Excise Tax Act

Marginal note:Definitions

• 259 (1) In this section,

  charity

  organisme de bienfaisance

  charity includes a non-profit organization that operates, otherwise than for profit, a health care facility within the meaning of paragraph (c) of the definition of that expression in section 1 of Part II of Schedule V; (organisme de bienfaisance)

  claim period

  période de demande

  claim period of a person at any time means

  • (a) where the person is at that time a registrant, the reporting period of the person that includes that time, and

  • (b) in any other case, the period that includes that time and consists of either

    • (i) the first and second fiscal quarters in a fiscal year of the person, or

    • (ii) the third and fourth fiscal quarters in a fiscal year of the person; (période de demande)

  municipality

  municipalité

  municipality includes a person designated by the Minister, for the purposes of this section, to be a municipality, but only in respect of activities, specified in the designation, that involve the making of supplies (other than taxable supplies) by the person of municipal services; (municipalité)

  non-creditable tax charged

  taxe exigée non admise au crédit

  non-creditable tax charged, in respect of property or a service for a claim period of a person, means the amount, if any, by which

  • (a) the total (in this section referred to as “the total tax charged in respect of the property or service”) of all amounts each of which is

    • (i) tax in respect of the supply, importation or bringing into a participating province of the property or service that became payable by the person during the period or that was paid by the person during the period without having become payable (other than tax deemed to have been paid by the person or in respect of which the person is not entitled to claim an input tax credit only because of subsection 226(4)),

    • (ii) tax deemed under subsection 129(6), 129.1(4), 171(3) or 183(4), section 191 or subsection 211(4) to have been collected during the period by the person in respect of the property or service,

    • (ii.1) where the person is not a charity to which subsection 225.1(2) applies, tax deemed under subsection 183(5) or (6) to have been collected during the period by the person in respect of the property or service,

    • (iii) tax, calculated on the amount of an allowance in respect of the property or service, that is deemed under section 174 to have been paid during the period by the person,

    • (iv) tax deemed under section 175 or 180 to have been paid during the period by the person in respect of the property or service, or

    • (v) an amount in respect of the property or service that is required under subsection 129(7) or paragraph 171(4)(b) to be added in determining the net tax of the person for the period,

  exceeds

  • (b) the total of all amounts each of which is included in the total determined under paragraph (a) and

    • (i) is included in determining an input tax credit of the person in respect of the property or service for the period,

    • (ii) for which it can reasonably be regarded the person has obtained or is entitled to obtain a rebate, refund or remission under any other section of this Act or under any other Act of Parliament, or

    • (iii) is included in an amount adjusted, refunded or credited to or in favour of the person for which a credit note referred to in subsection 232(3) has been received by the person or a debit note referred to in that subsection has been issued by the person; (taxe exigée non admise au crédit)

  non-profit organization

  organisme à but non lucratif

  non-profit organization includes a prescribed government organization; (organisme à but non lucratif)

  percentage of government funding

  pourcentage de financement public

  percentage of government funding of a person for a fiscal year of the person means the percentage determined in prescribed manner; (pourcentage de financement public)

  selected public service body

  organisme déterminé de services publics

  selected public service body means

  • (a) a hospital authority,

  • (b) a school authority that is established and operated otherwise than for profit,

  • (c) a university that is established and operated otherwise than for profit,

  • (d) a public college that is established and operated otherwise than for profit, or

  • (e) a municipality; (organisme déterminé de services publics)

  specified percentage

  pourcentage établi

  specified percentage means

  • (a) in the case of a charity or a qualifying non-profit organization that is not a selected public service body, 50%,

  • (b) in the case of a hospital authority, 83%,

  • (c) in the case of a school authority, 68%,

  • (d) in the case of a university or public college, 67%, and

  • (e) in the case of a municipality, 100%; (pourcentage établi)

  specified provincial percentage

  pourcentage provincial établi

  specified provincial percentage means

  • (a) in the case of a charity, or a qualifying non-profit organization, that is not a selected public service body and that is resident in a participating province, 50%,

  • (b) in the case of a hospital authority resident in Nova Scotia, 83%,

  • (c) in the case of a school authority resident in Nova Scotia, 68%,

  • (d) in the case of a university or public college resident in Nova Scotia, 67%,

  • (e) in the case of a municipality resident in Nova Scotia or New Brunswick, 57.14%, and

  • (f) in any other case, 0%. (pourcentage provincial établi)

• Marginal note:Qualifying non-profit organization

  (2) For the purposes of this section, a person is a qualifying non-profit organization at any time in a fiscal year of the person if, at that time, the person is a non-profit organization and the percentage of government funding of the person for the year is at least 40%.

• Marginal note:Rebate for persons other than designated municipalities

  (3) If a person (other than a listed financial institution, a registrant prescribed for the purposes of subsection 188(5) and a person designated to be a municipality for the purposes of this section) is, on the last day of a claim period of the person or of the person's fiscal year that includes that claim period, a selected public service body, charity or qualifying non-profit organization, the Minister shall, subject to subsections (4.1) to (4.21) and (5), pay a rebate to the person equal to the total of

  • (a) the amount equal to the specified percentage of the non-creditable tax charged in respect of property or a service (other than a prescribed property or service) for the claim period, and

  • (b) the amount equal to the specified provincial percentage of the non-creditable tax charged in respect of property or a service (other than a prescribed property or service) for the claim period.

• Marginal note:Rebate for designated municipalities

  (4) If a person is, on the last day of a claim period of the person or of the person's fiscal year that includes that claim period, designated to be a municipality for the purposes of this section in respect of activities (in this subsection referred to as the designated activities) specified in the designation, the Minister shall, subject to subsections (4.01) to (5), pay a rebate to the person in respect of property or a service (other than a prescribed property or service) equal to the total of

  • (a) all amounts, each of which is an amount determined by the formula

    A x B x C

    where

    A

    is the specified percentage,

    B

    is an amount that is included in the total tax charged in respect of the property or service for the claim period and is an amount of tax in respect of a supply made to, or the importation or bringing into a participating province of the property by, the person at any time, an amount deemed to have been paid or collected at any time by the person, an amount required to be added under subsection 129(7) in determining the person's net tax as a result of a branch or division of the person becoming a small supplier division at any time, or an amount required to be added under paragraph 171(4)(b) in determining the person's net tax as a result of the person ceasing, at any time, to be a registrant, and

    C

    is the extent (expressed as a percentage) to which the person intended, at that time, to consume, use or supply the property or service in the course of the designated activities, and

  • (b) all amounts, each of which is an amount determined by the formula

    D x E x F

    where

    D

    is the specified provincial percentage,

    E

    is an amount that is included in the total tax charged in respect of the property or service for the claim period and is an amount of tax in respect of a supply made to, or the importation or bringing into a participating province of the property by, the person at any time, an amount deemed to have been paid or collected at any time by the person, an amount required to be added under subsection 129(7) in determining the person's net tax as a result of a branch or division of the person becoming a small supplier division at any time, or an amount required to be added under paragraph 171(4)(b) in determining the person's net tax as a result of the person ceasing, at any time, to be a registrant, and

    F

    is the extent (expressed as a percentage) to which the person intended, at that time, to consume, use or supply the property or service in the course of the designated activities.

• Marginal note:Restriction

  (4.01) An amount shall not be included in determining the value of B or E in subsection (4) in respect of a claim period of a person to the extent that

  • (a) the amount is included in determining an input tax credit of the person;

  • (b) it can reasonably be regarded that the person has obtained or is entitled to obtain a rebate, refund or remission of the amount under any other section of this Act or under any other Act of Parliament; or

  • (c) the amount is included in an amount adjusted, refunded or credited to or in favour of the person for which a credit note referred to in subsection 232(3) has been received by the person or a debit note referred to in that subsection has been issued by the person.

• Marginal note:Apportionment of rebate

  (4.1) Subject to subsections (4.2) and (4.21), if a person is a charity, a public institution or a qualifying non-profit organization, and is a selected public service body, the rebate, if any, payable to the person under subsection (3) or (4) in respect of property or a service for a claim period is equal to the total of

  • (a) 50% of the non-creditable tax charged in respect of the property or service for the claim period, and

  • (b) the total of all amounts, each of which is an amount that would be determined under paragraph (4)(a) or (b) in respect of the property or service for the claim period if subsection (4) applied to the person and if

    • (i) the reference in subsection (4) to specified percentage were read as a reference to the specified percentage applicable to a selected public service body described in whichever of paragraphs (a) to (e) of the definition of that expression in subsection (1) applies to the person minus 50%,

    • (ii) the reference in subsection (4) to specified provincial percentage were read as a reference to the greater of the specified provincial percentage applicable to a selected public service body described in whichever of paragraphs (a) to (e) of the definition of that expression in subsection (1) applies to the person minus 50% and 0%, and

    • (iii) in the case of a person who is not designated to be a municipality for the purposes of this section, the reference in the description of C or F in subsection (4) to designated activities were read as a reference to

      • (A) in the case of a person determined to be a municipality under paragraph (b) of the definition municipality in subsection 123(1), activities engaged in by the person in the course of fulfilling the person's responsibilities as a local authority, and

      • (B) in any other case, activities engaged in by the person in the course of operating a recognized degree-granting institution, a college affiliated with, or research body of, such an institution, a public hospital, an elementary or secondary school or a post-secondary college or technical institute, as the case may be.

• Marginal note:Exclusions

  (4.2) In determining an amount under paragraphs (3)(a) and (4)(a) for the purpose of determining a rebate payable to a person, no tax under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 payable or deemed to have been paid or collected by the person shall be included

  • (a) in any amount referred to in any of subparagraphs (a)(i) to (iv) of the definition non-creditable tax charged in subsection (1);

  • (b) in any amount referred to in subparagraph (a)(v) of that definition that is required under subsection 129(7) to be added in determining the person's net tax; or

  • (c) in determining any amount referred to in subparagraph (a)(v) of that definition that is an input tax credit required under paragraph 171(4)(b) to be added in determining the person's net tax.

• Marginal note:Exclusions

  (4.21) In determining an amount under paragraphs (3)(b) and (4)(b) for the purpose of determining a rebate payable to a person, no tax under any of subsection 165(1) and sections 212 and 218 payable or deemed to have been paid or collected by the person shall be included

  • (a) in any amount referred to in any of subparagraphs (a)(i) to (iv) of the definition non-creditable tax charged in subsection (1);

  • (b) in any amount referred to in subparagraph (a)(v) of that definition that is required under subsection 129(7) to be added in determining the person's net tax; or

  • (c) in determining any amount referred to in subparagraph (a)(v) of that definition that is an input tax credit required under paragraph 171(4)(b) to be added in determining the person's net tax.

• Marginal note:Rebate to certain selected public service bodies in Newfoundland

  (4.3) Despite subsection (4.1), if a rebate under this section in respect of property or a service for a claim period is payable to a person that

  • (a) is a selected public service body resident in Newfoundland,

  • (b) is a charity, a public institution or a qualifying non-profit organization, and

  • (c) has activities (in this subsection referred to as its “other activities”)

    • (i) in the case of a person that is designated to be a municipality for the purposes of this section, that are not designated activities (within the meaning of subsection (4)), and

    • (ii) in any other case, that it engages in otherwise than in the course of fulfilling its responsibilities as a local authority or of operating a public hospital, an elementary or secondary school, a post-secondary college or technical institute, a recognized degree-granting institution or a college affiliated with or research body of such a degree-granting institution, as the case may be,

  the amount of the rebate is equal to the total of

  • (d) the amount of the rebate as otherwise determined under subsection (4.1), and

  • (e) the total of all amounts each of which is an amount that would be determined under paragraph (4)(a) or (b) in respect of the property or service for the claim period if

    • (i) the specified percentage for the purposes of subsection (4) were 0%,

    • (ii) the specified provincial percentage for the purposes of that subsection were 50%, and

    • (iii) the reference to designated activities in the description of F in that subsection were a reference to the person's other activities.

• Marginal note:Application for rebate

  (5) A rebate under this section in respect of a claim period in a fiscal year of a person shall not be paid to the person unless the person files an application for the rebate after the first day in that year that the person is a selected public service body, charity or qualifying non-profit organization and within four years after the day that is

  • (a) where the person is a registrant, the day on or before which the person is required to file the return under Division V for the period; and

  • (b) where the person is not a registrant, the last day of the period.

• Marginal note:Exception to limitation period

  (5.1) If

  • (a) tax in respect of a supply of property or a service became payable by a person in a particular claim period of the person,

  • (b) the supplier did not, before the end of the last claim period of the person that ends within four years after the end of the particular claim period, charge the tax in respect of the supply,

  • (c) the supplier discloses in writing to the person that the Minister has assessed the supplier for that tax, and

  • (d) the person pays that tax after the end of that last claim period and before that tax is included in determining a rebate under this section claimed by the person,

  the following rules apply:

  • (e) for the purposes of this section, that tax is deemed to have become payable by the person in the person’s claim period in which the person pays that tax and not to have become payable in the particular claim period,

  • (f) the portion of the rebate of the person under this section in respect of the property or service for the person’s claim period in which the person pays that tax that is in excess of the amount of that rebate that would be determined without reference to this subsection

    • (i) may, despite subsection (6), be claimed in an application separate from the person’s application for other rebates under this section for that claim period, and

    • (ii) shall not be paid to the person unless that portion is claimed in an application filed by the person on a day that is after the beginning of the person’s fiscal year that includes that claim period and after the first day in that year that the person is a selected public service body, charity or qualifying non-profit organization and

      • (A) if the person is a registrant, not later than the day on or before which the person is required to file the return under Division V for that claim period, or

      • (B) if the person is not a registrant, within one month after the end of that claim period, and

  • (g) subsection (5) applies to the remaining portion of that rebate as if that remaining portion were in respect of a separate property or service.

• Marginal note:Limitation

  (6) Except where subsection (10) or (11) applies, a person shall not make more than one application for rebates under this section for any claim period of the person.

• Marginal note:Selected public service bodies

  (7) Where a selected public service body described in any of paragraphs (a) to (e) of the definition of that expression in subsection (1) acquires or imports property or a service primarily for consumption, use or supply in the course of activities engaged in by another person described in any other of those paragraphs, for the purpose of determining the amount of a rebate under this section to the body in respect of the non-creditable tax charged in respect of the property or service for any claim period of the body, the body shall be deemed to be engaged in those activities.

• Marginal note:Idem

  (8) Where a person acquires or imports property or a service primarily for consumption, use or supply in the course of activities engaged in by the person acting in the capacity of a selected public service body described in any of paragraphs (a) to (e) of the definition of that expression in subsection (1), the amount of any rebate under this section to the person in respect of the non-creditable tax charged in respect of the property or service for a claim period shall be determined as if the person were not a selected public service body described in any other of those paragraphs.

• (9) [Repealed, 2004, c. 22, s. 39]

• Marginal note:Application by branches or divisions

  (10) Where a person who is entitled to a rebate under subsection (3) or (4) is engaged in one or more activities in separate branches or divisions and is authorized under subsection 239(2) to file separate returns under Division V in relation to a branch or division, the person

  • (a) shall file separate applications under this section in respect of the branch or division; and

  • (b) shall not make more than one such application in respect of the branch or division for any claim period of the person.

• Marginal note:Application of section 239

  (11) Where a person who has not made an application under section 239 is entitled to a rebate under subsection (3) or (4) and is engaged in one or more activities in separate branches or divisions,

  • (a) section 239 applies to the person as if the references therein to “commercial activities” were references to “activities”, as if the references therein to “returns under this Division” and “returns” were references to “applications under section 259”, and as if the references therein to “registrant” were references to “person”;

  • (b) where, because of this subsection, a branch or division of the person is authorized under section 239 to file separate applications for rebates under this section, the person shall not make more than one such application in respect of the branch or division for any claim period of the person; and

  • (c) where, because of this subsection, the person is authorized under section 239 to file separate applications for rebates under this section in relation to a branch or division and the person is required to file returns under Division V, the person shall file separate returns under that Division in respect of the branch or division.

• Marginal note:Prescribed method

  (12) A prescribed person may determine the rebates payable to the person under this section in accordance with prescribed rules.

• Marginal note:Disclosure of municipal rebate information

  (13) If the amount of a rebate under subsection (3) or (4) that is approved by the Minister for payment to a municipality is increased as a result of the application to the municipality of the specified percentage instead of 57.14% in respect of any period, the Minister may, despite section 295, release for publication by the Government of Canada information as to the amount of the increase and any information necessary to identify the municipality. On publication, the information is not confidential information for the purposes of section 295.

• (14) and (15) [Repealed, 1997, c. 10, s. 69]

• (16) [Repealed, 1993, c. 27, s. 115]