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(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
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(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,
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tax under subsection 165(1) calculated
on that consideration, and
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(ii) in any other case, the total of
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(A) tax under subsection 165(1)
calculated on that consideration,
and
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(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
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(6) Paragraph 183(8)(d) of the Act is
replaced by the following:
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(d) to have paid, immediately before the
particular time, all tax payable in respect of
that supply, which is deemed to be equal to
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(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
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(B) either the property was seized or
repossessed in a non-participating
province or the particular supply is
made in a non-participating province,
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tax under subsection 165(1) calculated
on the fair market value of the property at
the time it was seized or repossessed, and
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(ii) in any other case, the total of
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(A) tax under subsection 165(1) calcu
lated on that fair market value, and
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(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.
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(7) Subsections (1) to (6) come into force
on April 1, 1997.
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179. (1) Paragraph 184(3)(a) of the Act is
replaced by the following:
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(a) to have collected, at that time, 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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A is
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(i) 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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(ii) in any other case, 7%,
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B is the total of 100% and the percentage
determined for A, and
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C is the fair market value of the property
at that time; and
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(2) Subparagraph 184(4)(b)(i) of the Act
is replaced by the following:
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(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
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(A/B) x C
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A is
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(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
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(B) in any other case, 7%,
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B is the total of 100% and the percentage
determined for A, and
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C is the fair market value of the property
at the time it was transferred, and
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(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:
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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
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(A/B) x C
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A is
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(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
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(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,
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B is the total of 100% and the percentage
determined for A, and
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C is the fair market value of the property
at the time it was transferred; and
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(4) Paragraph 184(5)(b) of the Act is
replaced by the following:
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(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
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(A/B) x C
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A is
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(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
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(ii) in any other case, 7%,
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B is the total of 100% and the percentage
determined for A, and
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C is the fair market value of the property
at the time it was transferred.
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(5) The portion of paragraph 184(6)(d) of
the Act before the description of B is
replaced by the following:
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(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
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A - B
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A is
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(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
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(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,
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tax under subsection 165(1) calculated
on that consideration, and
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(ii) in any other case, the total of
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(A) tax under subsection 165(1)
calculated on that consideration,
and
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(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
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(6) Paragraph 184(7)(d) of the Act is
replaced by the following:
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(d) to have paid, immediately before the
particular time, all tax payable in respect of
that supply, which is deemed to be equal to
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(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
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(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,
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tax under subsection 165(1) calculated
on the fair market value of the property at
the time it was transferred, and
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(ii) in any other case, the total of
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(A) tax under subsection 165(1) calcu
lated on that fair market value, and
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(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.
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(7) Subsections (1) to (6) come into force
on April 1, 1997.
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180. (1) Subsection 185(1) of the Act, as
enacted by subsection 35(1), is replaced by
the following:
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| 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,
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(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
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(i) credit cards or charge cards issued by
the registrant, or
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(ii) the making of any advance, the
lending of money or the granting of any
credit; and
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(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.
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(2) Subsection (1) comes into force on
April 1, 1997.
|
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|
181. (1) Subsection 186(1) of the Act is
replaced by the following:
|
|
| Related
corporations
|
186. (1) Where
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(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
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(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,
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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.
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|
(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:
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|
(a) the person with whom the bet is placed
is deemed to have made a supply of a
service to the particular person;
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|
(b) where the bet is placed in a participating
province, that supply is deemed to have
been made in that province; and
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|
(c) the consideration for that supply is
deemed to be equal to the amount deter
mined by the formula
|
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|
(A/B) x (C - D)
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|
A is 100% ,
|
|