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

Marginal note:Housing rebates — participating provinces

• 256.21 (1) If a sales tax harmonization agreement with the government of a participating province allows for rebates in respect of residential property relating to the new harmonized value-added tax system in respect of that participating province, the Minister shall pay in prescribed circumstances a rebate in respect of prescribed property to a prescribed person, or a person of a prescribed class, equal to an amount determined in prescribed manner.

• Marginal note:Application for rebate

  (2) A rebate in respect of an amount shall not be paid under subsection (1) to a person unless the person files an application for the rebate within the prescribed time.

• Marginal note:Payment or credit of rebates

  (3) In the case of a rebate under subsection (1) (other than a rebate prescribed under subsection (6)), in prescribed circumstances, a prescribed person, or a person of a prescribed class, may pay or credit the amount of a rebate under subsection (1) to an individual of a prescribed class if the individual submits to the person in prescribed manner an application in prescribed form containing prescribed information.

• Marginal note:Forwarding of application

  (4) If an application in respect of a rebate is submitted to a person under subsection (3)

  • (a) the person shall transmit the application to the Minister in prescribed manner on or before the day on or before which the person’s return under Division V for the reporting period in which the rebate is paid or credited is required to be filed; and

  • (b) interest under subsection 297(4) is not payable in respect of the rebate.

• Marginal note:Joint and several liability — subsection (3)

  (5) If a particular person pays or credits an amount of a rebate to another person under subsection (3), and the particular person knows or ought to know that the other person is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the other person is entitled, the particular person and the other person are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264.

• Marginal note:Assignment

  (6) In the case of a rebate that is payable under subsection (1) in relation to the transition of a province to the new harmonized value-added tax system and that is prescribed for the purposes of this subsection, a person that is prescribed for the purposes of subsection (1) may, despite section 67 of the Financial Administration Act and any other provision of a law of Canada or a province, assign the rebate in prescribed circumstances to a prescribed person or a person of a prescribed class.

• Marginal note:Form and manner of assignment

  (7) An assignment made under subsection (6) of a rebate in respect of a participating province shall be made in prescribed form containing prescribed information and the form shall be filed with the Minister in prescribed manner on or before the day that is four years after the harmonization date for the participating province.

• Marginal note:Effect of assignment

  (8) An assignment made under subsection (6) is not binding on Her Majesty in right of Canada and, without limiting the generality of the foregoing,

  • (a) the Minister is not required to pay to the assignee the assigned amount;

  • (b) the assignment does not create any liability of Her Majesty in right of Canada to the assignee; and

  • (c) the rights of the assignee are subject to all equitable and statutory rights of set-off in favour of Her Majesty in right of Canada.

• Marginal note:Joint and several liability — subsection (6)

  (9) If an amount of a rebate is assigned to a particular person by another person under subsection (6) and the particular person knows or ought to know that the other person is not entitled to the rebate or that the amount assigned exceeds the rebate to which the other person is entitled, the particular person and the other person are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264.

• Marginal note:Assessment

  (10) The Minister may at any time assess an assignee in respect of any amount payable by reason of subsection (9) and sections 296 to 311 apply with any modifications that the circumstances may require.

Marginal note:Transitional rebate

• 256.3 (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 on or before May 2, 2006, 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 July 1, 2006,

  • (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, 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

  (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 on or before May 2, 2006, 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 July 1, 2006,

  • (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, 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)/7)]

  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

  (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 on or before May 2, 2006, 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 July 1, 2006,

  • (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, 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)/7)]

  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

  (4) If a cooperative housing corporation

  • (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, 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 July 1, 2006,

  • (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, 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)/7)]

  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

  (5) If a particular individual

  • (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, 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 July 1, 2006,

  • (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, 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)/7)]

  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 7%, 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.

Marginal note:Transitional rebate where section 254.1 applies

• 256.4 (1) If

  • (a) under an agreement, evidenced in writing, entered into on or before May 2, 2006, 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 July 1, 2006,

  • (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 7%, 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)/7)]

    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, 115, and

    • (ii) in any other case, 107, 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))/7)]

    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

  (2) If

  • (a) under an agreement, evidenced in writing, entered into on or before May 2, 2006, 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 July 1, 2006,

  • (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 7%, 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, 115, and

    • (ii) in any other case, 107, 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, 115, and

    • (ii) in any other case, 107.

• 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.