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

Marginal note:Definitions

• 191.1 (1) The definitions in this subsection apply in this section.

  government funding

  government funding, in respect of a residential complex, means an amount of money (including a forgivable loan but not including any other loan or a refund or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) paid or payable by

  • (a) a grantor, or

  • (b) an organization that received the amount from a grantor or another organization that received the amount from a grantor,

  to a builder of the complex or of an addition thereto for the purpose of making residential units in the complex available to individuals referred to in paragraph (2)(b). (subvention)

  grantor

  grantor means

  • (a) a government or municipality, other than a corporation all or substantially all of whose activities are commercial activities or the supply of financial services or any combination thereof;

  • (b) a band (within the meaning assigned by section 2 of the Indian Act);

  • (c) a corporation that is controlled by a government, a municipality or a band referred to in paragraph (b) and one of the main purposes of which is to fund charitable or non-profit endeavours; and

  • (d) a trust, board, commission or other body that is established by a government, municipality, band referred to in paragraph (b) or corporation described in paragraph (c) and one of the main purposes of which is to fund charitable or non-profit endeavours. (subventionneur)

• Marginal note:Subsidized residential complexes

  (2) For the purposes of subsections 191(1) to (4), where

  • (a) a builder of a residential complex or an addition thereto is deemed under any of subsections 191(1) to (4) to have, at any time, made and received a supply of the complex or addition,

  • (b) possession or use of at least 10% of the residential units in the complex is intended to be given for the purpose of their occupancy as a place of residence or lodging by

    • (i) seniors,

    • (ii) youths,

    • (iii) students,

    • (iv) individuals with a disability,

    • (v) individuals in distress or individuals in need of assistance,

    • (vi) individuals whose eligibility for occupancy of the units as a place of residence or lodging, or for reduced payments in respect of their occupancy as a place of residence or lodging, is dependent on a means or income test,

    • (vii) individuals for whose benefit no other persons (other than public sector bodies) pay consideration for supplies that include giving possession or use of the units for occupancy by the individuals as a place of residence or lodging and who either pay no consideration for the supplies or pay consideration that is significantly less than the consideration that could reasonably be expected to be paid for comparable supplies made by a person in the business of making such supplies for the purpose of earning a profit, or

    • (viii) any combination of individuals described in any of subparagraphs (i) to (vii), and

  • (c) except where the builder is a government or a municipality, the builder, at or before that time, has received or can reasonably expect to receive government funding in respect of the complex,

  the amount of tax in respect of the supply calculated on the fair market value of the complex or addition, as the case may be, is deemed to be equal to the greater of

  • (d) the amount that would, but for this subsection, be the tax calculated on that fair market value, and

  • (e) the amount determined by the formula

    A + B + C + D

    where

    A

    is the total of all amounts each of which is an amount determined by the formula

    E × (F/G)

    where

    E

    is an amount of tax, calculated at a particular rate, that was payable under subsection 165(1) or section 212, 218 or 218.01 by the builder in respect of an acquisition of real property that forms part of the complex or addition or in respect of an acquisition or importation of an improvement to real property that forms part of the complex or addition,

    F

    is the rate set out in subsection 165(1) at the time referred to in paragraph (a), and

    G

    is the particular rate,

    B

    is the total of all amounts each of which is an amount determined by the formula

    H × (I/J)

    where

    H

    is an amount (other than an amount referred to in the description of E) that would have been payable as tax, calculated at a particular rate, under subsection 165(1) or section 212, 218 or 218.01 by the builder in respect of an acquisition or importation of an improvement to real property that forms part of the complex or addition but for the fact that the improvement was acquired or imported for consumption, use or supply exclusively in the course of commercial activities of the builder,

    I

    is the rate set out in subsection 165(1) at the time referred to in paragraph (a), and

    J

    is the particular rate,

    C

    is

    • (i) if the complex or addition is situated in a participating province, the total of all amounts each of which is an amount determined by the formula

      K × (L/M)

      where

      K

      is an amount of tax, calculated at a particular rate, that was payable under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 by the builder in respect of an acquisition of real property that forms part of the complex or addition or in respect of an acquisition, importation or bringing into the participating province of an improvement to real property that forms part of the complex or addition,

      L

      is the tax rate for the participating province at the time referred to in paragraph (a), and

      M

      is the particular rate, and

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

    D

    is

    • (i) if the complex or addition is situated in a participating province, the total of all amounts each of which is an amount determined by the formula

      N × (O/P)

      where

      N

      is an amount (other than an amount referred to in the description of K) that would have been payable as tax, calculated at a particular rate, under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 by the builder in respect of an acquisition, importation or bringing into the participating province of an improvement to real property that forms part of the complex or addition but for the fact that the improvement was acquired, imported or brought into the participating province for consumption, use or supply exclusively in the course of commercial activities of the builder,

      O

      is the tax rate for the participating province at the time referred to in paragraph (a), and

      P

      is the particular rate, and

    • (ii) in any other case, zero.