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Marginal note:Prescribed classes — subsection 259(4.1)

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• (2) For the purpose of subsection 259(4.1) of the Act, the rebate in respect of property or a service (other than property or a service prescribed by section 4) for a claim period of a person referred to in subsection (1) is equal to the total of

  • [...]

  • (b) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period for each participating province in which the person is resident — by the formula

    A × B × C

    where

    C 

    is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the participating province,

  • (c) in the case of a person designated for the purposes of section 259 of the Act to be a municipality in respect of activities (in this paragraph referred to as the “designated activities”) specified in the designation that consumes, uses or supplies the property or service in the course of the designated activities, the total of

    • (i) all amounts, each of which is determined — in relation to a federal qualifying amount in respect of the property or service for the claim period — by the formula

      A × B × C

      where

      C 

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of the designated activities, and

    • (ii) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period for each participating province in which the person is resident — by the formula

      D × E × F

      where

      F 

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of the designated activities in the participating province,

  • (d) in the case of a person determined to be a municipality under paragraph (b) of the definition municipality in subsection 123(1) of the Act that consumes, uses or supplies the property or service in the course of fulfilling the person’s responsibilities as a local authority, the total of

    • (i) all amounts, each of which is determined — in relation to a federal qualifying amount in respect of the property or service for the claim period — by the formula

      A × B × C

      where

      C 

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of fulfilling the person’s responsibilities as a local authority, and

    • (ii) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period for each participating province in which the person is resident — by the formula

      D × E × F

      where

      F 

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of fulfilling the person’s responsibilities as a local authority in the participating province,

  • (e) in the case of a person that, acting in the person’s capacity as a hospital authority, consumes, uses or supplies the property or service in the course of activities engaged in by the person in the course of operating a public hospital, of operating a qualifying facility for use in making facility supplies or of making facility supplies, ancillary supplies or home medical supplies, the total of

    • (i) all amounts, each of which is determined — in relation to a federal qualifying amount in respect of the property or service for the claim period — by the formula

      A × B × C

      where

      C 

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of operating a public hospital, of operating a qualifying facility for use in making facility supplies or of making facility supplies, ancillary supplies or home medical supplies, and

    • (ii) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period for each participating province in which the person is resident — by the formula

      D × E × F

      where

      F 

      is

      • (A) if the participating province is Ontario, the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person

        [...]

      • (B) in any other case, the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of operating a public hospital in the participating province,

  • (f) in the case of a person that, acting in the person’s capacity as a facility operator or external supplier, consumes, uses or supplies the property or service in the course of activities engaged in by the person in the course of operating a qualifying facility for use in making facility supplies or of making facility supplies, ancillary supplies or home medical supplies, the total of

    • (i) all amounts, each of which is determined — in relation to a federal qualifying amount in respect of the property or service for the claim period — by the formula

      A × B × C

      where

      C 

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of operating a qualifying facility for use in making facility supplies or of making facility supplies, ancillary supplies or home medical supplies, and

    • (ii) all amounts, each of which is an amount determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period for each participating province in which the person is resident — by the formula

      D × E × F

      where

      F 

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person

      [...]

  • (g) in the case of a person that, acting in the person’s capacity as a school authority, consumes, uses or supplies the property or service in activities engaged in by the person in the course of operating an elementary or secondary school, the total of

    • (i) all amounts, each of which is determined — in relation to a federal qualifying amount in respect of the property or service for the claim period — by the formula

      A × B × C

      where

      C 

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of operating an elementary or secondary school, and

    • (ii) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period for each participating province in which the person is resident — by the formula

      D × E × F

      where

      F 

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of operating an elementary or secondary school in the participating province,

  • (h) in the case of a person that, acting in the person’s capacity as a university or public college, consumes, uses or supplies the property or service in activities engaged in by the person in the course of operating a recognized degree-granting institution, a college affiliated with, or research body of, such an institution or of operating a post-secondary college or post-secondary technical institute, the total of

    • (i) all amounts, each of which is determined — in relation to a federal qualifying amount in respect of the property or service for the claim period — by the formula

      A × B × C

      where

      C 

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of operating a recognized degree-granting institution, a college affiliated with, or research body of, such an institution or of operating a post-secondary college or post-secondary technical institute, and

    • (ii) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period for each participating province in which the person is resident — by the formula

      D × E × F

      where

      F 

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of operating a recognized degree-granting institution, a college affiliated with, or research body of, such an institution or of operating a post-secondary college or post-secondary technical institute in the participating province,

  • (i) in the case of a person resident in Ontario, the total of all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period — by the formula

    A × B × C

    where

    C 

    is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service, in the course of activities, other than activities in respect of which any of paragraphs (c) to (h) applies, engaged in by the person in Ontario,

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  • (k) in the case of a person resident in Prince Edward Island, the total of all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period — by the formula

    A × B × C

    where

    C 

    is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service, in the course of activities, other than activities in respect of which any of paragraphs (c) to (h) applies, engaged in by the person in Prince Edward Island,

  • (l) in the case of a person resident in Newfoundland and Labrador that is designated for the purposes of section 259 of the Act to be a municipality in respect of activities (in this paragraph referred to as the “designated activities”) specified in the designation, the total of

    • (i) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period — by the formula

      A × B × C

      where

      C 

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of the designated activities in Newfoundland and Labrador, and

    • (ii) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period — by the formula

      D × E × F

      where

      F 

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service, in the course of activities, other than activities in respect of which subparagraph (i) or any of paragraphs (c) to (h) applies, engaged in by the person in Newfoundland and Labrador, and

  • (m) in the case of a person resident in Newfoundland and Labrador that is determined to be a municipality under paragraph (b) of the definition municipality in subsection 123(1) of the Act, the total of

    • (i) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period — by the formula

      A × B × C

      where

      C 

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of fulfilling the person’s responsibilities as a local authority in Newfoundland and Labrador, and

    • (ii) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period — by the formula

      D × E × F

      where

      F 

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service, in the course of activities, other than activities in respect of which subparagraph (i) or any of paragraphs (c) to (h) applies, engaged in by the person in Newfoundland and Labrador.

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• 3 (1) For the purposes of the definition percentage of government funding in subsection 259(1) of the Act, the percentage in respect of a particular person for a fiscal year of the particular person shall be determined as the greater of

  • (a) the percentage determined by the formula

    A / A + B + C - D × 100

    where

    A 

    is the amount, if any, by which the total of all amounts, each of which is identified in the annual financial statements of the particular person for the year as government funding of the particular person that is received or became receivable in the year (depending upon the method followed by the person in determining the particular person’s revenue or funding for the year), exceeds the total of all government funding of the particular person that is repaid in the year by the particular person or that became receivable by the particular person before the beginning of the year and is not received before the end of the year,

    B 

    is the total of

    • [...]

    • (iii) the amount, if any, by which

      [...]

      • (B) the total of all amounts paid or credited to recipients in the year as or on account of a reduction in, or a rebate or refund of, all or part of the consideration for supplies made by the particular person to the recipients, and

    • (iv) the amount, if any, by which

      [...]

      • (B) the total of all amounts each of which is an amount of money paid or payable by the particular person as a prize or winnings in the game or in satisfaction of the bet or is consideration paid or payable by the particular person for property or a service that is given as a prize or winnings in the game or in satisfaction of the bet,

    C 

    is the total of

    • [...]

    • (ii) all amounts of money that are distributed in the year to the particular person by a trust in respect of a right of the particular person as a beneficiary (within the meaning of paragraph 108(1)(b) of the Income Tax Act) under the trust otherwise than as a distribution of capital,

    • (iii) all amounts that become due, or are paid without becoming due, in the year to the particular person in respect of a debt security issued by the particular person to, or a loan from,

      • (A) another person with whom the particular person was not dealing at arm’s length at the time the loan was made or the security was issued, as the case may be, or

      [...]

    D 

    is the total of

    • [...]

    • (ii) all amounts paid in the year by the particular person as repayments of amounts that are included in the total for B or C for the year or would be so included if the amounts had been received by the particular person in the year, and

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• 4 (1) For the purpose of determining a rebate payable to a particular person under section 259 of the Act, a prescribed property or service is

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  • (e) excisable goods that are acquired by the particular person for the purpose of making a supply of the excisable goods for consideration that is not included as part of the consideration for a meal supplied together with the excisable goods, except where tax is payable in respect of the supply by the particular person of the excisable goods;

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  • (g) property or a service that is acquired, imported or brought into a participating province by the particular person exclusively for the personal consumption, use or enjoyment (in this paragraph referred to as the “benefit”) of a particular individual who was, is or agrees to become an officer, employee or member of the particular person, or of another individual related to the particular individual, except if

    • (i) the particular person supplies the property or service to the particular individual or the other individual for consideration that becomes due in the year in which the property or service was acquired or imported, or brought into the participating province, as the case may be, by the particular person and that is equal to the fair market value of the property or service at the time the consideration becomes due and tax is payable in respect of the supply, or

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  • (i) property or a service that is deemed under section 273 of the Act to be acquired, imported or brought into a participating province by the particular person acting as the operator (within the meaning of that section) of a joint venture in respect of which an election under that section is in effect, if any of the co-venturers (within the meaning of that section) of the joint venture would not be entitled to claim a rebate under section 259 of the Act in respect of the property or service if it were otherwise acquired, imported or brought in by the co-venturer for the same purpose as that for which it is acquired, imported or brought in by the particular person on behalf of the co-venturer and if tax were payable by the co-venturer in respect of that property or service; and

• (2) Paragraph (1)(a) applies, with such modifications as the circumstances require, in respect of property or a service for consumption, use or supply in the course of making a supply of land included in section 7 of Part I of Schedule V to the Act as if the land were a residential complex.

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2 In these Regulations,

government funding

government funding  of a particular person means

• (a) an amount of money (including a forgivable loan but not including any other loan or a refund, rebate or remission of, or credit in respect of, taxes, duties or fees imposed under any statute) that is readily ascertainable and is paid or payable to the particular person by a grantor

  • (i) for the purpose of financially assisting the particular person in carrying out the purposes of the particular person and not as consideration for supplies made by the particular person, or

  • (ii) as consideration for making property or services available for consumption or use by other persons (other than the grantor, individuals who are officers, employees, shareholders or members of the grantor, or persons related to the grantor or to such individuals), where supplies of the property or services made by the particular person to such other persons are exempt supplies, and

• (b) an amount of money paid or payable to the particular person by an organization (in this paragraph referred to as the “intermediary”) that received the amount from a grantor or by another organization that received the amount from an intermediary, where

  • (i) in the case of an amount that, after 1990, becomes payable or is paid to the particular person, the intermediary or the other organization, as the case may be, provides to the particular person, at the time the amount is paid to the particular person, a certificate in a form prescribed by the Minister certifying that the amount is government funding, and

  • (ii) the amount would be government funding of the particular person because of paragraph (a) if the amount were paid by the grantor directly to the particular person for the same purpose as it was paid to the particular person by the intermediary or the other organization, as the case may be, and if the reference to “grantor” in subparagraph (a)(ii) included a reference to that intermediary or other organization, as the case may be; (montant de financement public)

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Marginal note:Prescribed classes — subsection 259(3)

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• (2) For the purpose of determining an amount of a rebate under subsection 259(3) of the Act in respect of a claim period of a person referred to in subsection (1), the amount under paragraph 259(3)(b) of the Act is equal to the total of all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of property or a service (other than property or a service prescribed by section 4) for the claim period for each participating province in which the person is resident — by the formula

  A × B × C

  where

  C 

  is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the participating province.

• Marginal note:Selected public service bodies

  (3) If a person brings tangible personal property into a participating province on or after a day that is the later of July 1, 2010 and the day on which this section is first published in the Canada Gazette, subsection 259(7) of the Act is adapted as follows:

  [...]

• Marginal note:Selected public service bodies

  (4) If a person brings tangible personal property into a participating province on or after a day that is the later of July 1, 2010 and the day on which this section is first published in the Canada Gazette, subsection 259(8) of the Act is adapted as follows:

  • (8) If a person acquires, imports or brings into a participating province property or a service primarily for consumption, use or supply in the course of activities engaged in by the person acting in the capacity of a selected public service body described in any of paragraphs (a) to (g) of the definition selected public service body in subsection (1), the amount of any rebate under this section to the person in respect of the non-creditable tax charged in respect of the property or service for a claim period shall be determined as if the person were not a selected public service body described in any other of those paragraphs.

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• Marginal note:Selected public service bodies

  (6) If a person acquires, imports or brings into a participating province property or a service primarily for consumption, use or supply in the course of activities engaged in by the person acting in the capacity of a selected public service body described in any of paragraphs (a) to (g) of the definition selected public service body in subsection 259(1) of the Act, the amount determined under subsection (2) in relation to a provincial qualifying amount in respect of the property or service for a claim period shall be determined as if the person were not a selected public service body described in any other of those paragraphs.

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