T-0.1 - Act respecting the Québec sales tax

Section 433.22 Disposition versions

2017-02-08

433.22. A selected listed financial institution that is an investment plan and the manager of the investment plan may jointly elect to have the rules of the third paragraph apply in relation to a particular reporting period of the manager in which the election is in effect, if, for the purposes of Part IX of the Excise Tax Act (R.S.C. 1985, c. E-15), the investment plan is a registrant and is not a selected listed financial institution.

The rules of the third paragraph apply if an investment plan that is a selected listed financial institution and the manager of the investment plan have made a joint election under subsection 1 of section 55 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations made under the Excise Tax Act in relation to a particular reporting period of the manager in which the election is in effect.

The rules to which the first and second paragraphs refer are the following:

(1)  for the investment plan, no amount of tax under subsection 1 of section 165 of the Excise Tax Act or under any of sections 212, 218 and 218.01 of that Act is to be taken into account in determining the values of A and B in the formula in the first paragraph of section 433.16 or the value of A in the formula in the first paragraph of section 433.16.2, as the case may be, and no amount of tax under any of sections 16, 17, 18 and 18.0.1 is to be taken into account in determining the value of F in the formula in the first paragraph of section 433.16 or the value of D in the formula in the first paragraph of section 433.16.2, as the case may be, if

(a)  the amount of tax is attributable to a supply made by the manager to the investment plan, and

(b)  the amount of tax became payable by the investment plan or was paid by the investment plan without having become payable at a time that is

i.  during the manager’s particular reporting period,

ii.  at a time when an election referred to in the first or second paragraph is in effect between the investment plan and the manager, and

iii.  at a time when no election referred to in the first or second paragraph of section 470.2, as the case may be, is in effect between the investment plan and the manager;

(2)  for the investment plan, sections 433.16 and 433.16.2 do not apply in determining its net tax for a reporting period of the investment plan throughout which an election referred to in the first or second paragraph, as the case may be, and an election referred to in the first or second paragraph of section 470.2, as the case may be, are both in effect between the investment plan and the manager, and in which the manager’s particular reporting period ends; and

(3)  if the manager is not a selected listed financial institution throughout its particular reporting period, the manager may deduct the negative amount that the investment plan could otherwise have deducted under section 433.16 or 433.16.2 for a particular reporting period of the investment plan, where the manager has paid or credited the negative amount to the investment plan, and the manager shall include the positive amount that the investment plan would otherwise have been required to include under either of those sections for the investment plan’s particular reporting period, if the negative or positive amount were determined on the basis of the following assumptions:

(a)  the beginning of the investment plan’s particular reporting period coincided with the later of the beginning of the manager’s particular reporting period and the day in the manager’s particular reporting period on which an election referred to in the first or second paragraph, as the case may be, between the investment plan and the manager becomes effective,

(b)  the end of the investment plan’s particular reporting period coincided with the earlier of the end of the manager’s particular reporting period and the day in the manager’s particular reporting period on which an election referred to in the first or second paragraph, as the case may be, between the investment plan and the manager ceases to have effect,

(c)  subparagraphs 1 and 2 did not apply in respect of the investment plan’s particular reporting period, and

(d)  if, at any time in the investment plan’s particular reporting period, no election referred to in the first or second paragraph of section 470.2, as the case may be, is in effect between the investment plan and the manager, an amount of tax that became payable by the investment plan, or that was paid by the investment plan without having become payable, at that time is included in determining the negative or positive amount only if the amount of tax is attributable to a supply made by the manager to the investment plan.

An election under the first paragraph is to

(1)  be made in the prescribed form containing prescribed information;

(2)  set out the day on which the election is to become effective; and

(3)  be filed with the Minister, in the manner determined by the Minister, before the day on which the election is to become effective or any later day determined by the Minister.

2015, c. 21, s. 756; 2017, c. 1, s. 451.

2015-10-21

433.22. A selected listed financial institution that is an investment plan and the manager of the investment plan may jointly elect to have the rules of the third paragraph apply in relation to a particular reporting period of the manager in which the election is in effect, if, for the purposes of Part IX of the Excise Tax Act (R.S.C. 1985, c. E-15), the investment plan is a registrant and is not a selected listed financial institution.

The rules of the third paragraph apply if an investment plan that is a selected listed financial institution and the manager of the investment plan have made a joint election under subsection 1 of section 55 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations made under the Excise Tax Act in relation to a particular reporting period of the manager in which the election is in effect.

The rules to which the first and second paragraphs refer are the following:

(1)  for the investment plan, no amount of tax under subsection 1 of section 165 of the Excise Tax Act or under any of sections 212, 218 and 218.01 of that Act is to be taken into account in determining the value of A in the formula in the first paragraph of section 433.16 or 433.16.2, as the case may be, and no amount of tax under any of sections 16, 17, 18 and 18.0.1 is to be taken into account in determining the value of F in the formula in the first paragraph of section 433.16 or the value of D in the formula in the first paragraph of section 433.16.2, as the case may be, if

(a)  the amount of tax is attributable to a supply made by the manager to the investment plan, and

(b)  the amount of tax became payable by the investment plan or was paid by the investment plan without having become payable at a time that is

i.  during the manager’s particular reporting period;

ii.  at a time when an election referred to in the first or second paragraph is in effect between the investment plan and the manager, and

iii.  at a time when no election referred to in the first or second paragraph of section 470.2, as the case may be, is in effect between the investment plan and the manager;

(2)  for the investment plan, sections 433.16 and 433.16.2 do not apply in determining its net tax for a reporting period of the investment plan throughout which an election referred to in the first or second paragraph, as the case may be, and an election referred to in the first or second paragraph of section 470.2, as the case may be, are both in effect between the investment plan and the manager, and in which the manager’s particular reporting period ends; and

(3)  if the manager is not a selected listed financial institution throughout its particular reporting period, the manager may deduct the negative amount that the investment plan could otherwise have deducted under section 433.16 or 433.16.2 for a particular reporting period of the investment plan, where the manager has paid or credited the negative amount to the investment plan, and the manager shall include the positive amount that the investment plan would otherwise have been required to include under either of those sections for the investment plan’s particular reporting period, if the negative or positive amount were determined on the basis of the following assumptions:

(a)  the beginning of the investment plan’s particular reporting period coincided with the later of the beginning of the manager’s particular reporting period and the day in the manager’s particular reporting period on which an election referred to in the first or second paragraph, as the case may be, between the investment plan and the manager becomes effective,

(b)  the end of the investment plan’s particular reporting period coincided with the earlier of the end of the manager’s particular reporting period and the day in the manager’s particular reporting period on which an election referred to in the first or second paragraph, as the case may be, between the investment plan and the manager ceases to have effect,

(c)  subparagraphs 1 and 2 did not apply in respect of the investment plan’s particular reporting period, and

(d)  if, at any time in the investment plan’s particular reporting period, no election referred to in the first or second paragraph of section 470.2, as the case may be, is in effect between the investment plan and the manager, an amount of tax that became payable by the investment plan, or that was paid by the investment plan without having become payable, at that time is included in determining the negative or positive amount only if the amount of tax is attributable to a supply made by the manager to the investment plan.

An election under the first paragraph is to

(1)  be made in the prescribed form containing prescribed information;

(2)  set out the day on which the election is to become effective; and

(3)  be filed with the Minister, in the manner determined by the Minister, before the day on which the election is to become effective or any later day determined by the Minister.

2015, c. 21, s. 756.