Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations

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.