With respect to various services provided by participating employers of registered pension plans, CRA first noted that:
For purposes of subsection 172.1(6) and (7), an "employer resource" is essentially anything acquired, created, developed and/or produced by the employer including the employee labour and overhead required to do these things.
CRA then stated:
In our view, the following items listed in your submission would be related to the establishment, management or administration of the pension plan or a pension entity of the pension plan and would not qualify as an "excluded activity". We consider each of these items to be in respect of a "pension activity" to which section 172.1 would apply.
- Services pertaining to the establishment or subsequent amendment of a pension plan or plan trust.
- The preparation and filing of actuarial reports, financial reports and other information for a pension plan pursuant to statutory requirements.
- Administration services in relation to the collection of pension contributions and payment of pension benefits.
- The reconciliation of pension contributions to payroll records.
- The maintenance of records pertaining to employee hires, terminations and deaths.
- Pension benefit calculations.
- Pension adjustment calculations.
- Preparation of a pension entity's periodic pension rebate application forms (GST4607) and SLFI returns (GST/HST 494).
- Trustee services rendered by the employer or by third parties contracted by the employer.
- The retention of a trustee for a plan trust.
- Custodial or nominee services for plan trust assets.
- The appraisal of plan trust investment performance.
- The appointment of an investment manager for a plan trust.
- Plan trust portfolio management.
- Investment advice with respect to plan trust assets.
- Salaries or wages paid to employees who invest or manage funds for a pension entity.
- Brokerage, agents' charges and all other property or services relating to the acquisition, utilization or disposal of plan trust assets.
- Legal, accounting or auditing services rendered in respect of plan trust assets.
Conversely, we do not consider the following items listed in your submission to be in respect of a "pension activity". Accordingly, these would not be subject to the deeming rules of section 172.1.
- Third party accounting services supplied to an employer to determine the employer's obligations under section 172.1 of the ETA (i.e., with respect to deemed taxable supplies and the corresponding deemed tax collected).
- In the case of a hostile takeover of an employer, actuarial services and the preparation of an actuarial report to determine the liabilities of a pension plan, for the sole purpose of assessing the related financial impact on the assets and liabilities of a participating employer of the plan.
