Excise Tax Act — E-15 232.02
Total tax amount 232.02 (1) In this section, total tax amount of a tax adjustment note issued under subsection (2) means the total of the federal component amount and the provincial component amount of the tax adjustment note. Tax adjustment note — subsections 172.1(6) and (6.1) (2) A person may, on a particular day, issue to a pension entity of a pension plan a note (in this section referred to as a “tax adjustment note“) in respect of employer resources consumed or used for the purpose of making a supply (in this section referred to as the “actual pension supply”) of property or a service to the pension entity or to a master pension entity of the pension plan, specifying an amount determined in accordance with paragraph (3)(a) (in this section referred to as the “federal component amount” of the tax adjustment note) and an amount determined in accordance with paragraph (3)(b) (in this section referred to as the “provincial component amount” of the tax adjustment note), if (a) the person is deemed under paragraph 172.1(6)(b) or (6.1)(b) to have collected tax, on or before the particular day, in respect of one or more taxable supplies, deemed to have been made by the person under paragraph 172.1(6)(a) or (6.1)(a), of the employer resources; (b) a supply of each of those employer resources is deemed to have been received by the pension entity under subparagraph 172.1(6)(d)(i) or (6.1)(d)(i) and tax in respect of each of those supplies is deemed to have been paid under subparagraph 172.1(6)(d)(ii) or (6.1)(d)(ii) by the pension entity; and (c) an amount of tax becomes payable, or is paid without having become payable, on or before the particular day, to the person (otherwise than by the operation of section 172.1) in respect of the actual pension supply (i) by the pension entity, if the taxable supplies referred to in paragraph (a) are deemed to have been made under paragraph 172.1(6)(a), or, (ii) by the master pension entity, if the taxable supplies referred to in paragraph (a) are deemed to have been made under paragraph 172.1(6.1)(a). Federal and provincial component amounts (3) For a tax adjustment note issued under subsection (2) on a particular day in respect of employer resources consumed or used for the purpose of making an actual pension supply, (a) the federal component amount shall not exceed the amount determined by the formula A – B where A is (i) if the taxable supplies referred to in paragraph (2)(a) are deemed to have been made under paragraph 172.1(6)(a), the lesser of (A) the total of all amounts, each of which is an amount determined for A in paragraph 172.1(6)(c) in determining an amount of tax that is in respect of one of those employer resources and that is deemed under paragraph 172.1(6)(b) to have become payable and to have been collected on or before the particular day, and (B) the total of all amounts, each of which is an amount of tax under subsection 165(1) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the pension entity in respect of the actual pension supply on or before the particular day, and (ii) if the taxable supplies referred to in paragraph (2)(a) are deemed to have been made under paragraph 172.1(6.1)(a), the lesser of (A) the total of all amounts, each of which is an amount determined for the pension plan under the description of A in paragraph 172.1(6.1)(c) in determining an amount of tax that is in respect of one of those employer resources and that is deemed under paragraph 172.1(6.1)(b) to have become payable and to have been collected on or before the particular day, and (B) the amount determined by the formula A 1 × A 2 where A 1 is the total of all amounts, each of which is an amount of tax under subsection 165(1) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the master pension entity referred to in subsection (2)