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

Meaning of unrecoverable tax amount

• 7 (1) For the purposes of this section, unrecoverable tax amount for a reporting period of a person means the amount determined by the formula

  A – B

  where

  A

  is the total of all amounts, each of which is

  • (a) an amount that would be included in the total for A in subsection 225.2(2) of the Act, read without reference to any adaptation made under Part 5, for the reporting period, if the person were a selected listed financial institution throughout the reporting period and no election under subsection 55(1) were in effect throughout the reporting period,

  • (b) an amount of tax that the person would be deemed to have paid under any of subsections 172.1(5) to (7.1) of the Act during the reporting period, if the person were a selected listed financial institution throughout the reporting period, or

  • (c) an amount that the person would be required by paragraph 232.01(5)(b) or 232.02(4)(b) of the Act to include in its determination of net tax for the reporting period, if the person were a selected listed financial institution throughout the reporting period; and

  B

  is the total of all amounts, each of which is

  • (a) an amount that would be included in the total for B in subsection 225.2(2) of the Act, read without reference to any adaptation made under Part 5, for the reporting period, if the person were a selected listed financial institution throughout the reporting period and no election under subsection 55(1) were in effect throughout the reporting period,

  • (b) the federal component amount, within the meaning of section 232.01 of the Act, of a tax adjustment note issued under subsection 232.01(3) of the Act to the person during the reporting period, or

  • (c) the federal component amount, within the meaning of section 232.02 of the Act, of a tax adjustment note issued under subsection 232.02(2) of the Act to the person during the reporting period.

• Marginal note:Qualifying small investment plan

  (2) For the purposes of this Part, an investment plan (other than a distributed investment plan) is a qualifying small investment plan for a particular fiscal year of the investment plan where

  • (a) if, in the absence of section 57, the particular fiscal year is the first fiscal year of the investment plan, the amount determined by the following formula for each reporting period of the investment plan included in the particular fiscal year is equal to or less than $10,000:

    A × (365/B)

    where

    A

    is the unrecoverable tax amount for the reporting period, and

    B

    is the number of days in the reporting period; and

  • (b) in any other case, the amount determined by the following formula is equal to or less than $10,000:

    A × (365/B)

    where

    A

    is the total of all amounts, each of which is an unrecoverable tax amount for a reporting period of the investment plan included in the fiscal year of the investment plan (in this paragraph referred to as the “preceding fiscal year”) that precedes the particular fiscal year, and

    B

    is the number of days in the preceding fiscal year.