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

Full Document:  

Act current to 2022-11-16 and last amended on 2022-10-01. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION VIRebates (continued)

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 after May 2, 2006, but on or before October 30, 2007, 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 6%, and

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

    the Minister shall, subject to subsection (7), pay a rebate to the particular person 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 after May 2, 2006, but on or before October 30, 2007, 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 6%, 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 equal to the amount determined by the formula

    A × [0.01 - ((B/A)/6)]

    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 after May 2, 2006, but on or before October 30, 2007, 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 6%, 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, in respect of that tax,

    the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to the amount determined by the formula

    A × [0.01 - ((B/A)/6)]

    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 after May 2, 2006, but on or before October 30, 2007, 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 6%, and

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

    the Minister shall, subject to subsection (7), pay a rebate to the corporation equal to the amount determined by the formula

    A × [0.01 - ((B/A)/6)]

    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 after May 2, 2006, but on or before October 30, 2007, 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 6%, 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 equal to the amount determined by the formula

    A × [0.01 - ((B/A)/6)]

    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 6%, 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

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

  •  (1) If

    • (a) under an agreement, evidenced in writing, entered into after May 2, 2006, but on or before October 30, 2007, 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 6%, 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 equal to the amount determined by the formula

      A × [0.01 - ((B/A)/6)]

      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, 114, and

      • (ii) in any other case, 106, 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), in respect of the tax referred to in paragraph (c), pay a rebate to the builder equal to the amount determined by the formula

      (E - F) × [0.01 - ((G/(E - F))/6)]

      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 after May 2, 2006, but on or before October 30, 2007, 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 6%, 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 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, 114, and

      • (ii) in any other case, 106, and

    • (f) if the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection, in respect of the tax referred to in paragraph (c), pay a rebate to the builder 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, 114, and

      • (ii) in any other case, 106.

  • 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 6%, 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 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 (c)) and that agreement was not terminated before January 1, 2008,

    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 equal to the amount determined by the formula

      A × [0.01 - ((B/A)/6)]

      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, 114, and

      • (ii) in any other case, 106, and

      B
      is the amount of the rebate under section 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 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, 114, and

      • (ii) in any other case, 106.

  • 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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