Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations (SOR/2001-171)
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Regulations are current to 2024-11-26 and last amended on 2023-06-22. Previous Versions
PART 2Percentage for a Participating Province (continued)
Investment Plans (continued)
Pension Plans and Private Investment Plans (continued)
Marginal note:Percentage — employee benefit plans
37 (1) If a selected listed financial institution is a private investment plan that is an employee life and health trust or a trust governed by an employee benefit plan, an employee trust or a registered supplementary unemployment benefit plan in a particular period in which a fiscal year of the financial institution ends, the financial institution’s percentage for a participating province and for the particular period is
(a) in the case of any one participating province (in this section referred to as the “selected province”) having the highest tax rate on the first day of the fiscal year, the percentage determined by the formula
A/B
where
- A
- is the total of all amounts, each of which is determined for an attribution point in respect of the financial institution for the particular period by the formula
(A1/A2) + [A3 × (A1/A4)] + [(1 – A3) – (A4/A2)]
where
- A1
- is the total number of plan members of the investment plan that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, are resident in the selected province on the attribution point,
- A2
- is the total number of plan members of the investment plan other than plan members of the investment plan that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, are not resident in Canada on the attribution point,
- A3
- is the lesser of 0.1 and the amount determined by the formula
C/D
where
- C
- is the total number of plan members of the investment plan in respect of each of which the financial institution, on December 31 of the calendar year in which the fiscal year ends,
(i) does not know whether or not the plan member is resident in Canada on the attribution point, or
(ii) knows that the plan member is resident in Canada on the attribution point but does not know the province in which the plan member is resident on the attribution point, and
- D
- is the amount determined for A2, and
- A4
- is the total number of plan members of the investment plan resident in Canada on the attribution point in respect of each of which the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, the province in which the plan member is resident on the attribution point, and
- B
- is the number of attribution points in respect of the financial institution for the particular period;
(b) in the case of a participating province (other than the selected province) in which the financial institution has a permanent establishment in the particular period, the percentage determined by the formula
A/B
where
- A
- is the total of all amounts, each of which is determined for an attribution point in respect of the financial institution for the particular period by the formula
(A1/A2) + [A3 × (A1/A4)]
where
- A1
- is the total number of plan members of the investment plan that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, are resident in the participating province on the attribution point,
- A2
- is the total number of plan members of the investment plan other than plan members of the investment plan that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, are not resident in Canada on the attribution point,
- A3
- is the lesser of 0.1 and the amount determined by the formula
C/D
where
- C
- is the total number of plan members of the investment plan in respect of each of which the financial institution, on December 31 of the calendar year in which the fiscal year ends,
(i) does not know whether or not the plan member is resident in Canada on the attribution point, or
(ii) knows that the plan member is resident in Canada on the attribution point but does not know the province in which the plan member is resident on the attribution point, and
- D
- is the amount determined for A2, and
- A4
- is the total number of plan members of the investment plan resident in Canada on the attribution point in respect of each of which the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, the province in which the plan member is resident on the attribution point, and
- B
- is the number of attribution points in respect of the financial institution for the particular period; and
(c) in the case of any other participating province, nil.
Marginal note:Attribution of plan members to a participating province
(2) For the purposes of subsection (1), if, for any attribution point in respect of an investment plan for a particular period in which a fiscal year of the investment plan ends, the total number of plan members (in this subsection referred to as the “known members”) of the investment plan in respect of each of which the investment plan knows, on December 31 of the calendar year in which the fiscal year ends, whether or not the plan member is resident in Canada on the attribution point and, in the case of plan members resident in Canada, the province in which the plan member is resident on the attribution point is less than 50% of the total number of plan members of the investment plan on the attribution point, the following rules apply:
(a) the plan members of the investment plan, other than the known members, are deemed to be resident on the attribution point in Canada and in the selected province referred to in subsection (1) for the particular period; and
(b) the investment plan is deemed to know on December 31 of the calendar year that the plan members of the investment plan, other than the known members, are, on the attribution point, resident in Canada and in the selected province.
- SOR/2013-71, s. 2
Marginal note:Percentage — mixed pension plans
38 If a selected listed financial institution is an investment plan and a pension entity of a pension plan, part of which is a defined contribution pension plan and the remaining part of which is a defined benefits pension plan, in a particular period in which a fiscal year of the financial institution ends, the financial institution’s percentage for a participating province and for the particular period is the amount determined by the formula
[A × (B/C)] + [D × (C – B)/C]
where
- A
- is the financial institution’s percentage determined for the participating province and for the particular period by applying section 35 to the part of the pension plan that is the defined contribution pension plan;
- B
- is the value of the assets of the defined contribution pension plan held by pension entities of the pension plan on a particular attribution point in respect of the financial institution for the particular period that is the last such attribution point required to be used in the determination of the percentage referred to in the description of A, or such other amount that the Minister may allow on application by the investment plan;
- C
- is the total value of the assets of the pension plan held by pension entities of the pension plan on the particular attribution point, or such other amount that the Minister may allow on application by the investment plan; and
- D
- is the financial institution’s percentage determined for the participating province and for the particular period by applying section 36 to the part of the pension plan that is the defined benefits pension plan.
- SOR/2013-71, s. 2
Divided Businesses
Marginal note:Agreement with the Minister — weighted average
39 If one or more parts of the business of a particular selected listed financial institution, other than a financial institution described in any of sections 24 to 26, for a particular period consist of operations normally conducted by any of the types of financial institutions referred to in any of sections 24 to 26 and 29 to 38, the particular financial institution and the Minister may agree that the particular financial institution’s percentage for a participating province and for the particular period is the weighted average of the percentages determined
(a) by applying to each of those parts of the business whichever of those sections refers to the type of financial institution that normally conducts the operations comprising that part of the business; and
(b) by applying section 23 to the remainder of the business that does not consist of operations normally conducted by any of the types of financial institutions referred to in those sections.
- SOR/2013-71, s. 2
PART 3Prescribed Amounts of Tax
Marginal note:Amounts not included in net tax adjustment formula
40 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, the following amounts are prescribed amounts of tax:
(a) any amount of tax that became payable by an insurer, or that was paid by the insurer without having become payable, in respect of property or services acquired, imported or brought into a participating province exclusively and directly for consumption, use or supply in the course of investigating, settling or defending a claim arising under an insurance policy that is not in the nature of accident and sickness insurance or life insurance;
(b) any amount of tax that became payable by a selected listed financial institution, or that was paid by the financial institution without having become payable, in respect of a supply or importation of property referred to in subsection 259.1(2) of the Act;
(c) any amount of tax that became payable by a stratified investment plan, or that was paid by a stratified investment plan without having become payable, in respect of property or a service, to the extent that the property or service was acquired, imported or brought into a participating province for consumption, use or supply in the course of the activities relating to a provincial series of the stratified investment plan;
(d) any particular amount of tax that became payable or was paid by a selected listed financial institution under any of subsection 165(2) and section 212.1 of the Act in respect of a supply or importation of property or a service in respect of which tax under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act became payable by the financial institution, or was paid by the financial institution without having become payable, in a reporting period of the financial institution that ends before July 2010, provided that the particular amount of tax
(i) is payable as a consequence of the application of Part 3 of the New Harmonized Value-added Tax System Regulations or Divisions 2 and 3 of Part 9 of the New Harmonized Value-added Tax System Regulations, No. 2, or
(ii) is payable at the rate of 10% as a consequence of the application of the Nova Scotia HST Regulations, 2010; and
(e) any particular amount of tax that became payable or was paid by a selected listed financial institution under any of subsection 165(2) and section 212.1 of the Act in respect of a supply or importation of property or a service in respect of which tax under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act became payable by the financial institution, or was paid by the financial institution without having become payable, in a reporting period of the financial institution that ends before April 2013, provided that the particular amount of tax is payable as a consequence of the application of Part 3.1 of the New Harmonized Value-added Tax System Regulations or Divisions 2 and 3 of Part 9.1 of the New Harmonized Value-added Tax System Regulations, No. 2.
- SOR/2013-71, s. 2
- SOR/2013-197, s. 1
Marginal note:Section 220.04 of Act
41 For the purposes of section 220.04 of the Act, a prescribed amount of tax is any amount of tax that
(a) is prescribed for the purposes of paragraph (a) of the description of F in subsection 225.2(2) of the Act; or
(b) is in respect of property or a service brought into a participating province or acquired, 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 person referred to in section 220.04 of the Act.
- SOR/2013-71, s. 2
PART 4Prescribed Amounts
Marginal note:Definitions
42 (1) The following definitions apply in this Part.
- eligible roadway
eligible roadway has the same meaning as in section 26 of the New Harmonized Value-added Tax System Regulations, No. 2. (voie admissible)
- excluded property or service
excluded property or service means property or a service that is
(a) specified energy that is acquired or imported for consumption or use exclusively in the heating of asphalt to be used directly in the construction or maintenance of an eligible roadway;
(b) property or a service described in any of paragraphs (e) to (g) of the definition specified property or service that is acquired or imported by the organizer or sponsor of a convention for consumption or use exclusively at the convention;
(c) a 1-800, 1-866, 1-877 or 1-888 telephone service or a similar toll-free telephone service or a service described in paragraph (f) or (g) of the definition specified property or service that is related to a 1-800, 1-866, 1-877 or 1-888 telephone service or a similar toll-free telephone service;
(d) access to the Internet;
(e) a web-hosting service;
(f) a taxi, the operation and custody of which is entrusted to a person by the holder of a taxi permit for the taxi; or
(g) property or a service that is acquired or imported exclusively for the purpose of
(i) being supplied by a person,
(ii) becoming a component of tangible personal property that is to be supplied by a person, or
(iii) in the case of property or a service described in paragraph (f) or (g) of the definition specified property or service acquired by a person operating a telecommunication service, being used directly and solely in the making of a taxable supply of a telecommunication service by the person. (bien ou service exclu)
- farming
farming has the meaning assigned by subsection 248(1) of the Income Tax Act. (agriculture)
- large business
large business, at any time, means a person that is, at that time, a prescribed person for the purposes of the definition large business in subsection 236.01(1) of the Act. (grande entreprise)
- motor vehicle
motor vehicle has the same meaning as in section 26 of the New Harmonized Value-added Tax System Regulations, No. 2. (véhicule automobile)
- qualifying energy
qualifying energy means specified energy, other than qualifying heating oil, that is a specified property or service. (forme d’énergie admissible)
- qualifying food, beverages and entertainment
qualifying food, beverages and entertainment means food, beverages or entertainment that is a specified property or service. (aliments, boissons et divertissements admissibles)
- qualifying fuel
qualifying fuel means motive fuel that is a specified property or service. (carburant admissible)
- qualifying heating oil
qualifying heating oil has the same meaning as in section 1 of the Deduction for Provincial Rebate (GST/HST) Regulations. (huile de chauffage admissible)
- qualifying motor vehicle
qualifying motor vehicle means
(a) a selected motor vehicle that is a specified property or service; and
(b) property (other than motive fuel) or a service, in respect of a selected motor vehicle, that is a specified property or service. (véhicule automobile admissible)
- qualifying telecommunications services
qualifying telecommunications services means a specified property or service described in paragraph (f) or (g) of the definition specified property or service. (service de télécommunication admissible)
- recapture rate
recapture rate applicable at a time in respect of a province means
(a) if the province is Ontario,
(i) in the case of a time that is on or after July 1, 2010 and before July 1, 2015, 100%,
(ii) in the case of a time that is on or after July 1, 2015 and before July 1, 2016, 75%,
(iii) in the case of a time that is on or after July 1, 2016 and before July 1, 2017, 50%,
(iv) in the case of a time that is on or after July 1, 2017 and before July 1, 2018, 25%, and
(v) in the case of a time that is on or after July 1, 2018, 0%;
(b) if the province is British Columbia,
(i) in the case of a time that is on or after July 1, 2010 and before April 1, 2013, 100%, and
(ii) in the case of a time that is on or after April 1, 2013, 0%; and
(c) if the province is Prince Edward Island,
(i) in the case of a time that is on or after April 1, 2013 and before April 1, 2018, 100%,
(ii) in the case of a time that is on or after April 1, 2018 and before April 1, 2019, 75%,
(iii) in the case of a time that is on or after April 1, 2019 and before April 1, 2020, 50%,
(iv) in the case of a time that is on or after April 1, 2020 and before April 1, 2021, 25%, and
(v) in the case of a time that is on or after April 1, 2021, 0%. (taux de récupération)
- selected motor vehicle
selected motor vehicle means a motor vehicle that is licensed, or required to be licensed, for use on a public highway under the laws of a province relating to the licensing of motor vehicles and that weighs, while carrying its maximum capacity of fuel, lubricant and coolant, less than 3,000 kilograms at the time when the motor vehicle is first licensed, or first required to be licensed, under those laws. (véhicule automobile désigné)
- specified energy
specified energy has the same meaning as in section 26 of the New Harmonized Value-added Tax System Regulations, No. 2. (forme d’énergie déterminée)
- specified extent
specified extent of property or a service in respect of a specified class of specified property or service, for a province that is Ontario, British Columbia or Prince Edward Island and for a reporting period of a person, means the percentage that is equal to
(a) in the case where the specified class is qualifying telecommunications services, the property or service includes qualifying telecommunications services and other property or services that are not specified property or services (each of which is referred to in this paragraph as an “element”) and the consideration for the specified property or service and each element is not separately identified,
(i) if the province is British Columbia, 95%, and
(ii) if the province is Ontario or Prince Edward Island and the specified property or service is provided to the person together with
(A) an element that is a service, 96%,
(B) an element that is property, 89%, and
(C) an element that is a service and an element that is property, 86%;
(b) if paragraph (a) does not apply and the property or service is a specified property or service (other than farming property or service of the person for the reporting period) of the specified class, 100%; and
(c) in any other case, 0%. (mesure déterminée)
- specified property or service
specified property or service means property or a service (other than excluded property or service) that is
(a) a selected motor vehicle;
(b) motive fuel, other than diesel fuel, that is acquired or imported for consumption or use in the engine of a selected motor vehicle;
(c) property (other than property for maintenance or repair) that is acquired or imported by a person for consumption or use in respect of a selected motor vehicle acquired or imported by the person, if the acquisition or importation of the property occurs within 365 days of the acquisition or importation of the selected motor vehicle;
(d) a service (other than a service for maintenance or repair) that is acquired by a person for consumption or use in respect of a selected motor vehicle acquired or imported by the person, if the acquisition of the service occurs within 365 days of the acquisition or importation of the motor vehicle;
(e) specified energy;
(f) a service described in paragraph (a) of the definition telecommunication service in subsection 123(1) of the Act;
(g) access to a telecommunications circuit, line, frequency, channel or partial channel, or to other similar means of transmitting a telecommunication (but not including a satellite channel), for use in providing a service described in paragraph (a) of the definition telecommunication service in subsection 123(1) of the Act; or
(h) food, beverages or entertainment acquired by a person in respect of which subsection 67.1(1) of the Income Tax Act applies or would apply if the person were a taxpayer under that Act. (bien ou service déterminé)
- specified salary and wages
specified salary and wages has the same meaning as in subsection 31(1) of the New Harmonized Value-added Tax System Regulations, No. 2. (rémunération déterminée)
- specified year
specified year has the same meaning as in section 217 of the Act. (année déterminée)
- total A amounts
total A amounts for a reporting period of a selected listed financial institution means
(a) if the financial institution is a non-stratified investment plan and an election under section 49 or 61 in respect of the financial institution is in effect throughout the reporting period, the total of all amounts, each of which is the total for A1 in subsection 225.2(2) of the Act, as adapted by these Regulations, for a day in the reporting period;
(b) if the financial institution is a stratified investment plan, the total of
(i) all amounts, each of which is the total for A1 in subsection 225.2(2) of the Act, as adapted by these Regulations, for a series of the financial institution and for a day in the reporting period, and
(ii) all amounts, each of which is the total for A4 in subsection 225.2(2) of the Act, as adapted by these Regulations, for a series of the financial institution and for the reporting period; and
(c) in any other case, the total for A in subsection 225.2(2) of the Act for the reporting period. (valeur A)
- total B amounts
total B amounts for a reporting period of a selected listed financial institution means
(a) if the financial institution is a non-stratified investment plan and an election under section 49 or 61 in respect of the financial institution is in effect throughout the reporting period, the total of all amounts, each of which is the total for A2 in subsection 225.2(2) of the Act, as adapted by these Regulations, for a day in the reporting period;
(b) if the financial institution is a stratified investment plan, the total of
(i) all amounts, each of which is the total for A2 in subsection 225.2(2) of the Act, as adapted by these Regulations, for a series of the financial institution and for a day in the reporting period, and
(ii) all amounts, each of which is the total for A5 in subsection 225.2(2) of the Act, as adapted by these Regulations, for a series of the financial institution and for the reporting period; and
(c) in any other case, the total for B in subsection 225.2(2) of the Act for the reporting period. (valeur B)
- total F amounts
total F amounts for a reporting period of a selected listed financial institution means
(a) if the financial institution is a non-stratified investment plan and an election under section 49 or 61 in respect of the financial institution is in effect throughout the reporting period or if the financial institution is a stratified investment plan, the total for D in subsection 225.2(2) of the Act, as adapted by these Regulations, for the reporting period; and
(b) in any other case, the total for F in subsection 225.2(2) of the Act for the reporting period. (valeur F)
Marginal note:Specified classes
(2) For the purposes of this section and paragraph 46(d), the following are specified classes of specified property or service:
(a) qualifying energy;
(b) qualifying food, beverages and entertainment;
(c) qualifying fuel;
(c.1) qualifying heating oil;
(d) qualifying motor vehicles; and
(e) qualifying telecommunications services.
Marginal note:Farming property or service
(3) For the purposes of this section and paragraph 46(d), specified property or service of a person is farming property or service of the person for a particular reporting period of the person if the chief source of income for the taxation year of the person preceding the particular reporting period was farming and if the specified property or service is primarily consumed or used in the person’s farming activities.
Marginal note:Tax recovery rate
(4) For the purposes of paragraph 46(d), the tax recovery rate of a financial institution for a specified class of specified property or service for a reporting period of the financial institution is
(a) if the specified class is qualifying fuel, the tax recovery rate of the financial institution for qualifying motor vehicles for the reporting period, as determined under paragraph (b);
(a.1) if the specified class is qualifying energy or qualifying heating oil, the percentage that would be the tax recovery rate of the financial institution for qualifying energy for the reporting period if the definition qualifying energy in subsection (1) were read without reference to “other than qualifying heating oil” and if the tax recovery rate were determined under paragraph (b); and
(b) for any other specified class,
(i) if an election under section 43 is in effect throughout the reporting period, the percentage determined by the formula
A/B
where
- A
- is the total of all amounts, each of which is an input tax credit of the financial institution for the reporting period in respect of an amount of tax under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act, and
- B
- is the total of all amounts, each of which is an amount of tax under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act that became payable by the financial institution during the reporting period without having been paid before the reporting period or was paid by the financial institution during the reporting period without having become payable, and
(ii) in any other case, the percentage determined by the formula
C/D
where
- C
- is the total of all amounts, each of which is an input tax credit of the financial institution for the reporting period in respect of a specified property or service of the specified class and in respect of an amount of tax under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act, and
- D
- is the total of all amounts, each of which is an amount of tax under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act in respect of a supply of a specified property or service of the specified class that became payable by the financial institution during the reporting period without having been paid before the reporting period or was paid by the financial institution during the reporting period without having become payable.
- SOR/2013-71, s. 2
- SOR/2013-197, s. 2
- Date modified: