Jobs and Economic Growth Act (S.C. 2010, c. 12)
Full Document:
Assented to 2010-07-12
63. (1) The Act is amended by adding the following after section 218:
Marginal note:Imposition of goods and services tax
218.01 Subject to this Part, every qualifying taxpayer shall, for each specified year of the qualifying taxpayer, pay to Her Majesty in right of Canada tax equal to
(a) if an election under subsection 217.2(1) is in effect for the specified year, the amount determined by the formula
[(A + B) × (C/D) × E] + [(A + B) × ((D – C)/D) × F]
where
- A
- is the total of all amounts, each of which is an internal charge for the specified year that is greater than zero,
- B
- is the total of all amounts, each of which is an external charge for the specified year that is greater than zero,
- C
- is the number of days in the specified year before
(i) if the specified year begins before July 2006, July 2006, and
(ii) in any other case, January 2008,
- D
- is the total number of days in the specified year,
- E
- is
(i) if the specified year begins before July 2006, 7%, and
(ii) in any other case, 6%, and
- F
- is
(i) if the specified year begins before July 2006, 6%, and
(ii) in any other case, 5%; and
(b) in any other case, the amount determined by the formula
[G × (H/I) × J] + [G × ((I – H)/I) × K]
where
- G
- is the total of all amounts, each of which is qualifying consideration for the specified year that is greater than zero,
- H
- is the number of days in the specified year before
(i) if the specified year begins before July 2006, July 2006, and
(ii) in any other case, January 2008,
- I
- is the total number of days in the specified year,
- J
- is
(i) if the specified year begins before July 2006, 7%, and
(ii) in any other case, 6%, and
- K
- is
(i) if the specified year begins before July 2006, 6%, and
(ii) in any other case, 5%.
(2) Section 218.01 of the Act, as enacted by subsection (1), is replaced by the following:
Marginal note:Imposition of goods and services tax
218.01 Subject to this Part, every qualifying taxpayer shall, for each specified year of the qualifying taxpayer, pay to Her Majesty in right of Canada tax calculated at the rate of 5% on
(a) if an election under subsection 217.2(1) is in effect for the specified year, the amount determined by the formula
A + B
where
- A
- is the total of all amounts, each of which is an internal charge for the specified year that is greater than zero, and
- B
- is the total of all amounts, each of which is an external charge for the specified year that is greater than zero; and
(b) in any other case, the total of all amounts, each of which is qualifying consideration for the specified year that is greater than zero.
(3) Subsection (1) applies to any specified year of a qualifying taxpayer that ends after November 16, 2005 and begins before January 2008.
(4) Subsection (2) applies to any specified year of a qualifying taxpayer that begins after December 2007.
Marginal note:2000, c. 30, s. 46(2); 2007, c. 35, s. 3(1)
64. (1) Paragraphs 218.1(1)(c) and (d) of the Act are replaced by the following:
(c) every person that is the recipient of a supply, included in any of paragraphs (b.1) to (b.3) of the definition “imported taxable supply” in section 217, of property that is delivered or made available to the person in a particular participating province and that is either resident in that province or is a registrant, and
(d) every person that is the recipient of a supply that is included in paragraph (c.1), (d) or (e) of the definition “imported taxable supply” in section 217 and that is made in a particular participating province
(2) Section 218.1 of the Act is amended by adding the following after subsection (1.1):
Marginal note:Tax in a participating province
(1.2) Subject to this Part, every qualifying taxpayer that is resident in a participating province shall, for each specified year of the qualifying taxpayer and for each particular participating province in which the qualifying taxpayer is resident at any time in the specified year, pay to Her Majesty in right of Canada, in addition to the tax payable under section 218.01, tax calculated at the tax rate for the particular participating province on
(a) if an election under subsection 217.2(1) is in effect for the specified year, the amount determined by the formula
A + B
where
- A
- is the total of all amounts, each of which is an amount in respect of an internal charge for the specified year that is greater than zero determined by the formula
A1 × A2
where
- A1
- is the internal charge, and
- A2
- is the extent (expressed as a percentage) to which the internal charge is attributable to outlays or expenses that were made or incurred to consume, use or supply the whole or part of property or of a qualifying service, in respect of which the internal charge is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in the particular participating province, and
- B
- is the total of all amounts, each of which is an amount in respect of an external charge for the specified year that is greater than zero determined by the formula
B1 × B2
where
- B1
- is the external charge, and
- B2
- is the extent (expressed as a percentage) to which the whole or part of the outlay or expense, which corresponds to the external charge, was made or incurred to consume, use or supply the whole or part of property or of a qualifying service, in respect of which the external charge is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in the particular participating province; and
(b) in any other case, the total of all amounts, each of which is an amount in respect of qualifying consideration for the specified year that is greater than zero determined by the formula
C × D
where
- C
- is the qualifying consideration, and
- D
- is the extent (expressed as a percentage) to which the whole or part of the outlay or expense, which corresponds to the qualifying consideration, was made or incurred to consume, use or supply the whole or part of property or of a qualifying service, in respect of which the qualifying consideration is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in the particular participating province.
Marginal note:Qualifying taxpayer resident in a province
(1.3) Despite section 132.1 and for the purposes of subsection (1.2), a qualifying taxpayer is deemed to be resident in a province at any time if, at that time,
(a) the qualifying taxpayer has a qualifying establishment in the province; or
(b) in the case of a qualifying taxpayer that is resident in Canada, the qualifying taxpayer is
(i) a corporation incorporated or continued under the laws of the province and not continued elsewhere,
(ii) an entity that is a partnership, an unincorporated society, a club, an association or an organization, or a branch of such an entity, in respect of which a majority of the members having management and control of the entity or branch are resident in the province, or
(iii) a trust, carrying on activities as a trust in the province, that has a local office or branch in the province.
(3) The portion of subsection 218.1(1.2) of the Act, as enacted by subsection (2), before paragraph (a) is replaced by the following:
Marginal note:Tax in a participating province
(1.2) Subject to this Part, every qualifying taxpayer that is resident in a participating province shall, for each specified year of the qualifying taxpayer and for each particular participating province, pay to Her Majesty in right of Canada, in addition to the tax payable under section 218.01, tax calculated at the tax rate for the particular participating province on
Marginal note:2000, c. 30, s. 46(3)
(4) The portion of subsection 218.1(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Selected listed financial institutions
(2) If tax under subsection (1) or (1.2) would, in the absence of this subsection, become payable by a person when the person is a selected listed financial institution, that tax is not payable unless it is an amount of tax that
(5) Subsections (1), (2) and (4) apply to any specified year of a person that ends after November 16, 2005, except that for supplies made on or before March 19, 2007, paragraph 218.1(1)(d) of the Act, as amended by subsection (1), shall be read without reference to “(c.1)”.
(6) Subsection (3) applies to any specified year of a person that ends after June 2010.
(7) Despite subsections (5) and (6), the amount of tax payable by a person under subsection 218.1(1.2) of the Act, as enacted by subsections (2) and (3), for the specified year of the person that begins before July 1, 2010 and ends on or after that day and for Ontario or British Columbia is equal to the amount determined by the formula
A × (B/C)
where
- A
- is the amount that, in the absence of this subsection, would be tax payable under subsection 218.1(1.2) of the Act, as enacted by subsections (2) and (3), for the specified year and for Ontario or British Columbia, as the case may be;
- B
- is the number of days in the specified year that are after June 2010; and
- C
- is the number of days in the specified year.
- Date modified: