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Financial Services and Financial Institutions (GST/HST) Regulations (SOR/91-26)

Regulations are current to 2022-11-16 and last amended on 2019-03-04. Previous Versions

Financial Services and Financial Institutions (GST/HST) Regulations

SOR/91-26

EXCISE TAX ACT

Registration 1990-12-18

Financial Services and Financial Institutions (GST/HST) Regulations

P.C. 1990-2735  1990-12-18

His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to subsection 277(1)Footnote * of the Excise Tax Act, is pleased hereby to make the annexed Regulations prescribing services for the purposes of paragraphs (m) and (t) of the definition “financial service” in subsection 123(1) of the Excise Tax Act.

 [Repealed, SOR/2011-56, s. 5]

Interpretation

[
  • SOR/2019-59, s. 3(F)
]
  •  (1) In these Regulations, Act means the Excise Tax Act.

  • (2) In these Regulations, the expressions employee life and health trust, registered disability savings plan, registered education savings plan, registered retirement income fund, registered retirement savings plan and TFSA have the same meanings as in subsection 248(1) of the Income Tax Act.

Prescribed Services

 Any service in relation to the clearing and settlement of cheques and other payment items under the national payments system of the Canadian Payments Association that is supplied by the Association or any of its members is prescribed for the purposes of paragraph (m) of the definition financial service in subsection 123(1) of the Act.

  •  (1) [Repealed, SOR/2019-59, s. 5]

  • (2) The following services are prescribed for the purpose of subparagraph (q)(ii) of the definition financial service in subsection 123(1) of the Act when supplied by a supplier who provides management or administrative services to a person referred to in paragraph (q) of that definition:

    • (a) the issuance of a financial instrument by, or the transfer of ownership of a financial instrument from, the supplier to the person;

    • (b) the operation or maintenance of a savings, chequing, deposit, loan, charge or other account that the person has with the supplier; and

    • (c) if the person is a trust governed by a self-directed registered disability savings plan, a self-directed registered education savings plan, a self-directed registered retirement income fund, a self-directed registered retirement savings plan or a self-directed TFSA, the arranging for the issuance, renewal, variation or transfer of ownership of a financial instrument for the person.

  •  (1) In this section,

    instrument

    instrument means money, an account, a credit card voucher, a charge card voucher or a financial instrument; (effet)

    person at risk

    person at risk, in respect of an instrument in relation to which a service referred to in subsection (2) is provided, means a person who is financially at risk by virtue of the acquisition, ownership or issuance by that person of the instrument or by virtue of a guarantee, an acceptance or an indemnity in respect of the instrument, but does not include a person who becomes so at risk in the course of, and only by virtue of, authorizing a transaction, or supplying a clearing or settlement service, in respect of the instrument. (personne à risque)

  • (2) Subject to subsection (3), the following services, other than a service described in section 3, are prescribed for the purposes of paragraph (t) of the definition financial service in subsection 123(1) of the Act:

    • (a) the transfer, collection or processing of information, and

    • (b) any administrative service, including an administrative service in relation to the payment or receipt of dividends, interest, principal, claims, benefits or other amounts, other than solely the making of the payment or the taking of the receipt.

  • (3) A service referred to in subsection (2) is not a prescribed service for the purposes of paragraph (t) of the definition financial service in subsection 123(1) of the Act where the service is supplied with respect to an instrument by

    • (a) a person at risk,

    • (b) a person that is a member of the same closely related group as a person at risk, if the recipient of the service is not the person at risk or another person that is a member of the same closely related group as the person at risk, or

    • (c) an agent, salesperson or broker who arranges for the issuance, renewal or variation, or the transfer of ownership, of the instrument for a person at risk or a person that is a member of the same closely related group as the person at risk.

  • SOR/93-242, s. 2(F)
  • SOR/2001-61, s. 3
  • SOR/2011-56, s. 6

Prescribed Member for Subsection 132(6) of the Act

 For the purposes of subsection 132(6) of the Act, the following members of an investment limited partnership are prescribed members:

  • (a) a member that is a non-resident trust if the total value of the assets of the member in which one or more persons resident in Canada have a beneficial interest is more than 5% of the total value of the assets of the member; and

  • (b) a member that is a non-resident limited partnership if the total value of all interests in the member held by persons resident in Canada is more than 5% of the total value of all interests in the member.

Prescribed Qualifying Taxpayer for Division IV of Part IX of the Act

 For the purposes of subparagraph 217.1(1)(b)(iv) of the Act, a non-resident trust is a prescribed person if the total value of the assets of the trust in which one or more persons resident in Canada have a beneficial interest is

  • (a) equal to or greater than $10,000,000; and

  • (b) equal to or greater than 10% of the total value of the assets of the trust.

  • SOR/2013-71, s. 18

Prescribed Person for Section 273.2 of the Act

 Selected listed financial institutions that are investment plans, as defined in subsection 1(1) of the Selected Listed Financial Institution Attribution Method (GST/HST) Regulations, are prescribed for the purposes of subsection 273.2(2) of the Act.

  • SOR/2013-71, s. 18
 
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