the amount determined under paragraph 237(2)(b) of the Act.

• Marginal note:Instalment base following harmonization

  (2) Despite subsection 237(2) of the Act, if a registrant (other than a selected listed financial institution) to which subsection 237(1) of the Act applies is resident in a specified province and in Nova Scotia, New Brunswick or Newfoundland and Labrador and a reporting period of the registrant begins in 2010, for the purpose of determining the amount of instalment payments under subsection 237(1) of the Act, if any, that become payable after the first fiscal quarter of the registrant beginning on or after July 1, 2010, the registrant’s instalment base for the reporting period is equal to the amount determined under paragraph 237(2)(a) of the Act.

• Marginal note:Selected listed financial institutions — instalments in transitional year

  (3) Despite subsection 237(1) of the Act, if a particular reporting period of a selected listed financial institution (other than an investment plan, as defined in subsection 1(1) of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations) ends in a particular fiscal year ending in a taxation year of the financial institution and the particular fiscal year begins before July 1, 2010 and ends on or after that day, the instalment to be paid under that subsection within one month after the end of each fiscal quarter ending on or after that day in the particular reporting period is the amount determined under whichever of the following paragraphs the financial institution has elected in prescribed form to determine the instalments for those fiscal quarters under:

  • (a) the lesser of

    • (i) 1/4 of the amount determined under paragraph 237(2)(a) of the Act, and

    • (ii) the amount determined by the formula

      A + (B/4)

      where

      A

      is the total of all amounts, each of which is determined, for a harmonized province, by the formula

      [C × D × (E/F) × (G/365)]/H

      where

      C

      is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) of the Act as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act,

      D

      is the lesser of the financial institution’s percentage for the harmonized province and for the taxation year and the financial institution’s percentage for the harmonized province and for the preceding taxation year, each determined in accordance with the prescribed rules that apply to that financial institution,

      E

      is the tax rate for the harmonized province,

      F

      is 5%,

      G

      is the number of days in the particular reporting period after June 2010, and

      H

      is the number of fiscal quarters ending on or after July 1, 2010 and in the particular reporting period, and

      B

      is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) of the Act as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act;

  • (b) the amount determined by the formula

    A + (B/4)

    where

    A

    is the total of all amounts, each of which is determined, for a harmonized province, by the formula

    [C × D × (E/F) × (G/365)]/H

    where

    C

    is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) of the Act as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act,

    D

    is the financial institution’s percentage for the harmonized province and for the preceding taxation year, determined in accordance with the prescribed rules that apply to that financial institution,

    E

    is the tax rate for the harmonized province,

    F

    is 5%,

    G

    is the number of days in the particular reporting period after June 2010, and

    H

    is the number of fiscal quarters ending on or after July 1, 2010 and in the particular reporting period, and

    B

    is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) of the Act as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act;

  • (c) the lesser of

    • (i) 1/4 of the amount determined under paragraph 237(2)(a) of the Act, and

    • (ii) the amount determined by the formula

      A + B + (C/4)

      where

      A

      is the total of all amounts, each of which is determined, for a harmonized province, by the formula

      [[(D – E) × F × (G/H) × (I/365)] – J]/K

      where

      D

      is the total of

      • (A) all tax (other than an amount of tax that is prescribed under any of section 40, paragraphs 55(2)(a), 60(a) and 63(a) and section 67 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations) that became payable under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act by the financial institution during the particular reporting period or that was paid by the financial institution during the particular reporting period without having become payable,

      • (B) all amounts each of which is tax under subsection 165(1) of the Act in respect of a supply (other than a supply to which clause (C) applies) made to the financial institution that would, but for an election made under section 150 of the Act, have become payable by the financial institution during the particular reporting period, and

      • (C) all amounts each of which is an amount, in respect of a supply made during the particular reporting period of property or a service to which an election made by the financial institution and another person under subsection 225.2(4) of the Act applies, equal to tax calculated on the cost to the other person of supplying the property or service to the financial institution excluding any remuneration to employees of the other person, the cost of financial services and tax under Part IX of the Act,

      E

      is the total of

      • (A) all input tax credits (other than input tax credits in respect of an amount of tax that is prescribed under any of section 40, paragraphs 55(2)(a), 60(a) and 63(a) and section 67 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations) of the financial institution for the particular reporting period or preceding reporting periods of the financial institution claimed by the financial institution in the return under Division V of Part IX of the Act filed by the financial institution for the particular reporting period, and

      • (B) all amounts each of which would be an input tax credit of the financial institution for the particular reporting period of the financial institution in respect of property or a service if tax became payable during the particular reporting period in respect of the supply of the property or service equal to the amount included for the particular reporting period under clause (B) or (C) of the description of D in respect of the supply,

      F

      is the lesser of the financial institution’s percentage for the harmonized province and for the taxation year and the financial institution’s percentage for the harmonized province and for the preceding taxation year, each determined in accordance with the prescribed rules that apply to that financial institution,

      G

      is the tax rate for the harmonized province,

      H

      is 5%,

      I

      is the number of days in the particular reporting period after June 2010,

      J

      is the total of

      • (A) all tax (other than an amount of tax that is prescribed under any of section 40, paragraph 55(2)(a) and section 67 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations) under subsection 165(2) of the Act in respect of supplies made in the harmonized province to the financial institution or under section 212.1 of the Act in respect of goods imported by the financial institution for use in the harmonized province that became payable by the financial institution during the fiscal quarter or that was paid by the financial institution during the fiscal quarter without having become payable, and

      • (B) all amounts each of which is an amount, in respect of a supply made during the fiscal quarter of property or a service to which an election made by the financial institution and another person under subsection 225.2(4) of the Act applies, equal to tax payable by the other person under any of subsection 165(2), sections 212.1 or 218.1 or Division IV.1 of Part IX of the Act that is included in the cost to the other person of supplying the property or service to the financial institution, and

      K

      is the number of fiscal quarters ending on or after July 1, 2010 and in the particular reporting period,

      B

      is the total of all amounts that became collectible and all other amounts collected by the financial institution in the fiscal quarter as or on account of tax under subsection 165(2) of the Act, and

      C

      is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) of the Act as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act; or

  • (d) the amount determined by the formula

    A + B + (C/4)

    where

    A

    is the total of all amounts, each of which is determined, for a harmonized province, by the formula

    [[(D – E) × F × (G/H) × (I/365)] – J]/K

    where

    D

    is the total of

    • (i) all tax (other than an amount of tax that is prescribed under any of section 40, paragraphs 55(2)(a), 60(a) and 63(a) and section 67 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations) that became payable under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act by the financial institution during a reporting period (in this paragraph referred to as the “earlier reporting period”) of the financial institution ending in the 12-month period preceding the particular reporting period or that was paid by the financial institution during the earlier reporting period without having become payable,

    • (ii) all amounts each of which is tax under subsection 165(1) of the Act in respect of a supply (other than a supply to which subparagraph (iii) applies) made to the financial institution that would, but for an election made under section 150 of the Act, have become payable by the financial institution during the earlier reporting period, and

    • (iii) all amounts each of which is an amount, in respect of a supply made during the earlier reporting period of property or a service to which an election made by the financial institution and another person under subsection 225.2(4) of the Act applies, equal to tax calculated on the cost to the other person of supplying the property or service to the financial institution excluding any remuneration to employees of the other person, the cost of financial services and tax under Part IX of the Act,

    E

    is the total of

    • (i) all input tax credits (other than input tax credits in respect of an amount of tax that is prescribed under any of section 40, paragraphs 55(2)(a), 60(a) and 63(a) and section 67 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations) of the financial institution for the earlier reporting period or preceding reporting periods of the financial institution claimed by the financial institution in the return under Division V of Part IX of the Act filed by the financial institution for the earlier reporting period, and

    • (ii) all amounts each of which would be an input tax credit of the financial institution for the earlier reporting period of the financial institution in respect of property or a service if tax became payable during the earlier reporting period in respect of the supply of the property or service equal to the amount included for the earlier reporting period under subparagraph (ii) or (iii) of the description of D in respect of the supply,

    F

    is the financial institution’s percentage for the harmonized province and for the preceding taxation year, determined in accordance with the prescribed rules that apply to that financial institution,

    G

    is the tax rate for the harmonized province,

    H

    is 5%,

    I

    is the number of days in the particular reporting period after June 2010,

    J

    is the total of

    • (i) all tax (other than an amount of tax that is prescribed under any of section 40, paragraph 55(2)(a), and section 67 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations) under subsection 165(2) of the Act in respect of supplies made in the harmonized province to the financial institution or under section 212.1 of the Act in respect of goods imported by the financial institution for use in the harmonized province that became payable by the financial institution during the fiscal quarter or that was paid by the financial institution during the fiscal quarter without having become payable, and

    • (ii) all amounts each of which is an amount, in respect of a supply made during the fiscal quarter of property or a service to which an election made by the financial institution and another person under subsection 225.2(4) of the Act applies, equal to tax payable by the other person under any of subsection 165(2), sections 212.1 or 218.1 or Division IV.1 of Part IX of the Act that is included in the cost to the other person of supplying the property or service to the financial institution, and

    K

    is the number of fiscal quarters ending on or after July 1, 2010 and in the particular reporting period,

    B

    is the total of all amounts that became collectible and all other amounts collected by the financial institution in the fiscal quarter as or on account of tax under subsection 165(2) of the Act, and

    C

    is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) of the Act as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act.

• Marginal note:Information requirements

  (4) For the purposes of this section, subsections 169(4) and (5) and 223(2) of the Act apply with respect to any amount that is included in the description of J in paragraphs (3)(c) and (d) as if that amount were an input tax credit.

• Marginal note:Exclusions

  (5) No amount of tax paid or payable by a selected listed financial institution in respect of property or services acquired, imported or brought into a harmonized province otherwise than for consumption, use or supply in the course of an endeavour, as defined in subsection 141.01(1) of the Act, of the financial institution is to be included in determining the instalment to be paid by the financial institution under subsection (3).