Excise Tax Act — E-15 157
Meaning of selected qualifying employer 157 (1) For the purposes of this section, selected qualifying employer has the meaning assigned by subsection 172.1(9). Election for nil consideration (2) For the purposes of this Part, if a participating employer of a pension plan elects jointly with a pension entity of the pension plan, every taxable supply made by the participating employer to the pension entity at a time when the election is in effect is deemed to have been made for no consideration. Election for nil consideration — master pension entity (2.1) A person that is a participating employer of a pension plan and a master pension entity of the pension plan may jointly make an election in respect of taxable supplies made by the person to the master pension entity if A ≥ 90% where A is the total of all percentages, each of which is a master pension factor in respect of a pension plan of which the person is a participating employer for the fiscal year of the master pension entity that includes the day on which the election becomes effective. Effect of subsection (2.1) election (2.2) For the purposes of this Part, every taxable supply made by a participating employer to a master pension entity at a time when a joint election made under subsection (2.1) by the participating employer and the master pension entity is in effect is deemed to have been made for no consideration. Non-application (3) Subsection (2) does not apply to (a) a supply deemed under section 172.1 to have been made; (b) a supply of property or a service that is not acquired by a pension entity of a pension plan for consumption, use or supply by the pension entity in the course of pension activities (as defined in subsection 172.1(1)) in respect of the pension plan; (c) a supply made by a participating employer of a pension plan to a pension entity of the pension plan of all or part of property or a service if, at the time the participating employer acquires the property or service, the participating employer is a selected qualifying employer of the pension plan; (d) a supply made by a participating employer of a pension plan to a pension entity of the pension plan of property or a service if, at the time the participating employer consumes or uses an employer resource (as defined in subsection 172.1(1)) of the participating employer for the purpose of making the supply, the participating employer is a selected qualifying employer of the pension plan; or (e) a supply made in prescribed circumstances or made by a prescribed person. Non-application of subsection (2.2) (3.1) Subsection (2.2) does not apply to (a) a supply deemed under section 172.1 to have been made; (b) a supply of property or a service that is not acquired by a master pension entity of a pension plan for consumption, use or supply by the master pension entity in the course of pension activities (as defined in subsection 172.1(1)) in respect of the pension plan; (c) a supply made by a participating employer of a pension plan to a master pension entity of the pension plan of all or part of property or a service if, at the time the participating employer acquires the property or service, the master pension entity is a master pension entity of one or more pension plans of which the participating employer is a selected qualifying employer; (d) a supply made by a participating employer of a pension plan to a master pension entity of the pension plan of property or a service if, at the time the participating employer consumes or uses an employer resource (as defined in subsection 172.1(1)) of the participating employer for the purpose of making the supply, the master pension entity is a master pension entity of one or more pension plans of which the participating employer is a selected qualifying employer; or (e) a supply made in prescribed circumstances or made by a prescribed person. Joint revocation (4) The persons that have jointly made an election under subsection (2) or (2.1) may jointly revoke th