New Harmonized Value-added Tax System Regulations, No. 2 — 31
credit. Food, beverages and entertainment (5) If, at any time during a reporting period of a person, the person is a large business and the time prescribed by section 30 in respect of a specified provincial input tax credit of the person in respect of a specified property or service described in paragraph 28 (1)(h) is in the reporting period, for the purposes of subsection 236.01(2) of the Act, the amount to be added to the net tax of the person for the reporting period in respect of the specified provincial input tax credit is determined by the formula A × B where A is (a) if the person is a large business at the time that would, in the absence of paragraph 30(1)(b), be the time prescribed by section 30 in respect of the specified provincial input tax credit, 50% of the specified provincial input tax credit, and (b) in any other case, zero; and B is the recapture rate applicable at the specified time in respect of the specified provincial input tax credit. Farmers (6) Despite subsections (2) to (5), no amount is to be added to the net tax of a person for a reporting period of the person as a consequence of those subsections in respect of a specified provincial input tax credit of the person if the chief source of income for the taxation year of the person immediately preceding the reporting period is farming and all of the property or services to which the specified provincial input tax credit relates is primarily consumed or used in the person’s farming activities. Selected listed financial institutions (6.1) Despite subsections (2) to (5), no amount is to be added to the net tax of a person for a reporting period of the person as a consequence of those subsections in respect of a specified provincial input tax credit of the person in respect of an amount of tax that becomes payable by the person while the person is a selected listed financial institution unless the amount of tax (a) is deemed to have been paid by the person under subsection 171(1) or 171.1(2) of the Act; or (b) is prescribed for the purposes of paragraph 169(3)(c) of the Act or paragraph (a) of the description of F in subsection 225.2(2) of the Act. Election to use the SRED proxy (7) For the purposes of subsection (3), a person may, before the first day of a recapture period, elect, for the recapture period, to determine the amount to be added under that subsection in respect of a specified provincial input tax credit (other than a Prince Edward Island recapture amount) of the person in respect of specified energy in accordance with a method described in that subsection. Election to use the production proxy (8) For the purposes of subsection (3), if a person produces tangible personal property for sale, the person may elect to determine the amount to be added under that subsection in respect of a specified provincial input tax credit of the person in respect of specified energy in accordance with a method described in that subsection at all times when the election is in effect. Form and manner of filing (9) An election made under subsection (8) by a person shall (a) be made in prescribed form containing prescribed information; (b) set out the day on which the election is to become effective, which shall be the first day of a recapture period; (c) be filed with the Minister on or before the day on or before which the person must file a return under Division V of Part IX of the Act for the reporting period of the person that includes the day on which the election is to become effective; and (d) remain in effect until a revocation of the election becomes effective. Revocation (10) A person that has made an election under subsection (8) may revoke the election, effective on the first day of a recapture period that begins at least one year after the election became effective, by filing in prescribed manner with the Minister a notice of revocation in prescribed form containing prescribed information on or before the day on or before which the person must file a r