(a) all input tax credits (other than input tax credits in respect of an amount of tax that is prescribed for the purposes of paragraph (a) of the description of A) of the financial institution for the particular reporting period or preceding reporting periods of the financial institution claimed by the financial institution in the return under this Division filed by the financial institution for the particular reporting period, and

      (b) all amounts each of which would be an input tax credit (other than an input tax credit in respect of an amount of tax that is prescribed for the purposes of paragraph (a) of the description of A) of the financial institution for the particular reporting period of the financial institution in respect of property or a service if tax became payable in respect of the supply of the property or service equal to the amount included for the particular reporting period under paragraph (b) or (c) of the description of A in respect of the supply;

C is the financial institution's percentage for the participati ng province for the taxation year, determined in accordance with the prescribed rules that apply to financial institutions of that class;

D is the tax rate for the participating province;

E is 7%;

F is the total of

      (a) all tax (other than a prescribed amount of tax) under subsection 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 reporting period or that was paid by the financial institution during the particular reporting period without having become payable, and

      (b) all amounts each of which is an amount, in respect of a supply made during the particular reporting period of property or a service to which the financial institution and another person have elected to have paragraph (c) of the description of A apply, equal to tax payable by the other person under any of subsection 165(2), 212.1, 218.1 or Division IV.1 that is included in the cost to the other person of supplying the property or service to the financial institution;

G is the total of all amounts each of which is a positive or negative prescribed amount;

H is the number of days in the particular reporting period after March 1997; and

I is the total number of days in the particular reporting period.

1993, c. 27, s. 89(1)

209. (1) Subsection 226(4) of the Act is replaced by the following:

Input tax credit for returnable containers

(4) Tax that is paid or that becomes payable by a registrant in respect of a supply or the bringing into a participating province of a returnable container shall not be included in determining an input tax credit of the registrant unless the registrant is acquiring the container or bringing it into the province, as the case may be, for the purpose of making a zero-rated supply of the container or a supply of the container outside Canada.

1993, c. 27, s. 89(1)

(2) Subsection 226(6) of the Act is replaced by the following:

Change in practice

(6) Where subsection (3) at any time ceases to apply to a registrant in respect of a returnable container owned by the registrant at that time and the registrant was not entitled, because of subsection (4), to claim an input tax credit in respect of the last acquisition of the container by the registrant or in respect of bringing the container into a participating province after it was last acquired, for the purposes of this Part, the registrant is deemed to have received at that time a supply of the container and to have paid at that time tax in respect of the supply equal to the basic tax content of the container at that time.

1993, c. 27, s. 89(1)

(3) The portion of subsection 226(7) of the Act before paragraph (b) is replaced by the following:

Change in practice

(7) Where subsection (3) at any time begins to apply to a registrant in respect of a returnable container owned by the registrant at that time and the registrant was entitled to claim an input tax credit in respect of the last acquisition of the container by the registrant or in respect of bringing the container into a participating province after it was last acquired, for the purposes of this Part, the registrant is deemed

    (a) to have made immediately before that time a supply of the container and to have collected at that time tax in respect of the supply equal to the basic tax content of the container at that time; and

(4) Subsections (1) to (3) come into force on April 1, 1997.

1990, c. 45, s. 12(1); 1993, c. 27, s. 203(Sch. I, item 1(b))

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

Calculation of net tax

228. (1) Every person who is required to file a return under this Division shall, in the return, calculate the net tax of the person for the reporting period for which the return is required to be filed, except where subsection (2.1) or (2.3) applies in respect of the reporting period.

1996, c. 21, s. 65(1)

(2) The portion of subsection 228(2) of the Act before paragraph (a) is replaced by the following:

Remittance

(2) Where the net tax for a reporting period of a person is a positive amount, the person shall, except where subsection (2.1) or (2.3) applies in respect of the reporting period, remit that amount to the Receiver General,

1990, c. 45, s. 12(1); 1993, c. 27, s. 203 (Sch. I, item 1(b))

(3) Subsection 228(3) of the Act is replaced by the following:

Selected listed financial institutions - interim return and remittance

(2.1) Where a person who is a selected listed financial institution is required to file an interim return for a reporting period under subsection 238(2.1),

    (a) subject to subsection (2.2), the person shall calculate in the interim return the amount (in this Part referred to as the ``interim net tax'') that would be the net tax of the person for reporting period if the description of C in the formula in subsection 225.2(2) were read as ``is the lesser of the financial institution's percentage for the participating province for the taxation year and the financial institution's percentage for the immediately preceding taxation year, each determined in accordance with the prescribed rules that apply to financial institutions of that class''; and

    (b) where the interim net tax for the reporting period is a positive amount, the person shall pay that amount, on account of the person's net tax for the reporting period that the person is required to remit under paragraph (2.3)(b), to the Receiver General on or before the day on or before which that interim return is required to be filed.

Selected listed financial institutions - interim returns in the first fiscal year

(2.2) For the purposes of paragraph (2.1)(a), where a person becomes a selected listed financial institution during a reporting period of the person that ends in a fiscal year of the person that begins on or after April 1, 1997, the interim net tax for each reporting period in the fiscal year is the amount that would be the net tax of the person for the reporting period if the description of C in the formula in subsection 225.2(2) read ``is the financial institution's percentage for the participating province for the immediately preceding reporting period, determined in accordance with the prescribed rules that apply to financial institutions of that class''.

Selected listed financial institutions - final return

(2.3) Where a person who is a selected listed financial institution is required to file a final return under subsection 238(2.1) for a reporting period,

    (a) the person shall calculate in the final return the net tax of the person for the reporting period;

    (b) where the net tax of the person for the reporting period is a positive amount, the person shall remit that amount to the Receiver General on or before the day on or before which the final return for the reporting period is required to be filed;

    (c) the person shall report in the final return the positive amount, if any, that the person paid on account of the person's net tax for the period under subsection (2.1) or the negative amount, if any, that the person claimed in the interim return for the period as an interim net tax refund for the period under subsection (2.4); and

    (d) where the person claimed an interim net tax refund for the reporting period under subsection (2.4),

      (i) if the interim net tax refund exceeds the amount that would be the net tax refund for the period payable to the person under subsection (3) if the person had not claimed that interim net tax refund, the person shall pay an amount equal to the excess to the Receiver General on or before the day on or before which the final return for the reporting period is required to be filed, and

      (ii) if the person's net tax for the period is a positive amount, the person shall pay an amount equal to the interim net tax refund to the Receiver General on or before the day on or before which the final return for the reporting period is required to be filed.

Interim refund for selected listed financial institutions

(2.4) Where the amount determined in accordance with paragraph (2.1)(a) for a reporting period of a person who is a selected listed financial institution is a negative amount, the person may claim that amount, in the interim return for that reporting period filed before the day on or before which the final return for the period is required to be filed, as an interim net tax refund for the period payable to the person by the Minister.

Net tax refund

(3) Where the net tax for a reporting period of a person is a negative amount,

    (a) where the person is a selected listed financial institution that is required to file a final return for the reporting period under subsection 238(2.1), the person may claim, in the final return for that reporting period as a net tax refund for the period payable to the person by the Minister, the amount, if any, determined by the formula

A - B

    where

    A is the absolute value of that net tax, and

    B is the amount, if any, that the person claimed as an interim net tax refund for the period under subsection (2.4); and

    (b) in any other case, the person may claim in the return for that reporting period the amount of that net tax as a net tax refund for the period, payable to the person by the Minister.

(4) Subsections 228(6) and (7) of the Act, as enacted by subsection 47(2), 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 (2.3) or paid under subsection (2.1) or (4) or Division IV or IV.1 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 circumstances and subject to prescribed conditions and rules, reduce or offset the tax that is required to be remitted under subsection (2) or (2.3) or paid under subsection (2.1) or (4) or Division IV or IV.1 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.

(5) Subsections (1) to (4) apply to reporting periods that end after March 1997.

1990, c. 45, s. 12(1); 1993, c. 27, s. 203 (Sch. I, item 1(c))

211. (1) Subsection 229(2) of the Act is replaced by the following:

Restriction

(2) A net tax refund for a reporting period of a person shall not be paid to the person under subsection (1) until such time as

    (a) in the case of an interim net tax refund, all returns required to be filed under this Division by the person for all preceding reporting periods have been filed with the Minister; and

    (b) in any other case, all returns required to be filed under this Division by the person for the reporting period and all preceding reporting periods have been filed with the Minister.

(2) Subsection (1) comes into force on April 1, 1997.

212. (1) Subsection 230(1) of the Act, as enacted by subsection 48(1), is replaced by the following:

Refund of payment

230. (1) Where a person has paid instalments or interim net tax 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 (other than an interim 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.

(2) Subsection (1) comes into force on April 1, 1997.

1993, c. 27, s. 94(1)

213. (1) Paragraph 233(2)(a) of the Act is replaced by the following:

    (a) to have reduced, at that time, the total consideration for those supplies by the amount determined by the formula

(A/B) x C

    where

    A is 100,

    B is 107, and

    C is

        (i) where the particular person has made an election under this subparagraph that is in effect for that fiscal year, the part of the dividend that is in respect of taxable supplies (other than zero-rated supplies) made to the other person, and

        (ii) in any other case, the specified amount in respect of the dividend;

    (a.1) where the supplies include supplies made in a participating province to the other person, to have, at that time, reduced further the total consideration for those supplies made in that province by the amount determined by the formula

A x 100%/B

    where

    A is

        (i) where the particular person has made an election under subparagraph (i) of the description of C in paragraph (a), the part of the dividend that is in respect of taxable supplies (other than zero-rated supplies) made in that province to the other person in respect of which tax under subsection 165(2) was payable, and

        (ii) in any other case, the amount determined by the formula

(C/D) x E

        where

        C is the part of the dividend that may reasonably be regarded as being in respect of supplies made in that province to the other person in respect of which tax under subsection 165(2) was payable,

        D is the total amount of the dividend, and

        E is the specified amount, and

    B is the total of 100% and the tax rate for that province; and

1993, c. 27, s. 94(4)

(2) Subsections 233(4) and (5) are replaced by the following:

Time for election

(4) An election made under subparagraph (i) of the description of C in paragraph (2)(a) or under subsection (3) by a person shall be made before any patronage dividend is paid by the person in the fiscal year of the person in which the election is to take effect.

Revocation of election

(5) An election made under subparagraph (i) of the description of C in paragraph (2)(a) or under subsection (3) by a person may be revoked by the person before any dividend is paid by the person in the fiscal year of the person in which the revocation is to take effect.

(3) Subsections (1) and (2) come into force on April 1, 1997.

214. (1) Section 234 of the Act is amended by adding the following after subsection (2):

Deduction in respect of supply in a participating province

(3) Where a registrant makes a supply in a participating province and the registrant pays to, or credits in favour of, the recipient of the supply a prescribed amount in respect of the supply, the registrant may deduct that amount in determining the net tax of the registrant for the reporting period of the registrant in which the amount was paid or credited.

Restriction on input tax credits etc. for amounts paid or credited

(4) No amount of tax under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 shall be included in determining any input tax credit, rebate, refund or remission under this or any other Act of Parliament where the amount is prescribed for the purposes of subsection (3).

Deduction for rebate payable to segregated fund

(5) Where, in the circumstances described in subsection 261.31(5), an insurer pays to, or credits in favour of, a segregated fund of the insurer an amount on account of a rebate referred to therein and transmits the application of the segregated fund for the rebate to the Minister in accordance with subsection 261.31(6), the insurer may deduct the amount in determining the net tax of the insurer for the reporting period of the insurer in which the amount was paid or credited.