Budget and Economic Statement Implementation Act, 2007 (S.C. 2007, c. 35)
Full Document:
Assented to 2007-12-14
195. (1) The Act is amended by adding the following after section 274.1:
Marginal note:Variation of agreement — 2008 rate reduction
274.11 If
(a) at any time before January 1, 2008, a supplier and a recipient enter into an agreement for a taxable supply of property or a service,
(b) the supplier and the recipient at a later time either directly or indirectly
(i) vary or alter the agreement for the supply, or
(ii) terminate the agreement and enter into one or more new agreements with each other or with other persons and under one or more of those agreements the supplier supplies, and the recipient receives, one or more supplies that includes all or substantially all the property or service referred to in paragraph (a),
(c) the supplier, the recipient and, where applicable, the other persons are not dealing with each other at arm’s length at the time the agreement is entered into or at the later time,
(d) tax under subsection 165(1) or section 218 in respect of the supply referred to in paragraph (a) would have been calculated at the rate of 6% or 7%, as the case may be, on all or part of the value of the consideration for the supply attributable to the property or service in the absence of the variation, alteration or termination of the agreement,
(e) tax under subsection 165(1) or section 218 in respect of the supply made under the varied or altered agreement or made under any of the new agreements would, in the absence of this section, be calculated at the rate of 5% on any part of the value of the consideration for the supply, attributable to any part of the property or service, on which tax, in respect of the supply referred to in paragraph (a), was initially calculated at the rate of 6% or 7%, as the case may be, and
(f) the variation or alteration of the agreement or the entering into of the new agreements may not reasonably be considered for both the supplier and the recipient to have been undertaken or arranged primarily for bona fide purposes other than to benefit in any manner from the rate change,
the following rule applies
(g) tax under subsection 165(1) or section 218 in respect of the supply made under the varied or altered agreement or made under any of the new agreements shall be calculated at the rate at which tax would have been calculated under paragraph (d) on any part of the value of the consideration, referred to in paragraph (e), attributable to any part of the property or service.
(2) Subsection (1) applies to any agreement varied, altered, terminated or entered into on or after October 30, 2007.
Related Amendments as a Result of the GST/HST Rate Reduction
2002, c. 9, s. 5Air Travellers Security Charge Act
Marginal note:2006, c. 4, s. 33(1)
196. (1) The portion of paragraph 12(1)(a) of the Air Travellers Security Charge Act before subparagraph (i) is replaced by the following:
(a) $4.67 for each chargeable emplanement included in the service, to a maximum of $9.33, if
Marginal note:2006, c. 4, s. 33(2)
(2) The portion of paragraph 12(1)(b) of the Act before subparagraph (i) is replaced by the following:
(b) $4.90 for each chargeable emplanement included in the service, to a maximum of $9.80, if
Marginal note:2006, c. 4, s. 33(3)
(3) The portion of paragraph 12(1)(d) of the Act before subparagraph (i) is replaced by the following:
(d) $8.34 for each chargeable emplanement included in the service, to a maximum of $16.68, if
Marginal note:2006, c. 4, s. 33(4)
(4) The portion of paragraph 12(2)(b) of the Act before subparagraph (i) is replaced by the following:
(b) $8.34 for each chargeable emplanement by an individual on an aircraft used to transport the individual to a destination outside Canada but within the continental zone, to a maximum of $16.68, if
(5) Subsections (1) to (4) apply in respect of any air transportation service that includes a chargeable emplanement on or after January 1, 2008 and for which any consideration is paid or becomes payable on or after that day.
2002, c. 22Excise Act, 2001
Amendments to the Act
Marginal note:2006, c. 4, s. 34(1)
197. (1) The portion of the definition “taxed tobacco” in section 58.1 of the Excise Act, 2001 before paragraph (a) is replaced by the following:
“taxed tobacco”
« tabac imposé »
“taxed tobacco” of a person means cigarettes, tobacco sticks, loose tobacco and cigars, in respect of which duty has been imposed under section 42 before January 1, 2008 at a rate set out in paragraph 1(b), 2(b) or 3(b) of Schedule 1 or in section 4 of that Schedule, as those provisions read on December 31, 2007, and that, at the beginning of January 1, 2008,
(2) Subsection (1) comes into force, or is deemed to have come into force, on January 1, 2008.
Marginal note:2006, c. 4, s. 34(1)
198. (1) Paragraphs 58.2(a) to (d) of the Act are replaced by the following:
(a) 0.295 cent per cigarette;
(b) 0.275 cent per tobacco stick;
(c) 0.195 cent per gram of loose tobacco; and
(d) 0.19 cent per cigar.
(2) Subsection (1) comes into force, or is deemed to have come into force, on January 1, 2008.
Marginal note:2006, c. 4, s. 34(1)
199. (1) Section 58.3 of the Act is replaced by the following:
Marginal note:Exemption for small retail inventory
58.3 Tax under this Part in respect of the inventory of all taxed tobacco of a person that is held at the beginning of January 1, 2008 at a separate retail establishment of the person is not payable if that retail establishment holds inventory of 30,000 or fewer units.
(2) Subsection (1) comes into force, or is deemed to have come into force, on January 1, 2008.
Marginal note:2006, c. 4, s. 34(1)
200. (1) Subsection 58.5(1) of the Act is replaced by the following:
Marginal note:Returns
58.5 (1) Every person liable to pay tax under this Part shall, on or before February 29, 2008, file a return with the Minister in the prescribed form and manner.
(2) Subsection (1) applies to tax that a person is required to pay under section 58.2 of the Act after December 31, 2007.
Marginal note:2006, c. 4, s. 34(1)
201. (1) Subsection 58.6(1) of the Act is replaced by the following:
Marginal note:Payment
58.6 (1) Every person shall pay to the Receiver General the total tax payable by the person under this Part on or before February 29, 2008.
(2) Subsection (1) applies to tax that a person is required to pay under section 58.2 of the Act after December 31, 2007.
Marginal note:2006, c. 4, s. 35(1)
202. (1) Subparagraphs 216(2)(a)(i) to (iv) of the Act are replaced by the following:
(i) $0.17 multiplied by the number of cigarettes to which the offence relates,
(ii) $0.127 multiplied by the number of tobacco sticks to which the offence relates,
(iii) $0.116 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and
(iv) $0.29 multiplied by the number of cigars to which the offence relates, and
Marginal note:2006, c. 4, s. 35(2)
(2) Subparagraphs 216(3)(a)(i) to (iv) of the Act are replaced by the following:
(i) $0.255 multiplied by the number of cigarettes to which the offence relates,
(ii) $0.19 multiplied by the number of tobacco sticks to which the offence relates,
(iii) $0.174 multiplied by the number of grams of manufactured tobacco other than cigarettes or tobacco sticks to which the offence relates, and
(iv) $0.67 multiplied by the number of cigars to which the offence relates, and
(3) Subsections (1) and (2) come into force on the later of January 1, 2008 and the day on which this Act is assented to.
Marginal note:2006, c. 4, s. 36(1)
203. (1) Paragraphs 240(a) to (c) of the Act are replaced by the following:
(a) $0.361448 per cigarette that was removed in contravention of that subsection,
(b) $0.2105 per tobacco stick that was removed in contravention of that subsection, and
(c) $207.704 per kilogram of manufactured tobacco, other than cigarettes and tobacco sticks, that was removed in contravention of that subsection.
(2) Subsection (1) comes into force on the later of January 1, 2008 and the day on which this Act is assented to.
Marginal note:2006, c. 4, s. 37(1)
204. (1) Paragraph 1(b) of Schedule 1 to the Act is replaced by the following:
(b) $0.425 for each five cigarettes or fraction of five cigarettes contained in any package, in any other case.
(2) Subsection (1) comes into force, or is deemed to have come into force, on January 1, 2008.
Marginal note:2006, c. 4, s. 38(1)
205. (1) Paragraph 2(b) of Schedule 1 to the Act is replaced by the following:
(b) $0.06325 per stick, in any other case.
(2) Subsection (1) comes into force, or is deemed to have come into force, on January 1, 2008.
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