PART 3AMENDMENTS IN RESPECT OF THE GOODS AND SERVICES TAX/HARMONIZED SALES TAX

R.S., c. E-15Excise Tax Act

• 45. (1) Section 234 of the Excise Tax Act is amended by adding the following after subsection (2):

  • Marginal note:Late filing of information and adjustment for failure to file

    (2.1) If a registrant is required to file prescribed information in accordance with subsection 252.1(10) or 252.4(5) in respect of an amount claimed as a deduction under subsection (2) in respect of an amount paid or credited on account of a rebate,

    • (a) in the case where the registrant files the information on a day (in this subsection referred to as the “filing day”) that is after the day on or before which the registrant is required to file its return under Division V for the reporting period in which the registrant claimed the deduction under subsection (2) in respect of the amount paid or credited and before the particular day that is the earlier of

      • (i) the day that is four years after the day on or before which the registrant was required under section 238 to file a return for the period, and

      • (ii) the day stipulated by the Minister in a demand to file the information,

      the registrant shall, in determining the net tax for the reporting period of the registrant that includes the filing day, add an amount equal to interest, at the prescribed rate, on the amount claimed as a deduction under subsection (2) computed for the period beginning on the day on or before which the registrant was required to file the prescribed information under subsection 252.1(10) or 252.4(5) and ending on the filing day; and

    • (b) in the case where the registrant fails to file the information before the particular day, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the particular day, add an amount equal to the total of the amount claimed as a deduction under subsection (2) and interest, at the prescribed rate, on that amount computed for the period beginning on the day on or before which the registrant was required to file the information under subsection 252.1(10) or 252.4(5) and ending on the day on or before which the registrant is required under section 238 to file a return for the reporting period of the registrant that includes the particular day.

• (2) Subsection (1) applies in respect of any amount claimed as a deduction under subsection 234(2) of the Act in respect of an amount that is paid to, or credited in favour of, a person after March 2007 and that relates to a supply for which tax under Part IX of the Act becomes payable after March 2007.

Marginal note:1993, c. 27, s. 107(1); 1997, c. 10, s. 58(1)

• 46. (1) The portion of subsection 252(1) of the Act before paragraph (c) is replaced by the following:

  Marginal note:Non-resident rebate in respect of exported goods

  • 252. (1) If a non-resident person is the recipient of a supply of tangible personal property acquired by the person for use primarily outside Canada, the person is not a consumer of the property, the property is not

    • (a) excisable goods, or

• (2) Subsection (1) applies to any supply of property in respect of which tax under Part IX of the Act becomes payable after March 2007.

Marginal note:1997, c. 10, s. 59(2); 2000, c. 30, s. 68(2)

• 47. (1) Subsection 252.1(2) of the Act is replaced by the following:

  • Marginal note:Accommodation rebate for tour packages

    (2) If

    • (a) a non-resident person is the recipient of a supply made by a registrant of a tour package that includes short-term accommodation or camping accommodation,

    • (b) the tour package is acquired by the person otherwise than for supply in the ordinary course of a business of the person of making such supplies, and

    • (c) the accommodation is made available to a non-resident individual,

    the Minister shall, subject to subsection (8) and section 252.2, pay a rebate to the person equal to the tax paid by the person in respect of the accommodation.

• Marginal note:1993, c. 27, s. 107(1); 1997, c. 10, s. 59(3)

  (2) The portion of subsection 252.1(3) of the Act after paragraph (a) is replaced by the following:

  • (b) if the supply is a supply of a tour package, the tour package is acquired by the person for supply in the ordinary course of a business of the person of making supplies of tour packages,

  • (b.1) if the supply is a supply of accommodation, the accommodation is acquired by the person in the ordinary course of a business of the person for the purpose of making a supply (in this subsection referred to as the “subsequent supply”) of a tour package that includes the accommodation,

  • (c) a supply of the tour package or the subsequent supply is made to another non-resident person and payment of the consideration for the supply of the tour package or the subsequent supply, as the case may be, is made at a place outside Canada at which the supplier, or an agent of the supplier, is conducting business, and

  • (d) the accommodation is made available to a non-resident individual,

  the Minister shall, subject to subsection (8) and section 252.2, pay a rebate to the particular person equal to the tax paid by the particular person in respect of the accommodation.

• Marginal note:2000, c. 30, s. 68(4)

  (3) Subsection 252.1(4) of the Act is repealed.

• Marginal note:1993, c. 27, s. 107(1); 1997, c. 10, s. 59(6)F; 2000, c. 30, s. 68(7)

  (4) The descriptions of A and B in paragraph 252.1(5)(a) of the Act are replaced by the following:

  A

  is the total number of nights for which short-term accommodation included in that tour package is made available in Canada under the agreement for the supply, and

  B

  is the total number of nights for which camping accommodation included in that tour package is made available in Canada under the agreement for the supply; and

• Marginal note:2000, c. 30, s. 68(8)

  (5) The description of C in paragraph 252.1(5)(b) of the Act is replaced by the following:

  C

  is the total number of nights for which short-term accommodation, or camping accommodation, included in that tour package is made available in Canada under the agreement for the supply of that tour package,

• Marginal note:2000, c. 30, s. 68(9)

  (6) Subsection 252.1(6) of the Act is repealed.

• Marginal note:1993, c. 27, s. 107(1); 2000, c. 30, s. 68(10)

  (7) The portion of subsection 252.1(8) of the Act before paragraph (b) is replaced by the following:

  • Marginal note:Rebate paid by registrant

    (8) If

    • (a) a registrant makes a supply of a tour package that includes short-term accommodation or camping accommodation to a non-resident recipient who either is an individual or is acquiring the tour package for use in the course of a business of the recipient or for supply in the ordinary course of a business of the recipient of making supplies of tour packages,

• Marginal note:1993, c. 27, s. 107(1); 2000, c. 30, s. 68(11)

  (8) Paragraph 252.1(8)(c) of the Act is replaced by the following:

  • (c) the amount paid or credited is equal to the amount that would be determined in respect of the supply under paragraph (5)(b), and

• Marginal note:1993, c. 27, s. 107(1)

  (9) The portion of subparagraph 252.1(8)(d)(ii) of the Act before clause (A) is replaced by the following:

  • (ii) if the supply of the tour package includes the short-term accommodation or camping accommodation and also includes other property or services (other than meals or property or services that are provided or rendered by the person who provides the accommodation and in connection with it), a deposit of at least 20% of the total consideration for the tour package is paid

• (10) Section 252.1 of the Act is amended by adding the following after subsection (9):

  • Marginal note:Filing of information

    (10) If, in accordance with subsection (8), a registrant

    • (a) pays to, or credits in favour of, a person an amount on account of a rebate, and

    • (b) in determining the registrant’s net tax for a reporting period, claims a deduction under subsection 234(2) in respect of the amount paid or credited,

    the registrant shall file with the Minister prescribed information in respect of the amount in prescribed form and in prescribed manner on or before the day on or before which the registrant’s return under Division V for the reporting period in which the amount is deducted is required to be filed.

• (11) Subsections (1) to (9) apply in respect of any supply of short-term accommodation, camping accommodation or a tour package that includes short-term accommodation or camping accommodation, for which accommodation is first made available after March 2007, unless

  • (a) the accommodation is not included in a tour package, is first made available before April 2009 and is supplied under an agreement in writing entered into before September 25, 2006; or

  • (b) the accommodation is included in a tour package, the first night of accommodation in Canada included in the tour package is made available before April 2009 and the tour package is supplied under an agreement in writing entered into before September 25, 2006.

• (12) Subsection (10) applies in respect of any supply of a tour package

  • (a) for which tax under Part IX of the Act becomes payable after March 2007; and

  • (b) for which the supplier claimed an amount as a deduction under subsection 234(2) of the Act in respect of an amount that the supplier paid to, or credited in favour of, a non-resident person after March 2007.

Marginal note:2000, c. 30, s. 69(2)

• 48. (1) Section 252.2 of the Act is amended by adding the word “and” at the end of paragraph (e) and by repealing paragraph (f).

• (2) Subsection (1) applies for the purpose of determining any rebate under section 252 or 252.1 of the Act, unless the rebate is in respect of short-term accommodation, or camping accommodation, not included in a tour package and the rebate is determined in accordance with the formula in subsection 252.1(4) of the Act.

Marginal note:1993, c. 27, s. 107(1)

• 49. (1) Paragraph 252.4(1)(a) of the French version of the Act is replaced by the following:

  • a) la fourniture de biens ou de services relatifs au congrès, effectué par un inscrit qui est l’organisateur du congrès;

• Marginal note:2000, c. 30, s. 70(3)

  (2) Paragraphs 252.4(3)(a) and (b) of the Act are replaced by the following:

  • (a) the tax paid by the organizer calculated on that part of the consideration for the supply or on that part of the value of property that is reasonably attributable to the convention facility or related convention supplies other than property or services that are food or beverages or are supplied under a contract for catering, and

  • (b) 50% of the tax paid by the organizer calculated on that part of the consideration for the supply or on that part of the value of property that is reasonably attributable to related convention supplies that are food or beverages or are supplied under a contract for catering.

• (3) Section 252.4 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Filing of information

    (5) If, in accordance with subsection (2) or (4), a registrant

    • (a) pays to, or credits in favour of, a person an amount on account of a rebate, and

    • (b) in determining the registrant’s net tax for a reporting period, claims a deduction under subsection 234(2) in respect of the amount paid or credited,

    the registrant shall file with the Minister prescribed information in respect of the amount in prescribed form and in prescribed manner on or before the day on or before which the registrant’s return under Division V for the reporting period in which the amount is deducted is required to be filed.

• (4) Subsections (1) and (2) apply in respect of the supply, importation or bringing into a participating province of property or services in relation to, or in connection with, a convention that begins after March 2007, except that those subsections do not apply in respect of a supply of property or services in relation to, or in connection with, a convention that begins before April 2009 if the supply is made under an agreement in writing entered into before September 25, 2006.

• (5) Subsection (3) applies in respect of any supply relating to a foreign convention

  • (a) for which tax under Part IX of the Act becomes payable after March 2007; and

  • (b) for which the supplier claimed an amount as a deduction under subsection 234(2) of the Act in respect of an amount that the supplier paid to, or credited in favour of, a person after March 2007.