An Act to implement certain provisions of the budget tabled in Parliament on March 23, 2004 (S.C. 2004, c. 22)
Full Document:
Assented to 2004-05-14
PART 4AMENDMENTS TO THE CANADA PENSION PLAN
R.S., c. C8Canada Pension Plan
22. Subsection 89(1) of the Act is amended by adding the following after paragraph (b):
(b.1) prescribing the time and manner for making requests for reinstatement of a disability pension under section 70.1, and the information and evidence to be furnished in connection with requests;
(b.2) prescribing the information and evidence to be furnished in connection with the reinstatement of disabled contributor's child benefits under section 70.1;
Transitional
Marginal note:Application
23. Section 70.1 of the Canada Pension Plan, as enacted by section 20 of this Act, does not apply in respect of persons who, before the coming into force of section 20 of this Act, have ceased to receive a disability pension because they have returned to work.
Coming into Force
Marginal note:Subsection 114(2) of the Canada Pension Plan does not apply
24. (1) Subsection 114(2) of the Canada Pension Plan does not apply in respect of the amendments to that Act contained in this Part.
Marginal note:Order
(2) This Part comes into force, in accord¡ance with subsection 114(4) of the Canada Pension Plan, on a day to be fixed by order of the Governor in Council.
PART 51996, c. 23AMENDMENTS TO THE EMPLOYMENT INSURANCE ACT
25. The Employment Insurance Act is amended by adding the following after section 66.2:
Marginal note:Premium rate for 2005
66.3 Notwithstanding section 66, the premium rate for the year 2005 is the rate set for the year by the Governor in Council on the recommendation of the Minister and the Minister of Finance.
Marginal note:2003, c. 15, s. 21
26. Section 67 of the Act is replaced by the following:
Marginal note:Employee's premium
67. Subject to section 70, a person employed in insurable employment shall pay, by deduction as provided in subsection 82(1), a premium equal to their insurable earnings multiplied by the premium rate set under section 66, 66.1, 66.2 or 66.3, as the case may be.
27. The Act is amended by adding the following after section 82:
Marginal note:Succession of employers
82.1 If, in a year after 2003, one employer immediately succeeds another as the employer of an employee as a result of the formation or dissolution of a corporation or the acquisition — with the agreement of the former employer or by operation of law — of all or part of an undertaking or business of the former employer, the successor employer may, for the application of section 82, take into account the amounts deducted, remitted or paid under this Act by the former employer in respect of the year in relation to the employment of the employee as if they had been deducted, remitted or paid by the successor employer. If the employer takes those amounts into account with respect to the employer's premium, the employer shall also take them into account with respect to the employee's premium.
PART 61993, c. 14; 2001, c. 22, s. 2AMENDMENT TO THE FARM CREDIT CANADA ACT
Marginal note:2003, c. 15, s. 42
28. Subsection 11(1) of the Farm Credit Canada Act is replaced by the following:
Marginal note:Capital payments
11. (1) At the request of the Corporation, the Minister of Finance may, with the approval of the Governor in Council, pay to the Corporation, out of the Consolidated Revenue Fund, amounts not exceeding in the aggregate one billion, two hundred and fifty million dollars, or such greater aggregate amount as may be authorized from time to time under an appropriation Act.
PART 7GOODS AND SERVICES TAX AND HARMONIZED SALES TAX REBATE FOR MUNICIPALITIES
R.S., c. E15Excise Tax Act
29. (1) Subsection 123(1) of the Excise Tax Act is amended by adding the following in alphabetical order:
“designated municipal property”
« bien municipal désigné »
“designated municipal property” means property
(a) that is property of a person who is at any time designated to be a municipality for the purposes of section 259,
(b) that the person intended at that time to consume, use or supply in the course of activities specified in the designation and otherwise than exclusively in the course of activities that are not activities specified in the designation, and
(c) in respect of which, or in respect of an improvement to which, an amount included in “the total tax charged in respect of the property or service” under paragraph (a) of the definition “noncreditable tax charged” in subsection 259(1) is
(i) an amount of tax in respect of a supply made to, or the importation or bringing into a participating province of the property or an improvement to it by, the person at that time,
(ii) an amount deemed to have been paid or collected at that time by the person,
(iii) an amount required to be added under subsection 129(7) in determining the person's net tax as a result of a branch or division of the person becoming a small supplier division at that time, or
(iv) an amount required to be added under paragraph 171(4)(b) in determining the person's net tax as a result of the person ceasing at that time to be a registrant;
(2) Subsection (1) is deemed to have come into force on February 1, 2004.
30. (1) The Act is amended by adding the following after section 141. 1:
Marginal note:Sale of personal property of a municipality
141.2 (1) Despite section 141.1, for the purposes of this Part, a supply (other than an exempt supply) made by way of sale of personal property of a municipality is deemed to have been made in the course of its commercial activities.
Marginal note:Sale of personal property of a designated municipality
(2) Despite section 141.1, for the purposes of this Part, a supply (other than an exempt supply) made by way of sale of personal property of a person designated to be a municipality for the purposes of section 259 is deemed to have been made in the course of its commercial activities if the property is designated municipal property of the person.
(2) Subsection (1) applies to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but does not apply to any supply made under an agreement in writing entered into before March 10, 2004.
Marginal note:1990, c. 45, s. 12(1)
31. (1) Section 166 of the Act is replaced by the following:
Marginal note:Supply by small supplier not a registrant
166. If a person makes a taxable supply and the consideration or a part of it for the supply becomes due, or is paid before it becomes due, at a time when the person is a small supplier who is not a registrant, that consideration or part, as the case may be, shall not be included in calculating the tax payable in respect of the supply except if the supply is
(a) a supply by way of sale of real property;
(b) a supply by way of sale of personal property by a municipality that is capital property of the municipality; or
(c) a supply by way of sale of designated municipal property of a person designated to be a municipality for the purposes of section 259 that is capital property of the person.
(2) Subsection (1) applies to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but does not apply to any supply made under an agreement in writing entered into before March 10, 2004.
32. (1) The Act is amended by adding the following after section 198:
Marginal note:Basic tax content of property of a municipality
198.1 (1) In the case of property of a municipality that is not a listed financial institution, the basic tax content of the property at any time after January 30, 2004 shall be determined by applying the following rules:
(a) in determining the value of A in paragraph (a) of the definition “basic tax content” in subsection 123(1), an amount of tax described by any of subparagraphs (i) to (v) of the description of A may be included only if the tax
(i) became payable, or would have become payable in the absence of the circumstances described in subparagraph (iii) or (iv) of that description, after January 2004 under subsection 165(1) or section 212 or 218 in respect of the property, or
(ii) was payable, or would have been payable in the absence of the circumstances described in subparagraph (iii) or (iv) of that description, under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 in respect of the property;
(b) in determining the value of B in paragraph (a) of the definition “basic tax content” in subsection 123(1), any reference in the description of B to tax referred to in a subparagraph of the description of A shall be read to include an amount of tax only if the tax is included in the determination of the value of A in accordance with paragraph (a) of this subsection;
(c) in determining the value of J in paragraph (b) of the definition “basic tax content” in subsection 123(1),
(i) paragraphs (a) and (b) of this subsection shall be applied in determining the basic tax content referred to in subparagraph (i) of the description of J, and
(ii) an amount of tax described by any of subparagraphs (iii) to (vi) of the description of J may be included only if the tax
(A) became payable, or would have become payable in the absence of the circumstances described in subparagraph (iv) or (v) of that description, after January 2004 under subsection 165(1) or section 212 or 218 in respect of the improvements to the property, or
(B) was payable, or would have been payable in the absence of the circumstances described in subparagraph (iv) or (v) of that description, under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 in respect of improvements to the property; and
(d) in determining the value of K in paragraph (b) of the definition “basic tax content” in subsection 123(1), any reference in the description of K to tax referred to in a subparagraph of the description of J shall be read to include an amount of tax only if the tax is included in the determination of the value of J in accordance with paragraph (c) of this subsection.
Marginal note:Application to designated municipality
(2) In subsection (1), “municipality” includes a person designated to be a municipality for the purposes of section 259 and, in the case of a person so designated, “property” means property that, on January 31, 2004, was property of the person and was consumed, used or supplied by the person otherwise than exclusively in the course of activities that are not activities specified in the designation.
(2) Subsection (1) is deemed to have come into force on January 31, 2004.
Marginal note:2000, c. 30, s. 42(1)
33. (1) Subsection 200(3) of the Act is replaced by the following:
Marginal note:Sale of personal property
(3) Despite paragraph 141.1(1)(a) but subject to section 141.2, for the purposes of this Part, if a registrant (other than a government) makes a supply by way of sale of personal property that is capital property of the registrant and, before the earlier of the time that ownership of the property is transferred to the recipient and the time that possession of the property is transferred to the recipient under the agreement for the supply, the registrant was last using the property otherwise than primarily in commercial activities of the registrant, the supply is deemed to have been made in the course of activities of the registrant that are not commercial activities.
Marginal note:2000, c. 30, s. 42(1)
(2) The portion of subsection 200(4) of the Act before paragraph (a) is replaced by the following:
Marginal note:Sale of personal property of a government
(4) Despite subsection 141.1(1) but subject to section 141.2, for the purposes of this Part, if a supplier that is a government makes a supply by way of sale of particular personal property that is capital property of the supplier,
(3) Subsections (1) and (2) apply to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but do not apply to any supply made under an agreement in writing entered into before March 10, 2004.
34. (1) The Act is amended by adding the following after section 200:
Marginal note:Credit on sale of personal property of a municipality
200.1 If a registrant is a municipality or a person designated to be a municipality for the purposes of section 259, subsection 193(2) applies, with any modifications that the circumstances require, to personal property (other than a passenger vehicle, an aircraft of a registrant who is an individual or a partnership and property of a person designated to be a municipality for the purposes of section 259 that is not designated municipal property of the person) acquired or imported by the registrant for use as capital property of the registrant as if the personal property were real property.
(2) Subsection (1) applies to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but does not apply to any supply made under an agreement in writing entered into before March 10, 2004.
Marginal note:1997, c. 10, s. 191(1)
35. (1) The description of B in paragraph 201(b) of the Act is replaced by the following:
- B
- is
(i) if the registrant is deemed under subsection 199(3) or 206(2) or (3) to have acquired the vehicle or a portion of it at the particular time, or the registrant is bringing the vehicle into a participating province at the particular time, and the registrant was previously entitled to claim a rebate under section 259 in respect of the vehicle or any improvement to it, the difference between 100% and the specified percentage (within the meaning of that section) that applied in determining the amount of that rebate, and
(ii) in any other case, 100%; and
(2) Subsection (1) applies for the purpose of determining an input tax credit of a registrant in respect of a passenger vehicle that the registrant acquires, imports or brings into a participating province after January 2004.
Marginal note:1997, c. 10, s. 193(1)
36. (1) The portion of subsection 203(1) of the Act before the formula is replaced by the following:
Marginal note:Sale of passenger vehicle
203. (1) If a registrant (other than a municipality), at a particular time in a reporting period of the registrant, makes a taxable supply by way of sale of a passenger vehicle (other than a vehicle that is designated municipal property of a person designated at the particular time to be a municipality for the purposes of section 259) that, immediately before the particular time, was used as capital property in commercial activities of the registrant, the registrant may, despite section 170, paragraph 199(2)(a) and subsections 199(4) and 202(1), claim an input tax credit for that period equal to the amount determined by the formula
Marginal note:1993, c. 27, s. 70(4)
(2) Subsection 203(3) of the Act is replaced by the following:
Marginal note:Sale of passenger vehicle, etc.
(3) Despite paragraph 141.1(1)(a), for the purposes of this Part, a supply shall be deemed not to be a taxable supply if
(a) an individual or a partnership (other than a municipality) who is a registrant makes, at a particular time, the supply by way of sale of a passenger vehicle or an aircraft (other than a vehicle or an aircraft that is designated municipal property of a person designated at the particular time to be a municipality for the purposes of section 259) that is capital property of the registrant; and
(b) at any time after the individual or partnership became a registrant and before the particular time, the registrant did not use the vehicle or aircraft exclusively in commercial activities of the registrant.
Marginal note:Sale of passenger vehicle by a municipality
(4) If a registrant (other than an individual or a partnership) that is a municipality or a person designated to be a municipality for the purposes of section 259, at a particular time in a reporting period of the registrant, makes a taxable supply by way of sale of a passenger vehicle (other than a vehicle of a person designated to be a municipality for the purposes of section 259 that is not designated municipal property of the person) that, immediately before the particular time, was capital property of the registrant, the registrant may, despite section 170, paragraph 199(2)(a) and subsections 199(4) and 202(1), claim an input tax credit for that period equal to the lesser of
(a) the amount determined by the formula
A x (B — C)/B
where
- A
- is the basic tax content of the vehicle at the particular time,
- B
- is the total of
(i) the tax that was payable by the registrant in respect of the last acquisition or importation of the vehicle by the registrant,
(ii) if the registrant brought the vehicle into a participating province after it was last acquired or imported by the registrant, the tax that was payable by the registrant in respect of bringing it into that province, and
(iii) the tax that was payable by the registrant in respect of improvements to the vehicle acquired, imported or brought into a participating province by the registrant after the property was last acquired or imported, and
- C
- is the total of all input tax credits that the registrant was entitled to claim in respect of any tax included in the total for B, and
(b) the tax that is or would, in the absence of section 167, be payable in respect of the taxable supply.
(3) Subsections (1) and (2) apply to any supply for which consideration becomes due after March 9, 2004 or is paid after that day without having become due, but do not apply to any supply made under an agreement in writing entered into before March 10, 2004.
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