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

Marginal note:Rebate for modification service

258.2 If

• (a) a person acquires a service (in this section referred to as the “modification service”), performed on a motor vehicle of the person outside Canada or a participating province, of specially equipping or adapting the vehicle for its use by or in transporting an individual using a wheelchair or specially equipping the vehicle with an auxiliary driving control to facilitate the operation of the vehicle by an individual with a disability,

• (b) the person imports the vehicle or brings it into the participating province, as the case may be, after the modification service is performed, and

• (c) the person 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 person filed within four years after the day the person imports the vehicle or brings it into the participating province, as the case may be, pay to the person a rebate of

• (d) 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 value of the vehicle under section 215 that is attributable to the modification service and any property (other than the vehicle) supplied in conjunction with, and because of, the supply of the service, 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 referred to in subparagraph (i), and

• (e) 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 value of the vehicle that is attributable to the modification service and any property (other than the vehicle) supplied in conjunction with, and because of, the supply of the service and that is included in determining the value of the vehicle to which the tax rate for the participating province applies.

Marginal note:Definitions

• 259 (1) In this section,

  ancillary supply

  ancillary supply means

  • (a) an exempt supply of a service of organizing or coordinating the making of facility supplies or home medical supplies in respect of which supply an amount, other than a nominal amount, is paid or payable to the supplier as medical funding, or

  • (b) the portion of an exempt supply (other than a facility supply, a home medical supply or a prescribed supply) of property or a service (other than a financial service) that represents the extent to which the property or service is, or is reasonably expected to be, consumed or used for making a facility supply and in respect of which portion an amount, other than a nominal amount, is paid or payable to the supplier as medical funding; (fourniture connexe)

  charity

  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

  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)

  external supplier

  external supplier means a charity, a public institution or a qualifying non-profit organization (other than a hospital authority or a facility operator), that makes ancillary supplies, facility supplies or home medical supplies; (fournisseur externe)

  facility operator

  facility operator means a charity, a public institution or a qualifying non-profit organization (other than a hospital authority), that operates a qualifying facility; (exploitant d’établissement)

  facility supply

  facility supply means an exempt supply (other than a prescribed supply) of property or a service in respect of which

  • (a) the property is made available, or the service is rendered, to an individual at a public hospital or qualifying facility as part of a medically necessary process of health care for the individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative health care, which process

    • (i) is undertaken in whole or in part at the public hospital or qualifying facility,

    • (ii) is reasonably expected to take place under the active direction or supervision, or with the active involvement, of

      • (A) a physician acting in the course of the practise of medicine,

      • (B) a midwife acting in the course of the practise of midwifery,

      • (C) a nurse practitioner acting in the course of the practise of a nurse practitioner, or

      • (D) a prescribed person acting in prescribed circumstances, and

    • (iii) in the case of chronic care that requires the individual to stay overnight at the public hospital or qualifying facility, requires or is reasonably expected to require that

      • (A) a registered nurse be at the public hospital or qualifying facility at all times when the individual is at the public hospital or qualifying facility,

      • (B) a physician or nurse practitioner be at, or be on-call to attend at, the public hospital or qualifying facility at all times when the individual is at the public hospital or qualifying facility,

      • (C) throughout the process, the individual be subject to medical management and receive a range of therapeutic health care services that includes registered nursing care, and

      • (D) it not be the case that all or substantially all of each calendar day or part during which the individual stays at the public hospital or qualifying facility is time during which the individual does not receive therapeutic health care services referred to in clause (C), and

  • (b) if the supplier does not operate the public hospital or qualifying facility, an amount, other than a nominal amount, is paid or payable as medical funding to the supplier; (fourniture en établissement)

  home medical supply

  home medical supply means an exempt supply (other than a facility supply or a prescribed supply) of property or a service

  • (a) that is made

    • (i) as part of a medically necessary process of health care for an individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative health care, and

    • (ii) after a physician acting in the course of the practise of medicine, a nurse practitioner acting in the course of the practise of a nurse practitioner or a prescribed person acting in prescribed circumstances has identified or confirmed that it is appropriate for the process to take place at the individual’s place of residence or lodging (other than a public hospital or a qualifying facility),

  • (b) in respect of which the property is made available, or the service is rendered, to the individual at the individual’s place of residence or lodging (other than a public hospital or a qualifying facility), on the authorization of a person who is responsible for coordinating the process and under circumstances in which it is reasonable to expect that the person will carry out that responsibility in consultation with, or with ongoing reference to instructions for the process given by, a physician acting in the course of the practise of medicine, a nurse practitioner acting in the course of the practise of a nurse practitioner or a prescribed person acting in prescribed circumstances,

  • (c) all or substantially all of which is of property or a service other than meals, accommodation, domestic services of an ordinary household nature, assistance with the activities of daily living and social, recreational and other related services to meet the psycho-social needs of the individual, and

  • (d) in respect of which an amount, other than a nominal amount, is paid or payable as medical funding to the supplier; (fourniture de biens ou services médicaux à domicile)

  medical funding

  medical funding of a supplier in respect of a supply means an amount of money (including a forgivable loan but not including any other loan or a refund, remission or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) that is paid or payable to the supplier in respect of health care services for the purpose of financially assisting the supplier in making the supply or as consideration for the supply by

  • (a) a government, or

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

    • (i) one of the purposes of which is organizing or coordinating the delivery of health care services to the public, and

    • (ii) in respect of which it is reasonable to expect that a government will be the primary source of funding for the activities of the person that are in respect of the delivery of health care services to the public during the fiscal year of the person in which the supply is made; (subvention médicale)

  midwife

  midwife means a person who is entitled under the laws of a province to practise the profession of midwifery; (sage-femme)

  municipality

  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

  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, by reason only of section 226, not entitled to claim an input tax credit),

    • (ii) tax deemed under subsection 129(6), 129.1(4), 171(3) or 183(4) or section 191 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

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

  percentage of government funding

  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)

  physician

  physician means a person who is entitled under the laws of a province to practise the profession of medicine; (médecin)

  qualifying funding

  qualifying funding of the operator of a facility for all or part of a fiscal year of the operator means a readily ascertainable amount of money (including a forgivable loan but not including any other loan or a refund, remission or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) that is paid or payable to the operator in respect of the delivery of health care services to the public for the purpose of financially assisting in operating the facility during the fiscal year or part, as consideration for an exempt supply of making the facility available for use in making facility supplies at the facility during the fiscal year or part or as consideration for facility supplies of property that are made available, or services that are rendered, at the facility during the fiscal year or part and is paid or payable by

  • (a) a government, or

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

    • (i) one of the purposes of which is organizing or coordinating the delivery of health care services to the public, and

    • (ii) in respect of which it is reasonable to expect that a government will be the primary source of funding for the activities of the person that are in respect of the delivery of health care services to the public during the fiscal year of the person in which the supply is made; (subvention admissible)

  selected public service body

  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,

  • (e) a municipality,

  • (f) a facility operator, or

  • (g) an external supplier; (organisme déterminé de services publics)

  specified activities

  specified activities means activities referred to in any of clauses (4.1)(b)(iii)(B) to (D), other than the operation of a public hospital; (activités déterminées)

  specified percentage

  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, a facility operator or an external supplier, 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

  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%,

  • (f) despite any of paragraphs (a) to (e), if there is a sales tax harmonization agreement with the government of a participating province that allows for rebates in respect of public service bodies relating to the new harmonized value-added tax system in respect of the participating province and if the participating province is prescribed for the purposes of this paragraph, in the case of a person of a prescribed class resident in the participating province, the prescribed percentage for that class in respect of the participating province, and

  • (g) in any other case, 0%; (pourcentage provincial établi)

  specified supply

  specified supply of property of a person means

  • (a) a taxable supply made to the person at any time after December 31, 2004, of property that was owned on that day by the person or by another person who is related to the person at that time, or

  • (b) a taxable supply that the person is deemed under subsection 211(4) to have made after December 30, 2004, of property that was, on that day, owned by the person, or by another person who last supplied the property to the person by way of sale and who was related to the person on the day the supply by way of sale was made. (fourniture déterminée)

• 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:Qualifying facilities

  (2.1) For the purposes of this section, a facility, or part of a facility, other than a public hospital, is a qualifying facility for a fiscal year, or any part of a fiscal year, of the operator of the facility or part, if

  • (a) supplies of services that are ordinarily rendered during that fiscal year or part to the public at the facility or part would be facility supplies if the references in the definition facility supply in subsection (1) to “public hospital or qualifying facility” were references to the facility or part;

  • (b) an amount, other than a nominal amount, is paid or payable to the operator as qualifying funding in respect of the facility or part for the fiscal year or part; and

  • (c) an accreditation, licence or other authorization that is recognized or provided for under a law of Canada or a province in respect of facilities for the provision of health care services applies to the facility or part during that fiscal year or part.

• 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) in the case of a person of a prescribed class resident in a participating province, the amount determined in prescribed manner for the purpose of the new harmonized value-added tax system or, in any other case, 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 × B × 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) in the case of a person of a prescribed class resident in a participating province, the amount determined in prescribed manner for the purpose of the new harmonized value-added tax system or, in any other case, all amounts, each of which is an amount determined by the formula

    D × E × 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, in the case of a person of a prescribed class resident in a participating province, the amount determined in prescribed manner for the purpose of the new harmonized value-added tax system and, in any other case, 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 “specified percentage applicable to a selected public service body described in whichever of paragraphs (a) to (g) 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 “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%”,

    • (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 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,

      • (B) in the case of a person acting in the person’s capacity as a hospital authority, activities engaged in by the person in the course of operating a public hospital, operating a qualifying facility for use in making facility supplies, or of making facility supplies, ancillary supplies or home medical supplies,

      • (C) in the case of a person acting in the person’s capacity as a facility operator, activities engaged in by the person in the course of operating a qualifying facility for use in making facility supplies, or of making facility supplies, ancillary supplies or home medical supplies,

      • (D) in the case of a person acting in the person’s capacity as an external supplier, activities engaged in by the person in the course of making ancillary supplies, facility supplies or home medical supplies, or

      • (E) 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, an elementary or secondary school or a post-secondary college or technical institute, as the case may be, and

    • (iv) 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 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, or

      • (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:Rebate for health care facility

  (4.11) Despite subsections (3), (4) and (4.1), if a person (other than a person that is a qualifying non-profit organization or a selected public service body described in any of paragraphs (a) to (d) of the definition selected public service body in subsection (1)) is a charity for the purposes of this section only because the person is a non-profit organization that operates, otherwise than for profit, one or more health care facilities within the meaning of paragraph (c) of the definition of that expression in section 1 of Part II of Schedule V, no amount in respect of property or a service is to be included in determining a rebate to be paid under this section to the person in respect of the property or service except to the extent to which the person intended, at the relevant time, to consume, use or supply the property or service

  • (a) in the course of activities engaged in by the person in the course of operating those health care facilities; or

  • (b) if the person is designated to be a municipality for the purposes of this section in respect of activities specified in the designation, in the course of those activities.

• Marginal note:Extent of consumption, use or supply — relevant time

  (4.12) Where reference is made to a relevant time in subsection (4.11) for the purposes of determining the extent to which a person intended to consume, use or supply property or a service in the course of certain activities in relation to an amount in respect of the property or service, the relevant time is

  • (a) in the case of an amount of tax in respect of a supply made to, or an importation or bringing into a participating province by, the person at any time, that time;

  • (b) in the case of an amount deemed to have been paid or collected at any time by the person, that time;

  • (c) in the case of 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, that time; and

  • (d) in the case of 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, that time.

• Marginal note:Exclusions

  (4.2) For the purposes of determining a rebate payable to a person, in determining an amount under paragraphs (3)(a) and (4)(a), or under paragraph (4.1)(a) if the applicable specified provincial percentage is 0% and the person is a selected public service body described in any of paragraphs (a) to (e) of the definition selected public service body in subsection (1) or in paragraph (f) or (g) of that definition if the person is resident in Newfoundland and Labrador, 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

      • (A) fulfilling its responsibilities as a local authority,

      • (B) 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, or

      • (C) making facility supplies, ancillary supplies or home medical supplies or operating a qualifying facility for use in making facility supplies,

  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:Application for rebate — subsequent claim period

  (6.1) If a rebate under this section in respect of property or a service for a particular claim period of a person is not claimed in an application for the particular claim period, the rebate may be claimed by the person in an application for a subsequent claim period of the person if the following conditions are met:

  • (a) the rebate has not been claimed in any application for any claim period of the person;

  • (b) the application for the subsequent claim period is filed by the person within two years after

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

    • (ii) if the person is not a registrant, the day that is three months after the last day of the particular claim period;

  • (c) the person does not, at any time throughout the period (in this subsection referred to as the “specified period”) beginning on the first day of the particular claim period and ending on the last day of the subsequent claim period, become or cease to be

    • (i) a charity,

    • (ii) a public institution,

    • (iii) a qualifying non-profit organization,

    • (iv) a person designated to be a municipality, or

    • (v) one of the bodies described in paragraphs (a) to (g) of the definition selected public service body in subsection (1); and

  • (d) throughout the specified period, the percentages — being the specified percentage, the specified provincial percentage or any other percentage specified in this section or in a regulation made under this Part that applies for the purposes of this section — that would be applicable in determining the amount of a rebate under this section in respect of the property or service, if tax in respect of the property or service had become payable and had been paid by the person on each day in the specified period, remain constant.

• Marginal note:Selected public service bodies

  (7) If a selected public service body acquires or imports property or a service primarily for consumption, use or supply in the course of activities engaged in by another selected public service body, 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 is deemed to be engaged in those activities.

• Marginal note:Selected public service bodies

  (8) If 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 (g) of the definition selected public service body 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.

• Marginal note:Application

  (14) For the purposes of this section, if a person incurs all or substantially all of the tax that is included in determining the amount of the non-creditable tax charged in respect of property or a service for a claim period of the person acting in the person’s capacity as a hospital authority, a facility operator or an external supplier, the person is deemed to have incurred all of the tax that is included in determining that amount in the course of fulfilling the person’s responsibilities as a hospital authority, a facility operator or an external supplier, as the case may be.

• Marginal note:Rules for specified supplies

  (15) Despite subsections (3), (4) and (4.1), for the purpose of applying subsection (4.1) to determine a rebate payable under subsection (3) or (4) to a person that is a hospital authority, a facility operator or an external supplier, for a claim period of the person, if the person is required to determine under paragraph (4.1)(b) a particular amount, in respect of a specified supply of property of the person made at any time, that would, if subsection (4) applied to the person, be determined by the formula in paragraph (4)(a) for the claim period and the value of C in that paragraph is the extent to which the person intended, at that time, to consume, use or supply the property in the course of specified activities, the particular amount shall be determined by the formula

  A × B

  where

  A

  is the amount that would, in the absence of this subsection, be determined to be the particular amount; and

  B

  is the amount determined by the formula

  (B ₁ - B ₂) / B ₁

  where

  B ₁

  is the fair market value of the property at the time of the supply, and

  B ₂

  is the fair market value of the property on January 1, 2005.

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