Budget Implementation Act, 2021, No. 1 (S.C. 2021, c. 23)
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Assented to 2021-06-29
PART 1Amendments to the Income Tax Act and Other Legislation (continued)
SOR/2008-186Canada Disability Savings Regulations (continued)
97 (1) Section 5.2 of the Regulations is repealed.
(2) Subsection (1) is deemed to have come into force on January 1, 2021.
98 (1) Section 5.3 of the Regulations is amended by adding the following after subsection (2):
(3) Subsection (1) does not apply in respect of any disability assistance payment made after the calendar year in which the beneficiary attains 59 years of age.
(2) Subsection (1) is deemed to have come into force on January 1, 2021.
99 (1) The portion of subsection 5.4(1) of the Regulations before paragraph (a) is replaced by the following:
5.4 (1) If a disability assistance payment is made to a beneficiary who is no longer a DTC-eligible individual, the issuer of the RDSP shall repay to the Minister, within the period set out in the issuer agreement, the least of the following amounts:
(2) The description of A in paragraph 5.4(1)(c) of the Regulations is replaced by the following:
- A
- is
(i) if the disability assistance payment is made before the calendar year in which the beneficiary attains 51 years of age, the total amount of grants and bonds paid into the RDSP within the 10-year period before the day on which the beneficiary ceased to be a DTC-eligible individual, less any portion of that amount that was repaid to the Minister within that period,
(ii) if the disability assistance payment is made after the calendar year in which the beneficiary attains 50 years of age but before the calendar year in which they attain 60 years of age and the beneficiary ceased to be a DTC-eligible individual before the calendar year in which they attained 50 years of age, the total amount of grants and bonds paid into the RDSP within the period (expressed in number of years) determined by the following formula that ended before the day on which the beneficiary ceased to be a DTC-eligible individual, less any portion of that amount that was repaid to the Minister within that period:
60 – n
where
- n
- is the beneficiary’s age on December 31 of the calendar year in which the disability assistance payment is made,
(iii) if the disability assistance payment is made after the calendar year in which the beneficiary attains 50 years of age but before the calendar year in which they attain 60 years of age and the beneficiary ceased to be a DTC-eligible individual after the calendar year in which they attained 49 years of age, the total amount of grants and bonds paid into the RDSP during the period beginning on January 1 of the year that is 10 years before the year in which the disability assistance payment is made and ending on the day preceding the day on which the beneficiary ceased to be a DTC-eligible individual, less any portion of that amount that was repaid to the Minister within that period, or
(iv) if the disability assistance payment is made after the calendar year in which the beneficiary attains 59 years of age, nil,
(3) Subsection 5.4(2) of the Regulations is replaced by the following:
(2) An issuer that repays the amount referred to in paragraph (1)(a) is to do so from the grants and bonds that were paid into the RDSP within the applicable period referred to in the description of A in paragraph (1)(c) and within the period referred to in the description of B in paragraph (1)(c), in the order in which they were paid into it.
(4) Subsections (1) to (3) are deemed to have come into force on January 1, 2021.
PART 2GST/HST Measures
R.S., c. E-15Excise Tax Act
100 (1) The definition reporting period in subsection 123(1) of the Excise Tax Act is replaced by the following:
- reporting period
reporting period of a person means the reporting period of the person as determined under sections 211.18 and 245 to 251; (période de déclaration)
(2) Paragraph (c) of the definition activité commerciale in subsection 123(1) of the French version of the Act is replaced by the following:
c) la réalisation d’une fourniture, sauf une fourniture exonérée, d’un immeuble de la personne, y compris les actes qu’elle accomplit dans le cadre ou à l’occasion de la fourniture. (commercial activity)
(3) The definition financial instrument in subsection 123(1) of the Act is amended by adding the following after paragraph (f):
(f.1) a virtual payment instrument,
(4) Subsection 123(1) of the Act is amended by adding the following in alphabetical order:
- virtual payment instrument
virtual payment instrument means property that is a digital representation of value, that functions as a medium of exchange and that only exists at a digital address of a publicly distributed ledger, other than property that
(a) confers a right, whether immediate or future and whether absolute or contingent, to be exchanged or redeemed for money or specific property or services or to be converted into money or specific property or services,
(b) is primarily for use within, or as part of, a gaming platform, an affinity or rewards program or a similar platform or program, or
(c) is prescribed property; (effet de paiement virtuel)
(5) Subsections (1) and (2) come into force, or are deemed to have come into force, on July 1, 2021.
(6) Subsections (3) and (4) are deemed to have come into force on May 18, 2019.
101 (1) Paragraph 141.01(1)(c) of the French version of the Act is replaced by the following:
c) la réalisation de fournitures d’immeubles de la personne, y compris les actes qu’elle accomplit dans le cadre ou à l’occasion des fournitures.
(2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2021.
102 (1) Subsection 143(1) of the Act is amended by striking out “or” at the end of paragraph (b) and by adding the following after that paragraph:
(b.1) the supply is a qualifying tangible personal property supply (as defined in subsection 211.1(1)) and the person is required under section 211.22 to be registered under Subdivision D of Division V at the time the supply is made; or
(2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2021.
(3) For the purposes of applying subsection 143(1) of the Act, as amended by subsection (1), in respect of a supply in respect of which subparagraph 107(2)(c)(ii) applies, the supply is deemed to have been made on July 1, 2021.
103 (1) Subsection 148(3) of the Act is replaced by the following:
Marginal note:Non-application
(3) This section does not apply to
(a) a person registered under Subdivision E of Division II; or
(b) a non-resident person that makes a supply in Canada of admissions in respect of a place of amusement, a seminar, an activity or an event and whose only business carried on in Canada is the making of such supplies.
(2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2021.
104 (1) Subsection 178.8(9) of the Act is replaced by the following:
Marginal note:Application
(9) Subsections (2) to (7) do not apply in respect of goods imported in circumstances in which subsection 169(2) applies or in which section 180 or subparagraph 211.23(1)(c)(i) deems a person to have paid tax in respect of a supply of property equal to the tax under Division III in respect of the importation of goods.
(2) Subsection (1) applies to goods imported on or after July 1, 2021 and to goods imported before that day that were not accounted for under section 32 of the Customs Act before that day.
105 (1) Section 179 of the Act is amended by adding the following after subsection (3):
Marginal note:Exception — distribution platform operator
(3.1) For the purposes of this Part, if
(a) paragraphs (1)(a) to (c) apply to a taxable supply in respect of particular tangible personal property that is made by a registrant and is referred to in any of subparagraphs (1)(a)(i) to (iii),
(b) the transfer referred to in paragraph (1)(b) of physical possession of the particular property is to a person (in this subsection referred to as the “consignee”) that is acquiring physical possession of the particular property as the recipient of a taxable supply made by way of sale of the particular property that
(i) is deemed under subsection 211.23(1) to have been made by a distribution platform operator (as defined in subsection 211.1(1)), and
(ii) would, in the absence of subsection 211.23(1), be made by a non-resident person that is not registered under Subdivision D of Division V,
(c) the distribution platform operator is registered under Subdivision D of Division V, and
(d) the non-resident person gives to the registrant, and the registrant retains, a certificate that
(i) acknowledges that the consignee acquired physical possession of the particular property as the recipient of a taxable supply and that the distribution platform operator is required to collect tax in respect of that taxable supply, and
(ii) states the distribution platform operator’s name and registration number assigned under section 241,
the following rules apply:
(e) paragraphs (1)(d) to (g) do not apply to the taxable supply referred to in paragraph (a), and
(f) the taxable supply referred to in paragraph (a) is deemed to have been made outside Canada.
(2) Section 179 of the Act is amended by adding the following after subsection (7):
Marginal note:Fungible property
(7.1) For the purposes of this section, substitute tangible personal property is deemed to be the original tangible personal property if
(a) one of the following conditions is met:
(i) a registrant acquires physical possession of the original tangible personal property for the purpose of making a supply of a service of manufacturing or producing tangible personal property (in this subparagraph referred to as the “manufactured property”) and the substitute tangible personal property is used or consumed by being
(A) incorporated or transformed into, attached to, or combined or assembled with, the manufactured property in the manufacture or production of the manufactured property, or
(B) directly consumed or expended in the manufacture or production of the manufactured property,
(ii) the following conditions are met:
(A) a registrant acquires physical possession of the original tangible personal property for the purpose of making a supply of a commercial service in respect of that property,
(B) if the commercial service is not a storage service, a service identical to the commercial service is performed in respect of the substitute tangible personal property,
(C) the registrant causes physical possession of the substitute tangible personal property to be transferred to another person under the agreement for the supply, and
(D) if the substitute property is a continuous transmission commodity, the substitute tangible personal property is not being transferred to the other person by means of a wire, pipeline or other conduit, or
(iii) a registrant acquires physical possession of the original tangible personal property for the purpose of making a supply of a commercial service in respect of tangible personal property (in this subparagraph referred to as the “serviced property”) that is neither the original tangible personal property nor the substitute tangible personal property and the substitute tangible personal property is used or consumed by being
(A) incorporated into, attached to, or combined or assembled with, the serviced property in the provision of the commercial service, or
(B) directly consumed or expended in the provision of the commercial service; and
(b) the properties of the original tangible personal property are essentially identical to the properties of the substitute tangible personal property and the original tangible personal property and the substitute tangible personal property
(i) are of the same class or kind of property,
(ii) are in the same measure and state, and
(iii) are interchangeable for commercial purposes.
(3) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2021.
(4) Subsection (2) applies in respect of any supply made after May 17, 2019 and in respect of any supply made on or before that day if the supplier did not, on or before that day, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply.
106 (1) Paragraph 186(1)(b) of the Act is replaced by the following:
(b) at the time that tax in respect of the acquisition, importation or bringing in becomes payable, or is paid without having become payable, by the parent, all or substantially all of the property of the other corporation is property that was last manufactured, produced, acquired or imported by the other corporation for consumption, use or supply by the other corporation exclusively in the course of its commercial activities,
(2) Subsection 186(1) of the Act, as amended by subsection (1), is replaced by the following:
Marginal note:Definition of unit
186 (0.1) In this section, unit means, in respect of a corporation, a share of the capital stock of the corporation.
Marginal note:Operating corporation
(0.2) For the purposes of this section, a particular corporation is at a particular time an operating corporation of another corporation if at the particular time the particular corporation is related to the other corporation and all or substantially all of the property of the particular corporation is property that was last manufactured, produced, acquired or imported by the particular corporation for consumption, use or supply by the particular corporation exclusively in the course of its commercial activities.
Marginal note:Input tax credit
(1) Unless subsection (2) applies, if at a particular time a registrant (in this subsection referred to as the “parent”) that is a corporation resident in Canada acquires, imports or brings into a participating province a particular property or service and if at the particular time a particular corporation is an operating corporation of the parent, the parent is deemed, for the purpose of determining an input tax credit of the parent, to have acquired or imported the particular property or service or brought it into the participating province, as the case may be, for use in the course of commercial activities of the parent to the extent that
(a) the parent acquired or imported the particular property or service or brought it into the participating province, as the case may be, for the purpose of
(i) selling or otherwise disposing of, purchasing or otherwise obtaining, or holding units or indebtedness of the particular corporation by the parent, or
(ii) redeeming, issuing or converting or otherwise modifying units or indebtedness of the particular corporation by the particular corporation;
(b) the parent acquired or imported the particular property or service or brought it into the participating province, as the case may be, for the purpose of issuing or selling units or indebtedness of the parent, the parent transfers to the particular corporation the proceeds from the issuance or sale by lending money to the particular corporation or by purchasing or otherwise obtaining from the particular corporation units or indebtedness of the particular corporation, and the proceeds that are transferred to the particular corporation are for use in the course of its commercial activities; or
(c) if at the particular time all or substantially all of the property of the parent is property that was manufactured, produced, acquired or imported by the parent for consumption, use or supply exclusively in the course of its commercial activities, property that is units or indebtedness of operating corporations of the parent or a combination of such property, the parent acquired or imported the particular property or service or brought it into the participating province, as the case may be, for the purpose of carrying on, engaging in or conducting an activity of the parent other than
(i) an activity that is primarily in respect of units or indebtedness of a person that is neither the parent nor an operating corporation of the parent, or
(ii) an activity that is carried on, engaged in or conducted in the course of making an exempt supply by the parent unless the activity is a financial service that is
(A) the lending or borrowing of units or indebtedness of an operating corporation of the parent,
(B) the issue, granting, allotment, acceptance, endorsement, renewal, processing, variation, transfer of ownership or repayment of units or indebtedness of the parent or an operating corporation of the parent,
(C) the provision, variation, release or receipt of a guarantee, acceptance or indemnity in respect of units or indebtedness of the parent or an operating corporation of the parent,
(D) the payment or receipt of money as dividends (other than patronage dividends), interest, principal, benefits, or similar receipt or payment of money in respect of units or indebtedness of the parent or an operating corporation of the parent, or
(E) the underwriting of units or indebtedness of an operating corporation of the parent.
(3) Subsections 186(0.1) and (0.2) of the Act, as enacted by subsection (2), are replaced by the following:
Marginal note:Definition of unit
186 (0.1) In this section, unit means
(a) in respect of a corporation, a share of the capital stock of the corporation;
(b) in respect of a partnership, an interest of a person in the partnership; and
(c) in respect of a trust, a unit of the trust.
Marginal note:Operating corporations
(0.2) For the purposes of this section, a particular corporation is at a particular time an operating corporation of another person that is a corporation, partnership or trust if, at the particular time, all or substantially all of the property of the particular corporation is property that was last manufactured, produced, acquired or imported by the particular corporation for consumption, use or supply by the particular corporation exclusively in the course of its commercial activities and
(a) if the other person is a corporation or a trust, the particular corporation is, at the particular time, related to the other person; or
(b) if the other person is a partnership, the particular corporation is, at the particular time, controlled by
(i) the other person,
(ii) a corporation that is controlled by the other person,
(iii) a corporation that is related to a corporation described in subparagraph (ii), or
(iv) a combination of persons described in subparagraphs (i) to (iii).
(4) The portion of subsection 186(1) of the Act before paragraph (a), as enacted by subsection (2), is replaced by the following:
Marginal note:Input tax credit
(1) Unless subsection (2) applies, if at a particular time a registrant (in this subsection referred to as the “parent”) that is resident in Canada and that is a corporation, partnership or trust acquires, imports or brings into a participating province a particular property or service and if at the particular time a particular corporation is an operating corporation of the parent, the parent is deemed, for the purpose of determining an input tax credit of the parent, to have acquired or imported the particular property or service or brought it into the participating province, as the case may be, for use in the course of commercial activities of the parent to the extent that
(5) Paragraph 186(2)(b) of the Act is replaced by the following:
(b) throughout the period beginning when the performance of the particular service began or when the purchaser acquired, imported or brought into the participating province, as the case may be, the particular property and ending at the later of the times referred to in paragraph (c), all or substantially all of the property of the other corporation was property that was last manufactured, produced, acquired or imported for consumption, use or supply exclusively in the course of commercial activities,
(6) Subsection 186(3) of the Act is replaced by the following:
Marginal note:Shares, etc., held by corporation
(3) If at any time all or substantially all of the property of a particular corporation is property that was last manufactured, produced, acquired or imported by it for consumption, use or supply exclusively in the course of its commercial activities, all shares of the capital stock of the particular corporation owned by, and all indebtedness of the particular corporation owed to, any other corporation that is related to the particular corporation are, for the purposes of this section, deemed to be, at that time, property that was acquired by the other corporation for use exclusively in the course of its commercial activities.
(7) Subsection 186(3) of the Act, as enacted by subsection (6), is replaced by the following:
Marginal note:Shares, etc., held by corporation
(3) If at a particular time a particular corporation is an operating corporation of another corporation, all units of the particular corporation owned by, and all indebtedness of the particular corporation owed to, the other corporation are, for the purposes of this section, deemed to be, at the particular time, property that was acquired by the other corporation for use exclusively in the course of its commercial activities.
(8) Subsections (1) and (6) apply in respect of any property or service acquired, imported or brought into a participating province before July 28, 2018 if tax became payable or was paid without having become payable in respect of the acquisition, importation or bringing into the participating province.
(9) Subsections (2) and (7) apply in respect of any property or service acquired, imported or brought into a participating province after July 27, 2018.
(10) Subsection 186(0.1) of the Act, as enacted by subsection (3), is deemed to have come into force on May 18, 2019.
(11) Subsection 186(0.2) of the Act, as enacted by subsection (3), and subsection (4) apply in respect of any property or service acquired, imported or brought into a participating province after May 17, 2019.
(12) Subsection (5) applies to any acquisition, importation or bringing into a participating province of property or a service in respect of which tax is payable or is paid without having become payable.
- Date modified: