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(5) Clause 173(1)(d)(vi)(B) of the English
version of the Act, as enacted by subsection
22(1), is replaced by the following:
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(B) in any other case, the amount
determined by the formula
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(A/B) x C
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A is
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(I) where
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1. the benefit amount is required to be in
cluded under paragraph 6(1)(a) or (e) of the
Income Tax Act in computing the 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 lo
cated in a participating province, or
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2. the benefit amount is required under subsec
tion 15(1) of that Act to be included in com
puting the individual's income and the indi
vidual is resident in a participating province at
the end of the year,
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the total of 6% and the tax rate for
the participating province, and
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(II) in any other case, 6%,
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B is the total of 100% and the percent
age determined for A, and
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C is the total consideration.
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(6) Subparagraph 173(3)(c)(i) of the Act
is replaced by the following:
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(i) there shall not be included, in deter
mining an input tax credit claimed by the
registrant in the return under section 238
for the particular or any subsequent
reporting period, tax that is calculated on
consideration or part thereof, for that
supply or that is in respect of an improve
ment to the property acquired, imported
or brought into a participating province
by the registrant after the property was
last so acquired, imported or brought in,
as the case may be , and
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(7) That portion of paragraph 173(3)(d)
of the Act before subparagraph (ii), as
enacted by subsection 22(2), is replaced by
the following:
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(d) there shall not be included, in determin
ing an input tax credit claimed by the
registrant in the return under section 238 for
the particular or any subsequent reporting
period, tax calculated on an amount of
consideration, or a value determined under
section 215 or subsection 220.05(1),
220.06(1) or 220.07(1) , that can reasonably
be attributed to
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(i) any property that is acquired, im
ported or brought into a participating
province for consumption or use in
operating the vehicle or aircraft in re
spect of which the election is made and
that is, or is to be used, or consumed after
that day, or
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(8) Subsections (1), (2), (4), (6) and (7)
come into force on April 1, 1997.
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(9) Subsections (3) and (5) apply to the
1997 and subsequent taxation years of
individuals except that, with respect to the
1997 taxation year, the reference to ``le taux
de taxe applicable à cette province'' in
sub-subclauses (I)1 and 2 of the description
of A in the formula in clause 173(1)(d)(ii)(B)
of the French version of the Act, as enacted
by subsection (3), shall be read as a refer
ence to ``6 %'' and the reference to ``tax
rate for the participating province'' in
clause 173(1)(d)(vi)(B) of the English ver
sion of the Act, as enacted by subsection (5),
shall be read as a reference to ``6%''.
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167. (1) Paragraph 174(f) of the Act, as
enacted by subsection 23(3), is replaced by
the following:
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(f) the person is deemed to have paid, at the
time the allowance is paid, tax in respect of
the supply equal to the amount determined
by the formula
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A x B
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A is the amount of the allowance, and
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B is
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(A) all or substantially all of the
supplies for which the allowance is
paid were made in participating
provinces, or
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(B) the allowance is paid for the use
of the motor vehicle in participating
provinces, and
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(ii) in any other case, 7/107.
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(2) Subsection (1) applies to allowances
paid after March 31, 1997.
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168. (1) The portion of subsection 175(1)
of the Act before paragraph (a), as enacted
by subsection 24(1), is replaced by the
following:
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175. (1) Where an employee of an employ
er, a member of a partnership or a volunteer
who gives services to a charity or public
institution acquires or imports property or a
service or brings it into a participating prov
ince for consumption or use in relation to
activities of the employer, partnership, charity
or public institution (each of which is referred
to in this subsection as the ``person''), the
employee, member or volunteer paid the tax
payable in respect of that acquisition, im
portation or bringing in and the person pays an
amount to the employee, member or volunteer
as a reimbursement in respect of the property
or service, for the purposes of this Part,
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(2) The description of A in paragraph
175(1)(c) of the Act, as enacted by subsec
tion 24(1), is replaced by the following:
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A is the tax paid by the employee, member
or volunteer in respect of the acquisi
tion, importation or bringing into a
particular province of the property or
service by the employee, member or
volunteer, and
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(3) Subparagraph (ii) of the description
of B in paragraph 175(1)(c) of the Act, as
enacted by subsection 24(1), is replaced by
the following:
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(ii) the extent (expressed as a percent
age) to which the property or service
was acquired, imported or brought into
the province, as the case may be, by
the employee, member or volunteer
for consumption or use in relation to
activities of the person.
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(4) Subsection 175(2) of the Act, as
enacted by subsection 24(1), is replaced by
the following:
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(2) Subsection (1) does not apply to a
reimbursement in respect of property or a
service acquired, imported or brought into a
participating province by a member of a
partnership where paragraph 272.1(2)(b) ap
plies to the acquisition, importation or bring
ing in, as the case may be, and the reimburse
ment is paid to the member after the member
files with the Minister a return of the member
under section 238 in which an input tax credit
in respect of the property or service is claimed.
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(5) Subsections (1) to (4) come into force
on April 1, 1997.
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169. (1) Paragraph 175.1(a) of the Act, as
enacted by subsection 24(1), is replaced by
the following:
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(a) the beneficiary of a warranty (other than
an insurance policy) in respect of the
quality, fitness or performance of tangible
property acquires or imports property or a
service or brings it into a participating
province and tax is payable by the benefi
ciary in respect of the acquisition, importa
tion or bringing in , and
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(2) The description of A in paragraph
175.1(c) of the Act, as enacted by subsection
24(1), is replaced by the following:
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A is the tax payable by the beneficiary,
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(3) Subsections (1) and (2) come into force
on April 1, 1997.
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170. (1) The portion of subsection 176(1)
of the French version of the Act, before
paragraph (a), as enacted by subsection
25(1), is replaced by the following:
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| Acquisition de
contenants
consignés
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176. (1) Pour l'application de la présente
partie mais sous réserve de la présente section,
un inscrit est réputé avoir payé, dès qu'un
montant est versé en contrepartie d'une four
niture de biens meubles corporels d'occasion,
sauf si l'article 167 s'applique à la fourniture,
la taxe relative à la fourniture si les conditions
suivantes sont réunies :
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(2) Subparagraph 176(1)(d)(ii) of the Act,
as enacted by subsection 25(1), is replaced
by the following:
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(ii) all tax calculated on that consider
ation,
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(3) The portion of subsection 176(1) of the
Act after paragraph (d), as enacted by
subsection 25(1), is replaced by the follow
ing:
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for the purposes of this Part, the registrant is
deemed (except where section 167 applies to
the supply) to have paid, at the time any
amount is paid as consideration for the supply,
tax in respect of the supply equal to the amount
determined by the formula
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(A/B) x C
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where
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A is
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(a) where the supply is made in a
participating province, the total of 7%
and the tax rate for that province, and
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(b) in any other case, 7%,
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B is the total of 100% and the percentage de
termined for A, and
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C is the amount paid as consideration for the
supply.
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(4) Subsections (1) to (3) come into force
on April 1, 1997.
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171. (1) Subparagraph 178.3(2)(e)(i) of
the Act is replaced by the following:
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(i) the particular supply is deemed, for
the purposes of this Part except section
178.1 and subsections (4) to (6) and
178.5(7), to be a taxable supply made by
the direct seller, and not by the particular
contractor, for consideration equal to the
lesser of the actual consideration for the
supply and the suggested retail price of
the product at the time the particular
supply is made,
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(2) Section 178.3 of the Act is amended by
adding the following after subsection (4):
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| Adjustment
where supply
not in
participating
province
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(5) Where
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(a) at a particular time a direct seller makes
a supply in a participating province of an
exclusive product of the direct seller in
circumstances in which an amount is re
quired under paragraph (1)(d) to be added in
determining the net tax of the direct seller,
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(b) included in the amount required under
paragraph (1)(d) to be added in determining
the net tax of the direct seller is tax payable
under subsection 165(2) in respect of the
supply,
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(c) a particular independent sales contractor
of the direct seller makes a supply of the
product outside the participating provinces,
and
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(d) the direct seller pays to, or credits in
favour of, the particular contractor an
amount in respect of the product equal to the
amount of the tax payable under subsection
165(2) calculated on the suggested retail
price of the product at the particular time,
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the direct seller may deduct the amount deter
mined under paragraph (d), in determining the
net tax for the particular reporting period of
the direct seller in which the payment or credit
is given or a subsequent reporting period, in a
return under Division V filed by the direct sell
er within two years after the day on or before
which the return under Division V for the par
ticular reporting period is required to be filed.
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| Adjustment
where supply
is in
participating
province
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(6) Where
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(a) a direct seller makes a supply outside the
participating provinces of an exclusive
product of the direct seller in circumstances
in which an amount is required under
paragraph (1)(d) to be added in determining
the net tax of the direct seller,
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(b) no tax under subsection 165(2) in
respect of the supply is included in the
amount required under paragraph (1)(d) to
be added in determining the net tax of the
direct seller, and
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(c) an independent sales contractor of the
direct seller makes at a particular time a
supply of the product in a participating
province,
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in determining the net tax of the direct seller
for the reporting period of the direct seller that
includes the particular time, there shall be
added an amount equal to the tax that would
be payable under subsection 165(2) in respect
of the supply, calculated on the suggested re
tail price of the product at the particular time,
if the supply by the direct seller were made in
that participating province at the particular
time.
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(3) Subsections (1) and (2) come into force
on April 1, 1997.
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172. (1) Subparagraph 178.4(2)(d)(i) of
the Act is replaced by the following:
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(i) the particular supply is deemed, for
the purposes of this Part except section
178.1 and subsections (4) to (6) and
178.5(7), to be a taxable supply made by
the distributor, and not by the particular
contractor, for consideration equal to the
lesser of the actual consideration for the
supply and the suggested retail price of
the product at the time the particular
supply is made,
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(2) Section 178.4 of the Act is amended by
adding the following after subsection (4):
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| Adjustment
where supply
not in
participating
province
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(5) Where
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(a) at a particular time a distributor of a
direct seller makes a supply in a participat
ing province of an exclusive product of the
direct seller in circumstances in which an
amount is required under paragraph (1)(d)
to be added in determining the net tax of the
distributor,
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(b) included in the amount required under
paragraph (1)(d) to be added in determining
the net tax of the distributor is tax payable
under subsection 165(2) in respect of the
supply,
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(c) a particular independent sales contractor
of the direct seller (other than the distribu
tor) makes a supply of the product outside
the participating provinces, and
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(d) the distributor pays to, or credits in
favour of, the particular contractor an
amount in respect of the product equal to the
amount of the tax payable under subsection
165(2) calculated on the suggested retail
price of the product at the particular time,
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the distributor may deduct the amount deter
mined under paragraph (d) in determining the
net tax for the particular reporting period of
the distributor in which the payment or credit
is given or a subsequent reporting period, in a
return under Division V filed by the distributor
within two years after the day on or before
which the return under Division V for the par
ticular reporting period is required to be filed.
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| Adjustment
where supply
is in
participating
province
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(6) Where
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(a) a distributor of a direct seller makes a
supply outside the participating provinces
of an exclusive product of the direct seller
in circumstances in which an amount is
required under paragraph (1)(d) to be added
in determining the net tax of the distributor,
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(b) no tax under subsection 165(2) in
respect of the supply is included in the
amount required under paragraph (1)(d) to
be added in determining the net tax of the
distributor, and
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(c) a particular independent sales contractor
of the direct seller (other than the distribu
tor) makes at a particular time a supply of
the product in a participating province,
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in determining the net tax of the distributor for
the reporting period of the distributor that in
cludes the particular time, there shall be added
an amount equal to the tax that would be pay
able under subsection 165(2) in respect of the
supply, calculated on the suggested retail price
of the product at the particular time, if the sup
ply by the distributor were made in that partic
ipating province at the particular time.
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(3) Subsections (1) and (2) come into force
on April 1, 1997.
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