Budget Implementation Act, 2005 (S.C. 2005, c. 30)
Full Document:
Assented to 2005-06-29
R.S., c. 2 (5th Supp.)Income Tax Application Rules
19. (1) Section 65 of the Income Tax Application Rules is repealed.
(2) Subsection (1) applies to months that end after 2004.
PART 2AMENDMENTS IN RESPECT OF THE AIR TRAVELLERS SECURITY CHARGE
2002, c. 9, s. 5Air Travellers Security Charge Act
Marginal note:2003, c. 15, s. 44(1)
20. (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 $9.35, if
Marginal note:2003, c. 15, s. 44(1)
(2) The portion of paragraph 12(1)(b) of the Act before subparagraph (i) is replaced by the following:
(b) $5.00 for each chargeable emplanement included in the service, to a maximum of $10.00, if
Marginal note:2003, c. 15, s. 44(1)
(3) The portion of paragraph 12(1)(c) of the Act before subparagraph (i) is replaced by the following:
(c) $7.94 for each chargeable emplanement included in the service, to a maximum of $15.89, if
Marginal note:2003, c. 15, s. 44(1)
(4) The portion of paragraph 12(1)(d) of the Act before subparagraph (i) is replaced by the following:
(d) $8.50 for each chargeable emplanement included in the service, to a maximum of $17.00, if
Marginal note:2003, c. 15, s. 44(1)
(5) Paragraph 12(1)(e) of the Act is replaced by the following:
(e) $17.00, if the service includes transportation to a destination outside the continental zone.
(6) The portion of paragraph 12(2)(a) of the Act before subparagraph (i) is replaced by the following:
(a) $7.94 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 $15.89, if
(7) The portion of paragraph 12(2)(b) of the Act before subparagraph (i) is replaced by the following:
(b) $8.50 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 $17.00, if
(8) Paragraph 12(2)(c) of the Act is replaced by the following:
(c) $17.00, if the service includes transportation to a destination outside the continental zone.
(9) Subsections (1) to (8) apply in respect of any air transportation service that includes a chargeable emplanement on or after March 1, 2005 and for which any consideration is paid or becomes payable on or after that day.
Coordinating Amendment
Marginal note:Bill C-33
21. (1) Subsections (2) and (3) apply if Bill C-33, introduced in the 1st session of the 38th Parliament and entitled the Budget Implementation Act, 2004, No. 2 (the “other Act”), receives royal assent.
(2) If the other Act receives royal assent on the same day as this Act, section 2 of the other Act is deemed to have come into force immediately before section 20 of this Act.
(3) If the other Act receives royal assent after this Act, then, on the day on which the other Act is assented to, subsection 2(9) of the other Act is replaced by the following:
(9) Subsections (1) to (8) apply in respect of any air transportation service that includes a chargeable emplanement on or after April 1, 2004 and for which any consideration is paid or becomes payable on or after April 1, 2004 but do not apply in respect of any air transportation service that includes a chargeable emplanement on or after March 1, 2005 and for which any consideration is paid or becomes payable on or after March 1, 2005.
PART 3AMENDMENTS IN RESPECT OF THE GOODS AND SERVICES TAX AND HARMONIZED SALES TAX
R.S., c. E-15Excise Tax Act
22. (1) The definition “selected public service body” in subsection 259(1) of the Excise Tax Act is amended by striking out the word “or” at the end of paragraph (d) and by adding the following after paragraph (e):
(f) a facility operator, or
(g) an external supplier;
Marginal note:2004, c. 22, s. 39(1)
(2) Paragraph (b) of the definition “specified percentage” in subsection 259(1) of the Act is replaced by the following:
(b) in the case of a hospital authority, a facility operator or an external supplier, 83%,
(3) Subsection 259(1) of the Act is amended by adding the following in alphabetical order:
“ancillary supply”
« fourniture connexe »
“ancillary supply” means
(a) an exempt supply of a service of organizing or coordinating the making of facility supplies or home medical supplies in respect of which supply an amount, other than a nominal amount, is paid or payable to the supplier as medical funding, or
(b) the portion of an exempt supply (other than a facility supply, a home medical supply or a prescribed supply) of property or a service (other than a financial service) that represents the extent to which the property or service is, or is reasonably expected to be, consumed or used for making a facility supply and in respect of which portion an amount, other than a nominal amount, is paid or payable to the supplier as medical funding;
“external supplier”
« fournisseur externe »
“external supplier” means a charity, a public institution or a qualifying non-profit organization (other than a hospital authority or a facility operator), that makes ancillary supplies, facility supplies or home medical supplies;
“facility operator”
« exploitant d’établissement »
“facility operator” means a charity, a public institution or a qualifying non-profit organization (other than a hospital authority), that operates a qualifying facility;
“facility supply”
« fourniture en établissement »
“facility supply” means an exempt supply (other than a prescribed supply) of property or a service in respect of which
(a) the property is made available, or the service is rendered, to an individual at a public hospital or qualifying facility as part of a medically necessary process of health care for the individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative health care, which process
(i) is undertaken in whole or in part at the public hospital or qualifying facility,
(ii) is reasonably expected to take place under the active direction or supervision, or with the active involvement, of
(A) a physician acting in the course of the practise of medicine,
(B) a midwife acting in the course of the practise of midwifery,
(C) if a physician is not readily accessible in the geographic area in which the process takes place, a nurse practitioner acting in the course of the practise of a nurse practitioner, or
(D) a prescribed person acting in prescribed circumstances, and
(iii) in the case of chronic care that requires the individual to stay overnight at the public hospital or qualifying facility, requires or is reasonably expected to require that
(A) a registered nurse be at the public hospital or qualifying facility at all times when the individual is at the public hospital or qualifying facility,
(B) a physician or, if a physician is not readily accessible in the geographic area in which the process takes place, a nurse practitioner, be at, or be on-call to attend at, the public hospital or qualifying facility at all times when the individual is at the public hospital or qualifying facility,
(C) throughout the process, the individual be subject to medical management and receive a range of therapeutic health care services that includes registered nursing care, and
(D) it not be the case that all or substantially all of each calendar day or part during which the individual stays at the public hospital or qualifying facility is time during which the individual does not receive therapeutic health care services referred to in clause (C), and
(b) if the supplier does not operate the public hospital or qualifying facility, an amount, other than a nominal amount, is paid or payable as medical funding to the supplier;
“home medical supply”
« fourniture de biens ou services médicaux à domicile »
“home medical supply” means an exempt supply (other than a facility supply or a prescribed supply) of property or a service
(a) that is made
(i) as part of a medically necessary process of health care for an individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative health care, and
(ii) after a physician acting in the course of the practise of medicine, or a prescribed person acting in prescribed circumstances, has identified or confirmed that it is appropriate for the process to take place at the individual’s place of residence or lodging (other than a public hospital or a qualifying facility),
(b) in respect of which the property is made available, or the service is rendered, to the individual at the individual’s place of residence or lodging (other than a public hospital or a qualifying facility), on the authorization of a person who is responsible for coordinating the process and under circumstances in which it is reasonable to expect that the person will carry out that responsibility in consultation with, or with ongoing reference to instructions for the process given by, a physician acting in the course of the practise of medicine, or a prescribed person acting in prescribed circumstances,
(c) all or substantially all of which is of property or a service other than meals, accommodation, domestic services of an ordinary household nature, assistance with the activities of daily living and social, recreational and other related services to meet the psycho-social needs of the individual, and
(d) in respect of which an amount, other than a nominal amount, is paid or payable as medical funding to the supplier;
“medical funding”
« subvention médicale »
“medical funding” of a supplier in respect of a supply means an amount of money (including a forgivable loan but not including any other loan or a refund, remission or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) that is paid or payable to the supplier in respect of health care services for the purpose of financially assisting the supplier in making the supply or as consideration for the supply by
(a) a government, or
(b) a person that is a charity, a public institution or a qualifying non-profit organization
(i) one of the purposes of which is organizing or coordinating the delivery of health care services to the public, and
(ii) in respect of which it is reasonable to expect that a government will be the primary source of funding for the activities of the person that are in respect of the delivery of health care services to the public during the fiscal year of the person in which the supply is made;
“midwife”
« sage-femme »
“midwife” means a person who is entitled under the laws of a province to practise the profession of midwifery;
“physician”
« médecin »
“physician” means a person who is entitled under the laws of a province to practise the profession of medicine;
“qualifying funding”
« subvention admissible »
“qualifying funding” of the operator of a facility for all or part of a fiscal year of the operator means a readily ascertainable amount of money (including a forgivable loan but not including any other loan or a refund, remission or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) that is paid or payable to the operator in respect of the delivery of health care services to the public for the purpose of financially assisting in operating the facility during the fiscal year or part, as consideration for an exempt supply of making the facility available for use in making facility supplies at the facility during the fiscal year or part or as consideration for facility supplies of property that are made available, or services that are rendered, at the facility during the fiscal year or part and is paid or payable by
(a) a government, or
(b) a person that is a charity, a public institution or a qualifying non-profit organization
(i) one of the purposes of which is organizing or coordinating the delivery of health care services to the public, and
(ii) in respect of which it is reasonable to expect that a government will be the primary source of funding for the activities of the person that are in respect of the delivery of health care services to the public during the fiscal year of the person in which the supply is made;
“specified activities”
« activités déterminées »
“specified activities” means activities referred to in any of clauses (4.1)(b)(iii)(B) to (D), other than the operation of a public hospital;
“specified supply”
« fourniture déterminée »
“specified supply” of property of a person means
(a) a taxable supply made to the person at any time after December 31, 2004, of property that was owned on that day by the person or by another person who is related to the person at that time, or
(b) a taxable supply that the person is deemed under subsection 211(4) to have made after December 30, 2004, of property that was, on that day, owned by the person, or by another person who last supplied the property to the person by way of sale and who was related to the person on the day the supply by way of sale was made.
(4) Section 259 of the Act is amended by adding the following after subsection (2):
Marginal note:Qualifying facilities
(2.1) For the purposes of this section, a facility, or part of a facility, other than a public hospital, is a qualifying facility for a fiscal year, or any part of a fiscal year, of the operator of the facility or part, if
(a) supplies of services that are ordinarily rendered during that fiscal year or part to the public at the facility or part would be facility supplies if the references in the definition “facility supply” in subsection (1) to “public hospital or qualifying facility” were references to the facility or part;
(b) an amount, other than a nominal amount, is paid or payable to the operator as qualifying funding in respect of the facility or part for the fiscal year or part; and
(c) an accreditation, licence or other authorization that is recognized or provided for under a law of Canada or a province in respect of facilities for the provision of health care services applies to the facility or part during that fiscal year or part.
Marginal note:2004, c. 22, s. 39(4)
(5) Subparagraphs 259(4.1)(b)(i) to (iii) of the Act are replaced by the following:
(i) the reference in subsection (4) to “specified percentage” were read as a reference to “specified percentage applicable to a selected public service body described in whichever of paragraphs (a) to (g) 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 “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%”,
(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 C 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,
(B) in the case of a person acting in the person’s capacity as a hospital authority, activities engaged in by the person in the course of operating a public hospital, operating a qualifying facility for use in making facility supplies, or of making facility supplies, ancillary supplies or home medical supplies,
(C) in the case of a person acting in the person’s capacity as a facility operator, 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,
(D) in the case of a person acting in the person’s capacity as an external supplier, activities engaged in by the person in the course of making ancillary supplies, facility supplies or home medical supplies, or
(E) in any other case, 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, an elementary or secondary school or a post-secondary college or technical institute, as the case may be, and
(iv) 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 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, or
(B) in any other case, 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, a public hospital, an elementary or secondary school or a post-secondary college or technical institute, as the case may be.
Marginal note:2004, c. 22, s. 39(4)
(6) The portion of subsection 259(4.2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Exclusions
(4.2) For the purposes of determining a rebate payable to a person, in determining an amount under paragraphs (3)(a) and (4)(a), or under paragraph (4.1)(a) if the applicable specified provincial percentage is 0% and the person is a selected public service body described in any of paragraphs (a) to (e) of the definition “selected public service body” in subsection (1) or in paragraph (f) or (g) of that definition if the person is resident in Newfoundland and Labrador, 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
Marginal note:2000, c. 30, s. 76(6)
(7) Subparagraph 259(4.3)(c)(ii) of the Act is replaced by the following:
(ii) in any other case, that it engages in otherwise than in the course of
(A) fulfilling its responsibilities as a local authority,
(B) operating a public hospital, an elementary or secondary school, a post-secondary college or technical institute, a recognized degree-granting institution or a college affiliated with or research body of such a degree-granting institution, or
(C) making facility supplies, ancillary supplies or home medical supplies or operating a qualifying facility for use in making facility supplies,
Marginal note:1993, c. 27, s. 115(3)
(8) Subsection 259(7) of the English version of the Act is replaced by following:
Marginal note:Selected public service bodies
(7) If a selected public service body acquires or imports property or a service primarily for consumption, use or supply in the course of activities engaged in by another selected public service body, for the purpose of determining the amount of a rebate under this section to the body in respect of the non-creditable tax charged in respect of the property or service for any claim period of the body, the body is deemed to be engaged in those activities.
Marginal note:1993, c. 27, s. 115(3)
(9) Subsection 259(8) of the Act is replaced by the following:
Marginal note:Selected public service bodies
(8) If a person acquires or imports 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.
(10) Section 259 of the Act is amended by adding the following after subsection (13):
Marginal note:Application
(14) For the purposes of this section, if a person incurs all or substantially all of the tax that is included in determining the amount of the non-creditable tax charged in respect of property or a service for a claim period of the person acting in the person’s capacity as a hospital authority, a facility operator or an external supplier, the person is deemed to have incurred all of the tax that is included in determining that amount in the course of fulfilling the person’s responsibilities as a hospital authority, a facility operator or an external supplier, as the case may be.
Marginal note:Rules for specified supplies
(15) Despite subsections (3), (4) and (4.1), for the purpose of applying subsection (4.1) to determine a rebate payable under subsection (3) or (4) to a person that is a hospital authority, a facility operator or an external supplier, for a claim period of the person, if the person is required to determine under paragraph (4.1)(b) a particular amount, in respect of a specified supply of property of the person made at any time, that would, if subsection (4) applied to the person, be determined by the formula in paragraph (4)(a) for the claim period and the value of C in that paragraph is the extent to which the person intended, at that time, to consume, use or supply the property in the course of specified activities, the particular amount shall be determined by the formula
A x B
where
- A
- is the amount that would, in the absence of this subsection, be determined to be the particular amount; and
- B
- is the amount determined by the formula
(B1 - B2) / B1
where
- B1
- is the fair market value of the property at the time of the supply, and
- B2
- is the fair market value of the property on January 1, 2005.
(11) Subsections (1) to (10) apply for the purposes of determining a rebate under section 259 of the Act of a person for claim periods ending on or after January 1, 2005, except that the rebate shall be determined as if those subsections had not come into force for the purposes of determining a rebate of a person for the claim period 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.
- Date modified: