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

Regulations are current to 2024-10-30 and last amended on 2023-06-22. Previous Versions

PART 5Investment Plans

Interpretation

Marginal note:Definitions

  • 47 (1) For the purposes of this Part,

    • (a) plan merger and specified investor have the same meanings as in subsection 16(1); and

    • (b) attribution point

      • (i) if an election under subsection 18(1) is in effect, has the same meaning as in subsection 18(3), and

      • (ii) in any other case, has the same meaning as in subsection 16(1).

  • Marginal note:Investor percentage

    (2) For the purposes of this Part, the investor percentage of a person for a participating province as of a particular day is the investor percentage of the person for the participating province as of that day as determined under section 28.

  • SOR/2013-71, s. 2

Net Tax Adjustment for Investment Plans

Marginal note:Adaptation of subsection 225.2(2) of Act — stratified plans

  • 48 (1) In applying subsection 225.2(2) of the Act for the determination of the net tax for a particular reporting period in a fiscal year that ends in a taxation year of a stratified investment plan, the formula in that subsection and the descriptions for that formula are adapted as follows:

    [A × (B/C)] – D + E

    where

    A
    is the total of all amounts, each of which is the amount determined for a series of the financial institution (other than a provincial series of the financial institution for the fiscal year) and is equal to

    • (a) if an election under section 49 or 64 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations is in effect in respect of the series throughout the particular reporting period, the total of all amounts, each of which is the positive or negative amount determined for a particular day in the particular reporting period, by the formula

      (A1 – A2) × A3

      where

      A1
      is the total of

      • (i) all amounts of tax (other than an amount of tax that is prescribed under any of section 40, paragraph 55(2)(a) and section 67 of those Regulations) in respect of a supply or importation of property or a service that became payable under any of subsection 165(1) and sections 212, 218 and 218.01 by the financial institution on the particular day or that was paid by the financial institution on the particular day without having become payable, 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, as determined under section 51 of those Regulations,

      • (ii) all amounts each of which is tax under subsection 165(1) in respect of a supply (other than a supply to which subparagraph (iii) applies) of property or a service made by a person to the financial institution that would, in the absence of an election made under section 150, have become payable by the financial institution on the particular day, to the extent that the property or service was acquired for consumption, use or supply in the course of the activities relating to the series, as determined under section 51 of those Regulations, and

      • (iii) all amounts each of which is an amount — in respect of a supply of property or a service that is made on the particular day by another person to the financial institution and to which an election made by the financial institution under subsection (4) applies — equal to tax calculated at the rate set out in subsection 165(1) 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 this Part, to the extent that the property or service was acquired for consumption, use or supply in the course of the activities relating to the series, as determined under section 51 of those Regulations,

      A2
      is the total of

      • (i) all amounts each of which is the amount determined by the formula

        F × G

        where

        F
        is an input tax credit (other than an input tax credit in respect of an amount of tax that is prescribed under any of section 40, paragraph 55(2)(a) and section 67 of those Regulations) of the financial institution for the particular reporting period or preceding reporting periods of the financial institution in respect of the acquisition or importation of property or a service that is claimed by the financial institution in the return under this Division filed by the financial institution for the particular reporting period, 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, as determined under section 51 of those Regulations, and
        G
        is the extent (expressed as a percentage) to which the amount determined for F was not included in the determination of A2 for any other day in the particular reporting period, and

      • (ii) 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 and that tax were equal to the amount included for the series for any day in the particular reporting period under subparagraph (ii) or (iii) of the description of A1 in respect of the supply, to the extent that the amount was not included in the determination of A2 for any other day in the particular reporting period, and

      A3
      is the financial institution’s percentage for the series and for the participating province, determined for financial institutions of that class in accordance with those Regulations,

      • (i) as of the first business day of the calendar quarter that includes the particular day, or any other day of that quarter that the Minister may allow on application by the financial institution, if the election under section 49 or 64 of those Regulations indicates that the financial institution’s percentages are to be determined on a quarterly basis,

      • (ii) as of the first business day of the calendar month that includes the particular day, or any other day of that month that the Minister may allow on application by the financial institution, if the election under section 49 or 64 of those Regulations in respect of the series indicates that the financial institution’s percentages for the series are to be determined on a monthly basis,

      • (iii) as of the first business day of the week that includes the particular day, or any other day of that week that the Minister may allow on application by the financial institution, if the election under section 49 or 64 of those Regulations in respect of the series indicates that the financial institution’s percentages for the series are to be determined on a weekly basis, or

      • (iv) as of the particular day in any other case, or

    • (b) if no election under section 49 or 64 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations is in effect in respect of the series throughout the particular reporting period, the positive or negative amount determined by the formula

      (A4 – A5) × A6

      where

      A4
      is the total of

      • (i) all amounts of tax (other than an amount of tax that is prescribed under any of section 40, paragraphs 55(2)(a) and 63(a) and section 67 of those Regulations) in respect of a supply or importation of property or a service that became payable under any of subsection 165(1) and sections 212, 218 and 218.01 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, 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, as determined under section 51 of those Regulations,

      • (ii) all amounts each of which is tax under subsection 165(1) in respect of a supply (other than a supply to which subparagraph (iii) applies) of property or a service made by a person to the financial institution that would, in the absence of an election made under section 150, have become payable by the financial institution during the particular reporting period, to the extent that the property or service was acquired for consumption, use or supply in the course of the activities relating to the series, as determined under section 51 of those Regulations, and

      • (iii) all amounts each of which is an amount — in respect of a supply of property or a service that is made during the particular reporting period by another person to the financial institution and to which an election made by the financial institution under subsection (4) applies — equal to tax calculated at the rate set out in subsection 165(1) 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 this Part, to the extent that the property or service was acquired for consumption, use or supply in the course of the activities relating to the series, as determined under section 51 of those Regulations,

      A5
      is the total of

      • (i) all amounts, each of which is an input tax credit (other than an input tax credit in respect of an amount of tax that is prescribed under any of section 40, paragraphs 55(2)(a) and 63(a) and section 67 of those Regulations) of the financial institution for the particular reporting period or preceding reporting periods of the financial institution in respect of the acquisition or importation of property or a service that is claimed by the financial institution in the return under this Division filed by the financial institution for the particular reporting period, 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, as determined under section 51 of those Regulations, and

      • (ii) 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 and that tax were equal to the amount included for the particular reporting period under subparagraph (ii) or (iii) of the description of A4 in respect of the supply, and

      A6
      is

      • (i) if an election under section 50 of those Regulations is in effect throughout the particular reporting period, the financial institution’s percentage for the series, for the participating province and for the taxation year, determined for financial institutions of that class in accordance with those Regulations, and

      • (ii) in any other case, the financial institution’s percentage for the series, for the participating province and for the preceding taxation year of the financial institution, determined for financial institutions of that class in accordance with those Regulations;

    B
    is the tax rate for the participating province;
    C
    is the rate set out in subsection 165(1);
    D
    is the total of

    • (a) all amounts, each of which is an amount of tax (other than an amount of tax that is prescribed under any of section 40, paragraph 55(2)(a) and section 67 and of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations) under subsection 165(2) in respect of a supply made in the participating province to the financial institution, or under section 212.1 that was calculated at the tax rate for the participating province, that

      • (i) became payable, or was paid without having become payable, during

        • (A) the particular reporting period, or

        • (B) any other reporting period of the financial institution that precedes the particular reporting period, provided that

          • (I) the particular reporting period ends within two years after the end of the financial institution’s fiscal year that includes the other reporting period, and

          • (II) the financial institution was a selected listed financial institution throughout the other reporting period,

      • (ii) was not deducted in determining an amount that, under this subsection, is required to be added to or may be deducted from the net tax for any reporting period of the financial institution other than the particular reporting period, and

      • (iii) is claimed by the financial institution in a return under this Division filed by the financial institution for the particular reporting period, and

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

    E
    is the total of all amounts, each of which is a positive or negative amount that is prescribed for the purpose of the description of G of this subsection if this subsection were read without reference to any adaptation made to it under the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations.

  • Marginal note:Adaptation of subsection 225.2(2) of Act — non-stratified plans with real-time

    (2) In applying subsection 225.2(2) of the Act for the determination of the net tax for a particular reporting period in a fiscal year that ends in a taxation year of a non-stratified investment plan and throughout which an election under section 49 or 61 is in effect, the formula in that subsection and the descriptions for that formula are adapted as follows:

    [A × (B/C)] – D + E

    where

    A
    is the total of all positive or negative amounts, each of which is determined for a particular day in the particular reporting period by the formula

    (A1 – A2) × A3

    where

    A1
    is the total of

    • (a) all amounts of 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) in respect of a supply or importation of property or service that became payable under any of subsection 165(1) and sections 212, 218 and 218.01 by the financial institution on the particular day or that was paid by the financial institution on the particular day without having become payable,

    • (b) all amounts each of which is tax under subsection 165(1) in respect of a supply (other than a supply to which paragraph (c) applies) of property or a service made by a person to the financial institution that would, in the absence of an election made under section 150, have become payable by the financial institution on the particular day, and

    • (c) all amounts each of which is an amount — in respect of a supply of property or a service that is made on the particular day by another person to the financial institution and to which an election made by the financial institution under subsection (4) applies — equal to tax calculated at the rate set out in subsection 165(1) 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 this Part,

    A2
    is the total of

    • (a) all amounts, each of which is an input tax credit (other than an input tax credit in respect of 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) 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 this Division filed by the financial institution for the particular reporting period, to the extent that the amount was not included in the determination of A2 for any other day in 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 and that tax were equal to the amount included for any day in the particular reporting period under paragraph (b) or (c) of the description of A1 in respect of the supply, to the extent that the amount was not included in the determination of A2 for any other day in the particular reporting period, and

    A3
    is the financial institution’s percentage for the participating province, determined for financial institutions of that class in accordance with the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,

    • (a) as of the first business day of the calendar quarter that includes the particular day, or any other day of that quarter that the Minister may allow on application by the financial institution, if the election under section 49 or 61 of those Regulations indicates that the financial institution’s percentages are to be determined on a quarterly basis,

    • (b) as of the first business day of the calendar month that includes the particular day, or any other day of that month that the Minister may allow on application by the financial institution, if the election under section 49 or 61 of those Regulations indicates that the financial institution’s percentages are to be determined on a monthly basis,

    • (c) as of the first business day of the week that includes the particular day, or any other day of that week that the Minister may allow on application by the financial institution, if the election under section 49 or 61 of those Regulations indicates that the financial institution’s percentages are to be determined on a weekly basis, or

    • (d) as of the particular day in any other case;

    B
    is the tax rate for the participating province;
    C
    is the rate set out in subsection 165(1);
    D
    is the total of

    • (a) all amounts, each of which is an amount of 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) in respect of a supply made in the participating province to the financial institution, or under section 212.1 that was calculated at the tax rate for the participating province, that

      • (i) became payable, or was paid without having become payable, during

        • (A) the particular reporting period, or

        • (B) any other reporting period of the financial institution that precedes the particular reporting period, provided that

          • (I) the particular reporting period ends within two years after the end of the financial institution’s fiscal year that includes the other reporting period, and

          • (II) the financial institution was a selected listed financial institution throughout the other reporting period,

      • (ii) was not deducted in determining an amount that, under this subsection, is required to be added to or may be deducted from the net tax for any reporting period of the financial institution other than the particular reporting period, and

      • (iii) is claimed by the financial institution in a return under this Division filed by the financial institution for the particular reporting period, and

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

    E
    is the total of all amounts, each of which is a positive or negative amount that is prescribed for the purpose of the description of G of this subsection if this subsection were read without reference to any adaptation made to it under the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations.

  • Marginal note:Adaptation of C in subsection 225.2(2) of Act

    (3) If a selected listed financial institution is an investment plan, neither subsection (1) nor (2) applies in respect of a particular reporting period in a fiscal year that ends in a taxation year of the financial institution and no election under section 50 is in effect throughout the fiscal year, in determining the net tax for the particular reporting period, the description of C in the formula in subsection 225.2(2) of the Act is adapted to be read as “is the financial institution’s percentage for the participating province and for the preceding taxation year, determined for financial institutions of that class in accordance with the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations;”.

  • Marginal note:Adaptation of subsection 225.2(7) of Act

    (4) In determining the net tax for a reporting period in respect of which subsection (1) or (2) applies, the reference in subsection 225.2(7) of the Act to “the description of F in subsection (2)” is adapted to be read as a reference to “the description of D in subsection (2) as adapted by section 48 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations”.

  • Marginal note:Instalment base — investment plan with real-time

    (5) If an investment plan is a non-stratified investment plan and an election under section 49 or 61 is in effect throughout a fiscal year of the investment plan or if an investment plan is a stratified investment plan and an election under section 49 or 64 is in effect in respect of every series of the investment plan throughout a fiscal year of the investment plan, subsection 237(1) of the Act is adapted as follows for each reporting period of the investment plan in the fiscal year:

    • 237 (1) If the reporting period of a registrant is a fiscal year or a period determined under subsection 248(3), the registrant shall, within one month after the end of each fiscal quarter of the registrant ending in the reporting period, pay to the Receiver General an instalment equal to the amount that would be the net tax of the registrant for the fiscal quarter if the fiscal quarter were a reporting period of the registrant.

  • Marginal note:Instalment base — stratified plan

    (6) If an investment plan is a stratified investment plan, if subsection (5) does not apply in respect of a reporting period of the investment plan and if an election under section 50 is in effect throughout the reporting period, the following rules apply:

  • Marginal note:Instalment base — other investment plans

    (7) If neither subsection (5) nor (6) applies in respect of a reporting period of an investment plan and an election under section 50 is in effect throughout the reporting period, the following rules apply:

    • (a) the description of A in the formula in subparagraph 237(2)(a)(i) of the Act is adapted for the reporting period to be read as “is the amount that would be the net tax for the particular reporting period if the description of C in subsection 225.2(2) were read as “is the financial institution’s percentage for the participating province and for the preceding taxation year of the financial institution, determined for financial institutions of that class in accordance with the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations”, and”; and

    • (b) subparagraph 237(2)(a)(ii) of the Act is adapted as follows for the reporting period:

      • (ii) in any other case, the amount that would be the net tax of the person for the particular reporting period if the description of C in subsection 225.2(2) were read as “is the financial institution’s percentage for the participating province and for the preceding taxation year of the financial institution, determined for financial institutions of that class in accordance with the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations”, and

  • Marginal note:Interim remittance — real-time

    (8) If no election under section 50 is in effect throughout a fiscal year of an investment plan, if an election under section 49 or 61 is in effect throughout a fiscal year of a non-stratified investment plan or if an election under section 49 or 64 is in effect in respect of every series of a stratified investment plan throughout a fiscal year of the investment plan, paragraph 228(2.1)(a) of the Act is adapted as follows for each reporting period of the investment plan in the fiscal year:

    • (a) the person shall calculate in the interim return the amount (in this Part referred to as the “interim net tax”) that is the net tax of the person for the reporting period; and

  • Marginal note:Interim remittance — stratified plans

    (9) If an investment plan is a stratified investment plan and neither subsection (8) nor paragraph 62(b) apply in respect of a reporting period of the investment plan, paragraph 228(2.1)(a) of the Act is adapted as follows for the reporting period:

  • Marginal note:Interim remittance — other cases

    (10) If none of subsections (8) and (9) and paragraph 59(b) apply in respect of a reporting period of an investment plan, paragraph 228(2.1)(a) of the Act is adapted as follows for the reporting period:

    • (a) the person shall calculate in the interim return the amount (in this Part referred to as the “interim net tax”) that would be the net tax of the person for the reporting period if the description of C in subsection 225.2(2) were read as “is the financial institution’s percentage for the participating province and for the preceding taxation year, determined in accordance with the prescribed rules that apply to financial institutions of that class”; and

  • Marginal note:First fiscal year — instalment base and interim remittance

    (11) In respect of each reporting period in a fiscal year of an investment plan, subsections 228(2.2) and 237(5) of the Act do not apply.

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