Provincial Choice Tax Framework Act (S.C. 2009, c. 32)
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Assented to 2009-12-15
R.S., c. E-15EXCISE TAX ACT
24. (1) Paragraph (b) of the description of A in subsection 236.2(2) of the Act is replaced by the following:
(b) the total of all amounts each of which is the product obtained when the consideration paid or payable by the registrant for a supply made in a participating province of an item of inventory acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, is multiplied by the total of the rate set out in subsection 165(1) and the tax rate for that participating province, and
(2) Subsection (1) applies in respect of any supply made on or after July 1, 2010.
25. (1) Paragraph (b) of the description of A in subsection 236.3(2) of the Act is replaced by the following:
(b) the total of all amounts each of which is the product obtained when the consideration paid or payable by the registrant for a supply made in a participating province of property acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.2 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, is multiplied by the total of the rate set out in subsection 165(1) and the tax rate for that participating province, and
(2) Subsection (1) applies in respect of any supply made on or after July 1, 2010.
26. (1) The description of F in subsection 253(1) of the Act is replaced by the following:
- F
- is the percentage determined in prescribed manner, and
(2) The description of H in subsection 253(1) of the Act is replaced by the following:
- H
- is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and
(3) The description of E in subparagraph 253(2)(a)(ii) of the Act is replaced by the following:
- E
- is the percentage determined in prescribed manner, and
(4) The description of G in subparagraph 253(2)(a)(ii) of the Act is replaced by the following:
- G
- is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and
(5) The description of E in subparagraph 253(2)(c)(ii) of the Act is replaced by the following:
- E
- is the percentage determined in prescribed manner, and
(6) The description of G in subparagraph 253(2)(c)(ii) of the Act is replaced by the following:
- G
- is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and
(7) Subsections (1) to (6) apply to any rebate in respect of 2010 and subsequent years.
27. (1) The portion of subsection 256(2.1) of the Act after paragraph (d) is replaced by the following:
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 amount determined in prescribed manner or, if no manner is prescribed, the lesser of $1,500 and 18.75% of the total tax in respect of the province paid by the particular individual.
(2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010.
28. (1) The Act is amended by adding the following after section 256.2:
Marginal note:Housing rebates — participating provinces
256.21 (1) If a sales tax harmonization agreement with the government of a participating province allows for rebates in respect of residential property relating to the new harmonized value-added tax system in respect of that participating province, the Minister shall pay in prescribed circumstances a rebate in respect of prescribed property to a prescribed person, or a person of a prescribed class, equal to an amount determined in prescribed manner.
Marginal note:Application for rebate
(2) A rebate in respect of an amount shall not be paid under subsection (1) to a person unless the person files an application for the rebate within the prescribed time.
Marginal note:Payment or credit of rebates
(3) In the case of a rebate under subsection (1) (other than a rebate prescribed under subsection (6)), in prescribed circumstances, a prescribed person, or a person of a prescribed class, may pay or credit the amount of a rebate under subsection (1) to an individual of a prescribed class if the individual submits to the person in prescribed manner an application in prescribed form containing prescribed information.
Marginal note:Forwarding of application
(4) If an application in respect of a rebate is submitted to a person under subsection (3)
(a) the person shall transmit the application to the Minister in prescribed manner on or before the day on or before which the person’s return under Division V for the reporting period in which the rebate is paid or credited is required to be filed; and
(b) interest under subsection 297(4) is not payable in respect of the rebate.
Marginal note:Joint and several liability — subsection (3)
(5) If a particular person pays or credits an amount of a rebate to another person under subsection (3), and the particular person knows or ought to know that the other person is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the other person is entitled, the particular person and the other person are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264.
Marginal note:Assignment
(6) In the case of a rebate that is payable under subsection (1) in relation to the transition of a province to the new harmonized value-added tax system and that is prescribed for the purposes of this subsection, a person that is prescribed for the purposes of subsection (1) may, despite section 67 of the Financial Administration Act and any other provision of a law of Canada or a province, assign the rebate in prescribed circumstances to a prescribed person or a person of a prescribed class.
Marginal note:Form and manner of assignment
(7) An assignment made under subsection (6) of a rebate in respect of a participating province shall be made in prescribed form containing prescribed information and the form shall be filed with the Minister in prescribed manner on or before the day that is four years after the harmonization date for the participating province.
Marginal note:Effect of assignment
(8) An assignment made under subsection (6) is not binding on Her Majesty in right of Canada and, without limiting the generality of the foregoing,
(a) the Minister is not required to pay to the assignee the assigned amount;
(b) the assignment does not create any liability of Her Majesty in right of Canada to the assignee; and
(c) the rights of the assignee are subject to all equitable and statutory rights of set-off in favour of Her Majesty in right of Canada.
Marginal note:Joint and several liability — subsection (6)
(9) If an amount of a rebate is assigned to a particular person by another person under subsection (6) and the particular person knows or ought to know that the other person is not entitled to the rebate or that the amount assigned exceeds the rebate to which the other person is entitled, the particular person and the other person are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264.
Marginal note:Assessment
(10) The Minister may at any time assess an assignee in respect of any amount payable by reason of subsection (9) and sections 296 to 311 apply with any modifications that the circumstances may require.
(2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010.
29. (1) The definition “specified provincial percentage” in subsection 259(1) of the Act is amended by striking out “and” at the end of paragraph (e) and by replacing paragraph (f) with the following:
(f) despite any of paragraphs (a) to (e), if there is a sales tax harmonization agreement with the government of a participating province that allows for rebates in respect of public service bodies relating to the new harmonized value-added tax system in respect of the participating province and if the participating province is prescribed for the purposes of this paragraph, in the case of a person of a prescribed class resident in the participating province, the prescribed percentage for that class in respect of the participating province, and
(g) in any other case, 0%;
(2) Paragraph 259(3)(b) of the Act is replaced by the following:
(b) in the case of a person of a prescribed class resident in a participating province, the amount determined in prescribed manner for the purpose of the new harmonized value-added tax system or, in any other case, the amount equal to the specified provincial percentage of the non-creditable tax charged in respect of property or a service (other than a prescribed property or service) for the claim period.
(3) The portion of paragraph 259(4)(b) of the Act before the formula is replaced by the following:
(b) in the case of a person of a prescribed class resident in a participating province, the amount determined in prescribed manner for the purpose of the new harmonized value-added tax system or, in any other case, all amounts, each of which is an amount determined by the formula
(4) The portion of subsection 259(4.1) of the Act before paragraph (a) is replaced by the following:
Marginal note:Apportionment of rebate
(4.1) Subject to subsections (4.2) and (4.21), if a person is a charity, a public institution or a qualifying non-profit organization, and is a selected public service body, the rebate, if any, payable to the person under subsection (3) or (4) in respect of property or a service for a claim period is equal to, in the case of a person of a prescribed class resident in a participating province, the amount determined in prescribed manner for the purpose of the new harmonized value-added tax system and, in any other case, the total of
(5) Subsections (1) to (4) apply for the purposes of determining a rebate under section 259 of the Act of a person for claim periods ending on or after July 1, 2010, except that the rebate shall be determined as if those subsections had not come into force for the purposes of determining a rebate of a person for the claim period that includes that day in respect of
(a) an amount of tax that became payable by the person before that day;
(b) an amount that is deemed to have been paid or collected by the person before that day; or
(c) an amount that is required to be added in determining the person’s net tax
(i) as a result of a branch or division of the person becoming a small supplier before that day, or
(ii) as a result of the person ceasing before that day to be a registrant.
- Date modified: