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Excise Tax Act

Version of section 172.2 from 2023-06-22 to 2024-05-28:


Marginal note:Excluded amount

  •  (1) For the purposes of this section, an excluded amount of a master pension entity is an amount of tax that

    • (a) is deemed to have been paid by the master pension entity under this Part (other than section 191);

    • (b) became payable, or was paid without having become payable, by the master pension entity at a time when it was entitled to claim a rebate under section 259; or

    • (c) is payable under subsection 165(1), or is deemed under section 191 to have been paid, by the master pension entity in respect of a taxable supply to the master pension entity of a residential complex, an addition to a residential complex or land if, in respect of that supply, the master pension entity is entitled to claim a rebate under section 256.2 or would be so entitled after paying the tax payable in respect of that supply.

  • Marginal note:Designated pension entity

    (2) For the purposes of this section,

    • (a) if a person is a master pension entity of a pension plan having, at any time, only one pension entity, that pension entity is, at that time, the designated pension entity of the pension plan in respect of the person; and

    • (b) if a person is a master pension entity of a pension plan having, at any time, two or more pension entities and if an election made jointly under subsection (4) by the person and one of those pension entities is in effect at that time, that pension entity is, at that time, the designated pension entity of the pension plan in respect of the person.

  • Marginal note:Tax deemed paid by designated pension entity — section 261.01

    (3) For the purposes of section 261.01, if a particular amount of tax becomes payable, or is paid without having become payable, by a master pension entity of one or more pension plans at any time in a fiscal year of the master pension entity and if the particular amount of tax is not an excluded amount of the master pension entity, then, for each of those pension plans, the designated pension entity of the pension plan at that time in respect of the master pension entity is deemed to have paid at that time an amount of tax equal to the amount determined by the formula

    A × B

    where

    A
    is
    • (a) if the designated pension entity is a selected listed financial institution and the particular amount of tax is payable under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1, zero, and

    • (b) in any other case, the amount determined by the formula

      A1 − A2

      where

      A1
      is the particular amount of tax, and
      A2
      is the total of all amounts, each of which is included in the particular amount of tax and is
      • (i) an input tax credit that the master pension entity is entitled to claim in respect of the particular amount of tax,

      • (ii) an amount for which it can reasonably be regarded that the master pension entity has obtained or is entitled to obtain a rebate, refund or remission under any other section of this Act or under any other Act of Parliament, or

      • (iii) an amount that can reasonably be regarded as being included in an amount adjusted, refunded or credited to or in favour of the master pension entity for which a credit note referred to in subsection 232(3) has been received by the master pension entity or a debit note referred to in that subsection has been issued by the master pension entity; and

    B
    is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes that time.
  • Marginal note:Assessment of supplier

    (3.1) For the purposes of subsection (3), tax in respect of a supply of property or a service that became payable by a master pension entity on a particular day is deemed to have become payable by the master pension entity on the day on which the master pension entity pays that tax and not to have become payable on the particular day if

    • (a) the supplier did not, within two years after the particular day, charge that tax;

    • (b) the supplier discloses in writing to the master pension entity that the Minister has assessed the supplier for that tax; and

    • (c) the master pension entity pays that tax on a day that is more than two years after the particular day.

  • Marginal note:Designated pension entity election

    (4) A master pension entity of a pension plan having two or more pension entities may jointly elect with one of those pension entities, in prescribed form containing prescribed information, to have that pension entity be, while the election is in effect, the designated pension entity of the pension plan in respect of the master pension entity for the purposes of this section.

  • Marginal note:Effective period of election

    (5) An election made under subsection (4) by a particular person that is a master pension entity of a pension plan and by another person that is a pension entity of the pension plan becomes effective on the day set out in the election and ceases to have effect on the earliest of

    • (a) the day on which the particular person ceases to be a master pension entity of the pension plan,

    • (b) the day on which the other person ceases to be a pension entity of the pension plan,

    • (c) the day on which an election made under subsection (4) by the particular person and by a third person that is a pension entity of the pension plan becomes effective, and

    • (d) the day specified in a revocation of the election made under subsection (6).

  • Marginal note:Revocation

    (6) A master pension entity and a pension entity that have jointly made an election under subsection (4) may jointly revoke the election, in prescribed form containing prescribed information, effective on the day specified in the revocation.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2017, c. 33, s. 115
  • 2023, c. 26, s. 117

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