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

Full Document:  

Act current to 2021-11-17 and last amended on 2021-07-01. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION VIRebates (continued)

Marginal note:Transitional rebate for builder — 2008 rate reduction

  •  (1) If

    • (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 a 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) the builder is deemed under subsection 191(3) or (4) to have made and received on or after January 1, 2008, 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,

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

    • (d) the builder is deemed to have paid tax under subsection 165(1) in respect of the supply referred to in paragraph (b) calculated at the rate of 6%, and

    • (e) 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 (d),

    the Minister shall, subject to subsection (2), pay a rebate to the builder equal to the amount determined by the formula

    A × [0.01 - ((B/A)/6)]

    where

    A
    is the amount determined by the formula

    C - [D × (100/E)]

    where

    C
    is the fair market value of the complex or, if the builder is deemed to have made a supply of an addition, of the addition, at the time the builder is deemed to have made the supply referred to in paragraph (b),
    D
    is
    • (i) if the builder is deemed to have made a supply of a complex, the total of all amounts, each of which is the consideration payable by a person to the builder for the supply by way of sale to the person of the building or part of it forming part of the complex or of any other structure that forms part of the complex, or

    • (ii) if the builder is deemed to have made a supply of an addition, the total of all amounts, each of which is the consideration payable by a person to the builder for the supply by way of sale to the person of the building or part of it forming part of the addition or of any other structure that forms part of the addition, and

    E
    is
    • (i) if the complex is situated in a participating province, 114, and

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

    B
    is the rebate, if any, under subsection 256.2(4) that the builder is entitled to claim in respect of the complex or, if the builder is deemed to have made a supply of an addition, the addition.
  • Marginal note:Application for rebate

    (2) A rebate under this section in respect of a residential complex or an addition to it shall not be paid to a builder, unless the builder files an application for the rebate within two years after the end of the month in which tax referred to in subsection (1) 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:Non-registrant sale of real property

  •  (1) If a person who is not a registrant makes a particular taxable supply of real property by way of sale, the Minister shall, subject to subsections (1.1) and (2), pay a rebate to the person equal to the lesser of

    • (a) the basic tax content of the property at the particular time, and

    • (b) the tax that is or would, in the absence of section 167 or 167.11, be payable in respect of the particular supply.

  • Marginal note:Limitation

    (1.1) If the particular taxable supply referred to in subsection (1) is made at a particular time by a public sector body to another person with whom the public sector body is not dealing at arm’s length, the rebate under subsection (1) shall not exceed the lesser of

    • (a) the basic tax content of the property at the particular time, and

    • (b) the amount determined by the formula

      (A/B) × C

      where

      A
      is the basic tax content of the property at the particular time,
      B
      is the amount that would be the basic tax content of the property at that time if that amount were determined without reference to the description of B in paragraph (a) and the description of K in paragraph (b) of the definition basic tax content in subsection 123(1), and
      C
      is the tax that is or would, in the absence of section 167, be payable in respect of the particular taxable supply.
  • Marginal note:Application for rebate

    (2) A rebate shall not be paid under subsection (1) to a person in respect of the supply by way of sale of real property by the person unless the person files an application for the rebate within two years after the day the consideration for the supply became due or was paid without having become due.

  • Marginal note:Redemption of real property

    (3) Where

    • (a) for the purposes of satisfying in whole or in part a debt or obligation owing by a person (in this subsection referred to as the “debtor”), a creditor exercises a right under an Act of Parliament or the legislature of a province or an agreement relating to a debt security to cause the supply of real property, and

    • (b) under the Act or the agreement, the debtor has a right to redeem the property,

    the following rules apply:

    • (c) the debtor is not entitled to claim a rebate under subsection (1) with respect to the property unless the time limit for redeeming the property has expired and the debtor has not redeemed the property, and

    • (d) where the debtor is entitled to claim the rebate, consideration for the supply is deemed, for the purposes of subsection (2), to have become due on the day on which the time limit for redeeming the property expires.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 114
  • 1997, c. 10, ss. 68, 226
  • 2006, c. 4, s. 30
  • 2007, c. 18, s. 41

Marginal note:Sale of personal property by non-registrant municipality

  •  (1) If a person that is a municipality, or is designated to be a municipality for the purposes of section 259, and that is not a registrant makes, at any time, a taxable supply by way of sale of personal property that is capital property of the person (other than property of a person designated to be a municipality for the purposes of section 259 that is not designated municipal property of the person), the Minister shall, subject to subsection (2), pay a rebate to the person equal to the lesser of

    • (a) the basic tax content of the property at that time, and

    • (b) the tax that is or would, in the absence of section 167, be payable in respect of the taxable supply.

  • Marginal note:Application for rebate

    (2) A rebate shall not be paid to a person under subsection (1) unless the person files an application for the rebate within two years after the day on which the consideration for the supply became due or was paid without having become due.

  • Marginal note:Redemption of personal property

    (3) If, for the purposes of satisfying in whole or in part a debt or obligation owing by a person (in this subsection referred to as the “debtor”), a creditor exercises a right under an Act of Parliament or the legislature of a province or an agreement relating to a debt security to cause the supply of personal property and the debtor has a right to redeem the property under the Act or the agreement, the following rules apply:

    • (a) the debtor is not entitled to claim a rebate under subsection (1) with respect to the property unless the time limit for redeeming the property has expired and the debtor has not redeemed the property; and

    • (b) if the debtor is entitled to claim the rebate, consideration for the supply is deemed, for the purposes of subsection (2), to have become due on the day on which the time limit for redeeming the property expires.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2004, c. 22, s. 38

Definition of legal aid plan

  •  (1) In this section, legal aid plan means a legal aid plan administered under the authority of the government of a province.

  • Marginal note:Legal aid

    (2) Where a person responsible for the administration of a legal aid plan in a particular province pays tax in respect of a taxable supply of legal services under a legal aid plan, the following rules apply:

    • (a) the Minister shall pay to the person a rebate equal to the amount of tax payable by the person in respect of the supply; and

    • (b) the person shall not be entitled to any other rebate in respect of tax on that supply.

  • Marginal note:Application for rebate

    (3) A rebate under this section in respect of tax payable by a person shall not be paid to the person unless the person files an application for the rebate within four years after the end of the reporting period of the person in which the tax became payable.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12

Definition of qualifying motor vehicle

  •  (1) In this section, qualifying motor vehicle means a motor vehicle that is equipped with a device designed exclusively to assist in placing a wheelchair in the vehicle without having to collapse the wheelchair or with an auxiliary driving control to facilitate the operation of the vehicle by an individual with a disability.

  • Marginal note:Qualifying motor vehicle purchased in Canada

    (2) If

    • (a) a registrant makes a taxable supply by way of sale of a qualifying motor vehicle,

    • (b) the recipient has paid all tax payable in respect of the supply, and

    • (c) the supplier identifies in writing to the recipient a portion (in this subsection referred to as the “certified amount of the purchase price”) of the consideration for the supply that can reasonably be attributed to special features that have been incorporated into, or adaptations that have been made to, the vehicle

      • (i) for the purpose of its use by or in transporting an individual using a wheelchair, or

      • (ii) to equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability,

    the Minister shall, on application by the recipient filed within four years after the first day on which any tax in respect of the supply becomes payable, pay to the recipient a rebate of that portion of the total tax payable in respect of the supply that is equal to tax calculated on the certified amount of the purchase price.

  • Marginal note:Application to supplier

    (3) If

    • (a) a registrant has made a taxable supply by way of sale of a qualifying motor vehicle,

    • (b) tax has been paid or become payable in respect of the supply, and

    • (c) the recipient submits to the registrant, within four years after the first day on which any tax in respect of the supply becomes payable, an application for the rebate to which the recipient would be entitled under subsection (2) in respect of the vehicle if the recipient had paid all the tax payable in respect of the supply and applied for the rebate in accordance with that subsection,

    the registrant may pay to or credit in favour of the recipient the amount of the rebate.

  • Marginal note:Forwarding of application by supplier

    (4) If an application of a recipient for a rebate under subsection (2) is submitted to a registrant in the circumstances described in subsection (3),

    • (a) the registrant shall transmit the application to the Minister with the registrant’s return filed under Division V for the reporting period in which an amount on account of the rebate is paid or credited by the registrant to or in favour of the recipient;

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

    • (c) the recipient is not entitled to claim any input tax credit in respect of the tax to which the amount of the rebate paid or credited by the registrant relates.

  • Marginal note:Joint and several liability

    (5) If, under subsection (3), a registrant pays to or credits in favour of a recipient an amount on account of a rebate and the registrant knows or ought to know that the recipient is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the recipient is entitled, the registrant and the recipient are jointly and severally or solidarily liable to pay to the Receiver General under section 264 the amount that was paid or credited on account of the rebate or the excess amount, as the case may be.

  • Marginal note:Qualifying motor vehicle purchased outside Canada or a participating province

    (6) If

    • (a) a supply by way of sale of a qualifying motor vehicle is made outside Canada or a participating province,

    • (b) the supplier identifies in writing to the recipient a portion (in this subsection referred to as the “certified amount of the purchase price”) of the consideration for the supply that can reasonably be attributed to special features that have been incorporated into, or adaptations that have been made to, the vehicle

      • (i) for the purpose of its use by or in transporting an individual using a wheelchair, or

      • (ii) to equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability,

    • (c) the recipient imports the vehicle or brings it into the participating province, and

    • (d) [Repealed, 2007, c. 18, s. 42]

    • (e) the recipient has paid all tax payable in respect of the importation or bringing in, as the case may be,

    the Minister shall, on application by the recipient filed within four years after the recipient imports the vehicle or brings it into the participating province, as the case may be, pay to the recipient a rebate of

    • (f) if the vehicle is imported, that portion of the total tax payable under Division III in respect of the vehicle that is calculated on the total of

      • (i) the portion of the certified amount of the purchase price that is included in determining the value of the vehicle under section 215, and

      • (ii) the amount of all duties and taxes, if any, payable under the Customs Tariff, the Special Import Measures Act or any other law relating to customs in respect of the importation and calculated on the portion of the certified amount of the purchase price that is included in determining the value of the vehicle under that section, and

    • (g) if the vehicle is brought into the participating province, that portion of the total tax payable under Division IV.1 in respect of the vehicle that is calculated on the portion of the certified amount of the purchase price that is included in determining the value of the vehicle to which the tax rate for the participating province applies.

  • Marginal note:Lease of qualifying motor vehicle

    (7) If, at any time after April 3, 1998, a registrant enters into a particular agreement in writing with a recipient for the taxable supply by way of lease of a motor vehicle that is, at that time, a qualifying motor vehicle,

    • (a) there shall not be included, in determining the tax payable in respect of any supply to that recipient by way of lease of the vehicle made under the particular agreement or under any agreement for the variation or renewal of that lease, the portion of the consideration for that supply that is identified in writing to the recipient by the supplier and can reasonably be attributed to special features that have been incorporated into, or adaptations that have been made to, the vehicle

      • (i) for the purpose of its use by or in transporting an individual using a wheelchair, or

      • (ii) to equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability; and

    • (b) if, at a later time, the recipient exercises an option under the particular agreement, or under an agreement for the variation or renewal of that lease, to purchase the vehicle, the vehicle is deemed, for the purposes of subsections (2) and (6), to be a qualifying motor vehicle at that later time.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2000, c. 30, s. 75
  • 2007, c. 18, s. 42
 
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