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

Marginal note:Percentage — particular period

• 30 (1) If a selected listed financial institution is a stratified investment plan, no election under section 49 or 64 is in effect in respect of a series of the financial institution throughout a fiscal year of the financial institution that ends in a particular period and in a calendar year and the series is not an exchange-traded series, the financial institution’s percentage for the series, 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 series for the particular period by the formula

    [(A₁ + A₂)/A₃] + [A₄ × ((A₁ + A₂)/A₅)] + [(1 – A₄) – (A₅/A₃)]

    where

    A₁

    is the total of all amounts, each of which is the total value of the units of the series held, on the attribution point, by a person that is an individual or a specified investor in the financial institution for the fiscal year and that the financial institution knows, on December 31 of the calendar year, is resident in the selected province on the attribution point,

    A₂

    is the total of all amounts, each of which is the total value of the units of the series held, on the attribution point, by a person that is neither an individual nor a specified investor in the financial institution for the fiscal year and in respect of which the financial institution knows, on December 31 of the calendar year, the person’s investor percentage for each participating province as of the attribution point multiplied by the person’s investor percentage for the selected province as of the attribution point,

    A₃

    is the total value, on the attribution point, of the units of the series other than units held, on the attribution point, by an individual, or a specified investor in the financial institution for the fiscal year, that the financial institution knows, on December 31 of the calendar year, is not resident in Canada on the attribution point,

    A₄

    is the lesser of 0.1 and the amount determined by the formula

    C/D

    where

    C

    is the total of all amounts, each of which is the total value of the units of the series held, on the attribution point, by a person in respect of which the financial institution

    • (i) does not know, on December 31 of the calendar year, 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, the missing information under the applicable subsection referred to in subparagraph (i), and

    D

    is the amount determined for A₃, and

    A₅

    is the total of all amounts, each of which is the total value of the units of the series held, on the attribution point, by a person

    • (i) that is an individual, or a specified investor in the financial institution for the fiscal year, resident in Canada on the attribution point and in respect of which the financial institution knows the province in which the person is resident on the attribution point, or

    • (ii) that is neither an individual nor a specified investor in the financial institution for the fiscal year and in respect of which the financial institution knows, on December 31 of the calendar year, the person’s investor percentage for each participating province as of the attribution point, and

    B

    is the number of attribution points in respect of the series 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 series for the particular period by the formula

    [(A₁ + A₂)/A₃] + [A₄ × ((A₁ + A₂)/A₅)]

    where

    A₁

    is the total of all amounts, each of which is the total value of the units of the series held, on the attribution point, by a person that is an individual or a specified investor in the financial institution for the fiscal year and that the financial institution knows, on December 31 of the calendar year, is resident in the participating province on the attribution point,

    A₂

    is the total of all amounts, each of which is the total value of the units of the series held, on the attribution point, by a person that is neither an individual nor a specified investor in the financial institution for the fiscal year and in respect of which the financial institution knows, on December 31 of the calendar year, the person’s investor percentage for each participating province as of the attribution point multiplied by the person’s investor percentage for the participating province as of the attribution point,

    A₃

    is the total value, on the attribution point, of the units of the series other than units held, on the attribution point, by an individual, or a specified investor in the financial institution for the fiscal year, that the financial institution knows, on December 31 of the calendar year, is not resident in Canada on the attribution point,

    A₄

    is the lesser of 0.1 and the amount determined by the formula

    C/D

    where

    C

    is the total of all amounts, each of which is the total value of the units of the series held, on the attribution point, by a person in respect of which the financial institution

    • (i) does not know, on December 31 of the calendar year, 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, the missing information under the applicable subsection referred to in subparagraph (i), and

    D

    is the amount determined for A₃, and

    A₅

    is the total of all amounts, each of which is the total value of the units of the series held, on the attribution point, by a person

    • (i) that is an individual, or a specified investor in the financial institution for the fiscal year, resident in Canada on the attribution point and in respect of which the financial institution knows the province in which the person is resident on the attribution point, or

    • (ii) that is neither an individual nor a specified investor in the financial institution for the fiscal year and in respect of which the financial institution knows, on December 31 of the calendar year, the person’s investor percentage for each participating province as of the attribution point, and

    B

    is the number of attribution points in respect of the series for the particular period; 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 any attribution point in respect of a series of an investment plan for a particular period in which a fiscal year of the investment plan ends, the total of all amounts — each of which is the total value of the particular units of the series held on the attribution point 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, on December 31 of the calendar year in which the fiscal year ends, whether or not the person is resident in Canada on the attribution point and, in the case of individuals and specified investors resident in Canada, the province in which the person is resident on the attribution point or by a person that is neither an individual nor a specified investor in the investment plan for the fiscal year and in respect of which the investment plan knows, on December 31 of the calendar year, the person’s investor percentage for each participating province as of the attribution point — is less than 50% of the total value of the units of the series on the attribution point, the following rules apply:

  • (a) the units of the series, other than the particular units, are deemed to be held on the attribution point by a particular individual and not by any other person;

  • (b) the particular individual is deemed to be resident on the attribution point in Canada and in the selected province referred to in subsection (1) for the series and for the particular period; and

  • (c) the investment plan is deemed to know on December 31 of the calendar year that the particular individual is, on the attribution point, resident in Canada and in the selected province.

• Marginal note:Specified transactions

  (3) For the purposes of subsection (1), if no election under section 18 is in effect in respect of a series of an investment plan throughout a fiscal year of the investment plan and a specified transaction occurs that is in relation to an attribution point in respect of the series for a particular period in which the fiscal year ends, the following rules apply:

  • (a) the units of the series acquired in the specified transaction are deemed to be held on the attribution point by a particular individual and not by any other person;

  • (b) the particular individual is deemed to be resident on the attribution point in Canada and in the selected province referred to in subsection (1) for the series and for the particular period; and

  • (c) the investment plan is deemed to know on December 31 of the calendar year in which the fiscal year ends that the particular individual is, on the attribution point, resident in Canada and in the selected province.

• Marginal note:Plan mergers

  (4) Despite subsection (1), if a plan merger between two or more investment plans (each of which is referred to in this subsection as a “predecessor”) occurs on a particular day to form a particular stratified investment plan that is a selected listed financial institution, a particular series of the particular investment plan is neither an exchange-traded series nor a provincial series and no election under section 49 or 64 is in effect in respect of the particular series throughout the fiscal year of the particular investment plan (in this subsection referred to as the “transitional fiscal year”) that includes the particular day, the following rules apply:

  • (a) if no election under section 50 is in effect throughout the transitional fiscal year, the particular investment plan’s percentage for the particular series, for a participating province and for the particular period (in this subsection referred to as the “preceding period”) that precedes the particular period in which the transitional fiscal year ends is equal to the particular amount that is the total of all amounts, each of which is determined for a particular predecessor by the formula

    A × B/C

    where

    A

    is

    • (i) if the particular predecessor is a stratified investment plan, the total of all amounts, each of which is determined by the following formula for a series of the particular predecessor (in this subparagraph referred to as a “predecessor series”), units of which were converted, by any means, into units of the particular series:

      A₁ × A₂/A₃

      where

      A₁

      is

      • (A) if an election under section 49 or 64 is in effect in respect of the predecessor series immediately before the plan merger, the particular predecessor’s percentage for the predecessor series and for the participating province as of the last day on which that percentage is required to be determined for the purposes of subsection 225.2(2) of the Act, as adapted by these Regulations, before the plan merger, and

      • (B) in any other case, the particular predecessor’s percentage for the predecessor series, for the participating province and for the last particular period of the particular predecessor ending before the plan merger,

      A₂

      is the total value immediately before the plan merger of the units of the predecessor series that were converted, by any means, into units of the particular series by virtue of the plan merger, and

      A₃

      is the total of all amounts, each of which is the total value immediately before the plan merger of the units of a series of the particular predecessor (including the predecessor series) that were converted, by any means, into units of the particular series by virtue of the plan merger,

    • (ii) if the particular predecessor is a non-stratified investment plan in respect of which an election under section 49 or 61 is in effect immediately before the plan merger, the particular predecessor’s percentage for the participating province as of the last day on which that percentage is required to be determined for the purposes of subsection 225.2(2) of the Act, as adapted by these Regulations, before the plan merger, and

    • (iii) in any other case, the particular predecessor’s percentage for the participating province and for the last particular period of the particular predecessor ending before the plan merger,

    B

    is the total value immediately before the plan merger of the units of the particular predecessor that were converted, by any means, into units of the particular series by virtue of the plan merger, and

    C

    is the total of all amounts, each of which is the total value immediately before the plan merger of the units of a predecessor (including the particular predecessor) that were converted, by any means, into units of the particular series by virtue of the plan merger; and

  • (b) if the plan merger occurs on or after September 30 of the calendar year in which the transitional fiscal year begins, the particular investment plan’s percentage for the particular series, for a participating province and for the particular period in which the transitional fiscal year ends is equal to the particular amount referred to in paragraph (a).