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

Full Document:  

Act current to 2019-08-28 and last amended on 2019-08-28. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION VIRebates (continued)

Marginal note:Transitional rebate for builder — 2008 rate reduction

  •  (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 January 1, 2008, 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 after May 2, 2006, but on or before October 30, 2007, or

      • (ii) a person, other than the particular person, after May 2, 2006, but on or before October 30, 2007, 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 January 1, 2008,

    • (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 6%, 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)/6)]

    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, 114, and

    • (ii) in any other case, 106, 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.]
  • 2007, c. 35, s. 194

Marginal note:Non-registrant sale of real property

  •  (1) If a person who is not a registrant makes a particular taxable supply of real property by way of sale, the Minister shall, subject to subsections (1.1) and (2), pay a rebate to the person equal to the lesser of

    • (a) the basic tax content of the property at the particular time, and

    • (b) the tax that is or would, in the absence of section 167 or 167.11, be payable in respect of the particular supply.

  • Marginal note:Limitation

    (1.1) If the particular taxable supply referred to in subsection (1) is made at a particular time by a public sector body to another person with whom the public sector body is not dealing at arm’s length, the rebate under subsection (1) shall not exceed the lesser of

    • (a) the basic tax content of the property at the particular time, and

    • (b) the amount determined by the formula

      (A/B) × C

      where

      A
      is the basic tax content of the property at the particular time,
      B
      is the amount that would be the basic tax content of the property at that time if that amount were determined without reference to the description of B in paragraph (a) and the description of K in paragraph (b) of the definition basic tax content in subsection 123(1), and
      C
      is the tax that is or would, in the absence of section 167, be payable in respect of the particular taxable supply.
  • Marginal note:Application for rebate

    (2) A rebate shall not be paid under subsection (1) to a person in respect of the supply by way of sale of real property by the person unless the person files an application for the rebate within two years after the day the consideration for the supply became due or was paid without having become due.

  • Marginal note:Redemption of real property

    (3) Where

    • (a) for the purposes of satisfying in whole or in part a debt or obligation owing by a person (in this subsection referred to as the “debtor”), a creditor exercises a right under an Act of Parliament or the legislature of a province or an agreement relating to a debt security to cause the supply of real property, and

    • (b) under the Act or the agreement, the debtor has a right to redeem the property,

    the following rules apply:

    • (c) the debtor is not entitled to claim a rebate under subsection (1) with respect to the property unless the time limit for redeeming the property has expired and the debtor has not redeemed the property, and

    • (d) where the debtor is entitled to claim the rebate, consideration for the supply is deemed, for the purposes of subsection (2), to have become due on the day on which the time limit for redeeming the property expires.

  • [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. 114
  • 1997, c. 10, ss. 68, 226
  • 2006, c. 4, s. 30
  • 2007, c. 18, s. 41

Marginal note:Sale of personal property by non-registrant municipality

  •  (1) If a person that is a municipality, or is designated to be a municipality for the purposes of section 259, and that is not a registrant makes, at any time, a taxable supply by way of sale of personal property that is capital property of the person (other than property of a person designated to be a municipality for the purposes of section 259 that is not designated municipal property of the person), the Minister shall, subject to subsection (2), pay a rebate to the person equal to the lesser of

    • (a) the basic tax content of the property at that time, and

    • (b) the tax that is or would, in the absence of section 167, be payable in respect of the taxable supply.

  • Marginal note:Application for rebate

    (2) A rebate shall not be paid to a person under subsection (1) unless the person files an application for the rebate within two years after the day on which the consideration for the supply became due or was paid without having become due.

  • Marginal note:Redemption of personal property

    (3) If, for the purposes of satisfying in whole or in part a debt or obligation owing by a person (in this subsection referred to as the “debtor”), a creditor exercises a right under an Act of Parliament or the legislature of a province or an agreement relating to a debt security to cause the supply of personal property and the debtor has a right to redeem the property under the Act or the agreement, the following rules apply:

    • (a) the debtor is not entitled to claim a rebate under subsection (1) with respect to the property unless the time limit for redeeming the property has expired and the debtor has not redeemed the property; and

    • (b) if the debtor is entitled to claim the rebate, consideration for the supply is deemed, for the purposes of subsection (2), to have become due on the day on which the time limit for redeeming the property expires.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2004, c. 22, s. 38
 
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