(A) the property was seized or repossessed in a participating prov ince by the creditor within three years after the implementation date for that province (within the mean ing assigned by subsection 348(1)) and the particular supply is either made outside Canada or is a zero- rated supply, or

(B) either the property was seized or repossessed in a non-participating province or the particular supply is made in a non-participating prov ince,

        tax under subsection 165(1) calculated on that consideration, and

        (ii) in any other case, the total of

(A) tax under subsection 165(1) calculated on that consideration, and

(B) tax under subsection 165(2) calculated on that consideration at the lesser of the tax rate for the participating province in which the particular supply is made and the tax rate for the participating province in which the property was seized or repossessed , and

(6) Paragraph 183(8)(d) of the Act is replaced by the following:

    (d) to have paid, immediately before the particular time, all tax payable in respect of that supply, which is deemed to be equal to

      (i) where

        (A) the property was seized or repos sessed in a participating province by the creditor within three years after the implementation date for that province (within the meaning assigned by sub section 348(1)) and the particular sup ply is either made outside Canada or is a zero-rated supply, or

        (B) either the property was seized or repossessed in a non-participating province or the particular supply is made in a non-participating province,

      tax under subsection 165(1) calculated on the fair market value of the property at the time it was seized or repossessed, and

      (ii) in any other case, the total of

        (A) tax under subsection 165(1) calcu lated on that fair market value, and

        (B) tax under subsection 165(2) calcu lated on that fair market value at the lesser of the tax rate for the participat ing province in which the particular supply is made and the tax rate for the participating province in which the property was seized or repossessed.

(7) Subsections (1) to (6) come into force on April 1, 1997.

179. (1) Paragraph 184(3)(a) of the Act is replaced by the following:

    (a) to have collected, at that time, tax in respect of the supply equal to the amount determined by the formula

                              (A/B) x C

    where

A is

        (i) where the supply is made in a participating province, the total of 7% and the tax rate for that province, and

        (ii) in any other case, 7%,

B is the total of 100% and the percentage determined for A, and

C is the fair market value of the property at that time; and

(2) Subparagraph 184(4)(b)(i) of the Act is replaced by the following:

      (i) to have made, at the particular time, a taxable supply of the property and to have collected, at the particular time, tax in respect of that supply equal to the amount determined by the formula

                              (A/B) x C

      where

A is

(A) where the property is situated in a participating province at the par ticular time, the total of 7% and the tax rate for that province, and

(B) in any other case, 7%,

B is the total of 100% and the percentage determined for A, and

C is the fair market value of the property at the time it was transferred, and

(3) The portion of subparagraph 184(5)(a)(ii) of the Act after clause (B), as enacted by subsection 34(3), is replaced by the following:

      to have paid, immediately after the particular time, all tax payable in respect of that supply, which is deemed to be equal to the amount determined by the formula

                              (A/B) x C

      where

A is

(A) where the property is situated in a participating province at the par ticular time and was transferred within three years after the imple mentation date for that province (within the meaning of Division X) or the property is situated in a non-participating province at the particular time, 7%, and

(B) in any other case, the total of 7% and the tax rate for the participating province in which the property is situated at the particular time,

B is the total of 100% and the percentage determined for A, and

C is the fair market value of the property at the time it was transferred; and

(4) Paragraph 184(5)(b) of the Act is replaced by the following:

    (b) where tax would have been payable had the property been purchased in Canada from the person at the time it was trans ferred, the insurer is deemed to have made, at the particular time, a taxable supply of the property and to have collected, at the particular time, all tax payable in respect of that supply, which is deemed to be equal to the amount determined by the formula

                              (A/B) x C

    where

A is

        (i) where the property is situated in a participating province at the particular time, the total of 7% and the tax rate for that province, and

        (ii) in any other case, 7%,

B is the total of 100% and the percentage determined for A, and

C is the fair market value of the property at the time it was transferred.

(5) The portion of paragraph 184(6)(d) of the Act before the description of B is replaced by the following:

    (d) to have paid, immediately before that time, all tax payable in respect of the supply deemed under paragraph (c) to have been received, which is deemed to be equal to the amount determined by the formula

                       A - B

    where

A is

        (i) where

(A) the property was last held by the person in a participating province before being transferred to an insur er within three years after the imple mentation date for that province (within the meaning of Division X) and the particular supply is either made outside Canada or is a zero- rated supply, or

(B) either the property was last held by the person in a non-participating province before being transferred or the particular supply is made in a non-participating province,

        tax under subsection 165(1) calculated on that consideration, and

        (ii) in any other case, the total of

(A) tax under subsection 165(1) calculated on that consideration, and

(B) tax under subsection 165(2) calculated on that consideration at the lesser of the tax rate for the participating province in which the particular supply is made and the tax rate for the participating province in which the property was last held by the person before being transferred, and

(6) Paragraph 184(7)(d) of the Act is replaced by the following:

    (d) to have paid, immediately before the particular time, all tax payable in respect of that supply, which is deemed to be equal to

      (i) where

        (A) the property was last held by the person in a participating province before being transferred to the insurer within three years after the imple mentation date for that province (with in the meaning of Division X) and the particular supply is either made out side Canada or is a zero-rated supply, or

        (B) either the property was last held by the person in a non-participating prov ince before being transferred or the particular supply is made in a non-par ticipating province,

      tax under subsection 165(1) calculated on the fair market value of the property at the time it was transferred, and

      (ii) in any other case, the total of

        (A) tax under subsection 165(1) calcu lated on that fair market value, and

        (B) tax under subsection 165(2) calcu lated on that fair market value at the lesser of the tax rate for the participat ing province in which the particular supply is made and the tax rate for the participating province in which the property was last held by the person before being transferred.

(7) Subsections (1) to (6) come into force on April 1, 1997.

180. (1) Subsection 185(1) of the Act, as enacted by subsection 35(1), is replaced by the following:

Financial services - input tax credits

185. (1) Where tax in respect of property or a service acquired, imported or brought into a participating province by a registrant be comes payable by the registrant at a time when the registrant is neither a listed financial institution nor a person who is a financial institution because of paragraph 149(1)(b), for the purpose of determining an input tax credit of the registrant in respect of the property or service and for the purposes of Subdivision d, to the extent (determined in accordance with subsection 141.01(2)) that the property or service was acquired, imported or brought into the province, as the case may be , for consumption, use or supply in the course of making supplies of financial services that relate to commercial activities of the regis trant,

    (a) where the registrant is a financial institution because of paragraph 149(1)(c), the property or service is deemed, notwith standing subsection 141.01(2), to have been so acquired, imported or brought into the province for consumption, use or supply in the course of those commercial activities except to the extent that the property or service was so acquired, imported or brought into the province for consumption, use or supply in the course of activities of the registrant that relate to

      (i) credit cards or charge cards issued by the registrant, or

      (ii) the making of any advance, the lending of money or the granting of any credit; and

    (b) in any other case, the property or service is deemed, notwithstanding subsection 141.01(2), to have been so acquired, im ported or brought into the province for consumption, use or supply in the course of those commercial activities.

(2) Subsection (1) comes into force on April 1, 1997.

181. (1) Subsection 186(1) of the Act is replaced by the following:

Related corporations

186. (1) Where

    (a) a registrant (in this subsection referred to as the ``parent'') that is a corporation resident in Canada at any time acquires, imports or brings into a participating prov ince particular property or a service that can reasonably be regarded as having been so acquired, imported or brought into the province for consumption or use in relation to shares of the capital stock, or indebted ness, of another corporation that is at that time related to the parent, and

    (b) at the time that tax in respect of the acquisition, importation or bringing in becomes payable, or is paid without having become payable, by the parent, all or substantially all of the property of the other corporation is property that was last ac quired or imported by the other corporation for consumption, use or supply by the other corporation exclusively in the course of its commercial activities,

except where subsection (2) applies, for the purpose of determining an input tax credit of the parent, the parent is deemed to have ac quired or imported the particular property or service or brought it into the participating province, as the case may be , for use in the course of commercial activities of the parent to the extent that the parent can reasonably be regarded as having so acquired or imported the particular property or service, or as having so brought it into the province , for consump tion or use in relation to the shares or indebted ness.

(2) Subsection (1) comes into force on April 1, 1997.

182. (1) Section 187 of the Act is replaced by the following:

Bets and games of chance

187. For the purposes of this Part, where a particular person bets an amount on a game of chance, a race or other event or occurrence, the following rules apply:

    (a) the person with whom the bet is placed is deemed to have made a supply of a service to the particular person;

    (b) where the bet is placed in a participating province, that supply is deemed to have been made in that province; and

    (c) the consideration for that supply is deemed to be equal to the amount deter mined by the formula

                              (A/B) x (C - D)  

    where

A is 100% ,