Budget Implementation Act, 2023, No. 1 (S.C. 2023, c. 26)

• 111 (1) Clause 8506(1)(e.2)(iii)(A) of the Regulations is replaced by the following:

  • (A) a benefit described in any of paragraphs (b) to (e) and (i),

• (2) Subsection (1) is deemed to have come into force on January 1, 2020.

SOR/2010-150Electronic Filing and Provision of Information (GST/HST) Regulations

• 112 (1) Paragraph 2(a) of the Electronic Filing and Provision of Information (GST/HST) Regulations is replaced by the following:

  • (a) the person is not a charity;

• (2) Subsection (1) applies in respect of reporting periods that begin after 2023.

Coordinating Amendments

Marginal note:Bill C-46

• 113 (1) Subsections (2) to (4) apply if Bill C-46, introduced in the 1st session of the 44th Parliament and entitled the Cost of Living Relief Act, No. 3 (in this section referred to as the “other Act”), receives royal assent.

• (2) If section 29 and subsections 49(1) and (2) of this Act come into force before section 3 and subsections 4(1) and (2) of the other Act, then that section 3 and those subsections 4(1) and (2) are deemed never to have come into force and are repealed.

• (3) If section 3 and subsections 4(1) and (2) of the other Act come into force on the same day as section 29 and subsections 49(1) and (2) of this Act, then that section 3 is deemed never to have come into force and is repealed and those subsections 4(1) and (2) are deemed to have come into force before those subsections 49(1) and (2).

• (4) If section 3 of the other Act comes into force before section 29 of this Act, then that section 29 is deemed never to have come into force and is repealed.

PART 2GST/HST Measures

R.S., c. E-15Excise Tax Act

• 114 (1) The definition commercial service in subsection 123(1) of the Excise Tax Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):

  • (c) a service that is acquired for consumption, use or supply in the course of, or in connection with, the performance of a mining activity (as defined in subsection 188.2(1)) in Canada; (service commercial)

• (2) The definition financial service in subsection 123(1) of the Act is amended by adding the following after paragraph (r.5):

  • (r.6) a service (other than a prescribed service) that is supplied by a payment card network operator in respect of a payment card network (as those terms are defined in section 3 of the Payment Card Networks Act) where the supply includes the provision of

    • (i) a service in respect of the authorization of a transaction in respect of money, an account, a credit card voucher, a charge card voucher or a financial instrument,

    • (ii) a clearing or settlement service in respect of money, an account, a credit card voucher, a charge card voucher or a financial instrument, or

    • (iii) a service rendered in conjunction with a service referred to in subparagraph (i) or (ii),

• (3) Paragraph (b) of the definition pension entity in subsection 123(1) of the Act is replaced by the following:

  • (b) a corporation referred to in paragraph (b) of the definition pension plan, or

• (4) Subsection (1) is deemed to have come into force on February 5, 2022.

• (5) Subsection (2) applies to a service rendered under an agreement for a supply if

  • (a) any consideration for the supply becomes due after March 28, 2023 or is paid after that day without having become due; or

  • (b) all of the consideration for the supply became due or was paid on or before March 28, 2023, except that, for the purposes of Part IX of the Act, other than Division IV of that Part, subsection (2) does not apply in respect of the service if

    • (i) the supplier did not, on or before March 28, 2023, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply, and

    • (ii) the supplier did not, on or before March 28, 2023, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of any other supply that is made under the agreement and that includes the provision of a service referred to in paragraph (r.6) of the definition financial service in subsection 123(1) of the Act, as amended by subsection (2).

• (6) Despite section 298 of the Act, the Minister of National Revenue may assess, reassess or make an additional assessment of any amount in respect of paragraph (r.6) of the definition financial service in subsection 123(1) of the Act, as amended by subsection (1), at any time on or before the later of the day that is one year after the day on which the legislation enacting subsection (1) receives royal assent and the last day of the period otherwise allowed under that section for making the assessment, reassessment or additional assessment.

• 115 (1) Section 172.1 of the Act is amended by adding the following after subsection (8):

  • Marginal note:Later addition to net tax of employer

    (8.01) If, in making an assessment of the net tax for a reporting period of a person, the Minister determines that the tax in respect of a supply of all or part of a specified resource deemed to have been made by the person under paragraph (5)(a) or (5.1)(a) or in respect of a supply of an employer resource deemed to have been made by the person under any of paragraphs (6)(a), (6.1)(a), (7)(a) and (7.1)(a) is greater than the amount of tax that had been accounted for in respect of the supply prior to the Minister’s assessment of the net tax for the reporting period and if the person has paid or remitted all amounts owing to the Receiver General in respect of the net tax for the reporting period, if any, the following rules apply:

    • (a) the person shall, in prescribed form and in a manner satisfactory to the Minister, provide prescribed information in respect of the supply to each pension entity that is deemed to have paid tax in respect of the specified resource or part or in respect of the employer resource, as the case may be, under whichever of paragraphs (5)(d), (5.1)(d), (6)(d), (6.1)(d), (7)(d) and (7.1)(d) is applicable (in this subsection referred to as the “applicable paragraph”) before the day that is one year after the later of

      • (i) the day on which the Minister sends the notice of the assessment, and

      • (ii) the first day on which all amounts owing to the Receiver General in respect of the net tax for the reporting period, if any, have been paid or remitted; and

    • (b) if the person provides the prescribed information to a particular pension entity in accordance with paragraph (a) and if the prescribed information is received by the particular pension entity on a particular day that is after the end of the last claim period (as defined in subsection 259(1)) of the particular pension entity that ends within two years after the day on which the supply was deemed to have been made, for the purposes referred to in the applicable paragraph,

      • (i) the particular pension entity is deemed to have paid on the particular day tax equal to the amount determined by the formula

        A × (B ÷ C)

        where

        A

        is the amount of tax in respect of the specified resource or part or in respect of the employer resource, as the case may be, that the particular pension entity is deemed to have paid under the applicable paragraph,

        B

        is the difference between the tax in respect of the supply and the amount of tax that had been accounted for in respect of the supply prior to the Minister’s assessment of the net tax for the reporting period, and

        C

        is the tax in respect of the supply, and

      • (ii) if the applicable paragraph is paragraph (5)(d), (5.1)(d), (6)(d) or (6.1)(d), the tax that the particular pension entity is deemed to have paid under subparagraph (i) is deemed to be paid in respect of the supply of the specified resource or part or in respect of the supply of the employer resource, as the case may be, that the particular pension entity is deemed to have received under the applicable paragraph.

• (2) Subsection (1) applies in respect of any notice of assessment, reassessment or additional assessment sent to a person by the Minister of National Revenue except that, in respect of a notice of assessment, reassessment or additional assessment sent by the Minister of National Revenue on or before August 9, 2022, paragraph 172.1(8.01)(a) of the Act, as enacted by subsection (1), is to be read as follows:

  • (a) the person may, in prescribed form and in a manner satisfactory to the Minister, provide prescribed information in respect of the supply to each pension entity that is deemed to have paid tax in respect of the specified resource or part or in respect of the employer resource, as the case may be, under whichever of paragraphs (5)(d), (5.1)(d), (6)(d), (6.1)(d), (7)(d) and (7.1)(d) is applicable (in this subsection referred to as the “applicable paragraph”) before the day that is one year after the later of

    • (i) the day on which the Act of Parliament that implements this subsection receives royal assent, and

    • (ii) the first day on which all amounts owing to the Receiver General in respect of the net tax for the reporting period, if any, have been paid or remitted; and

• 116 (1) The Act is amended by adding the following after section 172.1:

  Marginal note:Pension entity — assessment of supplier

  172.11 For the purposes of sections 225.2, 232.01, 232.02 and 261.01 and the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations, tax in respect of a supply of property or a service that became payable by a pension entity of a pension plan on a particular day is deemed to have become payable by the pension entity on the day on which the pension entity pays that tax and not to have become payable on the particular day if

  • (a) the supplier did not, before the end of the last claim period (as defined in subsection 259(1)) of the pension entity that ends within two years after the end of the claim period of the pension entity that includes the particular day, charge that tax;

  • (b) the supplier discloses in writing to the pension entity that the Minister has assessed the supplier for that tax;

  • (c) the pension entity pays that tax after the end of that last claim period; and

  • (d) that tax is not included in determining

    • (i) a rebate under subsection 261.01(2) that is claimed by the pension entity for that last claim period or an earlier claim period of the pension entity, or

    • (ii) an amount that a qualifying employer (as defined in subsection 261.01(1)) of the pension plan deducts in determining its net tax for a reporting period as a result of a joint election made under any of subsections 261.01(5), (6) and (9) with the pension entity for that last claim period or an earlier claim period of the pension entity.

• (2) Subsection (1) applies in respect of tax that is paid by a pension entity in a claim period of the pension entity that ends after August 9, 2022.

• 117 (1) Section 172.2 of the Act is amended by adding the following after subsection (3):

  • Marginal note:Assessment of supplier

    (3.1) For the purposes of subsection (3), tax in respect of a supply of property or a service that became payable by a master pension entity on a particular day is deemed to have become payable by the master pension entity on the day on which the master pension entity pays that tax and not to have become payable on the particular day if

    • (a) the supplier did not, within two years after the particular day, charge that tax;

    • (b) the supplier discloses in writing to the master pension entity that the Minister has assessed the supplier for that tax; and

    • (c) the master pension entity pays that tax on a day that is more than two years after the particular day.

• (2) Subsection (1) applies in respect of tax that is paid by a master pension entity after August 9, 2022.

• 118 (1) The Act is amended by adding the following after section 188.1:

  Cryptoassets

  Marginal note:Definitions

  • 188.2 (1) The following definitions apply in this section.

    cryptoasset

    cryptoasset means property (other than prescribed property) that is a digital representation of value and that only exists at a digital address of a publicly distributed ledger. (cryptoactif)

    mining activity

    mining activity means an activity of

    • (a) validating transactions in respect of a cryptoasset and adding them to a publicly distributed ledger on which the cryptoasset exists at a digital address;

    • (b) maintaining and permitting access to a publicly distributed ledger on which a cryptoasset exists at a digital address; or

    • (c) allowing computing resources to be used for the purpose of, or in connection with, performing activities described in paragraph (a) or (b) in respect of a cryptoasset. (activité de minage)

    mining group

    mining group means a group of persons that, under an agreement,

    • (a) pool property or services for the performance of mining activities; and

    • (b) share mining payments in respect of the mining activities among members of the group. (groupe de minage)

    mining group operator

    mining group operator, in respect of a mining group, means a person that coordinates, oversees or manages the mining activities of the mining group. (exploitant d’un groupe de minage)

    mining payment

    mining payment, in respect of a mining activity, means money, property or a service that is a fee, reward or other form of payment and that is received or generated as a consequence of the mining activity being performed. (paiement de minage)

  • Marginal note:Acquisition, etc., for mining activities

    (2) For the purposes of this Part, to the extent that a person acquires, imports or brings into a participating province property or a service for consumption, use or supply in the course of, or in connection with, mining activities, the person is deemed to have acquired, imported or brought into the participating province, as the case may be, the property or service for consumption, use or supply otherwise than in the course of commercial activities of the person.

  • Marginal note:Use, etc., for mining activities

    (3) For the purposes of this Part, if a person consumes, uses or supplies property or a service in the course of, or in connection with, mining activities, that consumption, use or supply is deemed to be otherwise than in the course of commercial activities of the person.

  • Marginal note:Mining payment

    (4) For the purposes of this Part, if a person receives a mining payment in respect of a mining activity,

    • (a) the provision of the mining activity is deemed not to be a supply;

    • (b) the provision of the mining payment is deemed not to be a supply; and

    • (c) in determining an input tax credit of another person that provides the mining payment, no amount is to be included in respect of tax that becomes payable, or is paid without having become payable, by the other person in respect of any property or service acquired, imported or brought into a participating province for consumption, use or supply in the course of, or in connection with, the provision of the mining payment by the other person.

  • Marginal note:Exception

    (5) Subsections (2) to (4) do not apply in respect of a mining activity to the extent that the mining activity is performed by a particular person for another person if

    • (a) the identity of the other person is known to the particular person;

    • (b) where the mining activity is in respect of a mining group that includes the particular person, the other person is not a mining group operator in respect of the mining group; and

    • (c) where the other person is a non-resident person and is not dealing at arm’s length with the particular person, each property or service — being property or a service that is received by the other person from the particular person as a consequence of the performance of the mining activity — is supplied, or is used or consumed in the course of making a supply, by the other person to one or more persons each of which

      • (i) is a person whose identity is known to the other person,

      • (ii) deals at arm’s length with the other person, and

      • (iii) is not a mining group operator in respect of a mining group that includes the other person if the mining activity is in respect of that mining group.

• (2) Subsection (1) is deemed to have come into force on February 5, 2022 except that, in determining an input tax credit of a person, paragraph 188.2(4)(c) of the Act, as enacted by subsection (1), does not apply in respect of property or a service acquired, imported or brought into a participating province before February 6, 2022.