Section 225.4 — Excise Tax Act: Definitions

The following definitions apply in this section. business input has the same meaning as in subsection 141.02(1). ( intrant d’entreprise ) Canadian activity has the same meaning as in section 217. ( activité au Canada ) exclusive input of a person means property or a service that is acquired or imported by the person for consumption or use directly and exclusively for the purpose of making taxable supplies for consideration or directly and exclusively for purposes other than making taxable supplies for consideration. ( intrant exclusif ) In this section, exchange-traded fund , exchange-traded series , individual , investment plan , non-stratified investment plan , plan member , private investment plan , series , specified investor , stratified investment plan and unit have the meaning prescribed by regulation. If a selected listed financial institution is a stratified investment plan and no election under subsection (6) in respect of a series of the financial institution is in effect throughout a fiscal year of the financial institution that ends in a calendar year, the following rules apply: for the purposes of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations , if the series is an exchange-traded series, all units of the series that are held, at a particular time in the fiscal year, by a person that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province, if the series is not an exchange-traded series, all units of the series that are held, at a particular time in the fiscal year, by an individual, or a specified investor in the financial institution, that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province, and the financial institution is deemed to know, on December 31 of the calendar year, the province in which the particular individual referred to in subparagraph (i) or (ii) is resident; for the purposes of determining an input tax credit of the financial institution, any supply made during the fiscal year by the financial institution in respect of units of the series that are held by a person that is not resident in Canada is deemed to have been made to a person resident in Canada; for the purposes of the definitions external charge and qualifying consideration in section 217, any outlay made, or expense incurred, by the financial institution during the fiscal year in respect of units of the series that are held by a person that is not resident in Canada is deemed to be applicable to a Canadian activity of the financial institution;

and no amount of tax in respect of a business input of the financial institution that becomes payable by the financial institution during the fiscal year or that is paid by the financial institution during the fiscal year without having become payable is to be included in determining an input tax credit of the financial institution if the business input is acquired or imported for consumption, use or supply in the course of any activity relating to the series, or is not an exclusive input of the financial institution. If a selected listed financial institution is a non-stratified investment plan and no election under subsection (7) made by the financial institution is in effect throughout a fiscal year of the financial institution that ends in a calendar year, the following rules apply: for the purposes of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations , if the financial institution is an exchange-traded fund, all units of the financial institution that are held, at a particular time in the fiscal year, by a person that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province, if the financial institution is not an exchange-traded fund, all units of the financial institution that are held, at a particular time in the fiscal year, by an individual, or a specified investor in the financial institution, that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province, and the financial institution is deemed to know, on December 31 of the calendar year, the province in which the particular individual referred to in subparagraph (i) or (ii) is resident; for the purposes of determining an input tax credit of the financial institution, any supply made during the fiscal year by the financial institution in respect of units of the financial institution that are held by a person that is not resident in Canada is deemed to have been made to a person resident in Canada; for the purposes of the definitions external charge and qualifying consideration in section 217, any outlay made, or expense incurred, by the financial institution during the fiscal year in respect of units of the financial institution that are held by a person that is not resident in Canada is deemed to be applicable to a Canadian activity of the financial institution;

and no amount of tax in respect of a business input of the financial institution that becomes payable by the financial institution during the fiscal year or that is paid by the financial institution during the fiscal year without having become payable is to be included in determining an input tax credit of the financial institution if the business input is not an exclusive input of the financial institution. If a selected listed financial institution is an investment plan that is a pension entity of a pension plan or a private investment plan and no election under subsection (7) made by the financial institution is in effect throughout a fiscal year of the financial institution that ends in a calendar year, the following rules apply: for the purposes of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations , all plan members of the financial institution that the financial institution knows, on December 31 of the calendar year, are not resident in Canada at a particular time in the fiscal year are deemed to be resident in Canada at the particular time but not resident in any participating province, and the financial institution is deemed to know, on December 31 of the calendar year, the province in which each of the plan members referred to in subparagraph (i) is resident; for the purposes of determining an input tax credit of the financial institution, any supply made during the fiscal year by the financial institution in respect of plan members of the financial institution that are not resident in Canada is deemed to have been made to a person resident in Canada; for the purposes of the definitions external charge and qualifying consideration in section 217, any outlay made, or expense incurred, by the financial institution during the fiscal year in respect of plan members of the financial institution that are not resident in Canada is deemed to be applicable to a Canadian activity of the financial institution;

and no amount of tax in respect of a business input of the financial institution that becomes payable by the financial institution during the fiscal year or that is paid by the financial institution during the fiscal year without having become payable is to be included in determining an input tax credit of the financial institution if the business input is not an exclusive input of the financial institution. A stratified investment plan may make an election in respect of a series of the investment plan to have subsection (3) not apply to the series, and that election is to be effective from the first day of a fiscal year of the investment plan. A person that is a non-stratified investment plan, a pension entity or a private investment plan may make an election to have subsection (4) or (5), as the case may be, not apply to the person, and that election is to be effective from the first day of a fiscal year of the person. An election made under subsection (6) or (7) by a person is to be made in prescribed form containing prescribed information; set out the first fiscal year of the person during which the election is to be in effect;

and be filed with the Minister in prescribed manner on or before the first day of that first fiscal year or any later day that the Minister may allow. An election made under subsection (6) or (7) by a person ceases to have effect on the earliest of the first day of the fiscal year of the person in which the person ceases to be a selected listed financial institution, in the case of an election made under subsection (6), the first day of the fiscal year of the person in which the person ceases to be a stratified investment plan, in the case of an election made under subsection (7), the first day of the fiscal year of the person in which the person ceases to be a non-stratified investment plan, a pension entity or a private investment plan, as the case may be, and the day on which a revocation of the election becomes effective. A person that has made an election under subsection (6) or (7) may revoke the election, effective on the first day of a fiscal year of the person that begins at least five years after the election becomes effective, or on the first day of any earlier fiscal year as the Minister may allow on application by the person, by filing with the Minister in prescribed manner a notice of revocation in prescribed form containing prescribed information no later than the day on which the revocation is to become effective. If a revocation of an election made under subsection (6) or (7) by a person becomes effective on a particular day, any subsequent election under that subsection is not a valid election unless the first day of the fiscal year of the person set out in the subsequent election is a day that is at least five years after the particular day or any earlier day as the Minister may allow on application by the person.