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

PART 8New Housing Rebates

DIVISION 1Interpretation

Marginal note:Group of individuals

40 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 if two or more individuals construct or substantially renovate, or engage another person to construct or substantially renovate, a residential complex, the following rules apply in respect of those individuals:

• (a) subject to paragraphs (b) and (c), 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;

• (b) the references in subsection 41(2) and paragraphs 45(2)(a), 46(2)(a) and 46(5)(c) to the primary place of residence of an individual or a relation of the individual are to be read as references to the primary place of residence of any of those individuals or a relation of any of those individuals;

• (c) the reference in paragraph 46(5)(d) to the particular individual or a relation of the particular individual is to be read as a reference to any of those individuals or a relation of any of those individuals; and

• (d) 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

• 41 (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.

DIVISION 3New Housing Rebates for Building Only

Marginal note:Amounts and rates for participating provinces

42 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%”.

Marginal note:Rebate in Ontario

• 43 (1) If an individual is entitled to claim a rebate under subsection 254.1(2) of the Act, or to be paid or credited the amount of such a rebate under subsection 254.1(4) of the Act, in respect of a building or part of it in which a residential unit forming part of a residential complex in Ontario is situated, or would be so entitled if the fair market value of the complex, at the time possession of the complex is given to the individual under the agreement for the supply of the complex to the individual, were less than $508,500, for the purposes of subsection 256.21(1) of the Act, the individual is a prescribed person and the amount of the rebate in respect of the complex under that subsection is equal to the lesser of $24,000 and 5.31% of the total consideration (within the meaning of paragraph 254.1(2)(h) of the Act) in respect of the complex.

• (2) [Repealed, SOR/2012-191, s. 36]

• Marginal note:Application for rebate

  (3) For the purposes of subsection 256.21(2) of the Act, an application for a rebate, the amount of which is determined under subsection (1), must be filed within two years after the day on which possession of the complex is transferred to the individual.

• Marginal note:Application to builder

  (4) For the purposes of the application of subsection 256.21(3) of the Act in respect of a rebate in relation to a building or part of it in which a residential unit forming part of a residential complex is situated,

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

  • (b) an individual who is a prescribed person under subsection (1) in relation to the complex is an individual of a prescribed class; and

  • (c) the following circumstances are prescribed circumstances:

    • (i) the builder makes a supply of the complex to an individual under an agreement referred to in paragraph 254.1(2)(a) of the Act and transfers possession of the complex to the individual under the agreement,

    • (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 (1), that is payable to the individual in respect of the complex, and

    • (iii) the individual, within two years after the day on which possession 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.

DIVISION 4Cooperative Housing Rebates

Marginal note:Amounts and rates for participating provinces

44 In applying subsection 255(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 (g) 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 (h) 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 (g) 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 (h) 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 (g) 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 (h) of that subsection to “1.71%” is to be read as a reference to “1.57%”;

• (d) [Repealed, SOR/2012-191, s. 37]

• (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 (g) 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 (h) 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 (g) 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 (h) of that subsection to “1.71%” is to be read as a reference to “1.57%”.

Marginal note:Definition of relation

• 45 (1) In this section, relation has the same meaning as in subsection 255(1) of the Act.

• Marginal note:Rebate in Ontario

  (2) For the purposes of subsection 256.21(1) of the Act, an individual is a prescribed person and the amount of the rebate under that subsection in respect of a share of the capital stock of a cooperative housing corporation is equal to the lesser of $24,000 and 5.31% of the total consideration referred to in paragraph (c), if

  • (a) the individual has acquired the share for the purpose of using a residential unit in a residential complex of the corporation that is situated in Ontario as the primary place of residence of the individual or of a relation of the individual;

  • (b) the corporation has paid tax under subsection 165(2) of the Act in respect of a taxable supply to the corporation of the complex; and

  • (c) the individual is entitled to claim a rebate under subsection 255(2) of the Act in respect of the share or would be so entitled if the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the individual of the share or an interest in the corporation, complex or unit, were less than $508,500.

• (3) [Repealed, SOR/2012-191, s. 38]

• 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 share is transferred to the individual.

• (5) [Repealed, SOR/2012-191, s. 38]