New Harmonized Value-added Tax System Regulations, No. 2 (SOR/2010-151)

Regulations are current to 2019-08-28 and last amended on 2019-03-04. Previous Versions

PART 6Recapture of Specified Provincial Input Tax Credits (continued)

DIVISION 9Certain Benefits and Rebates

Marginal note:Qualifying motor vehicles

 If a registrant makes a supply of a qualifying motor vehicle to an individual or a person related to the individual at any time during a taxation year of the individual to which subsection 173(1) of the Act applies and, as a consequence of subsection 31(2), the registrant added an amount to its net tax for a reporting period of the registrant ending on or before that time in respect of a specified provincial input tax credit of the registrant in respect of the qualifying motor vehicle, for the purpose of determining an amount of tax under subparagraph 173(1)(d)(vi) of the Act in respect of an amount that is deemed to be the total consideration payable in respect of the provision of the qualifying motor vehicle during the taxation year, the reference in the portion of subclause (I) of the description of A in clause 173(1)(d)(vi)(B) of the Act after sub-subclause 2 to “the tax rate for the participating province” is to be read as a reference to “the percentage determined by the formula

D × (E - F)

where

D
is the tax rate for the participating province,
E
is 100%, and
F
is the recapture rate (as defined in section 26 of the New Harmonized Valued-added Tax System Regulations, No. 2) applicable on the last day of the last reporting period of the registrant, in or before the taxation year of the individual, in respect of which an amount was added by the registrant under subsection 236.01(2) in determining its net tax in respect of the automobile”.

Marginal note:Restriction on rebate to partner

 For the purposes of the new harmonized value-added tax system, subsection 253(2) of the Act is adapted so that the reference to “the amount that would be an input tax credit of the partnership in respect of the property or service for the last reporting period of the partnership in its last fiscal year ending in that calendar year if” in that subsection before paragraph (a) is to be read as “the amount that would be an input tax credit of the partnership in respect of the property or service for the last reporting period of the partnership in its last fiscal year ending in that calendar year, other than the part of that amount that would have been required to be added to the net tax of the partnership in accordance with subsection 236.01(2), if”.

PART 7Rebate for Employees and Partners

Marginal note:Percentage — subsection 253(1)

  •  (1) For the purpose of the description of F in paragraph (b) of the description of A in subsection 253(1) of the Act, the percentage is the rate at which the tax referred to in paragraph 253(1)(b) of the Act was payable.

  • Marginal note:Percentage — subsection 253(1)

    (2) For the purpose of the description of H in paragraph (c) of the description of A in subsection 253(1) of the Act, the percentage is the rate at which the tax under subsection 165(2) or section 212.1 or 218.1 of the Act or Division IV.1 of Part IX of the Act referred to in paragraph 253(1)(b) of the Act was payable.

  • Marginal note:Percentage — subsection 253(2)

    (3) For the purpose of the description of E in clause (B) of the description of A in subparagraph 253(2)(a)(ii) of the Act, the percentage is the rate at which the tax referred to in paragraph 253(1)(b) of the Act was payable by the individual in respect of the acquisition or importation of the instrument, or the bringing into a participating province of the instrument, as the case may be.

  • Marginal note:Percentage — subsection 253(2)

    (4) For the purpose of the description of G in clause (C) of the description of A in subparagraph 253(2)(a)(ii) of the Act, the percentage is the rate at which the tax under subsection 165(2) or section 212.1 or 218.1 of the Act or Division IV.1 of Part IX of the Act referred to in paragraph 253(1)(b) of the Act was payable by the individual in respect of the acquisition or importation of the instrument, or the bringing into a participating province of the instrument, as the case may be.

  • Marginal note:Percentage — subsection 253(2)

    (5) For the purpose of the description of E in clause (B) of the description of A in subparagraph 253(2)(c)(ii) of the Act, the percentage is the rate at which the tax referred to in paragraph 253(1)(b) of the Act was payable by the individual in respect of the acquisition or importation of the property or service, or the bringing into a participating province of the property, as the case may be.

  • Marginal note:Percentage — subsection 253(2)

    (6) For the purpose of the description of G in clause (C) of the description of A in subparagraph 253(2)(c)(ii) of the Act, the percentage is the rate at which the tax under subsection 165(2) or section 212.1 or 218.1 of the Act or Division IV.1 of Part IX of the Act referred to in paragraph 253(1)(b) of the Act was payable by the individual in respect of the acquisition or importation of the property or service, or the bringing into a participating province of the property, as the case may be.

PART 8New Housing Rebates

DIVISION 1Interpretation

Marginal note:Group of individuals

 If a supply of a residential complex or a share of the capital stock of a cooperative housing corporation is made to two or more individuals, or two or more individuals construct or substantially renovate, or engage another person to construct or substantially renovate, a residential complex, the references in sections 41, 43, 45 and 46 and the references in section 256.21 of the Act to an individual are to be read as references to all of those individuals as a group, but only one of those individuals may apply for a rebate under subsection 256.21(1) of the Act in respect of the complex or share, the amount of which is determined under section 41, 43, 45 or 46.

DIVISION 2New Housing Rebates for Building and Land

Marginal note:Definitions

  •  (1) In this section, relation and single unit residential complex have the same meanings as in subsection 254(1) of the Act.

  • Marginal note:Rebate in Ontario

    (2) If an individual is entitled to claim a rebate under subsection 254(2) of the Act in respect of a residential complex that is a single unit residential complex, or a residential condominium unit, acquired for use in Ontario as the primary place of residence of the individual or of a relation of the individual, or the individual would be so entitled if the total consideration (within the meaning of paragraph 254(2)(c) of the Act) in respect of the complex were less than $450,000, for the purposes of subsection 256.21(1) of the Act, the individual is a prescribed person and the amount of a rebate in respect of the complex under that subsection is equal to the lesser of $24,000 and the amount determined by the formula

    A × B

    where

    A
    is 75%; and
    B
    is the total of all tax under subsection 165(2) of the Act paid in respect of the supply of the complex to the individual or in respect of any other supply to the individual of an interest in the complex.
  • (3) [Repealed, SOR/2012-191, s. 34]

  • Marginal note:Application for rebate

    (4) For the purposes of subsection 256.21(2) of the Act, an application for a rebate, the amount of which is determined under subsection (2), must be filed within two years after the day on which ownership of the complex is transferred to the individual.

  • Marginal note:Restriction

    (5) The Minister shall pay a rebate in respect of a complex to an individual under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), only if the individual does not make an application for a rebate in respect of the complex under subsection 256(2) of the Act.

  • Marginal note:Application to builder

    (6) For the purposes of the application of subsection 256.21(3) of the Act in respect of a rebate in relation to a residential complex that is a single unit residential complex or a residential condominium unit,

    • (a) the builder of the complex is a prescribed person;

    • (b) an individual who is a prescribed person under subsection (2) in respect of the complex is an individual of a prescribed class; and

    • (c) the following circumstances are prescribed circumstances:

      • (i) the builder makes a taxable supply of the complex by way of sale to an individual described in paragraph (b) and transfers ownership of the complex to the individual under the agreement for the supply,

      • (ii) the builder agrees to pay to, or to credit to or in favour of, the individual any rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), that is payable to the individual in respect of the complex,

      • (iii) tax under Division II of Part IX of the Act has been paid, or is payable, by the individual in respect of the supply,

      • (iv) the individual, within two years after the day on which ownership of the complex is transferred to the individual under the agreement for the supply, submits an application, in accordance with subsection 256.21(3) of the Act, for the rebate, and

      • (v) the tax payable in respect of the supply has not been paid at the time the individual submits an application to the builder for the rebate and, if the individual had paid the tax and made an application for the rebate, the rebate would have been payable to the individual under subsection 256.21(1) of the Act.

  • SOR/2012-191, s. 34

DIVISION 3New Housing Rebates for Building Only

Marginal note:Amounts and rates for participating provinces

 In applying subsection 254.1(2) of the Act in respect of

  • (a) a residential complex situated in Ontario,

    • (i) the references in that subsection to “$472,500” are to be read as references to “$508,500”,

    • (ii) the references in that subsection to “$367,500” are to be read as references to “$395,500”,

    • (iii) the reference in that subsection to “$105,000” is to be read as a reference to “$113,000”,

    • (iv) the reference in paragraph (h) of that subsection to “1.71%” is to be read as a reference to “the lesser of $6,300 and 1.60%”, and

    • (v) the reference in the description of A in the formula in paragraph (i) of that subsection to “1.71%” is to be read as a reference to “1.60%”;

  • (b) a residential complex situated in Nova Scotia,

    • (i) the references in that subsection to “$472,500” are to be read as references to “$517,500”,

    • (ii) the references in that subsection to “$367,500” are to be read as references to “$402,500”,

    • (iii) the reference in that subsection to “$105,000” is to be read as a reference to “$115,000”,

    • (iv) the reference in paragraph (h) of that subsection to “1.71%” is to be read as a reference to “the lesser of $6,300 and 1.57%”, and

    • (v) the reference in the description of A in the formula in paragraph (i) of that subsection to “1.71%” is to be read as a reference to “1.57%”;

  • (c) a residential complex situated in New Brunswick,

    • (i) the references in that subsection to “$472,500” are to be read as references to “$517,500”,

    • (ii) the references in that subsection to “$367,500” are to be read as references to “$402,500”,

    • (iii) the reference in that subsection to “$105,000” is to be read as a reference to “$115,000”,

    • (iv) the reference in paragraph (h) of that subsection to “1.71%” is to be read as a reference to “the lesser of $6,300 and 1.57%”, and

    • (v) the reference in the description of A in the formula in paragraph (i) of that subsection to “1.71%” is to be read as a reference to “1.57%”;

  • (d) [Repealed, SOR/2012-191, s. 35]

  • (d.1) a residential complex situated in Prince Edward Island,

    • (i) the references in that subsection to “$472,500” are to be read as references to “$517,500”,

    • (ii) the references in that subsection to “$367,500” are to be read as references to “$402,500”,

    • (iii) the reference in that subsection to “$105,000” is to be read as a reference to “$115,000”,

    • (iv) the reference in paragraph (h) of that subsection to “1.71%” is to be read as a reference to “the lesser of $6,300 and 1.57%”, and

    • (v) the reference in the description of A in the formula in paragraph (i) of that subsection to “1.71%” is to be read as a reference to “1.57%”; and

  • (e) a residential complex situated in Newfoundland and Labrador,

    • (i) the references in that subsection to “$472,500” are to be read as references to “$517,500”,

    • (ii) the references in that subsection to “$367,500” are to be read as references to “$402,500”,

    • (iii) the reference in that subsection to “$105,000” is to be read as a reference to “$115,000”,

    • (iv) the reference in paragraph (h) of that subsection to “1.71%” is to be read as a reference to “the lesser of $6,300 and 1.57%”, and

    • (v) the reference in the description of A in the formula in paragraph (i) of that subsection to “1.71%” is to be read as a reference to “1.57%”.

  • SOR/2012-191, s. 35
  • SOR/2013-44, s. 33
  • SOR/2016-119, s. 14
  • SOR/2016-212, s. 13
 
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