Jobs and Economic Growth Act (S.C. 2010, c. 12)
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Assented to 2010-07-12
PART 2AMENDMENTS IN RESPECT OF EXCISE DUTIES AND SALES AND EXCISE TAXES
R.S., c. E-15Excise Tax Act
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.
Marginal note:1997, c. 10, s. 203(1)
65. (1) Section 218.2 of the Act is replaced by the following:
Marginal note:When tax payable
218.2 Tax under this Division (other than tax under section 218.01 or subsection 218.1(1.2)) that is calculated on an amount of consideration for a supply that becomes due at any time, or is paid at any time without having become due, becomes payable at that time.
Marginal note:When tax payable
218.3 Tax under section 218.01 and subsection 218.1(1.2) that is determined for a specified year of a qualifying taxpayer becomes payable by the qualifying taxpayer on
(a) if the specified year is a taxation year of the qualifying taxpayer for the purposes of the Income Tax Act and the qualifying taxpayer is required under Division I of that Act to file a return of income for the specified year, the filing-due date for the specified year for the purposes of that Act; and
(b) in any other case, the day that is six months after the end of the specified year.
(2) Subsection (1) applies to any specified year of a qualifying taxpayer that ends after November 16, 2005.
Marginal note:1997, c. 10, s. 43(1)
66. (1) Paragraph 219(a) of the Act is replaced by the following:
(a) if the person is a registrant, the person shall, on or before the day on or before which the person’s return under section 238 for the reporting period in which the tax became payable is required to be filed, pay the tax to the Receiver General and
(i) if the person is not a qualifying taxpayer, report the tax in that return, or
(ii) if the person is a qualifying taxpayer, file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information; and
(2) Subsection (1) applies in respect of any reporting period that ends after November 16, 2005.
Marginal note:1990, c. 45, s. 12(1); 1993, c. 27, s. 84(1) and (2)
67. (1) Section 220 of the Act is replaced by the following:
Marginal note:Definitions
220. (1) The following definitions apply in this section.
“intangible capital”
« capital incorporel »
“intangible capital” of a specified person means any of the following that is consumed or used by the specified person in the process of creating, developing or bringing into existence intangible personal property:
(a) all or part of a labour activity of the specified person;
(b) all or part of property (other than intangible personal property described in paragraph (a) of the definition “intangible resource”); or
(c) all or part of a service.
“intangible resource”
« ressource incorporelle »
“intangible resource” of a specified person means
(a) all or part of intangible personal property supplied to, or created, developed or brought into existence by, the specified person that is not support capital of the specified person;
(b) intangible capital of the specified person; or
(c) any combination of the items referred to in paragraphs (a) and (b).
“labour activity”
« activité de main-d’oeuvre »
“labour activity” of a specified person means anything done by an employee of the specified person in the course of, or in relation to, the office or employment of the employee.
“support capital”
« capital d’appui »
“support capital” of a specified person means all or part of intangible personal property that is consumed or used by the specified person in the process of creating, developing or bringing into existence property (other than intangible personal property) or in supporting, assisting or furthering a labour activity of the specified person.
“support resource”
« ressource d’appui »
“support resource” of a specified person means
(a) all or part of property (other than intangible personal property) supplied to, or created, developed or brought into existence by, the specified person that is not intangible capital of the specified person;
(b) all or part of a service supplied to the specified person that is not intangible capital of the specified person;
(c) all or part of a labour activity of the specified person that is not intangible capital of the specified person;
(d) support capital of the specified person; or
(e) any combination of the items referred to in paragraphs (a) to (d).
Marginal note:Specified person and specified business
(2) For the purposes of this section,
(a) a person is a specified person throughout a taxation year of the person if the person
(i) carries on, at any time in the taxation year, a business through a permanent establishment of the person outside Canada, and
(ii) carries on, at any time in the taxation year, a business through a permanent establishment of the person in Canada; and
(b) a business of a person is a specified business of the person throughout a taxation year of the person if the business is carried on, at any time in the taxation year, in Canada through a permanent establishment of the person.
Marginal note:Internal use
(3) For the purposes of this section, internal use of a support resource, or of an intangible resource, of a specified person occurs during a taxation year of the specified person if
(a) the specified person at any time in the taxation year uses outside Canada any part of the resource in relation to the carrying on of a specified business of the specified person; or
(b) the specified person is permitted under the Income Tax Act, or would be so permitted if that Act applied to the specified person, to allocate for the taxation year, as an amount in respect of a specified business of the specified person,
(i) any part of an outlay made, or expense incurred, by the specified person in respect of any part of the resource, or
(ii) any part of an allowance, or allocation for a reserve, in respect of any part of such an outlay or expense.
Marginal note:Dealings between permanent establishments
(4) If internal use of a support resource of a specified person occurs during a taxation year of the specified person, the following rules apply:
(a) for the purposes of this Division, the specified person is deemed
(i) to have rendered, during the taxation year, a service of internally using the support resource at a permanent establishment of the specified person outside Canada in the course of carrying on a specified business of the specified person, and to be the person to which the service was rendered,
(ii) to be the recipient of a supply made outside Canada of the service, and
(iii) to be, in the case of a non-resident specified person, resident in Canada;
(b) for the purposes of this Division, the supply is deemed not to be a supply of a service that is in respect of
(i) real property situated outside Canada, or
(ii) tangible personal property that is situated outside Canada at the time the service is performed;
(c) for the purposes of this Division, the value of the consideration for the supply is deemed to be the total of all amounts, each of which is the fair market value of a part, or of the use of a part, as the case may be, of the support resource referred to in subsection (3)
(i) if the part is only referred to in paragraph (3)(a), at the time referred to in that paragraph, and
(ii) otherwise, on the last day of the taxation year;
(d) for the purposes of this Division, the consideration for the supply is deemed to have become due and to have been paid, on the last day of the taxation year, by the specified person; and
(e) for the purposes of section 217 and of determining an input tax credit of the specified person under this Part, the specified person is deemed to have acquired the service for the same purpose as that for which the part of the support resource referred to in subsection (3) was acquired, consumed or used by the specified person.
Marginal note:Dealings between permanent establishments
(5) If internal use of an intangible resource of a specified person occurs during a taxation year of the specified person, the following rules apply:
(a) for the purposes of this Division, the specified person is deemed
(i) to have made available, during the taxation year, at a permanent establishment of the specified person outside Canada intangible personal property in the course of carrying on a specified business of the specified person and to be the person to which the property was made available,
(ii) to be the recipient of a supply made outside Canada of the property, and
(iii) to be, in the case of a non-resident specified person, resident in Canada;
(b) for the purposes of this Division, the supply is deemed not to be a supply of property that relates to real property situated outside Canada, to a service to be performed wholly outside Canada or to tangible personal property situated outside Canada;
(c) for the purposes of this Division, the value of the consideration for the supply is deemed to be the total of all amounts, each of which is the fair market value of a part, or of the use of a part, as the case may be, of the intangible resource referred to in subsection (3)
(i) if the part is only referred to in paragraph (3)(a), at the time referred to in that paragraph, and
(ii) otherwise, on the last day of the taxation year;
(d) for the purposes of this Division, the consideration for the supply is deemed to have become due and to have been paid, on the last day of the taxation year, by the specified person; and
(e) for the purposes section 217 and of determining an input tax credit of the specified person under this Part, the specified person is deemed to have acquired the property for the same purpose as that for which the part of the intangible resource referred to in subsection (3) was acquired, consumed or used by the specified person.
(2) The portion of paragraph 220(2)(a) of the Act before subparagraph (i), as enacted as by subsection (1), is replaced by the following:
(a) a person (other than a financial institution) is a specified person throughout a taxation year of the person if the person
(3) Subsection (1) is deemed to have come into force on December 17, 1990.
(4) Subsection (2) applies to any taxation year of a person that ends after November 16, 2005.
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