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

Marginal note:Rebate for specified residential complex

• 58.1 (1) For the purposes of subsection 256.21(1) of the Act, the following circumstances are prescribed circumstances in respect of a specified residential complex:

  • (a) immediately before April 1, 2013, a builder of the specified residential complex situated in Prince Edward Island owns or has possession of the complex;

  • (b) the builder referred to in paragraph (a) had not, before April 1, 2013, transferred ownership or possession of the complex under an agreement of purchase and sale to any person who is not a builder of the complex;

  • (c) if the specified residential complex is not a residential condominium unit, the construction of the complex or, in the case of a substantial renovation, the last substantial renovation of the complex, is, immediately after March 2013, 10% or more completed;

  • (d) if the specified residential complex is a residential condominium unit that is being substantially renovated and the condominium complex in which the residential condominium unit is situated is not being substantially renovated, the last substantial renovation of the specified residential complex, is, immediately after March 2013, 10% or more completed; and

  • (e) if the specified residential complex is a residential condominium unit and the condominium complex in which the unit is situated is being constructed or substantially renovated, the construction of the condominium complex or, in the case of a substantial renovation, the last substantial renovation of the condominium complex, is, immediately after March 2013, 10% or more completed.

• Marginal note:Prescribed property and person

  (2) If the circumstances described in subsection (1) are satisfied in respect of a specified residential complex, for the purposes of subsection 256.21(1) of the Act, the complex is prescribed property and the builder of the complex is a prescribed person.

• Marginal note:Exception — prescribed person

  (3) If subsections 191(1) to (4) of the Act do not apply to a builder of a specified residential complex as a consequence of the application of any of subsections 191(5) to (7) of the Act, the builder is deemed never to have been a prescribed person under subsection (2) in respect of the complex for the purposes of subsection 256.21(1) of the Act.

• Marginal note:Amount of rebate

  (4) If the circumstances described in subsection (1) are satisfied in respect of a specified residential complex, for the purposes of subsection 256.21(1) of the Act, the amount of the rebate under that subsection is

  • (a) if the specified residential complex is not a residential condominium unit,

    • (i) 100% of the estimated provincial levy for the specified residential complex if the construction or last substantial renovation of the specified residential complex is, immediately after March 2013, 90% or more completed,

    • (ii) 90% of the estimated provincial levy for the specified residential complex if the construction or last substantial renovation of the specified residential complex is, immediately after March 2013, 75% or more but less than 90% completed,

    • (iii) 75% of the estimated provincial levy for the specified residential complex if the construction or last substantial renovation of the specified residential complex is, immediately after March 2013, 50% or more but less than 75% completed,

    • (iv) 50% of the estimated provincial levy for the specified residential complex if the construction or last substantial renovation of the specified residential complex is, immediately after March 2013, 25% or more but less than 50% completed, or

    • (v) 25% of the estimated provincial levy for the specified residential complex if the construction or last substantial renovation of the specified residential complex is, immediately after March 2013, 10% or more but less than 25% completed;

  • (b) if the specified residential complex is a residential condominium unit that is being substantially renovated and the condominium complex in which the residential condominium unit is situated is not being substantially renovated,

    • (i) 100% of the estimated provincial levy for the specified residential complex if the substantial renovation of the specified residential complex is, immediately after March 2013, 90% or more completed,

    • (ii) 90% of the estimated provincial levy for the specified residential complex if the substantial renovation of the specified residential complex is, immediately after March 2013, 75% or more but less than 90% completed,

    • (iii) 75% of the estimated provincial levy for the specified residential complex if the substantial renovation of the specified residential complex is, immediately after March 2013, 50% or more but less than 75% completed,

    • (iv) 50% of the estimated provincial levy for the specified residential complex if the substantial renovation of the specified residential complex is, immediately after March 2013, 25% or more but less than 50% completed, or

    • (v) 25% of the estimated provincial levy for the specified residential complex if the substantial renovation of the specified residential complex is, immediately after March 2013, 10% or more but less than 25% completed; or

  • (c) if the specified residential complex is a residential condominium unit and the condominium complex in which the unit is situated is being constructed or substantially renovated,

    • (i) 100% of the estimated provincial levy for the specified residential complex if the construction or last substantial renovation of the condominium complex in which the unit is situated is, immediately after March 2013, 90% or more completed,

    • (ii) 90% of the estimated provincial levy for the specified residential complex if the construction or last substantial renovation of the condominium complex in which the unit is situated is, immediately after March 2013, 75% or more but less than 90% completed,

    • (iii) 75% of the estimated provincial levy for the specified residential complex if the construction or last substantial renovation of the condominium complex in which the unit is situated is, immediately after March 2013, 50% or more but less than 75% completed,

    • (iv) 50% of the estimated provincial levy for the specified residential complex if the construction or last substantial renovation of the condominium complex in which the unit is situated is, immediately after March 2013, 25% or more but less than 50% completed, or

    • (v) 25% of the estimated provincial levy for the specified residential complex if the construction or last substantial renovation of the condominium complex in which the unit is situated is, immediately after March 2013, 10% or more but less than 25% completed.

Marginal note:Application for rebate

• 58.11 (1) For the purposes of subsection 256.21(2) of the Act, an application for a rebate, the amount of which is determined under this Division, must be filed before April 1, 2017.

• Marginal note:Restriction

  (2) If a person is the builder of a complex, the Minister shall pay a rebate in respect of the complex to the person under subsection 256.21(1) of the Act, the amount of which is determined under subsection 58.09(4) or 58.1(4), only if the Minister is satisfied, by a certificate, statement or other documentary evidence as the Minister may require, that the person is in good standing with respect to the payment of all taxes, and fees relating to the construction activities of the builder, imposed under an Act of the legislature of the province in which the residential complex is situated.

• Marginal note:Rebate based on floor space

  (3) In determining under subsection 58.1(4) the amount of a rebate payable to a person in respect of a residential complex, the estimated provincial levy for the complex must be determined based on the interior floor space of the complex if the person applies for the rebate before the day on which tax under Part IX of the Act becomes payable in respect of a supply of the complex by the person.

PART 10Application

59 Sections 1 and 40, subsections 47(1), (2), (12) and (13) and sections 48 to 53 are deemed to have come into force on June 18, 2009.

60 Part 1, sections 22, 37 and 38, subsections 47(11), (14) and (15) and sections 54 to 58 come into force, or are deemed to have come into force, on July 1, 2010.

61 Part 2 applies to any allowance paid by a person on or after July 1, 2010.

62 Part 3 applies to supplies made by independant sales contractors on or after the later of July 1, 2010 and the day on which these Regulations are first published in the Canada Gazette.

63 Part 4 applies in respect of the bringing into a participating province of a vehicle or aircraft from another participating province on or after July 1, 2010.

64 Section 6 is deemed to have come into force on February 25, 2010.

65 Sections 7, 13 to 15, 20, 21, 24 and 25 apply

• (a) to any supply made on or after July 1, 2010; and

• (b) in respect of any consideration for a supply that becomes due, or is paid without having become due, on or after July 1, 2010.

66 Sections 8 to 12, 16 to 19 and 23 come into force, or are deemed to have come into force, on July 1, 2010, except that section 9 is to be read without reference to paragraph (a) of the description of D with respect to property that a person brings into a participating province from Ontario, Nova Scotia or British Columbia (each of which is in this section referred to as the “listed province”) if the property was acquired in, or brought into, the listed province by the person before July 2010 and was not removed from the listed province until after June 2010.

67 Sections 26 to 36 apply in respect of any reporting period of a person that ends on or after July 1, 2010, except that, for the purposes of subsection 36(2), if any reporting period referred to in the portion of that subsection before the formula ends before April 1, 2011, the reference in that subsection to “a reporting period of the person that includes the last day of that fiscal year or for a reporting period of the person that begins after that fiscal year and ends on or before the last day of the third fiscal month following the last day of that fiscal year” is to be read as a reference to “the reporting period that includes April 1, 2011”.

68 Section 39 applies for the purposes of determining any rebate under section 253 of the Act in respect of 2010 and subsequent years.

69 Section 41 applies in respect of a residential complex that is supplied by way of sale, if ownership and possession are transferred under the agreement for the supply on or after July 1, 2010.

• 70 (1) Subparagraphs 42(a)(i) to (iii) and (d)(i) to (iii) apply for the purposes of determining a rebate in respect of a supply, to a particular individual referred to in subsection 254.1(2) of the Act, of a building or part of it in which a residential unit forming part of a residential complex is situated if the supply of the complex referred to in paragraph 254.1(2)(d) of the Act is deemed under section 191 of the Act to have been made on or after July 1, 2010, unless no tax is payable under subsection 165(2) of the Act in respect of the supply referred to in that paragraph.

• (2) Subparagraphs 42(a)(iv) and (v) and (d)(iv) and (v) apply for the purposes of determining a rebate in respect of a supply, to a particular individual referred to in subsection 254.1(2) of the Act, of a building or part of it in which a residential unit forming part of a residential complex is situated if the supply of the complex referred to in paragraph 254.1(2)(d) of the Act is deemed under section 191 of the Act to have been made on or after the later of July 1, 2010 and the day on which these Regulations are first published in the Canada Gazette, unless no tax is payable under subsection 165(2) of the Act in respect of the supply referred to in that paragraph.

• (3) Subparagraphs 42(b)(i) to (iii), (c)(i) to (iii) and (e)(i) to (iii) apply for the purposes of determining a rebate in respect of a supply, to a particular individual referred to in subsection 254.1(2) of the Act, of a building or part of it in which a residential unit forming part of a residential complex is situated if the supply of the complex referred to in paragraph 254.1(2)(d) of the Act is deemed under section 191 of the Act to have been made on or after July 1, 2010, unless the agreement referred to in paragraph 254.1(2)(a) of the Act between the particular individual and the builder is entered into on or before April 6, 2010.

• (4) Subparagraphs 42(b)(iv) and (v), (c)(iv) and (v) and (e)(iv) and (v) apply for the purposes of determining a rebate in respect of a supply, to a particular individual referred to in subsection 254.1(2) of the Act, of a building or part of it in which a residential unit forming part of a residential complex is situated if the supply of the complex referred to in 254.1(2)(d) of the Act is deemed under section 191 of the Act to have been made on or after the later of July 1, 2010 and the day on which these Regulations are first published in the Canada Gazette, unless the agreement referred to in paragraph 254.1(2)(a) of the Act between the particular individual and the builder is entered into before that day.

71 Section 43 applies in respect of a building or part of it in which a residential unit forming part of a residential complex is situated if possession of the unit is given to the particular individual referred to in subsection 254.1(2) of the Act on or after July 1, 2010, unless the builder of the complex is deemed under section 191 of the Act to have made a supply of the complex in respect of which tax under subsection 165(2) of the Act did not apply.

• 72 (1) Subparagraphs 44(a)(i) to (iii) and (d)(i) to (iii) apply for the purposes of determining a rebate in respect of a supply, by a cooperative housing corporation to a particular individual, of a share of the capital stock of the corporation if the rebate application is filed on or after July 1, 2010, unless the corporation paid no tax under subsection 165(2) of the Act in respect of the supply referred to in paragraph 255(2)(a) of the Act of the complex to the corporation.

• (2) Subparagraphs 44(a)(iv) and (v) and (d)(iv) and (v) apply for the purposes of determining a rebate in respect of a supply, by a cooperative housing corporation to a particular individual, of a share of the capital stock of the corporation if the rebate application is filed on or after the later of July 1, 2010 and the day on which these Regulations are first published in the Canada Gazette, unless the corporation paid no tax under subsection 165(2) of the Act in respect of the supply referred to in paragraph 255(2)(a) of the Act of the complex to the corporation.

• (3) Subparagraphs 44(b)(i) to (iii) apply for the purposes of determining a rebate in respect of a supply, by a cooperative housing corporation to a particular individual, of a share of the capital stock of the corporation acquired by the particular individual for the purpose of using a residential unit in a residential complex as the primary place of residence of the particular individual or a relation (as defined in subsection 255(1) of the Act) of the particular individual if the corporation paid tax under subsection 165(2) of the Act at a rate of 10% in respect of a taxable supply of the residential complex to the corporation, unless the agreement referred to in paragraph 255(2)(c) of the Act between the particular individual and the corporation is entered into on or before April 6, 2010.

• (4) Subparagraphs 44(b)(iv) and (v) apply for the purposes of determining a rebate in respect of a supply, by a cooperative housing corporation to a particular individual, of a share of the capital stock of the corporation acquired by the particular individual for the purpose of using a residential unit in a residential complex as the primary place of residence of the particular individual or a relation (as defined in subsection 255(1) of the Act) of the particular individual if the corporation paid tax under subsection 165(2) of the Act at a rate of 10% in respect of a taxable supply of the residential complex to the corporation, unless the agreement referred to in paragraph 255(2)(c) of the Act between the particular individual and the corporation is entered into before the later of July 1, 2010 and the day on which these Regulations are first published in the Canada Gazette.

• (5) Subparagraphs 44(c)(i) to (iii) and (e)(i) to (iii) apply for the purposes of determining a rebate in respect of a supply, by a cooperative housing corporation to a particular individual, of a share of the capital stock of the corporation if the rebate application is filed after April 6, 2010, unless the agreement referred to in paragraph 255(2)(c) of the Act between the particular individual and the corporation is entered into on or before that day.

• (6) Subparagraphs 44(c)(iv) and (v) and (e)(iv) and (v) apply for the purposes of determining a rebate in respect of a supply, by a cooperative housing corporation to a particular individual, of a share of the capital stock of the corporation if the rebate application is filed on or after the later of July 1, 2010 and the day on which these Regulations are first published in the Canada Gazette, unless the agreement referred to in paragraph 255(2)(c) of the Act between the particular individual and the corporation is entered into before that day.

73 Section 45 applies in respect of a supply, by a cooperative housing corporation to an individual, of a share of the capital stock of the corporation if the individual is acquiring the share for the purpose of using a residential unit in a residential complex and the possession of the unit is first given on or after July 1, 2010 to the individual as an incidence of ownership of the share, unless tax under subsection 165(2) of the Act did not apply to the supply, referred to in paragraph 255(2)(a) of the Act, of the complex to the corporation.

74 Section 46 applies in respect of a residential complex in respect of which the particular individual referred to in paragraph 256(2)(c) of the Act paid tax under subsection 165(2), section 212.1 or 218.1 or any of sections 220.05 to 220.07 of the Act in respect of the land that forms part of the complex or an interest therein or in respect of any improvement to the land or complex.