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

Marginal note:Percentage — defined benefits plans

• 36 (1) If a selected listed financial institution is an investment plan and a pension entity of a defined benefits pension plan (other than a pension entity described in section 38) 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, on the attribution point, of the actuarial liabilities of the defined benefits pension plan 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 actuarial liabilities of the defined benefits pension plan other than actuarial liabilities 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 actuarial liabilities of the defined benefits pension plan 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 actuarial liabilities of the defined benefits pension plan 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 actuarial liabilities of the defined benefits pension plan 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 actuarial liabilities of the defined benefits pension plan other than actuarial liabilities 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 actuarial liabilities of the defined benefits pension plan 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 actuarial liabilities of the defined benefits pension plan 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, for any attribution point in respect of a pension entity of a defined benefits pension plan for a particular period in which a fiscal year of the pension entity ends, the total of all amounts — each of which is the total value, on the attribution point, of the actuarial liabilities of the pension plan that are reasonably attributable to a plan member (in this subsection referred to as a “known member”) of the pension entity in respect of which the pension entity 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 actuarial liabilities of the pension plan, the following rules apply:

  • (a) the total value on the attribution point of the actuarial liabilities of the pension plan, other than the actuarial liabilities of the pension plan 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 pension entity 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 pension entity 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.

Marginal note:Percentage — employee benefit plans

• 37 (1) If a selected listed financial institution is a private investment plan that is an employee life and health trust or a trust governed by an employee benefit plan, an employee trust or a registered supplementary unemployment benefit plan 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 number of plan members of the investment plan that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, are resident in the selected province on the attribution point,

    A₂

    is the total number of plan members of the investment plan other than plan members of the investment plan 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 number of plan members of the investment plan in respect of each 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 number of plan members of the investment plan resident in Canada on the attribution point in respect of each 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 number of plan members of the investment plan that the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, are resident in the participating province on the attribution point,

    A₂

    is the total number of plan members of the investment plan other than plan members of the investment plan 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 number of plan members of the investment plan in respect of each 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 number of plan members of the investment plan resident in Canada on the attribution point in respect of each 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, 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 number of plan members (in this subsection referred to as the “known members”) of the investment plan in respect of each of which the investment plan 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 number of plan members of the investment plan on the attribution point, the following rules apply:

  • (a) the plan members of the investment plan, other than the known members, are 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

  • (b) the investment plan is deemed to know on December 31 of the calendar year that the plan members of the investment plan, other than the known members, are, on the attribution point, resident in Canada and in the selected province.

Marginal note:Percentage — mixed pension plans

38 If a selected listed financial institution is an investment plan and a pension entity of a pension plan, part of which is a defined contribution pension plan and the remaining part of which is a defined benefits pension plan, 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 the amount determined by the formula

Divided Businesses

Marginal note:Agreement with the Minister — weighted average

39 If one or more parts of the business of a particular selected listed financial institution, other than a financial institution described in any of sections 24 to 26, for a particular period consist of operations normally conducted by any of the types of financial institutions referred to in any of sections 24 to 26 and 29 to 38, the particular financial institution and the Minister may agree that the particular financial institution’s percentage for a participating province and for the particular period is the weighted average of the percentages determined

• (a) by applying to each of those parts of the business whichever of those sections refers to the type of financial institution that normally conducts the operations comprising that part of the business; and

• (b) by applying section 23 to the remainder of the business that does not consist of operations normally conducted by any of the types of financial institutions referred to in those sections.

PART 3Prescribed Amounts of Tax

Marginal note:Amounts not included in net tax adjustment formula

40 For the purposes of paragraph (a) of the description of A and paragraph (a) of the description of F in subsection 225.2(2) of the Act, the following amounts are prescribed amounts of tax:

• (a) any amount of tax that became payable by an insurer, or that was paid by the insurer without having become payable, in respect of property or services acquired, imported or brought into a participating province exclusively and directly for consumption, use or supply in the course of investigating, settling or defending a claim arising under an insurance policy that is not in the nature of accident and sickness insurance or life insurance;

• (b) any amount of tax that became payable by a selected listed financial institution, or that was paid by the financial institution without having become payable, in respect of a supply or importation of property referred to in subsection 259.1(2) of the Act;

• (c) any amount of tax that became payable by a stratified investment plan, or that was paid by a stratified investment plan without having become payable, in respect of property or a service, to the extent that the property or service was acquired, imported or brought into a participating province for consumption, use or supply in the course of the activities relating to a provincial series of the stratified investment plan;

• (d) any particular amount of tax that became payable or was paid by a selected listed financial institution under any of subsection 165(2) and section 212.1 of the Act in respect of a supply or importation of property or a service in respect of which tax under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act became payable by the financial institution, or was paid by the financial institution without having become payable, in a reporting period of the financial institution that ends before July 2010, provided that the particular amount of tax

  • (i) is payable as a consequence of the application of Part 3 of the New Harmonized Value-added Tax System Regulations or Divisions 2 and 3 of Part 9 of the New Harmonized Value-added Tax System Regulations, No. 2, or

  • (ii) is payable at the rate of 10% as a consequence of the application of the Nova Scotia HST Regulations, 2010; and

• (e) any particular amount of tax that became payable or was paid by a selected listed financial institution under any of subsection 165(2) and section 212.1 of the Act in respect of a supply or importation of property or a service in respect of which tax under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act became payable by the financial institution, or was paid by the financial institution without having become payable, in a reporting period of the financial institution that ends before April 2013, provided that the particular amount of tax is payable as a consequence of the application of Part 3.1 of the New Harmonized Value-added Tax System Regulations or Divisions 2 and 3 of Part 9.1 of the New Harmonized Value-added Tax System Regulations, No. 2.