Excise Tax Act

Meaning of relation

• 255 (1) In this section, relation of a particular individual means another individual who is related to the particular individual or who is a former spouse or common-law partner of the particular individual.

• Marginal note:Cooperative housing rebate

  (2) Where

  • (a) a cooperative housing corporation has paid tax in respect of a taxable supply to the corporation of a residential complex,

  • (b) the corporation makes a supply of a share of the capital stock of the corporation to a particular individual and transfers ownership of the share to the particular individual,

  • (c) at the time the particular individual becomes liable or assumes liability under an agreement of purchase and sale of the share entered into between the corporation and the particular individual, the particular individual is acquiring the share for the purpose of using a residential unit in the complex as the primary place of residence of the particular individual or a relation of the particular individual,

  • (d) the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the share or an interest in the corporation, complex or unit, is less than $472,500,

  • (e) after the construction or substantial renovation of the complex is substantially completed and before possession of the unit is given to the particular individual as an incidence of ownership of the share, the unit was not occupied by any individual as a place of residence or lodging, and

  • (f) either

    • (i) the first individual to occupy the unit as a place of residence after possession of the unit is given to the particular individual is the particular individual or a relation of the particular individual, or

    • (ii) the particular individual makes a supply by way of sale of the share and ownership of the share is transferred to the recipient of that supply before the unit is occupied by any individual as a place of residence or lodging,

  the Minister shall, subject to subsection (3), pay a rebate to the particular individual equal to

  • (g) if the total consideration is not more than $367,500, an amount equal to 1.71% of the total consideration, and

  • (h) if the total consideration is more than $367,500 but less than $472,500, the amount determined by the formula

    A × [($472,500 - B)/$105,000]

    where

    A

    is the lesser of $6,300 and 1.71% of the total consideration, and

    B

    is the total consideration.

• Marginal note:Owner-occupant of a residential unit

  (2.01) For the purpose of subsection (2.1), an individual is an owner-occupant of a residential unit at any time if it is the primary place of residence of the individual at that time and

  • (a) it is owned at that time by the individual or by another individual who is their spouse or common-law partner at that time; or

  • (b) it is in a residential complex of a cooperative housing corporation and the individual, or another individual who is their spouse or common-law partner at that time, holds at that time a share of the capital stock of the corporation for the purpose of using the residential unit.

• Marginal note:Relevant transfer date

  (2.02) For the purpose of subsection (2.1), the relevant transfer date in respect of a share of the capital stock of a cooperative housing corporation that is supplied to the particular individual referred to in that subsection is the day on which ownership of the share is transferred to the particular individual.

• Marginal note:Rebate in Nova Scotia

  (2.1) If

  • (a) a particular individual has acquired a share of the capital stock of a cooperative housing corporation for the purpose of using a residential unit in a residential complex of the corporation that is situated in Nova Scotia as the primary place of residence of the particular individual or of a relation of the particular individual,

  • (b) the corporation has paid tax under subsection 165(2) in respect of a taxable supply to the corporation of the complex,

  • (c) the particular individual is entitled to a rebate under subsection (2) in respect of the share or would be so entitled if the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the share or an interest in the corporation, complex or unit, were less than $472,500,

  • (d) it is the case that

    • (i) neither the particular individual nor any other individual who is their spouse or common-law partner on the relevant transfer date was an owner-occupant of a residential unit in any other residential complex in Canada during the period (in this paragraph referred to as the “relevant period”) that begins on the first day of the first full calendar month in the five-year period ending on the relevant transfer date and that ends on the relevant transfer date, or

    • (ii) on the last day when any of the individuals referred to in subparagraph (i) was an owner-occupant of a residential unit in a residential complex in Canada during the relevant period, that residential unit was destroyed otherwise than voluntarily by any of them, and

  • (e) if, at the time referred to in paragraph (2)(c), the particular individual is acquiring the share for the purpose of using a residential unit in the complex as the primary place of residence of a relation of the particular individual, but not for use as the primary place of residence of the particular individual or of their spouse or common-law partner, the circumstances described in subparagraph (d)(i) or (ii) would be satisfied if the references in those subparagraphs to the particular individual were references to the relation,

  the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to the lesser of $1,500 and 1.39% of the total consideration.

• Marginal note:Application for rebate

  (3) A rebate under this section in respect of a share of the capital stock of a cooperative housing corporation shall not be paid to an individual unless the individual files an application for the rebate within two years after the day ownership of the share is transferred to the individual.