T-0.1 - Act respecting the Québec sales tax

Section 402.19 Disposition versions

2015-12-04

402.19. If a pension entity of a pension plan is a qualifying pension entity on the last day of a claim period of the pension entity, the pension entity makes an election for the claim period jointly with all persons that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan and any of those qualifying employers is not engaged exclusively in commercial activities throughout the claim period, and a valid election is made for the claim period by the pension entity and those persons under subsection 6 of section 261.01 of the Excise Tax Act (R.S.C. 1985, c. E-15), the following rules apply:

(1)  except in the case described in subparagraph 3,

(a)  an amount (in this section referred to as a “shared portion”) is to be determined in respect of each of those qualifying employers by the formula

A × B × C;

(b)  each of those qualifying employers may deduct, in determining its net tax for the reporting period that includes the day on which the election is filed with the Minister, the amount determined by the formula

D × E; and

(2)  (subparagraph repealed);

(3)  if the pension entity is a selected listed financial institution throughout the claim period, each of those qualifying employers may deduct, in determining its net tax for the reporting period that includes the day on which the election is filed with the Minister, the amount determined by the formula

J × K × L/M × B × C × E.

For the purposes of the formulas in the first paragraph,

(1)  A is the pension rebate amount of the pension entity for the claim period;

(2)  B is the percentage specified for the qualifying employer in the election;

(3)  C is

(a)  in the case where employer contributions were made to the pension plan in the calendar year that precedes the calendar year that includes the last day of the claim period (in this section referred to as the “preceding calendar year”), the amount determined by the formula

F/G,

(b)  in the case where subparagraph a does not apply and at least one of the qualifying employers of the pension plan was the employer of one or more active members of the pension plan in the preceding calendar year, the amount determined by the formula

H/I, and

(c)  in any other case, zero;

(4)  D is the shared portion in respect of the qualifying employer as determined under subparagraph 1 of the first paragraph;

(5)  E is the tax recovery rate of the qualifying employer for the fiscal year of the qualifying employer that ended on or before the last day of the claim period;

(6)  J is the value of A in the formula in the definition of “provincial pension rebate amount” in subsection 1 of section 261.01 of the Excise Tax Act (R.S.C. 1985, c. E-15), determined for the claim period, or, where applicable, the value A would have in that formula for the claim period if the pension entity were a selected listed financial institution for the purposes of that Act;

(7)  K is the percentage corresponding to the value C would have, as regards Québec, in the formula in subsection 2 of section 225.2 of the Excise Tax Act, determined for the taxation year in which the pension entity’s fiscal year that includes the claim period ends, if Québec were a participating province within the meaning of subsection 1 of section 123 of that Act and if, where applicable, the pension entity were a selected listed financial institution for the purposes of that Act;

(8)  L is the tax rate specified in the first paragraph of section 16; and

(9)  M is the tax rate specified in subsection 1 of section 165 of the Excise Tax Act.

For the purposes of the formulas in the second paragraph,

(1)  F is the total of all amounts each of which is

(a)  an employer contribution made by the qualifying employer to the pension plan in the preceding calendar year, or

(b)  an employee contribution made by an employee of the qualifying employer to the pension plan in the preceding calendar year, if the qualifying employer made employer contributions to the pension plan in the preceding calendar year;

(2)  G is the total of all amounts each of which is

(a)  if the pension plan is a registered pension plan, an employer contribution made to the pension plan in the preceding calendar year, or

(b)  if the pension plan is a pooled registered pension plan, an amount contributed to the pension plan in the preceding calendar year;

(3)  H is the number of employees of the qualifying employer in the preceding calendar year who were active members of the pension plan in that year; and

(4)  I is the total number of employees of each of those qualifying employers in the preceding calendar year who were active members of the pension plan in that year.

2011, c. 34, s. 154; 2012, c. 28, s. 145; 2015, c. 36, s. 213.

2013-01-01

402.19. If a pension entity of a pension plan is a qualifying pension entity on the last day of a claim period of the entity, the pension entity makes an election for the claim period jointly with all persons that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan and any of those qualifying employers is not engaged exclusively in commercial activities throughout the claim period, the following rules apply:

(1)  except in the case described in subparagraph 3,

(a)  an amount (in this section referred to as a “shared portion”) is to be determined in respect of each of those qualifying employers by the formula

A × B × C;

(b)  each of those qualifying employers may deduct, in determining its net tax for the reporting period that includes the day on which the election is filed with the Minister, the amount determined by the formula

D × E; and

(2)  (subparagraph repealed);

(3)  if the pension entity is a selected listed financial institution throughout the claim period, each of those qualifying employers may deduct, in determining its net tax for the reporting period that includes the day on which the election is filed with the Minister, the amount determined by the formula

J × K × L/M × B × C × E.

For the purposes of the formulas in the first paragraph,

(1)  A is the pension rebate amount of the pension entity for the claim period;

(2)  B is the percentage specified for the qualifying employer in the election;

(3)  C is

(a)  in the case where pension contributions were made to the pension plan in the calendar year that precedes the calendar year that includes the last day of the claim period (in this section referred to as the “preceding calendar year”), the amount determined by the formula

F/G,

(b)  in the case where subparagraph a does not apply and at least one of the qualifying employers of the pension plan was the employer of one or more active members of the pension plan in the preceding calendar year, the amount determined by the formula

H/I, and

(c)  in any other case, zero;

(4)  D is the shared portion in respect of the qualifying employer as determined under subparagraph 1 of the first paragraph;

(5)  E is the tax recovery rate of the qualifying employer for the fiscal year of the qualifying employer that ended on or before the last day of the claim period;

(6)  J is the value of A in the formula in the definition of “provincial pension rebate amount” in subsection 1 of section 261.01 of the Excise Tax Act (R.S.C. 1985, c. E-15), determined for the claim period, or, where applicable, the value A would have in that formula for the claim period if the pension entity were a selected listed financial institution for the purposes of that Act;

(7)  K is the percentage corresponding to the value C would have, as regards Québec, in the formula in subsection 2 of section 225.2 of the Excise Tax Act, determined for the taxation year in which the pension entity’s fiscal year that includes the claim period ends, if Québec were a participating province within the meaning of subsection 1 of section 123 of that Act and if, where applicable, the pension entity were a selected listed financial institution for the purposes of that Act;

(8)  L is the tax rate specified in the first paragraph of section 16; and

(9)  M is the tax rate specified in subsection 1 of section 165 of the Excise Tax Act.

For the purposes of the formulas in the second paragraph,

(1)  F is the total of all amounts each of which is a pension contribution made by the qualifying employer to the pension plan in the preceding calendar year;

(2)  G is the total of all amounts each of which is a pension contribution made to the pension plan in the preceding calendar year;

(3)  H is the number of employees of the qualifying employer in the preceding calendar year who were active members of the pension plan in that year; and

(4)  I is the total number of employees of each of those qualifying employers in the preceding calendar year who were active members of the pension plan in that year.

2011, c. 34, s. 154; 2012, c. 28, s. 145.

2011-12-09

402.19. If a pension entity of a pension plan makes an election for a claim period jointly with all persons that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan and any of those qualifying employers is not engaged exclusively in commercial activities throughout the claim period, the following rules apply:

(1)  an amount (in this section referred to as a “shared portion”) is to be determined in respect of each of those qualifying employers by the formula

A × B × C;

(2)  in the case of a pension plan to which more than 50% of the contributions are made by one or more public service bodies, each of those qualifying employers may deduct, in determining its net tax for the reporting period that includes the day on which the election is filed with the Minister, the amount that is the shared portion determined in its respect; and

(3)  in any other case, each of those qualifying employers may deduct, in determining its net tax for the reporting period that includes the day on which the election is filed with the Minister, the amount determined by the formula

D × E.

For the purposes of the formulas in the first paragraph,

(1)  A is the pension rebate amount of the pension entity for the claim period;

(2)  B is the percentage specified for the qualifying employer in the election;

(3)  C is

(a)  in the case where pension contributions were made to the pension plan in the calendar year that precedes the calendar year that includes the last day of the claim period (in this section referred to as the “preceding calendar year”), the amount determined by the formula

F/G,

(b)  in the case where subparagraph a does not apply and at least one of the qualifying employers of the pension plan was the employer of one or more active members of the pension plan in the preceding calendar year, the amount determined by the formula

H/I, and

(c)  in any other case, zero;

(4)  D is the shared portion in respect of the qualifying employer as determined under subparagraph 1 of the first paragraph; and

(5)  E is the tax recovery rate of the qualifying employer for the fiscal year of the qualifying employer that ended on or before the last day of the claim period.

For the purposes of the formulas in the second paragraph,

(1)  F is the total of all amounts each of which is a pension contribution made by the qualifying employer to the pension plan in the preceding calendar year;

(2)  G is the total of all amounts each of which is a pension contribution made to the pension plan in the preceding calendar year;

(3)  H is the number of employees of the qualifying employer in the preceding calendar year who were active members of the pension plan in that year; and

(4)  I is the total number of employees of each of those qualifying employers in the preceding calendar year who were active members of the pension plan in that year.

2011, c. 34, s. 154.