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Excise Tax Act (R.S.C., 1985, c. E-15)

Full Document:  

Act current to 2019-06-20 and last amended on 2019-06-17. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION VIRebates (continued)

Meaning of relation

  •  (1) In this section, relation of a particular individual means another individual who is related to the particular individual or who is a former spouse or common-law partner of the particular individual.

  • Marginal note:Cooperative housing rebate

    (2) Where

    • (a) a cooperative housing corporation has paid tax in respect of a taxable supply to the corporation of a residential complex,

    • (b) the corporation makes a supply of a share of the capital stock of the corporation to a particular individual and transfers ownership of the share to the particular individual,

    • (c) at the time the particular individual becomes liable or assumes liability under an agreement of purchase and sale of the share entered into between the corporation and the particular individual, the particular individual is acquiring the share for the purpose of using a residential unit in the complex as the primary place of residence of the particular individual or a relation of the particular individual,

    • (d) the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the share or an interest in the corporation, complex or unit, is less than $472,500,

    • (e) after the construction or substantial renovation of the complex is substantially completed and before possession of the unit is given to the particular individual as an incidence of ownership of the share, the unit was not occupied by any individual as a place of residence or lodging, and

    • (f) either

      • (i) the first individual to occupy the unit as a place of residence after possession of the unit is given to the particular individual is the particular individual or a relation of the particular individual, or

      • (ii) the particular individual makes a supply by way of sale of the share and ownership of the share is transferred to the recipient of that supply before the unit is occupied by any individual as a place of residence or lodging,

    the Minister shall, subject to subsection (3), pay a rebate to the particular individual equal to

    • (g) if the total consideration is not more than $367,500, an amount equal to 1.71% of the total consideration, and

    • (h) if the total consideration is more than $367,500 but less than $472,500, the amount determined by the formula

      A × [($472,500 - B)/$105,000]

      where

      A
      is the lesser of $6,300 and 1.71% of the total consideration, and
      B
      is the total consideration.
  • Marginal note:Owner-occupant of a residential unit

    (2.01) For the purpose of subsection (2.1), an individual is an owner-occupant of a residential unit at any time if it is the primary place of residence of the individual at that time and

    • (a) it is owned at that time by the individual or by another individual who is their spouse or common-law partner at that time; or

    • (b) it is in a residential complex of a cooperative housing corporation and the individual, or another individual who is their spouse or common-law partner at that time, holds at that time a share of the capital stock of the corporation for the purpose of using the residential unit.

  • Marginal note:Relevant transfer date

    (2.02) For the purpose of subsection (2.1), the relevant transfer date in respect of a share of the capital stock of a cooperative housing corporation that is supplied to the particular individual referred to in that subsection is the day on which ownership of the share is transferred to the particular individual.

  • Marginal note:Rebate in Nova Scotia

    (2.1) If

    • (a) a particular individual has acquired a share of the capital stock of a cooperative housing corporation for the purpose of using a residential unit in a residential complex of the corporation that is situated in Nova Scotia as the primary place of residence of the particular individual or of a relation of the particular individual,

    • (b) the corporation has paid tax under subsection 165(2) in respect of a taxable supply to the corporation of the complex,

    • (c) the particular individual is entitled to a rebate under subsection (2) in respect of the share or would be so entitled if the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the share or an interest in the corporation, complex or unit, were less than $472,500,

    • (d) it is the case that

      • (i) neither the particular individual nor any other individual who is their spouse or common-law partner on the relevant transfer date was an owner-occupant of a residential unit in any other residential complex in Canada during the period (in this paragraph referred to as the “relevant period”) that begins on the first day of the first full calendar month in the five-year period ending on the relevant transfer date and that ends on the relevant transfer date, or

      • (ii) on the last day when any of the individuals referred to in subparagraph (i) was an owner-occupant of a residential unit in a residential complex in Canada during the relevant period, that residential unit was destroyed otherwise than voluntarily by any of them, and

    • (e) if, at the time referred to in paragraph (2)(c), the particular individual is acquiring the share for the purpose of using a residential unit in the complex as the primary place of residence of a relation of the particular individual, but not for use as the primary place of residence of the particular individual or of their spouse or common-law partner, the circumstances described in subparagraph (d)(i) or (ii) would be satisfied if the references in those subparagraphs to the particular individual were references to the relation,

    the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to the lesser of $1,500 and 1.39% of the total consideration.

  • Marginal note:Application for rebate

    (3) A rebate under this section in respect of a share of the capital stock of a cooperative housing corporation shall not be paid to an individual unless the individual files an application for the rebate within two years after the day ownership of the share is transferred to the individual.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 111
  • 1997, c. 10, ss. 65, 223
  • 2000, c. 12, s. 113, c. 30, s. 73
  • 2006, c. 4, s. 26
  • 2007, c. 18, s. 39, c. 35, s. 190

Marginal note:Definitions

  •  (1) In this section,

    relation

    relation of a particular individual means another individual who is related to the particular individual or who is a former spouse or common-law partner of the particular individual; (proche)

    single unit residential complex

    single unit residential complex includes

    • (a) a multiple unit residential complex that does not contain more than two residential units, and

    • (b) any other multiple unit residential complex if it is described by paragraph (c) of the definition residential complex in subsection 123(1) and contains one or more residential units that are for supply as rooms in a hotel, motel, inn, boarding house, lodging house or similar premises and that would be excluded from being part of the residential complex if the complex were a residential complex not described by that paragraph. (immeuble d’habitation à logement unique)

  • Marginal note:Rebate for owner-built homes

    (2) Where

    • (a) a particular individual constructs or substantially renovates, or engages another person to construct or substantially renovate for the particular individual, a residential complex that is a single unit residential complex or a residential condominium unit for use as the primary place of residence of the particular individual or a relation of the particular individual,

    • (b) the fair market value of the complex, at the time the construction or substantial renovation thereof is substantially completed, is less than $450,000,

    • (c) the particular individual has paid tax in respect of the supply by way of sale to the individual of the land that forms part of the complex or an interest therein or in respect of the supply to, or importation by, the individual of any improvement thereto or, in the case of a mobile home or floating home, of the complex (the total of which tax under subsection 165(1) and sections 212 and 218 is referred to in this subsection as the “total tax paid by the particular individual”),

    • (d) either

      • (i) the first individual to occupy the complex after the construction or substantial renovation is begun is the particular individual or a relation of the particular individual, or

      • (ii) the particular individual makes an exempt supply by way of sale of the complex and ownership of the complex is transferred to the recipient before the complex is occupied by any individual as a place of residence or lodging,

    the Minister shall, subject to subsection (3), pay a rebate to the particular individual equal to the amount determined by the formula

    A × ($450,000 - B)/$100,000

    where

    A
    is the lesser of 36% of the total tax paid by the particular individual before an application for the rebate is filed with the Minister in accordance with subsection (3), and
    • (i) if all or substantially all of that tax was paid at the rate of 5%, $6,300,

    • (ii) if all or substantially all of that tax was paid at the rate of 6%, $7,560, and

    • (iii) in any other case, the lesser of $8,750 and the amount determined by the formula

      (C × $2,520) + (D × $1,260) + $6,300

      where

      C
      is the extent (expressed as a percentage) to which that tax was paid at the rate of 7%, and
      D
      is the extent (expressed as a percentage) to which that tax was paid at the rate of 6%, and
    B
    is the greater of $350,000 and the fair market value of the complex referred to in paragraph (b).
  • Marginal note:Homes occupied before substantial completion

    (2.01) Where an individual acquires an improvement in respect of a residential complex that the individual is constructing or substantially renovating and tax in respect of the improvement becomes payable by the individual more than two years after the day the complex is first occupied as described in subparagraph (2)(d)(i), that tax shall not be included under paragraph (2)(c) in determining the total tax paid by the individual.

  • Marginal note:Owner-occupant of a residential unit

    (2.02) For the purpose of subsection (2.1), an individual is an owner-occupant of a residential unit at any time if it is the primary place of residence of the individual at that time and

    • (a) it is owned at that time by the individual or by another individual who is their spouse or common-law partner at that time; or

    • (b) it is in a residential complex of a cooperative housing corporation and the individual, or another individual who is their spouse or common-law partner at that time, holds at that time a share of the capital stock of the corporation for the purpose of using the residential unit.

  • Marginal note:Relevant completion date

    (2.03) For the purpose of subsection (2.1), the relevant completion date of a residential complex that the particular individual referred to in that subsection has constructed or has engaged another person to construct is the day on which that construction is substantially completed.

  • Marginal note:Rebate in Nova Scotia

    (2.1) If

    • (a) a particular individual is entitled to a rebate under subsection (2) in respect of a residential complex that the particular individual has constructed or has engaged another person to construct and that is for use, in Nova Scotia, as the primary place of residence of the particular individual or a relation of the particular individual, or the particular individual would be so entitled if the fair market value of the complex, at the time the construction of the complex is substantially completed, were less than $450,000,

    • (b) the particular individual has paid all of the tax payable by the particular individual in respect of the supply by way of sale to the particular individual of the land that forms part of the complex or an interest in the land or in respect of the supply to, importation by, or bringing into Nova Scotia by, the particular individual of any improvement to the land or, in the case of a mobile home or floating home, of the complex (the total of which tax under subsection 165(2) and sections 212.1, 218.1 and 220.05 to 220.07 is referred to in this subsection as the “total tax in respect of the province paid by the particular individual”),

    • (c) it is the case that

      • (i) neither the particular individual nor any other individual who is their spouse or common-law partner on the relevant completion date was an owner-occupant of a residential unit in any other residential complex in Canada during the period (in this paragraph referred to as the “relevant period”) that begins on the first day of the first full calendar month in the five-year period ending on the relevant completion date and that ends on the relevant completion date, or

      • (ii) on the last day when any of the individuals referred to in subparagraph (i) was an owner-occupant of a residential unit in a residential complex in Canada during the relevant period, that residential unit was destroyed otherwise than voluntarily by any of them, and

    • (d) if the particular individual has constructed or has engaged another person to construct the complex for use as the primary place of residence of a relation of the particular individual, but not for use as the primary place of residence of the particular individual or of their spouse or common-law partner, the circumstances described in subparagraph (c)(i) or (ii) would be satisfied if the references in those subparagraphs to the particular individual were references to the relation,

    the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to the amount determined in prescribed manner or, if no manner is prescribed, the lesser of $1,500 and 18.75% of the total tax in respect of the province paid by the particular individual.

  • Marginal note:Mobile homes and floating homes

    (2.2) For the purposes of this section, where

    • (a) a particular individual purchases, imports or brings into Nova Scotia a mobile home or floating home that has never been used or occupied by any individual as a place of residence or lodging and does not file with the Minister, or submit to the supplier, an application for a rebate in respect of the home under section 254 or 254.1,

    • (b) the particular individual is acquiring, importing or bringing into Nova Scotia the mobile home or floating home for use as the primary place of residence of the particular individual or of a relation of the particular individual, and

    • (c) the first individual to occupy the mobile home or floating home at any time is the particular individual or a relation referred to in paragraph (b), or the particular individual at any time transfers ownership of the home under an agreement for an exempt supply by way of sale of the home,

    the particular individual is deemed to have constructed the mobile home or floating home and to have substantially completed the construction immediately before the earlier of the times referred to in paragraph (c) and, in the case of a mobile home or floating home imported by the individual, any use or occupation of the home outside Canada is deemed not to be use or occupation of the home.

  • Marginal note:Application for rebate

    (3) A rebate under this section in respect of a residential complex shall not be paid to an individual unless the individual files an application for the rebate on or before

    • (a) the day (in this subsection referred to as the “due date”) that is two years after the earliest of

      • (i) the day that is two years after the day on which the complex is first occupied as described in subparagraph (2)(d)(i),

      • (ii) the day on which ownership is transferred as described in subparagraph (2)(d)(ii), and

      • (iii) the day on which construction or substantial renovation of the complex is substantially completed; or

    • (b) any day after the due date that the Minister may allow.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 112
  • 1997, c. 10, ss. 66, 224
  • 2000, c. 12, s. 113
  • 2001, c. 15, s. 14
  • 2006, c. 4, s. 27
  • 2007, c. 18, s. 40, c. 35, s. 191
  • 2009, c. 32, s. 27
 
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