New Harmonized Value-added Tax System Regulations (SOR/2010-117)

Marginal note:Transitional specified year — subsection 218.1(1.2) of Act

58.51 For the purpose of determining the tax payable by a person under subsection 218.1(1.2) of the Act for a specified year (as defined in section 217 of the Act) of the person that includes July 1, 2016 and for New Brunswick, the tax rate for New Brunswick is deemed to be equal to the rate determined by the formula

Marginal note:Adaptation — rebate for pension entities

58.52 For the purposes of determining the provincial pension rebate amount for a claim period (as those terms are defined in subsection 261.01(1) of the Act) of a pension entity that includes July 1, 2016, the description of C in paragraph (a) of the definition provincial pension rebate amount in that subsection is adapted as follows if the participating province referred to in that paragraph is New Brunswick:

C

is the rate determined by the formula

8% + (2% × C₁/C₂)

where

C₁

is the number of days in the claim period that are after June 2016, and

C₂

is the number of days in the claim period, and

PART 3.4Newfoundland and Labrador Transitional Rules — 2016 Rate Change

Marginal note:Additional disclosure — real property

• 58.53 (1) If a builder makes a taxable supply of a residential complex in Newfoundland and Labrador under an agreement of purchase and sale entered into after May 3, 2016 but before July 1, 2016, the builder must indicate in the agreement of purchase and sale

  • (a) the total tax payable in respect of the supply in a manner that clearly indicates the amount of that total and whether or not that amount takes into account any amount to be paid or credited in accordance with subsection 254(4) of the Act; or

  • (b) the total of the rates at which tax is payable in respect of the supply.

• Marginal note:Failure to disclose

  (2) If a builder fails to comply with subsection (1) in respect of a supply and is required under section 221 of the Act to collect tax at a particular time in respect of the supply and if tax under subsection 165(2) of the Act applies in respect of the supply at a rate of 10%, the following rules apply:

  • (a) the tax payable by the recipient in respect of the supply is to be calculated as if the tax under subsection 165(2) of the Act applied in respect of the supply at a rate of 8% and not at a rate of 10%; and

  • (b) despite paragraph (a), the builder is deemed to have collected the tax at the particular time in respect of the supply at a rate of 10%.

Marginal note:Adaptation — paragraph 172.1(5)(c) of Act

• 58.54 (1) If a person is a participating employer of a pension plan that acquires property or a service for the purpose of making a supply of all or part of the property or service to a pension entity of the pension plan but not for the purpose of making a supply of any part of the property or service to a pension entity of the pension plan after June 2016, for the purposes of determining the value for B in paragraph 172.1(5)(c) of the Act, the amount for Newfoundland and Labrador in respect of a taxable supply of all or part of the property or service deemed to have been made under paragraph 172.1(5)(a) of the Act is determined by adapting the description of F in paragraph 172.1(5)(c) of the Act to read as follows:

  F

  is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, determined as if the tax rate for Newfoundland and Labrador on the last day of the particular fiscal year were 8%; and

• Marginal note:Adaptation — paragraphs 172.1(6)(c) and (7)(c) of Act

  (2) In respect of a fiscal year of a person that includes July 1, 2016, for the purposes of determining the value for B in paragraph 172.1(6)(c) of the Act and the value for B in paragraph 172.1(7)(c) of the Act, the amount for Newfoundland and Labrador is determined by adapting the description of F in paragraph 172.1(6)(c) of the Act and the description of F in paragraph 172.1(7)(c) of the Act to read as follows:

  F

  is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, determined as if the tax rate for Newfoundland and Labrador on the last day of the particular fiscal year were the rate determined by the formula

  8% + (2% × G/H)

  where

  G

  is the number of days in the particular fiscal year that are after June 2016, and

  H

  is the number of days in the particular fiscal year; and

Marginal note:Adaptation — employee and shareholder benefits

58.55 In respect of the 2016 taxation year, if

• (a) an amount is required to be included under paragraph 6(1)(a) or (e) of the Income Tax Act in computing an individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in Newfoundland and Labrador or the Newfoundland offshore area, or

• (b) an amount is required under subsection 15(1) of the Income Tax Act to be included in computing an individual’s income and the individual is resident in Newfoundland and Labrador at the end of the year

the portion of subclause (I) of the description of A in clause 173(1)(d)(vi)(B) of the Act after sub-subclause 2 is adapted as follows:

13%, and

Marginal note:Transitional specified year — subsection 218.1(1.2) of Act

58.56 For the purpose of determining the tax payable by a person under subsection 218.1(1.2) of the Act for a specified year (as defined in section 217 of the Act) of the person that includes July 1, 2016 and for Newfoundland and Labrador or the Newfoundland offshore area, the tax rate for those participating provinces is deemed to be equal to the rate determined by the formula

Marginal note:Adaptation — rebate for pension entities

58.57 For the purposes of determining the provincial pension rebate amount for a claim period (as those terms are defined in subsection 261.01(1) of the Act) of a pension entity that includes July 1, 2016, the description of C in paragraph (a) of the definition provincial pension rebate amount in that subsection is adapted as follows if the participating province referred to in that paragraph is Newfoundland and Labrador:

C

is the rate determined by the formula

8% + (2% × C₁/C₂)

where

C₁

is the number of days in the claim period that are after June 2016, and

C₂

is the number of days in the claim period, and

PART 3.5Prince Edward Island Transitional Rules — 2016 Rate Change

Marginal note:Additional disclosure — real property

• 58.58 (1) If a builder makes a taxable supply of a residential complex in Prince Edward Island under an agreement of purchase and sale entered into after June 16, 2016 but before October 1, 2016, the builder must indicate in the agreement of purchase and sale

  • (a) the total tax payable in respect of the supply in a manner that clearly indicates the amount of that total and whether or not that amount takes into account any amount to be paid or credited in accordance with subsection 254(4) of the Act; or

  • (b) the total of the rates at which tax is payable in respect of the supply.

• Marginal note:Failure to disclose

  (2) If a builder fails to comply with subsection (1) in respect of a supply and is required under section 221 of the Act to collect tax at a particular time in respect of the supply and if tax under subsection 165(2) of the Act applies in respect of the supply at a rate of 10%, the following rules apply:

  • (a) the tax payable by the recipient in respect of the supply is to be calculated as if the tax under subsection 165(2) of the Act applied in respect of the supply at a rate of 9% and not at a rate of 10%; and

  • (b) despite paragraph (a), the builder is deemed to have collected the tax at the particular time in respect of the supply at a rate of 10%.

Marginal note:Adaptation — paragraph 172.1(5)(c) of Act

• 58.59 (1) If a person is a participating employer of a pension plan that acquires property or a service for the purpose of making a supply of all or part of the property or service to a pension entity of the pension plan but not for the purpose of making a supply of any part of the property or service to a pension entity of the pension plan after September 2016, for the purposes of determining the value for B in paragraph 172.1(5)(c) of the Act, the amount for Prince Edward Island in respect of a taxable supply of all or part of the property or service deemed to have been made under paragraph 172.1(5)(a) of the Act is determined by adapting the description of F in paragraph 172.1(5)(c) of the Act to read as follows:

  F

  is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, determined as if the tax rate for Prince Edward Island on the last day of the particular fiscal year were 9%; and

• Marginal note:Adaptation — paragraph 172.1(5.1)(c) of Act

  (1.1) If a person acquires at any time property or a service for the purpose of making a supply of all or part of the property or service to a master pension entity for consumption, use or supply by the master pension entity in the course of pension activities in respect of any pension plan that is in the master pension group in respect of the person and the master pension entity at that time and if the acquisition is not for the purpose of making a supply after September 2016 of any part of the property or service to a master pension entity for consumption, use or supply by the master pension entity in the course of pension activities in respect of any pension plan that is in the master pension group in respect of the person and the master pension entity at that time, then, for the purposes of determining the value for B in paragraph 172.1(5.1)(c) of the Act, the amount for Prince Edward Island in respect of a taxable supply of all or part of the property or service deemed to have been made under paragraph 172.1(5.1)(a) of the Act is determined by adapting the description of G in paragraph 172.1(5.1)(c) of the Act to read as follows:

  G

  is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, determined as if the tax rate for Prince Edward Island on the last day of the particular fiscal year were 9%, and

• Marginal note:Adaptation — paragraphs 172.1(6)(c) and (7)(c) of Act

  (2) In respect of a fiscal year of a person that includes October 1, 2016, for the purposes of determining the value for B in paragraph 172.1(6)(c) of the Act and the value for B in paragraph 172.1(7)(c) of the Act, the amount for Prince Edward Island is determined by adapting the description of F in paragraph 172.1(6)(c) of the Act and the description of F in paragraph 172.1(7)(c) of the Act to read as follows:

  F

  is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, determined as if the tax rate for Prince Edward Island on the last day of the particular fiscal year were the rate determined by the formula

  9% + (1% × G/H)

  where

  G

  is the number of days in the particular fiscal year that are after September 2016, and

  H

  is the number of days in the particular fiscal year; and

• Marginal note:Adaptation — paragraph 172.1(6.1)(c) of Act

  (3) In respect of a fiscal year of a person that includes October 1, 2016, for the purposes of determining the value for B in paragraph 172.1(6.1)(c) of the Act, the amount for Prince Edward Island is determined by adapting the description of G in paragraph 172.1(6.1)(c) of the Act to read as follows:

  G

  is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, determined as if the tax rate for Prince Edward Island on the last day of the particular fiscal year were the rate determined by the formula

  9% + (1% × I/J)

  where

  I

  is the number of days in the particular fiscal year that are after September 2016, and

  J

  is the number of days in the particular fiscal year; and

• Marginal note:Adaptation — paragraph 172.1(7.1)(c) of Act

  (4) In respect of a fiscal year of a person that includes October 1, 2016, for the purposes of determining the value for B in paragraph 172.1(7.1)(c) of the Act, the amount for Prince Edward Island is determined by adapting the description of G in paragraph 172.1(7.1)(c) of the Act to read as follows:

  G

  is the provincial factor in respect of the particular pension plan and the participating province for the particular fiscal year, determined as if the tax rate for Prince Edward Island on the last day of the particular fiscal year were the rate determined by the formula

  9% + (1% × I/J)

  where

  I

  is the number of days in the particular fiscal year that are after September 2016, and

  J

  is the number of days in the particular fiscal year; and

Marginal note:Adaptation — employee and shareholder benefits

58.60 In respect of the 2016 taxation year, if

• (a) an amount is required to be included under paragraph 6(1)(a) or (e) of the Income Tax Act in computing an individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in Prince Edward Island, or

• (b) an amount is required under subsection 15(1) of the Income Tax Act to be included in computing an individual’s income and the individual is resident in Prince Edward Island at the end of the year

the portion of subclause (I) of the description of A in clause 173(1)(d)(vi)(B) of the Act after sub-subclause 2 is adapted as follows except in respect of section 37 of the New Harmonized Value-added Tax System Regulations, No. 2:

13.25%, and

Marginal note:Transitional specified year — subsection 218.1(1.2) of Act

58.61 For the purpose of determining the tax payable by a person under subsection 218.1(1.2) of the Act for a specified year (as defined in section 217 of the Act) of the person that includes October 1, 2016 and for Prince Edward Island, the tax rate for Prince Edward Island is deemed to be equal to the rate determined by the formula