(b) the property is not imported for consumption or use in any participating province, and
	(c) the person pays all taxes, if any, payable by the person in respect of the property that are imposed under Acts of the legislatures of non-participating provinces and that are prescribed for the purposes of section 154,
	the Minister shall, subject to section 261.4, pay a rebate to the person equal to the amount of the tax under subsection 212.1(2) paid by the person.
Rebate in respect of intangible personal property or services supplied in a participating province	261.3 (1) Where a person who is a resident in Canada is the recipient of a supply of intangible personal property or a service that is acquired by the person for consumption, use or supply primarily outside the participating provinces and tax under subsection 165(2) is payable in respect of the supply, the Minister shall, subject to section 261.4, pay a rebate to the person equal to the amount determined by the formula
	A x B
	where
	A is the amount of that tax; and
	B is the extent (expressed as a percentage) to which the intangible personal property or service is acquired by the person for consumption, use or supply outside the participating provinces.
Exception for investment plans, etc.	(2) A rebate is not payable under subsection (1) to a listed financial institution described in subparagraph 149(1)(a)(vi) or (ix) in respect of a supply of a specified service within the meaning assigned by subsection 261.31(1).
Meaning of ``specified service''	261.31 (1) In this section, ``specified service'' means a management or administrative service and any other service provided to the recipient of a supply of a management or administrative service by the supplier of that management or administrative service.
Rebate for management services supplied to investment plans, etc.	(2) Where a listed financial institution described in subparagraph 149(1)(a)(vi) or (ix), other than a selected listed financial institution, is the recipient of a supply of a specified service and tax under subsection 165(2), 218.1(1) or 220.08(1) is payable in respect of the supply, the Minister shall, subject to section 261.4, pay a rebate to the financial institution equal to
	(a) where the tax is payable under subsection 165(2), the amount determined by the formula
	A x B
	where
	A is the amount of that tax, and
	B is the extent (expressed as a percentage) to which the financial institution may reasonably be regarded as holding or investing funds for the benefit of persons who are resident outside the participating provinces; and
	(b) where the tax is payable under subsection 218.1(1) or 220.08(1), the amount determined by the formula
	A - (B x C)
	where
	A is the amount of that tax,
	B is the amount of tax that would be payable under that subsection if the service were acquired by the financial institution for consumption, use or supply exclusively in participating provinces, and
	C is the extent (expressed as a percentage) to which the financial institution may reasonably be regarded as holding or investing funds for the benefit of persons who are resident in participating provinces.
Election by segregated fund and insurer	(3) An insurer and a segregated fund of the insurer may elect, in prescribed form containing prescribed information, to have the insurer pay to, or credit in favour of, the segregated fund the amount of any rebates payable to the segregated fund under subsection (2) in respect of supplies of specified services made by the insurer to the segregated fund.
Filing of election	(4) An election made under subsection (3) by an insurer and a segregated fund of the insurer shall be filed with the Minister in prescribed manner on or before the day the insurer files a return of the insurer under Division V for a reporting period of the insurer in which the insurer pays or credits a rebate under subsection (2) to or in favour of the segregated fund.
Application to insurer	(5) Where
	(a) an insurer makes a taxable supply of a specified service to a segregated fund of the insurer,
	(b) a rebate would be payable under subsection (2) in respect of the supply if the segregated fund complied with section 261.4 in relation to the supply,
	(c) the insurer and the segregated fund have filed an election made under subsection (3) that is in effect when tax in respect of the supply becomes payable, and
	(d) the segregated fund, within one year after the day tax becomes payable in respect of the supply, submits to the insurer an application for the rebate in prescribed form containing prescribed information,
	the insurer may pay or credit the amount of the rebate to or in favour of the segregated fund.
Forwarding of application by insurer	(6) Where an application of a segregated fund of an insurer for a rebate under subsection (2) is submitted to the insurer in the circumstances described in subsection (5),
	(a) the insurer shall transmit the application to the Minister with the insurer's return filed under Division V for the reporting period of the insurer in which the rebate was paid or credited to the segregated fund; and
	(b) interest under subsection 297(4) is not payable in respect of the rebate.
Joint and several liability	(7) Where an insurer, in determining its net tax for a reporting period, deducts an amount under subsection 234(5) that the insurer paid or credited to a segregated fund of the insurer on account of a rebate under subsection (2) and the insurer knows or ought to know that the segregated fund is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the segregated fund is entitled, the insurer and the segregated fund are jointly and severally liable to pay the amount of the rebate or excess to the Receiver General under section 264.
Restriction	261.4 A rebate shall not be paid under any of sections 261.1 to 261.31 unless
	(a) the person files an application for the rebate within one year after
	(i) in the case of a rebate under section 261.1 in respect of property supplied in a participating province, the day the person removes the property from the participating province, and
	(ii) in the case of a rebate under any of sections 261.2 to 261.31 in respect of tax payable by the person, the day that tax became payable;
	(b) except where the application is a prescribed application, where the person is an individual, the individual has not made another application under this section in the calendar quarter in which the application is made;
	(c) where the person is not an individual, the person has not made another application under this section in the calendar month in which the application is made;
	(d) in the case of a rebate under section 261.1 or 261.3, the rebate is substantiated by a receipt for an amount that includes consideration, totalling at least $50, for taxable supplies (other than zero-rated supplies) in respect of which the person is otherwise eligible for a rebate under that section; and
	(e) the total of all amounts, each of which is consideration for a taxable supply (other than a zero-rated supply) in respect of which the rebate application is made, is at least $200.
Restriction - selected listed financial institutions	261.5 Notwithstanding sections 261.1 to 261.31, a rebate shall not be paid to a selected listed financial institution under any of these sections unless the rebate is in respect of an amount of tax that is prescribed for the purposes of paragraph (a) of the description of F in subsection 225.2(2).
	(2) Subsection (1) comes into force on April 1, 1997.
1993, c. 27, s. 118(1)	230. (1) The portion of section 263 of the Act before paragraph (a) is replaced by the following:
Restriction on rebate	263. A rebate of an amount under subsection 215.1(1) or (2) or 216(6) or any of sections 252 to 261.31 or a refund of an amount that, because of subsection 215.1(3) or 216(7), is payable under section 69, 73, 74 or 76 of the Customs Act, shall not be paid to a person to the extent that it can reasonably be regarded that
	(2) Subsection (1) comes into force on April 1, 1997.
	231. (1) Section 269 of the Act, as enacted by subsection 73(1), is replaced by the following:
Distribution by trust	269. For the purposes of this Part, where a trustee of a trust distributes property of the trust to one or more persons, the distribution of the property is deemed to be a supply of the property made by the trust at the place at which the property is delivered or made available to the persons and for consideration equal to the amount determined under the Income Tax Act to be the proceeds of disposition of the property.
	(2) Subsection (1) comes into force on April 1, 1997.
	232. (1) Paragraph 272.1(2)(a) of the Act, as enacted by subsection 76(1), is replaced by the following:
	(a) except as otherwise provided in subsection 175(1), the partnership is deemed
	(i) not to have acquired or imported the property or service, and
	(ii) where the property was brought by the member from a non-participating province into a participating province, not to have so brought it into that province;
	(2) Subsection (1) comes into force on April 1, 1997.
1993, c. 27, s. 124(1)	233. (1) Paragraph 273(1)(a) of the Act is replaced by the following:
	(a) all properties and services that are, during the period the election is in effect, supplied, acquired, imported or brought into a participating province under the agreement by the operator on behalf of the co-venturer in the course of the activities for which the agreement was entered into shall, for the purposes of this Part, be deemed to be supplied, acquired, imported or brought into the province, as the case may be, by the operator and not by the co-venturer;
1993, c. 27, s. 124(1)	(2) Subsection 273(1.1) of the Act is replaced by the following:
Exception	(1.1) Paragraph (1)(a) does not apply to the acquisition, importation or bringing into a participating province of property or a service by an operator on behalf of a co-venturer where the property or service is so acquired, imported or brought into the province for consumption, use or supply in the course of activities that are not commercial activities and the operator
	(a) is a government other than a specified Crown agent; or
	(b) would not be required, because of an Act of Parliament other than this Act, to pay tax in respect of the acquisition, importation or bringing into the province of the property or service if the operator acquired or, imported the property or service or brought it into the province for that purpose otherwise than on behalf of the co-venturer.
	(3) Subsections (1) and (2) come into force on April 1, 1997.
	234. The Act is amended by adding the following after section 277:
Definition of ``harmonized tax system''	277.1 (1) In this section, ``harmonized tax system'' means the system established under this Part for the payment, collection and remittance of tax imposed under subsection 165(2) and sections 212.1, 218.1, 220.05, 220.06, 220.07 and 220.08 and of allowing input tax credits, rebates and refunds in respect of any such tax paid or deemed to be paid.
Temporary regulations	(2) For the purpose of facilitating the administration and enforcement of the harmonized tax system or the transition to the harmonized tax system, the Governor in Council may, at any time before May 1999, make regulations
	(a) adapting any provision of this Part or of the regulations made under section 277 to the harmonized tax system or modifying any provision of this Part or those regulations to adapt it to the harmonized tax system;
	(b) defining, for the purposes of this Part or the regulations made under section 277, or any provision of this Part or those regulations, in its application to the harmonized tax system, words or expressions used in this Part, including words or expressions defined in a provision of this Part;
	(c) providing that a provision of this Part or of the regulations made under section 277, or a part of such a provision does not apply to the harmonized tax system; and
	(d) prescribing, determining or regulating for the purposes only of the harmonized tax system, or for the purposes of this Part other than the harmonized tax system, anything that by this Part is to be prescribed or is to be determined or regulated by regulation.
Retroactivity	(3) Every regulation made under this section, other than a regulation made under paragraph (2)(d), ceases to have effect, and is deemed to be repealed, on May 1, 2000.
	235. (1) Section 280 of the Act is amended by adding the following after subsection (1):
Penalty and interest on net tax of selected listed financial institutions	(1.1) Notwithstanding subsection (1), where a selected listed financial institution that is required to pay an amount under paragraph 228(2.1)(a) on account of the financial institution's net tax for a reporting period fails to pay all of that amount within the time specified in subsection 228(2.1), the financial institution shall pay, on the amount not paid,
	(a) a penalty of 6% per year, and
	(b) interest at the prescribed rate,
	computed for the period beginning on the first day following that time and ending on the earlier of
	(c) the day the total of the amount, penalty and interest is paid, and
	(d) the day on or before which the financial institution is required under subsection 238(2.1) to file a final return for that reporting period.
	(2) Section 280 of the Act is amended by adding the following after subsection (4):
Unpaid penalty and interest	(4.01) Where a selected listed financial institution is required to pay a penalty or interest under subsection (1.1) in respect of an amount required under paragraph 228(2.1)(a) to be paid within the time specified in that paragraph and the penalty or interest, as the case may be, has not been paid on or before the day on or before which the financial institution is required under subsection 238(2.1) to file a final return for that reporting period, the penalty or interest, as the case may be, is deemed, for the purposes of this Part, to be an amount required to be remitted by the financial institution or before that day that has not been remitted on or before that day.
	(3) Subsections (1) and (2) come into force on April 1, 1997.
1993, c. 27, s. 128(3); 1996, c. 23, par. 187(b)	236. Subparagraphs 295(5)(d)(ii) and (iii) of the Act are replaced by the following:
	(ii) to an official solely for the purposes of the initial implementation of a fiscal policy or for the purposes of the administration or enforcement of the Canada Pension Plan, the Employment Insurance Act or an Act of Parliament that provides for the imposition or collection of a tax or duty or that provides that displays or indications of the price or consideration for property or services include tax under this Act,
	(iii) to an official solely for the purposes of the administration or enforcement of a law of a province that provides for the imposition or collection of a tax or duty, that provides that displays or indications of the price or consideration for property or services include tax under this Act or that provides for reimbursements to persons of amounts paid or payable by the persons as or on account of tax under this Act,
1990, c. 45, s. 12(1)	237. (1) Paragraph 296(1)(b) of the Act is replaced by the following:
	(b) any tax payable by a person under Division II, IV or IV.1,
1993, c. 27, s. 129(1)	(2) Paragraph 296(1)(d) of the Act is replaced by the following: