Budget Implementation Act, 2016, No. 2 (S.C. 2016, c. 12)

SOR/91-51; SOR/99–368, s. 1; SOR/2006-162, s. 5Streamlined Accounting (GST/HST) Regulations

• 96 (1) The definition eligible capital property in subsection 2(1) of the Streamlined Accounting (GST/HST) Regulations is repealed.

• (2) The definition capital asset in subsection 2(1) of the Regulations is replaced by the following:

  capital asset

  capital asset of a person means

  • (a) property that is, or would be if the person were a taxpayer under the Income Tax Act, capital property of the person within the meaning of that Act, and

  • (b) in respect of a supply that was made by the person at any time before January 1, 2017, property that was, or would have been if the person were a taxpayer under the Income Tax Act, eligible capital property of the person within the meaning of that Act as it read at that time; (bien immobilisé)

• (3) The descriptions of A and B in subsection 2(2) of the Regulations are replaced by the following:

  A

  is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) that became due, or was paid without having become due, to the registrant in the threshold period for the reporting period for taxable supplies (other than supplies of financial services, supplies by way of sale of real property or capital assets of the registrant and supplies deemed under subsection 177(1.2) of the Act to be made by the registrant) that are or would be, but for that subsection, made in Canada by the registrant;

  B

  is the total of all tax under Division II that became collectible in the threshold period in respect of taxable supplies (other than supplies of financial services, supplies by way of sale of real property or capital assets of the registrant and supplies deemed under subsection 177(1.2) of the Act to be made by the registrant) that are or would be, but for that subsection, made in Canada by the registrant; and

• (4) The descriptions of A and B in paragraph 2(3)(a) of the Regulations are replaced by the following:

  A

  is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property or capital assets of the registrant) made by the registrant that became due, or was paid without having become due, to the registrant in the threshold period for the reporting period,

  B

  is the total of all tax under Division II that became collectible in the threshold period in respect of taxable supplies (other than supplies of financial services and supplies by way of sale of real property or capital assets of the registrant) made by the registrant, and

• (5) The descriptions of D and E in paragraph 2(3)(b) of the Regulations are replaced by the following:

  D

  is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property or capital assets of the associate) made by the associate that became due, or was paid without having become due, to the associate in the particular fiscal year,

  E

  is the total of all tax under Division II that became collectible in the particular fiscal year in respect of taxable supplies (other than supplies of financial services and supplies by way of sale of real property or capital assets of the associate) made by the associate, and

• (6) Subsection (1) applies in respect of supplies made after 2016.

• (7) Subsections (2) to (5) come into force or are deemed to have come into force on January 1, 2017.

• 97 (1) The definition specified property in subsection 15(1) of the Regulations is replaced by the following:

  specified property

  specified property, in respect of a person, means property of the person other than real property and capital assets of the person; (bien déterminé)

• (2) Paragraph (a) of the definition specified supply in subsection 15(1) of the Regulations is replaced by the following:

  • (a) a supply by way of sale of real property or capital assets of the supplier,

• (3) Subsections (1) and (2) come into force or are deemed to have come into force on January 1, 2017.

• 98 (1) The definition specified property in subsection 19(1) of the Regulations is repealed.

• (2) Paragraph (a) of the definition designated supply in subsection 19(1) of the Regulations is replaced by the following:

  • (a) a supply by way of sale of real property or capital assets of the supplier,

• (3) Paragraphs (b) and (c) of the definition specified supply in subsection 19(1) of the Regulations are replaced by the following:

  • (b) a supply by way of sale of a capital asset of the registrant that has a fair market value at the time of the supply of at least $10,000,

  • (c) a supply made by the registrant by way of sale of a capital asset of the registrant if the registrant has claimed, or is entitled to claim, an input tax credit in respect of the last supply to, or importation by, the registrant of the capital asset,

• (4) The description of B in subparagraph 19(3)(c)(i) of the Regulations is replaced by the following:

  B

  is the total of all tax under Division II that became collectible in the fiscal year of the registrant immediately before the particular fiscal year in respect of taxable supplies (other than supplies by way of sale of real property or capital assets of the registrant) made by the registrant, and

• (5) Subsections (1) to (4) come into force or are deemed to have come into force on January 1, 2017.

• 99 (1) Subparagraphs (a)(ii) and (iii) of the description of C in subsection 21(1) of the Regulations are replaced by the following:

  • (ii) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of a supply by way of sale to, importation by, or bringing into a participating province by, the registrant of personal property that is acquired, imported or brought into the participating province by the registrant for use as a capital asset of the registrant and that has a fair market value at the time of the supply or bringing into the province, or a value as determined under section 215 of the Act at the time of the importation, of at least $10,000,

  • (iii) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of an improvement to a capital asset (other than real property) of the registrant, if the registrant has claimed, or is entitled to claim, an input tax credit in respect of the last supply to, or importation by, the registrant of the capital asset,

• (2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2017.

PART 32002, c. 22Excise Act, 2001

• 100 (1) Subsection 191(3) of the Excise Act, 2001 is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):

  • (c) to give effect to an alternative basis or argument advanced by the Minister under subsection (7).

• (2) The portion of subsection 191(7) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Alternative basis or argument

    (7) The Minister may advance an alternative basis or argument in support of an assessment of a person, or in support of all or any portion of the total amount determined on assessment to be payable or remittable by a person under this Act, at any time after the period otherwise limited by subsection (1) or (2) for making the assessment unless on an appeal under this Act

• (3) Section 191 of the Act is amended by adding the following after subsection (7):

  • Marginal note:Limitation

    (7.1) If a reassessment of a person is made that gives effect to an alternative basis or argument advanced by the Minister under subsection (7) in support of a particular assessment of the person, the Minister shall not reassess for an amount that is greater than the total amount of the particular assessment.

  • Marginal note:Exception

    (7.2) Subsection (7.1) does not apply to any portion of an amount determined on reassessment that the Minister would be entitled to reassess under this Act at any time after the period otherwise limited by subsection (1) or (2) for making the reassessment if this Act were read without reference to subsection (7).

• (4) Subsections (1) to (3) come into force on the day on which this Act receives royal assent except that those subsections do not apply in respect of appeals instituted on or before that day.