T-0.1 - Act respecting the Québec sales tax

Section 450.0.7 Disposition versions

2020-09-24

450.0.7. If a person issues a tax adjustment note to a pension entity under section 450.0.5 in respect of employer resources consumed or used for the purpose of making an actual pension supply, a supply of each of those employer resources (in this section referred to as a “particular supply”) is deemed to have been received by the pension entity under subparagraph a of subparagraph 4 of the first paragraph of section 289.6 or 289.6.1 and an amount of tax (in this section referred to as “deemed tax”) in respect of each of the particular supplies, where the pension entity is not a selected listed financial institution on the last day of the fiscal year of the person during which those employer resources were so consumed or used, is deemed to have been paid by the pension entity under subparagraph b of subparagraph 4 of the first paragraph of section 289.6 or 289.6.1, or, where the pension entity is such a financial institution, is deemed to have been paid by the pension entity under clause A of subparagraph ii of paragraph d of subsection 6 or 6.1 of section 172.1 of the Excise Tax Act (R.S.C. 1985, c. E-15) or would be deemed to have been paid by the pension entity under that clause A if the pension entity were a selected listed financial institution on that last day for the purposes of that Act, the following rules apply:

(1)  the tax amount of the tax adjustment note may be deducted in determining the net tax of the person for its reporting period that includes the day on which the tax adjustment note is issued;

(2)  except where the pension entity is a selected listed financial institution on the first day on which an amount of deemed tax is deemed to have been paid, the pension entity 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

A × (B/C);

(3)  except where the pension entity is a selected listed financial institution on the first day on which an amount of deemed tax is deemed to have been paid, for each particular claim period of the pension entity at the end of which the pension entity was a qualifying pension entity and for which any part of an amount of deemed tax in respect of a particular supply is included in the determination of the pension rebate amount of the pension entity, the pension entity shall pay to the Minister, 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

D × E × (B/C) × (F/G); and

(4)  except where the pension entity is a selected listed financial institution on the first day on which an amount of deemed tax is deemed to have been paid, for each particular claim period of the pension entity for which any part of an amount of deemed tax in respect of a particular supply is included in the determination of the pension rebate amount of the pension entity and for which an election under any of sections 402.18, 402.19 and 402.19.1 is made jointly by the pension entity and all participating employers of the pension plan that are, for the calendar year that includes the last day of that 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

D × E × (B/C) × (H/F).

For the purposes of the formulas in the first paragraph,

(1)  A is the total of all amounts, each of which is the total of all input tax refunds that the pension entity is entitled to claim in respect of deemed tax in respect of a particular supply;

(2)  B is the tax amount of the tax adjustment note;

(3)  C is the total of all amounts each of which is an amount of deemed tax in respect of a particular supply;

(4)  D is the total of all amounts each of which is the part of an amount of deemed tax in respect of a particular supply that is an eligible amount of the pension entity for the particular claim period;

(5)  E is 33%;

(6)  F is the amount of the rebate determined for the pension entity under section 402.14 for the particular claim period;

(7)  G is the pension rebate amount of the pension entity for the particular claim period; and

(8)  H is the amount of the deduction determined for the participating employer under section 402.18, subparagraph 1 or 3 of the first paragraph of section 402.19 or section 402.19.1, as the case may be, for the particular claim period.

2011, c. 34, s. 155; 2012, c. 28, s. 164; 2013, c. 10, s. 237; 2015, c. 36, s. 222; 2020, c. 16, s. 246.

2015-12-04

450.0.7. If a person issues a tax adjustment note to a pension entity under section 450.0.5 in respect of employer resources consumed or used for the purpose of making an actual pension supply, a supply of each of those employer resources (in this section referred to as a “particular supply”) is deemed to have been received by the pension entity under subparagraph a of subparagraph 4 of the first paragraph of section 289.6 and an amount of tax (in this section referred to as “deemed tax”) in respect of each of the particular supplies, where the pension entity is not a selected listed financial institution on the last day of the fiscal year of the person during which those employer resources were so consumed or used, is deemed to have been paid by the pension entity under subparagraph b of subparagraph 4 of the first paragraph of section 289.6, or, where the pension entity is such a financial institution, is deemed to have been paid by the pension entity under clause A of subparagraph ii of paragraph d of subsection 6 of section 172.1 of the Excise Tax Act (R.S.C. 1985, c. E-15) or would be deemed to have been paid by the pension entity under that clause A if the pension entity were a selected listed financial institution on that last day for the purposes of that Act, the following rules apply:

(1)  the tax amount of the tax adjustment note may be deducted in determining the net tax of the person for its reporting period that includes the day on which the tax adjustment note is issued;

(2)  except where the pension entity is a selected listed financial institution on the first day on which an amount of deemed tax is deemed to have been paid, the pension entity 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

A × (B/C);

(3)  except where the pension entity is a selected listed financial institution on the first day on which an amount of deemed tax is deemed to have been paid, for each particular claim period of the pension entity at the end of which the pension entity was a qualifying pension entity and for which any part of an amount of deemed tax in respect of a particular supply is an eligible amount of the pension entity, the pension entity shall pay to the Minister, on or before the last day of its claim period that follows its claim period that includes the day on which the tax adjustment note is issued, the amount determined by the formula

D × E × (B/C) × [(F − G)/F]; and

(4)  except where the pension entity is a selected listed financial institution on the first day on which an amount of deemed tax is deemed to have been paid, for each particular claim period of the pension entity for which any part of an amount of deemed tax in respect of a particular supply is an eligible amount of the pension entity and for which an election under any of sections 402.18, 402.19 and 402.19.1 was made jointly by the pension entity and all participating employers of the pension plan that were, for the calendar year that includes the last day of that 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

D × E × (B/C) × (H/F).

For the purposes of the formulas in the first paragraph,

(1)  A is the total of all amounts, each of which is the total of all input tax refunds that the pension entity is entitled to claim in respect of deemed tax in respect of a particular supply;

(2)  B is the tax amount of the tax adjustment note;

(3)  C is the total of all amounts each of which is an amount of deemed tax in respect of a particular supply;

(4)  D is the total of all amounts each of which is the part of an amount of deemed tax in respect of a particular supply that is an eligible amount of the pension entity for the particular claim period;

(5)  E is 33%;

(6)  F is the pension rebate amount of the pension entity for the particular claim period;

(7)  G is the total determined in subparagraph 2 of the second paragraph of section 402.14 in respect of the pension entity for the particular claim period;

(8)  H is the amount of the deduction determined for the participating employer under section 402.18, subparagraph 1 or 3 of the first paragraph of section 402.19 or section 402.19.1, as the case may be, for the particular claim period.

2011, c. 34, s. 155; 2012, c. 28, s. 164; 2013, c. 10, s. 237; 2015, c. 36, s. 222.

2013-06-05

450.0.7. If a person issues a tax adjustment note to a pension entity under section 450.0.5 in respect of employer resources consumed or used for the purpose of making an actual pension supply, a supply of each of those employer resources (in this section referred to as a “particular supply”) is deemed to have been received by the pension entity under subparagraph a of subparagraph 4 of the first paragraph of section 289.6 and an amount of tax (in this section referred to as “deemed tax”) in respect of each of the particular supplies, where the pension entity is not a selected listed financial institution on the last day of the fiscal year of the person during which those employer resources were so consumed or used, is deemed to have been paid by the pension entity under subparagraph b of subparagraph 4 of the first paragraph of section 289.6, or, where the pension entity is such a financial institution, is deemed to have been paid by the pension entity under clause A of subparagraph ii of paragraph d of subsection 6 of section 172.1 of the Excise Tax Act (R.S.C. 1985, c. E-15) or would be deemed to have been paid by the pension entity under that clause A if the pension entity were a selected listed financial institution on that last day for the purposes of that Act, the following rules apply:

(1)  the tax amount of the tax adjustment note may be deducted in determining the net tax of the person for its reporting period that includes the day on which the tax adjustment note is issued;

(2)  except where the pension entity is a selected listed financial institution on the first day on which an amount of deemed tax is deemed to have been paid, the pension entity 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

A × (B/C);

(3)  except where the pension entity is a selected listed financial institution on the first day on which an amount of deemed tax is deemed to have been paid, for each particular claim period of the pension entity for which any part of an amount of deemed tax in respect of a particular supply is an eligible amount of the pension entity, the pension entity shall pay to the Minister, on or before the last day of its claim period that follows its claim period that includes the day on which the tax adjustment note is issued, the amount determined by the formula

D × E × (B/C) × [(F − G)/F]; and

(4)  except where the pension entity is a selected listed financial institution on the first day on which an amount of deemed tax is deemed to have been paid, for each particular claim period of the pension entity for which any part of an amount of deemed tax in respect of a particular supply is an eligible amount of the pension entity and for which an election under any of sections 402.18, 402.19 and 402.19.1 was made jointly by the pension entity and all participating employers of the pension plan that were, for the calendar year that includes the last day of that 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

D × E × (B/C) × (H/F).

For the purposes of the formulas in the first paragraph,

(1)  A is the total of all amounts, each of which is the total of all input tax refunds that the pension entity is entitled to claim in respect of deemed tax in respect of a particular supply;

(2)  B is the tax amount of the tax adjustment note;

(3)  C is the total of all amounts each of which is an amount of deemed tax in respect of a particular supply;

(4)  D is the total of all amounts each of which is the part of an amount of deemed tax in respect of a particular supply that is an eligible amount of the pension entity for the particular claim period;

(5)  E is 33%;

(6)  F is the pension rebate amount of the pension entity for the particular claim period;

(7)  G is the total determined in subparagraph 2 of the second paragraph of section 402.14 in respect of the pension entity for the particular claim period;

(8)  H is the amount of the deduction determined for the participating employer under section 402.18, subparagraph 1 or 3 of the first paragraph of section 402.19 or section 402.19.1, as the case may be, for the particular claim period.

2011, c. 34, s. 155; 2012, c. 28, s. 164; 2013, c. 10, s. 237.

2013-01-01

450.0.7. If a person issues a tax adjustment note to a pension entity under section 450.0.5 in respect of employer resources consumed or used for the purpose of making an actual pension supply, a supply of each of those employer resources (in this section referred to as a “particular supply”) is deemed to have been received by the pension entity under subparagraph a of subparagraph 4 of the first paragraph of section 289.6 and an amount of tax (in this section referred to as “deemed tax”) in respect of each of the particular supplies, where the pension entity is not a selected listed financial institution on the last day of the fiscal year of the person during which those employer resources were so consumed or used, is deemed to have been paid by the pension entity under subparagraph b of subparagraph 4 of the first paragraph of section 289.6, or, where the pension entity is such a financial institution, is deemed to have been paid by the pension entity under clause A of subparagraph ii of paragraph d of subsection 6 of section 172.1 of the Excise Tax Act (R.S.C. 1985, c. E-15) or would be deemed to have been paid by the pension entity under that clause A if the pension entity were also a selected listed financial institution on that last day for the purposes of that Act, the following rules apply:

(1)  the tax amount of the tax adjustment note may be deducted in determining the net tax of the person for its reporting period that includes the day on which the tax adjustment note is issued;

(2)  except where the pension entity is a selected listed financial institution on the first day on which an amount of deemed tax is deemed to have been paid, the pension entity 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

A × (B/C);

(3)  except where the pension entity is a selected listed financial institution on the first day on which an amount of deemed tax is deemed to have been paid, for each particular claim period of the pension entity for which any part of an amount of deemed tax in respect of a particular supply is an eligible amount of the pension entity, the pension entity shall pay to the Minister, on or before the last day of its claim period that follows its claim period that includes the day on which the tax adjustment note is issued, the amount determined by the formula

D × E × (B/C) × [(F − G)/F]; and

(4)  except where the pension entity is a selected listed financial institution on the first day on which an amount of deemed tax is deemed to have been paid, for each particular claim period of the pension entity for which any part of an amount of deemed tax in respect of a particular supply is an eligible amount of the pension entity and for which an election under any of sections 402.18, 402.19 and 402.19.1 was made jointly by the pension entity and all participating employers of the pension plan that were, for the calendar year that includes the last day of that 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

D × E × (B/C) × (H/F).

For the purposes of the formulas in the first paragraph,

(1)  A is the total of all amounts, each of which is the total of all input tax refunds that the pension entity is entitled to claim in respect of deemed tax in respect of a particular supply;

(2)  B is the tax amount of the tax adjustment note;

(3)  C is the total of all amounts each of which is an amount of deemed tax in respect of a particular supply;

(4)  D is the total of all amounts each of which is the part of an amount of deemed tax in respect of a particular supply that is an eligible amount of the pension entity for the particular claim period;

(5)  E is 33%;

(6)  F is the pension rebate amount of the pension entity for the particular claim period;

(7)  G is the total determined in subparagraph 2 of the second paragraph of section 402.14 in respect of the pension entity for the particular claim period;

(8)  H is the amount of the deduction determined for the participating employer under section 402.18, subparagraph 1 or 3 of the first paragraph of section 402.19 or section 402.19.1, as the case may be, for the particular claim period.

2011, c. 34, s. 155; 2012, c. 28, s. 164.

2011-12-09

450.0.7. Where a person issues a tax adjustment note to a pension entity under section 450.0.5 in respect of employer resources consumed or used for the purpose of making an actual pension supply, a supply of each of those employer resources (each of which in this section referred to as a “particular supply”) is deemed to have been received by the pension entity under subparagraph a of subparagraph 4 of the first paragraph of section 289.6 and tax (in this section referred to as “deemed tax”) in respect of each of the particular supplies is deemed to have been paid under subparagraph b of that subparagraph 4 by the pension entity, the following rules apply:

(1)  the tax amount of the tax adjustment note may be deducted in determining the net tax of the person for its reporting period that includes the day on which the tax adjustment note is issued;

(2)  the pension entity 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

A × (B/C);

(3)  for each particular claim period for which any part of an amount of deemed tax in respect of a particular supply is an eligible amount of the pension entity, the pension entity shall pay to the Minister, on or before the last day of its claim period that follows its claim period that includes the day on which the tax adjustment note is issued, the amount determined by the formula

D × E × (B/C) × [(F − G)/F]; and

(4)  for each particular claim period of the pension entity for which any part of an amount of deemed tax in respect of a particular supply is an eligible amount of the pension entity and for which an election under section 402.18 or 402.19 was made jointly by the pension entity and all participating employers of the pension plan that were, for the calendar year that includes the last day of that 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

D × E × (B/C) × (H/F).

For the purposes of the formulas in the first paragraph,

(1)  A is the total of all amounts, each of which is the total of all input tax refunds that the pension entity is entitled to claim in respect of deemed tax in respect of a particular supply;

(2)  B is the tax amount of the tax adjustment note;

(3)  C is the total of all amounts each of which is an amount of deemed tax in respect of a particular supply;

(4)  D is the total of all amounts each of which is the part of an amount of deemed tax in respect of a particular supply that is an eligible amount of the pension entity for the particular claim period;

(5)  E is

(a)  77%, where the pension entity is governed by a pension plan to which more than 50% of the contributions are made by one or more public service bodies that are not entitled to any rebate under section 386,

(b)  88%, where the pension entity is governed by a pension plan to which more than 50% of the contributions are made by one or more public service bodies that are entitled to a rebate under section 386, and

(c)  in any other case, 100%;

(6)  F is the pension rebate amount of the pension entity for the particular claim period;

(7)  G is the total determined in subparagraph 2 of the second paragraph of section 402.14 in respect of the pension entity for the particular claim period;

(8)  H is the amount of the deduction determined for the participating employer under section 402.18 or subparagraph 2 or 3 of the first paragraph of section 402.19, as the case may be, for the particular claim period.

2011, c. 34, s. 155.