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

(2) The portion of subsection 230(2) of the Act before paragraph (a) is replaced by the following:

Restriction

(2) An amount paid on account of net tax for a reporting period of a person shall not be refunded to the person under subsection (1) until such time as

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

(3) Subsection 230(3) of the Act is re placed by the following:

Interest on refund

(3) Where a refund of an amount that was paid on account of net tax for a reporting period of a person is paid to the person under subsection (1), interest at the prescribed rate shall be paid to the person on the refund for the period beginning on the day that is twenty-one days after the later of

    (a) the day the return for the reporting period is filed with the Minister, and

    (b) the day the requirement under subsec tion (2) is fulfilled,

and ending on the day the refund is paid.

(4) Subsections (1) to (3) are deemed to have come into force on April 23, 1996 and apply to any amount paid by the Minister of National Revenue on or after that day.

1993, c. 27, s. 92(1)

49. (1) Paragraph 230.2(2)(d) of the Act is replaced by the following:

    (d) 25% of the total of all amounts that became collectible, or were collected with out having become collectible, by the registrant in the particular period and in 1994 or 1995 as or on account of tax under Division II in respect of specified property.

(2) Subsection (1) is deemed to have come into force on January 1, 1995.

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

50. (1) Section 231 of the Act is replaced by the following:

Bad debts

231. (1) Where a person has made a taxable supply (other than a zero-rated supply) for consideration to a recipient with whom the person was dealing at arm's length, to the extent that it is established that the consider ation and tax payable in respect of the supply have become in whole or in part a bad debt, the person may, in determining the net tax for the person's reporting period in which the bad debt is written off in the person's books of account or for a subsequent reporting period, deduct the amount determined by the formula 

                 A x B/C

where

A is the tax payable in respect of the supply,

B is the total of the consideration, tax and any amount that can reasonably be attributed to a tax imposed under an Act of the legisla ture of a province that is a prescribed tax for the purposes of section 154 (referred to in this section as ``applicable provincial tax'') remaining unpaid in respect of the supply that was written off as a bad debt, and

C is the total of the consideration, tax and ap plicable provincial tax payable in respect of the supply,

provided the person reports the tax collectible in respect of the supply in the person's return under this Division for the reporting period in which the tax became collectible and remits all net tax, if any, remittable as reported in that return.

Bad debts

(2) Where a financial institution that is a member of a closely related group or of a prescribed group has at any time purchased an account receivable at face value and on a non-recourse basis from another person that was at that time a member of the group, to the extent that it is established that the account receivable has become in whole or in part a bad debt, the institution may, in determining its net tax for its reporting period in which the bad debt is written off in its books of account or for a subsequent reporting period, deduct an amount to the extent that the other person could have so deducted an amount under subsection (1) if that other person had not sold the account receivable and had written off the bad debt in that other person's books of account.

Recovery of bad debt

(3) Where a person recovers all or part of a bad debt in respect of which the person has made a deduction under subsection (1) or (2), the person shall, in determining the net tax for the reporting period of the person in which the bad debt or part thereof is recovered, add the amount determined by the formula 

                   A x B/C

where

A is the amount of the bad debt recovered by the person;

B is the tax payable in respect of the supply to which the bad debt relates; and

C is the total of the consideration, tax and ap plicable provincial tax payable in respect of the supply.

Limitation

(4) A person may not claim a deduction under subsection (1) or (2) in respect of an amount that the person has, during a particular reporting period of the person, written off in its books of account as a bad debt unless the deduction is claimed in a return under this Division filed by the person within two years after the day on or before which the return under this Division for the particular reporting period is required to be filed.

(2) Subsection (1) applies for the purpose of determining the net tax for any reporting period for which a return is filed after April 23, 1996, except that

    (a) in relation to amounts written off as bad debts on or before that day, subsec tion 231(2) of the Act, as enacted by subsection (1), does not apply; and

    (b) in relation to amounts written off as bad debts before July 1996, the reference in subsection 231(4) of the Act, as enacted by subsection (1), to ``two years'' shall be read as a reference to ``four years''.

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

51. (1) The portion of subsection 232(1) of the Act before paragraph (a) is replaced by the following:

Refund or adjustment of tax

232. (1) Where a particular person has charged to, or collected from, another person an amount as or on account of tax under Division II in excess of the tax under that Division that was collectible by the particular person from the other person, the particular person may, within two years after the day the amount was so charged or collected,

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

(2) The portion of subsection 232(2) of the Act before paragraph (a) is replaced by the following:

Adjustment

(2) Where a particular person has charged to, or collected from, another person tax under Division II calculated on the consideration or a part thereof for a supply and, for any reason, the consideration or part is subsequently reduced, the particular person may, within two years after the day the consideration was so reduced,

(3) Subsection (1) applies

    (a) to amounts charged or collected as tax under Division II of Part IX of the Act after June 1996; and

    (b) to amounts charged or collected as tax under that Division before July 1996, other than amounts that are adjusted, refunded or credited on or before June 30, 1998 in accordance with subsection 232(1) of the Act as it read on June 30, 1996.

(4) Subsection (2) applies to reductions in consideration after June 1996.

1993, c. 27, s. 95(1)

52. (1) Subsection 234(1) of the Act is replaced by the following:

Deduction for rebate

234. (1) Where, in the circumstances de scribed in subsection 252.41(2) , 254(4) or 254.1(4), a registrant pays to, or credits in favour of, a person an amount on account of a rebate and transmits the application of the person for the rebate to the Minister in accordance with subsection 252.41(2) , 254(5) or 254.1(5), as the case requires , the registrant may deduct the amount in determining the net tax of the registrant for the reporting period in which the amount is paid or credited.

(2) Subsection (1) applies after April 23, 1996.

1994, c. 9, s. 14(1)

53. (1) Subsection 236(2) of the Act is replaced by the following:

Exception

(2) Subsection (1) does not apply to a charity or a public institution .

(2) Subsection (1) applies to supplies of food, beverages or entertainment received, and allowances paid, by a registrant after 1996.

1993, c. 27, s. 100(1)

54. (1) Paragraph 240(3)(b) of the Act is replaced by the following:

    (b) is a non-resident person who in the ordinary course of carrying on business outside Canada

      (i ) regularly solicits orders for the supply by the person of tangible personal prop erty for export to, or delivery in, Canada, or

      (ii) has entered into an agreement for the supply by the person of

        (A) services to be performed in Cana da, or

        (B) intangible personal property to be used in Canada or that relates to

(I) real property situated in Canada,

(II) tangible personal property ordi narily situated in Canada, or

(III) services to be performed in Canada;

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

(2) Subsection 240(6) of the Act is re placed by the following:

Security

(6) Every person who

    (a) is not resident in Canada or would not, but for subsection 132(2), be resident in Canada,

    (b) does not have a permanent establish ment in Canada or would not, but for paragraph (b) of the definition ``permanent establishment'' in subsection 123(1), have such an establishment, and

    (c) applies or is required to be registered for the purposes of this Part

shall give and thereafter maintain security, in an amount and a form satisfactory to the Min ister, that the person will pay or remit all amounts payable or remittable by the person under this Part.

Failure to comply

(7) Where, at any time, a person referred to in subsection (6) fails to give or maintain, as required under that subsection, security in an amount satisfactory to the Minister, the Minis ter may retain as security, out of any amount that may be or may become payable under this Part to the person, an amount not exceeding the amount by which

    (a) the amount of security that would, at that time, be satisfactory to the Minister if it were given by the person in accordance with that subsection

exceeds

    (b) the amount of security, if any, given and maintained by the person in accordance with that subsection,

and the amount so retained is deemed

    (c) to have been paid, at that time, by the Minister to the person, and

    (d) to have been given, immediately after that time, by the person as security in accordance with subsection (6).

(3) Subsection (1) applies after April 23, 1996.

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

55. (1) Subsection 245(1) of the Act is replaced by the following:

Reporting period of non-
registrant

245. (1) Subject to section 251, the report ing period of a person who is not a registrant is a calendar month.

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

(2) The portion of subsection 245(2) of the Act before paragraph (a) is replaced by the following:

Reporting period of registrant

(2) Subject to subsection 248(3) and sec tions 251 and 265 to 267 , the reporting period of a registrant at a particular time in a fiscal year of the registrant is

1994, c. 9, s. 17(1)

(3) Paragraph 245(2)(a) of the Act is amended by striking out the word ``or'' at the end of subparagraph (i) and by replac ing subparagraph (ii) with the following:

      (ii) the registrant has not made an elec tion under section 246 or 247 that is effective at that time, an election under section 248 by the registrant would be effective at that time if the registrant had made such an election at the beginning of the fiscal year of the registrant that includes that time and, except where the reporting period of the registrant that includes that time is deemed under subsection 251(1) or any of sections 265 to 267 to be a separate reporting period, the last reporting period of the registrant ending before that time was a fiscal year of the registrant,

(4) Paragraph 245(2)(a) of the Act is amended by adding the following after subparagraph (ii):

      (iii) the registrant is a charity and has not made an election under section 246 or 247 that is effective at that time, or

      (iv) the registrant is a listed financial institution described in any of subpara graphs 149(1)(a)(i) to (x) and has not made an election under section 246 or 247 that is effective at that time,

1993, c. 27, s. 105(1)

(5) Subparagraph 245(2)(b)(i) of the Act is replaced by the following:

      (i) the threshold amount of the registrant for the fiscal year or fiscal quarter of the registrant that includes that time exceeds $6,000,000 and the registrant is neither a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) nor a charity ,

1993, c. 27, s. 105(1)

(6) The portion of paragraph 245(2)(b) of the English version of the Act after sub paragraph (iii) is replaced by the following:

    the fiscal month of the registrant that includes that time; and

1993, c. 27, s. 105(1)

(7) Paragraph 245(2)(c) of the Act is repealed and paragraph 245(2)(d) of the Act is renumbered as paragraph 245(2)(c).

(8) Subsection (1) applies to fiscal years beginning after April 23, 1996.

(9) Subsections (2) and (3) apply after 1992.

(10) Subsections (4) to (7) apply to fiscal years beginning after 1996.

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

56. (1) Subsection 247(1) of the Act is replaced by the following:

Election for fiscal quarters

247. (1) A person that is a charity on the first day of a fiscal year of the person or whose threshold amount for a fiscal year does not exceed $6,000,000 may make an election to have reporting periods that are fiscal quarters of the person, to take effect

    (a) where the person is a registrant on the first day of that fiscal year, that day; or

    (b) on the day in that fiscal year that the person becomes a registrant.

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

(2) Paragraphs 247(2)(b) and (c) of the Act are replaced by the following:

    (b) where the person is not a charity, the beginning of the first fiscal quarter of the person for which the threshold amount of the person exceeds $6,000,000, and

    (c) where the person is not a charity, the beginning of the first fiscal year of the person for which the threshold amount of the person exceeds $6,000,000.

(3) Subsection (1) is deemed to have come into force on April 23, 1996 except that in determining a person's reporting period for fiscal years beginning before 1997, subsec tion 247(1) of the Act, as enacted by subsection (1), shall be read without refer ence to ``that is a charity on the first day of a fiscal year of the person or''.