| 1993, c. 27,
s. 47(1)
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(2) Paragraph 183(5)(a) of the Act is
replaced by the following:
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(a) the creditor is deemed to have received,
immediately after the particular time, a
particular supply by way of sale of the
property; and
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| 1993, c. 27,
s. 47(1)
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(3) Paragraph 183(6)(a) of the Act is
replaced by the following:
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(a) the creditor is deemed
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(i) to have received, immediately after
the particular time, a supply by way of
sale of the property, and
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(A ) the property was, at the time it was
seized or repossessed, specified tangi
ble personal property having a fair
market value in excess of the pre
scribed amount in respect of the prop
erty, and
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(B) tax would not have been payable
had the property been purchased in
Canada from the person at the time it
was seized or repossessed,
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to have paid, immediately after the
particular time, tax in respect of that
supply equal to the tax fraction of the fair
market value of the property at the time
it was seized or repossessed; and
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| 1993, c. 27,
s. 47(3)
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(4) The portion of subsection 183(7) of the
Act before paragraph (a) is replaced by the
following:
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| Sale of
personal
property
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(7) For the purposes of this Part, where a
creditor who has seized or repossessed person
al property from a person in circumstances in
which subsection (1) applies makes at any
time a particular taxable supply of the proper
ty by way of sale (other than a supply deemed
under this Part to have been made), the
creditor was not deemed under subsection (5),
(6) or (8) to have received a supply of the
property at an earlier time and no tax would
have been payable by the creditor had the
creditor purchased the property from the
person in Canada at the time it was seized or
repossessed, except where
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| 1993, c. 27,
s. 47(3)
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(5) Paragraph 183(7)(b) of the Act is
replaced by the following:
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(b) the property was seized or repossessed
by the creditor before 1994 or was, at the
time of the seizure or repossession, speci
fied tangible personal property having a fair
market value in excess of the prescribed
amount in respect of the property,
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| 1993, c. 27,
s. 47(3)
|
(6) Paragraph 183(8)(b) of the Act is
replaced by the following:
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(b) the property was seized or repossessed
by the creditor before 1994 or was, at the
time it was seized or repossessed, specified
tangible personal property having a fair
market value in excess of the prescribed
amount in respect of the property,
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| 1993, c. 27,
s. 47(6)
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(7) The portion of subsection 183(10) of
the Act before paragraph (b) is replaced by
the following:
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| Debt security,
etc.
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(10) For the purposes of this Part , where
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(a) for the purposes of satisfying in whole or
in part a debt or obligation owing by a
person, a creditor exercises a right under an
Act of Parliament or the legislature of a
province or an agreement relating to a debt
security to cause the supply of property,
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(8) Section 183 of the Act is amended by
adding the following after subsection (10):
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| Redemption
of property
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(10.1) For the purposes of this Part, where
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(a) for the purposes of satisfying in whole or
in part a debt or obligation owing by a
person (in this subsection referred to as the
``debtor''), a creditor exercises a right
under an Act of Parliament or the legisla
ture of a province or an agreement relating
to a debt security to cause the supply of
property (in this subsection referred to as
the ``first supply''),
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(b) the recipient of the first supply has paid
an amount (in this subsection referred to as
the ``tax amount'') as or on account of tax
with respect to that supply, and
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(c) under the Act or the agreement, the
debtor has a right to redeem the property
and the debtor exercises that right,
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the following rules apply:
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(d) the redemption of the property is
deemed to be a supply of the property made
by way of sale by the recipient of the first
supply to the debtor for no consideration,
and
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(e) where the property was redeemed from
the recipient of the first supply and an
amount has been reimbursed by the debtor
to the creditor or that recipient on account
of the tax amount,
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(i) except for the purposes of this section,
the debtor is deemed not to have supplied
the property to the creditor under subsec
tion (1) or to have received a supply of the
property at the time of the redemption,
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(ii) the debtor is deemed, for the purposes
of section 261, to have paid tax in error at
the time of the redemption equal to the
amount so reimbursed,
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(iii) where the tax amount has been
included in determining a rebate or an
input tax credit claimed by that recipient
in an application or return, the amount of
the rebate or the input tax credit shall be
added in determining the net tax of that
recipient for the reporting period in
which the property was redeemed, and
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(iv) the tax amount shall not be included
in determining a rebate or an input tax
credit claimed by that recipient in an
application or a return filed after the
redemption of the property.
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(9) Subsection (1) applies to supplies
made after 1996.
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(10) Subsections (2) and (3) apply after
April 23, 1996.
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(11) Subsections (4) to (6) apply to prop
erty that is supplied by a creditor after
April 23, 1996.
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(12) Subsection (7) applies to
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(a) any supply made after April 23, 1996;
and
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(b) any supply made on or before that day
unless
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(i) no amount was, on or before that
day, charged or collected as or on
account of tax under Part IX of the Act
in respect of the supply, or
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(ii) an amount was charged or collected
as or on account of tax under that Part
in respect of the supply and, before that
day, the Minister of National Revenue
received an application under subsec
tion 261(1) of the Act for a rebate in
respect of that amount (other than an
application deemed under paragraph
296(5)(a) of the Act to have been filed
as a result of an assessment made after
that day).
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(13) Subsection (8) applies to redemp
tions of property occurring after April 23,
1996.
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| 1993, c. 27,
s. 48(2)
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34. (1) Paragraph 184(1)(d) of the Act is
replaced by the following:
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(d) in the case of a supply of real property
included in section 9 of Part I of Schedule
V, in section 1 of Part V.1 of that Schedule
or in section 25 of Part VI of that Schedule ,
for the purposes of sections 193 and 257, the
supply is deemed to be a taxable supply and
the tax payable in respect of the supply is
deemed to be equal to tax calculated on the
fair market value of the property at that
time.
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| 1993, c. 27,
s. 48(1)
|
(2) Paragraph 184(4)(a) of the Act is
replaced by the following:
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(a) the insurer is deemed to have received,
immediately after the particular time, a
particular supply by way of sale of the
property; and
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| 1993, c. 27,
s. 48(1)
|
(3) Paragraph 184(5)(a) of the Act is
replaced by the following:
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(a) the insurer is deemed
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(i) to have received, immediately after
the particular time, a supply by way of
sale of the property, and
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(A ) the property was, at the time it was
transferred, specified tangible person
al property having a fair market value
in excess of the prescribed amount in
respect of the property, and
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(B) tax would not have been payable
had the property been purchased in
Canada from the person at the time it
was transferred,
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to have paid, immediately after the
particular time, tax in respect of that
supply equal to the tax fraction of the fair
market value of the property at the time
it was transferred; and
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| 1993, c. 27,
s. 48(3)
|
(4) The portion of subsection 184(6) of the
Act before paragraph (a) is replaced by the
following:
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| Sale of
personal
property
|
(6) For the purposes of this Part, where an
insurer to whom personal property has been
transferred from a person in circumstances in
which subsection (1) applies makes at any
time a particular taxable supply of the proper
ty by way of sale (other than a supply deemed
under this Part to have been made), the insurer
was not deemed under subsection (4), (5) or
(7) to have received a supply of the property
at an earlier time and no tax would have been
payable by the insurer had the insurer pur
chased the property from the person in Canada
at the time it was transferred, except where
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| 1993, c. 27,
s. 48(3)
|
(5) Paragraph 184(6)(b) of the Act is
replaced by the following:
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(b) the property was transferred to the
insurer before 1994 or was, at the time of the
transfer, specified tangible personal proper
ty having a fair market value in excess of the
prescribed amount in respect of the proper
ty,
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| 1993, c. 27,
s. 48(3)
|
(6) Paragraph 184(7)(b) of the Act is
replaced by the following:
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(b) the property was transferred to the
insurer before 1994 or was, at the time it
was transferred, specified tangible personal
property having a fair market value in
excess of the prescribed amount in respect
of the property,
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(7) Subsection (1) applies to supplies
made after 1996.
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(8) Subsections (2) and (3) apply after
April 23, 1996.
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(9) Subsections (4) to (6) apply to proper
ty that is supplied by an insurer after April
23, 1996.
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| 1994, c. 9,
s. 11(1)
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35. (1) Subsection 185(1) of the Act 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 or imported by a registrant
who is engaged in commercial activities
becomes 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 or
imported for consumption, use or supply in the
course of making supplies of financial ser
vices that relate to commercial activities of
the registrant,
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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
acquired or imported for consumption, use
or supply in the course of those commercial
activities except to the extent that the
property or service was acquired or im
ported 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 acquired or im
ported for consumption, use or supply in the
course of those commercial activities.
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(2) Subsection (1) applies to property and
services acquired or imported in taxation
years of registrants beginning after April
23, 1996.
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36. (1) Subparagraph 190(1)(f)(ii) of the
Act is replaced by the following:
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(ii) a personal trust that acquires the
property at that time to hold or use
exclusively as a place of residence of an
individual who is a beneficiary of the
trust,
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(2) Subsection (1) applies after April 23,
1996.
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|
37. (1) Section 191 of the Act is amended
by adding the following after subsection (6):
|
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| Exception for
communal
organizations
|
(6.1) Subsections (1) to (4) do not apply to
a builder of a residential complex or an
addition to a residential complex where
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(a) the builder is a community, society or
body of individuals to which section 143 of
the Income Tax Act applies; and
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(b) the construction or substantial renova
tion of the complex or addition is carried out
exclusively for the purpose of providing a
place of residence for members of the
community, society or body.
|
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| 1990, c. 45,
s. 12(1)
|
(2) The portion of subsection 191(7) of the
Act after paragraph (a) is replaced by the
following:
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(b) the construction or substantial renova
tion of the complex or addition is carried
out, or the complex is acquired, for the
purpose of providing a place of residence or
lodging for an individual at a location
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(i) at which the individual is required to
be in the performance of the individual's
duties as
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(A) an employee of the registrant,
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(B) a contractor, or an employee of the
contractor, engaged by the registrant to
render services to the registrant at that
location, or
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(C) a subcontractor, or an employee of
the subcontractor, engaged by a con
tractor referred to in clause (B) to
render services at that location that are
acquired by the contractor for the
purpose of supplying services to the
registrant, and
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(ii) at which, because of its remoteness
from any established community, the
individual could not reasonably be ex
pected to establish and maintain a self-
contained domestic establishment, and
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(c) the registrant makes, under this subsec
tion, an election in prescribed form contain
ing prescribed information in respect of the
complex or addition,
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until the complex is supplied by way of sale,
or is supplied by way of lease, licence or simi
lar arrangement primarily to persons who are
not employees, contractors or subcontractors
referred to in subparagraph (b)(i) who are ac
quiring the complex or residential units there
in in the circumstances described in that sub
paragraph , the supply of the complex or a resi
dential unit in the complex as a place of resi
dence or lodging is deemed not be a supply
and any occupation of the complex or unit as
a place of residence or lodging is deemed not
to be occupation as a place of residence or
lodging.
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(3) Subsections (1) and (2) are deemed to
have come into force on December 17, 1990.
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38. (1) The Act is amended by adding the
following after section 191:
|
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| Definitions
|
191.1 (1) The definitions in this subsection
apply in this section.
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``government
funding''
« subvention »
|
``government funding'', in respect of a resi
dential complex, means an amount of
money (including a forgivable loan but not
including any other loan or a refund or re
bate of, or credit in respect of, taxes, duties
or fees imposed under any statute) paid or
payable by
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(b) an organization that received the
amount from a grantor or another orga
nization that received the amount from a
grantor,
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