T-0.1 - Act respecting the Québec sales tax

Section 289.6.1 Disposition versions

2020-09-24

289.6.1. If a person that is a registrant consumes or uses at any time in a fiscal year (in this section referred to as the “particular fiscal year”) of the person an employer resource of the person for the purpose of making a supply of property or a service (in this section referred to as the “pension supply”) to a master pension entity for consumption, use or supply by the master pension entity in the course of pension activities in respect of any pension plan that is in the master pension group in respect of the person and the master pension entity at that time, if the person is not at that time a selected qualifying employer of any pension plan in the master pension group and if it is not the case that the employer resource is an excluded resource of the person in respect of any pension plan in the master pension group, the following rules apply:

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

(2)  tax in respect of the employer resource 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 total of all amounts each of which is determined for each pension plan in the master pension group by the formula

A × B × C; and

(4)  for each pension plan in the master pension group, the specified pension entity of the pension plan is deemed for the purpose of determining an input tax refund of the specified 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,

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

(b)  except where the specified 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

D − E, and

(c)  to have acquired the employer resource for consumption, use or supply in the course of its commercial activities to the same extent that the property or service supplied in the pension supply was acquired by the master pension entity for consumption, use or supply by the master pension entity in the course of pension activities of the master pension entity that are commercial activities of the master pension entity.

For the purposes of the formulas in the first paragraph,

(1)  A is

(a)  in the case where the employer resource was consumed by the person during the particular fiscal year for the purpose of making the pension supply, the product obtained when the fair market value of the employer resource at the time the person began consuming it in the particular fiscal year is multiplied by the extent to which that consumption (expressed as a percentage of the total consumption of the employer resource by the person during the particular fiscal year) occurred when the person was both a registrant and a participating employer of the pension plan, or

(b)  in any other case, the product obtained when the fair market value of the use of the employer resource during the particular fiscal year as determined on the last day of the particular fiscal year is multiplied by the extent to which the employer resource was used during the particular fiscal year (expressed as a percentage of the total use of the employer resource by the person during the particular fiscal year) for the purpose of making the pension supply when the person was both a registrant and a participating employer of the pension plan;

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

(3)  C is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes the last day of the particular fiscal year;

(4)  D is the amount of tax determined for the pension plan in accordance with subparagraph 3 of the first paragraph; and

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

(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.

2020, c. 16, s. 210.