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

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.