BILL C-70 - First Reading

	that consideration is deemed, for the purpose of applying subsection 165(2) to the supply, to have become due on that implementation date and not to have been paid before that imple mentation date.
Interpreta- tion	(3) For the purposes of this section, ``con tinuous freight movement'', ``freight trans portation service'' and ``shipper'' have the same meanings as in Part VII of Schedule VI.
Meaning of ``funeral services''	360. (1) In this section, ``funeral services'' includes the provision of a coffin, a headstone or any other property relating to the funeral, burial or cremation of an individual that is provided under an arrangement for the provi sion of funeral services.
Funeral arrangements entered into before implementa- tion	(2) Where
	(a) an arrangement to supply funeral ser vices in respect of an individual is entered into in writing before the implementation date for a participating province,
	(b) under the terms of the arrangement, the funds required to pay for the funeral services are held by a trustee who is responsible for acquiring funeral services in respect of the individual, and
	(c) at the time the arrangement is entered into, it is reasonable to expect that all or a part of those funds will be advanced to the trustee before the individual's death,
	no tax is payable by the trustee under subsec tion 165(2) in respect of the supply in that province of funeral services under the ar rangement or under section 212.1 or subsec tion 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) in respect of funeral services sup plied under the arrangement for consumption or use in that province.
Funeral arrangements entered into before implementa- tion	(3) Where an arrangement to supply funeral services in respect of an individual is entered into in writing at any time before the imple mentation date for a participating province and, at that time, it is reasonable to expect that all or a part of the consideration for the supply of the funeral services will be paid before the individual's death, no tax is payable under subsection 165(2) in respect of the supply in that province of funeral services under the arrangement or under section 212.1 or subsec tion 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) in respect of funeral services supplied under the arrangement for consump tion or use in that province.
Exclusive products held on implementa- tion	361. (1) Where before the implementation date for a participating province, when an approval of the Minister for the application of section 178.3 to a direct seller is in effect, the direct seller has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of a direct seller who is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect and the independent sales contractor holds, at the beginning of that day, the exclusive product for sale in a participat ing province, for the purpose of applying subsection 165(2) or 220.05(1), as the case may require, the direct seller is deemed to have made and the independent sales contrac tor is deemed to have received, on that implementation date, a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.3(1).
Exclusive products held on implementa- tion	(2) Where before the implementation date for a participating province, when an approval of the Minister for the application of section 178.4 to a distributor of a direct seller is in effect, the distributor has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of a direct seller who is not a distributor in respect of whom an approval granted under subsec tion 178.2(4) on application made jointly with the direct seller is in effect and the indepen dent sales contractor holds, at the beginning of that day, the exclusive product for sale in a participating province, for the purpose of applying subsection 165(2) or 220.05(1), as the case may require, the distributor is deemed to have made and the independent sales contractor is deemed to have received, on that implementation date, a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.4(1).
Definitions	(3) In this section, ``direct seller'', ``distrib utor'', ``exclusive product'' and ``independent sales contractor'' have the meanings assigned by section 178.1.
	Subdivision d
	Special cases
Definitions	362. (1) In this section, ``Advisory Group'', ``Crossing'' and ``Developer'' have the mean ings assigned by section 1 of the Northumber land Strait Crossing Act, S.N.B. 1993, c. N-8.1.
Construction of Northumber- land Strait Crossing	(2) No tax is payable under subsection 165(2) in respect of a supply of property or services that are acquired by the recipient of the supply for consumption or use exclusively in the construction of the Crossing.
Exemption certificate	(3) Subsection (2) does not apply to a supply made to a recipient who is not the Developer unless the recipient provides the supplier with a valid exemption certificate in respect of the supply issued by the Advisory Group.
Instalment base following implementa- tion	363. (1) Notwithstanding subsection 237(2), where a registrant (other than a selected listed financial institution) to whom subsection 237(1) applies is resident in a participating province and a reporting period of the registrant begins during the calendar year in which the province becomes a partici pating province, for the purpose of determin ing the amount of instalment payments under subsection 237(1), if any, that become payable after the first fiscal quarter of the registrant beginning on or after the implementation date for the province, the registrant's instalment base for the reporting period is equal to the lesser of
	(a) the amount determined under paragraph 237(2)(a); and
	(b) 200% of the amount determined under paragraph 237(2)(b).
Selected listed financial institutions - instalments in transitional year	(2) Notwithstanding subsection 237(1), where a particular reporting period of a selected listed financial institution ends in a particular fiscal year ending in a taxation year of the financial institution and the particular fiscal year begins before April 1, 1997 and ends on or after that day, the instalment to be paid under that subsection within one month after the end of each fiscal quarter ending on or after that day in the particular reporting period is the amount determined under which ever of the following paragraphs the financial institution has elected in prescribed form to determine the instalments for those fiscal quarters under:
	(a) the lesser of
	(i) 1/4 of the amount determined under paragraph 237(2)(a), and
	(ii) the amount determined by the formu la
	A + (B/4)
	where
	A is the total of all amounts, each of which is determined, for a participat ing province, by the formula
	C x D x (E/F) x G/365 H
	where
	C is the financial institution's instal ment base for the particular report ing period determined under para graph 237(2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1,
	D is the lesser of the financial institu tion's percentage for the participat ing province for the taxation year and the financial institution's per centage for the participating prov ince for the immediately preceding taxation year, each determined in accordance with the prescribed method that applies to that financial institution,
	E is the tax rate for the participating province,
	F is 7%,
	G is the number of days in the particu lar reporting period after March 1997, and
	H is the number of fiscal quarters ending on or after April 1, 1997 and in the particular reporting period, and
	B is the financial institution's instalment base for the particular reporting period determined under paragraph 237(2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1;
	(b) the amount determined by the formula
	A + B/4
	where
	A is the total of all amounts, each of which is determined, for a participating prov ince, by the formula
	C x D x (E/F) x G/365 H
	where
	C is the amount determined under para graph 237(2)(b),
	D is the financial institution's percentage for the participating province for the immediately preceding taxation year, determined in accordance with the prescribed method that applies to that financial institution,
	E is the tax rate for the participating province,
	F is 7%,
	G is the number of days in the particular reporting period after March 1997, and
	H is the number of fiscal quarters ending on or after April 1, 1997 and in the particular reporting period, and
	B is the amount determined under para graph 237(2)(b);
	(c) the lesser of
	(i) 1/4 of the amount determined under paragraph 237(2)(a), and
	(ii) the amount determined by the formu la
	(A + B) + C/4
	where
	A is the total of all amounts, each of which is determined, for a participat ing province, by the formula
	[(D - E) x F x (G/H) x I/365 ] - K J
	where
	D is the total of
	(A) all tax that became payable under any of subsection 165(1) and sections 212 and 218 by the financial institution during the particular reporting period or that was paid by the financial institu tion during the particular report ing period without having be come payable, and
	(B) all tax under subsection 165(1) that would have become payable by the financial institu tion during the particular report ing period but for an election made under section 150,
	E is the total of
	(A) all input tax credits of the financial institution for the partic ular reporting period or preceding reporting periods of the financial institution claimed by the finan cial institution in the return under this Division filed by the financial institution for the particular re porting period, and
	(B) all amounts that would have been input tax credits of the financial institution for the partic ular reporting period of the finan cial institution if the financial institution had not made an elec tion under section 150,
	F is the lesser of the financial institu tion's percentage for the participat ing province for the taxation year and the financial institution's per centage for the participating prov ince for the immediately preceding taxation year, each determined in accordance with the prescribed method that applies to that financial institution,
	G is the tax rate for the participating province,
	H is 7%,
	I is the number of days in the particu lar reporting period after March 1997,
	J is the number of fiscal quarters ending on or after April 1, 1997 and in the particular reporting period, and
	K is the total of all tax under subsec tion 165(2) in respect of supplies made in the participating province to the financial institution or under section 212.1 in respect of goods imported by the financial institution for use in the participating province that became payable by the financial institution during the particular re porting period or that was paid by the financial institution during the particular reporting period without having become payable,
	B is the total of all amounts that became collectible and all other amounts col lected by the financial institution in the fiscal quarter as or on account of tax under subsection 165(2), and
	C is the financial institution's instalment base for the particular reporting period determined under paragraph 237(2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1; or
	(d) the amount determined by the formula
	(A + B) + C/4
	where
	A is the total of all amounts, each of which is determined, for a participating prov ince, by the formula
	[(D - E) x F x (G/H) x (I/365)] - K J
	where
	D is the total of all amounts each of which is
	(i) tax that became payable under any of subsection 165(1) and sec tions 212 and 218 by the financial institution during a reporting period (in this paragraph referred to as the ``earlier reporting period'') of the financial institution ending in the twelve-month period immediately preceding the particular reporting period or that was paid by the financial institution during the earli er reporting period without having become payable, and
	(ii) tax under subsection 165(1) that would have become payable by the financial institution during the earli er reporting period but for an elec tion made under section 150,
	E is the total of
	(i) all input tax credits of the finan cial institution for the earlier report ing period or preceding reporting periods of the financial institution claimed by the financial institution in the return under Division V filed by the financial institution for the earlier reporting period, and
	(ii) all amounts that would have been input tax credits of the finan cial institution for the earlier report ing period if the financial institution had not made an election under section 150,
	F is the financial institution's percentage for the participating province for the immediately preceding taxation year, determined in accordance with the prescribed method that applies to that financial institution,
	G is the tax rate for the participating province,
	H is 7%,
	I is the number of days in the particular reporting period after March 1997,