T-0.1, r. 2 - Regulation respecting the Québec sales tax

Section 433.16r11 Disposition versions

2021-12-01

433.16R11. The positive or negative amount determined by the following formula is a prescribed amount for a particular reporting period in a fiscal year that ends in a taxation year of a selected listed financial institution:

[G1 × G2 × (G3 / G4) × G5] − G6 + G7.

For the purposes of the formula in the first paragraph,

(1)  G1 is,

(a)  if the financial institution is a large business at any time in the particular reporting period, the aggregate of all amounts each of which is an amount determined for a specified class of specified property or service by the formula

A × B × C; and

(b)  in any other case, zero;

(2)  G2 is the specified percentage of the financial institution as regards Québec for the particular reporting period;

(3)  G3 is the tax rate specified in the first paragraph of section 16 of the Act;

(4)  G4 is the tax rate specified in subsection 1 of section 165 of the Excise Tax Act (R.S.C. 1985, c. E-15);

(5)  G5 is the rate that is the proportion that the total of all amounts each of which is the recapture rate applicable on a particular day in the particular reporting period is of the number of days in the particular reporting period;

(6)  G6 is the aggregate of all amounts each of which is, in respect of a selected road vehicle that the financial institution, in the particular reporting period, either supplies by way of sale to a person that is not related to the financial institution or removes from Canada and registers in a foreign country, and in respect of the last acquisition or importation into Canada of the road vehicle, at any time in another reporting period of the financial institution that is after 31 December 2017, the financial institution included an amount under subparagraph 1 for the other reporting period, an amount determined by the formula

D × E × (F / G) × H × (I / J); and

(7)  G7 is the aggregate of all amounts each of which is, in respect of a selected road vehicle supplied by way of sale in any reporting period by the financial institution,

(a)  if the time of the last acquisition or importation into Canada of the selected road vehicle was before 1 January 2018 and at that time the financial institution was a large business, the amount determined by the formula

K × L × (M / N); and

(b)  in any other case, zero.

For the purposes of the formulas in the second paragraph,

(1)  A is the aggregate of

(a)  all amounts each of which is an amount of tax, other than an amount of tax that is a prescribed amount of tax for the purposes of paragraph a of the description of A in the formula in subsection 2 of section 225.2 of the Excise Tax Act or an amount under subparagraph b of subparagraph 2 of the second paragraph of section 433.16R9, that became payable under subsection 1 of section 165 of that Act or under any of sections 212, 218 and 218.01 of that Act by the financial institution during the particular reporting period in respect of a supply or importation into Canada of property or a service, multiplied by the specified extent of the property or service in respect of the specified class for the particular reporting period;

(b)  all amounts each of which is an amount of tax under subsection 1 of section 165 of the Excise Tax Act in respect of a supply of property or a service, other than a supply to which subparagraph c applies, made by a person to the financial institution that would, in the absence of an election under section 150 of that Act, have become payable by the financial institution during the particular reporting period, multiplied by the specified extent of the property or service in respect of the specified class for the particular reporting period;

(c)  all amounts each of which is an amount — in respect of a supply of property or a service that is made during the particular reporting period by another person to the financial institution and to which an election made by the financial institution under subsection 4 of section 225.2 of the Excise Tax Act or under section 433.17 of the Act applies — equal to tax under subsection 1 of section 165 of the Excise Tax Act calculated on the cost to the other person of supplying the property or service to the financial institution excluding any remuneration to employees of the other person, the cost of financial services and tax under Part IX of the Excise Tax Act, multiplied by the specified extent of the property or service in respect of the specified class for the particular reporting period;

(d)  all amounts each of which is an amount of tax, other than an amount of tax that is a prescribed amount of tax for the purposes of paragraph a of the description of A in the formula in subsection 2 of section 225.2 of the Excise Tax Act, that would have been payable under subsection 1 of section 165 of that Act or under any of sections 212, 218 and 218.01 of that Act by the financial institution during the particular reporting period in respect of a supply or importation into Canada of property or a service, multiplied by the specified extent of the property or service in respect of the specified class for the particular reporting period if,

i.  in the case where the property or a service is acquired or imported into Canada by the financial institution for consumption, use or supply exclusively in the course of commercial activities and, as a result of that consumption, use or supply, no tax under section 212 or 218 of the Excise Tax Act is payable in respect of the acquisition or importation, tax had been payable in respect of the acquisition or importation of the property or service;

ii.  in the case of a supply of property or a service that is deemed under Part IX of the Excise Tax Act to have been made for nil consideration, the supply had not been deemed to have been made for nil consideration if the supplier was not required to pay tax under Title I of the Act or would not have been required to pay tax if that Title I had applied to the supplier, as the case may be, or the supplier claimed or was entitled to claim a refund of the tax under that Title I or would have been entitled to claim such a refund if that Title I had applied to the supplier, as the case may be; and

iii.  in the case of a supply of property or a service that is deemed under paragraph c of subsection 1 of section 273 of the Excise Tax Act not to be a supply, the supply had not been deemed not to be a supply; and

(e)  if the specified class is qualifying road vehicles and the financial institution is engaged in the business of supplying such road vehicles by way of sale, all amounts each of which is, for a selected road vehicle described in subparagraph a of paragraph 6 of the definition of "excluded property or service" in section 433.16R2 that was acquired or imported into Canada by the financial institution and is used by the financial institution, at any time in the particular reporting period, otherwise than exclusively for the purpose referred to in that subparagraph a, an amount determined by the formula

O × P × 2.5%;

(2)  B is the tax recovery rate of the financial institution for the specified class for the particular reporting period;

(3)  C is,

(a)  in the case where the specified class is described in paragraph 3 of section 433.16R3, 50%; and

(b)  in any other case, 100%;

(4)  D is the amount determined under subparagraph 1 of the second paragraph in the other reporting period in respect of the last acquisition or importation of the road vehicle into Canada;

(5)  E is the specified percentage of the financial institution as regards Québec for the other reporting period;

(6)  F is the tax rate specified in the first paragraph of section 16 of the Act as of the last day of the other reporting period;

(7)  G the tax rate specified in subsection 1 of section 165 of the Excise Tax Act;

(8)  H is the amount determined for G5 in the formula in the first paragraph, determined for the financial institution for the other reporting period;

(9)  I is,

(a)  if the financial institution supplies the selected road vehicle and the recipient of the supply is not dealing at arm’s length with the financial institution or if the financial institution removes the road vehicle from Canada, the fair market value of the road vehicle at the time of the supply or removal; and

(b)  in any other case, the consideration for the supply by way of sale of the selected road vehicle;

(10)  J is the consideration in respect of the last acquisition of the selected road vehicle by the financial institution, or the value in respect of the last importation of the selected road vehicle into Canada by the financial institution, in respect of which the amount determined under subparagraph 4 is attributable;

(11)  K is the amount of the input tax credit in respect of the selected road vehicle under subsection 1 of section 203 of the Excise Tax Act that was claimed by the financial institution in the return under Division V of Part IX of that Act filed by the financial institution for the particular reporting period that is included in the total B amounts for the particular reporting period;

(12)  L is the percentage referred to in subparagraph 2 of the second paragraph;

(13)  M is the rate referred to in subparagraph 3 of the second paragraph; and

(14)  N is the rate referred to in subparagraph 4 of the second paragraph.

For the purposes of the formula in subparagraph e of subparagraph 1 of the third paragraph,

(1)  O is an amount of tax, other than an amount of tax that is a prescribed amount of tax for the purposes of paragraph a of the description of A in the formula in subsection 2 of section 225.2 of the Excise Tax Act, that became payable by the financial institution under subsection 1 of section 165 of that Act or under any of sections 212, 218 and 218.01 of that Act in respect of the supply or importation into Canada of the road vehicle; and

(2)  P is the number of fiscal months in the particular reporting period during which the road vehicle was used otherwise than exclusively for the purpose referred to in subparagraph a of paragraph 6 of the definition of "excluded property or service" in section 433.16R2.

O.C. 320-2017, s. 4; O.C. 1448-2021, s. 10.

2017-04-12

433.16R11. The positive or negative amount determined by the following formula is a prescribed amount for a particular reporting period in a fiscal year that ends in a taxation year of a selected listed financial institution:

[G1 × G2 × (G3 / G4) × G5] − G6 + G7.

For the purposes of the formula in the first paragraph,

(1)  G1 is,

(a)  if the financial institution is a large business at any time in the particular reporting period, the aggregate of all amounts each of which is an amount determined for a specified class of specified property or service by the formula

A × B × C; and

(b)  in any other case, zero;

(2)  G2 is the specified percentage of the financial institution as regards Québec for the particular reporting period;

(3)  G3 is the tax rate specified in the first paragraph of section 16 of the Act;

(4)  G4 is the tax rate specified in subsection 1 of section 165 of the Excise Tax Act (R.S.C. 1985, c. E-15);

(5)  G5 is the rate that is the proportion that the total of all amounts each of which is the recapture rate applicable on a particular day in the particular reporting period is of the number of days in the particular reporting period;

(6)  G6 is the aggregate of all amounts each of which is, in respect of a selected road vehicle that the financial institution, in the particular reporting period, either supplies by way of sale to a person that is not related to the financial institution or removes from Canada and registers in a foreign country, and in respect of the last acquisition or importation into Canada of the road vehicle, at any time in another reporting period of the financial institution that is after 31 December 2017, the financial institution included an amount under subparagraph 1 for the other reporting period, an amount determined by the formula

D × E × (F / G) × H × (I / J); and

(7)  G7 is the aggregate of all amounts each of which is, in respect of a selected road vehicle supplied by way of sale in any reporting period by the financial institution,

(a)  if the time of the last acquisition or importation into Canada of the selected road vehicle was before 1 January 2018 and at that time the financial institution was a large business, the amount determined by the formula

K × L × (M / N); and

(b)  in any other case, zero.

For the purposes of the formulas in the second paragraph,

(1)  A is the aggregate of

(a)  all amounts each of which is an amount of tax, other than an amount of tax that is a prescribed amount of tax for the purposes of paragraph a of the description of A in the formula in subsection 2 of section 225.2 of the Excise Tax Act or an amount under subparagraph b of subparagraph 2 of the second paragraph of section 433.16R9, that became payable under subsection 1 of section 165 of that Act or under any of sections 212, 218 and 218.01 of that Act by the financial institution during the particular reporting period in respect of a supply or importation into Canada of property or a service, multiplied by the specified extent of the property or service in respect of the specified class for the particular reporting period;

(b)  all amounts each of which is an amount of tax under subsection 1 of section 165 of the Excise Tax Act in respect of a supply of property or a service, other than a supply to which subparagraph c applies, made by a person to the financial institution that would, in the absence of an election under section 150 of that Act, have become payable by the financial institution during the particular reporting period, multiplied by the specified extent of the property or service in respect of the specified class for the particular reporting period;

(c)  all amounts each of which is an amount, in respect of a supply made during the particular reporting period of property or a service to which an election made by the financial institution and another person under subsection 4 of section 225.2 of the Excise Tax Act or under section 433.17 of the Act applies, equal to tax under subsection 1 of section 165 of the Excise Tax Act calculated on the cost to the other person of supplying the property or service to the financial institution, excluding any remuneration to employees of the other person, the cost of financial services and tax under Part IX of the Excise Tax Act, multiplied by the specified extent of the property or service in respect of the specified class for the particular reporting period;

(d)  all amounts each of which is an amount of tax, other than an amount of tax that is a prescribed amount of tax for the purposes of paragraph a of the description of A in the formula in subsection 2 of section 225.2 of the Excise Tax Act, that would have been payable under subsection 1 of section 165 of that Act or under any of sections 212, 218 and 218.01 of that Act by the financial institution during the particular reporting period in respect of a supply or importation into Canada of property or a service, multiplied by the specified extent of the property or service in respect of the specified class for the particular reporting period if,

i.  in the case where the property or a service is acquired or imported into Canada by the financial institution for consumption, use or supply exclusively in the course of commercial activities and, as a result of that consumption, use or supply, no tax under section 212 or 218 of the Excise Tax Act is payable in respect of the acquisition or importation, tax had been payable in respect of the acquisition or importation of the property or service;

ii.  in the case of a supply of property or a service that is deemed under Part IX of the Excise Tax Act to have been made for nil consideration, the supply had not been deemed to have been made for nil consideration if the supplier was not required to pay tax under Title I of the Act or would not have been required to pay tax if that Title I had applied to the supplier, as the case may be, or the supplier claimed or was entitled to claim a refund of the tax under that Title I or would have been entitled to claim such a refund if that Title I had applied to the supplier, as the case may be; and

iii.  in the case of a supply of property or a service that is deemed under paragraph c of subsection 1 of section 273 of the Excise Tax Act not to be a supply, the supply had not been deemed not to be a supply; and

(e)  if the specified class is qualifying road vehicles and the financial institution is engaged in the business of supplying such road vehicles by way of sale, all amounts each of which is, for a selected road vehicle described in subparagraph a of paragraph 6 of the definition of "excluded property or service" in section 433.16R2 that was acquired or imported into Canada by the financial institution and is used by the financial institution, at any time in the particular reporting period, otherwise than exclusively for the purpose referred to in that subparagraph a, an amount determined by the formula

O × P × 2,5%;

(2)  B is the tax recovery rate of the financial institution for the specified class for the particular reporting period;

(3)  C is,

(a)  in the case where the specified class is described in paragraph 3 of section 433.16R3, 50%; and

(b)  in any other case, 100%;

(4)  D is the amount determined under subparagraph 1 of the second paragraph in the other reporting period in respect of the last acquisition or importation of the road vehicle into Canada;

(5)  E is the specified percentage of the financial institution as regards Québec for the other reporting period;

(6)  F is the tax rate specified in the first paragraph of section 16 of the Act as of the last day of the other reporting period;

(7)  G the tax rate specified in subsection 1 of section 165 of the Excise Tax Act;

(8)  H is the amount determined for G5 in the formula in the first paragraph, determined for the financial institution for the other reporting period;

(9)  I is,

(a)  if the financial institution supplies the selected road vehicle and the recipient of the supply is not dealing at arm’s length with the financial institution or if the financial institution removes the road vehicle from Canada, the fair market value of the road vehicle at the time of the supply or removal; and

(b)  in any other case, the consideration for the supply by way of sale of the selected road vehicle;

(10)  J is the consideration in respect of the last acquisition of the selected road vehicle by the financial institution, or the value in respect of the last importation of the selected road vehicle into Canada by the financial institution, in respect of which the amount determined under subparagraph 4 is attributable;

(11)  K is the amount of the input tax credit in respect of the selected road vehicle under subsection 1 of section 203 of the Excise Tax Act that was claimed by the financial institution in the return under Division V of Part IX of that Act filed by the financial institution for the particular reporting period that is included in the total B amounts for the particular reporting period;

(12)  L is the percentage referred to in subparagraph 2 of the second paragraph;

(13)  M is the rate referred to in subparagraph 3 of the second paragraph; and

(14)  N is the rate referred to in subparagraph 4 of the second paragraph.

For the purposes of the formula in subparagraph e of subparagraph 1 of the third paragraph,

(1)  O is an amount of tax, other than an amount of tax that is a prescribed amount of tax for the purposes of paragraph a of the description of A in the formula in subsection 2 of section 225.2 of the Excise Tax Act, that became payable by the financial institution under subsection 1 of section 165 of that Act or under any of sections 212, 218 and 218.01 of that Act in respect of the supply or importation into Canada of the road vehicle; and

(2)  P is the number of fiscal months in the particular reporting period during which the road vehicle was used otherwise than exclusively for the purpose referred to in subparagraph a of paragraph 6 of the definition of "excluded property or service" in section 433.16R2.

O.C. 320-2017, s. 4.