T-0.1 - Act respecting the Québec sales tax

Section 289.5 Disposition versions

2020-09-24

289.5. If a person is both a registrant and a participating employer of a pension plan at any time in a fiscal year of the person (in this section referred to as the “particular fiscal year”) and is not a selected qualifying employer of the pension plan at that time, if the person acquires at that time a specified resource for the purpose of making a supply of all or part of the specified resource to a pension entity of the pension plan for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan and if the specified resource is not an excluded resource of the person in respect of the pension plan, the following rules apply:

(1)  the person is deemed to have made a taxable supply of the specified resource or part on the last day of the particular fiscal year;

(2)  tax in respect of the taxable supply referred to in subparagraph 1 is deemed to have become payable on the last day of the particular fiscal year and the person is deemed to have collected that tax on that day;

(3)  the tax referred to in subparagraph 2 is deemed to be equal to the amount determined by the formula

A × B; and

(4)  for the purpose of determining an input tax refund of the pension entity and for the purposes of subdivision 6.6 of Division I of Chapter VII and sections 450.0.1 to 450.0.12, the pension entity is deemed

(a)  to have received a supply of the specified resource or part on the last day of the particular fiscal year,

(b)  except where the pension entity is a selected listed financial institution on the last day of the particular fiscal year, to have paid tax in respect of the supply referred to in subparagraph a, on that day, equal to the amount determined by the formula

C — D, and

(c)  to have acquired the specified resource or part for consumption, use or supply in the course of its commercial activities to the same extent that the specified resource or part was acquired by the person for the purpose of making a supply of the specified resource or part to the pension entity for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan that are commercial activities of the pension entity.

For the purposes of the formulas in the first paragraph,

(1)  A is the fair market value of the specified resource or part at the time it was acquired by the person;

(2)  B is the provincial factor in respect of the pension plan for the particular fiscal year;

(3)  C is the amount of tax determined in accordance with subparagraph 3 of the first paragraph; and

(4)  D is the total of all amounts each of which is a part of the amount determined in accordance with subparagraph 3

(a)  that is not included in determining the person’s net tax for the reporting period that includes the last day of the particular fiscal year, or

(b)  that the person has recovered or is entitled to recover by way of rebate, refund or remission, or otherwise, under this or any other Act.

2011, c. 34, s. 146; 2012, c. 28, s. 85; 2015, c. 21, s. 681; 2020, c. 16, s. 207.

2015-10-21

289.5. If a person is both a registrant and a participating employer of a pension plan at any time in a fiscal year of the person (in this section referred to as the “particular fiscal year”) and is not a selected qualifying employer of the pension plan at that time, if the person acquires at that time a property or a service (in this section referred to as the “specified resource”) for the purpose of making a supply of all or part of the specified resource to a pension entity of the pension plan for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan and if the specified resource is not an excluded resource of the person in respect of the pension plan, the following rules apply:

(1)  the person is deemed to have made a taxable supply of the specified resource or part on the last day of the particular fiscal year;

(2)  tax in respect of the taxable supply referred to in subparagraph 1 is deemed to have become payable on the last day of the particular fiscal year and the person is deemed to have collected that tax on that day;

(3)  the tax referred to in subparagraph 2 is deemed to be equal to the amount determined by the formula

A × B; and

(4)  for the purpose of determining an input tax refund of the pension entity and for the purposes of subdivision 6.6 of Division I of Chapter VII and sections 450.0.1 to 450.0.12, the pension entity is deemed

(a)  to have received a supply of the specified resource or part on the last day of the particular fiscal year,

(b)  except where the pension entity is a selected listed financial institution on the last day of the particular fiscal year, to have paid tax in respect of the supply referred to in subparagraph a, on that day, equal to the amount of tax determined in accordance with subparagraph 3, and

(c)  to have acquired the specified resource or part for consumption, use or supply in the course of its commercial activities to the same extent that the specified resource or part was acquired by the person for the purpose of making a supply of the specified resource or part to the pension entity for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan that are commercial activities of the pension entity.

For the purposes of the formula in subparagraph 3 of the first paragraph,

(1)  A is the fair market value of the specified resource or part at the time it was acquired by the person; and

(2)  B is the provincial factor in respect of the pension plan for the particular fiscal year.

2011, c. 34, s. 146; 2012, c. 28, s. 85; 2015, c. 21, s. 681.

2013-01-01

289.5. If a person that is a registrant and a participating employer of a pension plan acquires a property or a service (in this section referred to as the “specified resource”) for the purpose of making a supply of all or part of the specified resource to a pension entity of the pension plan for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan and the specified resource is not an excluded resource of the person in respect of the pension plan, the following rules apply:

(1)  the person is deemed to have made a taxable supply of the specified resource or part on the last day of the fiscal year in which the person acquired the specified resource (in this section referred to as the “particular fiscal year”);

(2)  tax in respect of the taxable supply referred to in subparagraph 1 is deemed to have become payable on the last day of the particular fiscal year and the person is deemed to have collected that tax on that day;

(3)  the tax referred to in subparagraph 2 is deemed to be equal to the amount determined by the formula

A × B; and

(4)  for the purpose of determining an input tax refund of the pension entity and for the purposes of subdivision 6.6 of Division I of Chapter VII and sections 450.0.1 to 450.0.12, the pension entity is deemed

(a)  to have received a supply of the specified resource or part on the last day of the particular fiscal year,

(b)  except where the pension entity is a selected listed financial institution on the last day of the particular fiscal year, to have paid tax in respect of the supply referred to in subparagraph a, on that day, equal to the amount of tax determined in accordance with subparagraph 3, and

(c)  to have acquired the specified resource or part for consumption, use or supply in the course of its commercial activities to the same extent that the specified resource or part was acquired by the person for the purpose of making a supply of the specified resource or part to the pension entity for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan that are commercial activities of the pension entity.

For the purposes of the formula in subparagraph 3 of the first paragraph,

(1)  A is the fair market value of the specified resource or part at the time it was acquired by the person; and

(2)  B is the provincial factor in respect of the pension plan for the particular fiscal year.

2011, c. 34, s. 146; 2012, c. 28, s. 85.

2011-12-09

289.5. If a person that is a registrant and a participating employer of a pension plan acquires a property or a service (in this section referred to as the “specified resource”) for the purpose of making a supply of all or part of the specified resource to a pension entity of the pension plan for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan and the specified resource is not an excluded resource of the person in respect of the pension plan, the following rules apply:

(1)  the person is deemed to have made a taxable supply of the specified resource or part on the last day of the fiscal year in which the person acquired the specified resource (in this section referred to as the “particular fiscal year”);

(2)  tax in respect of the taxable supply referred to in subparagraph 1 is deemed to have become payable on the last day of the particular fiscal year and the person is deemed to have collected that tax on that day;

(3)  the tax referred to in subparagraph 2 is deemed to be equal to the amount determined by the formula

A × B; and

(4)  for the purpose of determining an input tax refund of the pension entity and for the purposes of subdivision 6.6 of Division I of Chapter VII and sections 450.0.1 to 450.0.12, the pension entity is deemed

(a)  to have received a supply of the specified resource or part on the last day of the particular fiscal year,

(b)  to have paid tax in respect of the supply referred to in subparagraph a, on the last day of the particular fiscal year, equal to the amount of tax determined under subparagraph 3, and

(c)  to have acquired the specified resource or part for consumption, use or supply in the course of its commercial activities to the same extent that the specified resource or part was acquired by the person for the purpose of making a supply of the specified resource or part to the pension entity for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan that are commercial activities of the pension entity.

For the purposes of the formula in subparagraph 3 of the first paragraph,

(1)  A is the fair market value of the specified resource or part at the time it was acquired by the person; and

(2)  B is the provincial factor in respect of the pension plan for the particular fiscal year.

2011, c. 34, s. 146.