Sales Tax and Excise Tax Amendments Act, 2001 (S.C. 2001, c. 15)
Full Document:
Assented to 2001-06-14
11. (1) The Act is amended by adding the following after section 236.1:
Marginal note:Adjustment if invalid use of export certificate
236.2 (1) If a registrant has received a supply of property (other than a supply that is included in any provision of Schedule VI other than section 1.1 of Part V of that Schedule) from a supplier to whom the registrant has provided an export certificate (within the meaning of section 221.1) for the purpose of that supply and an authorization of the registrant to use the certificate was not in effect at the time the supply was made or the registrant does not export the property in the circumstances described in paragraphs 1(b) to (d) of that Part, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the earliest day on which tax in respect of the supply became payable or would have become payable if the supply were not a zero-rated supply, add an amount equal to interest, at the rate prescribed for the purposes of paragraph 280(1)(b) plus 4% per year compounded daily, on the total amount of tax in respect of the supply that was payable or would have been payable if the supply were not a zero-rated supply, computed for the period beginning on that earliest day and ending on the day on or before which the return under section 238 for that reporting period is required to be filed.
Marginal note:Adjustment if deemed revocation of export certificate
(2) If a registrant’s authorization to use an export certificate (within the meaning of section 221.1) is deemed to have been revoked under subsection 221.1(6) effective immediately after the last day of a fiscal year of the registrant, the registrant shall, in determining the net tax for the first reporting period of the registrant following that year, add the amount determined by the formula
A x B/12
where
- A
- is the total of
(a) the product obtained when the rate set out in subsection 165(1) is multiplied by the total of all amounts each of which is consideration paid or payable by the registrant for a supply made in a non-participating province of an item of inventory acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, and
(b) the product obtained when the total of the rates set out in subsections 165(1) and (2) is multiplied by the total of all amounts each of which is consideration paid or payable by the registrant for a supply made in a participating province of an item of inventory acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, and
- B
- is the total of 4% and the rate of interest prescribed for the purposes of paragraph 280(1)(b) (expressed as a percentage per year) that is in effect on the last day of that first reporting period following the year.
Marginal note:Adjustment if invalid use of export distribution centre certificate
236.3 (1) If a registrant has received a supply of property (other than a supply that is included in any provision of Schedule VI other than section 1.2 of Part V of that Schedule) from a supplier to whom the registrant has provided an export distribution centre certificate (within the meaning of section 273.1) for the purpose of that supply and an authorization of the registrant to use the certificate was not in effect at the time the supply was made or the property was not acquired by the registrant for use or supply as domestic inventory or as added property (as those expressions are defined in subsection 273.1(1)) in the course of commercial activities of the registrant, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the earliest day on which tax in respect of the supply became payable or would have become payable if the supply were not a zero-rated supply, add an amount equal to interest, at the rate prescribed for the purposes of paragraph 280(1)(b) plus 4% per year compounded daily, on the total amount of tax in respect of the supply that was payable or that would have been payable in respect of the supply if the supply were not a zero-rated supply, computed for the period beginning on that earliest day and ending on the day on or before which the return under section 238 for that reporting period is required to be filed.
Marginal note:Adjustment if export distribution centre conditions not met
(2) If an authorization granted to a registrant under subsection 273.1(7) is in effect at any time in a fiscal year of the registrant and the export revenue percentage of the registrant (as defined in subsection 273.1(1)) for that year is less than 90% or the circumstances described in paragraph 273.1(11)(a) or (b) exist with respect to the year, the registrant shall, in determining the net tax for the first reporting period of the registrant following the year, add the amount determined by the formula
A x B/12
where
- A
(a) the product obtained when the rate set out in subsection 165(1) is multiplied by the total of all amounts each of which is consideration paid or payable by the registrant for a supply made in a non-participating province of property acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.2 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period,
(b) the product obtained when the total of the rates set out in subsections 165(1) and (2) is multiplied by the total of all amounts each of which is consideration paid or payable by the registrant for a supply made in a participating province of property acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.2 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, and
(c) the product obtained when the rate set out in subsection 165(1) is multiplied by the total of all amounts each of which is the value that is or would be, but for subsection 215(2), deemed under subsection 215(1) to be the value, for the purposes of Division III, of a good that was imported by the registrant in the year and in respect of which, by reason only of section 11 of Schedule VII, tax under that Division did not apply, and
- B
- is the total of 4% and the rate of interest prescribed for the purposes of paragraph 280(1)(b) (expressed as a percentage per year) that is in effect on the last day of that first reporting period following the year.
(2) Subsection (1) is deemed to have come into force on January 1, 2001 and applies to supplies made after 2000.
Marginal note:1990, c. 45, s. 12(1)
12. (1) The definition “single unit residential complex” in subsection 254(1) of the Act is replaced by the following:
“single unit residential complex”
« immeuble d’habitation à logement unique »
“single unit residential complex” includes
(a) a multiple unit residential complex that does not contain more than two residential units, and
(b) any other multiple unit residential complex if it is described by paragraph (c) of the definition “residential complex” in subsection 123(1) and contains one or more residential units that are for supply as rooms in a hotel, motel, inn, boarding house, lodging house or similar premises and that would be excluded from being part of the residential complex if the complex were a residential complex not described by that paragraph.
(2) Subsection (1) is deemed to have come into force on June 1, 1997 and applies for the purpose of determining any rebate of a person under section 254 of the Act in respect of a residential complex ownership of which is transferred to the person after May 1997.
Marginal note:1993, c. 27, s. 110(1)
13. (1) The definition “single unit residential complex” in subsection 254.1(1) of the Act is replaced by the following:
“single unit residential complex”
« immeuble d’habitation à logement unique »
“single unit residential complex” includes
(a) a multiple unit residential complex that does not contain more than two residential units, and
(b) any other multiple unit residential complex if it is described by paragraph (c) of the definition “residential complex” in subsection 123(1) and contains one or more residential units that are for supply as rooms in a hotel, motel, inn, boarding house, lodging house or similar premises and that would be excluded from being part of the residential complex if the complex were a residential complex not described by that paragraph.
(2) Subsection (1) is deemed to have come into force on June 1, 1997 and applies for the purpose of determining any rebate of a person under section 254.1 of the Act in respect of a residential complex possession of which is given to the person after May 1997.
Marginal note:1993, c. 27, s. 112(1)
14. (1) The definition “single unit residential complex” in subsection 256(1) of the Act is replaced by the following:
“single unit residential complex”
« immeuble d’habitation à logement unique »
“single unit residential complex” includes
(a) a multiple unit residential complex that does not contain more than two residential units, and
(b) any other multiple unit residential complex if it is described by paragraph (c) of the definition “residential complex” in subsection 123(1) and contains one or more residential units that are for supply as rooms in a hotel, motel, inn, boarding house, lodging house or similar premises and that would be excluded from being part of the residential complex if the complex were a residential complex not described by that paragraph.
(2) Subsection (1) is deemed to have come into force on June 1, 1997 and applies for the purpose of determining any rebate of a person under section 256 of the Act in respect of a residential complex that the person has constructed or substantially renovated, or has engaged another person to construct or substantially renovate, if the construction or substantial renovation is not substantially completed until after May 1997.
15. If
(a) a person would be entitled to claim a rebate under section 254, 254.1 or 256 of the Act in respect of a single unit residential complex described in paragraph (b) of the definition of that expression in that section, as enacted by subsection 12(1), 13(1) or 14(1), as the case may be, if there were no limitation on the period for filing an application for the rebate or on the number of applications that the person may make with respect to that matter, and
(b) the day on or before which the person would, but for this section, be required to file an application for the rebate is before March 31, 2003,
despite subsections 254(3), 254.1(3) and 256(3) of the Act, the person has until March 31, 2003 to file an application for the rebate with the Minister of National Revenue. That application may, despite subsection 262(2) of the Act, be the person’s second application for the rebate if, before March 2001, the person had made an application for the rebate and it has been assessed.
- Date modified: