Excise Tax Act — E-15 261.01
plan in the preceding calendar year, the amount determined by the formula F/G where F is the total number of employees of the qualifying employer in the preceding calendar year who were active members of the pension plan in that year, and G is the sum of the total number of employees of each of those qualifying employers in the preceding calendar year who were active members of the pension plan in that year, and (iii) in any other case, zero; and (b) each of those qualifying employers may deduct in determining its net tax for the reporting period that includes the day on which the election is filed with the Minister an amount determined by the formula (A + B) × C where A is the shared portion in respect of the qualifying employer as determined under paragraph (a), B is the amount determined by the formula D × E × F where D is the provincial pension rebate amount of the pension entity for the claim period, E is the percentage specified for the qualifying employer in the election, and F is the amount determined for C in the formula in paragraph (a), and C is the tax recovery rate of the qualifying employer for the fiscal year of the qualifying employer that ended on or before the last day of the claim period. Engaged exclusively in commercial activities (7) For the purposes of subsections (5) and (6), a qualifying employer of a pension plan is engaged exclusively in commercial activities throughout a claim period of a pension entity of the pension plan if (a) in the case of a qualifying employer that is a financial institution at any time in the claim period, all of the activities of the qualifying employer for the claim period are commercial activities; and (b) in any other case, all or substantially all of the activities of the qualifying employer for the claim period are commercial activities. Form and manner of filing (8) An election made under subsection (5) or (6) by a pension entity of a pension plan and the qualifying employers of the pension plan shall (a) be made in prescribed form containing prescribed information; (b) be filed by the pension entity with the Minister in prescribed manner (i) at the same time the application for the rebate under subsection (2) for the claim period is filed by the pension entity, and (ii) within two years after the day that is (A) if the pension entity is a registrant, the day on or before which the pension entity is required to file a return under Division V for the claim period, and (B) in any other case, the last day of the claim period; (c) in the case of an election under subsection (5), indicate the percentage specified for each qualifying employer, the total of which for all qualifying employers shall not exceed 100%; and (d) in the case of an election under subsection (6), indicate for each qualifying employer the percentage specified for the qualifying employer, which shall not exceed 100%. Non-qualifying pension entities (9) If a pension entity of a pension plan is a non-qualifying pension entity on the last day of a claim period of the pension entity and the pension entity makes an election for the claim period jointly with all persons that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan, each of those qualifying employers may deduct in determining its net tax for the reporting period that includes the day on which the election is filed with the Minister the amount determined by the formula (A + B) × C × D where A is the pension rebate amount of the pension entity for the claim period; B is the provincial pension rebate amount of the pension entity for the claim period; C is (a) in the case where employer contributions were made to the pension plan in the calendar year (in this subsection referred to as the “preceding calendar year”) that immediately precedes the calendar year that includes the last day of the claim period, the amount determined by the formula E/F where E is the total of all amounts, each of