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

Trust and Loan Corporations

Marginal note:Determination of percentage

• 26 (1) If a selected listed financial institution is a trust and loan corporation, a trust corporation or a loan corporation, the financial institution’s percentage for a particular period and for a participating province in which the financial institution has a permanent establishment is the percentage that the gross revenue for the particular period of its permanent establishments in the participating province is of the total gross revenue for the particular period of its permanent establishments in Canada.

• Marginal note:Determination of gross revenue

  (2) In subsection (1), gross revenue for the particular period of its permanent establishments in the participating province means, in relation to a financial institution, the total of the gross revenue of the financial institution for the particular period arising from

  • (a) loans secured by land situated in the participating province;

  • (b) loans, not secured by land, made to persons residing in the participating province;

  • (c) loans, other than loans secured by land situated in a country other than Canada in which the financial institution has a permanent establishment,

    • (i) made to persons residing in a country other than Canada in which the financial institution does not have a permanent establishment, and

    • (ii) administered by a permanent establishment in the participating province; and

  • (d) business conducted at its permanent establishments in the participating province, other than business that gives rise to revenue in respect of loans.

Qualifying Partnerships

Marginal note:Determination of percentage

27 If a selected listed financial institution, other than an insurer, is a qualifying partnership, the financial institution’s percentage for a participating province for a particular period is

• (a) if all the members of the qualifying partnership are individuals, the percentage that would be determined under section 22 for the participating province for the particular period if the qualifying partnership were an individual; and

• (b) in any other case, the percentage that would be determined under section 23 for the participating province for the particular period if the qualifying partnership were a corporation.

Investment Plans

General Rules

Marginal note:Investor percentage

28 For the purposes of determining an investment plan’s percentage for a particular series and for a participating province under section 29 or 30 or determining a particular investment plan’s percentage for a participating province under section 31 or 32 (in this section, the particular series or particular investment plan, as the case may be, is referred to as the “investee”), the investor percentage for a participating province of a particular person that holds units of the investee is, as of a particular day,

• (a) if the particular person is a selected listed financial institution and a non-stratified investment plan, the percentage that would be the particular person’s percentage for the participating province as of the particular day if an election under section 49 in respect of the particular person were in effect throughout the fiscal year of the particular person that includes the particular day;

• (b) if the particular person is a selected listed financial institution and a stratified investment plan, the percentage that is the total of all amounts, each of which is determined for a particular series of the particular person by the formula

  A × (B/C)

  where

  A

  is the percentage that would be the particular person’s percentage for the particular series and the participating province as of the particular day if an election under section 49 in respect of the particular series were in effect throughout the fiscal year of the particular person that includes the particular day,

  B

  is the total value on the particular day of the units of the investee held by the particular person that are reasonably attributable to the particular series of the particular person, and

  C

  is the total value on the particular day of all of the units of the investee held by the particular person;

• (c) if the particular person is a selected listed financial institution not described in paragraph (a) or (b), the particular person’s percentage for the participating province and for the taxation year of the particular person in which the fiscal year that includes the following reporting period of the particular person ends:

  • (i) if the person was previously required to file a return under Division V of Part IX of the Act, the reporting period for which the last such return was required to be filed by the particular person on or before the particular day, and

  • (ii) in any other case, the reporting period for which a return would have been required to be filed under Division V of Part IX of the Act by the particular person, that would be the last such return that was required to be so filed by the particular person on or before the particular day, if the particular person were a registrant at all times;

• (d) if the particular person is a qualifying small investment plan for the purposes of Part 1 and is not a selected listed financial institution, the amount that would, if the particular person were a selected listed financial institution, be the particular person’s percentage for the participating province and for the taxation year of the particular person in which the fiscal year that includes the following reporting period of the particular person ends:

  • (i) if the person was previously required to file a return under Division V of Part IX of the Act, the reporting period for which the last such return was required to be filed by the particular person on or before the particular day, and

  • (ii) in any other case, the reporting period for which a return would have been required to be filed under Division V of Part IX of the Act by the particular person, that would be the last such return that was required to be so filed by the particular person on or before the particular day, if the particular person were a registrant at all times; and

• (e) in any other case, the percentage determined by the formula

  A/B

  where

  A

  is the amount that would be the particular person’s taxable income earned in the participating province, as determined for the purposes of the Income Tax Act under the rules prescribed in Parts IV and XXVI of the Income Tax Regulations, in the particular taxation year of the particular person — being the last taxation year of the particular person for which a return is required to be filed under that Act on or before the particular day or, if the particular person was never required to file a return under that Act on or before the particular day, the last taxation year of the person ending on or before the particular day — if

  • (i) the particular person were a taxpayer under that Act,

  • (ii) every reference in that Act and those Regulations to a permanent establishment of the particular person were read as a reference to a permanent establishment of the particular person as determined in accordance with subsection 132.1(2) of the Act,

  • (iii) in the case of a partnership or a body (other than a corporation or a trust) that is a society, union, club, association, commission or other organization of any kind,

    • (A) the particular person were a corporation, and

    • (B) anything done by another person that is a member of the particular person had been done by the particular person in the course of the particular person’s activities, and

  • (iv) in the case of a trust, or an estate or succession of a deceased individual,

    • (A) the particular person were an individual,

    • (B) the province of residency of the particular person were determined in accordance with whichever of paragraphs 5(c) to (e) is applicable, and

    • (C) anything done by another person in the person’s capacity as trustee, executor, administrator, liquidator of a succession, heir or other legal representative having ownership or control of the property of the trust, estate or succession had been done by the particular person, and

  B

  is the amount that would be the particular person’s total taxable income for the purposes of the Income Tax Act for the particular taxation year if

  • (i) the particular person were a taxpayer under that Act,

  • (ii) in the case of a partnership or a body (other than a corporation or a trust) that is a society, union, club, association, commission or other organization of any kind,

    • (A) the particular person were a corporation, and

    • (B) anything done by another person that is a member of the particular person had been done by the particular person in the course of the particular person’s activities, and

  • (iii) in the case of a trust, or an estate or succession of a deceased individual,

    • (A) the particular person were an individual, and

    • (B) anything done by another person in the person’s capacity as trustee, executor, administrator, liquidator of a succession, heir or other legal representative having ownership or control of the property of the trust, estate or succession had been done by the particular person.

Stratified Investment Plans

Marginal note:Percentage — real time

• 29 (1) If a selected listed financial institution is a stratified investment plan and an election under section 49 is in effect in respect of a series of the financial institution throughout a particular fiscal year of the financial institution, the financial institution’s percentage for the series and 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 series 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 series 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 series 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 series 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(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 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 series 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 series 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 series 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 series 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 series 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(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 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 series 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 a series of a stratified investment plan and any particular day in a fiscal year of the investment plan, the total of all amounts — each of which is the total value of the particular units of the series 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 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 series on that day, the following rules apply:

  • (a) the units of the series, 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 the series and 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 stratified investment plan, an election under section 49 is in effect in respect of a series 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 series is held by persons other than individuals and specified investors in the investment plan 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 series is held by persons other than individuals and specified investors in the investment plan 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 the series and for a participating province is required to be determined under subsection 225.2(2) of the Act, the financial institution’s percentage for the series and for a participating province as of every day in the particular fiscal year is

    • (i) if no election under section 49 or 64 is in effect in respect of the series throughout the fiscal year (referred to in this paragraph as the “preceding fiscal year”) of the investment plan preceding the particular fiscal year, the financial institution’s percentage for the series and for the participating province 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 series and 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 the series and 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 series and 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 series is held by persons other than individuals and specified investors in the investment plan 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 series — elected method

  (4) If a selected listed financial institution is a stratified investment plan and an election under section 64 is in effect in respect of a series of the financial institution throughout a particular fiscal year of the financial institution, the following rules apply for the purposes of determining the financial institution’s percentage for the series and 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 for the series are to be determined by using investor percentages, subsections (1) and (2) apply for the purpose of determining the financial institution’s percentage for the series and 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 the series and 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 series 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 series 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 series 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 series 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 the series and 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 series 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 series 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 series 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 series 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 series 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 series on that day,

      • (A) the units of the series, 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 the series and 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.