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Budget Implementation Act, 2017, No. 2 (S.C. 2017, c. 33)

Assented to 2017-12-14

  • 127 (1) The portion of paragraph 218.1(1)(a) of the Act before the formula is replaced by the following:

    • (a) every person that is resident in a participating province and is the recipient of an imported taxable supply that is a supply of intangible personal property or a service that is acquired by the person for consumption, use or supply in participating provinces to an extent that is prescribed must, for each time an amount of consideration for the supply becomes due or is paid without having become due and for each participating province, pay to Her Majesty in right of Canada, in addition to the tax imposed by section 218, tax equal to the amount determined by the formula

  • (2) The description of C in paragraph 218.1(1)(a) of the Act is replaced by the following:

    C
    is the extent (expressed as a percentage) to which the person acquired the property or service for consumption, use or supply in the participating province; and

  • (3) Subparagraph 218.1(1)(b)(ii) of the Act is replaced by the following:

    • (ii) is the recipient of a supply, included in any of paragraphs (b.01) 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 is either resident in that province or is a registrant, or

  • (4) Clause (B) of the description of C in paragraph 218.1(1)(b) of the Act is replaced by the following:

    • (B) in any other case, the extent (expressed as a percentage) to which the person acquired the property for consumption, use or supply in the particular participating province.

  • (5) The description of A2 in the description of A in paragraph 218.1(1.2)(a) of the Act is replaced by the following:

    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

  • (6) The description of B2 in the description of B in paragraph 218.1(1.2)(a) of the Act is replaced by the following:

    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

  • (7) The description of D in paragraph 218.1(1.2)(b) of the Act is replaced by the following:

    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.

  • (8) Subsections (1) to (4) apply in respect of any supply made after July 22, 2016.

  • (9) Subsections (5) to (7) apply in respect of any specified year of a person that ends after July 22, 2016.

  • 128 (1) Subsection 220.05(3.1) of the Act is amended by striking out “or” at the end of paragraph (a) and by replacing paragraph (b) with the following:

    • (b) the amount determined for the pension plan under the description of B in paragraph 172.1(5.1)(c) in respect of a supply of the same property that is deemed to have been made by the participating employer under paragraph 172.1(5.1)(a) is greater than zero;

    • (c) the amount determined for B in paragraph 172.1(6)(c) in respect of every supply deemed to have been made under paragraph 172.1(6)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero; or

    • (d) the amount determined for the pension plan under the description of B in paragraph 172.1(6.1)(c) in respect of every supply deemed to have been made under paragraph 172.1(6.1)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero.

  • (2) Subsection (1) is deemed to have come into force on July 22, 2016.

  • 129 (1) Subsection 220.08(1) of the Act is replaced by the following:

    Marginal note:Tax in participating province

    • 220.08 (1) Subject to this Part, every person that is resident in a participating province and is the recipient of a taxable supply made in a particular province of intangible personal property or a service that is acquired by the person for consumption, use or supply in whole or in part in any participating province that is not the particular province must pay to Her Majesty in right of Canada, each time an amount of consideration for the supply becomes due or is paid without having become due, tax equal to the amount determined in prescribed manner.

  • (2) Subsection 220.08(3.1) of the Act is amended by striking out “or” at the end of paragraph (a) and by replacing paragraph (b) with the following:

    • (b) the amount determined for the pension plan under the description of B in paragraph 172.1(5.1)(c) in respect of a supply of the same property or service that is deemed to have been made by the participating employer under paragraph 172.1(5.1)(a) is greater than zero;

    • (c) the amount determined for B in paragraph 172.1(6)(c) in respect of every supply deemed to have been made under paragraph 172.1(6)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero; or

    • (d) the amount determined for the pension plan under the description of B in paragraph 172.1(6.1)(c) in respect of every supply deemed to have been made under paragraph 172.1(6.1)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero.

  • (3) Subsection (1) applies in respect of any supply made after July 22, 2016.

  • (4) Subsection (2) is deemed to have come into force on July 22, 2016.

  • 130 (1) The description of B in subsection 225.1(2) of the Act is amended by adding the following after paragraph (b):

    • (b.1) 60% of the total of all amounts that may be deducted by the charity under paragraph 232.01(5)(a) or 232.02(4)(a) in determining the net tax for the particular reporting period and that are claimed in the return under this Division filed for that reporting period,

  • (2) Subsection (1) applies in respect of any reporting period of a person that ends after September 22, 2009.

  • (3) If, in assessing under section 296 of the Act the net tax for a reporting period of a charity, an amount was not included in the total for B in subsection 225.1(2) of the Act and, as a result of the application of subsection (1), the amount is to be included in paragraph (b.1) of the description of B in subsection 225.1(2) of the Act in determining the net tax for the reporting period, the charity 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 is to be included in that paragraph 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 charity, solely for the purpose of taking into account that the amount is to be included in paragraph (b.1) of the description of B in subsection 225.1(2) of the Act in determining the net tax for the reporting period.

  • 131 (1) Paragraph (c) of the description of A in subsection 225.2(2) of the Act is replaced by the following:

    • (c) all amounts each of which is an amount, in respect of a supply made during the particular reporting period of property or a service to which the financial institution and another person have elected to have this paragraph apply, equal to tax calculated at the rate set out in subsection 165(1) on the cost to the other person of supplying the property or service to the financial institution excluding any remuneration to employees of the other person, the cost of financial services and tax under this Part;

  • (2) Paragraph (c) of the description of A in subsection 225.2(2) of the Act, as enacted by subsection (1), is replaced by the following:

    • (c) all amounts each of which is an amount — in respect of a supply of property or a service that is made during the particular reporting period by another person to the financial institution and to which the financial institution has elected to have this paragraph apply — equal to tax calculated at the rate set out in subsection 165(1) on the cost to the other person of supplying the property or service to the financial institution excluding any remuneration to employees of the other person, the cost of financial services and tax under this Part;

  • (3) Paragraph (b) of the description of F in subsection 225.2(2) of the Act is replaced by the following:

    • (b) all amounts each of which is an amount — in respect of a supply of property or a service that is made during the particular reporting period by another person to the financial institution and to which the financial institution has elected to have paragraph (c) of the description of A apply — equal to tax payable by the other person under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 that is included in the cost to the other person of supplying the property or service to the financial institution; and

  • (4) Subsections 225.2(4) and (5) of the Act are replaced by the following:

    • Marginal note:Election

      (4) If a person, other than a prescribed person or a person of a prescribed class, and a selected listed financial institution have made jointly an election under section 150, the financial institution may make an election, in prescribed form containing prescribed information, to have paragraph (c) of the description of A in subsection (2) apply to every supply to which subsection 150(1) applies that is made by the person to the financial institution at a time the election made under this subsection is in effect.

  • (5) The portion of subsection 225.2(6) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Effective period of election

      (6) An election made under subsection (4) by a selected listed financial institution in respect of supplies made by a person to the financial institution shall be effective for the period beginning on the day specified in the election and ending on the earliest of

  • (6) Paragraph 225.2(6)(b) of the Act is replaced by the following:

    • (b) the day specified in a revocation of the election made under subsection (6.1),

  • (7) Section 225.2 of the Act is amended by adding the following after subsection (6):

    • Marginal note:Revocation

      (6.1) A selected listed financial institution that has made an election under subsection (4) may revoke the election, in prescribed form containing prescribed information, effective on the day specified in the revocation, which day is at least 365 days after the day on which the election becomes effective.

    • Marginal note:Notice of election

      (6.2) If a particular selected listed financial institution has made an election under subsection (4) in respect of supplies made by another selected listed financial institution to the particular financial institution, the particular financial institution shall, in a manner satisfactory to the Minister,

      • (a) notify the other financial institution of the election and of the day it becomes effective on or before that day or any later day that the Minister may allow; and

      • (b) if the election ceases to be effective, notify the other financial institution of the day that the election ceases to be effective on or before that day or any later day that the Minister may allow.

  • (8) Subsection (1) applies in respect of any reporting period of a person that ends after June 2010.

  • (9) Subsections (2) to (5) and subsection 225.2(6.2) of the Act, as enacted by subsection (7), apply in respect of any election made under subsection 225.2(4) of the Act that becomes effective after the day on which this Act receives royal assent.

  • (10) Subsection (6) and subsection 225.2(6.1) of the Act, as enacted by subsection (7), apply in respect of any revocation that becomes effective after the day on which this Act receives royal assent.

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