New Harmonized Value-added Tax System Regulations, No. 2 — 27
Large business 27 (1) For the purposes of the definition large business in subsection 236.01(1) of the Act, a person is a prescribed person for a recapture period if the person is a registrant whose recapture input tax credit threshold amount in respect of the recapture period exceeds $10,000,000. Large business (2) For the purposes of the definition large business in subsection 236.01(1) of the Act, a person is a prescribed person at any time if, at that time, the person is a registrant that is (a) a bank; (b) a corporation licensed or otherwise authorized under the laws of Canada or of a province to carry on in Canada the business of offering to the public its services as a trustee; (c) a credit union; (d) an insurer or any other person whose principal business is providing insurance under insurance policies; (e) a segregated fund of an insurer; (f) an investment plan (as defined in subsection 149(5) of the Act); (g) the Canada Deposit Insurance Corporation; or (h) a person related to a person described in any of paragraphs (a) to (f). Recapture input tax credit threshold amount (3) For the purposes of this section, the recapture input tax credit threshold amount of a particular person in respect of a recapture period is equal to the total of (a) the amount determined by the formula A × (365/B) where A is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) that became due to the particular person in the last fiscal year (in this subsection referred to as the “base year”) of the particular person ending before the first day of the recapture period, or that was paid to the particular person in the base year without having become due, for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the particular person) made in Canada, or made outside Canada through a permanent establishment in Canada, by the particular person, and B is the number of days in the base year, (b) the total of all amounts, each of which is determined, in respect of a person (in this paragraph referred to as the “associate”) that is associated with the particular person at the end of the base year, by the formula C × (365/D) where C is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) that became due to the associate in the last fiscal year of the associate ending before the first day of the recapture period, or that was paid to the associate in that fiscal year without having become due, for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the associate) made in Canada, or made outside Canada through a permanent establishment in Canada, by the associate, and D is the number of days in the last fiscal year of the associate ending before the first day of the recapture period, and (c) the total of all amounts, each of which is determined, in respect of a person (in this paragraph referred to as the “vendor”) that makes a supply of a business to the particular person if, under the agreement for the supply, the particular person acquires, at any time during the 12-month period immediately preceding the recapture period, ownership, possession or use of all or substantially all of the property that can reasonably be regarded as being necessary for the particular person to be capable of carrying on the business and the vendor would, in the absence of paragraph (b), have a recapture input tax credit threshold amount exceeding $10,000,000 in respect of the particular recapture period that includes that time, by the formula (E/F) × (365 - G) where E is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (othe