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

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

Marginal note:Adaptation — rebate for pension entities

58.62 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 October 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 Prince Edward Island:

C

is the rate determined by the formula

9% + (1% × C₁/C₂)

where

C₁

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

C₂

is the number of days in the claim period, and

PART 3.6Prince Edward Island — 2023 Rebate Rate Change for Charities and Qualifying Non-Profit Organizations

Marginal note:Definitions

• 58.63 (1) The following definitions apply in this section.

  initial supply

  initial supply of property by a person means

  • (a) if any supply by way of sale of the property was made by the person after February 24, 2022 but before 2023, the last supply by way of sale of the property made by the person before 2023; and

  • (b) in any other case, the first supply by way of sale of the property made by the person after 2022. (fourniture initiale)

  rebate entitlement

  rebate entitlement means the amount of a rebate that a person is entitled to claim under section 259 of the Act in respect of an acquisition of property or that the person would have been so entitled to claim if the property had been acquired for use exclusively in activities that are not commercial activities. (remboursement admissible)

  specified portion of the basic tax content

  specified portion of the basic tax content, at any time, of property of a person means the amount that would be the basic tax content of the property at that time if only amounts of tax under subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act were included in determining that basic tax content. (fraction déterminée de teneur en taxe)

  specified tax

  specified tax means an amount of tax payable under subsection 165(2), section 212.1 or 218.1 or Division IV.1 of Part IX of the Act. (taxe déterminée)

• Marginal note:Limitation — Prince Edward Island

  (2) For the purposes of determining the rebate entitlement of a person for a claim period, as defined in subsection 259(1) of the Act, of the person that ends after 2022 in respect of all amounts of specified tax that are payable in respect of an acquisition of property by the person after the person last made a supply of the property by way of sale and that are included in the provincial qualifying amount, as defined in section 2 of the Public Service Body Rebate (GST/HST) Regulations, in respect of the property for the claim period of the person, or would have been so included if the property had been acquired for use exclusively in activities that are not commercial activities, that rebate entitlement (in this section referred to as the “specified rebate entitlement”) is to be adjusted, as applicable, in accordance with the rules set out in subsection (3) if

  • (a) the property is property of the person at any time before 2023;

  • (b) the person makes a particular taxable supply by way of sale of the property after February 24, 2022;

  • (c) the person is the recipient of another taxable supply of the property (in this section referred to as the “reacquisition”) after the time at which the particular taxable supply was made and an amount of specified tax in respect of the reacquisition becomes payable, or is paid without having become payable, on a particular day that is after 2022;

  • (d) on the last day of the claim period of the person that includes the particular day, or on the last day of the person’s fiscal year that includes that claim period, the person is a charity, as defined in subsection 259(1) of the Act, or a qualifying non-profit organization within the meaning of subsection 259(2) of the Act; and

  • (e) the particular taxable supply and the reacquisition of the property are part of a transaction or series of transactions that may not reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to, directly or indirectly, benefit in any manner from a change made to the specified provincial percentage, as defined in subsection 259(1) of the Act, applicable to the person in relation to Prince Edward Island as a result of the Regulations Amending Various GST/HST Regulations, No. 12 being made.

• Marginal note:Amount of reduction

  (3) For the purposes of subsection (2), the adjustment rules are the following:

  • (a) if the reacquisition is a supply by way of sale, the specified rebate entitlement is reduced by the amount determined by the formula

    A − B

    where

    A

    is the specified portion of the basic tax content of the property at the time at which the initial supply of the property was made, and

    B

    is the amount that would be, if no improvements had been made by the person to the property since the last acquisition of the property by the person and in the absence of this paragraph, the specified portion of the basic tax content of the property at the end of the claim period; and

  • (b) if the reacquisition is a supply made otherwise than by way of sale,

    • (i) if the total (in this paragraph referred to as the “total tax”) of all amounts — each of which is an amount of specified tax in respect of an acquisition of the property by the person after the person last made a supply of the property by way of sale that becomes payable, or is paid without having become payable, during the claim period — is less than the specified portion of the basic tax content of the property at the time at which the initial supply of the property was made, the specified rebate entitlement is nil, or

    • (ii) if subparagraph (i) does not apply and the total tax minus the amount that would be the specified rebate entitlement in the absence of this subparagraph is less than the specified portion of the basic tax content of the property at the time at which the initial supply of the property was made, the specified rebate entitlement is the amount determined by the formula

      A − B

      where

      A

      is the total tax, and

      B

      is the specified portion of the basic tax content of the property at the time at which the initial supply of the property was made.

PART 3.7New Brunswick — 2024 Rebate Change for Hospital Authorities, School Authorities and Public Colleges

Marginal note:Definitions

• 58.64 (1) The following definitions apply in this section.

  initial supply

  initial supply of property by a person means

  • (a) if any supply by way of sale of the property was made by the person after December 1, 2023 but before April 2024, the last supply by way of sale of the property made by the person before April 2024; and

  • (b) in any other case, the first supply by way of sale of the property made by the person after March 2024. (fourniture initiale)

  rebate entitlement

  rebate entitlement means the amount of a rebate that a person is entitled to claim under section 259 of the Act in respect of an acquisition of property or that the person would have been so entitled to claim if the property had been acquired for use exclusively in activities that are not commercial activities. (remboursement admissible)

  specified portion of the basic tax content

  specified portion of the basic tax content, at any time, of property of a person means the amount that would be the basic tax content of the property at that time if only amounts of tax under subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act were included in determining that basic tax content.  (fraction déterminée de teneur en taxe)

  specified tax

  specified tax means an amount of tax payable under subsection 165(2), section 212.1 or 218.1 or Division IV.1 of Part IX of the Act. (taxe déterminée)

• Marginal note:Limitation — New Brunswick

  (2) For the purposes of determining the rebate entitlement of a person for a claim period, as defined in subsection 259(1) of the Act, of the person that ends after March 2024 in respect of all amounts of specified tax that are payable in respect of an acquisition of property by the person after the person last made a supply of the property by way of sale and that are included in the provincial qualifying amount, as defined in section 2 of the Public Service Body Rebate (GST/HST) Regulations, in respect of the property for the claim period of the person, or would have been so included if the property had been acquired for use exclusively in activities that are not commercial activities, that rebate entitlement (in this section referred to as the “specified rebate entitlement”) is to be adjusted, as applicable, in accordance with the rules set out in subsection (3) if

  • (a) the property is property of the person at any time before April 2024;

  • (b) the person makes a particular taxable supply by way of sale of the property after December 1, 2023;

  • (c) the person is the recipient of another taxable supply of the property (in this section referred to as the “reacquisition”) after the time at which the particular taxable supply was made and an amount of specified tax in respect of the reacquisition becomes payable, or is paid without having become payable, on a particular day that is after March 2024;

  • (d) on the last day of the claim period of the person that includes the particular day, or on the last day of the person’s fiscal year that includes that claim period, the person is a hospital authority, school authority or public college; and

  • (e) the particular taxable supply and the reacquisition of the property are part of a transaction or series of transactions that may not reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to, directly or indirectly, benefit in any manner from a change made to the specified provincial percentage, as defined in subsection 259(1) of the Act, applicable to the person in relation to New Brunswick as a result of the Regulations Amending Various GST/HST Regulations, No. 13 being made.

• Marginal note:Amount of reduction

  (3) For the purposes of subsection (2), the adjustment rules are the following:

  • (a) if the reacquisition is a supply by way of sale, the specified rebate entitlement is reduced by the amount determined by the formula

    A − B

    where

    A

    is the specified portion of the basic tax content of the property at the time at which the initial supply of the property was made, and

    B

    is the amount that would be, if no improvements had been made by the person to the property since the last acquisition of the property by the person and in the absence of this paragraph, the specified portion of the basic tax content of the property at the end of the claim period; and

  • (b) if the reacquisition is a supply made otherwise than by way of sale,

    • (i) if the total (in this paragraph referred to as the “total tax”) of all amounts — each of which is an amount of specified tax in respect of an acquisition of the property by the person after the person last made a supply of the property by way of sale that becomes payable, or is paid without having become payable, during the claim period — is less than the specified portion of the basic tax content of the property at the time at which the initial supply of the property was made, the specified rebate entitlement is nil, or

    • (ii) if subparagraph (i) does not apply and the total tax minus the amount that would be the specified rebate entitlement in the absence of this subparagraph is less than the specified portion of the basic tax content of the property at the time at which the initial supply of the property was made, the specified rebate entitlement is the amount determined by the formula

      A − B

      where

      A

      is the total tax, and

      B

      is the specified portion of the basic tax content of the property at the time at which the initial supply of the property was made.