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 7GOODS AND SERVICES TAX AND HARMONIZED SALES TAX REBATE FOR MUNICIPALITIES
R.S., c. E15Excise Tax Act
Marginal note:2000, c. 30, s. 43(1)
37. (1) Subsections 209(1) and (2) of the Act are replaced by the following:
Marginal note:Real property of certain public service bodies
209. (1) If a registrant (other than a financial institution or a government) is a public service body, section 141.2 and subsections 199(2) to (4) and 200(2) and (3) apply, with any modifications that the circumstances require, to real property acquired by the registrant for use as capital property of the registrant or, in the case of subsection 199(4), to improvements to real property that is capital property of the registrant, as if the real property were personal property.
Marginal note:Real property of certain Crown agents
(2) If a registrant (other than a financial institution) is a specified Crown agent, section 141.2 and subsections 199(2) to (4) and 200(2) and (4) apply, with any modifications that the circumstances require, to real property acquired by the registrant for use as capital property of the registrant or, in the case of subsection 199(4), to improvements to real property that is capital property of the registrant, as if the real property were personal property.
Marginal note:2000, c. 30, s. 43(1)
(2) The portion of subsection 209(3) of the Act before paragraph (a) is replaced by the following:
Marginal note:Exception
(3) Despite subsections (1) and (2), section 141.2 and subsections 200(3) and (4) do not apply to
(3) Subsections (1) and (2) are deemed to have come into force on February 1, 2004.
38. (1) The Act is amended by adding the following after section 257:
Marginal note:Sale of personal property by nonregistrant municipality
257.1 (1) If a person that is a municipality, or is designated to be a municipality for the purposes of section 259, and that is not a registrant makes, at any time, a taxable supply by way of sale of personal property that is capital property of the person (other than property of a person designated to be a municipality for the purposes of section 259 that is not designated municipal property of the person), the Minister shall, subject to subsection (2), pay a rebate to the person equal to the lesser of
(a) the basic tax content of the property at that time, and
(b) the tax that is or would, in the absence of section 167, be payable in respect of the taxable supply.
Marginal note:Application for rebate
(2) A rebate shall not be paid to a person under subsection (1) unless the person files an application for the rebate within two years after the day on which the consideration for the supply became due or was paid without having become due.
Marginal note:Redemption of personal property
(3) If, for the purposes of satisfying in whole or in part a debt or obligation owing by a person (in this subsection referred to as the “debtor”), a creditor exercises a right under an Act of Parliament or the legislature of a province or an agreement relating to a debt security to cause the supply of personal property and the debtor has a right to redeem the property under the Act or the agreement, the following rules apply:
(a) the debtor is not entitled to claim a rebate under subsection (1) with respect to the property unless the time limit for redeeming the property has expired and the debtor has not redeemed the property; and
(b) if the debtor is entitled to claim the rebate, consideration for the supply is deemed, for the purposes of subsection (2), to have become due on the day on which the time limit for redeeming the property expires.
(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.
39. (1) Subsection 259(1) of the Act is amended by adding the following in alphabetical order:
“specified percentage”
« pourcentage établi »
“specified percentage” means
(a) in the case of a charity or a qualifying nonprofit organization that is not a selected public service body, 50%,
(b) in the case of a hospital authority, 83%,
(c) in the case of a school authority, 68%,
(d) in the case of a university or public college, 67%, and
(e) in the case of a municipality, 100%;
“specified provincial percentage”
« pourcentage provincial établi »
“specified provincial percentage” means
(a) in the case of a charity, or a qualifying nonprofit organization, that is not a selected public service body and that is resident in a participating province, 50%,
(b) in the case of a hospital authority resident in Nova Scotia, 83%,
(c) in the case of a school authority resident in Nova Scotia, 68%,
(d) in the case of a university or public college resident in Nova Scotia, 67%,
(e) in the case of a municipality resident in Nova Scotia or New Brunswick, 57.14%, and
(f) in any other case, 0%.
Marginal note:1997, c. 10, s. 227(2) and (3)
(2) Subsections 259(3) and (4) of the Act are replaced by the following:
Marginal note:Rebate for persons other than designated municipalities
(3) If a person (other than a listed financial institution, a registrant prescribed for the purposes of subsection 188(5) and a person designated to be a municipality for the purposes of this section) is, on the last day of a claim period of the person or of the person's fiscal year that includes that claim period, a selected public service body, charity or qualifying nonprofit organization, the Minister shall, subject to subsections (4.1) to (4.21) and (5), pay a rebate to the person equal to the total of
(a) the amount equal to the specified percentage of the noncreditable tax charged in respect of property or a service (other than a prescribed property or service) for the claim period, and
(b) the amount equal to the specified provincial percentage of the noncreditable tax charged in respect of property or a service (other than a prescribed property or service) for the claim period.
Marginal note:Rebate for designated municipalities
(4) If a person is, on the last day of a claim period of the person or of the person's fiscal year that includes that claim period, designated to be a municipality for the purposes of this section in respect of activities (in this subsection referred to as the “designated activities”) specified in the designation, the Minister shall, subject to subsections (4.01) to (5), pay a rebate to the person in respect of property or a service (other than a prescribed property or service) equal to the total of
(a) all amounts, each of which is an amount determined by the formula
A x B x C
where
- A
- is the specified percentage,
- B
- is an amount that is included in the total tax charged in respect of the property or service for the claim period and is an amount of tax in respect of a supply made to, or the importation or bringing into a participating province of the property by, the person at any time, an amount deemed to have been paid or collected at any time by the person, 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 any time, or 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 any time, to be a registrant, and
- C
- is the extent (expressed as a percentage) to which the person intended, at that time, to consume, use or supply the property or service in the course of the designated activities, and
(b) all amounts, each of which is an amount determined by the formula
D x E x F
where
- D
- is the specified provincial percentage,
- E
- is an amount that is included in the total tax charged in respect of the property or service for the claim period and is an amount of tax in respect of a supply made to, or the importation or bringing into a participating province of the property by, the person at any time, an amount deemed to have been paid or collected at any time by the person, 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 any time, or 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 any time, to be a registrant, and
- F
- is the extent (expressed as a percentage) to which the person intended, at that time, to consume, use or supply the property or service in the course of the designated activities.
Marginal note:2000, c. 30, s. 76(2)
(3) The portion of subsection 259(4.01) of the Act before paragraph (a) is replaced by the following:
Marginal note:Restriction
(4.01) An amount shall not be included in determining the value of B or E in subsection (4) in respect of a claim period of a person to the extent that
Marginal note:1997, c. 10, ss. 69(7) and 227(4) and (5); 2000, c. 30, ss. 76(3) to (5)
(4) Subsections 259(4.1) to (4.21) of the Act are replaced by the following:
Marginal note:Apportionment of rebate
(4.1) Subject to subsections (4.2) and (4.21), if a person is a charity, a public institution or a qualifying nonprofit organization, and is a selected public service body, the rebate, if any, payable to the person under subsection (3) or (4) in respect of property or a service for a claim period is equal to the total of
(a) 50% of the noncreditable tax charged in respect of the property or service for the claim period, and
(b) the total of all amounts, each of which is an amount that would be determined under paragraph (4)(a) or (b) in respect of the property or service for the claim period if subsection (4) applied to the person and if
(i) the reference in subsection (4) to “specified percentage” were read as a reference to “the specified percentage applicable to a selected public service body described in whichever of paragraphs (a) to (e) of the definition of that expression in subsection (1) applies to the person minus 50%”,
(ii) the reference in subsection (4) to “specified provincial percentage” were read as a reference to the greater of “the specified provincial percentage applicable to a selected public service body described in whichever of paragraphs (a) to (e) of the definition of that expression in subsection (1) applies to the person minus 50%” and “0%”, and
(iii) in the case of a person who is not designated to be a municipality for the purposes of this section, the reference in the description of — or F in subsection (4) to “designated activities” were read as a reference to
(A) in the case of a person determined to be a municipality under paragraph (b) of the definition “municipality” in subsection 123(1), activities engaged in by the person in the course of fulfilling the person's responsibilities as a local authority, and
(B) in any other case, activities engaged in by the person in the course of operating a recognized degreegranting institution, a college affiliated with, or research body of, such an institution, a public hospital, an elementary or secondary school or a postsecondary college or technical institute, as the case may be.
Marginal note:Exclusions
(4.2) In determining an amount under paragraphs (3)(a) and (4)(a) for the purpose of determining a rebate payable to a person, no tax under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 payable or deemed to have been paid or collected by the person shall be included
(a) in any amount referred to in any of subparagraphs (a)(i) to (iv) of the definition “noncreditable tax charged” in subsection (1);
(b) in any amount referred to in subparagraph (a)(v) of that definition that is required under subsection 129(7) to be added in determining the person's net tax; or
(c) in determining any amount referred to in subparagraph (a)(v) of that definition that is an input tax credit required under paragraph 171(4)(b) to be added in determining the person's net tax.
Marginal note:Exclusions
(4.21) In determining an amount under paragraphs (3)(b) and (4)(b) for the purpose of determining a rebate payable to a person, no tax under any of subsection 165(1) and sections 212 and 218 payable or deemed to have been paid or collected by the person shall be included
(a) in any amount referred to in any of subparagraphs (a)(i) to (iv) of the definition “noncreditable tax charged” in subsection (1);
(b) in any amount referred to in subparagraph (a)(v) of that definition that is required under subsection 129(7) to be added in determining the person's net tax; or
(c) in determining any amount referred to in subparagraph (a)(v) of that definition that is an input tax credit required under paragraph 171(4)(b) to be added in determining the person's net tax.
Marginal note:2000, c. 30, s. 76(6)
(5) Paragraph 259(4.3)(e) of the Act is replaced by the following:
(e) the total of all amounts each of which is an amount that would be determined under paragraph (4)(a) or (b) in respect of the property or service for the claim period if
(i) the specified percentage for the purposes of subsection (4) were 0%,
(ii) the specified provincial percentage for the purposes of that subsection were 50%, and
(iii) the reference to designated activities in the description of F in that subsection were a reference to the person's other activities.
Marginal note:1993, c. 27, s. 115(3)
(6) Subsection 259(9) of the Act is repealed.
(7) Section 259 of the Act is amended by adding the following after subsection (12):
Marginal note:Disclosure of municipal rebate information
(13) If the amount of a rebate under subsection (3) or (4) that is approved by the Minister for payment to a municipality is increased as a result of the application to the municipality of the specified percentage instead of 57.14% in respect of any period, the Minister may, despite section 295, release for publication by the Government of Canada information as to the amount of the increase and any information necessary to identify the municipality. On publication, the information is not confidential information for the purposes of section 295.
(8) Subsections (1) to (5) apply for the purposes of determining a rebate under section 259 of the Act of a person for claim periods ending on or after February 1, 2004, except that the rebate shall be determined as if those subsections did not come into force for the purposes of determining a rebate of a person for the claim period of the person that includes that day in respect of
(a) an amount of tax that became payable by the person before that day;
(b) an amount that is deemed to have been paid or collected by the person before that day; or
(c) an amount that is required to be added in determining the person's net tax
(i) as a result of a branch or division of the person becoming a small supplier division before that day, or
(ii) as a result of the person ceasing before that day to be a registrant.
(9) Subsection (6) is deemed to have come into force on February 1, 2004.
40. (1) Section 1 of Part V.1 of Schedule V to the Act is amended by striking out the word “or” at the end of paragraph (l), by adding the word “or” at the end of paragraph (m) and by adding the following after paragraph (m):
(n) designated municipal property, if the charity is a person designated to be a municipality for the purposes of section 259 of the Act.
(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. 102(1)
41. (1) The portion of section 5.1 of Part V.1 of Schedule V to the Act before paragraph (a) is replaced by the following:
5.1 A supply by way of sale made by a charity to a recipient of tangible personal property (other than capital property of the charity or, if the charity is a person designated to be a municipality for the purposes of section 259 of the Act, designated municipal property), or of a service purchased by the charity for the purpose of making a supply by way of sale of the service, if the total charge for the supply is the usual charge by the charity for such supplies to such recipients and
(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.
42. (1) Section 2 of Part VI of Schedule V to the Act is amended by striking out the word “or” at the end of paragraph (l) and by adding the following after paragraph (m):
(n) property or a service made by a municipality; or
(o) designated municipal property, if the public institution is a person designated to be a municipality for the purposes of section 259 of the Act.
(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.
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