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

Insurers

Definition of net premiums

• 24 (1) In this section, net premiums of a selected listed financial institution for a particular period means the total of the gross premiums received by the financial institution in the particular period (other than consideration received for annuities) minus the total for the particular period of

  • (a) premiums paid by the financial institution for reinsurance,

  • (b) dividends or rebates paid or credited by the financial institution to policy-holders, and

  • (c) rebates or returned premiums paid by the financial institution in respect of the cancellation of policies.

• Marginal note:Determination of percentage

  (2) If a selected listed financial institution is an insurer, the financial institution’s percentage for a participating province and for a particular period in which it has a permanent establishment in that province is the amount, expressed as a percentage, determined by the formula

  A/B

  where

  A

  is the total of its net premiums for the particular period in respect of the insurance of risk in respect of property situated in the province and of its net premiums for the particular period in respect of the insurance of risk in respect of persons resident in that province, that are included in computing its income for the purposes of Part I of the Income Tax Act or that would be included in computing its income for the purposes of Part I of that Act if the financial institution were an insurance corporation; and

  B

  is the total of its net premiums for the particular period in respect of the insurance of risk in respect of property situated in Canada and of its net premiums for the particular period in respect of the insurance of risk in respect of persons resident in Canada, that are included in computing its income for the purposes of Part I of the Income Tax Act or that would be included in computing its income for the purposes of Part I of that Act if the financial institution were an insurance corporation.

• Marginal note:Exclusions from net premiums

  (3) For the purposes of subsections (1) and (2), no amounts that relate to an insurance policy issued by a selected listed financial institution are to be included in the determination of the net premiums of the financial institution to the extent that

  • (a) if the policy is a life or accident and sickness insurance policy (other than a group policy), the policy is issued in respect of an individual who at the time the policy becomes effective, is a non-resident individual;

  • (b) if the policy is a group life or accident and sickness insurance policy, the policy relates to non-resident individuals who are insured under the policy;

  • (c) if the policy is a policy in respect of real property, the policy relates to real property situated outside Canada; and

  • (d) if the policy is a policy of any other kind, the policy relates to risks that are ordinarily situated outside Canada.

Banks and Credit Unions

Marginal note:Determination of percentage

• 25 (1) If a selected listed financial institution is a bank or a credit union, the financial institution’s percentage for a particular period and for a participating province in which the financial institution has a permanent establishment is 1/5 of the total of

  • (a) the percentage that the total of all salaries and wages paid in the particular period by the financial institution to employees of its permanent establishments in that province is of the total of all salaries and wages paid in the particular period by the financial institution to employees of its permanent establishments in Canada, and

  • (b) four times the percentage that the total amount of loans and deposits of its permanent establishments in that province for the particular period is of the total amount of all loans and deposits of its permanent establishments in Canada for the particular period.

• Marginal note:Amount of loans

  (2) For the purpose of subsection (1), the amount of loans for a particular period is the amount determined by the formula

  A/B

  where

  A

  is the total of the amounts outstanding on the loans made by the selected listed financial institution at the close of business on the last day of each calendar quarter that ends in the particular period; and

  B

  is the number of calendar quarters that end in the particular period.

• Marginal note:Amount of deposits

  (3) For the purpose of subsection (1), the amount of deposits for a particular period is the amount determined by the formula

  A/B

  where

  A

  is the total of the amounts on deposit with the selected listed financial institution at the close of business on the last day of each calendar quarter that ends in the particular period; and

  B

  is the number of calendar quarters that end in the particular period.

• Marginal note:Exclusion from loans and deposits

  (4) For the purposes of subsections (2) and (3), loans and deposits do not include

  • (a) bonds, stocks, debentures, items in transit and deposits in favour of Her Majesty in right of Canada; and

  • (b) any loan made to a non-resident person and any deposit held by a non-resident person, unless the loan or deposit is a debt or financial instrument included in any of paragraphs 1(a) to (e) of Part IX of Schedule VI to the Act.

• Marginal note:Exclusion from salaries and wages

  (5) For the purposes of subsection (1), salaries and wages paid by a financial institution do not include salary or wages paid to an employee of the financial institution to the extent that the salary or wages are reasonably attributable to the rendering by the employee of services, the supply of which are zero-rated supplies.

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.