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

Marginal note:New series — modified real-time election

64 If units of a series of an investment plan that is a selected listed financial institution are issued, distributed or offered for sale in a fiscal 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 63 in respect of the series and the fiscal year, the investment plan may elect in prescribed form containing prescribed information to have subsection 29(4) apply in respect of the series and the fiscal year. The election is to indicate whether the investment plan’s percentages for the series are to be determined by using investor percentages and whether the investment plan’s percentages for the series are to be determined on a daily basis, a weekly basis, a monthly basis or a quarterly basis.

Mergers

Marginal note:Prescribed circumstance and day

65 For the purposes of subsection 244.1(2) of the Act,

• (a) the occurrence of a plan merger to form an investment plan is a prescribed circumstance; and

• (b) the day on which the plan merger occurs is the prescribed day in relation to the investment plan.

Marginal note:Investment plan merger

66 If a plan merger occurs to form an investment plan that is, immediately after the plan merger, a selected listed financial institution, the following rules apply:

• (a) for the purposes of these Regulations, subsection 225.2(1) of the Act, subsection 225.2(2) of the Act as adapted by these Regulations and section 225.3 of the Act, the fiscal year of the investment plan (in this section referred to as the “preceding fiscal year”) that precedes the fiscal year of the investment plan (in this section referred to as the “merger fiscal year”) that includes the day on which the plan merger occurs and the merger fiscal year are each deemed to end in a different taxation year of the investment plan and both of those taxation years are deemed to immediately follow each other in the same order as the corresponding fiscal years; and

• (b) if an election made by the investment plan under section 50 is in effect throughout the preceding fiscal year and the plan merger occurs on or before September 30 of the calendar year in which the preceding fiscal year ends, for the purposes of Part 2 and this Part and despite the meaning of attribution point as set out in subsections 16(1) and 18(3), attribution point in respect of a series of the investment plan or in respect of the investment plan, as the case may be, and for the taxation year in which the preceding fiscal year ends means

  • (i) if an election under subsection 18(1) in respect of the series or an election under subsection 18(2) in respect of the investment plan is in effect throughout the preceding fiscal year,

    • (A) each day, if any, that would be an attribution point, in the absence of this paragraph, in respect of the series or the investment plan, as the case may be, and for the taxation year under subsection 18(3), and

    • (B) the day preceding the day on which the plan merger occurs,

  • (ii) if the series is an exchange-traded series or if the investment plan is an exchange-traded fund,

    • (A) each day, if any, that would be an attribution point, in the absence of this paragraph, in respect of the series or the particular investment plan, as the case may be, and for the taxation year under subparagraph (a)(i) or (b)(ii), as applicable, of the definition attribution point in section 16, and

    • (B) the last day of the month preceding the month that includes the day on which the plan merger occurs, and

  • (iii) in any other case, the day preceding the day on which the plan merger occurs.

2010 Transitional Rules for Investment Plans

New Selected Listed Financial Institutions

Marginal note:Exclusion from subsection 225.2(2) formula

67 If an investment plan is a selected listed financial institution throughout the particular reporting period of the investment plan that includes July 1, 2010 and was not a selected listed financial institution throughout the reporting period of the investment plan that precedes the particular reporting period, for the purposes of paragraph (a) of the description of A and paragraph (a) of the description of F in subsection 225.2(2) of the Act, any amount of tax under Part IX of the Act that became payable by the investment plan before that day or that was paid by the investment plan before that day without having become payable is a prescribed amount of tax.

Attribution Point

Marginal note:Attribution point — series of stratified investment plan

• 68 (1) For the purposes of Part 2 and section 69 and despite the meaning of attribution point as set out in subsections 16(1) and 58(2), if an investment plan is a stratified investment plan and no election under subsection 18(1) is in effect in respect of a series of the investment plan throughout any fiscal year of the investment plan that ends after June 30, 2010 and before January 1, 2011, attribution point in respect of the series for all taxation years of the investment plan in which any such fiscal year ends and for the taxation year preceding the earliest of those taxation years means the day determined by the investment plan that is on or after July 1, 2009 and before July 1, 2010.

• Marginal note:Attribution point — non-stratified investment plan

  (2) For the purposes of Part 2 and section 70 and despite the meaning of attribution point as set out in subsections 16(1) and 58(1), if an investment plan is a non-stratified investment plan and no election under subsection 18(2) is in effect in respect of the investment plan throughout any fiscal year of the investment plan that ends after June 30, 2010 and before January 1, 2011, attribution point in respect of the investment plan for all taxation years of the investment plan in which any such fiscal year ends and for the taxation year preceding the earliest of those taxation years means the day determined by the investment plan that is on or after July 1, 2009 and before July 1, 2010.

Percentages for Distributed Investment Plans

Marginal note:Stratified investment plan

69 Despite section 30, if a selected listed financial institution is a stratified investment plan, no election under section 49 or 64 is in effect in respect of any series of the financial institution throughout a particular fiscal year of the financial institution that ends after June 2010 and before January 2011, no election is in effect under section 50 throughout the particular fiscal year and the financial institution has elected in prescribed form containing prescribed information to have this section apply to each series, other than an exchange-traded series, of the financial institution, the financial institution’s percentage for each of those series, for each participating province and for each specified taxation year — being the taxation year of the financial institution in which the particular fiscal year ends and the taxation year of the financial institution preceding that taxation year — is the percentage that would be the financial institution’s percentage determined under section 30 for the series, for the participating province and for the specified taxation year if

• (a) where, on an attribution point in respect of the series for the specified taxation year, less than 10% of the total value of the units of the series are held by persons (in this section referred to as “institutional investors”) that are neither individuals nor specified investors in the financial institution for the particular fiscal year, all units of the series held, on the attribution point, by unknown institutional investors — each of which is an institutional investor in respect of which the financial institution does not know, on December 31, 2010, the institutional investor’s investor percentage for each participating province as of the attribution point — did not exist on the attribution point;

• (b) where paragraph (a) does not apply in respect of an attribution point in respect of the series for the specified taxation year and, on the attribution point, less than 10% of the total value of the units of the series held by institutional investors are held by particular institutional investors in respect of which the financial institution does not know, on December 31, 2010, the institutional investor’s investor percentage for each participating province as of the attribution point, all units of the series held, on the attribution point, by the particular institutional investors did not exist on the attribution point;

• (c) where paragraphs (a) and (b) do not apply in respect of an attribution point in respect of the series for the specified taxation year, any institutional investor that holds, on the attribution point, units of the series were an individual;

• (d) any reference in section 30 to “October 15 of the calendar year” were a reference to “December 31, 2010”; and

• (e) any reference in section 30 to “December 31 of the calendar year” were a reference to “December 31, 2010”.

Marginal note:Non-stratified investment plans

70 Despite section 32, if a selected listed financial institution is a non-stratified investment plan (other than an exchange-traded fund) in respect of which no election under any of sections 49, 50 and 61 is in effect throughout a particular fiscal year of the financial institution that ends after June 2010 and before January 2011 and the financial institution has elected in prescribed form containing prescribed information to have this section apply, the financial institution’s percentage for each participating province and for each specified taxation year — being the taxation year of the financial institution in which the particular fiscal year ends and the taxation year of the financial institution preceding that taxation year — is the percentage that would be the financial institution’s percentage determined under section 32 for the participating province and for the specified taxation year if

• (a) where, on an attribution point in respect of the financial institution for the specified taxation year, less than 10% of the total value of the units of the financial institution are held by persons (in this section referred to as “institutional investors”) that are neither individuals nor specified investors in the financial institution for the particular fiscal year, all units of the financial institution held, on the attribution point, by unknown institutional investors — each of which is an institutional investor in respect of which the financial institution does not know, on December 31, 2010, the institutional investor’s investor percentage for each participating province as of the attribution point — did not exist on the attribution point;

• (b) where paragraph (a) does not apply in respect of an attribution point in respect of the financial institution for the specified taxation year and, on the attribution point, less than 10% of the total value of the units of the financial institution held by institutional investors are held by particular institutional investors in respect of which the financial institution does not know, on December 31, 2010, the institutional investor’s investor percentage for each participating province as of the attribution point, all units of the financial institution held, on the attribution point, by the particular institutional investors did not exist on the attribution point;

• (c) where paragraphs (a) and (b) do not apply in respect of an attribution point in respect of the financial institution for the specified taxation year, any institutional investor that holds, on the attribution point, units of the financial institution were an individual;

• (d) any reference in section 32 to “October 15 of the calendar year” were a reference to “December 31, 2010”; and

• (e) any reference in section 32 to “December 31 of the calendar year” were a reference to “December 31, 2010”.

Marginal note:Investment plans — paragraph 149(1)(o.2) of Income Tax Act

70.1 If an investment plan is a corporation (other than a pension entity) that is exempt from tax under the Income Tax Act by reason of paragraph 149(1)(o.2) of that Act and if, for a reporting period of the investment plan throughout which the investment plan was a selected listed financial institution and for which a return was filed on or after July 1, 2010 but before May 8, 2013, the investment plan reported in the return for the reporting period an amount on account of net tax that was determined as though section 23 applied in respect of the reporting period, the investment plan may elect in prescribed form containing prescribed information to have that section apply, and to have paragraph 3(e) and sections 29 to 34 not apply, in respect of all reporting periods of the investment plan for which a return was filed on or after July 1, 2010 but before May 8, 2013.

Marginal note:Production of address

• 71 (1) Every person that is resident in Canada, that holds units in a non-stratified investment plan (other than an exchange-traded fund) that is a selected listed financial institution or in a series (other than an exchange-traded series) of a stratified investment plan that is a selected listed financial institution and that is neither an individual nor a specified investor in the investment plan must, if the investment plan makes a written request, provide to the investment plan the person’s address that determines in accordance with section 5 the province in which the person is resident on a day that is on or after July 1, 2009 and before July 1, 2010 and that is set out in the request and the number of units held on that day by the person in the non-stratified investment plan, or in each series (other than an exchange-traded series) of the stratified investment plan, on or before the particular day that is 45 days after the day on which the person received the request.

• Marginal note:Use of information

  (2) A distributed investment plan that obtains any information in respect of a person in accordance with subsection (1) must not knowingly use, communicate or allow to be used or communicated, otherwise than as required or authorized under the Act, these Regulations or any other regulation made under the Act, the information without the written consent of that person.

• Marginal note:Penalty — failure to provide information

  (3) Every person that fails to provide, on request made by a distributed investment plan under subsection (1), the information described in that subsection to the investment plan on or before the particular day described in that subsection, or that misstates such information to the investment plan, is liable to a penalty, for each such failure, equal to the lesser of $10,000 and 0.01% of the total value, on the day set out in the request, of the units of the investment plan in respect of which that person was required to provide information to the investment plan in accordance with that subsection.