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Budget Implementation Act, 2018, No. 2 (S.C. 2018, c. 27)

Assented to 2018-12-13

PART 2Amendments to the Excise Tax Act (GST/HST Measures) and to Related Legislation (continued)

R.S., c. E-15Excise Tax Act (continued)

  • 43 (1) Subsection 149(5) of the Act is amended by striking out “and” at the end of paragraph (f) and by adding the following after that paragraph:

    • (f.1) an investment limited partnership; and

  • (2) Subsection (1) applies in respect of

    • (a) any taxation year of a person that begins after 2018; and

    • (b) the taxation years of a person that begin in 2018 if the person elects to have subsection (1) apply in respect of those taxation years.

  • (3) An election under paragraph (2)(b) is to

    • (a) be made in prescribed form containing prescribed information; and

    • (b) be filed with the Minister of National Revenue in prescribed manner on or before the day that is 60 days after the day on which this Act receives royal assent or any later day that the Minister of National Revenue may allow.

  • (4) If a person makes an election under paragraph (2)(b), the references in subsection 244.1(4) of the Act, as enacted by subsection 46(1), to “2018” and “2019” are to be read as “2017” and “2018”, respectively, in applying that subsection 244.1(4) in respect of the person.

  • 44 (1) Section 221 of the Act is amended by adding the following after subsection (2):

    • Marginal note:Exception — emission allowance

      (2.1) A supplier (other than a prescribed supplier) that makes a taxable supply of an emission allowance is not required to collect tax under Division II payable by the recipient in respect of the supply.

  • (2) Subsection (1) is deemed to have come into force on June 27, 2018 but also applies in respect of any supply of an emission allowance made before that day if any amount of tax under Division II of Part IX of the Act that is payable in respect of the supply was not collected before that day, except that in respect of those supplies subsection 221(2.1) of the Act, as enacted by subsection (1), is to be read as follows:

    • (2.1) A supplier (other than a prescribed supplier) that makes a taxable supply of an emission allowance is not required to collect any amount of tax under Division II that is payable by the recipient in respect of the supply and that was not collected before June 27, 2018.

  • 45 (1) The portion of subsection 228(4) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Real property and emission allowance — self-assessment

      (4) If tax under Division II is payable by a person in respect of a supply of property that is real property or an emission allowance and the supplier is not required to collect the tax and is not deemed to have collected the tax,

  • (2) Subsection (1) is deemed to have come into force on June 27, 2018 but also applies in respect of any supply of an emission allowance made before that day if any amount of tax under Division II of Part IX of the Act that is payable in respect of the supply was not collected before that day, except that in respect of those supplies subsection 228(4) of the Act, as amended by subsection (1), is to be read as follows:

    • (4) If a supply of an emission allowance is made to a person, the following rules apply in respect of the tax under Division II that is payable in respect of the supply and that has not been collected before June 27, 2018 (in this subsection referred to as the “uncollected tax”):

      • (a) to the extent that the uncollected tax became payable before June 27, 2018,

        • (i) if the person is a registrant and acquired the emission allowance for use or supply primarily in the course of commercial activities of the person, the person shall, on or before the day on or before which the person’s return for the reporting period that includes June 27, 2018 is required to be filed, pay the uncollected tax to the Receiver General and report the uncollected tax in that return, and

        • (ii) in any other case, the person shall, on or before July 31, 2018, pay the uncollected tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the uncollected tax in prescribed form containing prescribed information; and

      • (b) to the extent that the uncollected tax became payable after June 26, 2018,

        • (i) if the person is a registrant and acquired the emission allowance for use or supply primarily in the course of commercial activities of the person, the person shall, on or before the day on or before which the person’s return for the reporting period in which the uncollected tax became payable is required to be filed, pay the uncollected tax to the Receiver General and report the uncollected tax in that return, and

        • (ii) in any other case, the person shall, on or before the last day of the month following the calendar month in which the uncollected tax became payable, pay the uncollected tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the uncollected tax in prescribed form containing prescribed information.

  • 46 (1) Section 244.1 of the Act is amended by adding the following after subsection (3):

    • Marginal note:Fiscal year — investment limited partnership

      (4) If a particular fiscal year of an investment limited partnership begins in 2018 and includes January 1, 2019 and the investment limited partnership would be a selected listed financial institution throughout a reporting period in the particular fiscal year if the particular fiscal year began on January 1, 2019 and ended on December 31, 2019, the following rules apply:

      • (a) the particular fiscal year ends on December 31, 2018;

      • (b) subject to subsection (2), the fiscal years of the investment limited partnership are calendar years as of January 1, 2019;

      • (c) any election made by the investment limited partnership under section 244 ceases to have effect as of January 1, 2019; and

      • (d) if the first taxation year of the investment limited partnership that begins after 2018 does not begin on January 1, 2019, for the purposes of this Part (other than section 149) the investment limited partnership is deemed, for the period beginning on January 1, 2019 and ending on the day preceding the first day of that taxation year, to be a financial institution, a listed financial institution and a person referred to in subparagraph 149(1)(a)(ix).

  • (2) Subsection (1) is deemed to have come into force on September 8, 2017.

  • 47 (1) Paragraphs 259.1(2)(a) and (b) of the Act are replaced by the following:

    • (a) in the case of a specified person described in paragraph (f) of the definition specified person in subsection (1), the person does not acquire or import the specified property for

      • (i) the purpose of making a supply by way of sale of the specified property for consideration, or

      • (ii) the purpose of transferring ownership of the specified property to another person in the course of supplying another property or a service for consideration; and

    • (b) in any other case, the person does not acquire or import the specified property for

      • (i) the purpose of making a supply by way of sale of the specified property, or

      • (ii) the purpose of transferring ownership of the specified property to another person in the course of supplying another property or a service.

  • (2) Subsection (1) applies to any acquisition or importation of property in respect of which tax

    • (a) becomes payable after July 27, 2018 without having been paid on or before that day; or

    • (b) is paid after July 27, 2018 without having become payable on or before that day.

  • 48 (1) The portion of subsection 261(1) of the English version of the Act after paragraph (b) is replaced by the following:

    tax, net tax, penalty, interest or other obligation under this Part in circumstances where the amount was not payable or remittable by the person, whether the amount was paid by mistake or otherwise, the Minister shall, subject to subsections (2) to (3), pay a rebate of that amount to the person.

  • (2) Section 261 of the Act is amended by adding the following after subsection (2):

    • Marginal note:Restriction — emission allowance

      (2.1) A rebate in respect of an amount paid in respect of a supply of an emission allowance is not to be paid under subsection (1) to a person unless

      • (a) the person paid the amount to the Receiver General; or

      • (b) prescribed circumstances exist or prescribed conditions are met.

  • (3) Subsections (1) and (2) are deemed to have come into force on June 27, 2018 but do not apply in respect of an amount that was, before that day, paid as or on account of, or taken into account as, tax, net tax, penalty, interest or other obligation under Part IX of the Act.

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