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

Full Document:  

Act current to 2021-03-23 and last amended on 2020-07-01. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION VIRebates (continued)

Marginal note:Transitional rebate where section 254.1 applies — 2008 rate reduction

  •  (1) If

    • (a) under an agreement, evidenced in writing, entered into on or before May 2, 2006, between a particular person and a builder of a residential complex that is a single unit residential complex or a residential condominium unit, the particular person is the recipient of

      • (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and

      • (ii) an exempt supply by way of sale of the building or part of it in which the residential unit forming part of the complex is situated,

    • (b) possession of the complex is given to the particular person under the agreement on or after January 1, 2008,

    • (c) the builder is deemed under subsection 191(1) to have made and received a supply of the complex as a consequence of giving possession of the complex to the particular person under the agreement and to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and

    • (d) the particular person is entitled to claim a rebate under subsection 254.1(2) in respect of the complex,

    the Minister shall, subject to subsection (4),

    • (e) pay a rebate to the particular person, in addition to the rebate payable under subsection 256.4(1), equal to the amount determined by the formula

      A × [0.01 - ((B/A)/7)]

      where

      A
      is the amount determined by the formula

      C × (100/D)

      where

      C
      is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and
      D
      is
      • (i) if the complex is situated in a participating province, 115, and

      • (ii) in any other case, 107, and

      B
      is the amount of the rebate under subsection 254.1(2) that the particular person is entitled to claim in respect of the complex, and
    • (f) if the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.2(4) or 256.4(1), in respect of the tax referred to in paragraph (c), pay a rebate to the builder, in addition to the rebate payable under subsection 256.4(1), equal to the amount determined by the formula

      (E - F) × [0.01 - ((G/(E - F))/7)]

      where

      E
      is the fair market value of the complex at the time that the builder is deemed to have made the supply referred to in paragraph (c),
      F
      is the amount determined for A under paragraph (e), and
      G
      is the amount of the rebate, if any, that the builder is entitled to claim under subsection 256.2(4).
  • Marginal note:Transitional rebate where section 254.1 does not apply — 2008 rate reduction

    (2) If

    • (a) under an agreement, evidenced in writing, entered into on or before May 2, 2006, between a particular person and a builder of a residential complex that is a single unit residential complex or a residential condominium unit, the particular person is the recipient of

      • (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and

      • (ii) an exempt supply by way of sale of the building or part of it in which the residential unit forming part of the complex is situated,

    • (b) possession of the complex is given to the particular person under the agreement on or after January 1, 2008,

    • (c) the builder is deemed under subsection 191(1) to have made and received a supply of the complex as a consequence of giving possession of the complex to the particular person under the agreement and to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and

    • (d) the particular person is not entitled to claim a rebate under subsection 254.1(2) in respect of the complex,

    the Minister shall, subject to subsection (4),

    • (e) pay a rebate to the particular person, in addition to the rebate payable under subsection 256.4(2), equal to the amount determined by the formula

      A/B

      where

      A
      is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and
      B
      is
      • (i) if the complex is situated in a participating province, 115, and

      • (ii) in any other case, 107, and

    • (f) if the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.4(2), in respect of the tax referred to in paragraph (c), pay a rebate to the builder, in addition to the rebate payable under subsection 256.4(2), equal to the amount determined by the formula

      0.01 × [C - (D × (100/E))]

      where

      C
      is the fair market value of the complex at the time the builder is deemed to have made the supply referred to in paragraph (c),
      D
      is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and
      E
      is
      • (i) if the complex is situated in a participating province, 115, and

      • (ii) in any other case, 107.

  • Marginal note:Group of individuals

    (3) If the supplies described in subsection (1) or (2) are made to two or more individuals, the references in that subsection to a particular person shall be read as references to all of those individuals as a group, but, in the case of a rebate where paragraph (1)(e) applies, only the individual that applied for the rebate under section 254.1 may apply for the rebate under subsection (1).

  • Marginal note:Application for rebate

    (4) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after

    • (a) in the case of a rebate to a person other than the builder of the complex, the day on which possession of the complex is transferred to the person; and

    • (b) in the case of a rebate to the builder of the complex, the end of the month in which the tax referred to in paragraph (1)(c) or (2)(c) is deemed to have been paid by the builder.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2007, c. 35, s. 194

Marginal note:Transitional rebate for purchaser — 2008 rate reduction

  •  (1) Where

    • (a) under an agreement, evidenced in writing, entered into between a particular person and a builder of a residential complex, other than a single unit residential complex or a residential condominium unit, or an addition to it, the particular person is the recipient of

      • (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and

      • (ii) an exempt supply by way of sale of the building or part of it in which a residential unit forming part of the complex or the addition is situated,

    • (b) possession of a residential unit forming part of the complex or the addition is given to the particular person under the agreement on or after January 1, 2008,

    • (c) the builder is deemed under subsection 191(3) or (4) to have made and received a supply of the complex or the addition as a consequence of giving possession

      • (i) of the residential unit to the particular person under the agreement, or

      • (ii) of a residential unit forming part of the complex or the addition to another person under an agreement described in paragraph (a) entered into between the other person and the builder,

    • (d) the builder is deemed to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and

    • (e) if the builder is deemed to have paid the tax referred to in paragraph (d) on or after January 1, 2008, it is the case that the builder and

      • (i) the particular person entered into the agreement on or before May 2, 2006, or

      • (ii) a person, other than the particular person, on or before May 2, 2006, entered into an agreement described in paragraph (a) in respect of a residential unit situated in the residential complex or in the addition that the builder is deemed to have supplied (as described in paragraph (c)) and that agreement was not terminated before July 1, 2006,

    the Minister shall, subject to subsection (3),

    • (f) if the particular person is entitled to claim a rebate under subsection 254.1(2) in respect of the complex, pay a rebate to the particular person, in addition to the rebate payable under subsection 256.5(1), equal to the amount determined by the formula

      A × [0.01 - ((B/A)/7)]

      where

      A
      is the amount determined by the formula

      C × (100/D)

      where

      C
      is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex or the addition, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and
      D
      is
      • (i) if the complex is situated in a participating province, 115, and

      • (ii) in any other case, 107, and

      B
      is the amount of the rebate under subsection 254.1 that the particular person is entitled to claim in respect of the complex, and
    • (g) if the particular person is not entitled to claim a rebate under subsection 254.1(2) in respect of the complex, pay a rebate to the particular person, in addition to the rebate payable under subsection 256.5(1), equal to the amount determined by the formula

      E/F

      where

      E
      is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of a building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex or the addition, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and
      F
      is
      • (i) if the complex is situated in a participating province, 115, and

      • (ii) in any other case, 107.

  • Marginal note:Group of individuals

    (2) If the supplies described in subsection (1) are made to two or more individuals, the references in that subsection to a particular person shall be read as references to all of those individuals as a group, but, in the case of a rebate under paragraph (1)(f), only the individual that applied for the rebate under section 254.1 may apply for the rebate under that paragraph.

  • Marginal note:Application for rebate

    (3) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after the day on which possession of the unit referred to in paragraph (1)(b) is transferred to the person.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2007, c. 35, s. 194
 
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