T-0.1 - Act respecting the Québec sales tax

Section 289.6 Disposition versions

2020-09-24

289.6. 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 and is not a selected qualifying employer of the pension plan at that time, if the person consumes or uses at that time an employer resource of the person for the purpose of making a supply of a property or a service (in this section referred to as the “pension supply”) 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 employer 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 employer resource (in this section referred to as the “employer resource supply”) on the last day of the fiscal year;

(2)  tax in respect of the employer resource supply is deemed to have become payable on the last day of the 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 employer resource on the last day of the fiscal year,

(b)  except where the pension entity is a selected listed financial institution on the last day of the 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 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 pension entity for consumption, use or supply by the pension entity in 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

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

(b)  in any other case, the product obtained by multiplying the fair market value of the use of the employer resource during the fiscal year as determined on the last day of the fiscal year by the extent to which the employer resource was used during the fiscal year (expressed as a percentage of the total use of the employer resource by the person during the 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 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 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. 86; 2015, c. 21, s. 682; 2020, c. 16, s. 209.

2015-10-21

289.6. 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 and is not a selected qualifying employer of the pension plan at that time, if the person consumes or uses at that time an employer resource of the person for the purpose of making a supply of a property or a service (in this section referred to as the “pension supply”) 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 employer 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 employer resource (in this section referred to as the “employer resource supply”) on the last day of the fiscal year;

(2)  tax in respect of the employer resource supply is deemed to have become payable on the last day of the 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 employer resource on the last day of the fiscal year,

(b)  except where the pension entity is a selected listed financial institution on the last day of the 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 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 pension entity for consumption, use or supply by the pension entity in 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

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

(b)  in any other case, the product obtained by multiplying the fair market value of the use of the employer resource during the fiscal year as determined on the last day of the fiscal year by the extent to which the employer resource was used during the fiscal year (expressed as a percentage of the total use of the employer resource by the person during the 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; and

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

2011, c. 34, s. 146; 2012, c. 28, s. 86; 2015, c. 21, s. 682.

2013-01-01

289.6. 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, the person consumes or uses at that time an employer resource of the person for the purpose of making a supply of a property or a service (in this section referred to as the “pension supply”) 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 employer 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 employer resource (in this section referred to as the “employer resource supply”) on the last day of the fiscal year;

(2)  tax in respect of the employer resource supply is deemed to have become payable on the last day of the 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 employer resource on the last day of the fiscal year,

(b)  except where the pension entity is a selected listed financial institution on the last day of the 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 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 pension entity for consumption, use or supply by the pension entity in 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

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

(b)  in any other case, the product obtained by multiplying the fair market value of the use of the employer resource during the fiscal year as determined on the last day of the fiscal year by the extent to which the employer resource was used during the fiscal year (expressed as a percentage of the total use of the employer resource by the person during the 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; and

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

2011, c. 34, s. 146; 2012, c. 28, s. 86.

2011-12-09

289.6. 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, the person consumes or uses at that time an employer resource of the person for the purpose of making a supply of a property or a service (in this section referred to as the “pension supply”) 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 employer 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 employer resource (in this section referred to as the “employer resource supply”) on the last day of the fiscal year;

(2)  tax in respect of the employer resource supply is deemed to have become payable on the last day of the 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 employer resource on the last day of the fiscal year,

(b)  to have paid tax in respect of the supply referred to in subparagraph a, on the last day of the fiscal year, equal to the amount of tax determined under subparagraph 3, 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 pension entity for consumption, use or supply by the pension entity in 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

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

(b)  in any other case, the product obtained by multiplying the fair market value of the use of the employer resource during the fiscal year as determined on the last day of the fiscal year by the extent to which the employer resource was used during the fiscal year (expressed as a percentage of the total use of the employer resource by the person during the 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; and

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

2011, c. 34, s. 146.