Budget Implementation Act, 2017, No. 1 (S.C. 2017, c. 20)

PART 2R.S., c. E-15Amendments to the Excise Tax Act (GST/HST Measures)

• 35 (1) The definition taxi business in subsection 123(1) of the Excise Tax Act is replaced by the following:

  taxi business

  taxi business means

  • (a) a business carried on in Canada of transporting passengers by taxi or other similar vehicle for fares that are regulated under the laws of Canada or a province, or

  • (b) a business carried on in Canada by a person of transporting passengers for fares by motor vehicle — being a vehicle that would be an automobile, as defined in subsection 248(1) of the Income Tax Act, if that definition were read without reference to “a motor vehicle acquired primarily for use as a taxi,” in its paragraph (c) and without reference to its paragraph (e) — within a particular municipality and its environs if the transportation is arranged or coordinated through an electronic platform or system, other than

    • (i) the part of the business that does not involve the making of taxable supplies by the person,

    • (ii) the part of the business that is the operation of a sightseeing service or the school transportation of elementary or secondary students, or

    • (iii) a prescribed business or a prescribed activity of a business; (entreprise de taxis)

• (2) The portion of the definition short-term accommodation in subsection 123(1) of the Act before paragraph (a) is replaced by the following:

  short-term accommodation

  short-term accommodation means a residential complex or a residential unit that is supplied to a recipient by way of lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence or lodging, if the period throughout which the individual is given continuous occupancy of the complex or unit is less than one month and, for the purposes of section 252.4,

• (3) Subsection (1) comes into force or is deemed to have come into force on July 1, 2017.

• (4) Subsection (2) comes into force on January 1, 2018 but does not apply in respect of any rebate under section 252.1 of the Act in respect of a supply made before that day.

• 36 (1) The portion of subsection 234(2) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Deduction for rebate in respect of supplies to non-residents

    (2) If, in the circumstances described in subsection 252(3) or 252.4(2) or (4), a registrant pays to, or credits in favour of, a person an amount on account of a rebate referred to therein, the registrant may deduct the amount in determining the net tax of the registrant for

• (2) The portion of subsection 234(2.1) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Late filing of information and adjustment for failure to file

    (2.1) If a registrant is required to file prescribed information in accordance with subsection 252.4(5) in respect of an amount claimed as a deduction under subsection (2) in respect of an amount paid or credited on account of a rebate,

• (3) The portion of paragraph 234(2.1)(a) of the English version of the Act after subparagraph (ii) is replaced by the following:

  the registrant shall, in determining the net tax for the reporting period of the registrant that includes the filing day, add an amount equal to interest, at the prescribed rate, on the amount claimed as a deduction under subsection (2) computed for the period beginning on the day on or before which the registrant was required to file the prescribed information under subsection 252.4(5) and ending on the filing day; and

• (4) Paragraph 234(2.1)(b) of the English version of the Act is replaced by the following:

  • (b) in the case where the registrant fails to file the information before the particular day, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the particular day, add an amount equal to the total of the amount claimed as a deduction under subsection (2) and interest, at the prescribed rate, on that amount computed for the period beginning on the day on or before which the registrant was required to file the information under subsection 252.4(5) and ending on the day on or before which the registrant is required under section 238 to file a return for the reporting period of the registrant that includes the particular day.

• (5) Subsections (1) to (4) come into force on January 1, 2018 but do not apply in respect of any amount paid or credited on account of a rebate under section 252.1 of the Act in respect of a supply made before that day.

• 37 (1) Section 252.1 of the Act is repealed.

• (2) Subsection (1) is deemed to have come into force on March 23, 2017 but does not apply in respect of any supply made on or before March 22, 2017 or in respect of any supply made after March 22, 2017 but before 2018 if all of the consideration for that supply is paid before 2018.

• 38 (1) The portion of section 252.2 of the Act before paragraph (a) is replaced by the following:

  Marginal note:Restriction

  252.2 A rebate shall not be paid under section 252 to a person unless

• (2) Paragraph 252.2(a) of the Act is amended by adding “and” at the end of subparagraph (i), by striking out “and” at the end of subparagraph (ii) and by repealing subparagraph (iii).

• (3) Section 252.2 of the Act is amended by adding “and” at the end of paragraph (d.1), by striking out “and” at the end of paragraph (e) and by repealing paragraph (g).

• (4) Subsections (1) to (3) come into force on January 1, 2018 but do not apply in respect of any rebate under section 252.1 of the Act in respect of a supply made before that day.

• 39 (1) Section 252.4 of the Act is amended by adding the following before subsection (1):

  Marginal note:Definitions

  • 252.4 (0.1) The following definitions apply in this section.

    camping accommodation

    camping accommodation means a campsite at a recreational trailer park or campground (other than a campsite included in the definition short-term accommodation in subsection 123(1) or included in that part of a tour package that is not the taxable portion, as defined in subsection 163(3), of the tour package) that is supplied by way of lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence or lodging, if the period throughout which the individual is given continuous occupancy of the campsite is less than one month. It includes water, electricity and waste disposal services, or the right to their use, if they are accessed by means of an outlet or hook-up at the campsite and are supplied with the campsite. (emplacement de camping)

    tour package

    tour package has the same meaning as in subsection 163(3), but does not include a tour package that includes a convention facility or related convention supplies. (voyage organisé)

• (2) Subsection (1) is deemed to have come into force on March 23, 2017.

• 40 (1) The portion of section 252.5 of the Act before paragraph (a) is replaced by the following:

  Marginal note:Liability for amount paid or credited

  252.5 If, under section 252 or 252.4, a registrant at a particular time pays to, or credits in favour of, a person an amount on account of a rebate and

• (2) Subsection (1) comes into force on January 1, 2018 but does not apply in respect of any rebate under section 252.1 of the Act in respect of a supply made before that day.

• 41 (1) Paragraph 2(e) of Part I of Schedule VI to the Act is amended by striking out “and” at the end of subparagraph (ix), by adding “and” at the end of subparagraph (x) and by adding the following after subparagraph (x):

  • (xi) Naloxone and its salts,

• (2) Subsection (1) is deemed to have come into force on March 22, 2016 except that it does not apply

  • (a) to any supply made after March 21, 2016 but on or before March 22, 2017 if, on or before March 22, 2017, the supplier charged, collected or remitted any amount as or on account of tax under Part IX of the Act in respect of the supply;

  • (b) for the purposes of section 6 of Schedule VII to the Act, to goods imported after March 21, 2016 but on or before March 22, 2017 if, on or before March 22, 2017, any amount was paid as or on account of tax under Part IX of the Act in respect of the importation; or

  • (c) for the purposes of section 15 of Part I of Schedule X to the Act, to property brought into a participating province after March 21, 2016 but on or before March 22, 2017 if, on or before March 22, 2017, any amount was paid as or on account of tax under Part IX of the Act in respect of the bringing into the province.

PART 3Amendments to the Excise Act, the Excise Act, 2001 and the Economic Action Plan 2014 Act, No. 1

R.S., c. E-14Excise Act

• 42 (1) The Excise Act is amended by adding the following after section 170.1:

  Marginal note:Definition of inflationary adjusted year

  • 170.2 (1) In this section, inflationary adjusted year means 2018 and every year after that year.

  • Marginal note:Annual adjustments

    (2) Each rate of duty set out in Part II of the schedule applicable in respect of a hectolitre of beer or malt liquor is to be adjusted on April 1 of an inflationary adjusted year so that the rate is equal to the greater of

    • (a) the rate determined by the formula

      A × B

      where

      A

      is the rate of duty applicable to the hectolitre on March 31 of the inflationary adjusted year, and

      B

      is the amount, rounded to the nearest one-thousandth, or, if the amount is equidistant from two consecutive one-thousandths, rounded to the higher one-thousandth, determined by the formula

      C/D

      where

      C

      is the Consumer Price Index for the 12-month period ending on September 30 of the particular year preceding the inflationary adjusted year, and

      D

      is the Consumer Price Index for the 12-month period ending on September 30 of the year preceding the particular year, and

    • (b) the rate of duty referred to in the description of A in paragraph (a).

  • Marginal note:Rounding

    (3) The adjusted rate determined under subsection (2) is to be rounded

    • (a) in the case of the rates set out in sections 1 and 2 of Part II of the schedule, to the nearest one-hundredth or, if the adjusted rate is equidistant from two consecutive one-hundredths, to the higher one-hundredth; and

    • (b) in the case of the rate set out in section 3 of Part II of the schedule, to the nearest one-thousandth or, if the adjusted rate is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

  • Marginal note:Consumer Price Index

    (4) In this section, the Consumer Price Index for any 12-month period is the result arrived at by

    • (a) aggregating the Consumer Price Index for Canada, as published by Statistics Canada under the authority of the Statistics Act, for each month in that period;

    • (b) dividing the aggregate obtained under paragraph (a) by 12; and

    • (c) rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two consecutive one-thousandths, to the higher one-thousandth.

• (2) Subsection (1) is deemed to have come into force on March 23, 2017.

• 43 (1) The schedule to the Act is amended by replacing the references after the heading “SCHEDULE” with the following:

  (Sections 135, 170, 170.1, 170.2, 185 and 200)

• (2) Subsection (1) is deemed to have come into force on March 23, 2017.

• 44 (1) Parts II and II.1 of the schedule to the Act are replaced by the following:

  II. Beer

  • 1 Per hectolitre of beer or malt liquor containing more than 2.5% absolute ethyl alcohol by volume,

    • (a) $31.84; or

    • (b) if the rate referred to in paragraph (a) has been adjusted under subsection 170.2(2), the adjusted rate.

  • 2 Per hectolitre of beer or malt liquor containing more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume,

    • (a) $15.92; or

    • (b) if the rate referred to in paragraph (a) has been adjusted under subsection 170.2(2), the adjusted rate.

  • 3 Per hectolitre of beer or malt liquor containing not more than 1.2% absolute ethyl alcohol by volume,

    • (a) $2.643; or

    • (b) if the rate referred to in paragraph (a) has been adjusted under subsection 170.2(2), the adjusted rate.

  II.1 Canadian Beer

  • 1 Per hectolitre of the first 2 000 hectolitres of beer and malt liquor brewed in Canada,

    • (a) if it contains more than 2.5% absolute ethyl alcohol by volume, 10% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 1 of Part II;

    • (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 10% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 2 of Part II; and

    • (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 10% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 3 of Part II.

  • 2 Per hectolitre of the next 3 000 hectolitres of beer and malt liquor brewed in Canada,

    • (a) if it contains more than 2.5% absolute ethyl alcohol by volume, 20% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 1 of Part II;

    • (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 20% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 2 of Part II; and

    • (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 20% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 3 of Part II.

  • 3 Per hectolitre of the next 10 000 hectolitres of beer and malt liquor brewed in Canada,

    • (a) if it contains more than 2.5% absolute ethyl alcohol by volume, 40% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 1 of Part II;

    • (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 40% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 2 of Part II; and

    • (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 40% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 3 of Part II.

  • 4 Per hectolitre of the next 35 000 hectolitres of beer and malt liquor brewed in Canada,

    • (a) if it contains more than 2.5% absolute ethyl alcohol by volume, 70% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 1 of Part II;

    • (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 70% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 2 of Part II; and

    • (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 70% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 3 of Part II.

  • 5 Per hectolitre of the next 25 000 hectolitres of beer and malt liquor brewed in Canada,

    • (a) if it contains more than 2.5% absolute ethyl alcohol by volume, 85% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 1 of Part II;

    • (b) if it contains more than 1.2% absolute ethyl alcohol by volume but not more than 2.5% absolute ethyl alcohol by volume, 85% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 2 of Part II; and

    • (c) if it contains not more than 1.2% absolute ethyl alcohol by volume, 85% of the rate of duty applicable to a hectolitre of beer or malt liquor under section 3 of Part II.

  • 6 The rates determined under section 5 are to be rounded

    • (a) in the case of a rate determined under paragraph 5(a) or (b), to the nearest one-thousandth or, if the rate is equidistant from two consecutive one-thousandths, to the higher one-thousandth; and

    • (b) in the case of a rate determined under paragraph 5(c), to the nearest ten-thousandth or, if the rate is equidistant from two consecutive ten-thousandths, to the higher ten-thousandth.

• (2) Subsection (1) is deemed to have come into force on March 23, 2017.