Form RC7222 "Election or Revocation for a Qualifying Institution That Is a Selected Listed Financial Institution to Use Particular Methods Specified in an Application Under Subsection 141.02(18) of the ETA for Gst/Hst and Qst Purposes" - Canada

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Download Form RC7222 "Election or Revocation for a Qualifying Institution That Is a Selected Listed Financial Institution to Use Particular Methods Specified in an Application Under Subsection 141.02(18) of the ETA for Gst/Hst and Qst Purposes" - Canada

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Election or Revocation for a Qualifying Institution that is a
Selected Listed Financial Institution to Use Particular Methods Specified in an
Application Under Subsection 141.02(18) of the ETA for GST/HST and QST Purposes
Protected B when completed
Administered by the Canada Revenue Agency
Do not use this area.
Use this form if you are a selected listed financial institution (SLFI) for GST/HST or QST purposes or
both and you are a qualifying institution, other than a financial institution designated as a qualifying
institution under subsection 141.02(25) of the Excise Tax Act (ETA), for a particular fiscal year and
you are electing under subsection 141.02(27) of the ETA to use particular methods specified in the
last application you filed under subsection 141.02(18) of the ETA using Form RC7216, Application,
Renewal, or Revocation of the Authorization for a Qualifying Institution that is a Selected Listed
Financial Institution to Use Particular Input Tax Credit Allocation Methods, to determine the operative
extent and procurative extent of each business input, for the fiscal year where that last application was
not authorized by the Minister. Also use this form to revoke an election previously made under
subsection 141.02(27) of the ETA.
Where you have an election in effect under subsection 141.02(27) of the ETA to use particular methods specified in the last
application filed under subsection 141.02(18) of the ETA to determine the operative extent and procurative extent of each
business input for the particular fiscal year, under section 42.0.21 of the Act respecting the Québec sales tax (ARQST), the same
methods must be used for QST purposes for that particular fiscal year.
Notes
You cannot make this election if you have been designated to be a qualifying institution by the Minister under
subsection 141.02(25) of the ETA for the fiscal year. For more information, see Form RC7221, Application for a Selected Listed
Financial Institution of a Prescribed Class to be Designated as a Qualifying Institution or Revocation of a Previously Granted
Designation.
Do not use this form if you are an SLFI for GST/HST purposes only and not a registrant for QST purposes. Instead, use
Form RC4522, Election or Revocation for a Qualifying Institution to Use Particular Methods Specified in an Application Under
Subsection 141.02(18).
To make this election, fill out parts A, B, C, and E. To revoke a previously made election, fill out parts A, D, and E. Send your
election or notice of revocation on or before the day you are required to file your GST/HST return for the first reporting period of
the fiscal year to which the election applies or would have applied.
For more information, see pages 4 and 5.
Part A – Identification
Legal name and operating, trading or partnership
name of supplier (if different from legal name):
Business number:
R T
Mailing address
Unit No. – Street No. Street name, PO Box, RR:
City:
Province or territory:
Postal code:
RC7222 E (20)
(Ce formulaire est disponible en français.)
Page 1 of 5
Clear Data
Election or Revocation for a Qualifying Institution that is a
Selected Listed Financial Institution to Use Particular Methods Specified in an
Application Under Subsection 141.02(18) of the ETA for GST/HST and QST Purposes
Protected B when completed
Administered by the Canada Revenue Agency
Do not use this area.
Use this form if you are a selected listed financial institution (SLFI) for GST/HST or QST purposes or
both and you are a qualifying institution, other than a financial institution designated as a qualifying
institution under subsection 141.02(25) of the Excise Tax Act (ETA), for a particular fiscal year and
you are electing under subsection 141.02(27) of the ETA to use particular methods specified in the
last application you filed under subsection 141.02(18) of the ETA using Form RC7216, Application,
Renewal, or Revocation of the Authorization for a Qualifying Institution that is a Selected Listed
Financial Institution to Use Particular Input Tax Credit Allocation Methods, to determine the operative
extent and procurative extent of each business input, for the fiscal year where that last application was
not authorized by the Minister. Also use this form to revoke an election previously made under
subsection 141.02(27) of the ETA.
Where you have an election in effect under subsection 141.02(27) of the ETA to use particular methods specified in the last
application filed under subsection 141.02(18) of the ETA to determine the operative extent and procurative extent of each
business input for the particular fiscal year, under section 42.0.21 of the Act respecting the Québec sales tax (ARQST), the same
methods must be used for QST purposes for that particular fiscal year.
Notes
You cannot make this election if you have been designated to be a qualifying institution by the Minister under
subsection 141.02(25) of the ETA for the fiscal year. For more information, see Form RC7221, Application for a Selected Listed
Financial Institution of a Prescribed Class to be Designated as a Qualifying Institution or Revocation of a Previously Granted
Designation.
Do not use this form if you are an SLFI for GST/HST purposes only and not a registrant for QST purposes. Instead, use
Form RC4522, Election or Revocation for a Qualifying Institution to Use Particular Methods Specified in an Application Under
Subsection 141.02(18).
To make this election, fill out parts A, B, C, and E. To revoke a previously made election, fill out parts A, D, and E. Send your
election or notice of revocation on or before the day you are required to file your GST/HST return for the first reporting period of
the fiscal year to which the election applies or would have applied.
For more information, see pages 4 and 5.
Part A – Identification
Legal name and operating, trading or partnership
name of supplier (if different from legal name):
Business number:
R T
Mailing address
Unit No. – Street No. Street name, PO Box, RR:
City:
Province or territory:
Postal code:
RC7222 E (20)
(Ce formulaire est disponible en français.)
Page 1 of 5
Clear Data
Protected B
when completed
Part B – Eligibility
1. Were the particular methods you are electing to use for the fiscal year (indicated in Part C)
specified in your last application to use those methods which was filed under
Yes
No
subsection 141.02(18) of the ETA for that fiscal year using Form RC7216 (last application)?
2. Was that last application that specified the particular methods that you are electing to use
Yes
No
for the fiscal year (indicated in Part C) for each of your business inputs, filed within the
applicable filing time frame under paragraph 141.02(19)(b) of the ETA?
3. Did you provide all the requested information within the time frame set out in a written
Yes
No
notice requesting the information?
4. Was the use of the particular methods specified in the last application authorized by the
Yes
No
Minister under paragraph 141.02(20)(a) of the ETA?
5. Did the Minister comply with the notification requirements set out in
Yes
No
paragraph 141.02(20)(b) and subsection 141.02(22) of the ETA for the last application?
6. If the Minister has provided modifications in writing to the particular methods specified in
the last application on or before the particular day described in subsection 141.02(22), are
these modified methods fair and reasonable for the purpose of determining the operative
Yes
No
and procurative extent of your business inputs for the fiscal year (indicated in Part C)?
(Also, answer no if the Minister has not provided modifications in writing to the particular
methods specified in the last application.)
If you answered yes to questions 1 to 3, and no to questions 4 to 6, you are eligible to make the election.
Part C – Election
Fill out this part to make this election.
The qualifying institution identified in Part A elects to use the particular methods specified in the last application filed
under subsection 141.02(18) of the ETA for the fiscal year to determine the operative extent and procurative extent of
every business input of the qualifying institution for the fiscal year indicated below.
Year
Month Day
Year
Month Day
From
to
Part D – Notice of revocation
Fill out this part to revoke a previously made election.
The qualifying institution identified in Part A revokes the election previously made effective the first day of the fiscal year
indicated below.
Year
Month Day
Year
Month Day
From
to
Note
This election will also cease to have effect on the first day of the fiscal year to which the election would have applied and is
considered never to have been made if one of the following applies:
(a) at any time you do not meet the eligibility requirements to make this election
(b) the particular methods referred to in the election are either:
• not fair and reasonable for the purpose of determining the operative extent and procurative extent of your business
inputs for the fiscal year
• not used consistently, or as indicated in your last application, by you throughout that fiscal year
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Protected B
when completed
Part E – Certification
I certify that the information given on this form and in any attached document is correct and complete and that I am
authorized to sign for the qualifying institution that is an SLFI identified in Part A.
Name (print)
Title
Extension
Signature
Year
Month Day
Telephone number
Personal information is collected for purposes of the administration or enforcement of Part IX of the Excise Tax Act, the Act respecting the Québec sales tax,
the Tax Administration Act (Quebec), and related programs and activities including administering tax, rebates, elections, audit, compliance, and collection. The
information collected may be used or disclosed for the purposes of other federal acts that provide for the imposition and collection of a tax or duty. It may also
be disclosed to other federal, provincial, territorial or foreign government institutions to the extent authorized by law. Failure to provide this information may
result in interest payable, penalties or other actions. Under the Privacy Act, individuals have a right of protection, access to and correction of their personal
information, or to file a complaint to the Privacy Commissioner of Canada regarding the handling of the individual's personal information. Refer to Personal
Information Bank CRA PPU 241 on Info Source at canada.ca/cra-info-source.
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General Information
Non-attributable input of a person means property or a
Definitions
service that is:
Note
For QST purposes, "acquired, imported or brought into a
• not an excluded input or an exclusive input of the person
participating province" should be read as "acquired or
• acquired, imported, or brought into a participating province
brought into Quebec", where applicable in the definitions.
by the person
Adjusted tax credit amount means the amount
• not attributable to the making of any particular supply by
determined, for a fiscal year of a person, by the formula:
the person
A × 365 / B
Procurative extent of property or a service means the extent
to which the property or service is acquired, imported, or
where:
brought into a participating province for either of the following:
A is the tax credit amount of the person for the fiscal year.
• for the purpose of making taxable supplies
B is the number of days in the fiscal year.
for consideration
Bank, for a fiscal year, means a bank or an authorized foreign
• for purposes other than making taxable supplies
bank within the meaning of section 2 of the Bank Act, but
for consideration
does not include an insurer.
Qualifying institution, for a particular fiscal year, means a
Business input means an excluded input, an exclusive input
financial institution that meets all of the following requirements
or a residual input.
in the fiscal year:
Direct input means property or a service, other than:
• The financial institution is of a prescribed class at any time
in the particular fiscal year. The prescribed classes are
• an excluded input
banks, insurers, and securities dealers (as described on
• an exclusive input
this page and page 5).
• a non-attributable input
• The financial institution has two fiscal years immediately
preceding the particular fiscal year.
Generally, a direct input of a person is property or a service
• In each of those 2 fiscal years, the financial institution had
that is neither capital property nor an improvement to capital
an adjusted tax credit amount equal to or exceeding
property, that can be attributed in whole or in part to the
$500,000.
making of a particular supply or supplies, and that is acquired,
imported or brought into a participating province, or consumed
• In each of those two fiscal years, the financial institution
or used, both for the purpose of making taxable supplies for
had a tax credit rate equal to or exceeding the prescribed
consideration and for purposes other than making taxable
percentage for the prescribed class of the financial
supplies for consideration.
institution for the particular fiscal year. The prescribed
percentage is 12% for banks, 10% for insurers, and 15%
Excluded input of a person means any of the following:
for securities dealers.
• property that is for use by the person as capital property
Requested information means any information, additional
information or document in respect of an application made by
• property or a service that is acquired, imported, or brought
a person under subsection 141.02(18) of the ETA that the
into a participating province by the person for use as an
Minister requests in writing from the person.
improvement to capital property of the person
Residual input means a direct input or a non-attributable
Exclusive input of a person means property or a service
input.
(other than an excluded input) that a person acquired,
imported, or brought into a participating province for
Residual input tax amount of a person for a fiscal year
consumption or use for either of the following:
means:
• directly and exclusively for the purpose of making taxable
• If the person is a selected listed financial institution at any
supplies for consideration
time in the fiscal year, an amount of tax under any of
• directly and exclusively for purposes other than making
subsection 165(1) and sections 212, 218 and 218.01 in
taxable supplies for consideration
respect of a supply or importation of a residual input that
became payable by the person during the fiscal year
Insurer, for a fiscal year, means a person who is licensed or
without having been paid before the fiscal year or was paid
otherwise authorized under the laws of Canada or a province
by the person during the fiscal year without having become
to carry on in Canada an insurance business or under the
payable.
laws of another jurisdiction to carry on in that other jurisdiction
• In any other case, an amount of tax in respect of a supply,
an insurance business and carries on, at any time in the fiscal
importation or bringing into a participating province of a
year, an insurance business as its principal business in
residual input that became payable by the person during
Canada.
the fiscal year without having been paid before the fiscal
Minister means the Minister of National Revenue.
year or was paid by the person during the fiscal year
without having become payable.
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Securities dealer, for a fiscal year, means a person who:
Tax credit amount of a person for a fiscal year of the person
means:
• is not a bank or an insurer (as described on page 4) at any
time in the fiscal year
• If the person has made an election under
subsection 141.02(9) in respect of the fiscal year, the total
• carries on at any time in the fiscal year a business as a
of all amounts each of which is an input tax credit (ITC) for
trader or dealer in, or as a broker or salesperson of,
the fiscal year in respect of residual input tax amount of the
securities as the principal business of the person in Canada
person for the fiscal year that the person would, in the
• is registered under the laws of Canada or a province to
absence of that subsection, be entitled to claim.
carry on in Canada at any time in the fiscal year a business
• If the person is a qualifying institution for the fiscal year,
as a trader or dealer in, or as a broker or salesperson of,
has not made an election under subsection 141.02(7) or
securities
(27) in respect of the fiscal year and has not received an
authorization from the Minister to use for the fiscal year the
Selected listed financial institution (SLFI) – For GST/HST
particular methods set out in an application made under
purposes, a financial institution would generally be considered
subsection 141.02(18), the total of all amounts each of
to be an SLFI throughout a reporting period in a fiscal year
which is an ITC for the fiscal year in respect of a residual
that ends in its tax year if it is a listed financial institution
input tax amount of the person for the fiscal year that the
described in any of subparagraphs 149(1)(a)(i) to (x) of the
person would, if the person were not a qualifying institution
ETA at any time in the tax year, and the financial institution
for the fiscal year and did not make an election under
meets one of the following conditions:
subsection 141.02(9) in respect of the fiscal year, be
• It has, at any time in the tax year, a permanent
entitled to claim.
establishment in a participating province and has, at any
• In any other case, the total of all amounts each of which is
time in the tax year, a permanent establishment in any
an ITC for the fiscal year in respect of a residual input tax
other province.
amount of the person for the fiscal year that the person is
• It is a qualifying partnership during the tax year.
entitled to claim.
For QST purposes a financial institution would generally be
Tax credit rate of a person for a fiscal year of the person
considered to be an SLFI throughout a reporting period in a
means the quotient, expressed as a percentage, determined
fiscal year that ends in its tax year if it is described in any of
by dividing the tax credit amount of the person for the fiscal
paragraphs 1 to 10 of the definition of listed financial
year by the total tax amount of the person for the fiscal year.
institution in section 1 of the ARQST (which parallel
Total tax amount of a person for a fiscal year of the person
subparagraphs 149(1)(a)(i) to (x) of the ETA) at any time in
means the total of all amounts each of which is a residual
the tax year, and the financial institution meets one of the
input tax amount of the person for the fiscal year.
following conditions:
Where do you send this form?
It has, at any time in the tax year, a permanent
establishment in Quebec and has, at any time in the
Send this form to the Assistant Director of GST/HST Audit of
tax year, a permanent establishment in any other province.
your tax services office (TSO). To get the address of your
TSO, go to canada.ca/cra-offices.
It is a qualifying partnership during the tax year.
Note
What if you need help?
For purposes of this definition, the meaning of permanent
For more information, go to
establishment is expanded for certain types of listed financial
canada.ca/gst-hst-financial-institutions, see GST/HST
institutions such that the existence of a permanent
Technical Information Bulletin B-099, Application of Section
establishment would generally be determined based on the
141.02 to Financial Institutions That Are Not Qualifying
location of the financial institution's clients, operations, unit
Institutions, or call 1-855-666-5166.
holders, and/or plan members.
For more information, see GST/HST Memorandum 17.6.1,
Definition of "Selected Listed Financial Institution".
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