Budget Implementation Act, 2017, No. 2 (S.C. 2017, c. 33)
Full Document:
Assented to 2017-12-14
122 (1) Subparagraph 180(a)(ii) of the Act is replaced by the following:
(ii) if the particular person is a registrant, causes physical possession of tangible personal property (other than property of a person that is resident in Canada) to be transferred in Canada to the particular person in circumstances in which the particular person is acquiring physical possession of the property for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the non-resident person,
(2) Subsection (1) applies in respect of supplies made after July 22, 2016.
123 (1) Paragraph 183(1)(b) of the French version of the Act is replaced by the following:
b) pour l’application de la présente partie, sauf les articles 193 et 257, cette fourniture est réputée avoir été effectuée sans contrepartie;
(2) Paragraph 183(10.1)(d) of the French version of the Act is replaced by the following:
d) le rachat du bien est réputé en être une fourniture par vente effectuée sans contrepartie par l’acquéreur de la première fourniture au profit du débiteur;
124 Paragraph 184(1)(b) of the French version of the Act is replaced by the following:
b) pour l’application de la présente partie, sauf les articles 193 et 257, cette fourniture est réputée avoir été effectuée sans contrepartie;
125 (1) Paragraph (b) of the definition imported taxable supply in section 217 of the Act is replaced by the following:
(b) a taxable supply (other than a zero-rated or prescribed supply) of tangible personal property made by a non-resident person that is not registered under Subdivision D of Division V to a recipient that is a registrant if
(i) the recipient gives to another registrant a certificate described in paragraph 179(2)(d) in respect of an acquisition of physical possession of the property by the recipient, and
(ii) the recipient is not acquiring the property for consumption, use or supply exclusively in the course of its commercial activities or the property is a passenger vehicle that the recipient is acquiring for use in Canada as capital property in its commercial activities and that has a capital cost to the recipient exceeding the amount deemed under paragraph 13(7)(g) or (h) of the Income Tax Act to be the capital cost of the vehicle to the recipient for the purposes of section 13 of that Act;
(2) The definition imported taxable supply in section 217 of the Act is amended by adding the following after paragraph (b):
(b.01) a taxable supply (other than a zero-rated or prescribed supply) of tangible personal property made by way of sale by a non-resident person that is not registered under Subdivision D of Division V to a recipient that is a registrant if
(i) the recipient gives to another registrant a certificate described in subparagraph 179(2.1)(e)(i) in respect of an acquisition of physical possession of the property by a third person, and
(ii) the recipient is not acquiring the property for consumption, use or supply exclusively in the course of its commercial activities or the property is a passenger vehicle that the recipient is acquiring for use in Canada as capital property in its commercial activities and that has a capital cost to the recipient exceeding the amount deemed under paragraph 13(7)(g) or (h) of the Income Tax Act to be the capital cost of the vehicle to the recipient for the purposes of section 13 of that Act;
(3) Subparagraph (b.01)(i) of the definition imported taxable supply in section 217 of the Act, as enacted by subsection (2), is replaced by the following:
(i) the recipient gives to another registrant a certificate described in subparagraph 179(3)(c)(i) in respect of an acquisition of physical possession of the property by a third person, and
(4) Paragraph (b.1) of the definition imported taxable supply in section 217 of the Act is replaced by the following:
(b.1) a taxable supply (other than a zero-rated or prescribed supply) of tangible personal property made by way of sale at a particular time by a non-resident person that is not registered under Subdivision D of Division V to a recipient that is a registrant if
(i) the recipient acquires physical possession of the property as the recipient of another supply of the property made by way of lease, licence or similar arrangement and either
(A) gives to another registrant a certificate described in paragraph 179(2)(d) in respect of that acquisition of physical possession of the property, or
(B) claims an input tax credit in respect of tax that is deemed to have been paid or payable by the recipient under subsection 178.8(2) or paragraph 180(d) in respect of the property, and
(ii) the recipient is not acquiring, as the recipient of the taxable supply, the property for consumption, use or supply exclusively in the course of its commercial activities or the property is a passenger vehicle that the recipient is acquiring for use in Canada as capital property in its commercial activities and that has a capital cost to the recipient exceeding the amount deemed under paragraph 13(7)(g) or (h) of the Income Tax Act to be the capital cost of the vehicle to the recipient for the purposes of section 13 of that Act;
(5) Paragraph (f) of the definition permitted deduction in section 217 of the English version of the Act is replaced by the following:
(f) qualifying compensation of an employee of the qualifying taxpayer that is paid in the specified year by the qualifying taxpayer if the employee was primarily in Canada while performing the employee’s duties during the specified year;
(6) Subsections (1), (3) and (4) apply in respect of supplies made after the day on which this Act receives royal assent.
(7) Subsection (2) applies in respect of supplies made after July 22, 2016.
126 (1) The portion of subsection 217.1(6) of the Act before paragraph (a) is replaced by the following:
Marginal note:Qualifying rule for credits and rebates
(6) If an amount (in this subsection referred to as a “qualifying expenditure”) of qualifying consideration, or of an external charge, of a qualifying taxpayer in respect of an outlay made, or expense incurred, outside Canada is greater than zero and, during a reporting period of the qualifying taxpayer during which the qualifying taxpayer is a registrant, tax under section 218.01 or subsection 218.1(1.2) in respect of the qualifying expenditure becomes payable by the qualifying taxpayer or is paid by the qualifying taxpayer without having become payable, the following rules apply for the purpose of determining an input tax credit or an eligible amount, as defined in subsection 261.01(1), of the qualifying taxpayer:
(2) The portion of subsection 217.1(7) of the Act before paragraph (a) is replaced by the following:
Marginal note:Qualifying rule for credits and rebates — internal charge
(7) If tax (in this subsection referred to as “internal tax”) under section 218.01 or subsection 218.1(1.2) in respect of an internal charge becomes payable by a qualifying taxpayer, or is paid by the qualifying taxpayer without having become payable, and the internal charge is determined based in whole or in part on the inclusion of an outlay made, or an expense incurred, outside Canada by the qualifying taxpayer, the following rules apply for the purpose of determining an input tax credit or an eligible amount, as defined in subsection 261.01(1), of the qualifying taxpayer:
(3) Subsections (1) and (2) apply in respect of any claim period of a person, as defined in subsection 259(1) of the Act, that begins after September 22, 2009.
(4) If, in assessing under section 297 of the Act a rebate under subsection 261.01(2) of the Act for a claim period of a pension entity, one or more particular amounts were not included as eligible amounts, as defined in subsection 261.01(1) of the Act, for the claim period in determining the amount of the rebate and, as a result of the application of subsections (1) and (2), those particular amounts are eligible amounts for the claim period, the pension entity is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that those particular amounts are eligible amounts for the claim period and, on receipt of the request, the Minister must with all due dispatch
(a) consider the request; and
(b) under sections 296 and 297 of the Act assess, reassess or make an additional assessment of the rebate under subsection 261.01(2) of the Act for the claim period, and of any interest, penalty or other obligation of the person, solely for the purpose of taking into account that the particular amounts are eligible amounts for the claim period.
(5) If, in assessing under section 296 of the Act the net tax for a reporting period of a qualifying employer, as defined in subsection 261.01(1) of the Act, of a pension plan that includes the day on which an election — made jointly under subsection 261.01(5), (6) or (9) of the Act by the qualifying employer and a pension entity of the pension plan — is filed with the Minister of National Revenue, an amount was not deducted under any of subsections 261.01(5), (6) and (9) of the Act and, as a result of the application of subsections (1) and (2), the amount may be deducted under any of subsections 261.01(5), (6) and (9) of the Act in determining the net tax for the reporting period, the qualifying employer is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the amount may be deducted under any of subsections 261.01(5), (6) and (9) of the Act in determining the net tax for the reporting period and, on receipt of the request, the Minister must with all due dispatch
(a) consider the request; and
(b) under section 296 of the Act assess, reassess or make an additional assessment of the net tax for the reporting period, and of any interest, penalty or other obligation of the qualifying employer, solely for the purpose of taking into account that the amount may be deducted under any of subsections 261.01(5), (6) and (9) of the Act in determining the net tax for the reporting period.
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