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

Marginal note:Percentage — non-stratified exchange-traded funds

• 34 (1) If a selected listed financial institution is a non-stratified investment plan and an exchange-traded fund in a particular period in which a fiscal year of the financial institution ends, the financial institution’s percentage 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 financial institution for the particular period by the formula

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

    where

    A₁

    is the total of all amounts, each of which is the total value of the units of the financial institution held, on the attribution point, by a person that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, is resident in the selected province on the attribution point,

    A₂

    is the total value of the units of the financial institution other than units held, on the attribution point, by a person that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, is not resident in Canada on the attribution point,

    A₃

    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 financial institution held, on the attribution point, by a person in respect of which the financial institution, on December 31 of the calendar year in which the fiscal year ends,

    • (i) does not know whether or not the person is resident in Canada on the attribution point, or

    • (ii) knows that the person is resident in Canada on the attribution point but does not know the province in which the person is resident on the attribution point, and

    D

    is the amount determined for A₂, and

    A₄

    is the total of all amounts, each of which is the total value of the units of the financial institution held, on the attribution point, by a person resident in Canada on the attribution point in respect of which the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, the province in which the person is resident on the attribution point, and

    B

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

    (A₁/A₂) + [A₃ × (A₁/A₄)]

    where

    A₁

    is the total of all amounts, each of which is the total value of the units of the financial institution held, on the attribution point, by a person that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, is resident in the participating province on the attribution point,

    A₂

    is the total value of the units of the financial institution other than units held, on the attribution point, by a person that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, is not resident in Canada on the attribution point,

    A₃

    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 financial institution held, on the attribution point, by a person in respect of which the financial institution, on December 31 of the calendar year in which the fiscal year ends,

    • (i) does not know whether or not the person is resident in Canada on the attribution point, or

    • (ii) knows that the person is resident in Canada on the attribution point but does not know the province in which the person is resident on the attribution point, and

    D

    is the amount determined for A₂, and

    A₄

    is the total of all amounts, each of which is the total value of the units of the financial institution held, on the attribution point, by a person resident in Canada on the attribution point in respect of which the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, the province in which the person is resident on the attribution point, and

    B

    is the number of attribution points in respect of the financial institution 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 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 investment plan held on the attribution point by a person 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 persons resident in Canada, the province in which the person is resident on the attribution point — is less than 50% of the total value of the units of the investment plan on the attribution point, the following rules apply:

  • (a) the units of the investment plan, 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 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:Plan mergers

  (3) Despite subsection (1), if a plan merger occurs 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 non-stratified investment plan that is an exchange-traded fund and a selected listed financial institution, the following rules apply:

  • (a) if no election under section 50 is in effect 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 particular investment plan’s percentage 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 investment plan 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 investment plan 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 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).

Pension Plans and Private Investment Plans

Marginal note:Percentage — defined contribution plans, profit sharing plans, RESPs and retirement compensation arrangements

• 35 (1) If a selected listed financial institution is, in a particular period in which a fiscal year of the financial institution ends, an investment plan and a pension entity of a particular defined contribution pension plan (other than a pension entity described in section 38) or a private investment plan that is a trust governed by a particular deferred profit sharing plan, a particular employees profit sharing plan, a particular registered education savings plan or a particular retirement compensation arrangement, the financial institution’s percentage 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 financial institution for the particular period by the formula

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

    where

    A₁

    is the total of all amounts, each of which is the total value, on the attribution point, of the assets of the particular plan or arrangement that are reasonably attributable to a plan member of the financial institution that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, is resident in the selected province on the attribution point,

    A₂

    is the total value, on the attribution point, of the assets of the particular plan or arrangement other than the assets that are reasonably attributable to plan members of the financial institution that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, are not resident in Canada on the attribution point,

    A₃

    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, on the attribution point, of the assets of the particular plan or arrangement that are reasonably attributable to a plan member of the financial institution in respect of which the financial institution, on December 31 of the calendar year in which the fiscal year ends,

    • (i) does not know whether or not the plan member is resident in Canada on the attribution point, or

    • (ii) knows that the plan member is resident in Canada on the attribution point but does not know the province in which the plan member is resident on the attribution point, and

    D

    is the amount determined for A₂, and

    A₄

    is the total of all amounts, each of which is the total value, on the attribution point, of the assets of the particular plan or arrangement that are reasonably attributable to a plan member of the financial institution resident in Canada on the attribution point in respect of which the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, the province in which the plan member is resident on the attribution point, and

    B

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

    (A₁/A₂) + [A₃ × (A₁/A₄)]

    where

    A₁

    is the total of all amounts, each of which is the total value, on the attribution point, of the assets of the particular plan or arrangement that are reasonably attributable to a plan member of the financial institution that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, is resident in the participating province on the attribution point,

    A₂

    is the total value, on the attribution point, of the assets of the particular plan or arrangement other than the assets that are reasonably attributable to plan members of the financial institution that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, are not resident in Canada on the attribution point,

    A₃

    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, on the attribution point, of the assets of the particular plan or arrangement that are reasonably attributable to a plan member of the financial institution in respect of which the financial institution, on December 31 of the calendar year in which the fiscal year ends,

    • (i) does not know whether or not the plan member is resident in Canada on the attribution point, or

    • (ii) knows that the plan member is resident in Canada on the attribution point but does not know the province in which the plan member is resident on the attribution point, and

    D

    is the amount determined for A₂, and

    A₄

    is the total of all amounts, each of which is the total value, on the attribution point, of the assets of the particular plan or arrangement that are reasonably attributable to a plan member of the financial institution resident in Canada on the attribution point in respect of which the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, the province in which the plan member is resident on the attribution point, and

    B

    is the number of attribution points in respect of the financial institution for the particular period; and

  • (c) in the case of any other participating province, nil.

• Marginal note:Attribution of plan members to a participating province

  (2) For the purposes of subsection (1), if a selected listed financial institution is a pension entity of a particular pension plan or is a private investment plan that is a trust governed by a particular deferred profit sharing plan, a particular employees profit sharing plan, a particular registered education savings plan or a particular retirement compensation arrangement and if, for any attribution point in respect of the financial institution for a particular period in which a fiscal year of the financial institution ends, the total of all amounts — each of which is the total value, on the attribution point, of the assets of the particular plan or arrangement that are reasonably attributable to a plan member (in this subsection referred to as a “known member”) of the financial institution in respect of which the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, whether or not the plan member is resident in Canada on the attribution point and, in the case of plan members resident in Canada, the province in which the plan member is resident on the attribution point — is less than 50% of the total value, on the attribution point, of the assets of the particular plan or particular arrangement, the following rules apply:

  • (a) the total value on the attribution point of the assets of the particular plan or particular arrangement, other than the assets of the particular plan or particular arrangement that are reasonably attributable to the known members, is deemed to be attributable to a particular person and not to any other person;

  • (b) the particular person is deemed to be a plan member of the financial institution and to be resident on the attribution point in Canada and in the selected province referred to in subsection (1) for the particular period; and

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