(A) the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within two years after the beginning of the per son's reporting period in which the supplier charges that tax to the person, and

        (B) the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within four years after the end of the particular reporting period,

      (ii) if the input tax credit was claimed in a return under this Division filed, on or before the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within two years after the beginning of the particular reporting period, by another person who was not entitled to claim it and the person has paid the tax payable in respect of the acquisition or importation of the property or service, the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within four years after the end of the particular reporting period, and

      (iii) in any other case, the day on or before which the return under this Divi sion is required to be filed for the last reporting period of the person that ends within two years after the beginning of the particular reporting period;

    (b) where the person is not a specified person during the particular reporting peri od, the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within four years after the end of the particular reporting period; or

    (c) where

      (i) the input tax credit is in respect of property or a service supplied to the person by a supplier who did not, before the end of the last reporting period of the person that ends within four years after the end of the particular reporting period, charge the tax in respect of the supply that became payable during the particular reporting period and the supplier dis closes in writing to the person that the Minister has assessed the supplier for that tax, and

      (ii) the person pays that tax after the end of that last reporting period and before the input tax credit is claimed by the person,

    the day on or before which the return under this Division is required to be filed for the reporting period of the person in which the person pays that tax.

Meaning of ``specified person''

(4.1) For the purposes of subsection (4), a person is a ``specified person'' during a reporting period of the person if

    (a) the person is a listed financial institution during the reporting period, or

    (b) the person's threshold amounts, deter mined in accordance with subsection 249(1), exceed $6 million for both the person's fiscal year that includes the report ing period and the person's previous fiscal year,

unless, in the case of a person who is not a listed financial institution during the reporting period, the person is a charity during the re porting period or all or substantially all of the supplies made by the person during the report ing period (other than supplies of financial services) are taxable supplies.

(2) Subsections 225(3) and (3.1) of the Act, as enacted by subsection (1), are deemed to have come into force on April 23, 1996.

(3) Subsection 225(4) of the Act, as enacted by subsection (1), applies to

    (a) input tax credits for reporting periods ending after June 1996;

    (b) input tax credits for reporting periods ending before July 1996, other than input tax credits that are claimed in a return under Division V of Part IX of the Act filed on or before June 30, 1998; and

    (c) input tax credits for reporting periods ending before July 1996 that are claimed in a return under that Division in the circumstances described in paragraph 225(4)(c) of the Act, as enacted by subsec tion (1).

(4) Subsection 225(4.1) of the Act, as enacted by subsection (1), is deemed to have come into force on July 1, 1996 and the reference to a ``charity'' in that subsection shall be interpreted as if the definitions ``charity'' and ``public institution'' in sub section 123(1) of the Act, as enacted by subsections 1(1) and (12) respectively, came into force on that day.

45. (1) The Act is amended by adding the following after section 225:

Meaning of ``specified supply''

225.1 (1) In this section, ``specified sup ply'' means a taxable supply other than

    (a) a supply by way of sale of real property or capital property;

    (b) a supply deemed under section 175.1 or 181.1 or subsection 183(5) or (6) to have been made; and

    (c) a supply to which subsection 172(2) or 173(1) applies.

Net tax

(2) Subject to subsection (7), the net tax for a particular reporting period of a charity that is a registrant is equal to the positive or negative amount determined by the formula 

                   A - B

where

A is the total of

      (a) 60% of the total of all amounts that became collectible and all other amounts collected by the charity in the particular reporting period as or on account of tax in respect of specified supplies made by the charity,

      (b) the total of all amounts that became collectible and all other amounts col lected by the charity in the particular reporting period as or on account of tax in respect of

        (i) supplies by way of sale of capital property or real property made by the charity,

        (ii) supplies by the charity to which subsection 172(2) or 173(1) applies, and

        (iii) supplies made by the charity acting as agent for another person and in respect of which the charity has made an election under subsection 177(1.1),

      (c) all amounts in respect of supplies of real property or capital property made by way of sale to the charity that are required under subsection 231(3) or 232(3) to be added in determining the net tax for the particular reporting period, and

      (d) the amount required under subsection 238.1(4) to be added in determining the net tax for the particular reporting period; and

B is the total of

      (a) all input tax credits of the charity for the particular reporting period and pre ceding reporting periods in respect of

        (i) real property acquired by the char ity by way of purchase,

        (ii) personal property imported or acquired by way of purchase by the charity for use as capital property, and

        (iii) improvements to real property or capital property of the charity

      that are claimed in the return under this Division filed for the particular reporting period,

      (b) 60% of the total of all amounts in respect of specified supplies that may be deducted by the charity under subsection 232(3) or 234(2) in determining the net tax for the particular reporting period and are claimed in the return under this Division filed for that reporting period,

      (c) the total of all amounts in respect of supplies of real property or capital prop erty made by way of sale by the charity that may be deducted by the charity under subsection 231(1) or 232(3) or section 234 in determining the net tax for the particular reporting period and are claimed in the return under this Division filed for that reporting period, and

      (d) the total of all amounts each of which is an input tax credit (other than an input tax credit referred to in paragraph (a)) of the charity, for a preceding reporting period in respect of which this subsection did not apply for the purpose of determin ing the net tax of the charity, that the charity was entitled to include in deter mining its net tax for that preceding reporting period and that is claimed in the return under this Division filed for the particular reporting period.

Restriction

(3) An amount shall not be included in determining a total under the description of A in subsection (2) for a reporting period of a charity to the extent that that amount was included in that total for a preceding reporting period of the charity.

Restriction

(4) An amount shall not be included in the total for B in the formula set out in subsection (2) for a particular reporting period of a charity to the extent that the amount was claimed or included as an input tax credit or deduction in determining the net tax for a preceding reporting period of the charity unless

    (a) the charity was not entitled to claim the amount in determining the net tax for that preceding period only because the charity did not satisfy the requirements of subsec tion 169(4) in respect of the amount before the return for that preceding period was filed; and

    (b) where the charity is claiming the amount in a return for the particular reporting period and the Minister has not disallowed the amount as an input tax credit in assessing the net tax of the charity for that preceding reporting period,

      (i) the charity reports in writing to the Minister, at or before the time the return for the particular reporting period is filed, that the charity made an error in claiming that amount in determining the net tax of the charity for that preceding period, and

      (ii) where the charity does not report the error to the Minister at least three months before the time limited by subsection 298(1) for assessing the net tax of the charity for that preceding period expires, the charity pays, at or before the time the return for the particular reporting period is filed, the amount and any applicable penalty and interest to the Receiver General.

Restriction

(4.1) An amount shall not be included in the total for B in the formula set out in subsection (2) for a reporting period of a charity to the extent that, before the end of the period, the amount became refundable to the charity under this or any other Act of Parliament or was remitted to the charity under the Finan cial Administration Act or the Customs Tariff.

Application

(5) Sections 231 to 236 do not apply for the purpose of determining the net tax of a charity in accordance with subsection (2) except as otherwise provided in this section.

Election

(6) Where a charity that makes supplies outside Canada, or zero-rated supplies, in the ordinary course of a business or all or substantially all of whose supplies are taxable supplies elects not to determine its net tax in accordance with subsection (2), that subsec tion does not apply in respect of any reporting period of the charity during which the election is in effect.

Form and content of election

(7) An election under subsection (6) by a charity shall

    (a) be filed in prescribed manner with the Minister in prescribed form containing prescribed information;

    (b) set out the day the election is to become effective, which day shall be the first day of a reporting period of the charity;

    (c) remain in effect until a revocation of the election becomes effective; and

    (d) be filed

      (i) where the first reporting period of the charity in which the election is in effect is a fiscal year of the charity, on or before the first day of the second fiscal quarter of that year or such later day as the Minister may determine on application of the charity, and

      (ii) in any other case, on or before the day on or before which the return of the charity is required to be filed under this Division for the first reporting period of the charity in which the election is in effect or on such later day as the Minister may determine on application of the charity.

Revocation

(8) An election under subsection (6) by a charity may be revoked, effective on the first day of a reporting period of the charity, provided that that day is not earlier than one year after the election became effective and a notice of revocation of the election in pre scribed form containing prescribed informa tion is filed in prescribed manner with the Minister on or before the day on or before which the return under this Division is re quired to be filed for the last reporting period of the charity in which the election is in effect.

Restriction on input tax credits

(9) Where an election under subsection (6) by a charity becomes effective on a day, an amount

    (a) that is an input tax credit of the charity, or

    (b) that is in respect of a specified supply and may be deducted by the charity under subsection 232(3) or 234(2) in determining the net tax of the charity,

for a reporting period ending before that day and that is not claimed in a return for any re porting period ending before that day shall not be claimed by the charity in a return for a re porting period ending after that day except to the extent that the charity was entitled to in clude the amount in the total determined for B in the formula in subsection (2) for any report ing period ending before that day.

Streamlined input tax credit calculation

(10) Where a charity is a prescribed person for the purposes of subsection 259(12) during a reporting period of the charity, any input tax credit that the charity is entitled to claim in a return for that reporting period may be determined in accordance with Part V.1 of the Streamlined Accounting (GST) Regulations as if the charity had made a valid election under section 227 that is in effect at all times while the charity is a prescribed person.

(2) Subsection (1) applies for the purpose of determining the net tax of a charity for reporting periods beginning after 1996.

1990, c. 45, s. 12(1)

46. (1) Subsection 227(1) of the Act is replaced by the following:

Election for streamlined accounting

227. (1) A registrant (other than a charity) who is a prescribed registrant or a member of a prescribed class of registrants may elect to determine the net tax of the registrant for a reporting period during which the election is in effect by a prescribed method.

(2) Section 227 of the Act is amended by adding the following after subsection (5):

Restriction on input tax credits

(6) Sections 231 to 236 do not apply for the purpose of determining the net tax of a registrant for a reporting period during which an election made by the registrant under subsection (1) is in effect, except as otherwise provided in the Streamlined Accounting (GST) Regulations.

(3) Subsection (1) applies for the purpose of determining the net tax for any reporting period of a charity beginning after 1996 and any election by the charity under subsection 227(1) of the Act that would, but for this subsection, have been in effect at the beginning of the first reporting period of the charity beginning after 1996 is deemed to have ceased to have effect immediately before that reporting period.

(4) Subsection (2) is deemed to have come into force on December 17, 1990.

1993, c. 27, s. 91(2)

47. (1) Subsection 228(4) of the Act is replaced by the following:

Self-
assessment on acquisition of real property

(4) Where tax under Division II is payable by a person in respect of a supply of real property and the supplier is not required to collect the tax and is not deemed to have collected the tax,

    (a) where the person is a registrant and acquired the property for use or supply primarily in the course of commercial activities of the person, the person shall, on or before the day on or before which the person's return for the reporting period in which the tax became payable is required to be filed, pay the tax to the Receiver General and report the tax in that return ; and

    (b) in any other case, the person shall , on or before the last day of the month following the calendar month in which the tax became payable, pay the tax to the Receiver Gener al and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed in formation.

1990, c. 45, s. 12(1)

(2) Subsections 228(6) and (7) of the Act are replaced by the following:

Set-off of refunds or rebates

(6) Where at any time a person files a particular return under this Part in which the person reports an amount (in this subsection referred to as the ``remittance amount'') that is required to be remitted under subsection (2) or paid under subsection (4) or Division IV by the person and the person claims a refund or rebate payable to the person at that time under this Part (other than Division III ) in the particular return or in another return, or in an application, filed under this Part with the particular return, the person is deemed to have remitted at that time on account of the person's remittance amount, and the Minister is deemed to have paid at that time on account of the refund or rebate, an amount equal to the lesser of the remittance amount and the amount of the refund or rebate.

Refunds and rebates of another person

(7) A person may, in prescribed circum stances and subject to prescribed conditions and rules, reduce or offset the tax that is required to be remitted under subsection (2) or paid under subsection (4) or Division IV by that person at any time by the amount of any refund or rebate to which another person may at that time be entitled under this Part .

(3) Subsection (1) is deemed to have come into force on April 23, 1996 except that, before January 1, 1997, the reference in paragraph 228(4)(a) of the Act, as enacted by subsection (1), to ``report the tax in that return'' shall be read as a reference to ``file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information''.

(4) Subsection (2) is deemed to have come into force on April 23, 1996.

1990, c. 45, s. 12(1)

48. (1) Subsection 230(1) of the Act is replaced by the following:

Refund of payment

230. (1) Where a person has paid instal ments for a reporting period of the person, or any other amounts on account of the person's net tax for the period, that exceed the amount of the net tax remittable by the person for the period and the person claims a refund of the excess in a return for the period filed under this Division by the person , the Minister shall refund the excess to the person with all due dispatch after the return is filed.