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

Full Document:  

Act current to 2021-10-07 and last amended on 2021-07-01. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION VIRebates (continued)

Marginal note:Transitional rebate for builder

  •  (1) If

    • (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 a 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) the builder is deemed under subsection 191(3) or (4) to have made and received on or after July 1, 2006, 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,

    • (c) 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 (b)) and that agreement was not terminated before July 1, 2006,

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

    • (e) 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), in respect of the tax referred to in paragraph (d),

    the Minister shall, subject to subsection (2), pay a rebate to the builder equal to the amount determined by the formula

    A × [0.01 - ((B/A)/7)]

    where

    A
    is the amount determined by the formula

    C - [D × (100/E)]

    where

    C
    is the fair market value of the complex or, if the builder is deemed to have made a supply of an addition, of the addition, at the time the builder is deemed to have made the supply referred to in paragraph (b),
    D
    is
    • (i) if the builder is deemed to have made a supply of a complex, the total of all amounts, each of which is the consideration payable by a person to the builder for the supply by way of sale to the person of the building or part of it forming part of the complex or of any other structure that forms part of the complex, or

    • (ii) if the builder is deemed to have made a supply of an addition, the total of all amounts, each of which is the consideration payable by a person to the builder for the supply by way of sale to the person of the building or part of it forming part of the addition or of any other structure that forms part of the addition, and

    E
    is
    • (i) if the complex is situated in a participating province, 115, and

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

    B
    is the rebate, if any, under subsection 256.2(4) that the builder is entitled to claim in respect of the complex or, if the builder is deemed to have made a supply of an addition, the addition.
  • Marginal note:Application for rebate

    (2) A rebate under this section in respect of a residential complex or an addition to it shall not be paid to a builder, unless the builder files an application for the rebate within two years after the end of the month in which tax referred to in subsection (1) 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.]
  • 2006, c. 4, s. 29
  • 2007, c. 35, s. 193

Marginal note:Transitional rebate — 2008 rate reduction

  •  (1) If a particular person, other than a cooperative housing corporation,

    • (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008,

    • (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and

    • (c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.3(1), in respect of the tax referred to in paragraph (b),

    the Minister shall, subject to subsection (7), pay a rebate to the particular person, in addition to the rebate payable under subsection 256.3(1), equal to 1% of the value of the consideration for the supply.

  • Marginal note:Transitional rebate — 2008 rate reduction

    (2) If a particular person, other than a cooperative housing corporation,

    • (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008,

    • (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and

    • (c) is entitled to claim a rebate under subsection 256.2(3) in respect of any residential unit situated in the complex,

    the Minister shall, subject to subsection (7), pay a rebate to the particular person, in addition to the rebate payable under subsection 256.3(2), equal to the amount determined by the formula

    A × [0.01 - ((B/A)/7)]

    where

    A
    is the consideration payable for the supply to the particular person of the complex, and
    B
    is the amount of the rebate under subsection 256.2(3) that the particular person is entitled to claim in respect of the complex.
  • Marginal note:Transitional rebate — 2008 rate reduction

    (3) If a particular person, other than a cooperative housing corporation,

    • (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008,

    • (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and

    • (c) is entitled to claim a rebate under section 259 in respect of the tax referred to in paragraph (b) and is not entitled to claim any input tax credit or any other rebate, other than a rebate under this subsection or under subsection 256.3(3), in respect of that tax,

    the Minister shall, subject to subsection (7), pay a rebate to the particular person, in addition to the rebate payable under subsection 256.3(3), equal to the amount determined by the formula

    A × [0.01 - ((B/A)/7)]

    where

    A
    is the consideration payable for the supply to the particular person of the complex, and
    B
    is
    • (i) in the case where the complex is situated in a participating province, the amount of the rebate under section 259 that the particular person would have been entitled to claim if no tax under subsection 165(2) would have been payable or paid in respect of the complex, and

    • (ii) in any other case, the amount of the rebate under section 259 that the particular person is entitled to claim in respect of the complex.

  • Marginal note:Transitional rebate — 2008 rate reduction

    (4) If a cooperative housing corporation

    • (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the corporation on or after January 1, 2008,

    • (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and

    • (c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection, section 256.2, subsection 256.3(4) or section 259 in respect of the tax referred to in paragraph (b),

    the Minister shall, subject to subsection (7), pay a rebate to the corporation, in addition to the rebate payable under subsection 256.3(4), equal to the amount determined by the formula

    A × [0.01 - ((B/A)/7)]

    where

    A
    is the consideration payable for the supply, and
    B
    is
    • (i) if the corporation is entitled to claim a rebate under section 259 in respect of the complex,

      • (A) in the case where the complex is situated in a participating province, the amount of the rebate under section 259 that the corporation would have been entitled to claim if no tax under subsection 165(2) would have been payable or paid in respect of the complex, and

      • (B) in any other case, the amount of the rebate under section 259 that the corporation is entitled to claim in respect of the complex,

    • (ii) 36% of the tax paid under subsection 165(1) by the corporation in respect of the supply if the corporation is not entitled to claim a rebate under section 259 in respect of the complex, and

      • (A) the corporation is entitled to, or can reasonably expect to be entitled to, claim a rebate under section 256.2 in respect of any residential unit situated in the complex, or

      • (B) it is the case that, or it can reasonably be expected that, a share of the capital stock of the corporation is or will be sold to an individual for the purpose of using a residential unit in the complex as the primary place of residence of the individual, or of a relation (as defined in subsection 255(1)) of the individual, and that the individual is or will be entitled to claim a rebate under section 255 in respect of the share, and

    • (iii) in any other case, zero.

  • Marginal note:Transitional rebate — 2008 rate reduction

    (5) If a particular individual

    • (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular individual on or after January 1, 2008,

    • (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and

    • (c) is entitled to claim a rebate under subsection 254(2) in respect of the complex,

    the Minister shall, subject to subsection (7), pay a rebate to the particular individual, in addition to the rebate payable under subsection 256.3(5), equal to the amount determined by the formula

    A × [0.01 - ((B/A)/7)]

    where

    A
    is the total of all amounts, each of which is the consideration payable for the supply to the particular individual of the complex or for any other taxable supply to the particular individual of an interest in the complex in respect of which the particular individual has paid tax under subsection 165(1) calculated at the rate of 7%, and
    B
    is the amount of the rebate under subsection 254(2) that the particular individual is entitled to claim in respect of the complex.
  • Marginal note:Group of individuals

    (6) If a supply of a residential complex is made to two or more individuals, the references in subsection (5) to a particular individual shall be read as references to all of those individuals as a group, but only the particular individual that applied for the rebate under section 254 may apply for the rebate under subsection (5).

  • Marginal note:Application for rebate

    (7) 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 ownership of the complex 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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