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Excise Tax Act

Version of section 191.1 from 2003-01-01 to 2008-06-17:

Marginal note:Definitions

  •  (1) The definitions in this subsection apply in this section.

    government funding


    government funding, in respect of a residential complex, means an amount of money (including a forgivable loan but not including any other loan or a refund or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) paid or payable by

    • (a) a grantor, or

    • (b) an organization that received the amount from a grantor or another organization that received the amount from a grantor,

    to a builder of the complex or of an addition thereto for the purpose of making residential units in the complex available to individuals referred to in paragraph (2)(b). (subvention)



    grantor means

    • (a) a government or municipality, other than a corporation all or substantially all of whose activities are commercial activities or the supply of financial services or any combination thereof;

    • (b) a band (within the meaning assigned by section 2 of the Indian Act);

    • (c) a corporation that is controlled by a government, a municipality or a band referred to in paragraph (b) and one of the main purposes of which is to fund charitable or non-profit endeavours; and

    • (d) a trust, board, commission or other body that is established by a government, municipality, band referred to in paragraph (b) or corporation described in paragraph (c) and one of the main purposes of which is to fund charitable or non-profit endeavours. (subventionneur)

  • Marginal note:Subsidized residential complexes

    (2) For the purposes of subsections 191(1) to (4), where

    • (a) a builder of a residential complex or an addition thereto is deemed under any of subsections 191(1) to (4) to have, at any time, made and received a supply of the complex or addition,

    • (b) at least 10% of the residential units in the complex are intended to be supplied to

      • (i) seniors,

      • (ii) youths,

      • (iii) students,

      • (iv) individuals with a disability,

      • (v) individuals in distress or individuals in need of assistance,

      • (vi) individuals whose eligibility for occupancy of the units or for reduced lease payments is dependent on a means or income test,

      • (vii) individuals for whose benefit no other persons (other than public sector bodies) pay consideration for the supplies of the units and who either pay no consideration for the supplies or pay consideration that is significantly less than the consideration that could reasonably be expected to be paid for comparable supplies made by a person in the business of making such supplies for the purpose of earning a profit, or

      • (viii) any combination of individuals described in any of subparagraphs (i) to (vii), and

    • (c) except where the builder is a government or a municipality, the builder, at or before that time, has received or can reasonably expect to receive government funding in respect of the complex,

    the amount of tax in respect of the supply calculated on the fair market value of the complex or addition, as the case may be, is deemed to be equal to the greater of

    • (d) the amount that would, but for this subsection, be the tax calculated on that fair market value, and

    • (e) the total of all amounts each of which is tax that was payable by the builder in respect of

      • (i) real property that forms part of the complex or addition, as the case may be, or

      • (ii) an improvement to that real property.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1997, c. 10, s. 38
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