New Harmonized Value-added Tax System Regulations, No. 2 — 7.03
Adaptation — subsection 218.1(1.2) of Act 7.03 If a person is a qualifying taxpayer, within the meaning of subsection 217.1(1) of the Act, for a specified year of the person, as defined in section 217 of the Act, and if the person is a provincial investment plan or provincial stratified investment plan at any time in a fiscal year of the person that ends in the specified year, subsection 218.1(1.2) of the Act is adapted in respect of the specified year as follows: (1.2) Subject to this Part, every qualifying taxpayer that is a provincial investment plan or provincial stratified investment plan at any time in a fiscal year of the qualifying taxpayer that ends in a specified year of the qualifying taxpayer shall, for the specified year and for each particular participating province, pay to Her Majesty in right of Canada, in addition to the tax payable under section 218.01, tax calculated at the tax rate for the particular participating province on (a) if an election under subsection 217.2(1) is in effect for the specified year, the amount determined by the formula A + B where A is the total of all amounts, each of which is an amount in respect of an internal charge for the specified year that is greater than zero determined by the formula A 1 × A 2 where A 1 is the internal charge, and A 2 is (i) in the case of a provincial stratified investment plan, the total of all amounts, each of which is the extent (expressed as a percentage) to which the internal charge is attributable to outlays or expenses that were made or incurred to consume, use or supply the whole or part of property or of a qualifying service in respect of which the internal charge is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer relating to a provincial series of the qualifying taxpayer for the particular participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations , (ii) in the case of a provincial investment plan for the particular participating province, 100%, and (iii) in the case of a provincial investment plan for a province other than the particular participating province, 0%, and B is the total of all amounts, each of which is an amount in respect of an external charge for the specified year that is greater than zero determined by the formula B 1 × B 2 where B 1 is the external charge, and B 2 is (i) in the case of a provincial stratified investment plan, the total of all amounts, each of which is the extent (expressed as a percentage) to which the whole or part of the outlay or expense, which corresponds to the external charge, was made or incurred to consume, use or supply the whole or part of property or of a qualifying service in respect of which the external charge is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer relating to a provincial series of the qualifying taxpayer for the particular participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations , (ii) in the case of a provincial investment plan for the particular participating province, 100%, and (iii) in the case of a provincial investment plan for a province other than the particular participating province, 0%; and (b) in any other case, the total of all amounts, each of which is an amount in respect of qualifying consideration for the specified year that is greater than zero determined by the formula C × D where C is the qualifying consideration, and D is (i) in the case of a provincial stratified investment plan, the total of all amounts, each of which is the extent (expressed as a percentage) to which the whole or part of the outlay or expense, which corresponds to the qualifying consideration, was made or incurred to consume, use or supply the whole or part of property or of a qualifying service in respect of