Section 261.01

Overview of 33% rebate

Part II - Pension entity rebate

As mentioned in the introduction, the new pension entity rebate replaces the multi-employer pension plan rebate for claim periods beginning on or after September 23, 2009.

Under amended section 261.01, a 33% rebate is available to pension entities that are qualifying pension entities on the last day of a particular claim period of the entity. The rebate that may be claimed by a qualifying pension entity for a claim period is equal to the otherwise unrecoverable tax paid by the pension entity that qualifies as an "eligible amount", less the sum of any amounts passed on to qualifying employers as a result of an election between the pension entity and employers.

Pension entities, where more than 10% of the contributions to the pension plan are made or will be made by listed financial institutions, will be ineligible for the rebate. Refer to the definition of "qualifying pension entity" to determine if this limitation applies.

Where the pension entity is not an SLFI throughout the claim period, the rebate is calculated on all "eligible amounts", which generally includes the GST/HST paid by the pension entity on its own purchases of goods and services as well as deemed tax paid on deemed supplies made by the employer to the pension entity under section 172.1 (the provisions of section 172.1 are described in Part IV, "Deemed taxable supplies by employers").