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Budget Implementation Act, 2017, No. 2 (S.C. 2017, c. 33)

Assented to 2017-12-14

PART 2Amendments to the Excise Tax Act and to Related Legislation (GST/HST Measures) (continued)

R.S., c. E-15Excise Tax Act (continued)

  • 132 (1) Subsection 232.01(3) of the Act is replaced by the following:

    • Marginal note:Tax adjustment note — subsections 172.1(5) and (5.1)

      (3) A person may, on a particular day, issue to a pension entity of a pension plan a note (in this section referred to as a “tax adjustment note”) in respect of all or part of a specified resource, specifying an amount determined in accordance with paragraph (4)(a) (in this section referred to as the “federal component amount” of the tax adjustment note) and an amount determined in accordance with paragraph (4)(b) (in this section referred to as the “provincial component amount” of the tax adjustment note), if

      • (a) the person is deemed under paragraph 172.1(5)(b) or (5.1)(b) to have collected tax, on or before the particular day, in respect of a taxable supply of the specified resource or part deemed to have been made by the person under paragraph 172.1(5)(a) or (5.1)(a);

      • (b) a supply of the specified resource or part is deemed to have been received by the pension entity under subparagraph 172.1(5)(d)(i) or (5.1)(d)(i) and tax in respect of that supply is deemed to have been paid under subparagraph 172.1(5)(d)(ii) or (5.1)(d)(ii) by the pension entity; and

      • (c) an amount of tax becomes payable, or is paid without having become payable, on or before the particular day to the person (otherwise than by the operation of section 172.1) in respect of a taxable supply of the specified resource or part

        • (i) by the pension entity, if the taxable supply referred to in paragraph (a) is deemed to have been made under paragraph 172.1(5)(a), or

        • (ii) by a master pension entity of the pension plan, if the taxable supply referred to in paragraph (a) is deemed to have been made under paragraph 172.1(5.1)(a).

  • (2) The description of A in paragraph 232.01(4)(a) of the Act is replaced by the following:

    A
    is

    • (i) if the taxable supply referred to in paragraph (3)(a) is deemed to have been made under paragraph 172.1(5)(a), the lesser of

      • (A) the amount determined for A in paragraph 172.1(5)(c) in respect of the specified resource or part, and

      • (B) the total of all amounts, each of which is an amount of tax under subsection 165(1) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the pension entity in respect of a taxable supply of the specified resource or part on or before the particular day, and

    • (ii) if the taxable supply referred to in paragraph (3)(a) is deemed to have been made under paragraph 172.1(5.1)(a), the lesser of

      • (A) the amount determined for the pension plan under the description of A in paragraph 172.1(5.1)(c) in respect of the specified resource or part, and

      • (B) the amount determined by the formula

        A1 × A2

        where

        A1
        is the total of all amounts, each of which is an amount of tax under subsection 165(1) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the master pension entity referred to in subparagraph (3)(c)(ii) in respect of a taxable supply of the specified resource or part on or before the particular day, and
        A2
        is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes the particular day, and

  • (3) The description of C in paragraph 232.01(4)(b) of the Act is replaced by the following:

    C
    is

    • (i) if the taxable supply referred to in paragraph (3)(a) is deemed to have been made under paragraph 172.1(5)(a), the lesser of

      • (A) the amount determined for B in paragraph 172.1(5)(c) in respect of the specified resource or part, and

      • (B) the total of all amounts, each of which is an amount of tax under subsection 165(2) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the pension entity in respect of a taxable supply of the specified resource or part on or before the particular day, and

    • (ii) if the taxable supply referred to in paragraph (3)(a) is deemed to have been made under paragraph 172.1(5.1)(a), the lesser of

      • (A) the amount determined for the pension plan under the description of B in paragraph 172.1(5.1)(c) in respect of the specified resource or part, and

      • (B) the amount determined by the formula and

        C1 × C2

        where

        C1
        is the total of all amounts, each of which is an amount of tax under subsection 165(2) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the master pension entity referred to in subparagraph (3)(c)(ii) in respect of a taxable supply of the specified resource or part on or before the particular day, and
        C2
        is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes the particular day, and

  • (4) The portion of subsection 232.01(5) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Effect of tax adjustment note

      (5) If a person issues a tax adjustment note to a pension entity under subsection (3) in respect of all or part of a specified resource, a supply of the specified resource or part is deemed to have been received by the pension entity under subparagraph 172.1(5)(d)(i) or (5.1)(d)(i) and tax (in this subsection referred to as “deemed tax”) in respect of that supply is deemed to have been paid on a particular day under subparagraph 172.1(5)(d)(ii) or (5.1)(d)(ii) by the pension entity, the following rules apply:

  • (5) The portion of paragraph 232.01(5)(c) of the Act before the formula is replaced by the following:

    • (c) if any part of the amount of the deemed tax is included in the determination of the pension rebate amount of the pension entity for a particular claim period of the pension entity, the pension entity shall pay to the Receiver General — on or before the last day of its claim period that immediately follows its claim period that includes the day on which the tax adjustment note is issued — the amount determined by the formula

  • (6) The portion of paragraph 232.01(5)(c) of the Act before the description of A, as amended by subsection (5), is replaced by the following:

    • (c) if any part of the amount of the deemed tax is included in the determination of the pension rebate amount of the pension entity for a particular claim period of the pension entity, the pension entity shall pay to the Receiver General — on or before the day that is the later of the day on which the application for the rebate is filed and the day that is the last day of its claim period that immediately follows its claim period that includes the day on which the tax adjustment note is issued — the amount determined by the formula

      A × B × (C/D) × (E/F)

      where

  • (7) The descriptions of E and F in paragraph 232.01(5)(c) of the Act are replaced by the following:

    E
    is the amount of the rebate determined for the pension entity under subsection 261.01(2) for the particular claim period, and
    F
    is the pension rebate amount of the pension entity for the particular claim period; and

  • (8) The portion of paragraph 232.01(5)(d) of the Act before the formula is replaced by the following:

    • (d) if any part of the amount of the deemed tax is included in the determination of the pension rebate amount of the pension entity for a claim period of the pension entity and if the pension entity makes an election for the claim period under any of subsections 261.01(5), (6) or (9) jointly with all participating employers of the pension plan that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan, each of those participating employers shall add, in determining its net tax for its reporting period that includes the day on which the tax adjustment note is issued, the amount determined by the formula

  • (9) The portion of paragraph 232.01(5)(d) of the Act before the formula, as enacted by subsection (8), is replaced by the following:

    • (d) if any part of the amount of the deemed tax is included in the determination of the pension rebate amount of the pension entity for a claim period of the pension entity and if the pension entity makes an election for the claim period under any of subsections 261.01(5), (6) or (9) jointly with all participating employers of the pension plan that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan, each of those participating employers shall add, in determining its net tax for its reporting period that includes the day that is the later of the day on which the tax adjustment note is issued and the day on which the election is filed with the Minister, the amount determined by the formula

  • (10) The description of F in paragraph 232.01(5)(d) of the Act is replaced by the following:

    F
    is the pension rebate amount of the pension entity for the claim period.

  • (11) Subsections (1) to (4) are deemed to have come into force on July 22, 2016.

  • (12) Subsection (5) applies in respect of any claim period that begins after September 22, 2009 and ends before July 23, 2016.

  • (13) Subsections (6) and (7) apply in respect of any claim period that ends after July 22, 2016.

  • (14) Subsection (8) applies in respect of any reporting period of a person for which the return under Division V of Part IX of the Act is filed after September 22, 2009 but only if the return was required under that Division to be filed on or before a day that is before July 23, 2016.

  • (15) Subsections (9) and (10) apply in respect of any reporting period of a person for which the return under Division V of Part IX of the Act is filed after July 22, 2016 or is required under that Division to be filed on or before a day that is after July 22, 2016.

  • (16) If a particular amount was assessed under section 296 of the Act as an amount payable under paragraph 232.01(5)(c) of the Act by a pension entity of a pension plan in respect of a tax adjustment note issued to the pension entity, if an eligible amount (as defined in subsection 261.01(1) of the Act) of the pension entity for a particular claim period (as defined in subsection 259(1) of the Act) of the pension entity was included in the determination of the particular amount, if the eligible amount is not included in the determination of the pension rebate amount (as defined in subsection 261.01(1) of the Act) of the pension entity for the particular claim period and if July 23, 2016 is after the last day of the claim period of the pension entity that immediately follows the claim period of the pension entity that includes the day on which the tax adjustment note is issued, then the pension entity is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the eligible amount is not an amount payable under paragraph 232.01(5)(c) of the Act, as amended by subsection (5), and, on receipt of the request and with all due dispatch,

    • (a) the Minister must consider the request; and

    • (b) the Minister must under section 296 of the Act assess, reassess or make an additional assessment of the particular amount, and of any interest, penalty or other obligation of the pension entity, solely for the purpose of taking into account that the eligible amount is not an amount payable under that paragraph 232.01(5)(c).

  • (17) If a particular amount was assessed under section 296 of the Act as an amount payable under paragraph 232.01(5)(d) of the Act by a participating employer of a pension plan in respect of a tax adjustment note that was issued to a pension entity of the pension plan, if an eligible amount (as defined in subsection 261.01(1) of the Act) of the pension entity for a particular claim period (as defined in subsection 259(1) of the Act) of the pension entity was included in the determination of the particular amount, if the eligible amount is not included in the determination of the pension rebate amount (as defined in subsection 261.01(1) of the Act) of the pension entity for the particular claim period and if July 23, 2016 is after the day on which the return is filed under Division V of Part IX of the Act for the reporting period of the participating employer that includes the day on which the tax adjustment note is issued, then the participating employer is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the eligible amount is not an amount payable under paragraph 232.01(5)(d) of the Act, as amended by subsection (8), and, on receipt of the request and with all due dispatch,

    • (a) the Minister must consider the request; and

    • (b) the Minister must under section 296 of the Act assess, reassess or make an additional assessment of the particular amount, and of any interest, penalty or other obligation of the participating employer, solely for the purpose of taking into account that the eligible amount is not an amount payable under that paragraph 232.01(5)(d).

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