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

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.