Jobs and Growth Act, 2012 (S.C. 2012, c. 31)
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Assented to 2012-12-14
PART 2MEASURES IN RESPECT OF SALES TAX
R.S., c. E-15Excise Tax Act
Marginal note:2010, c. 12, s. 68(1)
77. (1) The portion of subsection 220.05(3.1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Pension entities
(3.1) No tax is payable under subsection (1) in respect of property if a person that is a pension entity of a pension plan is the recipient of a particular supply of the property made by a participating employer of the pension plan and
(2) Subsection (1) is deemed to have come into force on September 23, 2009.
Marginal note:2009, c. 32, s. 19(1)
78. (1) Subsection 220.08(1) of the Act is replaced by the following:
Marginal note:Tax in participating province
220.08 (1) Subject to this Part, every person that is resident in a participating province and is the recipient of a taxable supply made in a particular province of intangible personal property or a service that is acquired by the person for a prescribed purpose in respect of the supply or, in the absence of a prescribed purpose in respect of the supply, for consumption, use or supply in whole or in part in any participating province that is not the particular province must pay to Her Majesty in right of Canada, each time an amount of consideration for the supply becomes due or is paid without having become due, tax equal to the amount determined in prescribed manner.
Marginal note:2010, c. 12, s. 69(1)
(2) The portion of subsection 220.08(3.1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Pension entities
(3.1) No tax is payable under subsection (1) in respect of a particular supply of property or a service made by a participating employer of a pension plan to a person that is a pension entity of the pension plan if
(3) Subsection (1) applies in respect of any supply made on or after July 1, 2010.
(4) Subsection (2) is deemed to have come into force on September 23, 2009.
Marginal note:1997, c. 10, s. 208(1)
79. (1) Subsection 225.2(1) of the Act is replaced by the following:
Marginal note:Selected listed financial institutions
225.2 (1) For the purposes of this Part, a financial institution is a selected listed financial institution throughout a reporting period in a fiscal year that ends in a taxation year of the financial institution if the financial institution is
(a) a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) during the taxation year; and
(b) a prescribed financial institution throughout the reporting period.
Marginal note:1997, c. 10, s. 208(1)
(2) Paragraph (a) of the description of F in subsection 225.2(2) of the Act is replaced by the following:
(a) all amounts of tax (other than a prescribed amount of tax) under subsection 165(2) in respect of supplies made in the participating province to the financial institution, or under section 212.1 calculated at the tax rate for the participating province, that
(i) became payable, or were paid without having become payable, by the financial institution during
(A) the particular reporting period, or
(B) any other reporting period of the financial institution that precedes the particular reporting period, provided that
(I) the particular reporting period ends within two years after the end of the financial institution’s fiscal year that includes the other reporting period, and
(II) the financial institution was a selected listed financial institution throughout the other reporting period,
(ii) were not included in determining the positive or negative amounts that the financial institution is required to add, or may deduct, under this subsection in determining its net tax for any reporting period of the financial institution other than the particular reporting period, and
(iii) are claimed by the financial institution in a return under this Division filed by the financial institution for the particular reporting period, and
Marginal note:1997, c. 10, s. 208(1)
(3) Paragraph (b) of the description of F in subsection 225.2(2) of the English version of the Act is replaced by the following:
(b) all amounts each of which is an amount, in respect of a supply made during the particular reporting period of property or a service to which the financial institution and another person have elected to have paragraph (c) of the description of A apply, equal to tax payable by the other person under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 that is included in the cost to the other person of supplying the property or service to the financial institution; and
Marginal note:1997, c. 10, s. 208(1)
(4) Subsection 225.2(8) of the Act is repealed.
(5) Subsections (1) and (2) apply in respect of any reporting period of a person that ends on or after July 1, 2010.
(6) Subsection (4) is deemed to have come into force on July 1, 2010.
80. (1) The Act is amended by adding the following after section 225.2:
Marginal note:Definitions
225.3 (1) In this section, “exchange-traded fund”, “exchange-traded series”, “non-stratified investment plan” and “stratified investment plan” have the meaning prescribed by regulation.
Marginal note:Application to Minister
(2) A selected listed financial institution that is an exchange-traded fund may apply to the Minister to use particular methods, for a fiscal year that ends in a taxation year of the financial institution, to determine
(a) if the financial institution is a stratified investment plan, the financial institution’s percentages for the purposes of subsection 225.2(2) for each exchange-traded series of the financial institution, for each participating province and for the taxation year; and
(b) if the financial institution is a non-stratified investment plan, the financial institution’s percentages for the purposes of subsection 225.2(2) for each participating province and for the taxation year.
Marginal note:Form and manner of application
(3) An application made by a selected listed financial institution under subsection (2) is to be
(a) made in prescribed form containing prescribed information, including
(i) if the financial institution is a stratified investment plan, the particular methods to be used for each exchange-traded series of the financial institution, and
(ii) if the financial institution is a non-stratified investment plan, the particular methods to be used for the financial institution; and
(b) filed by the financial institution with the Minister in prescribed manner on or before
(i) the day that is 180 days before the first day of the fiscal year for which the application is made, or
(ii) any later day that the Minister may allow.
Marginal note:Authorization
(4) On receipt of an application made under subsection (2), the Minister must
(a) consider the application and authorize or deny the use of the particular methods; and
(b) notify the selected listed financial institution in writing of the decision on or before
(i) the later of
(A) the day that is 180 days after the receipt of the application, and
(B) the day that is 180 days before the first day of the fiscal year for which the application is made, or
(ii) any later day that the Minister may specify, if the day is set out in a written application filed by the financial institution with the Minister.
Marginal note:Effect of authorization
(5) If the Minister authorizes under subsection (4) the use of particular methods for a fiscal year of the selected listed financial institution,
(a) despite Part 2 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,
(i) the financial institution’s percentages for any participating province and for the taxation year in which the fiscal year ends that would, in the absence of this section, be determined under that Part are to be determined in accordance with those particular methods, and
(ii) the financial institution’s percentages for any exchange-traded series of the financial institution, for any participating province and for the taxation year in which the fiscal year ends that would, in the absence of this section, be determined under that Part are to be determined in accordance with those particular methods; and
(b) the financial institution must consistently, throughout the fiscal year, use those particular methods as indicated in the application to determine the percentages referred to in paragraph (a).
Marginal note:Revocation
(6) An authorization granted under subsection (4) to a selected listed financial institution in respect of a fiscal year of the financial institution ceases to have effect on the first day of the fiscal year and, for the purposes of this Part, is deemed never to have been granted, if
(a) the Minister revokes the authorization and sends a notice of revocation to the financial institution at least 60 days before the first day of the fiscal year; or
(b) the financial institution files with the Minister in prescribed manner a notice of revocation in prescribed form containing prescribed information on or before the first day of the fiscal year.
Marginal note:Definitions
225.4 (1) The following definitions apply in this section.
“business input”
« intrant d’entreprise »
“business input” has the same meaning as in subsection 141.02(1).
“Canadian activity”
« activité au Canada »
“Canadian activity” has the same meaning as in section 217.
“exclusive input”
« intrant exclusif »
“exclusive input” of a person means property or a service that is acquired or imported by the person for consumption or use directly and exclusively for the purpose of making taxable supplies for consideration or directly and exclusively for purposes other than making taxable supplies for consideration.
Marginal note:Prescribed definitions
(2) In this section, “exchange-traded fund”, “exchange-traded series”, “individual”, “investment plan”, “non-stratified investment plan”, “plan member”, “private investment plan”, “series”, “specified investor”, “stratified investment plan” and “unit” have the meaning prescribed by regulation.
Marginal note:Stratified investment plans
(3) If a selected listed financial institution is a stratified investment plan and no election under subsection (6) in respect of a series of the financial institution is in effect throughout a fiscal year of the financial institution that ends in a calendar year, the following rules apply:
(a) for the purposes of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,
(i) if the series is an exchange-traded series, all units of the series that are held, at a particular time in the fiscal year, by a person that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province,
(ii) if the series is not an exchange-traded series, all units of the series that are held, at a particular time in the fiscal year, by an individual, or a specified investor in the financial institution, that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province, and
(iii) the financial institution is deemed to know, on December 31 of the calendar year, the province in which the particular individual referred to in subparagraph (i) or (ii) is resident;
(b) for the purposes of determining an input tax credit of the financial institution, any supply made during the fiscal year by the financial institution in respect of units of the series that are held by a person that is not resident in Canada is deemed to have been made to a person resident in Canada;
(c) for the purposes of the definitions “external charge” and “qualifying consideration” in section 217, any outlay made, or expense incurred, by the financial institution during the fiscal year in respect of units of the series that are held by a person that is not resident in Canada is deemed to be applicable to a Canadian activity of the financial institution; and
(d) no amount of tax in respect of a business input of the financial institution that becomes payable by the financial institution during the fiscal year or that is paid by the financial institution during the fiscal year without having become payable is to be included in determining an input tax credit of the financial institution if the business input
(i) is acquired or imported for consumption, use or supply in the course of any activity relating to the series, or
(ii) is not an exclusive input of the financial institution.
Marginal note:Non-stratified investment plans
(4) If a selected listed financial institution is a non-stratified investment plan and no election under subsection (7) made by the financial institution is in effect throughout a fiscal year of the financial institution that ends in a calendar year, the following rules apply:
(a) for the purposes of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,
(i) if the financial institution is an exchange-traded fund, all units of the financial institution that are held, at a particular time in the fiscal year, by a person that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province,
(ii) if the financial institution is not an exchange-traded fund, all units of the financial institution that are held, at a particular time in the fiscal year, by an individual, or a specified investor in the financial institution, that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province, and
(iii) the financial institution is deemed to know, on December 31 of the calendar year, the province in which the particular individual referred to in subparagraph (i) or (ii) is resident;
(b) for the purposes of determining an input tax credit of the financial institution, any supply made during the fiscal year by the financial institution in respect of units of the financial institution that are held by a person that is not resident in Canada is deemed to have been made to a person resident in Canada;
(c) for the purposes of the definitions “external charge” and “qualifying consideration” in section 217, any outlay made, or expense incurred, by the financial institution during the fiscal year in respect of units of the financial institution that are held by a person that is not resident in Canada is deemed to be applicable to a Canadian activity of the financial institution; and
(d) no amount of tax in respect of a business input of the financial institution that becomes payable by the financial institution during the fiscal year or that is paid by the financial institution during the fiscal year without having become payable is to be included in determining an input tax credit of the financial institution if the business input is not an exclusive input of the financial institution.
Marginal note:Pension entities and private investment plans
(5) If a selected listed financial institution is an investment plan that is a pension entity of a pension plan or a private investment plan and no election under subsection (7) made by the financial institution is in effect throughout a fiscal year of the financial institution that ends in a calendar year, the following rules apply:
(a) for the purposes of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,
(i) all plan members of the financial institution that the financial institution knows, on December 31 of the calendar year, are not resident in Canada at a particular time in the fiscal year are deemed to be resident in Canada at the particular time but not resident in any participating province, and
(ii) the financial institution is deemed to know, on December 31 of the calendar year, the province in which each of the plan members referred to in subparagraph (i) is resident;
(b) for the purposes of determining an input tax credit of the financial institution, any supply made during the fiscal year by the financial institution in respect of plan members of the financial institution that are not resident in Canada is deemed to have been made to a person resident in Canada;
(c) for the purposes of the definitions “external charge” and “qualifying consideration” in section 217, any outlay made, or expense incurred, by the financial institution during the fiscal year in respect of plan members of the financial institution that are not resident in Canada is deemed to be applicable to a Canadian activity of the financial institution; and
(d) no amount of tax in respect of a business input of the financial institution that becomes payable by the financial institution during the fiscal year or that is paid by the financial institution during the fiscal year without having become payable is to be included in determining an input tax credit of the financial institution if the business input is not an exclusive input of the financial institution.
Marginal note:Election — stratified investment plans
(6) A stratified investment plan may make an election in respect of a series of the investment plan to have subsection (3) not apply to the series, and that election is to be effective from the first day of a fiscal year of the investment plan.
Marginal note:Election — other investment plans
(7) A person that is a non-stratified investment plan, a pension entity or a private investment plan may make an election to have subsection (4) or (5), as the case may be, not apply to the person, and that election is to be effective from the first day of a fiscal year of the person.
Marginal note:Form of election
(8) An election made under subsection (6) or (7) by a person is to
(a) be made in prescribed form containing prescribed information;
(b) set out the first fiscal year of the person during which the election is to be in effect; and
(c) be filed with the Minister in prescribed manner on or before the first day of that first fiscal year or any later day that the Minister may allow.
Marginal note:Cessation
(9) An election made under subsection (6) or (7) by a person ceases to have effect on the earliest of
(a) the first day of the fiscal year of the person in which the person ceases to be a selected listed financial institution,
(b) in the case of an election made under subsection (6), the first day of the fiscal year of the person in which the person ceases to be a stratified investment plan,
(c) in the case of an election made under subsection (7), the first day of the fiscal year of the person in which the person ceases to be a non-stratified investment plan, a pension entity or a private investment plan, as the case may be, and
(d) the day on which a revocation of the election becomes effective.
Marginal note:Revocation
(10) A person that has made an election under subsection (6) or (7) may revoke the election, effective on the first day of a fiscal year of the person that begins at least five years after the election becomes effective, or on the first day of any earlier fiscal year as the Minister may allow on application by the person, by filing with the Minister in prescribed manner a notice of revocation in prescribed form containing prescribed information no later than the day on which the revocation is to become effective.
Marginal note:Restriction
(11) If a revocation of an election made under subsection (6) or (7) by a person becomes effective on a particular day, any subsequent election under that subsection is not a valid election unless the first day of the fiscal year of the person set out in the subsequent election is a day that is at least five years after the particular day or any earlier day as the Minister may allow on application by the person.
(2) Subsection (1) applies in respect of any fiscal year of a person that ends on or after July 1, 2010, except that for any fiscal year that begins before March 1, 2011, paragraph 225.4(8)(c) of the Act, as enacted by subsection (1), is to be read as follows:
(c) be filed with the Minister in prescribed manner on or before March 1, 2011 or any later day that the Minister may allow.
- Date modified: