Sales Tax Amendments Act, 2006 (S.C. 2007, c. 18)
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Assented to 2007-06-22
Sales Tax Amendments Act, 2006
S.C. 2007, c. 18
Assented to 2007-06-22
An Act to amend the Excise Tax Act, the Excise Act, 2001 and the Air Travellers Security Charge Act and to make related amendments to other Acts
SUMMARY
Part 1 of this enactment mainly implements proposed measures relating to the Goods and Services Tax and Harmonized Sales Tax (GST/HST). Part 2 contains measures relating to the Excise Act, 2001 and other Acts with respect to the taxation of tobacco, spirits and wine. Finally, Part 3 contains measures relating to the Air Travellers Security Charge.
The GST/HST measures, contained in Part 1 of this enactment, are principally aimed at improving the operation and fairness of the GST/HST in the affected areas and ensuring that the legislation accords with the policy intent. In some cases, adjustments have been made to the legislation as originally proposed in response to representations from the tax and business communities.
The principal GST/HST measures are as follows:
(1) Health: confirms the GST/HST exemption for speech-language pathology services; exempts health-related services rendered in the practise of the profession of social work; zero-rates sales and importations of a blood substitute known as plasma expander; restores the zero-rated status of a group of drugs, collectively known as Benzodiazepines; broadens the specially equipped vehicle GST/HST rebate so that this rebate applies to motor vehicles that have been used subsequent to being specially equipped for use by individuals with disabilities.
(2) Charities: ensures that the exemption of supplies by charities of real property under short-term leases and licences extends to any goods supplied together with such real property.
(3) Business Arrangements: provides transitional GST/HST relief on the initial asset transfer by a foreign bank that restructures its Canadian subsidiary into a Canadian branch; removes technical impediments that hinder the use of existing group relief provisions under the GST/HST; simplifies compliance by excluding beverage container deposits that are refundable to the consumer from the GST/HST base; permits an agent to claim a GST/HST deduction for bad debts, and to claim adjustments or refunds of tax, in respect of sales made on behalf of a principal where the agent collects and reports tax; extends the existing agent rules under the GST/HST legislation to persons acting only as billing agents for vendors; better accommodates special import arrangements between businesses in certain situations where goods are supplied outside Canada to a Canadian customer; ensures that GST/HST group relief rules cannot be used to exempt from GST/HST otherwise taxable clearing services that are provided by a group member to a closely related financial institution who will then re-supply those services on an exempt basis to a third-party purchaser outside the group; clarifies the treatment of the right to use certain types of amusement or entertainment devices, such as the playing of a game, when it is provided through the operation of a mechanical coin-operated device that can accept only a single coin of twenty-five cents or less as the total consideration for the supply; confirms the policy intent and Canada Revenue Agency’s existing practice that no GST/HST or provincial sales taxes on a passenger vehicle are included in calculating the maximum allowable value for input tax credit purposes.
(4) Governments: ensures that a small supplier division of a municipality is treated in the same manner as a municipality that is a small supplier; exempts a supply of a right to file or retrieve a document or information stored in an electronic official registry.
(5) HST-related Rules: as announced by the Government of Nova Scotia, limits the availability of the current Nova Scotia HST New Housing Rebate to first-time homebuyers and reduces the maximum rebate available to $1,500; includes in the Act the draft Specified Motor Vehicle (GST/HST) Regulations, which prescribe the value of a specified motor vehicle for the purposes of calculating the 8% provincial component of the HST in circumstances where the vehicle is brought into a participating province and prescribe the manner in which that tax is required to be paid.
(6) Administration: adds a discretionary power for the Minister of National Revenue to accept late-filed applications for the GST New Housing Rebate and the Nova Scotia HST New Housing Rebate for owner-built homes, where exceptional circumstances have prevented an applicant from meeting the normal filing deadline; adds a discretionary power for the Minister of National Revenue to accept late-filed elections between closely related financial institutions for adjustments that they are required to make for the provincial component of the HST; permits the Minister of National Revenue to exchange GST/HST information with foreign governments that are signatories to the Convention on Mutual Administrative Assistance in Tax Matters; adds a discretionary power under the Act for the Chief Statistician of Canada to provide statistical information concerning business activities to the provinces similar to an existing provision in the Income Tax Act.
The measures contained in Part 2 of this enactment amend the Excise Act, 2001 to implement minor refinements that will improve the operation of the Act and more accurately reflect current industry and administrative practices. They also implement related and consequential amendments to the Access to Information Act, the Customs Act, the Customs Tariff and the Excise Tax Act.
The principal measures related to the Excise Act, 2001 are as follows:
(1) Tobacco: extends the requirement to identify the origin of tobacco products to all products, including those for sale at duty-free shops or for export, consistent with the Framework Convention on Tobacco Control, an international treaty on tobacco control; clarifies that cigarettes, tobacco sticks, fine-cut tobacco or cigars, but not packaged raw leaf tobacco, may be supplied to the export market or the domestic duty-free market.
(2) Alcohol: authorizes private laboratories, provincial liquor boards and vintners to possess a still or similar equipment and produce spirits for the purpose of analysing substances containing ethyl alcohol without holding a spirits licence; defers the payment of duty by small vintners selling wine on consignment in retail stores operated by an association of vintners until the wine is sold.
(3) Administration: permits the Minister of National Revenue to exchange excise duty information with foreign governments that are signatories to the Convention on Mutual Administrative Assistance in Tax Matters; adds a discretionary power under the Act for the Chief Statistician of Canada to provide statistical information concerning business activities to the provinces similar to an existing provision in the Income Tax Act.
The measures pertaining to the Air Travellers Security Charge (ATSC), contained in Part 3 of this enactment, include previously announced relief provisions, as well as technical changes to the Air Travellers Security Charge Act.
The principal measures related to the ATSC are as follows:
(1) Relief: relieves, in particular circumstances, the ATSC in respect of air travel sold by resellers or donated by air carriers.
(2) Administration: provides authority for the Governor in Council to add, delete or vary by regulation the schedule of listed airports.
Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
SHORT TITLE
Marginal note:Short title
1. This Act may be cited as the Sales Tax Amendments Act, 2006.
PART 1R.S., c. E-15AMENDMENTS TO THE EXCISE TAX ACT
Amendments in Respect of the Goods and Services Tax/Harmonized Sales Tax
Marginal note:1990, c. 45, s. 12(1)
2. (1) The definition “closely related group” in subsection 123(1) of the Excise Tax Act is replaced by the following:
“closely related group”
« groupe étroitement lié »
“closely related group” means a group of corporations, each member of which is a registrant resident in Canada and is closely related, within the meaning assigned by section 128, to each other member of the group, and for the purposes of this definition,
(a) a non-resident insurer that has a permanent establishment in Canada is deemed to be resident in Canada, and
(b) credit unions and members of a mutual insurance group are deemed to be registrants;
Marginal note:1990, c. 45, s. 12(1)
(2) The definition logement en copropriété in subsection 123(1) of the French version of the Act is replaced by the following:
« logement en copropriété »
“residential condominium unit”
logement en copropriété Immeuble d’habitation qui est, ou est destiné à être, un espace délimité dans un bâtiment et désigné ou décrit comme étant une unité distincte sur le plan ou la description enregistrés afférents, ou sur un plan ou une description analogues enregistrés en conformité avec les lois d’une province, ainsi que tous droits et intérêts fonciers afférents à la propriété de l’unité.
Marginal note:1997, c. 10, s. 150(6)
(3) Subparagraph (iii) of the description of A in paragraph (a) of the definition “basic tax content” in subsection 123(1) of the Act is replaced by the following:
(iii) the tax under section 165 that would have been payable by the person, in respect of the last acquisition of the property by the person or in respect of improvements to the property acquired by the person after the property was last acquired or imported by the person, in the absence of subsection 153(4), section 167, section 167.11 in the case of property acquired under an agreement for a qualifying supply (as defined in that section) that was not, immediately before that acquisition, capital property of the supplier or the fact that the property or improvements were acquired by the person for consumption, use or supply exclusively in commercial activities,
Marginal note:1997, c. 10, s. 150(6)
(4) Subparagraph (iv) of the description of J in paragraph (b) of the definition “basic tax content” in subsection 123(1) of the Act is replaced by the following:
(iv) the tax under section 165 that would have been payable by the person, in respect of improvements to the property acquired by the person after the property was brought into the participating province, in the absence of subsection 153(4), section 167, section 167.11 in the case of property acquired under an agreement for a qualifying supply (as defined in that section) that was not, immediately before that acquisition, capital property of the supplier or the fact that the improvements were acquired by the person for consumption, use or supply exclusively in commercial activities, or
Marginal note:1990, c. 45, s. 12(1)
(5) The portion of the definition “qualifying subsidiary” in subsection 123(1) of the Act before paragraph (b) is replaced by the following:
“qualifying subsidiary”
« filiale déterminée »
“qualifying subsidiary” of a particular corporation means another corporation not less than 90% of the value and number of the issued and outstanding shares of the capital stock of which, having full voting rights under all circumstances, are owned by the particular corporation, and includes
(a) a corporation that is a qualifying subsidiary of a qualifying subsidiary of the particular corporation,
(6) Subsection 123(1) of the Act is amended by adding the following in alphabetical order:
“listed international agreement”
« accord international désigné »
“listed international agreement” means the Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time;
“Superintendent”
« surintendant »
“Superintendent” means the Superintendent of Financial Institutions appointed pursuant to the Office of the Superintendent of Financial Institutions Act;
(7) Subsections (1) and (5) are deemed to have come into force on November 17, 2005.
(8) Subsection (2) is deemed to have come into force on January 1, 2000.
(9) Subsections (3) and (4) and the definition “Superintendant” in subsection 123(1) of the Act, as enacted by subsection (6), are deemed to have come into force on June 28, 1999.
Marginal note:1990, c. 45, s. 12(1)
3. (1) The portion of subsection 128(1) of the Act before subparagraph (a)(i) is replaced by the following:
Marginal note:Closely related corporation
128. (1) For the purposes of this Part, a particular corporation and another corporation are closely related to each other at any time if at that time
(a) not less than 90% of the value and number of the issued and outstanding shares of the capital stock of the other corporation, having full voting rights under all circumstances, are owned by
Marginal note:1990, c. 45, s. 12(1)
(2) The portion of subsection 128(1) of the Act after paragraph (b) is repealed.
Marginal note:1990, c. 45, s. 12(1); 1993, c. 27, s. 12(2)
(3) Subsections 128(2) and (3) of the Act are replaced by the following:
Marginal note:Corporations closely related to the same corporation
(2) If under subsection (1) two corporations are closely related to the same corporation, they are closely related to each other for the purposes of this Part.
Marginal note:Investment funds
(3) For the purposes of this section, an investment fund that is a member of a mutual insurance group is deemed to be a corporation.
(4) Subsections (1) to (3) are deemed to have come into force on November 17, 2005.
Marginal note:1993, c. 27, s. 13(1)
4. (1) Subsection 129.1(1) of the Act is replaced by the following:
Marginal note:Supply by small supplier division
129.1 (1) If a public service body makes a taxable supply through a branch or division of the body and the consideration or a part of the consideration for the supply becomes due to the body at a time when the branch or division is a small supplier division or is paid to the body at such a time without having become due, the consideration or the part of the consideration, as the case may be, shall not be included in calculating the tax payable in respect of the supply or in determining a threshold amount of the body under section 249 and that supply is, for the purposes of this Part, deemed not to have been made by a registrant, 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 November 27, 2006 or for which consideration 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 November 28, 2006.
Marginal note:1997, c. 10, s. 12(1)
5. (1) Subsection 150(2) of the Act is replaced by the following:
Marginal note:Exceptions
(2) Subsection (1) does not apply to
(a) property held or services rendered by a member of a closely related group as a participant in a joint venture with another person while an election under section 273 made jointly by the member and the other person is in effect;
(b) an imported taxable supply, as defined in section 217; or
(c) a supply of services in relation to the clearing or settlement of cheques and other payment items under the national payments system of the Canadian Payments Association if the recipient (in this paragraph referred to as the “related purchaser”) is acquiring all or part of those services for the purpose of making a supply of exempt services to
(i) an unrelated party, or
(ii) a supplier that is a member of a closely related group of which the related purchaser is a member and that acquires all or part of the exempt services for the purpose of making a supply of exempt services to an unrelated party or to a supplier described by this subparagraph.
Marginal note:Definitions
(2.1) The following definitions apply in subsection (2).
“exempt services”
« services exonérés »
“exempt services” means services prescribed by section 3 of the Financial Services (GST/HST) Regulations.
“unrelated party”
« tiers non lié »
“unrelated party”, in respect of a supply of services, means a person that is not a member of a closely related group of which the supplier is a member and that is acquiring the services for the purpose of making a supply of services in relation to the clearing or settlement of cheques and other payment items under the national payments system of the Canadian Payments Association.
(2) Subject to subsection (3), subsection (1) is deemed to have come into force on September 14, 2001.
(3) Paragraph 150(2)(c) of the Act, as enacted by subsection (1), does not apply to
(a) services provided before September 14, 2001; or
(b) any supply of services to a related purchaser (within the meaning of that paragraph) if the agreement for the supply of all or part of those services to the unrelated party (as defined in subsection 150(2.1) of the Act, as enacted by subsection (1)) was entered into before September 14, 2001.
(4) For the purposes of Part IX of the Act, if the supply, referred to in paragraph 150(2)(c) of the Act, as enacted by subsection (1), made to the related purchaser (within the meaning of that paragraph) includes the provision of services during a period beginning before September 14, 2001 and ending on or after that day,
(a) the provision of the services (in this subsection referred to as the “excluded services”) that are provided during the part of the period that is before September 14, 2001 and the provision of the services (in this subsection referred to as the “affected services”) that are provided during the remainder of the period are deemed to be a separate supply;
(b) the consideration for the supply of the excluded services is deemed to be equal to the portion of the total consideration for the services provided in the period that can reasonably be attributed to the excluded services; and
(c) the consideration for the supply of the affected services is deemed to be equal to the portion of that total consideration that can reasonably be attributed to the affected services.
Marginal note:2000, c. 30, s. 25(1)
6. (1) The definitions “qualifying group” and “specified member” in subsection 156(1) of the Act are replaced by the following:
“qualifying group”
« groupe admissible »
“qualifying group” means
(a) a group of corporations, each member of which is closely related, within the meaning assigned by section 128, to each other member of the group; or
(b) a group of Canadian partnerships, or of Canadian partnerships and corporations, each member of which is closely related, within the meaning of this section, to each other member of the group.
“specified member”
« membre déterminé »
“specified member” of a qualifying group means
(a) a qualifying member of the group; or
(b) a temporary member of the group during the course of the reorganization referred to in paragraph (f) of the definition “temporary member”.
(2) Subsection 156(1) of the Act is amended by adding the following in alphabetical order:
“distribution”
« attribution »
“distribution” has the meaning assigned by subsection 55(1) of the Income Tax Act.
“qualifying member”
« membre admissible »
“qualifying member” of a qualifying group means a registrant that is a corporation resident in Canada or a Canadian partnership and that meets the following conditions:
(a) the registrant is a member of the group;
(b) the registrant is not a party to an election under subsection 150(1); and
(c) the registrant last manufactured, produced, acquired or imported all or substantially all of its property (other than financial instruments) for consumption, use or supply exclusively in the course of commercial activities of the registrant or, if the registrant has no property (other than financial instruments), all or substantially all of the supplies made by the registrant are taxable supplies.
“temporary member”
« membre temporaire »
“temporary member” of a qualifying group means a corporation
(a) that is a registrant;
(b) that is resident in Canada;
(c) that is a member of the qualifying group;
(d) that is not a qualifying member of the qualifying group;
(e) that is not a party to an election under subsection 150(1);
(f) that receives a supply of property made in contemplation of a distribution made in the course of a reorganization described in subparagraph 55(3)(b)(i) of the Income Tax Act from the distributing corporation referred to in that subparagraph that is a qualifying member of the qualifying group;
(g) that, before receiving the supply, does not carry on any business or have any property (other than financial instruments); and
(h) the shares of which are transferred on the distribution.
Marginal note:2000, c. 30, s. 25(1)
(3) The portion of subsection 156(1.1) of the Act before subparagraph (a)(i) is replaced by the following:
Marginal note:Closely related persons
(1.1) For the purposes of this section, a particular Canadian partnership and another person that is a Canadian partnership or a corporation are closely related to each other at any time if, at that time,
(a) in the case where the other person is a Canadian partnership,
Marginal note:2000, c. 30, s. 25(1)
(4) Clause 156(1.1)(a)(i)(B) of the Act is replaced by the following:
(B) a corporation, or a Canadian partnership, that is a member of a qualifying group of which the particular partnership is a member, or
Marginal note:2000, c. 30, s. 25(1)
(5) Clause 156(1.1)(a)(ii)(A) of the Act is replaced by the following:
(A) owns at least 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of a corporation that is a member of a qualifying group of which the other person is a member, or
Marginal note:2000, c. 30, s. 25(1)
(6) The portion of paragraph 156(1.1)(b) of the English version of the Act before subparagraph (i) is replaced by the following:
(b) in the case where the other person is a corporation,
Marginal note:2000, c. 30, s. 25(1)
(7) Clause 156(1.1)(b)(i)(B) of the Act is replaced by the following:
(B) a corporation, or a Canadian partnership, that is a member of a qualifying group of which the particular partnership is a member, or
Marginal note:2000, c. 30, s. 25(1)
(8) The portion of subparagraph 156(1.1)(b)(ii) of the Act before clause (A) is replaced by the following:
(ii) not less than 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of a corporation are owned by
Marginal note:2000, c. 30, s. 25(1)
(9) Clause 156(1.1)(b)(iii)(B) of the Act is replaced by the following:
(B) a corporation, or a Canadian partnership, that is a member of a qualifying group of which the other person is a member, or
Marginal note:2000, c. 30, s. 25(1)
(10) Subsection 156(1.2) of the Act is replaced by the following:
Marginal note:Persons closely related to the same person
(1.2) If, under subsection (1.1), two persons are closely related to the same corporation or partnership, or would be so related if each member of that partnership were resident in Canada, the two persons are closely related to each other for the purposes of this section.
Marginal note:2000, c. 30, s. 25(1)
(11) Subsection 156(2) of the Act is replaced by the following:
Marginal note:Election for nil consideration
(2) For the purposes of this Part, if a specified member of a qualifying group elects jointly with another specified member of the group, every taxable supply made between them at a time when the election is in effect is deemed to have been made for no consideration.
Marginal note:Non-application
(2.1) Subsection (2) does not apply to
(a) a supply by way of sale of real property;
(b) a supply of property, or of a service, that is not acquired by the recipient for consumption, use or supply exclusively in the course of commercial activities of the recipient; or
(c) a supply that is not a supply of property made in contemplation of a distribution made in the course of a reorganization described in subparagraph 55(3)(b)(i) of the Income Tax Act, if the recipient of the supply is a temporary member.
(12) Subsections (1) to (10) are deemed to have come into force on November 17, 2005.
(13) Subsection (11) applies to any supply made after November 16, 2005.
7. (1) Section 165 of the Act, as it read immediately before April 1, 1997, is amended by adding the following after subsection (3.1):
Marginal note:Supply of right to use device
(3.2) For the purpose of subsection (3.1), a supply of a right to use a device described in that subsection is deemed to be a supply of a service rendered through the operation of the device.
(2) Subsection 165(3.2) of the Act, as enacted by subsection (1), is repealed.
(3) Subsection 165(3.2) of the Act, as enacted by subsection (1), applies to supplies made after April 23, 1996.
(4) Subsection (2) is deemed to have come into force on April 1, 1997.
8. (1) Section 165.1 of the Act is amended by adding the following after subsection (2):
Marginal note:Supply of right to use device
(3) For the purpose of subsection (2), a supply of a right to use a device described in that subsection is deemed to be a supply of a service rendered through the operation of the device.
(2) Subsection (1) is deemed to have come into force on April 1, 1997.
9. (1) The Act is amended by adding the following after section 167.1:
Marginal note:Definitions
167.11 (1) The following definitions apply in this section.
“authorized foreign bank”
« banque étrangère autorisée »
“authorized foreign bank” has the meaning assigned by section 2 of the Bank Act.
“foreign bank branch”
« succursale de banque étrangère »
“foreign bank branch” means a branch as defined in paragraph (b) of the definition “branch” in section 2 of the Bank Act.
“qualifying supply”
« fourniture admissible »
“qualifying supply” means a supply of property or a service that is made in Canada under an agreement for the supply (other than an agreement between a supplier that is a registrant and a recipient that is not a registrant at the time the agreement is entered into) and
(a) that is made by a corporation resident in Canada related to the recipient;
(b) that is made after June 27, 1999, and before
(i) if the Superintendent makes an order under subsection 534(1) of the Bank Act in respect of the recipient after the particular day on which the Act enacting this section receives royal assent but before the day that is one year after the particular day, the day that is one year after the day on which the Superintendent makes the order, and
(ii) in any other case, the day that is one year after the particular day referred to in subparagraph (i); and
(c) that is received by a recipient that
(i) is a non-resident person,
(ii) is, or has filed an application with the Superintendent for an order under subsection 524(1) of the Bank Act to become, an authorized foreign bank, and
(iii) acquired the property or service for consumption, use or supply by the recipient for the purpose of the establishment and commencement of business in Canada by the recipient as an authorized foreign bank at a foreign bank branch of the authorized foreign bank.
Marginal note:Supply of assets
(2) For the purposes of this Part, if a supplier and a recipient of a qualifying supply make a joint election in accordance with subsection (7) in respect of the qualifying supply,
(a) the supplier is deemed to have made, and the recipient is deemed to have received, a separate supply of each property and service that is supplied under the agreement for the qualifying supply for consideration equal to that part of the consideration for the qualifying supply that can reasonably be attributed to that property or service;
(b) any part of the consideration for the qualifying supply attributed to goodwill is deemed to be attributed to a taxable supply of intangible personal property unless section 167.1 applies to the qualifying supply; and
(c) subsections (3) to (6) apply to the supply of each property and service that is supplied under the agreement for the qualifying supply.
Marginal note:Effect of election
(3) For the purposes of this Part, if a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply made at any time,
(a) no tax is payable in respect of a supply of any property or service made under the agreement for the qualifying supply other than
(i) a taxable supply of a service that is to be rendered by the supplier,
(ii) a taxable supply of a service unless paragraph 167(1)(a) applies to the qualifying supply,
(iii) a taxable supply of property by way of lease, licence or similar arrangement,
(iv) if the recipient is not a registrant, a taxable supply by way of sale of real property,
(v) a taxable supply of property or a service, if the property or service was previously supplied under an agreement for a qualifying supply and, by reason of this subsection, no tax was payable in respect of that previous supply of property or service, and
(vi) a taxable supply of intangible personal property (other than capital property) if the percentage determined by the following formula is greater than 10%:
A - B
where
- A
- is the extent (expressed as a percentage of the total use of the property by the supplier) to which the supplier used the property in commercial activities immediately before that time, and
- B
- is the extent (expressed as a percentage of the total use of the property by the recipient) to which the recipient used the property in commercial activities immediately after that time;
(b) if, in the absence of this subsection, tax would have been payable by the recipient in respect of a supply of property made under the agreement for the qualifying supply, the property was capital property of the supplier and the property is being acquired by the recipient for use as capital property of the recipient, the recipient is deemed to have so acquired the property for use exclusively in the course of commercial activities of the recipient;
(c) if, despite this subsection, tax would not have been payable by the recipient in respect of a supply of property made under the agreement for the qualifying supply, the property was capital property of the supplier and the property is being acquired by the recipient for use as capital property of the recipient, the recipient is deemed to have so acquired the property for use exclusively in activities of the recipient that are not commercial activities; and
(d) if the recipient acquires under the agreement for the qualifying supply property of the supplier that was used by the supplier immediately before that time otherwise than as capital property of the supplier and, in the absence of this paragraph, tax would have been payable by the recipient in respect of the supply of the property, the recipient is deemed to have acquired the property for consumption, use or supply in the course of commercial activities and otherwise than as capital property of the recipient.
Marginal note:Basic tax content
(4) For the purposes of this Part, if a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply and, under the agreement for the qualifying supply, the supplier makes a supply of property that is, immediately before the time the qualifying supply is made, capital property of the supplier and, by reason of subsection (3), no tax is payable in respect of the supply of the property, the basic tax content of the property of the recipient at any time shall be determined by applying the following rules:
(a) if the last acquisition of the property by the recipient is the acquisition by the recipient at the time the qualifying supply is made, any reference in paragraphs (a) and (b) of the definition “basic tax content” in subsection 123(1) to the last acquisition or importation of the property by the person shall be read as a reference to the last acquisition or importation of the property by the supplier and not the acquisition by the recipient at the time the qualifying supply is made;
(b) if the last supply to the recipient of the property is the supply to the recipient at the time the qualifying supply is made, the reference in paragraph (a) of the definition “basic tax content” in subsection 123(1) to the last supply of the property to the person shall be read as a reference to the last supply of the property to the supplier and not the supply to the recipient at the time the qualifying supply is made; and
(c) if, at any particular time on or after the last acquisition or importation of the property by the supplier and before the time the qualifying supply is made, the property is acquired, imported or brought into a participating province or an improvement to the property is acquired, imported or brought into a participating province, any reference in paragraphs (a) and (b) of the definition “basic tax content” in subsection 123(1) to
(i) any acquisition, importation or bringing into a participating province of the property at that particular time or any acquisition, importation or bringing into a participating province of an improvement to the property at that particular time (in this paragraph referred to as the “actions”) by the person shall be read as a reference to actions by the supplier and not actions by the recipient,
(ii) any tax that was payable, that would have been or would have become payable, that became payable or that had been payable by the person in respect of those actions at that particular time shall be read as a reference to tax that was payable, that would have been or would have become payable, that became payable or that had been payable by the supplier and not by the recipient,
(iii) the person in respect of those actions at that particular time, or in respect of a particular status of the person at that particular time, shall be read as a reference to the supplier and not to the recipient,
(iv) any tax that the person was exempt from paying in respect of those actions at that particular time shall be read as a reference to tax that the supplier, and not the recipient, was exempt from paying,
(v) the person’s percentage for a participating province determined for the purposes of subsection 225.2(2) for the person’s taxation year that includes the time that an amount of tax became payable, or would have become payable by the person while the person was a selected listed financial institution, shall be read as a reference to the supplier’s percentage for a participating province determined for the purposes of subsection 225.2(2) for the supplier’s taxation year that includes the time that an amount of tax became payable, or would have become payable while the supplier was a selected listed financial institution, and
(vi) all amounts that the person was, or would have been, entitled to recover by way of rebate, refund, remission or otherwise in respect of those actions at that particular time shall be read as a reference to all amounts that the supplier, and not the recipient, was, or would have been, entitled to recover by way of rebate, refund, remission or otherwise in respect of those actions.
Marginal note:Adjustment to net tax
(5) For the purposes of this Part, if a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply made before November 17, 2005 under an agreement for the qualifying supply and tax is paid by the recipient in respect of property or a service supplied under the agreement for the qualifying supply despite no tax being payable in respect of that supply as a result of subsection (3), the tax is deemed, except for the purposes of subsection (4) and despite subsection (3), to have been payable by the recipient in respect of the supply of the property or service and, in determining the net tax for the particular reporting period of the recipient in which the election is filed with the Minister, the recipient may deduct in determining the net tax of the recipient for the particular reporting period the total of all amounts each of which is an amount determined by the formula
A - B
where
- A
- is the amount of tax paid, despite no tax being payable as a result of subsection (3), by the recipient in respect of the supply of the property or service made under the agreement for the qualifying supply; and
- B
- is the total of
(a) all amounts each of which is an input tax credit that the recipient was entitled to claim in respect of the property or service supplied under the agreement for the qualifying supply,
(b) all amounts each of which is an amount (other than an amount determined under this subsection) that may be deducted by the recipient under this Part in determining the net tax of the recipient for a reporting period in respect of the property or service supplied under the agreement for the qualifying supply, and
(c) all amounts (other than amounts referred to in paragraphs (a) and (b)) in respect of the tax paid that may be otherwise recovered by way of rebate, refund, remission or otherwise by the recipient in respect of the property or service supplied under the agreement for the qualifying supply.
Marginal note:Limitation period where election
(6) If a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply, section 298 applies to any assessment, reassessment or additional assessment of an amount payable by the recipient in respect of a supply of property or a service made under the agreement for the qualifying supply, but the Minister has until the day that is four years after the later of the day on which the election under subsection (2) is filed with the Minister and the day on which the qualifying supply is made, to make any assessment, reassessment or additional assessment solely for the purpose of taking into account any tax, net tax or any other amount payable by the recipient or remittable by the supplier in respect of a supply of property or a service made under the agreement for the qualifying supply.
Marginal note:Validity of election
(7) A joint election referred to in subsection (2) made by a supplier and a recipient in respect of a qualifying supply is valid only if
(a) the recipient files the election with the Minister in prescribed form containing prescribed information not later than the particular day that is the latest of
(i) if the recipient is
(A) a registrant at the time the qualifying supply is made, the day on or before which the return under Division V is required to be filed for the recipient’s reporting period in which tax would, in the absence of this section, have become payable in respect of the supply of property or service made under the agreement for the qualifying supply, or
(B) not a registrant at the time the qualifying supply is made, the day that is one month after the end of the recipient’s reporting period in which tax would, in the absence of this section, have become payable in respect of the supply of property or service made under the agreement for the qualifying supply,
(ii) the day that is one year after the day on which the Act enacting this section receives royal assent, and
(iii) the day that the Minister may determine on application of the recipient;
(b) the qualifying supply is made on or before the day that is one year after the day on which the recipient received for the first time a qualifying supply in respect of which an election under subsection (2) has been made; and
(c) on or before the day on which the election referred to in subsection (2) is filed in respect of the qualifying supply, the recipient has not made an election under subsection 167(1.1) in respect of the qualifying supply.
(2) Subsection (1) is deemed to have come into force on June 28, 1999.
Marginal note:1997, c. 10, ss. 25(1) and 169(1)(F)
10. (1) The portion of subsection 176(1) of the Act before paragraph (b) is replaced by the following:
Marginal note:Acquisition of used returnable containers
176. (1) Subject to this Division, if
(a) a registrant is the recipient of a supply made in Canada by way of sale of used tangible personal property (other than a returnable container as defined in subsection 226(1)) that is a usual covering or container of a class of coverings or containers in which property (other than property the supply of which is a zero-rated supply) is delivered,
Marginal note:1997, c. 10, s. 25(1)
(2) The portion of paragraph 176(1)(d) of the Act before subparagraph (i) is replaced by the following:
(d) the registrant pays consideration for the supply that is not less than the total of
(3) Subsections (1) and (2) apply to supplies for which consideration becomes due after July 15, 2002 or is paid after that day without having become due.
Marginal note:1997, c. 10, s. 26(1)
11. (1) Paragraphs 177(1.1)(a) and (b) of the Act are replaced by the following:
(a) the tax collectible in respect of the supply or any amount charged or collected by the registrant on behalf of the person as or on account of tax in respect of the supply is deemed to be collectible, charged or collected, as the case may be, by the registrant, and not by the person, for the purposes of
(i) determining the net tax of the registrant and of the person, and
(ii) applying sections 222 and 232;
(b) the registrant and the person are jointly and severally, or solidarily, liable for all obligations under this Part that arise upon or as a consequence of
(i) the tax becoming collectible,
(ii) a failure to account for or pay as and when required under this Part an amount of net tax of the registrant, or an amount required under section 230.1 to be paid by the registrant, that is reasonably attributable to the supply,
(iii) the registrant claiming, in respect of the supply, an amount as a deduction under section 231 or 232 to which the registrant was not entitled or in excess of the amount to which the registrant was entitled,
(iv) a failure to pay as and when required under this Part the amount of any underpayment of net tax by the registrant, or an amount required under section 230.1 to be paid by the registrant, that is reasonably attributable to a claim referred to in subparagraph (iii),
(v) a recovery of all or part of a bad debt relating to the supply in respect of which the registrant claimed a deduction under subsection 231(1), or
(vi) a failure to account for or pay as and when required under this Part an amount of net tax of the registrant, or an amount required under section 230.1 to be paid by the registrant, that is reasonably attributable to an amount required under subsection 231(3) to be added to the net tax of the registrant in respect of a bad debt referred to in subparagraph (v); and
(c) the threshold amounts of the registrant and of the person under subsections 249(1) and (2) shall be determined as if any consideration that became due to the person, or was paid to the person without having become due, in respect of the supply had become due to the registrant, or had been paid to the registrant without having become due, as the case may be, and not to the person.
(2) Section 177 of the Act is amended by adding the following after subsection (1.1):
Marginal note:Billing agent
(1.11) If a registrant acts as agent of a supplier in charging and collecting consideration and tax payable in respect of a supply made by the supplier but the registrant does not act as agent in making the supply, the registrant is deemed to have acted as agent of the supplier in making the supply for the purposes of
(a) subsection (1.1); and
(b) if an election under subsection (1.1) is made in respect of the supply, any other provision that refers to a supply in respect of which an election under that subsection has been made.
Marginal note:Joint revocation
(1.12) A registrant and a supplier who have jointly made an election under subsection (1.1) may, in prescribed form containing prescribed information, jointly revoke the election with respect to any supply made on or after the effective date specified in the revocation, and the election is thereby deemed, for the purposes of this Part, not to have been made with respect to that supply.
(3) Paragraphs 177(1.1)(a) and (c) of the Act, as enacted by subsection (1), and subsection 177(1.11) of the Act, as enacted by subsection (2), apply to supplies made after December 20, 2002.
(4) Paragraph 177(1.1)(b) of the Act, as enacted by subsection (1), applies to supplies made after April 23, 1996 in respect of which an election under subsection 177(1.1) of the Act is made at any time, except that, with respect to any supply made before December 21, 2002 in respect of which an election under that subsection was made before December 21, 2002,
(a) subparagraph 177(1.1)(b)(ii) of the Act, as enacted by subsection (1), shall be read as follows:
(ii) a failure to account for or remit the tax,
and
(b) the reference in subparagraph 177(1.1)(b)(iii) of the Act, as enacted by subsection (1), to “section 231 or 232” shall be read as a reference to “section 231”.
(5) Subsection 177(1.12) of the Act, as enacted by subsection (2), is deemed to have come into force on December 20, 2002.
Marginal note:2000, c. 30, s. 32(1)
12. (1) Paragraph 178.7(1)(b) of the French version of the Act is replaced by the following:
b) l’acquéreur du service est un organisme du secteur public ou une commission ou autre organisme établi par un gouvernement ou une municipalité.
(2) Subsection (1) is deemed to have come into force on February 24, 1998 and applies to reporting periods beginning after that day.
13. (1) The Act is amended by adding the following after section 178.7:
Import Arrangements
Definition of “specified supply”
178.8 (1) In this section, “specified supply” means a supply of goods that
(a) are, at any time after the supply is made, imported; or
(b) have been imported in circumstances in which section 144 deems the supply to have been made outside Canada.
Marginal note:Deemed importer of goods
(2) Subject to subsections (4) and (7), if a recipient of a specified supply of goods made outside Canada does not, at any time before the release of the goods, supply the goods outside Canada and the recipient or any other person imported the goods for consumption, use or supply by the recipient (in this section referred to as the “constructive importer”), the constructive importer is deemed to have so imported the goods, and any amount paid or payable as or on account of tax on the goods under Division III in respect of the importation is deemed to have been paid or payable, as the case may be, by or on behalf of the constructive importer and not by or on behalf of any other person.
Marginal note:Agreement to treat supply as made in Canada
(3) If a registrant makes a specified supply of goods outside Canada that is a taxable supply, the recipient of the supply is the constructive importer of the goods and an amount is, in the absence of subsection (2), paid or payable by or on behalf of the registrant as or on account of tax on the goods under Division III in respect of the importation, the registrant and the recipient may at any time agree, in prescribed form containing prescribed information, to have subsection (4) apply in respect of the supply and importation.
Marginal note:Effect of agreement
(4) If a registrant and the constructive importer of goods have entered into an agreement under subsection (3) in respect of the supply and importation of the goods and the constructive importer has not entered into an agreement under subsection (5) in respect of any amount paid as or on account of tax on the goods under Division III in respect of the importation,
(a) the supply is deemed to have been made in Canada
(i) in the case of a constructive importer who is an individual to whom the goods are shipped to a destination in Canada by another person, at the address to which the goods are sent by mail or courier by the shipper or at the destination that is specified in the contract for carriage of the goods or at which the shipper has directed a common carrier or consignee retained on behalf of the constructive importer to transfer physical possession of the goods, and
(ii) in any other case, at the place at which the goods are released;
(b) except if subsection 155(1) applies, the consideration for the supply is deemed to be equal to the amount otherwise determined for the purposes of this Part plus any amount (in this paragraph referred to as “additional consideration”) not otherwise included in that consideration that the constructive importer at a particular time pays or is required to pay to the registrant in respect of duties or taxes payable on the goods under this Act (other than this Part), the Customs Tariff, the Excise Act, 2001, the Special Import Measures Act or any other law relating to customs and, despite section 168, the tax in respect of the supply that is calculated on the additional consideration becomes payable at the particular time;
(c) the registrant is deemed to have imported the goods for the purpose of supply in the course of commercial activities of the registrant; and
(d) any amount paid or payable as or on account of tax on the goods under Division III in respect of the importation is deemed to have been paid or payable, as the case may be, by or on behalf of the registrant and not by or on behalf of any other person.
Marginal note:Agreement regarding rebates, abatements and refunds
(5) If the constructive importer of goods is deemed under subsection (2) to be the person by whom the goods are imported but another person (in this section referred to as the “specified importer”) was identified, for the purposes of the Customs Act, as the importer of the goods when the goods were accounted for under section 32 of that Act and, in the absence of subsection (2), paid an amount as or on account of tax on the goods under Division III, the constructive importer and the specified importer may agree in writing to have subsection (7) apply in respect of that amount.
Marginal note:Restriction
(6) Subsection (5) does not apply to any amount in respect of which, because of section 263.01, the constructive importer of goods would not be entitled to a rebate referred to in that section if the constructive importer paid the amount as or on account of tax on the goods under Division III.
Marginal note:Effect of agreement
(7) If a constructive importer of goods and a specified importer have entered into an agreement under subsection (5) to have this subsection apply in respect of an amount paid as or on account of tax on the goods under Division III and the constructive importer has not entered into an agreement under subsection (3) with the supplier of the goods in respect of the importation,
(a) subsections 215.1(2) and (3) and 216(6) and (7) apply as if the specified importer and not the constructive importer were the person by whom the goods were imported and the amount was paid, but only if, within a reasonable time after any rebate under subsection 215.1(2) or 216(6) in respect of the amount is granted or any abatement or refund is, because of subsection 215.1(3) or 216(7), granted in respect of the amount, the specified importer issues to the constructive importer a note (in this subsection referred to as a “tax adjustment note”), in prescribed form containing prescribed information, indicating the amount of the rebate, abatement or refund;
(b) in applying subsection 215.1(2) or (3) in respect of the amount in accordance with paragraph (a), that subsection shall be read without reference to subparagraphs (a)(i) and (ii), and paragraph (c), of that subsection; and
(c) if the constructive importer receives a tax adjustment note indicating the amount of a rebate, abatement or refund,
(i) the amount that is rebated, abated or refunded is deemed to have been payable as tax and to have been recovered by the constructive importer and, except for the purposes of section 232, the tax adjustment note is deemed to be a credit note referred to in that section received by the constructive importer for the amount of the rebate, abatement or refund,
(ii) the amount of the rebate, abatement or refund shall be added in determining the net tax of the constructive importer for the reporting period in which the tax adjustment note is received, to the extent that the amount has been included in determining an input tax credit claimed by the constructive importer in a return filed for that or a preceding reporting period or the constructive importer is or was entitled to be compensated under a warranty for loss suffered because of any of the circumstances that gave rise to the rebate, abatement or refund by receiving a supply of replacement parts, or replacement property, that are goods included in section 5 of Schedule VII, and
(iii) if the amount rebated, abated or refunded has been included in determining a rebate under Division VI paid to, or applied to a liability of, the constructive importer before the particular day on which the tax adjustment note is received and the rebate so paid or applied exceeds the rebate under that Division to which the constructive importer would have been entitled if the amount rebated, abated or refunded had not been paid, the constructive importer shall pay to the Receiver General under section 264 the excess as if it were an excess amount of the rebate under that Division paid to the constructive importer
(A) if the constructive importer is a registrant, on the day on or before which the constructive importer’s return for the reporting period that includes the particular day is required to be filed, and
(B) in any other case, on the last day of the calendar month immediately following the calendar month that includes the particular day.
Marginal note:Application
(8) Subject to subsection (9), subsections (2) to (7) apply for the purposes of this Part other than
(a) Division III except subsections 215.1(2) and (3) and 216(6) and (7);
(b) sections 220.07, 236.3 and 273.1;
(c) Schedule VII; and
(d) the Non-Taxable Imported Goods (GST/HST) Regulations and the Value of Imported Goods (GST/HST) Regulations.
Marginal note:Application
(9) Subsections (2) to (7) do not apply in respect of goods imported in circumstances in which subsection 169(2) applies or in which section 180 deems a person to have paid tax in respect of a supply of property equal to the tax under Division III in respect of the importation of goods.
Marginal note:Limitation period where retroactive agreement
(10) If a registrant and a constructive importer enter into an agreement under subsection (3) in respect of a previous importation of goods, the Minister has, despite section 298, until the day that is four years after the day on which the agreement under subsection (3) is entered into to make any assessment, reassessment or additional assessment for the purpose of taking into account an amount payable or remittable by the registrant or the constructive importer as a result of the application of subsection (4).
(2) Subsection (1) applies to goods imported on or after October 3, 2003 and to goods imported before that day that were not accounted for under section 32 of the Customs Act before that day.
Marginal note:1997, c. 10, s. 183(1)
14. (1) Paragraph (b) of the description of A in subsection 193(1) of the Act is replaced by the following:
(b) the tax that is or would, in the absence of section 167 or 167.11, be payable in respect of the particular taxable supply, and
(2) Subsection (1) is deemed to have come into force on June 28, 1999.
Marginal note:1997, c. 10, s. 191(1)
15. (1) The description of A in paragraph 201(b) of the Act is replaced by the following:
- A
- is the tax that would be payable by the registrant in respect of the vehicle if the registrant acquired the vehicle at the particular time
(i) where the registrant is bringing the vehicle into a participating province at the particular time, in that province, and
(ii) in any other case, in Canada
for consideration equal to the amount that would be deemed under paragraph 13(7)(g) or (h) of the Income Tax Act to be, for the purposes of section 13 of that Act, the capital cost to a taxpayer of a passenger vehicle in respect of which that paragraph applies if the formula in paragraph 7307(1)(b) of the Income Tax Regulations were read without reference to the description of B,
(2) Subsection (1) applies to any passenger vehicle that is acquired, imported or brought into a participating province after November 27, 2006 and to any passenger vehicle acquired, imported or brought into a participating province on or before that day unless an input tax credit in respect of the acquisition, importation or bringing in, as the case may be,
(a) was claimed pursuant to section 201 of the Act in a return filed under Division V of Part IX of the Act on or before that day; and
(b) was determined on the basis that the capital cost of the passenger vehicle for the purposes of the Income Tax Act included federal and provincial sales taxes.
Marginal note:1990, c. 45, s. 12(1)
16. (1) Subsection 202(1) of the Act is replaced by the following:
Marginal note:Improvement to passenger vehicle
202. (1) If the consideration paid or payable by a registrant for an improvement to a passenger vehicle of the registrant increases the cost to the registrant of the vehicle to an amount that exceeds the amount that would be deemed under paragraph 13(7)(g) or (h) of the Income Tax Act to be, for the purposes of section 13 of that Act, the capital cost to a taxpayer of a passenger vehicle in respect of which that paragraph applies if the formula in paragraph 7307(1)(b) of the Income Tax Regulations were read without reference to the description of B, the tax calculated on that excess shall not be included in determining an input tax credit of the registrant for any reporting period of the registrant.
(2) Subsection (1) applies to any improvement to a passenger vehicle that is acquired, imported or brought into a participating province after November 27, 2006 and to any improvement to a passenger vehicle acquired, imported or brought into a participating province on or before that day unless an input tax credit in respect of the acquisition, importation or bringing in, as the case may be,
(a) was claimed pursuant to section 202 of the Act in a return filed under Division V of Part IX of the Act on or before that day; and
(b) was determined on the basis that the capital cost of the passenger vehicle for the purposes of the Income Tax Act included federal and provincial sales taxes.
17. (1) Section 205 of the Act is amended by adding the following after subsection (4):
Marginal note:Acquisition of asset
(4.1) Despite section 197, subsection 193(1) applies to the supplier of a supply of capital personal property that is made under an agreement for a qualifying supply (as defined in subsection 167.11(1)), and subsections 206(4) and (5) apply to the recipient of the supply of capital personal property, with any modifications that the circumstances require, as if the property were real property if
(a) the supplier and the recipient are both registrants at the time the qualifying supply is made and they make a joint election referred to in subsection 167.11(2) in respect of the qualifying supply;
(b) in acquiring the property, the recipient is deemed under subsection 167.11(3) to have acquired the property for use exclusively in commercial activities of the recipient; and
(c) immediately after the earlier of the time the ownership of the property and the time the possession of the property is transferred to the recipient under the agreement for the qualifying supply, the property is for use by the recipient as capital property of the recipient but not exclusively in commercial activities of the recipient.
(2) Section 205 of the Act is amended by adding the following after subsection (5):
Marginal note:Acquisition of asset
(5.1) Despite section 197, subsection 206(2) applies to the recipient of a supply of capital personal property that is made under an agreement for a qualifying supply (as defined in subsection 167.11(1)), with any modifications that the circumstances require, as if the property were real property if
(a) the supplier and the recipient of the capital personal property are both registrants at the time the qualifying supply is made and they make a joint election referred to in subsection 167.11(2) in respect of the qualifying supply;
(b) in acquiring the property, the recipient is deemed under subsection 167.11(3) to have acquired the property for use exclusively in activities of the recipient that are not commercial activities; and
(c) immediately after the earlier of the time the ownership of the property and the time the possession of the property is transferred to the recipient under the agreement for the qualifying supply, the property is for use by the recipient as capital property of the recipient in commercial activities of the recipient.
(3) Subsections (1) and (2) are deemed to have come into force on June 28, 1999.
Marginal note:1993, c. 27, s. 81(1); 1997, c. 10, s. 41(3); 2000, c. 30, s. 44(2); 2005, c. 38, s. 105(2) and subpar. 145(2)(g)(v)
18. (1) Subsection 215.1(3) of the Act is replaced by the following:
Marginal note:Abatement or refund of tax as if it were duty
(3) Subject to section 263, sections 73, 74 and 76 of the Customs Act apply, with any modifications that the circumstances require, to an amount paid by a person as tax under this Division as though the amount were duties paid under that Act, where
(a) the amount was paid as tax on goods that were imported
(i) for consumption, use or supply otherwise than exclusively in the course of a commercial activity of the person, or
(ii) for consumption, use or supply in the course of a commercial activity of the person and the person was, at the time of the release of the goods, a small supplier who was not registered under Subdivision d of Division V;
(b) if the goods had been subject to duties paid under that Act, an abatement or refund of the whole or part of the duties could have been granted under section 73, 74 or 76 of that Act because of circumstances
(i) described in paragraph 73(a) or (b), any of paragraphs 74(1)(a) to (c) or subsection 76(1) of that Act, or
(ii) in which an error was made in the determination under subsection 58(2) of that Act of the value of the goods and the determination has not been the subject of a decision under any of sections 59 to 61 of that Act;
(c) the person has not been and is not entitled to be compensated under a warranty for loss suffered because of any of those circumstances by receiving a supply of replacement parts, or replacement property, that are goods included in section 5 of Schedule VII; and
(d) within two years after the day on which the amount was paid as tax under this Division, the person files with the Minister an application, in prescribed form containing prescribed information, for a rebate of the amount.
(2) Subsection (1) is deemed to have come into force on January 1, 1998, except that, in applying subsection 215.1(3) of the Act, as enacted by subsection (1), in determining rebates under that subsection before October 20, 2000, paragraph 215.1(3)(c) shall be read as follows:
(c) the person has not been and is not entitled to be compensated under a warranty for loss suffered because of any of those circumstances by receiving a supply of replacement parts that are goods included in section 5 of Schedule VII; and
Marginal note:1993, c. 27, s. 82(1); 2005, c. 38, s. 106
19. (1) Subsections 216(4) to (6) of the Act are replaced by the following:
Marginal note:Appeals of determination of tax status
(4) In applying the Customs Act to a determination of the tax status of goods, the references in that Act to the “Canadian International Trade Tribunal” and to the “Secretary of the Canadian International Trade Tribunal” shall be read as references to the “Tax Court of Canada” and to the “Registrar of the Tax Court of Canada”, respectively.
Marginal note:Application of Part IX and Tax Court of Canada Act
(5) The provisions of this Part and of the Tax Court of Canada Act that apply to an appeal taken under section 302 apply, with any modifications that the circumstances require, to an appeal taken under subsection 67(1) of the Customs Act from a decision of the President of the Canada Border Services Agency made under section 60 or 61 of that Act in a determination of the tax status of goods as if the decision of the President were a confirmation of an assessment or a reassessment made by the Minister under subsection 301(3) or (4) as a consequence of a notice of objection filed under subsection 301(1.1) by the person to whom the President is required to give notice under section 60 or 61 of the Customs Act, as the case may be, of the decision.
Marginal note:Rebate resulting from appraisal or re-appraisal
(6) If, because of an appraisal, a re-appraisal or a further re-appraisal of the value of goods or a determination of the tax status of goods, it is determined that the amount that was paid as tax under this Division on the goods exceeds the amount of tax that is required under this Division to be paid on the goods and a refund of the excess would be given under paragraph 59(3)(b) or 65(1)(b) of the Customs Act if the tax under this Division on the goods were a customs duty on the goods levied under the Customs Tariff, a rebate of the excess shall, subject to section 263, be paid to the person who paid the excess, and the provisions of the Customs Act that relate to the payment of such refunds and interest on such refunds apply, with any modifications that the circumstances require, as if the rebate of the excess were a refund of duty.
(2) Subsection (1) is deemed to have come into force on January 1, 1998, except that, before December 12, 2005, subsection 216(5) of the Act, as enacted by subsection (1), shall be read as follows:
Marginal note:Application of Part IX and Tax Court of Canada Act
(5) The provisions of this Part and of the Tax Court of Canada Act that apply to an appeal taken under section 302 apply, with any modifications that the circumstances require, to an appeal taken under subsection 67(1) of the Customs Act from a decision of the Commissioner made under section 60 or 61 of that Act in a determination of the tax status of goods as if the decision of the Commissioner were a confirmation of an assessment or a reassessment made by the Minister under subsection 301(3) or (4) as a consequence of a notice of objection filed under subsection 301(1.1) by the person to whom the Commissioner is required to give notice under section 60 or 61 of the Customs Act, as the case may be, of the decision.
20. (1) Section 217 of the Act is amended by adding the following after paragraph (b.1):
(b.11) a particular taxable supply (other than a zero-rated supply) of property by way of lease, licence or similar arrangement that is deemed under subsection 143(1) to be made outside Canada to a recipient (in this paragraph referred to as the “lessee”) who is resident in Canada, if
(i) a previous supply of the property to the lessee was made by way of lease, licence or similar arrangement (in this paragraph referred to as the “first lease”) that was deemed under subsection 178.8(4) to be made in Canada,
(ii) the agreement for the particular taxable supply is an agreement (in this subparagraph referred to as a “subsequent lease”) that results from the assignment of, or that succeeds, upon the renewal or variation of, the first lease or a subsequent lease, and
(iii) the lessee is not a registrant who is acquiring the property for consumption, use or supply exclusively in the course of commercial activities of the lessee;
(2) Subsection (1) applies to any supply of property referred to in paragraph 217(b.11) of the Act as a particular taxable supply if the recipient of that supply previously received a supply of the property by way of lease, licence or similar arrangement that was deemed under subsection 178.8(4) of the Act to be made in Canada.
Marginal note:1997, c. 10, s. 204(1)
21. (1) Section 220.01 of the Act is replaced by the following:
Marginal note:Definitions
220.01 The following definitions apply in this Division.
“provincial authority”
« autorité provinciale »
“provincial authority” means any department or agency of a province that is empowered under the laws of that province to collect, at the time when a specified motor vehicle is registered in the province, any specified provincial tax imposed in respect of the specified motor vehicle.
“specified provincial tax”
« taxe provinciale déterminée »
“specified provincial tax” means
(a) in the case of a vehicle registered in the province of Nova Scotia, the tax imposed under Part IIA of the Revenue Act, S.N.S. 1995-96, c. 17, as amended from time to time;
(b) in the case of a vehicle registered in the province of New Brunswick, the tax imposed under Part V of the Harmonized Sales Tax Act, S.N.B. 1997, c. H-1.01, as amended from time to time; and
(c) in the case of a vehicle registered in the province of Newfoundland and Labrador, the tax imposed under the Retail Sales Tax Act, R.S.N.L. 1990, c. R-15, as amended from time to time.
“specified value”
« valeur déterminée »
“specified value”, in respect of a specified motor vehicle that a person is required to register under the laws of a participating province relating to the registration of motor vehicles, means the value that would be attributed to the specified motor vehicle by the provincial authority for that province for the purpose of calculating the specified provincial tax payable if, at the time of registration, that tax were payable in respect of the specified motor vehicle.
“tangible personal property”
« bien meuble corporel »
“tangible personal property” includes a mobile home that is not affixed to land and a floating home.
(2) Subsection (1) is deemed to have come into force on April 1, 1997.
Marginal note:1997, c. 10, s. 204(1)
22. (1) Paragraph (a) of the description of B in subsection 220.05(1) of the Act is replaced by the following:
(a) where the property is a specified motor vehicle that the person is required to register under the laws of the particular participating province relating to the registration of motor vehicles, the specified value,
(2) Subsection (1) is deemed to have come into force on April 1, 1997.
Marginal note:1997, c. 10, s. 204(1)
23. (1) Paragraph 220.07(3)(a) of the Act is replaced by the following:
(a) in the case of a specified motor vehicle that a person is required to register under the laws of the province relating to the registration of motor vehicles, the specified value;
(2) Subsection (1) is deemed to have come into force on April 1, 1997.
Marginal note:1997, c. 10, s. 204(1)
24. (1) Subsection 220.09(2) of the Act is replaced by the following:
Marginal note:Exception
(2) Despite subsection (1), if the tax under section 220.05, 220.06 or 220.07 is payable to Her Majesty in right of Canada by a person in respect of a specified motor vehicle that the person is required to register under the laws of a participating province relating to the registration of motor vehicles, the person shall pay the tax to the provincial authority in its capacity as agent of Her Majesty in right of Canada at the earlier of the time at which the person registers the vehicle and the time at or before which the person is required to register it, and
(a) if the person is a registrant, the person is not required to report the tax in a return; and
(b) if the person is not a registrant, the person is not required to file a return in respect of the tax.
(2) Subsection (1) is deemed to have come into force on April 1, 1997.
Marginal note:2000, c. 30, s. 49(1)
25. (1) Paragraph 221.1(2)(a) of the Act is replaced by the following:
(a) that at least 90% of the total of all consideration for supplies to the person of items of inventory acquired in Canada by the person in the 12-month period commencing immediately after the particular day will be attributable to supplies that would be included in section 1 of that Part if it were read without reference to paragraph (e) of that section; and
(2) Subsection (1) is deemed to have come into force on January 1, 2001.
Marginal note:1997, c. 10, s. 45(1)
26. (1) Paragraph (c) of the description of A in subsection 225.1(2) of the Act is replaced by the following:
(c) the total of all amounts each of which is an amount in respect of supplies of real property or capital property made by way of sale by or to the charity that is required under subsection 231(3) or 232(3) to be added in determining the net tax for the particular reporting period, and
Marginal note:2000, c. 30, s. 53(7)
(2) Paragraph (b.1) of the description of B in subsection 225.1(2) of the Act is repealed.
(3) Subsection (1) applies for the purpose of determining the net tax of a charity for reporting periods beginning after 1996.
(4) Subsection (2) applies for the purpose of determining the net tax of a charity for reporting periods beginning after the last reporting period of the charity that ends within four years after the reporting period of the charity that includes July 15, 2002.
Marginal note:1997, c. 10, s. 208(1)
27. (1) Paragraph 225.2(5)(c) of the Act is replaced by the following:
(c) be filed by the financial institution with the Minister in prescribed manner on or before
(i) the day on or before which a return under Division V for the reporting period of the financial institution in which the election is to become effective is required to be filed, or
(ii) any later day that the Minister may allow.
(2) Subsection (1) is deemed to have come into force on October 3, 2003.
Marginal note:1993, c. 27, s. 89(1)
28. (1) The portion of subsection 226(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Separate supply of beverage and container
(2) For the purposes of this section, if a person supplies a beverage in a returnable container in circumstances in which the person typically does not unseal the container,
Marginal note:1993, c. 27, s. 89(1); 1997, c. 10, s. 209
(2) Section 226 of the Act, as amended by subsection (1), is replaced by the following:
Marginal note:Definitions
226. (1) The following definitions apply in this section.
“applicable legislated amount”
« montant obligatoire applicable »
“applicable legislated amount” in a province for a returnable container of a particular class means
(a) except if paragraph (b) applies, the legislated consumers’ refund in the province for a returnable container of that class; or
(b) if, under an Act of the legislature of the province in respect of recycling, a legislated consumers’ refund for a returnable container of that class is specified and another amount (in this paragraph referred to as the “recycler’s reimbursement”) is specified as the amount to be paid, otherwise than specifically in respect of the handling of the container, for a used and empty returnable container of that class when supplied by a person who, on acquiring it used and empty, paid an amount as the legislated consumers’ refund for the container, but no amount is specified as the amount, or the minimum amount, to be charged by a distributor in respect of the supply of a filled and sealed returnable container of that class, the recycler’s reimbursement.
“consumers’ recycler”
« récupérateur »
“consumers’ recycler”, in respect of a returnable container of a particular class in a province, means a person who, in the ordinary course of their business, acquires in the province used and empty returnable containers of that class from consumers for consideration.
“distributor”
« distributeur »
“distributor” of a returnable container of a particular class in a province means a person who supplies beverages in filled and sealed returnable containers of that class in the province and charges a returnable container charge in respect of the returnable containers.
“legislated consumers’ refund”
« remboursement obligatoire aux consommateurs »
“legislated consumers’ refund” in a province for a returnable container of a particular class means the amount, or the minimum amount, that, under an Act of the legislature of the province in respect of recycling, must be paid in certain circumstances for a used and empty returnable container of that class to a person of a class that includes consumers.
“recycler”
« recycleur »
“recycler” of returnable containers of a particular class in a province means
(a) a person who, in the ordinary course of their business, acquires used and empty returnable containers of that class (or the material resulting from their compaction) in the province for consideration; or
(b) a person who, in the ordinary course of their business, pays consideration to a person referred to in paragraph (a) in compensation for that person acquiring used and empty returnable containers of that class and paying consideration for those containers.
“recycling”
« recyclage »
“recycling”, in respect of a province, means
(a) the return, redemption, reuse, destruction or disposal of
(i) returnable containers in the province, or
(ii) returnable containers in the province and other goods; or
(b) the control or prevention of waste or the protection of the environment.
“refund”
« montant remboursé »
“refund”, at any time in a province, means
(a) in relation to a returnable container of a particular class that is supplied used and empty, or that is filled with a beverage that is supplied, at that time in the province,
(i) the greatest of
(A) if there is an applicable legislated amount in the province for returnable containers of that class, that amount,
(B) if the supplier is a consumers’ recycler who, in the ordinary course of their business, sells the beverage in returnable containers of that class in the province and the usual returnable container charge that is charged by the supplier when so selling the beverage is not less than the amount (in this clause referred to as the “usual refund”) that is, at that time, the usual consideration that the supplier pays for supplies in the province of used and empty returnable containers of that class from consumers, the usual refund,
(C) if the supplier is a consumers’ recycler who does not, in the ordinary course of their business, sell the beverage in returnable containers of that class in the province, the amount that is, at that time, the usual consideration that the supplier pays for supplies in the province of used and empty returnable containers of that class from consumers, and
(D) if, at that time,
(I) in accordance with established industry practice, suppliers charge a common amount as the usual returnable container charge when selling the beverage in returnable containers of that class in the province, and
(II) it is not exceptional for the usual amount paid to consumers by consumers’ recyclers as consideration for supplies in the province of used and empty returnable containers of that class to vary among consumers’ recyclers,
the greatest of those usual amounts paid to consumers not exceeding the usual returnable container charge, and
(ii) if none of clauses (i)(A) to (D) applies, the portion of the amount that is, at that time, the consideration paid, in the greatest number of cases, by consumers’ recyclers for supplies in the province of used and empty returnable containers of that class from consumers that does not exceed the amount that is, at that time, the returnable container charge charged in the greatest number of cases by suppliers when selling the beverage in returnable containers of that class in the province; and
(b) in relation to a returnable container of a particular class in respect of which a supply is made at that time in the province of a service to which subsection (7) applies,
(i) if the supplier is a consumers’ recycler, the amount that is, at that time, the usual consideration that the supplier pays for supplies in the province of used and empty returnable containers of that class from consumers, and
(ii) in any other case, the amount that is, at that time, the consideration paid, in the greatest number of cases, by consumers’ recyclers for supplies in the province of used and empty returnable containers of that class from consumers.
“returnable container”
« contenant consigné »
“returnable container” in a province means a beverage container of a class of containers that
(a) are ordinarily acquired by consumers;
(b) when acquired by consumers, are ordinarily filled and sealed; and
(c) are ordinarily supplied in the province used and empty by consumers for consideration.
“returnable container charge”
« droit sur contenant consigné »
“returnable container charge”, at any time, means
(a) in relation to a returnable container of a particular class containing a beverage that is supplied at that time in a province, the total of all amounts, each of which is charged by the supplier
(i) as an amount in respect of recycling in the province,
(ii) for the purpose of recovering an amount equivalent to the amount referred to in subparagraph (i) that was charged to the supplier, or
(iii) for the purpose of recovering an amount equivalent to the amount that was charged to the supplier by another supplier for the purpose referred to in subparagraph (ii) or for the purpose referred to in this subparagraph;
(b) in relation to a filled and sealed returnable container containing a beverage that is held by a person at that time for consumption, use or supply in a province,
(i) if the beverage is held at that time by the person for the purpose of making a supply in the province of the beverage in the container, the amount that the person can reasonably expect will be determined under paragraph (a) in respect of the container when the beverage is so supplied, and
(ii) in any other case, the amount in respect of the container that would reasonably be expected to be determined under paragraph (a) if the beverage were supplied at that time to the person in the province; and
(c) in relation to a returnable container of a particular class in respect of which a recycler of returnable containers of that class makes at that time a supply in a province of a service in respect of recycling to a distributor, or a recycler, of returnable containers of that class,
(i) if an Act of the legislature of the province in respect of recycling specifies an amount, or a minimum amount, that must be collected from, or paid by, a recipient in certain circumstances for the supply of a beverage in a returnable container of that class, that amount, and
(ii) in any other case, the amount in respect of the container that would reasonably be expected to be determined under paragraph (a) if the container were filled and sealed and contained a beverage that was being supplied at that time in the province.
“specified beverage retailer”
« vendeur au détail déterminé »
“specified beverage retailer”, in respect of a returnable container of a particular class, means a registrant
(a) who, in the ordinary course of the registrant’s business, makes supplies (in this definition referred to as “specified supplies”) of beverages in returnable containers of that class to consumers in circumstances in which the registrant typically does not unseal the containers; and
(b) whose circumstance is not that all or substantially all of the supplies of used and empty returnable containers of that class that are gathered by the registrant at establishments at which the registrant makes specified supplies are of containers that the registrant acquired used and empty for consideration.
Marginal note:Taxable supply of beverage in returnable container
(2) Subject to subsection (3), for the purposes of this Part, if a supplier makes a particular taxable supply (other than a zero-rated supply) in a province of a beverage in a filled and sealed returnable container of a particular class in circumstances in which the supplier typically does not unseal the container, and the supplier charges the recipient a returnable container charge in respect of the container,
(a) the consideration for the particular supply is deemed to be equal to the amount determined by the formula
A - B
where
- A
- is the consideration for the particular supply as otherwise determined for the purposes of this Part, and
- B
- is the returnable container charge;
(b) if the returnable container charge exceeds the refund for the container, the supplier is deemed to have made to the recipient, at the time at which the consideration for the particular supply becomes due or would, in the absence of section 156, have become due, a taxable supply in the province of a service in respect of the container for consideration, separate from the consideration for the beverage, that becomes due at that time and that is, subject to that section, equal to
(i) except if subparagraph (ii) applies, the amount by which the returnable container charge exceeds the refund for the container, or
(ii) if an Act of the legislature of the province is prescribed for the purposes of this paragraph,
(A) if that province is a participating province and that Act, or regulations made under it, specify an amount in respect of a returnable container of that class that must be equal to or not less than the total (in this clause referred to as the “tax-included charge”) of the returnable container charge to be charged in respect of the particular supply or a previous supply of the beverage in the container and any applicable tax under this Part, the amount determined by the formula
A × [100/(100 + B)]
where
- A
- is the amount by which the tax-included charge exceeds the refund for the container, and
- B
- is the total of the rate of tax under subsection 165(1) and the tax rate for the province, and
(B) in any other case, the amount determined in prescribed manner; and
(c) the recipient is deemed to have acquired that service for the same purpose as that for which the recipient acquired the beverage.
Marginal note:Exception for specified beverage retailer
(3) Subsection (2) does not apply to a supply by a registrant of a beverage in a returnable container in respect of which the registrant is a specified beverage retailer if the registrant elects not to deduct the amount of the returnable container charge in respect of the container in determining the consideration for the supply for the purposes of this Part.
Marginal note:Supply of used container
(4) If a person makes a particular supply in a province of a used and empty returnable container (or the material resulting from its compaction),
(a) the value of the consideration for the particular supply is deemed, for the purposes of this Part other than this section, to be nil; and
(b) if the consideration exceeds the refund for the container, the supplier is deemed, for the purposes of this Part, to have made to the recipient, at the time at which the consideration for the particular supply becomes due or would, in the absence of section 156, have become due, a taxable supply in the province of a service in respect of the container for consideration, that is separate from the consideration for the particular supply, equal to the excess amount.
Marginal note:Exception
(5) Subsection (4) does not apply
(a) for the purposes of section 5 of Part V.1 of Schedule V or section 10 of Part VI of that Schedule; or
(b) to a supply made in a province of a used and empty returnable container of a particular class (or the material resulting from its compaction) if the usual business practice of the recipient is to pay consideration for supplies in the province of used and empty returnable containers of that class (or the material resulting from their compaction) that is determined based on the value of the material from which the containers are made or is otherwise determined based neither on the amount of the refund for the returnable containers nor on the amount of the returnable container charge in respect of filled and sealed returnable containers of that class containing beverages that are supplied in the province.
Marginal note:Supply of recycling service to distributor
(6) For the purposes of this Part (other than section 5 of Part V.1 of Schedule V and section 10 of Part VI of that Schedule), if
(a) a recycler of returnable containers of a particular class makes a particular taxable supply in a province of a service in respect of the recycling of returnable containers of that class to a distributor of returnable containers of that class who is not a recycler who supplies such services to other distributors of returnable containers of that class,
(b) the recycler does not supply the containers to the distributor, and
(c) the consideration for the particular supply is based in whole or in part on the amount in that province of the returnable container charge in respect of returnable containers of that class or on an amount that a consumer could reasonably expect to receive for a used and empty returnable container of that class,
the value of the consideration for the particular supply is deemed to be equal to the amount determined by the formula
A - B
where
- A
- is the consideration for the particular supply as otherwise determined for the purposes of this Part; and
- B
- is the total of all amounts each of which is the returnable container charge in that province for a returnable container in respect of which that consideration is paid or payable.
Marginal note:Supply between recyclers
(7) For the purposes of this Part, if a recycler of returnable containers of a particular class makes a particular taxable supply in a province of a service in respect of the recycling of returnable containers of that class to another recycler of returnable containers of that class without supplying the containers to the other recycler and the consideration for the particular supply is based in whole or in part on the amount in that province of the refund, or the returnable container charge, in respect of returnable containers of that class, the value of the consideration for the particular supply is deemed to be equal to the amount determined by the formula
A - B
where
- A
- is the consideration for the particular supply as otherwise determined for the purposes of this Part; and
- B
- is the total of all amounts each of which is the refund in that province for a returnable container in respect of which that consideration is paid or payable.
Marginal note:Special rules in the case of prescribed provincial Act
(8) Subject to subsection (9), if a registrant acquires, in a province in which an Act prescribed for the purposes of paragraph (2)(b) applies, a beverage in a returnable container for the purpose of making in that province a taxable supply of the beverage in the container in circumstances in which the registrant will charge a returnable container charge in respect of the container and be required to collect tax in respect of the supply,
(a) if a supply of a service in respect of the container is deemed under that paragraph to have been made to the registrant, the tax in respect of the supply of the service shall not be included in determining an input tax credit of the registrant; and
(b) if the registrant makes a supply in that province of the beverage in circumstances in which the registrant is deemed under that paragraph to have made a supply of a service in respect of the container, neither the consideration for the supply of that service nor any tax in respect of that supply shall be included in determining the net tax of the registrant.
Marginal note:Non-application of special rules
(9) If a registrant is deemed under paragraph (2)(b) to have received or made at any time a supply in a province of a service in respect of a returnable container of a particular class containing a particular beverage, paragraph (8)(a) or (b), as the case may be, does not apply in respect of the supply if
(a) the usual business practice of the registrant at that time is to charge, when making supplies in the province of the particular beverage contained in returnable containers of that class, a returnable container charge that is not equal to the returnable container charge that the registrant pays in respect of returnable containers of that class containing the particular beverage when supplies of the beverage are made to the registrant in the province; or
(b) the registrant is a specified beverage retailer in respect of the container and elects under subsection (3) not to deduct the amount of the returnable container charge charged by the registrant in determining the consideration for the supply by the registrant of the particular beverage in the returnable container.
Marginal note:Change in practice — beginning to apply special rules
(10) If, after changing their usual business practice with respect to supplies of a particular beverage in returnable containers of a particular class from the practice described in subsection (9), a registrant makes, at a particular time, in a province in which an Act prescribed for the purposes of paragraph (2)(b) applies, a supply of the particular beverage in a returnable container of that class in circumstances in which the registrant is deemed under that paragraph to have made a supply of a service in respect of the container and that supply of the beverage is the first supply by the registrant of the particular beverage in a returnable container of that class in respect of which paragraph (8)(b) applies since the change in practice, the registrant is deemed, for the purposes of this Part,
(a) to have made, at the particular time, a taxable supply of a service in respect of each filled and sealed returnable container of that class containing the particular beverage
(i) that was, immediately before the particular time, held by the registrant for the purpose of making a taxable supply of the particular beverage in the province in circumstances in which the registrant would be deemed under paragraph (2)(b) to have made a supply of a service in respect of the container, and
(ii) that was last supplied to the registrant in the province in circumstances in which the registrant was deemed under that paragraph to have received a supply of a service in respect of which the registrant was entitled to claim an input tax credit or would have been so entitled if tax would, in the absence of section 156 or 167, have been payable in respect of that supply of the service; and
(b) to have collected, at the particular time, tax in respect of each supply of a service in respect of a returnable container that is deemed under paragraph (a) to have been made by the registrant equal to the tax that was payable or would, in the absence of section 156 or 167, have been payable by the registrant in respect of the supply to the registrant of the service referred to in subparagraph (a)(ii) in respect of that container.
Marginal note:Change in practice — ceasing to apply special rules
(11) If, after changing their usual business practice with respect to supplies of a particular beverage in returnable containers of a particular class to the practice described in subsection (9), a registrant makes, at a particular time, in a province in which an Act prescribed for the purposes of paragraph (2)(b) applies, a supply of the particular beverage in a returnable container of that class in circumstances in which the registrant is deemed under that paragraph to have made a supply of a service in respect of the container and the supply is the first supply by the registrant of the particular beverage in a returnable container of that class in respect of which paragraph (8)(b) would have applied but for the change in practice, the registrant is deemed, for the purposes of this Part,
(a) to have received, at the particular time, for use exclusively in a commercial activity of the registrant, a taxable supply of a service in respect of each filled and sealed returnable container of that class containing the particular beverage
(i) that was, immediately before the particular time, held by the registrant for the purpose of making a taxable supply of the particular beverage in the province in circumstances in which the registrant would be deemed under paragraph (2)(b) to have made a supply of a service in respect of the container, and
(ii) that was last supplied to the registrant in the province in circumstances in which the registrant was deemed under that paragraph to have received a supply of a service in respect of which, owing solely to paragraph (8)(a), the registrant was not entitled to claim an input tax credit or would not have been so entitled if tax would, in the absence of section 156 or 167, have been payable in respect of that supply of the service; and
(b) to have paid, at the particular time, tax in respect of each supply of a service in respect of a returnable container that is deemed under paragraph (a) to have been received by the registrant equal to the tax that was or would, in the absence of section 156 or 167, have been payable by the registrant in respect of the supply to the registrant of the service referred to in subparagraph (a)(ii) in respect of that container.
Marginal note:Ceasing to be registrant while special rules apply
(12) If a person who makes supplies of a particular beverage in filled and sealed returnable containers of a particular class in a province in which an Act prescribed for the purposes of paragraph (2)(b) applies ceases at any time to be a registrant, the person is deemed, for the purposes of this Part,
(a) to have received, immediately before that time, a supply of a service in respect of each filled and sealed returnable container of that class containing the particular beverage that was held by the person immediately before that time and in respect of which paragraph (8)(b) would have applied if the particular beverage in the container had been supplied by the person immediately before that time in circumstances in which the person would have been deemed under paragraph (2)(b) to have made a supply of a service in respect of the container; and
(b) to have paid, immediately before that time, tax in respect of each supply of a service in respect of a returnable container that is deemed under paragraph (a) to have been received by the person equal to the tax that was payable or would, in the absence of section 156 or 167, have been payable by the person in respect of the supply to the person of the service that was deemed under paragraph (2)(b) to have been made to the person when the person acquired the particular beverage.
Marginal note:Supplies under s. 167
(13) For the purposes of this Part, if a registrant makes a taxable supply of a beverage in a filled and sealed returnable container under an agreement for the supply of a business or part of a business in circumstances in which subsection 167(1.1) applies to the supply and the registrant is deemed under subsection (2) to have made a supply of a service in respect of the container, the supply of the service is deemed to have been made under the agreement and not to be a service referred to in subparagraph 167(1.1)(a)(i).
Marginal note:Deemed tax collected where s. 156 or 167 applies
(14) For the purposes of this Part, if
(a) a supplier makes a supply in a province of a beverage in a filled and sealed returnable container to a registrant and is deemed under paragraph (2)(b) to have made at any time a supply to the registrant of a service in respect of the container,
(b) because of section 156 or 167, no tax is payable in respect of the supplies to the registrant of the beverage and of the service,
(c) by reason only of paragraph (8)(a), the registrant would not have been entitled to claim an input tax credit in respect of the tax that would, in the absence of section 156 or 167, have been payable in respect of the supply of the service, and
(d) paragraph (8)(b) does not apply in respect of the supplies to the registrant of the beverage and the service in determining the net tax of the supplier,
the registrant is deemed to have made, at that time, a particular taxable supply in the province of a service in respect of the container for consideration equal to the amount that would, without reference to section 156, be the value of the consideration for the supply of the service that is deemed under paragraph (2)(b) to have been made to the registrant in respect of the container and the registrant is deemed to have collected at that time tax in respect of the particular supply calculated on that consideration.
Marginal note:Deemed tax paid where s. 156 or 167 applies
(15) For the purposes of this Part, if
(a) a supplier makes a supply in a province of a beverage in a filled and sealed returnable container to a registrant and is deemed under paragraph (2)(b) to have made at any time a supply to the registrant of a service in respect of the container,
(b) because of section 156 or 167, no tax is payable in respect of the supplies to the registrant of the beverage and of the service,
(c) paragraph (8)(a) would not have applied to the registrant in respect of the tax that would, in the absence of section 156 or 167, have been payable in respect of the supply of the service, and
(d) paragraph (8)(b) applies in respect of the supplies by the supplier to the registrant of the beverage and the service in determining the net tax of the supplier,
the registrant is deemed to have received, at that time, a particular taxable supply in the province of a service in respect of the container for consideration equal to the amount that would, without reference to section 156, be the value of the consideration for the supply of the service that is deemed under paragraph (2)(b) to have been made to the registrant in respect of the container, the registrant is deemed to have paid, at that time, tax in respect of the particular supply calculated on that consideration and the registrant is deemed to have acquired that service for the same purpose as that for which the registrant acquired the beverage.
Marginal note:Fair market value of beverage in filled and sealed container
(16) For the purposes of this Part, if a beverage in a filled and sealed returnable container in respect of which there is a returnable container charge is held at any time by a person for consumption, use or supply in a province in the course of commercial activities of the person, the fair market value of the beverage at that time is deemed not to include the amount that would be determined as the refund for the container if the beverage were supplied in the province by the person at that time in the filled and sealed container.
Marginal note:Basic tax content of beverage in filled and sealed container
(17) The basic tax content at any time of a beverage in a filled and sealed returnable container that is held at that time by a person shall be determined as if the tax payable, if any, in respect of the last supply of a service in respect of the container that was deemed under subsection (2) or (15) to have been made to the person, and the tax payable, if any, in respect of the last supply of a service in respect of the container that was deemed under subsection (14) to have been made by the person, were additional tax payable by the person in respect of the last acquisition of the beverage by the person.
Marginal note:Addition to net tax
(18) If
(a) a registrant makes a supply in a province of a beverage in a returnable container of a particular class in respect of which the registrant is a specified beverage retailer,
(b) paragraph (2)(a) applies in determining, for the purposes of this Part, the consideration for the supply, and
(c) the registrant makes at any time a supply in the province of that container used and empty for consideration without having acquired it used and empty for consideration,
the registrant shall, in determining the net tax of the registrant for the reporting period that includes that time, add the amount determined by the formula
A × B
where
- A
- is
(i) if the province is a participating province, the total of the rate of tax under subsection 165(1) and the tax rate for the province, and
(ii) in any other case, the rate of tax under subsection 165(1); and
- B
- is the refund for a returnable container of that class in the province.
(3) Subsection (1) applies to any supply of a beverage in a returnable container made after 1995 and before May 2002, unless
(a) the supplier included, in determining their net tax, a particular amount as or on account of tax that was calculated on the total amount (excluding any tax prescribed for the purposes of section 154 of the Act or any gratuity) paid or payable by the recipient in respect of the beverage and the container and, before February 8, 2002, the Minister of National Revenue received an application for a rebate under subsection 261(1) of the Act of the portion of the particular amount attributed to the container; or
(b) the supplier included, in determining their net tax as reported in a return under Division V of Part IX of the Act received by the Minister of National Revenue before February 8, 2002, an amount as or on account of tax in respect of the supply of the beverage and the container that was calculated on an amount less than the total amount (excluding any tax prescribed for the purposes of section 154 of the Act or any gratuity) paid or payable by the recipient in respect of the beverage and the container.
(4) Subsection (2) is deemed to have come into force on May 1, 2002 and applies to supplies for which consideration becomes due on or after that day or is paid on or after that day without having become due, except that
(a) for the purposes of applying sections 176 and 226.1 of the Act to supplies of returnable containers for which consideration becomes due on or before July 15, 2002 or is paid on or before that day without having become due, section 226 of the Act shall be read as if subsection (2) had not come into force; and
(b) subsections 226(4), (6) and (7) of the Act, as enacted by subsection (2), do not apply to supplies for which consideration (determined without reference to those subsections) is paid or becomes due on or before July 15, 2002.
29. (1) The Act is amended by adding the following after section 226:
Marginal note:Non-application of exemption
226.01 Section 5.1 of Part V.1 of Schedule V and section 6 of Part VI of that Schedule do not apply to a supply of a used and empty returnable container (as defined in section 226) or to a supply of the material resulting from its compaction.
(2) Section 226.01 of the Act, as enacted by subsection (1), is repealed.
(3) Subsection (1) applies to supplies for which consideration becomes due after 1996 or is paid after 1996 without having become due.
(4) Subsection (2) applies to supplies for which consideration becomes due after July 15, 2002 or is paid after that day without having become due.
Marginal note:2000, c. 30, s. 55(1)
30. (1) The portion of subsection 226.1(1) of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:Déduction pour organisme de bienfaisance
226.1 (1) Un organisme de bienfaisance peut déduire un montant dans le calcul de sa taxe nette pour sa période de déclaration au cours de laquelle la fourniture donnée visée à l’alinéa a) est effectuée ou pour une période de déclaration postérieure si les conditions suivantes sont réunies :
Marginal note:2000, c. 30, s. 55(1)
(2) The portion of subsection 226.1(1) of the English version of the Act after paragraph (e) and before the formula is replaced by the following:
the charity may, in determining the net tax for its reporting period in which the particular supply is made or for a subsequent reporting period, deduct the amount determined by the formula
Marginal note:2000, c. 30, s. 55(1)
(3) Section 226.1 of the Act, as amended by subsections (1) and (2), is repealed.
(4) Subsections (1) and (2) apply to any supply of a container made to a charity after March 1998.
(5) Subsection (3) applies to supplies for which consideration becomes due after July 15, 2002 or is paid after that day without having become due.
Marginal note:1997, c. 10, s. 50(1)
31. (1) Subsection 231(1) of the Act is replaced by the following:
Marginal note:Bad debt — deduction from net tax
231. (1) If a supplier has made a taxable supply (other than a zero-rated supply) for consideration to a recipient with whom the supplier was dealing at arm’s length, it is established that all or a part of the total of the consideration and tax payable in respect of the supply has become a bad debt and the supplier at any time writes off the bad debt in the supplier’s books of account, the reporting entity for the supply may, in determining the reporting entity’s net tax for the reporting period that includes that time or for a subsequent reporting period, deduct the amount determined by the formula
A × B/C
where
- A
- is the tax in respect of the supply;
- B
- is the total of the consideration, tax and applicable provincial tax remaining unpaid in respect of the supply that was written off at that time as a bad debt; and
- C
- is the total of the consideration, tax and applicable provincial tax in respect of the supply.
Marginal note:Reporting and remittance conditions
(1.1) A reporting entity is not entitled to deduct an amount under subsection (1) in respect of a supply unless
(a) the tax collectible in respect of the supply is included in determining the amount of net tax reported in the reporting entity’s return under this Division for the reporting period in which the tax became collectible; and
(b) all net tax remittable, if any, as reported in that return is remitted.
Marginal note:1997, c. 10, s. 50(1); 2000, c. 30, ss. 58(2) and (3)
(2) Subsections 231(3) and (4) of the Act are replaced by the following:
Marginal note:Recovery of bad debt
(3) If all or part of a bad debt in respect of which a person has made a deduction under this section is recovered at any time, the person shall, in determining the person’s net tax for the reporting period that includes that time, add the amount determined by the formula
A × B/C
where
- A
- is the amount of the bad debt recovered at that time;
- B
- is the tax in respect of the supply to which the bad debt relates; and
- C
- is the total of the consideration, tax and applicable provincial tax in respect of the supply.
Marginal note:Limitation period
(4) A person may not claim a deduction under this section in respect of a bad debt relating to a supply unless the deduction is claimed in a return under this Division filed within four years after the day on or before which a return of the person was required to be filed for the reporting period in which the supplier has written off the bad debt in its books of account.
Marginal note:Definitions
(5) The following definitions apply in this section.
“applicable provincial tax”
« taxe provinciale applicable »
“applicable provincial tax”, in respect of a supply, means any amount that can reasonably be attributed to a tax, duty or fee imposed under an Act of the legislature of a province in respect of the supply that is a prescribed tax, duty or fee for the purposes of section 154.
“reporting entity”
« déclarant »
“reporting entity” for a supply means
(a) if an election has been made under subsection 177(1.1) in respect of the supply, the person who is required, under that subsection, to include the tax collectible in respect of the supply in determining the person’s net tax; and
(b) in any other case, the supplier.
(3) Subsection (1) applies to supplies made after April 23, 1996.
(4) Subsections 231(3) and (4) of the Act, as enacted by subsection (2), apply to bad debts relating to supplies made after April 23, 1996 except that the reference to “supplier” in subsection 231(4) of the Act, as enacted by subsection (2), shall be read as a reference to “person” in its application to a deduction claimed by a person under subsection 231(2) of the Act as that subsection read in relation to an account receivable transferred to the person before 2000.
(5) Subsection 231(5) of the Act, as enacted by subsection (2), is deemed to have come into force on April 24, 1996.
(6) Despite subsection 231(4) of the Act, as enacted by subsection (2), if a supplier and a registrant acting as an agent of the supplier have jointly made an election under subsection 177(1.1) of the Act in respect of a supply made before December 20, 2002 and the supplier wrote off a bad debt relating to the supply in the supplier’s books of account at any time before December 21, 2002, the registrant may claim a deduction under subsection 231(1) of the Act, as enacted by subsection (1), in respect of the bad debt written off at that time in a return of the registrant under Division V of Part IX of the Act that is filed with the Minister of National Revenue on or before the later of the day that is one year after December 20, 2002 and the day that is four years after the day on or before which the registrant’s return under that Division for the registrant’s reporting period in which the bad debt was written off is required to be filed.
Marginal note:2000, c. 30, s. 63(2)
32. (1) The portion of subsection 235(1) of the Act before the formula is replaced by the following:
Marginal note:Net tax where passenger vehicle leased
235. (1) If, in a taxation year of a registrant, tax becomes payable, or is paid without having become payable, by the registrant in respect of supplies of a passenger vehicle made under a lease and
(a) the total of the consideration for the supplies that would be deductible in computing the registrant’s income for the year for the purposes of the Income Tax Act, if the registrant were a taxpayer under that Act and that Act were read without reference to section 67.3,
exceeds
(b) the amount in respect of that consideration that would be deductible in computing the registrant’s income for the year for the purposes of the Income Tax Act, if the registrant were a taxpayer under that Act and the formulae in paragraphs 7307(1)(b) and (3)(b) of the Income Tax Regulations were read without reference to the description of B,
there shall be added in determining the net tax for the appropriate reporting period of the registrant an amount determined by the formula
(2) Subsection (1) applies in respect of reporting periods that end after November 27, 2006 and in respect of any reporting period that ends on or before that day unless
(a) an amount was added pursuant to section 235 of the Act in determining the net tax for the reporting period;
(b) the amount was determined on the basis that the capital cost of the passenger vehicle for the purposes of the Income Tax Act included federal and provincial sales taxes; and
(c) the return for the reporting period was filed under Division V of Part IX of the Act on or before that day.
33. (1) Subsection 240(3) of the Act is amended by striking out the word “or” at the end of paragraph (c), by adding the word “or” at the end of paragraph (d) and by adding the following after paragraph (d):
(e) is the recipient of a qualifying supply (as defined in subsection 167.11(1)), or of a supply that would be a qualifying supply if the recipient were a registrant, and the recipient files an election referred to in subsection 167.11(2) with the Minister in respect of the qualifying supply before the particular day that is referred to in paragraph 167.11(7)(a).
(2) Subsection 240(3) of the Act is amended by striking out the word “or” at the end of paragraph (d), by adding the word “or” at the end of paragraph (e), as enacted by subsection (1), and by adding the following after paragraph (e):
(f) a corporation that would be a temporary member, as defined in subsection 156(1), in the absence of paragraph (a) of that definition.
(3) Subsection (1) is deemed to have come into force on June 28, 1999.
(4) Subsection (2) is deemed to have come into force on November 17, 2005.
Marginal note:1997, c. 10, s. 59(2)
34. (1) The portion of subsection 252.1(2) of the French version of the Act after paragraph (a) is replaced by the following:
b) le logement, l’emplacement ou le voyage est acquis par la personne à une fin autre que sa fourniture dans le cours normal de toute entreprise de la personne qui consiste à effectuer de telles fournitures;
c) le logement ou l’emplacement est mis à la disposition d’un particulier non-résident.
Le montant remboursable est égal à la taxe payée par la personne relativement au logement ou à l’emplacement.
Marginal note:1993, c. 27, s. 107(1); 1997, c. 10, s. 59(3)
(2) The portion of subsection 252.1(3) of the French version of the Act after paragraph (a) is replaced by the following:
b) le logement, l’emplacement ou le voyage est acquis par la personne pour fourniture dans le cours normal de son entreprise qui consiste à effectuer de telles fournitures;
c) le logement, l’emplacement ou le voyage est fourni à une autre personne non-résidente, et la contrepartie de cette fourniture est versée à l’étranger, là où le fournisseur, ou son mandataire, mène ses affaires;
d) le logement ou l’emplacement est mis à la disposition d’un particulier non-résident.
Le montant remboursable est égal à la taxe payée par la personne relativement au logement ou à l’emplacement.
Marginal note:1993, c. 27, s. 107(1); 2000, c. 30, ss. 68(11) and (12)
(3) The portion of subsection 252.1(8) of the French version of the Act after paragraph (a) is replaced by the following:
b) l’inscrit verse à l’acquéreur, ou porte à son crédit, un montant au titre d’un remboursement, prévu aux paragraphes (2) ou (3), qui pourrait être versé à l’acquéreur relativement au logement ou à l’emplacement s’il payait la taxe afférente et remplissait les conditions énoncées à l’article 252.2;
c) le montant versé à la personne, ou porté à son crédit, est égal au montant suivant :
(i) dans le cas d’une fourniture de voyage organisé, le montant qui serait calculé selon l’alinéa (5)b) relativement à la fourniture,
(ii) dans le cas d’une fourniture de logement provisoire, ou d’emplacement de camping, non compris dans un voyage organisé, la taxe payée par l’acquéreur relativement à la fourniture;
d) dans le cas d’un remboursement prévu au paragraphe (2) :
(i) soit la contrepartie de la fourniture est versée à l’étranger, là où l’inscrit, ou son mandataire, mène ses affaires,
(ii) soit, si le logement ou l’emplacement est fourni dans le cadre d’un voyage organisé qui comprend des biens ou des services autres que les repas, les biens ou les services livrés ou rendus par la personne qui le fournit et relativement au logement ou à l’emplacement, un acompte d’au moins 20 % de la contrepartie du voyage organisé est versé :
(A) par l’acquéreur à l’inscrit au moins quatorze jours avant le premier jour où un logement provisoire, ou un emplacement de camping, compris dans le voyage est mis à la disposition d’un particulier aux termes de la convention portant sur la fourniture du voyage,
(B) au moyen d’une carte de crédit ou de paiement émise par une institution non-résidente — banque, association coopérative de crédit, compagnie de fiducie ou institution semblable — ou au moyen d’un chèque, d’une traite ou autre lettre de change tiré sur un compte à l’étranger auprès d’une telle institution.
Pour sa part, l’acquéreur n’a pas droit à un montant remboursable ou à une remise de taxe relativement au logement ou à l’emplacement.
(4) Subsections (1) to (3) apply for the purpose of determining rebates under section 252.1 of the Act
(a) in respect of short-term accommodation, or camping accommodation, that is not included in a tour package if the accommodation is first made available after June 1998 under the agreement for the supply; and
(b) in respect of short-term accommodation, or camping accommodation, that is included in a tour package, if the first night in Canada, for which short-term accommodation or camping accommodation included in the tour package is made available to a non-resident individual, is after June 1998.
Marginal note:1997, c. 10, s. 60(2)
35. (1) Subparagraph 252.2(g)(ii) of the French version of the Act is replaced by the following:
(ii) dans les autres cas, 75 $ pour chaque particulier à la disposition duquel un de ces logements ou emplacements est mis.
(2) Subsection (1) applies for the purpose of determining any rebate under section 252 or 252.1 of the Act the application of which is or would have been, in the absence of subsection 334(1) of the Act, received by the Minister of National Revenue after June 1998.
Marginal note:1993, c. 27, s. 107(1); 2000, c. 30, s. 70(4)
36. (1) Subsection 252.4(4) of the French version of the Act is replaced by the following:
Marginal note:Remboursement par le fournisseur
(4) L’exploitant d’un centre de congrès ou le fournisseur d’un logement provisoire ou d’un emplacement de camping peut demander la déduction prévue au paragraphe 234(2) au titre du montant visé à l’alinéa b) et versé à une personne — organisateur d’un congrès étranger qui n’est pas inscrit aux termes de la sous-section d de la section V ou promoteur d’un tel congrès —, ou porté à son crédit, si les conditions suivantes sont réunies :
a) la personne est l’acquéreur d’une des fournitures suivantes :
(i) la fourniture taxable du centre de congrès, ou des fournitures liées au congrès, effectuées par l’exploitant du centre qui n’est pas l’organisateur du congrès,
(ii) la fourniture taxable, effectuée par un inscrit autre que l’organisateur du congrès, du logement provisoire ou de l’emplacement de camping que la personne acquiert exclusivement pour fourniture dans le cadre du congrès;
b) l’exploitant du centre de congrès ou le fournisseur du logement ou de l’emplacement verse à la personne, ou porte à son crédit, un montant au titre du remboursement que la personne pourrait obtenir en vertu des paragraphes (1) ou (3) relativement à la fourniture du centre, du logement ou de l’emplacement en payant la taxe afférente et en demandant le remboursement en conformité avec ces paragraphes.
Pour sa part, la personne n’a pas droit à un remboursement ou à une remise de la taxe à laquelle le montant se rapporte.
(2) Subsection (1) applies to supplies, referred to in subsection 252.4(4) of the Act, as enacted by subsection (1), to a person of property or a service that is acquired by the person for supply in connection with a convention, if the convention begins after June 1998 and all of the supplies of admissions to the convention are made after February 24, 1998.
Marginal note:1997, c. 10, s. 221(3)
37. (1) Subsection 254(2.1) of the Act is replaced by the following:
Marginal note:Owner-occupant of a residential unit
(2.01) For the purpose of subsection (2.1), an individual is an owner-occupant of a residential unit at any time if it is the primary place of residence of the individual at that time and
(a) it is owned at that time by the individual or by another individual who is their spouse or common-law partner at that time; or
(b) it is in a residential complex of a cooperative housing corporation and the individual, or another individual who is their spouse or common-law partner at that time, holds at that time a share of the capital stock of the corporation for the purpose of using the residential unit.
Marginal note:Relevant transfer date
(2.02) For the purpose of subsection (2.1), the relevant transfer date in respect of a residential complex that is supplied to the particular individual referred to in that subsection is the earlier of the day on which ownership of the complex is transferred to the particular individual and the day on which possession of the complex is transferred to the particular individual under the agreement for the supply.
Marginal note:Rebate in Nova Scotia
(2.1) If
(a) a particular individual is entitled to a rebate under subsection (2), or to be paid or credited the amount of such a rebate under subsection (4), in respect of a residential complex that is a single unit residential complex, or a residential condominium unit, for use, in Nova Scotia, as the primary place of residence of the particular individual or of a relation of the particular individual, or the particular individual would be so entitled if the total consideration (within the meaning of paragraph (2)(c)) in respect of the complex were less than $450,000,
(b) it is the case that
(i) neither the particular individual nor any other individual who is their spouse or common-law partner on the relevant transfer date was an owner-occupant of a residential unit in any other residential complex in Canada during the period (in this paragraph referred to as the “relevant period”) that begins on the first day of the first full calendar month in the five-year period ending on the relevant transfer date and that ends on the relevant transfer date, or
(ii) on the last day on which any of the individuals referred to in subparagraph (i) was an owner-occupant of a residential unit in a residential complex in Canada during the relevant period, that residential unit was destroyed otherwise than voluntarily by any of them, and
(c) if, at the time referred to in paragraph (2)(b), the particular individual is acquiring the complex for use as the primary place of residence of a relation of the particular individual, but not for use as the primary place of residence of the particular individual or of their spouse or common-law partner, the circumstances described in subparagraph (b)(i) or (ii) would be satisfied if the references in those subparagraphs to the particular individual were references to the relation,
the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to the lesser of $1,500 and the amount determined by the formula
A × B
where
- A
- is 18.75%; and
- B
- is the total of all tax under subsection 165(2) payable in respect of the supply of the complex to the particular individual and in respect of any other supply to the particular individual of an interest in the complex.
(2) Subsection (1) applies for the purpose of determining a rebate of an individual in respect of a residential complex if
(a) the agreement of purchase and sale of the complex is entered into by the individual after 2001;
(b) the complex is first occupied as the primary place of residence of the individual, or a relation of the individual (as defined in subsection 254(1) of the Act), after
(i) 2002, in the case of a residential condominium unit, and
(ii) June 2002, in any other case; or
(c) under the agreement of purchase and sale of the complex entered into by the individual, ownership and possession of the complex are transferred to the individual after
(i) 2002, in the case of a residential condominium unit, and
(ii) June 2002, in any other case.
Marginal note:2000, c. 30, s. 72(3); 2006, c. 4, s. 25(3)
38. (1) Subsection 254.1(2.1) of the Act is replaced by the following:
Marginal note:Owner-occupant of a residential unit
(2.01) For the purpose of subsection (2.1), an individual is an owner-occupant of a residential unit at any time if it is the primary place of residence of the individual at that time and
(a) it is owned at that time by the individual or by another individual who is their spouse or common-law partner at that time; or
(b) it is in a residential complex of a cooperative housing corporation and the individual, or another individual who is their spouse or common-law partner at that time, holds at that time a share of the capital stock of the corporation for the purpose of using the residential unit.
Marginal note:Relevant transfer date
(2.02) For the purpose of subsection (2.1), the relevant transfer date in respect of a complex supplied to the particular individual referred to in that subsection is the day on which possession of the complex is transferred to the particular individual.
Marginal note:Rebate in Nova Scotia
(2.1) If
(a) a particular individual is entitled to a rebate under subsection (2), or to be paid or credited the amount of such a rebate under subsection (4), in respect of a residential complex situated in Nova Scotia, or would be so entitled if the fair market value of the complex, at the time possession of the complex is given to the particular individual under the agreement for the supply of the complex to the particular individual, were less than $481,500,
(b) it is the case that
(i) neither the particular individual nor any other individual who is their spouse or common-law partner on the relevant transfer date was an owner-occupant of a residential unit in any other residential complex in Canada during the period (in this paragraph referred to as the “relevant period”) that begins on the first day of the first full calendar month in the five-year period ending on the relevant transfer date and that ends on the relevant transfer date, or
(ii) on the last day when any of the individuals referred to in subparagraph (i) was an owner-occupant of a residential unit in a residential complex in Canada during the relevant period, that residential unit was destroyed otherwise than voluntarily by any of them, and
(c) if, at the time referred to in paragraph (2)(b), the particular individual is acquiring the complex for use as the primary place of residence of a relation of the particular individual, but not for use as the primary place of residence of the particular individual or of their spouse or common-law partner, the circumstances described in subparagraph (b)(i) or (ii) would be satisfied if the references in those subparagraphs to the particular individual were references to the relation,
the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to the lesser of $1,500 and 1.39% of the total consideration (within the meaning of paragraph (2)(h)) in respect of the complex.
(2) Paragraph 254.1(2.1)(a) of the Act, as amended by subsection (1), is replaced by the following:
(a) a particular individual is entitled to a rebate under subsection (2), or to be paid or credited the amount of such a rebate under subsection (4), in respect of a residential complex situated in Nova Scotia, or would be so entitled if the fair market value of the complex, at the time possession of the complex is given to the particular individual under the agreement for the supply of the complex to the particular individual, were less than $477,000,
(3) Subsection (1) applies for the purpose of determining a rebate of an individual in respect of a building or part of a building in which a residential unit forming part of a residential complex is situated if
(a) the agreement under which the building or part is supplied by way of sale to the individual is entered into by the individual after 2001;
(b) the complex is first occupied as the primary place of residence of the individual, or a relation of the individual (as defined in subsection 254.1(1) of the Act), after
(i) 2002, in the case of a residential condominium unit, and
(ii) June 2002, in any other case; or
(c) under the agreement under which the building or part is supplied by way of sale to the individual, possession of the complex is transferred to the individual after
(i) 2002, in the case of a residential condominium unit, and
(ii) June 2002, in any other case.
(4) Subsection (2) applies in respect of a supply, to a particular individual referred to in section 254.1 of the Act, of a building or part of it in which a residential unit forming part of a residential complex is situated if possession of the unit is given to the particular individual on or after July 1, 2006, unless the builder is deemed under section 191 of the Act to have paid tax under subsection 165(1) of the Act calculated at the rate of 7% in respect of the supply referred to in paragraph 254.1(2)(d) of the Act.
Marginal note:2000, c. 30, s. 73(1); 2006, c. 4, s. 26(3)
39. (1) Subsection 255(2.1) of the Act is replaced by the following:
Marginal note:Owner-occupant of a residential unit
(2.01) For the purpose of subsection (2.1), an individual is an owner-occupant of a residential unit at any time if it is the primary place of residence of the individual at that time and
(a) it is owned at that time by the individual or by another individual who is their spouse or common-law partner at that time; or
(b) it is in a residential complex of a cooperative housing corporation and the individual, or another individual who is their spouse or common-law partner at that time, holds at that time a share of the capital stock of the corporation for the purpose of using the residential unit.
Marginal note:Relevant transfer date
(2.02) For the purpose of subsection (2.1), the relevant transfer date in respect of a share of the capital stock of a cooperative housing corporation that is supplied to the particular individual referred to in that subsection is the day on which ownership of the share is transferred to the particular individual.
Marginal note:Rebate in Nova Scotia
(2.1) If
(a) a particular individual has acquired a share of the capital stock of a cooperative housing corporation for the purpose of using a residential unit in a residential complex of the corporation that is situated in Nova Scotia as the primary place of residence of the particular individual or of a relation of the particular individual,
(b) the corporation has paid tax under subsection 165(2) in respect of a taxable supply to the corporation of the complex,
(c) the particular individual is entitled to a rebate under subsection (2) in respect of the share or would be so entitled if the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the share or an interest in the corporation, complex or unit, were less than $481,500,
(d) it is the case that
(i) neither the particular individual nor any other individual who is their spouse or common-law partner on the relevant transfer date was an owner-occupant of a residential unit in any other residential complex in Canada during the period (in this paragraph referred to as the “relevant period”) that begins on the first day of the first full calendar month in the five-year period ending on the relevant transfer date and that ends on the relevant transfer date, or
(ii) on the last day when any of the individuals referred to in subparagraph (i) was an owner-occupant of a residential unit in a residential complex in Canada during the relevant period, that residential unit was destroyed otherwise than voluntarily by any of them, and
(e) if, at the time referred to in paragraph (2)(c), the particular individual is acquiring the share for the purpose of using a residential unit in the complex as the primary place of residence of a relation of the particular individual, but not for use as the primary place of residence of the particular individual or of their spouse or common-law partner, the circumstances described in subparagraph (d)(i) or (ii) would be satisfied if the references in those subparagraphs to the particular individual were references to the relation,
the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to the lesser of $1,500 and 1.39% of the total consideration.
(2) Paragraph 255(2.1)(c) of the Act, as enacted by subsection (1), is replaced by the following:
(c) the particular individual is entitled to a rebate under subsection (2) in respect of the share or would be so entitled if the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the share or an interest in the corporation, complex or unit, were less than $477,000,
(3) Subsection (1) applies for the purpose of determining a rebate of an individual in respect of a share of the capital stock of a cooperative housing corporation if
(a) the agreement of purchase and sale of the share is entered into by the individual after 2001;
(b) the residential unit in respect of which the individual acquires the share at the time referred to in paragraph 255(2)(c) of the Act is first occupied as the primary place of residence of the individual, or a relation of the individual (as defined in subsection 255(1) of the Act), after June 2002; or
(c) ownership of the share is transferred to the individual after June 2002.
(4) Subsection (2) applies for the purpose of determining a rebate in respect of a supply, by a cooperative housing corporation to an individual, of a share of the capital stock of the corporation if the individual is acquiring the share for the purpose of using a residential complex as the primary place of residence of the individual, or a relation (as defined in subsection 255(1) of the Act) of the individual, and the rebate application is filed on or after July 1, 2006, unless the corporation paid tax under subsection 165(1) of the Act in respect of the supply of the complex to the corporation calculated at the rate of 7%.
Marginal note:1997, c. 10, s. 224(4)
40. (1) Subsection 256(2.1) of the Act is replaced by the following:
Marginal note:Owner-occupant of a residential unit
(2.02) For the purpose of subsection (2.1), an individual is an owner-occupant of a residential unit at any time if it is the primary place of residence of the individual at that time and
(a) it is owned at that time by the individual or by another individual who is their spouse or common-law partner at that time; or
(b) it is in a residential complex of a cooperative housing corporation and the individual, or another individual who is their spouse or common-law partner at that time, holds at that time a share of the capital stock of the corporation for the purpose of using the residential unit.
Marginal note:Relevant completion date
(2.03) For the purpose of subsection (2.1), the relevant completion date of a residential complex that the particular individual referred to in that subsection has constructed or has engaged another person to construct is the day on which that construction is substantially completed.
Marginal note:Rebate in Nova Scotia
(2.1) If
(a) a particular individual is entitled to a rebate under subsection (2) in respect of a residential complex that the particular individual has constructed or has engaged another person to construct and that is for use, in Nova Scotia, as the primary place of residence of the particular individual or a relation of the particular individual, or the particular individual would be so entitled if the fair market value of the complex, at the time the construction of the complex is substantially completed, were less than $450,000,
(b) the particular individual has paid all of the tax payable by the particular individual in respect of the supply by way of sale to the particular individual of the land that forms part of the complex or an interest in the land or in respect of the supply to, importation by, or bringing into Nova Scotia by, the particular individual of any improvement to the land or, in the case of a mobile home or floating home, of the complex (the total of which tax under subsection 165(2) and sections 212.1, 218.1 and 220.05 to 220.07 is referred to in this subsection as the “total tax in respect of the province paid by the particular individual”),
(c) it is the case that
(i) neither the particular individual nor any other individual who is their spouse or common-law partner on the relevant completion date was an owner-occupant of a residential unit in any other residential complex in Canada during the period (in this paragraph referred to as the “relevant period”) that begins on the first day of the first full calendar month in the five-year period ending on the relevant completion date and that ends on the relevant completion date, or
(ii) on the last day when any of the individuals referred to in subparagraph (i) was an owner-occupant of a residential unit in a residential complex in Canada during the relevant period, that residential unit was destroyed otherwise than voluntarily by any of them, and
(d) if the particular individual has constructed or has engaged another person to construct the complex for use as the primary place of residence of a relation of the particular individual, but not for use as the primary place of residence of the particular individual or of their spouse or common-law partner, the circumstances described in subparagraph (c)(i) or (ii) would be satisfied if the references in those subparagraphs to the particular individual were references to the relation,
the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to the lesser of $1,500 and 18.75% of the total tax in respect of the province paid by the particular individual.
Marginal note:1990, c. 45, s. 12(1); 1997, c. 10, ss. 66(3) and 224(5)
(2) Subsection 256(3) of the Act is replaced by the following:
Marginal note:Application for rebate
(3) A rebate under this section in respect of a residential complex shall not be paid to an individual unless the individual files an application for the rebate on or before
(a) the day (in this subsection referred to as the “due date”) that is two years after the earliest of
(i) the day that is two years after the day on which the complex is first occupied as described in subparagraph (2)(d)(i),
(ii) the day on which ownership is transferred as described in subparagraph (2)(d)(ii), and
(iii) the day on which construction or substantial renovation of the complex is substantially completed; or
(b) any day after the due date that the Minister may allow.
(3) Subsection (1) applies for the purpose of determining a rebate of an individual in respect of a residential complex that the individual has constructed or engaged another person to construct if
(a) the building permit for that construction is issued after 2001; or
(b) the complex is first occupied as the primary place of residence of the individual, or a relation of the individual (as defined in subsection 256(1) of the Act), after June 2002.
(4) Subsection (2) is deemed to have come into force on December 20, 2002.
Marginal note:1997, c. 10, s. 226(1)
41. (1) Paragraph 257(1)(b) of the Act is replaced by the following:
(b) the tax that is or would, in the absence of section 167 or 167.11, be payable in respect of the particular supply.
(2) Subsection (1) is deemed to have come into force on June 28, 1999.
Marginal note:2000, c. 30, s. 75(1)
42. (1) Subsection 258.1(1) of the Act is replaced by the following:
Definition of “qualifying motor vehicle”
258.1 (1) In this section, “qualifying motor vehicle” means a motor vehicle that is equipped with a device designed exclusively to assist in placing a wheelchair in the vehicle without having to collapse the wheelchair or with an auxiliary driving control to facilitate the operation of the vehicle by an individual with a disability.
Marginal note:2000, c. 30, s. 75(1)
(2) Subsection 258.1(6) of the Act is amended by adding the word “and” at the end of paragraph (c) and by repealing paragraph (d).
(3) Subsections (1) and (2) are deemed to have come into force on April 4, 1998. Despite subsections 258.1(2) and (6) of the Act, a person has until the day that is four years after November 27, 2006 to file an application for a rebate under those subsections with the Minister of National Revenue in respect of tax that became payable before November 27, 2006 in respect of the supply, importation or bringing into a participating province of a qualifying motor vehicle other than
(a) a qualifying motor vehicle that was never used as capital property or held otherwise than for supply in the ordinary course of business at any time after it was equipped with a device described in subsection 258.1(1) of the Act and before it was acquired by the person; and
(b) in the case of subsection 258.1(6) of the Act, a qualifying motor vehicle that was not used by any person after it was acquired by the recipient and before it was imported or brought into the participating province except to the extent reasonably necessary to deliver the vehicle to a supplier of a service performed on it or to import or bring it into the participating province, as the case may be.
(4) The application referred to in subsection (3) may, despite subsection 262(2) of the Act, be the second application of a person for the rebate if, before November 27, 2006, the person had made an application for the rebate and that application has been assessed.
Marginal note:2000, c. 30, s. 75(1)
43. (1) Paragraph 258.2(b) of the Act is replaced by the following:
(b) the person imports the vehicle or brings it into the participating province, as the case may be, after the modification service is performed, and
(2) Subsection (1) is deemed to have come into force on April 4, 1998 and, despite section 258.2 of the Act, a person has until the day that is four years after November 27, 2006 to file an application for a rebate under that section with the Minister of National Revenue in respect of a vehicle that had a modification service performed on it and that has been imported or brought into a participating province before November 27, 2006 other than a vehicle that, after the modification service was performed and before the importation or bringing into the participating province, was not used by any person, except to the extent reasonably necessary to deliver the vehicle to a supplier of a service that is to be performed on it or to import it or bring it into the participating province, as the case may be.
(3) The application referred to in subsection (2) may, despite subsection 262(2) of the Act, be the second application of a person for the rebate if, before November 27, 2006, the person had made an application for the rebate and that application has been assessed.
Marginal note:1997, c. 10, s. 227(1)
44. (1) Subparagraph (a)(i) of the definition “non-creditable tax charged” in subsection 259(1) of the Act is replaced by the following:
(i) tax in respect of the supply, importation or bringing into a participating province of the property or service that became payable by the person during the period or that was paid by the person during the period without having become payable (other than tax deemed to have been paid by the person or in respect of which the person is, by reason only of section 226, not entitled to claim an input tax credit),
Marginal note:2005, c. 30, s. 22(6)
(2) The portion of subsection 259(4.2) of the French version of the Act before paragraph (a) is replaced by the following:
Marginal note:Exclusions
(4.2) Lorsqu’il s’agit de calculer le montant remboursable à une personne, pour le calcul du montant prévu aux alinéas (3)a) ou (4)a), ou à l’alinéa (4.1)a) si le pourcentage provincial établi pour le calcul est de 0% et que la personne est un organisme déterminé de services publics visé soit à l’un des alinéas a) à e) de la définition de “organisme déterminé de services publics” au paragraphe (1), soit aux alinéas f) ou g) de cette définition si la personne réside à Terre-Neuve-et-Labrador, la taxe prévue au paragraphe 165(2), aux articles 212.1 ou 218.1 ou à la section IV.1 qui est payable par la personne, ou réputée avoir été payée ou perçue par elle, n’est pas incluse :
(3) Subsection (1) is deemed to have come into force on May 1, 2002.
(4) Subsection (2) applies for the purpose 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 that subsection had not come into force for the purpose 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.
45. (1) The Act is amended by adding the following after section 263.1:
Marginal note:Rebates in respect of beverages in returnable containers
263.2 For the purposes of sections 252, 260 and 261.1, if a person is the recipient of a supply of a beverage in a filled and sealed returnable container or of a used and empty returnable container (or the material resulting from its compaction) and the supplier is deemed under paragraph 226(2)(b) or (4)(b) to have made to the person a taxable supply of a service in respect of the returnable container, tax paid in respect of the supply of the service is deemed to have been paid in respect of the supply of the beverage, empty returnable container or material, as the case may be.
(2) Subsection (1) is deemed to have come into force on May 1, 2002.
46. (1) Subsection 281.1 of the Act, as enacted by subsection 149(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following:
Marginal note:Waiving or cancelling interest
281.1 (1) The Minister may, on or before the day that is 10 calendar years after the end of a reporting period of a person, or on application by the person on or before that day, waive or cancel interest payable by the person under section 280 on an amount that is required to be remitted or paid by the person under this Part in respect of the reporting period.
(2) The portion of subsection 281.1(2) of the Act before paragraph (a), as enacted by subsection 149(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following:
Marginal note:Waiving or cancelling penalties
(2) The Minister may, on or before the day that is 10 calendar years after the end of a reporting period of a person, or on application by the person on or before that day, waive or cancel all or any portion of any
(3) Subsections (1) and (2) come into force, or are deemed to have come into force, on April 1, 2007.
Marginal note:2000, c. 30, s. 85
47. The portion of subsection 289(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Requirement to provide documents or information
289. (1) Despite any other provision of this Part, the Minister may, subject to subsection (2), for any purpose related to the administration or enforcement of a listed international agreement or this Part, including the collection of any amount payable or remittable under this Part by any person, by notice served personally or by registered or certified mail, require that any person provide the Minister, within any reasonable time that is stipulated in the notice, with
Marginal note:1993, c. 27, s. 128(3)
48. (1) Subparagraph 295(5)(d)(v) of the Act is replaced by the following:
(v) to an official of a department or agency of the Government of Canada or of a province as to the name, address, telephone number, occupation, size or type of business of a person, solely for the purposes of enabling that department or agency to obtain statistical data for research and analysis,
(2) Subsection 295(5) of the Act is amended by striking out the word “or” at the end of paragraph (k), by adding the word “or” at the end of paragraph (l) and by adding the following after paragraph (l):
(m) provide confidential information to any person solely for the purpose of enabling the Chief Statistician, within the meaning assigned by section 2 of the Statistics Act, to provide to a statistical agency of a province data concerning business activities carried on in the province, if the information is used by the statistical agency of the province solely for research and analysis and that statistical agency is authorized under the law of the province to collect the same or similar information on its own behalf in respect of such activities.
(3) Subsection 295(5) of 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), as enacted by subsection (2), and by adding the following after paragraph (m):
(n) provide confidential information, or allow the inspection of or access to confidential information, as the case may be, solely for the purposes of a provision contained in a listed international agreement.
(4) Subsection (2) applies after this Act receives royal assent to information relating to fiscal years that end after 2003 and, for the purpose of subsection 17(2) of the Statistics Act, if the information was collected before this Act receives royal assent, the information is deemed to have been collected at the time at which it is provided to a statistical agency of a province pursuant to paragraph 295(5)(m) of the Act, as enacted by subsection (2).
Marginal note:2000, c. 30, s. 90
49. Subsection 303(4) of the French version of the Act is replaced by the following:
Marginal note:Demande non conforme
(4) Le ministre peut recevoir la demande qui n’a pas été livrée ou postée à la personne ou à l’endroit indiqué au paragraphe (3).
Marginal note:1990, c. 45, s. 12(1); 1999, c. 17, par. 155(h)
50. Subsection 308(2) of the Act is repealed.
Marginal note:2001, c. 17, s. 262
51. Paragraph 328(2)(a) of the Act is replaced by the following:
(a) to whom confidential information has been provided for a particular purpose under paragraph 295(5)(b), (c), (g), (k), (l), (m) or (n), or
Marginal note:2001, c. 15, s. 23(1)
52. (1) The portion of the definition “practitioner” in section 1 of Part II of Schedule V to Act before paragraph (b) is replaced by the following:
- “practitioner”
“practitioner”, in respect of a supply of optometric, chiropractic, physiotherapy, chiropodic, podiatric, osteopathic, audiological, speech-language pathology, occupational therapy, psychological or dietetic services, means a person who
(a) practises the profession of optometry, chiropractic, physiotherapy, chiropody, podiatry, osteopathy, audiology, speech-language pathology, occupational therapy, psychology or dietetics, as the case may be,
Marginal note:1993, c. 27, s. 153(1)
(2) Subparagraph (c)(i) of the definition établissement de santé in section 1 of Part II of Schedule V to the French version of the Act is replaced by the following:
(i) des soins infirmiers et personnels sous la direction ou la surveillance d’un personnel de soins infirmiers et médicaux compétent ou d’autres soins personnels et de surveillance (sauf les services ménagers propres à la tenue de l’intérieur domestique) selon les besoins des résidents,
(3) Paragraph (c) of the definition établissement de santé in section 1 of Part II of Schedule V to the French version of the Act is amended by adding the following after subparagraph (ii):
(iii) les repas et le logement.
(4) Subsection (1) applies to any supply made after 2000.
(5) Subsections (2) and (3) are deemed to have come into force on December 17, 1990.
Marginal note:2001, c. 15, s. 24(1)
53. (1) Paragraph 7(h) of Part II of Schedule V to the Act is replaced by the following:
(h) speech-language pathology services;
(2) Subsection (1) applies to supplies made after 2000.
54. (1) Part II of Schedule V to the Act is amended by adding the following after section 7.1:
7.2 A supply of a service rendered in the practise of the profession of social work where
(a) the service is rendered to an individual within a professional-client relationship between the supplier and the individual and is provided for the prevention, assessment or remediation of, or to assist the individual in coping with, a physical, emotional, behavioural or mental disorder or disability of the individual or of another person to whom the individual is related or to whom the individual provides care or supervision otherwise than in a professional capacity; and
(b) either
(i) if the supplier is required to be licensed or otherwise certified to practise the profession of social work in the province in which the service is supplied, the supplier is so licensed or certified, or
(ii) if the supplier is not required to be licensed or otherwise certified to practise that profession in that province, the supplier has the qualifications equivalent to those necessary to be licensed or certified to practise that profession in a province in which such a requirement exists.
(2) Subsection (1) applies to any supply made after October 3, 2003.
(3) If a person is, or would be in the absence of subsection 261(3) of the Act, entitled to a rebate under section 261 of the Act in respect of an amount that was paid before the day on which this Act receives royal assent (in this subsection and subsection (4) referred to as the “assent date”) as tax in respect of a supply described in section 7.2 of Part II of Schedule V to the Act, as enacted by subsection (1), but not described in any other section of any Part of that Schedule, the person may, despite subsection 261(3) of the Act, file an application for the rebate before the later of the day that is one year after the assent date and the day that is two years after the day on which the amount was paid.
(4) If a person is, or would be in the absence of the two-year period referred to in subsection 232(1) of the Act, entitled to adjust, refund or credit, in accordance with section 232 of the Act, an amount that was charged or collected before the assent date as or on account of tax in respect of a supply described in section 7.2 of Part II of Schedule V to the Act, as enacted by subsection (1), but not described in any other section of any Part of that Schedule, the person may, despite the two-year period referred to in subsection 232(1) of the Act, adjust the amount under paragraph 232(1)(a) of the Act, or refund or credit the amount under paragraph 232(1)(b) of the Act, before the later of the day that is one year after the assent date and the day that is two years after the day on which the amount was charged or collected.
Marginal note:1997, c. 10, s. 102(1)
55. (1) Paragraph 1(d) of Part V.1 of Schedule V to the Act is replaced by the following:
(d) tangible personal property (other than property supplied by way of lease, licence or similar arrangement in conjunction with an exempt supply by the charity of real property by way of lease, licence or similar arrangement) that was acquired, manufactured or produced by the charity for the purpose of making a supply of the property and was neither donated to the charity nor used by another person before its acquisition by the charity, or any service supplied by the charity in respect of such property, other than such property or such a service supplied by the charity under a contract for catering;
(2) Subsection (1) applies to any supply for which consideration becomes due after 1996 or is paid after 1996 without having become due, but does not apply to a supply in respect of which tax under Part IX of the Act was charged or collected on or before October 3, 2003.
(3) For the purposes of Part IX of the Act, if, because of the application of paragraph 1(d) of Part V.1 of Schedule V to the Act, as enacted by subsection (1), a charity is considered to have ceased at any time to use capital property of the charity primarily in commercial activities of the charity and is deemed under subsection 200(2) of the Act to have made, immediately before that time, a supply of the property and to have collected tax in respect of that supply, and that cessation would not be considered to have occurred at that time if subsection (1) were not enacted,
(a) the charity is not required to include that tax in determining its net tax for any reporting period; and
(b) for the purpose of determining the basic tax content (as defined in subsection 123(1) of the Act) of the property, the charity is deemed to have been entitled to recover an amount equal to that tax as a rebate of tax included in the description of A in that definition.
Marginal note:1990, c. 45, s. 18; 1993, c. 27, s. 172(1); 1997, c. 10, s. 114(1)
56. (1) Paragraphs 20(a) to (e) of Part VI of Schedule V to the Act are replaced by the following:
(a) a supply of
(i) a service of registering, or processing an application to register, any property in a property registration system,
(ii) a service of filing, or processing an application to file, any document in a property registration system, or
(iii) a right to have access to, or to use, a property registration system to register, or make application to register, any property in it or to file, or make application to file, any document in it,
(b) a supply of
(i) a service of filing, or processing an application to file, a document in the registration system of a court or in accordance with legislative requirements,
(ii) a right to have access to, or to use, the registration system of a court, or any other registration system in which documents are filed in accordance with legislative requirements, for the purpose of filing a document in that registration system,
(iii) a service of issuing or providing, or processing an application to issue or provide, a document from the registration system of a court or other similar tribunal, or
(iv) a right to have access to, or to use, the registration system of a court or other similar tribunal to issue or obtain a document from that registration system,
(c) a supply (other than of a right or service supplied in respect of the importation of alcoholic beverages) of
(i) a licence, permit, quota or similar right,
(ii) a service of processing an application for a licence, permit, quota or similar right, or
(iii) a right to have access to, or to use, a filing or registration system to make application for a licence, permit, quota or similar right,
(d) a supply of any document, a service of providing information, or a right to have access to, or to use, a filing or registration system to obtain any document or information that indicates
(i) the vital statistics, residency, citizenship or right to vote of any person,
(ii) the registration of any person for any service provided by a government or municipality or by a board, commission or other body established by a government or municipality, or
(iii) any other status of any person,
(e) a supply of any document, a service of providing information, or a right to have access to, or to use, a filing or registration system to obtain any document or information, in respect of
(i) the title to, or any right or estate in, property,
(ii) any encumbrance or assessment in respect of property, or
(iii) the zoning of real property,
Marginal note:1990, c. 45, s. 18
(2) Paragraph 20(l) of Part VI of Schedule V to the Act is replaced by the following:
(l) a supply of a right to enter, to have access to or to use property of the government, municipality or other body other than a right, referred to in any of paragraphs (a) to (e), to have access to, or to use, a filing or registration system.
(3) Subsections (1) and (2) are deemed to have come into force on December 17, 1990, except that
(a) paragraphs 20(a), (b), (d) and (e) of Part VI of Schedule V to the Act, as enacted by subsection (1), and paragraph 20(l) of that Part, as enacted by subsection (2), do not apply to any supply in respect of which the supplier, on or before November 27, 2006, charged or collected an amount as or on account of tax under Part IX of the Act;
(b) paragraph 20(c) of Part VI of Schedule V to the Act, as enacted by subsection (1), does not apply to any supply
(i) that is a supply of a right to have access to, or to use, a filing or registration system in respect of which the supplier, on or before November 27, 2006, charged or collected an amount as or on account of tax under Part IX of the Act, or
(ii) that is a supply of a service, made on or before November 27, 2006,
(A) in respect of which the supplier did not, on or before that day, charge or collect any amount as or on account of tax under Part IX of the Act, or
(B) in respect of which the supplier charged or collected, on or before that day, an amount as or on account of tax and in respect of which supply an amount (other than an amount deemed under paragraph 296(5)(a) of the Act to have been claimed as a result of an assessment made after that day) was claimed
(I) in an application under subsection 261(1) of the Act received by the Minister of National Revenue on or before that day, or
(II) as a deduction, in respect of any adjustment, refund or credit under subsection 232(1) of the Act, in a return under Division V of Part IX of the Act received by the Minister before that day; and
(c) in relation to supplies for which consideration becomes due before 1997, or is paid before 1997 without having become due, paragraph 20(e) of Part VI of Schedule V to the Act, as enacted by subsection (1), shall be read as follows:
(e) a supply of any document, a service of providing information, or a right to have access to, or to use, a filing or registration system to obtain any document or information, in respect of
(i) the title to, or any right or estate in, property, or
(ii) any encumbrance in respect of property,
Marginal note:1990, c. 45, s. 18
57. (1) The portion of section 2 of Part I of Schedule VI to the Act before paragraph (a) is replaced by the following:
2. A supply of any of the following drugs or substances:
(2) Section 2 of Part I of Schedule VI to the Act is amended by adding the following after paragraph (d):
(d.1) a drug included in Schedule 1 to the Benzodiazepines and Other Targeted Substances Regulations,
Marginal note:1990, c. 45, s. 18
(3) Section 2 of Part I of Schedule VI to the Act is amended by striking out the word “and” at the end of paragraph (e), by adding the word “and” at the end of paragraph (f) and by replacing the portion after paragraph (f) with the following:
(g) plasma expander,
but not including a supply of a drug or substance when it is labelled or supplied for agricultural or veterinary use only.
(4) Subsections (1) and (3) apply to any supply made after April 12, 2001 and to any supply for which consideration becomes due after that day or is paid after that day without having become due.
(5) Subsection (2) is deemed to have come into force on September 1, 2000 except that it does not apply
(a) to any supply made after August 2000 and on or before November 27, 2006 if, on or before that day, the supplier collected any amount as or on account of tax under Part IX of the Act in respect of the supply;
(b) for the purposes of section 6 of Schedule VII to the Act, to drugs imported after August 2000 and on or before November 27, 2006 if, on or before that day, any amount was paid as or on account of tax under Part IX of the Act in respect of the importation; or
(c) for the purposes of section 15 of Part I of Schedule X to the Act, to drugs brought into a participating province after August 2000 and on or before November 27, 2006 if, on or before that day, any amount was paid as or on account of tax under Part IX of the Act in respect of the bringing into the province.
58. (1) Part IV of Schedule VI to the Act is amended by adding the following after section 3:
3.1 A supply of grain or seeds, or of mature stalks having no leaves, flowers, seeds or branches, of hemp plants of the genera Cannabis, if
(a) in the case of grain or seeds, they are not further processed than sterilized or treated for seeding purposes and are not packaged, prepared or sold for use as feed for wild birds or as pet food;
(b) in the case of viable grain or seeds, they are included in the definition “industrial hemp” in section 1 of the Industrial Hemp Regulations made under the Controlled Drugs and Substances Act; and
(c) the supply is made in accordance with that Act, if applicable.
(2) Subsection (1) applies to any supply for which consideration becomes due after April 12, 2001 or is paid after that day without having become due.
Marginal note:1994, c. 9, s. 34(1)
59. (1) Section 6 of Schedule VII to the Act is replaced by the following:
6. Goods the supply of which is included in any of Parts I to IV and VIII of Schedule VI, other than section 3.1 of Part IV of that Schedule.
(2) Subsection (1) applies to goods imported after April 12, 2001.
Marginal note:2001, c. 15, s. 32(1)
60. (1) Section 8.3 of Schedule VII to the Act is repealed.
(2) Subsection (1) is deemed to have come into force on November 17, 2005.
61. (1) Schedule VII to the Act is amended by adding the following after section 11:
12. Imported grain or seeds, or imported mature stalks having no leaves, flowers, seeds or branches, of hemp plants of the genera Cannabis, if
(a) in the case of grain or seeds, they are not further processed than sterilized or treated for seeding purposes and are not packaged, prepared or sold for use as feed for wild birds or as pet food;
(b) in the case of viable grain or seeds, they are included in the definition “industrial hemp” in section 1 of the Industrial Hemp Regulations made under the Controlled Drugs and Substances Act; and
(c) the importation is in accordance with that Act, if applicable.
(2) Subsection (1) applies to grain or seeds and mature stalks imported after April 12, 2001.
Marginal note:1997, c. 10, s. 254
62. (1) Section 22 of Part I of Schedule X to the Act is replaced by the following:
22. Property (other than a specified motor vehicle) that is brought into a participating province by a registrant (other than a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations) for consumption, use or supply exclusively in the course of commercial activities of the registrant.
(2) Subsection (1) applies to property brought into a participating province after April 2002.
Marginal note:Replacement of “(GST)” with “(GST/HST)”
63. (1) The Act is amended by replacing “(GST)” with “(GST/HST)” in the following provisions:
(a) paragraph 195.2(1)(b);
(b) subsection 195.2(2);
(c) paragraph 220.07(2)(a);
(d) subsection 225.1(10);
(e) subsection 227(4.2);
(f) subsection 227(6); and
(g) section 1 of Part II of Schedule X.
Marginal note:Replacement of “(GST)” with “(GST/HST)”
(2) The English version of the Act is amended by replacing “(GST)” with “(GST/HST)” in the following provisions:
(a) paragraph 352(9)(c);
(b) subparagraph 352(10)(c)(i); and
(c) subparagraph 354(2)(c)(i).
Marginal note:Replacement of “(TPS)” with “(TPS/TVH)”
(3) The French version of the Act is amended by replacing “(TPS)” with the term “(TPS/TVH)” in the following provisions:
(a) paragraph 352(9)(a);
(b) subparagraph 352(10)(a)(i); and
(c) subparagraph 354(2)(a)(i).
(4) Subsections (1) to (3) are deemed to have come into force on April 1, 1997.
Amendments in Respect of Excise Taxes
64. Subsection 2(1) of the Excise Tax Act is amended by adding the following in alphabetical order:
“listed international agreement”
« accord international désigné »
“listed international agreement” means the Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time.
65. (1) Subsection 88(1) of the Act, as enacted by subsection 134(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following:
Marginal note:Waiver or cancellation of interest or penalty
88. (1) The Minister may, on or before the day that is 10 calendar years after the end of a reporting period of a person, or on application by the person on or before that day, waive or cancel any amount otherwise payable to the Receiver General under this Act that is interest or a penalty on an amount that is required to be paid by the person under this Act in respect of the reporting period.
(2) Subsection (1) comes into force, or is deemed to have come into force, on April 1, 2007.
Marginal note:R.S., c. 7 (2nd Supp.), s. 46(1)
66. Subsection 99(1) of the Act is replaced by the following:
Marginal note:Provision of documents may be required
99. (1) Subject to section 102.1, the Minister may, for any purpose related to the administration or enforcement of this Act, or of a listed international agreement, by a notice served personally or by registered or certified mail, require that any person provide any book, record, writing or other document or any information or further information within any reasonable time that may be stipulated in the notice.
PART 2AMENDMENTS IN RESPECT OF EXCISE DUTY ON ALCOHOL AND TOBACCO PRODUCTS
2002, c. 22Excise Act, 2001
67. (1) The definition “tobacco dealer” in section 2 of the Excise Act, 2001 is replaced by the following:
“tobacco dealer”
« commerçant de tabac »
“tobacco dealer” means a person, other than a tobacco licensee, who purchases for resale, sells or offers to sell raw leaf tobacco on which duty is not imposed under this Act.
(2) Paragraphs (f) and (g) of the definition “spirits” in section 2 of the Act are replaced by the following:
(f) fusel oil or other refuse produced as a result of the distillation process;
(g) an approved formulation; or
(h) any product containing or manufactured from a material or substance referred to in paragraphs (b) to (g) that is not consumable as a beverage.
(3) The portion of the definition marquer in section 2 of the French version of the Act before paragraph (a) is replaced by the following:
« marquer »
“mark”
marquer Apposer, en la forme et selon les modalités prévues par règlement, une mention portant :
(4) Section 2 of the Act is amended by adding the following in alphabetical order:
“listed international agreement”
« accord international désigné »
“listed international agreement” means the Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time.
“restricted formulation”
« préparation assujettie à des restrictions »
“restricted formulation” means an approved formulation on which the Minister has imposed the condition or restriction under section 143 that the formulation can only be used by a licensed user or be exported.
(5) Subsections (1) to (3) and the definition “restricted formulation” in section 2 of the Act, as enacted by subsection (4), are deemed to have come into force on April 1, 2003.
68. (1) Paragraph 14(1)(c) of the Act is replaced by the following:
(c) a user’s licence, authorizing the person to use bulk alcohol, non-duty-paid packaged alcohol or a restricted formulation;
(2) Subsection 14(3) of the Act is replaced by the following:
Marginal note:Production excluded
(3) A person is not entitled to a licence under paragraph (1)(a) by reason only of
(a) having been deemed to have produced spirits under section 131.2; or
(b) having produced spirits for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol.
Marginal note:Issuance of a wine licence
(4) Subject to the regulations, on application by a person who is the holder of a spirits licence and a user’s licence, the Minister may issue to the person a wine licence, authorizing the person to fortify wine.
(3) Subsections (1) and (2) are deemed to have come into force on April 1, 2003.
69. (1) Section 17 of the Act is replaced by the following:
Marginal note:Alcohol registration
17. Subject to the regulations, on application, the Minister may issue an alcohol registration to a person authorizing the person to store or transport bulk alcohol, specially denatured alcohol or a restricted formulation.
(2) Subsection (1) is deemed to have come into force on April 1, 2003.
70. (1) Subsection 19(1) of the Act is replaced by the following:
Marginal note:Issuance of licence
19. (1) Subject to the regulations, on application, the Minister may issue an excise warehouse licence to a person who is not a retailer of alcohol authorizing the person to possess in their excise warehouse non-duty-paid packaged alcohol or manufactured tobacco or cigars that are not stamped.
(2) Subsection (1) is deemed to have come into force on April 1, 2003.
71. (1) Subsection 20(1) of the Act is replaced by the following:
Marginal note:Issuance of licence
20. (1) Subject to the regulations, on application, the Minister may issue a special excise warehouse licence to a person who is authorized by a tobacco licensee to be the only person, other than the licensee, who is entitled to distribute to an accredited representative manufactured tobacco or cigars manufactured by the licensee.
(2) Subsection (1) is deemed to have come into force on April 1, 2003.
72. (1) Section 21 of the Act is replaced by the following:
Marginal note:Return of tobacco
21. (1) If a person ceases to be authorized by a tobacco licensee to distribute to an accredited representative manufactured tobacco or cigars manufactured by the tobacco licensee,
(a) the person shall immediately return the tobacco or cigars of that licensee that are stored in the person’s special excise warehouse to the excise warehouse of the tobacco licensee; and
(b) the tobacco licensee shall immediately notify the Minister in writing that the person has ceased to be so authorized.
Marginal note:Cancellation
(2) The Minister shall cancel the special excise warehouse licence of the person if the person is no longer authorized by any tobacco licensee to distribute to an accredited representative manufactured tobacco or cigars.
(2) Subsection (1) is deemed to have come into force on April 1, 2003.
73. (1) The Act is amended by adding the following after section 24:
Marginal note:Licences and registrations not statutory instruments
24.1 For greater certainty, a licence or registration issued under this Act is not a statutory instrument for the purposes of the Statutory Instruments Act.
(2) Subsection (1) is deemed to have come into force on April 1, 2003.
74. (1) Subsection 25(3) of the Act is replaced by the following:
Marginal note:Exception — manufacturing for personal use
(3) An individual who is not a tobacco licensee may manufacture manufactured tobacco or cigars
(a) from packaged raw leaf tobacco or manufactured tobacco on which the duty has been paid, if the tobacco or cigars are for their personal use; or
(b) from raw leaf tobacco grown on land on which the individual resides, if
(i) the tobacco or cigars are for their personal use or that of the members of their family who reside with the individual and who are 18 years of age or older, and
(ii) the quantity of tobacco or cigars manufactured in any year does not exceed 15 kg for the individual and each member of the individual’s family who resides with the individual and who is 18 years of age or older.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
75. (1) Paragraph 28(2)(a) of the Act is replaced by the following:
(a) raw leaf tobacco for
(i) return to a licensed tobacco dealer or a tobacco grower,
(ii) delivery to another tobacco licensee, or
(iii) export; or
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
76. (1) The Act is amended by adding the following after section 28:
Marginal note:Unlawful removal from premises of tobacco dealer
28.1 (1) No person shall remove raw leaf tobacco from the premises of a licensed tobacco dealer.
Marginal note:Exception
(2) Subsection (1) does not apply to a licensed tobacco dealer who removes from their premises raw leaf tobacco for
(a) return to a tobacco grower;
(b) delivery to a tobacco licensee or to another licensed tobacco dealer; or
(c) export.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
77. (1) Paragraphs 30(2)(a) to (c) of the Act are replaced by the following:
(a) a person who is a tobacco licensee or a licensed tobacco dealer; or
(b) the possession of raw leaf tobacco
(i) in a customs bonded warehouse or a sufferance warehouse by the licensee of that warehouse,
(ii) by a body established under provincial law for the marketing of raw leaf tobacco grown in the province, or
(iii) by a prescribed person who is transporting the tobacco under prescribed circumstances and conditions.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
78. (1) Subparagraph 31(a)(ii) of the Act is replaced by the following:
(ii) for delivery to or return from a tobacco licensee or a licensed tobacco dealer, or
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
79. (1) Paragraph 32(2)(a) of the Act is replaced by the following:
(a) a tobacco licensee at the place of manufacture of the product;
(a.1) in the case of manufactured tobacco or cigars, a tobacco licensee who manufactured the tobacco or cigars, at their excise warehouse;
(2) Paragraphs 32(2)(c) to (e) of the Act are replaced by the following:
(c) in the case of manufactured tobacco or cigars, a special excise warehouse licensee at the special excise warehouse of the licensee, if the licensee is permitted under this Act to distribute the tobacco or cigars;
(d) in the case of an imported tobacco product, a prescribed person who is transporting the product under prescribed circumstances and conditions;
(d.1) in the case of manufactured tobacco or cigars manufactured in Canada, a prescribed person who is transporting the tobacco or cigars under prescribed circumstances and conditions;
(e) in the case of an imported tobacco product, a sufferance warehouse licensee in their sufferance warehouse;
(e.1) in the case of imported manufactured tobacco or cigars, a customs bonded warehouse licensee in their customs bonded warehouse;
(3) Paragraph 32(2)(h) of the Act is replaced by the following:
(h) in the case of manufactured tobacco or cigars, an accredited representative for their personal or official use;
(4) Paragraph 32(2)(k) of the Act is replaced by the following:
(k) in the case of manufactured tobacco or cigars, an individual who has manufactured the tobacco or cigars in accordance with subsection 25(3).
(5) Paragraph 32(3)(a) of the Act is replaced by the following:
(a) a tobacco licensee sells or offers to sell manufactured tobacco or cigars that are exported by the licensee in accordance with this Act;
(6) Subparagraphs 32(3)(b)(i) and (ii) of the Act are replaced by the following:
(i) manufactured tobacco or cigars to a special excise warehouse licensee, if the special excise warehouse licensee is permitted under this Act to distribute the tobacco or cigars,
(ii) manufactured tobacco or cigars to an accredited representative for their personal or official use,
(7) Paragraph 32(3)(c) of the Act is replaced by the following:
(c) a special excise warehouse licensee sells or offers to sell manufactured tobacco or cigars to an accredited representative for their personal or official use, if the licensee is permitted under this Act to distribute the tobacco or cigars;
(8) Subparagraphs 32(3)(d)(i) and (ii) of the Act are replaced by the following:
(i) imported manufactured tobacco or cigars that are exported by the licensee in accordance with this Act,
(ii) imported manufactured tobacco or cigars to an accredited representative for their personal or official use or to a duty free shop, or
(9) Paragraph 32(3)(g) of the Act is replaced by the following:
(g) a customs bonded warehouse licensee sells or offers to sell imported manufactured tobacco or cigars that are exported by the licensee in accordance with this Act;
(10) The portion of paragraph 32(3)(h) of the Act before subparagraph (i) is replaced by the following:
(h) a customs bonded warehouse licensee sells or offers to sell imported manufactured tobacco or cigars
(11) Subsections (1) to (10) are deemed to have come into force on July 1, 2003.
80. (1) Paragraph 35(2)(b) of the Act is replaced by the following:
(b) manufactured tobacco or cigars that a tobacco licensee is authorized to import under subsection 41(2);
(2) Paragraph 35(2)(d) of the Act is replaced by the following:
(d) raw leaf tobacco that is imported by a tobacco licensee or a licensed tobacco dealer.
(3) Subsections (1) and (2) are deemed to have come into force on July 1, 2003.
81. (1) Section 37 of the Act is replaced by the following:
Marginal note:Unstamped products to be warehoused
37. If manufactured tobacco or cigars manufactured in Canada are not stamped by a tobacco licensee, the tobacco licensee shall immediately enter the tobacco or cigars into the licensee’s excise warehouse.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
82. (1) Subsections 38(1) to (4) of the Act are replaced by the following:
Marginal note:No warehousing of tobacco without markings
38. (1) Subject to subsections (3) and (4), no person shall enter into an excise warehouse a container of manufactured tobacco or cigars unless the container has printed on it or affixed to it tobacco markings and other prescribed information.
Marginal note:No delivery of imported tobacco without markings
(2) Subject to subsection (3), no person shall deliver a container of imported manufactured tobacco or cigars that does not have printed on it or affixed to it tobacco markings and other prescribed information to
(a) a duty free shop for sale or offer for sale in accordance with the Customs Act;
(b) an accredited representative; or
(c) a customs bonded warehouse.
Marginal note:Exception for prescribed manufactured tobacco
(3) A container of manufactured tobacco does not require tobacco markings to be printed on or affixed to it if the brand of the tobacco is not commonly sold in Canada and is prescribed.
Marginal note:Exception for prescribed cigarettes
(4) A container of cigarettes does not require tobacco markings to be printed on or affixed to it if the cigarettes are of a particular type or formulation manufactured in Canada and exported under a brand that is also applied to cigarettes of a different type or formulation that are manufactured and sold in Canada and
(a) cigarettes of the particular type or formulation exported under that brand are prescribed cigarettes; and
(b) cigarettes of the particular type or formulation have never been sold in Canada under that brand or any other brand.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
83. (1) Subsection 41(2) of the Act is replaced by the following:
Marginal note:Importation for re-working or destruction
(2) The Minister may authorize a tobacco licensee to import any manufactured tobacco or cigars manufactured in Canada by the licensee for re-working or destruction by the licensee in accordance with subsection (1).
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
84. (1) Section 46 of the Act is replaced by the following:
Marginal note:Duty relieved — raw leaf tobacco
46. The duty imposed under section 42 is relieved on raw leaf tobacco that is imported by a tobacco licensee or a licensed tobacco dealer.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
85. (1) Subsection 50(3) of the Act is replaced by the following:
Marginal note:Prohibition on removal
(3) No person shall remove from an excise warehouse or a special excise warehouse manufactured tobacco or cigars manufactured in Canada.
(2) Subsection 50(10) of the Act is replaced by the following:
Marginal note:Removal from warehouse for re-working or destruction
(10) Subject to the regulations, manufactured tobacco or cigars manufactured in Canada may be removed from the excise warehouse of the tobacco licensee who manufactured them if they are removed for re-working or destruction by the licensee in accordance with section 41.
(3) Subsections (1) and (2) are deemed to have come into force on July 1, 2003.
86. (1) Subsection 51(1) of the Act is replaced by the following:
Marginal note:Removal of imported tobacco
51. (1) No person shall remove imported manufactured tobacco or cigars from an excise warehouse.
(2) The portion of subsection 51(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Exception
(2) Subject to the regulations, imported manufactured tobacco or cigars may be removed from an excise warehouse
(3) Subsections (1) and (2) are deemed to have come into force on July 1, 2003.
87. (1) Section 52 of the Act is replaced by the following:
Marginal note:Restriction — special excise warehouse
52. No special excise warehouse licensee shall store manufactured tobacco or cigars that are manufactured in Canada in their special excise warehouse for any purpose other than the sale and distribution of the tobacco or cigars to an accredited representative for the personal or official use of the representative.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
88. (1) The Act is amended by adding the following after section 59:
Marginal note:Importations involving a provincial authority
59.1 If alcohol is imported under circumstances in which subsection 3(1) of the Importation of Intoxicating Liquors Act applies, the alcohol is deemed, for the purposes of this Act and subsection 21.2(3) of the Customs Tariff, to have been imported by the person who would have been the importer in the absence of that subsection 3(1) and not by Her Majesty in right of a province or a liquor authority.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
89. (1) Subsection 60(2) of the Act is replaced by the following:
Marginal note:Exception
(2) Subsection (1) does not apply to
(a) the packaging of spirits from a marked special container by a purchaser at a bottle-your-own premises; or
(b) the production of spirits for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
90. (1) Section 61 of the Act is amended by striking out the word “or” at the end of paragraph (a), by adding the word “or” at the end of paragraph (b) and by adding the following after paragraph (b):
(c) possesses the still or equipment solely for the purpose of producing spirits for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
91. (1) The Act is amended by adding the following after section 62:
Marginal note:Prohibition — fortification of wine
62.1 Except as permitted under section 130, no person shall use bulk spirits to fortify bulk wine.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
92. (1) The portion of section 66 of the Act before paragraph (a) is replaced by the following:
Marginal note:Application — in-transit and transhipped alcohol
66. Sections 67 to 72, 75, 76, 80, 85, 88, 97 to 100 and 102 do not apply to imported alcohol or specially denatured alcohol that is, in accordance with the Customs Act, the Customs Tariff and the regulations made under those Acts,
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
93. (1) Subsection 70(2) of the Act is amended by adding the following after paragraph (c):
(c.1) in the case of bulk spirits produced for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol, to a person who, having produced those spirits, possesses them during the period of analysis;
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
94. (1) Paragraph 73(d) of the Act is replaced by the following:
(d) use it in accordance with section 130, 131 or 131.1;
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
95. (1) Sections 74 and 75 of the Act are replaced by the following:
Marginal note:Disposal of bulk spirits
74. A person who possesses bulk spirits produced for the purpose or as a consequence of the analysis of the composition of a substance containing absolute ethyl alcohol shall, immediately after the analysis is complete, destroy or dispose of the spirits in a manner approved by the Minister.
Marginal note:Importation — bulk spirits
75. (1) No person shall import bulk spirits other than a spirits licensee, a licensed user or, if the spirits are in a special container, an excise warehouse licensee in accordance with section 80.
Marginal note:Importation — bulk wine
(2) No person shall import bulk wine other than a wine licensee, a licensed user or, if the wine is in a special container, an excise warehouse licensee in accordance with section 85.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
96. (1) Subsection 88(2) of the Act is amended by striking out the word “and” at the end of paragraph (g) and by adding the following after paragraph (h):
(i) that is wine referred to in paragraph 135(2)(b) may be possessed by any person; and
(j) that is wine produced or packaged by a wine licensee and removed from the excise warehouse of the licensee and that is to be provided free of charge to individuals as a sample consumed at the premises where the licensee produces or packages wine may be possessed by the licensee or those individuals at those premises.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
97. (1) The Act is amended by adding the following after section 93:
Restricted Formulations
Marginal note:Restriction — licensed user
93.1 A licensed user shall not use or dispose of a restricted formulation other than in accordance with the conditions or restrictions imposed by the Minister under section 143.
Marginal note:Prohibition — possession of restricted formulation
93.2 No person other than a licensed user or an alcohol registrant shall possess a restricted formulation.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
98. (1) The Act is amended by adding the following after section 117:
Marginal note:Responsibility for wine ceases
117.1 If bulk spirits are produced from bulk wine, the wine licensee or licensed user who was responsible for the wine before it was used to produce the spirits ceases to be responsible for the wine at the time the spirits are produced.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
99. (1) Section 131 of the Act is replaced by the following:
Marginal note:Blending wine with spirits
131. A licensed user who is also a spirits licensee may blend bulk wine with spirits if the resulting product is spirits.
Marginal note:Producing spirits from wine
131.1 A licensed user who is also a spirits licensee may use bulk wine to produce spirits.
Marginal note:Deemed production of spirits — blending wine
131.2 (1) If wine is blended with bulk spirits and the resulting product is spirits,
(a) the duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were blended with the wine is relieved; and
(b) the resulting spirits are deemed to be produced at the time of the blending.
Marginal note:Deemed production of spirits — other blending
(2) If a material or substance, other than spirits or wine, containing absolute ethyl alcohol is blended with bulk spirits or wine and the resulting product is spirits,
(a) the duty imposed under section 122 or levied under section 21.1 of the Customs Tariff on the spirits that were blended with the material or substance is relieved; and
(b) the resulting spirits are deemed to be produced at the time of the blending.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
100. (1) Paragraph 135(2)(b) of the Act is replaced by the following:
(b) produced by a wine licensee and packaged by or on behalf of the licensee during a fiscal month in a particular fiscal year of the licensee if
(i) the total sales by the licensee of products that are subject to duty under subsection (1), or that would have been so subject to duty in the absence of this subsection, in the fiscal year ending immediately before the particular fiscal year did not exceed $50,000, and
(ii) the total sales by the licensee of those products during the particular fiscal year before the fiscal month did not exceed $50,000.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
101. (1) Section 136 of the Act is replaced by the following:
Marginal note:Duty payable on removal from warehouse
136. (1) Subject to subsection (2), if packaged wine is removed from an excise warehouse for entry into the duty-paid market, duty is payable on the wine at the time of its removal and is payable by the excise warehouse licensee.
Marginal note:Removals for consignment sales
(2) If a small wine licensee removes packaged wine that the licensee produced or packaged from the excise warehouse of the licensee for delivery and sale on a consignment basis at a retail store operated on behalf of two or more small wine licensees and that is not located on the premises of a wine licensee, the wine is deemed to be removed from the warehouse for entry into the duty-paid market at the time the wine is sold.
Meaning of “small wine licensee”
(3) In this section, a wine licensee is a small wine licensee during a fiscal year of the licensee if, in the previous fiscal year, the total amount of wine sold by the licensee did not exceed 60,000 litres.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
102. (1) Subsection 138(1) of the Act is amended by adding the following after paragraph (a):
(a.1) in the case of packaged wine described by subsection 136(2), as being in a store described by that subsection;
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
103. (1) Subsection 145(2) of the Act is amended by striking out the word “or” at the end of paragraph (b), by adding the word “or” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) in the case of wine, taken for use by an excise warehouse licensee if that licensee is also the wine licensee who produced or packaged the wine and the wine is provided free of charge to individuals for consumption as a sample at the premises where the licensee produces or packages wine.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
104. (1) Section 147 of the Act is amended by adding the following after subsection (3):
Marginal note:Duty not payable — wine samples
(4) Duty is not payable on non-duty-paid packaged wine, other than wine contained in a marked special container, that is removed from the excise warehouse of the wine licensee who produced or packaged the wine if the wine is to be provided free of charge to individuals as a sample consumed at the premises where the licensee produces or packages wine.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
105. (1) Paragraph 151(2)(a) of the Act is amended by striking out the word “or” at the end of subparagraph (vii) and by replacing subparagraph (viii) with the following:
(viii) in the case of packaged wine described in subsection 136(2), delivery to a store described in that subsection, or
(ix) export;
(2) Subsection 151(2) of the Act is amended by adding the following after paragraph (a):
(a.1) non-duty-paid packaged wine, other than wine in a marked special container, if the warehouse is the excise warehouse of the wine licensee who produced or packaged the wine and the wine is to be provided free of charge to individuals as a sample consumed at the premises where the licensee produces or packages wine;
(3) Subsections (1) and (2) are deemed to have come into force on July 1, 2003.
106. (1) The Act is amended by adding the following after section 153:
Marginal note:Return of non-duty-paid wine
153.1 If non-duty-paid packaged wine that has been removed from an excise warehouse under subparagraph 151(2)(a)(viii) is returned to that warehouse under prescribed conditions, the wine may, if it had not been entered into the duty-paid market, be entered into the warehouse as non-duty-paid packaged wine.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
107. (1) Subsection 160(1) of the Act is renumbered as section 160 and subsection 160(2) of the Act is repealed.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
108. (1) Section 173 of the Act, as enacted by subsection 116(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following:
Marginal note:Waiving or reducing interest
173. The Minister may, on or before the particular day that is 10 calendar years after the day an amount was required to be paid by a person under this Act, or on application by the person on or before the particular day, waive or reduce any interest on the amount payable by the person under section 170.
(2) Subsection (1) comes into force, or is deemed to have come into force, on April 1, 2007.
109. Paragraph 177(a) of the Act is replaced by the following:
(a) the amount has previously been refunded, remitted or paid to that person, or applied against an amount owed by the person to Her Majesty, under this or any other Act of Parliament; or
110. (1) The Act is amended by adding the following after section 181:
Marginal note:Destroyed imported manufactured tobacco
181.1 The Minister may refund to a duty free shop licensee the special duty under section 53 that was paid on imported manufactured tobacco that is destroyed by the licensee in accordance with the Customs Act if the licensee applies for the refund within two years after the tobacco is destroyed.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
111. (1) Subsection 188(6) of the Act, as enacted by subsection 117(5) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following:
Marginal note:Limitation on refunding overpayments
(6) An overpayment of duty payable for a fiscal month of a person and interest on the overpayment shall not be applied under paragraph (4)(b) or refunded under paragraph (4)(c) unless the person has, before the day on which notice of the assessment is sent to the person, filed all returns and other records of which the Minister has knowledge and that the person was required to file with
(a) the Minister under this Act, the Air Travellers Security Charge Act, the Excise Act, the Excise Tax Act and the Income Tax Act; or
(b) the Minister of Public Safety and Emergency Preparedness under the Customs Act.
(2) Subparagraph 188(7)(b)(ii) of the Act, as enacted by subsection 117(6) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following:
(ii) the person has, before the day on which notice of the assessment is sent to the person, filed all returns and other records of which the Minister has knowledge and that the person was required to file with
(A) the Minister under this Act, the Air Travellers Security Charge Act, the Excise Act, the Excise Tax Act and the Income Tax Act, or
(B) the Minister of Public Safety and Emergency Preparedness under the Customs Act.
(3) Subsections (1) and (2) come into force, or are deemed to have come into force, on April 1, 2007.
112. (1) Subsection 189(4) of the Act, as enacted by subsection 118(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following:
Marginal note:Restriction
(4) A refund shall not be paid until the person has filed with the Minister or the Minister of Public Safety and Emergency Preparedness all returns and other records of which the Minister has knowledge and that are required to be filed under this Act, the Air Travellers Security Charge Act, the Customs Act, the Excise Act, the Excise Tax Act and the Income Tax Act.
(2) Subsection (1) comes into force, or is deemed to have come into force, on April 1, 2007.
113. (1) Subsection 196(4) of the French version of the Act is replaced by the following:
Marginal note:Demande non conforme
(4) Le ministre peut recevoir la demande qui n’a pas été faite en conformité avec le paragraphe (3).
(2) Subparagraph 196(7)(b)(i) of the Act is replaced by the following:
(i) within the time limited under this Act for objecting, the person
(A) was unable to act or to give a mandate to act in their name, or
(B) had a bona fide intention to object to the assessment,
114. Subparagraph 197(6)(b)(i) of the Act is replaced by the following:
(i) within the time limited under this Act for objecting, the person
(A) was unable to act or to give a mandate to act in their name, or
(B) had a bona fide intention to object to the assessment,
115. Subparagraph 199(5)(b)(i) of the Act is replaced by the following:
(i) within the time limited under section 198 for appealing, the person
(A) was unable to act or to give a mandate to act in their name, or
(B) had a bona fide intention to appeal,
116. The portion of subsection 208(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Requirement to provide records or information
208. (1) Despite any other provision of this Act, the Minister may, subject to subsection (2), for any purpose related to the administration or enforcement of a listed international agreement or of this Act, by notice served personally or by registered or certified mail, require any person to provide the Minister, within any reasonable time that is stipulated in the notice, with
117. (1) Subparagraph 211(6)(e)(v) of the Act is replaced by the following:
(v) to an official of a department or agency of the Government of Canada or of a province as to the name, address, telephone number, occupation, size or type of business of a person, solely for the purpose of enabling the department or agency to obtain statistical data for research and analysis,
(2) Subsection 211(6) of the Act is amended by striking out the word “or” at the end of paragraph (j) and by adding the following after paragraph (k):
(l) provide confidential information, or allow the inspection of or access to confidential information, as the case may be, solely for the purposes of a provision contained in a listed international agreement; or
(m) provide confidential information to any person solely for the purpose of enabling the Chief Statistician, within the meaning assigned by section 2 of the Statistics Act, to provide to a statistical agency of a province data concerning business activities carried on in the province, if the information is used by the statistical agency solely for research and analysis and the statistical agency is authorized under the law of the province to collect the same or similar information on its own behalf in respect of such activities.
118. (1) The portion of subsection 217(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Punishment for certain alcohol offences
217. (1) Every person who contravenes section 63 or 73, subsection 78(1) or 83(1) or section 90, 93.1, 93.2 or 96 is guilty of an offence and liable
(2) Subparagraph 217(2)(a)(iii) of the Act is replaced by the following:
(iii) $10 multiplied by the number of litres of specially denatured alcohol or a restricted formulation to which the offence relates, and
(3) Subparagraph 217(3)(a)(iii) of the Act is replaced by the following:
(iii) $20 multiplied by the number of litres of specially denatured alcohol or a restricted formulation to which the offence relates, and
119. The portion of subsection 218(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Punishment for more serious alcohol offences
218. (1) Every person who contravenes any of sections 67, 69 to 72, 75 or 88 or subsection 101(1) or (2) is guilty of an offence and liable
120. Paragraph 221(2)(a) of the Act is replaced by the following:
(a) to whom confidential information has been provided for a purpose pursuant to paragraph 211(6)(b), (d), (h), (l) or (m), or
121. Section 234 of the Act is replaced by the following:
Marginal note:Contravention of section 38, 40, 41, 49, 61, 62.1, 99, 149 or 151
234. Every person who contravenes section 38, 40, 41, 49, 61, 62.1, 99, 149 or 151 is liable to a penalty of not more than $25,000.
122. Subsection 236(1) of the Act is replaced by the following:
Marginal note:Diversion of black stock tobacco
236. (1) Every tobacco licensee or customs bonded warehouse licensee is liable to a penalty if manufactured tobacco on which duty was imposed under section 42 at a rate set out in paragraph 1(a), 2(a) or 3(a) of Schedule 1 is
(a) in the case of a tobacco licensee,
(i) delivered by the licensee other than to a duty free shop or customs bonded warehouse or to a person for use as ships’ stores in accordance with the Ships’ Stores Regulations, or
(ii) exported by the licensee other than for delivery to a foreign duty free shop or as foreign ships’ stores; or
(b) in the case of a customs bonded warehouse licensee, delivered by the licensee other than to a person for use as ships’ stores in accordance with the Ships’ Stores Regulations.
123. Subsection 237(1) of the Act is replaced by the following:
Marginal note:Diversion of non-duty-paid alcohol
237. (1) Every excise warehouse licensee is liable to a penalty equal to 200% of the duty imposed on packaged alcohol that was removed from the warehouse of the licensee for a purpose described in section 147 if the alcohol is not delivered, exported or provided, as the case may be, for that purpose.
Marginal note:2006, c. 4, s. 47(1)
124. Section 243 of the Act is replaced by the following:
Marginal note:Contravention of section 73, 74 or 90
243. (1) Unless section 239, 241, 242 or 243.1 or subsection (2) applies, every person who contravenes section 73, 74 or 90 is liable to a penalty equal to
(a) if the contravention relates to spirits, 200% of the duty that was imposed on the spirits; or
(b) if the contravention relates to wine, $1.24 per litre of that wine.
Marginal note:Contravention of section 73 or 90 by licensed user
(2) Every licensed user who exports, gives possession of or takes for use alcohol in contravention of section 73 or 90 is liable to a penalty equal to
(a) if the contravention relates to spirits, the duty that was imposed on the spirits; or
(b) if the contravention relates to wine, $0.62 per litre of that wine.
Marginal note:Contravention of section 76, 89 or 91
243.1 Every person who contravenes section 76, 89 or 91 is liable to a penalty equal to
(a) if the contravention relates to spirits, the duty that was imposed on the spirits; or
(b) if the contravention relates to wine, $0.62 per litre of that wine.
125. The Act is amended by adding the following after section 247:
Marginal note:Unauthorized possession, etc., of restricted formulation
247.1 Every person who contravenes section 93.1 or 93.2 is liable to a penalty of $10 per litre of restricted formulation to which the contravention relates.
126. (1) Section 255.1 of the Act, as enacted by subsection 121(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following:
Marginal note:Waiving or reducing failure to file penalty
255.1 The Minister may, on or before the day that is 10 calendar years after the end of a fiscal month of a person, or on application by the person on or before that day, waive or reduce any penalty payable by the person under section 251.1 in respect of a return for the fiscal month.
(2) Subsection (1) comes into force, or is deemed to have come into force, on April 1, 2007.
127. (1) Section 264 of the Act is replaced by the following:
Marginal note:Certain things not to be returned
264. Despite this Act, any alcohol, specially denatured alcohol, restricted formulation, raw leaf tobacco or tobacco product that is seized under section 260 must not be returned to the person from whom it was seized or any other person unless it was seized in error.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
128. (1) Subsection 266(2) of the Act is amended by striking out the word “and” at the end of paragraph (b), by adding the word “and” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) a seized restricted formulation only to a licensed user.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
129. The definition “common-law partner” in subsection 297(6) of the Act is replaced by the following:
“common-law partner”
« conjoint de fait »
“common-law partner” of an individual at any time means a person who is the common-law partner of the individual at that time for the purposes of the Income Tax Act.
130. (1) Paragraph 304(1)(n) of the Act is replaced by the following:
(n) respecting the sale under section 266 of alcohol, tobacco products, raw leaf tobacco, specially denatured alcohol or restricted formulations seized under section 260;
(2) Section 304 of the Act is amended by adding the following after subsection (2):
Marginal note:Incorporation by reference
(3) For greater certainty, a regulation made under this Act may incorporate by reference any material, regardless of its source and either as it exists on a particular date or as amended from time to time.
(3) Subsection (2) is deemed to have come into force on July 1, 2003.
131. (1) The Act is amended by adding the following after section 315:
Marginal note:Transitional application of Distillery Regulations
315.1 (1) If, during the period beginning on July 1, 2003 and ending on July 1, 2009, sections 7, 8, 9, 12 and 15 of the Distillery Regulations, C.R.C., c. 569, would have applied in any circumstance had those sections, as they read on June 30, 2003, been in force and section 1.1 of the Excise Act not been enacted, those sections apply, with any modifications that the circumstances require.
Marginal note:Transitional application of Distillery Departmental Regulations
(2) If, during the period beginning on July 1, 2003 and ending on July 1, 2009, sections 13 and 14 of the Distillery Departmental Regulations, C.R.C., c. 570, would have applied in any circumstance had those sections, as they read on June 30, 2003, been in force and section 1.1 of the Excise Act not been enacted, those sections apply, with any modifications that the circumstances require.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
132. (1) The Act is amended by adding the following after section 316:
Marginal note:Refund for re-worked or destroyed tobacco product
316.1 If duty imposed under the Excise Act and tax imposed under section 23 of the Excise Tax Act on a tobacco product manufactured in Canada had become payable before the implementation date and a tobacco licensee under this Act who was, before that day, licensed under those Acts to manufacture the product re-works or destroys, on or after that day, the product in a manner authorized by the Minister, section 181 applies as though that duty and tax were duty paid under this Act.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
133. (1) The Act is amended by adding the following after section 317:
Marginal note:Imported tobacco delivered to duty free shop before implementation date
317.1 If, on the implementation date, imported manufactured tobacco on which tax under section 23.12 of the Excise Tax Act was paid is possessed by a duty free shop licensee and no application for a refund of the tax has been made under that Act, this Act applies in respect of the tobacco as though the tax were special duty under section 53.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
R.S., c. A-1Access to Information Act
134. (1) Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to
Excise Act, 2001
Loi de 2001 sur l’accise
and a corresponding reference to “section 211”.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
R.S., c. 1 (2nd Supp.)Customs Act
135. (1) Subsection 2(1) of the Customs Act is amended by adding the following in alphabetical order:
“licensed user”
« utilisateur agréé »
“licensed user” has the same meaning as in section 2 of the Excise Act, 2001;
“restricted formulation”
« préparation assujettie à des restrictions »
“restricted formulation” has the same meaning as in section 2 of the Excise Act, 2001;
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
Marginal note:2001, c. 25, s. 58(1)
136. (1) Subsection 97.25(3) of the Act is replaced by the following:
Marginal note:Sale of detained goods
(3) Subject to the regulations, the Minister, on giving 30 days’ notice in writing to the debtor at the debtor’s latest known address, may direct that any good imported or reported for exportation by or on behalf of the debtor, or any conveyance, that has been detained be sold
(a) if the good is spirits or specially denatured alcohol, to a spirits licensee;
(b) if the good is wine, to a wine licensee;
(c) if the good is raw leaf tobacco or a tobacco product, to a tobacco licensee;
(d) if the good is a restricted formulation, to a licensed user; or
(e) in any other case, by public auction or public tender or by the Minister of Public Works and Government Services under the Surplus Crown Assets Act.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
Marginal note:2002, c. 22, s. 338
137. (1) Subsection 117(2) of the Act is replaced by the following:
Marginal note:No return of certain goods
(2) Despite subsection (1), if spirits, wine, specially denatured alcohol, restricted formulations, raw leaf tobacco or tobacco products are seized under this Act, they shall not be returned to the person from whom they were seized or any other person unless they were seized in error.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
138. (1) Subsection 119.1(1.1) of the Act is amended by striking out the word “and” at the end of paragraph (b), by adding the word “and” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) a restricted formulation may only be to a licensed user.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
Marginal note:2002, c. 22, s. 340
139. (1) The portion of subsection 142(1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Disposal of things abandoned or forfeit
142. (1) Unless the thing is spirits, specially denatured alcohol, a restricted formulation, wine, raw leaf tobacco or a tobacco product, anything that has been abandoned to Her Majesty in right of Canada under this Act and anything the forfeiture of which is final under this Act shall
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
Marginal note:2002, c. 22, s. 341
140. (1) Section 142.1 of the Act is replaced by the following:
Marginal note:Dealing with abandoned or forfeited alcohol, etc.
142.1 (1) If spirits, specially denatured alcohol, a restricted formulation, wine, raw leaf tobacco or a tobacco product is abandoned or finally forfeited under this Act, the Minister may sell, destroy or otherwise deal with it.
Marginal note:Restriction
(2) Subject to the regulations, the sale under subsection (1) of
(a) spirits or specially denatured alcohol may only be to a spirits licensee;
(b) wine may only be to a wine licensee;
(c) raw leaf tobacco or a tobacco product may only be to a tobacco licensee; and
(d) a restricted formulation may only be to a licensed user.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
141. Subsection 164(1) of the Act is amended by adding the following after paragraph (h.1):
(h.2) respecting the sale of alcohol, a tobacco product, raw leaf tobacco, specially denatured alcohol or a restricted formulation detained, seized, abandoned or forfeited under this Act;
1997, c. 36Customs Tariff
Marginal note:2002, c. 22, s. 346
142. (1) The definitions ““beer” or “malt liquor”” and “wine” in section 21 of the Customs Tariff are replaced by the following:
“beer” or “malt liquor”
« bière » ou « liqueur de malt »
“beer” or “malt liquor” means beer or malt liquor, within the meaning of section 4 of the Excise Act, of tariff item No. 2202.90.10 or heading 22.03, that is classified under that heading or tariff item or with the container in which it is imported.
“wine”
« vin »
“wine” means wine, as defined in section 2 of the Excise Act, 2001, of heading 22.04, 22.05 or 22.06, other than of tariff item No. 2204.10.90, 2204.21.32, 2204.21.49, 2204.29.32, 2204.29.49, 2204.30.90, 2205.10.30, 2205.90.30, 2206.00.19, 2206.00.22, 2206.00.39, 2206.00.49, 2206.00.72 or 2206.00.93, that is classified under that heading or with the container in which it is imported.
(2) Section 21 of the French version of the Act is amended by adding the following in alphabetical order:
« utilisateur agréé »
“licensed user”
utilisateur agréé S’entend au sens de l’article 2 de la Loi de 2001 sur l’accise.
(3) Subsection (2) is deemed to have come into force on July 1, 2003.
R.S., c. E-15Excise Tax Act
Marginal note:1990, c. 45, s. 12(1)
143. (1) Paragraph 215(1)(b) of the Excise Tax Act is replaced by the following:
(b) the amount of all duties and taxes, if any, payable on the goods under the Customs Tariff, the Excise Act, 2001, the Special Import Measures Act, this Act (other than this Part) or any other law relating to customs.
(2) Subsection (1) is deemed to have come into force on July 1, 2003.
PART 32002, c. 9, s. 5AMENDMENTS TO THE AIR TRAVELLERS SECURITY CHARGE ACT
144. (1) The definition “listed airport” in section 2 of the Air Travellers Security Charge Act is replaced by the following:
“listed airport”
« aéroport désigné »
“listed airport” means an airport listed in the schedule.
(2) Section 2 of the Act is amended by adding the following in alphabetical order:
“registered charity”
« organisme de bienfaisance enregistré »
“registered charity” has the same meaning as in subsection 248(1) of the Income Tax Act.
(3) Subsection (2) is deemed to have come into force on April 1, 2002.
145. (1) Section 11 of the Act is amended by adding the following after subsection (1):
Marginal note:Exceptions
(1.1) No charge is payable in respect of an air transportation service that is acquired
(a) by a person for the purpose of re-selling the service, if the person sells the service to another person before April 1, 2002 and makes full and final payment to the air carrier in respect of the service before May 1, 2002; or
(b) by a registered charity from an air carrier for no consideration, if the service is donated by the charity to an individual for no consideration and in pursuit of its charitable purposes.
(2) Subsection (1) is deemed to have come into force on April 1, 2002.
146. (1) Subsection 30(1) of the Act, as enacted by subsection 102(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following:
Marginal note:Waiving or reducing interest
30. (1) The Minister may, on or before the day that is 10 calendar years after the end of a fiscal month of a person, or on application by the person on or before that day, waive or reduce any interest payable by the person under this Act on an amount that is required to be paid by the person under this Act in respect of the fiscal month.
(2) Subsection (1) comes into force, or is deemed to have come into force, on April 1, 2007.
147. (1) Subsection 44(3) of the Act is replaced by the following:
Marginal note:How application made
(3) An application must be made by delivering or mailing, to the Chief of Appeals in a Tax Services Office of the Agency, the application accompanied by a copy of the notice of objection.
(2) Subsection 44(4) of the French version of the Act is replaced by the following:
Marginal note:Demande non conforme
(4) Le ministre peut recevoir la demande qui n’a pas été faite en conformité avec le paragraphe (3).
(3) Subparagraph 44(7)(b)(i) of the Act is replaced by the following:
(i) within the time limited under this Act for objecting, the person
(A) was unable to act or to give a mandate to act in their name, or
(B) had a bona fide intention to object to the assessment,
148. Subparagraph 45(6)(b)(i) of the Act is replaced by the following:
(i) within the time limited under this Act for objecting, the person
(A) was unable to act or to give a mandate to act in their name, or
(B) had a bona fide intention to object to the assessment,
149. Subparagraph 47(5)(b)(i) of the Act is replaced by the following:
(i) within the time limited under section 46 for appealing, the person
(A) was unable to act or to give a mandate to act in their name, or
(B) had a bona fide intention to appeal,
150. (1) Subsection 52(6) of the Act is replaced by the following:
Marginal note:Appeal
(6) If a question set out in an application is determined by the Tax Court, the Minister or any of the persons who have been served with a copy of the application and who are named in an order of the Court under subsection (4) may, in accordance with the provisions of this Act, the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals from or applications for judicial review of decisions of the Tax Court, appeal from the determination.
(2) Subsection (1) is deemed to have come into force on July 2, 2003.
151. (1) Subsection 55(1) of the Act, as enacted by subsection 107(1) of the Budget Implementation Act, 2006, chapter 4 of the Statutes of Canada, 2006, is replaced by the following:
Marginal note:Waiving or cancelling penalties
55. (1) The Minister may, on or before the day that is 10 calendar years after the end of a fiscal month of a person, or on application by the person on or before that day, waive or cancel any penalty payable by the person under section 53 in respect of the fiscal month.
(2) Subsection (1) comes into force, or is deemed to have come into force, on April 1, 2007.
152. Section 84 of the Act is amended by adding the following after subsection (1):
Marginal note:Amendments to the schedule
(1.1) The Governor in Council may, by regulation, amend the schedule by adding, deleting or varying the reference to an airport.
153. The schedule to the Act is amended by replacing the reference “(Section 2)” after the heading “SCHEDULE” with the reference “(Section 2 and subsection 84(1.1))”.
154. (1) The schedule to the Act is amended by striking out the following under the heading “Quebec”:
La Grande-3
La Grande-4
(2) Subsection (1) is deemed to have come into force on December 23, 2004.
155. The schedule to the Act is amended by adding the following in alphabetical order under the heading “Quebec”:
Rivière-Rouge (Mont Tremblant International)
156. The schedule to the Act is amended by adding the following in alphabetical order under the heading “Alberta”:
Red Deer Regional
PART 4COORDINATING AMENDMENT
Marginal note:Bill C-28
157. (1) If Bill C-28, introduced in the 1st session of the 39th Parliament and entitled the Budget Implementation Act, 2006, No. 2, receives royal assent and section 57 of that Act comes into force, then paragraph 88(2)(i) of the Excise Act, 2001, as enacted by subsection 96(1) of this Act, is replaced by the following:
(i) that is wine referred to in paragraph 135(2)(a) or (b) may be possessed by any person; and
(2) Subsection (1) applies to wine packaged after June 2006.
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