AI-assisted research summary: This provision defines key terms and prescribes classes, amounts, and percentages for applying the GST/HST input tax credit allocation rules.
Input Tax Credit Allocation Methods (GST/HST) Regulations Interpretation The definitions in this section apply in these Regulations. Act means the Excise Tax Act. (Loi) bank in respect of a fiscal year does not include a person that is at any time in the fiscal year an insurer. (banque) insurer in respect of a fiscal year means a person that is an insurer (as defined in subsection 123(1) of the Act) and that carries on at any time in the fiscal year an insurance business as the principal business of the person in Canada. (assureur) securities dealer in respect of a fiscal year means a person that carries on at any time in the fiscal year a business as a trader or dealer in, or as a broker or salesperson of, securities as the principal business of the person in Canada; is registered under the laws of Canada or a province to carry on in Canada at any time in the fiscal year a business as a trader or dealer in, or as a broker or salesperson of, securities; and is not a bank or an insurer at any time in the fiscal year. (courtier en valeurs mobilières) Prescribed classes The following classes of financial institutions are prescribed for the purposes of the definition qualifying institution in subsection 141.02(1) of the Act and for the purposes of subsections 141.02(3), (8), (9), (24) and (30) of the Act: banks; insurers; and securities dealers. Prescribed amounts The following amounts are prescribed for the purposes of the definition qualifying institution in subsection 141.02(1) of the Act and for the purposes of subsection 141.02(24) of the Act: in the case of banks, $500,000; in the case of insurers, $500,000; and in the case of securities dealers, $500,000. Prescribed percentages The following percentages are prescribed for the purposes of the definition qualifying institution in subsection 141.02(1) of the Act and for the purposes of subsections 141.02(8), (9) and (30) of the Act: in the case of banks, 12%; in the case of insurers, 10%; and in the case of securities dealers, 15%. The Input Tax Credit Allocation Methods (GST/HST) Regulations are deemed to have been made under section 277 of the Excise Tax Act; for the purposes of subsection 5(1) of the Statutory Instruments Act, to have been transmitted to the Clerk of the Privy Council for registration; and to have met the publication requirements of subsection 11(1) of the Statutory Instruments Act.