New Harmonized Value-added Tax System Regulations, No. 2

Marginal note:Prescribed purposes and extent — paragraph 218.1(1)(a) of Act

7 For the purposes of paragraph 218.1(1)(a) of the Act,

• (a) a prescribed purpose in respect of a supply of property or a service made to a stratified investment plan with one or more provincial series is the purpose of consuming, using or supplying the property or service in the course of activities relating to one or more provincial series of the investment plan for the participating provinces to an extent (expressed as a percentage) of at least 10%, where that extent (expressed as a percentage) is determined by the formula

  A/B

  where

  A

  is the total of all amounts, each of which is the extent to which the property or service is acquired for consumption, use or supply in the course of activities relating to a provincial series of the investment plan for a participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations, and

  B

  is the total of all amounts, each of which is the extent to which the property or service is acquired for consumption, use or supply in the course of activities relating to a provincial series of the investment plan for any province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations;

• (b) a prescribed purpose in respect of a supply of property or a service made to a provincial investment plan is the purpose of consuming, using or supplying the property or service in the course of the activities of the provincial investment plan; and

• (c) the prescribed extent is an extent of at least 10%.