A is the part of the initial price that is, at that time, reasonably attributable to the relevant portion, and
	B is the initial price;
``taxable percentage'' « pourcen- tage taxable »	``taxable percentage'', at a particular time, in respect of the provincially taxable portion of a tour package or the non-provincially taxable portion of a tour package, as the case may be, (in this definition referred to as the ``relevant portion'') means
	(a) where the difference between the base percentage at that time in respect of the relevant portion and either the initial taxable percentage in respect of the relevant portion or the base percentage at an earlier time in respect of the relevant portion is more than 10 percentage points, the base percentage at the particular time in respect of the relevant portion, and
	(b) in any other case, the initial taxable percentage in respect of the relevant portion;
	(3) Subsection 163(3) of the Act is amended by adding the following in alphabetical order:
``non- provincially taxable portion'' « partie non taxable au provincial »	``non-provincially taxable portion'' of a tour package means all property and services included in the taxable portion of the tour package that are not included in the provincially taxable portions of the tour package;
``provincially taxable portion'' « partie taxable au provincial »	``provincially taxable portion'' of a tour package, in respect of a participating province, means all property and services that are included in the tour package and the supplies of which, if made otherwise than as part of the tour package, would be supplies made in the participating province in respect of which tax under subsection 165(2) would be payable;
	(4) Subsections (1) and (2) apply to tour packages that are supplied for consideration that becomes due on or after April 1, 1997 or is paid on or after that day without having become due.
	(5) Subsection (3) comes into force on April 1, 1997.
1990, c. 45, s. 12(1)	160. (1) Section 165 of the Act, as amended by section 17, is replaced by the following:
Imposition of goods and services tax	165. (1) Subject to this Part, every recipient of a taxable supply made in Canada shall pay to Her Majesty in right of Canada tax in respect of the supply calculated at the rate of 7% on the value of the consideration for the supply.
Tax in participating province	(2) Subject to this Part, every recipient of a taxable supply made in a participating province shall pay to Her Majesty in right of Canada, in addition to the tax imposed by subsection (1), tax in respect of the supply calculated at the tax rate for that province on the value of the consideration for the supply.
Zero-rated supply	(3) The tax rate in respect of a taxable supply that is a zero-rated supply is 0%.
Application in offshore areas	(4) Subsection (2) does not apply to a supply of property or a service made in the Nova Scotia offshore area or the Newfoundland offshore area unless the supplier makes the supply in the course of an offshore activity or the recipient of the supply acquires the property or service for consumption, use or supply in the course of an offshore activity.
Pay telephones	165.1 (1) Where the consideration for a supply of a telecommunication service is paid by depositing coins in a coin-operated telephone, the tax payable in respect of the supply is equal to
	(a) zero where the amount deposited for the supply does not exceed $0.25; and
	(b) in any other case, the total of the amounts computed in accordance with subsections 165(1) and (2), except that where that total is equal to a multiple of $0.05 plus a fraction of $0.05, the fraction
	(i) if less than $0.025, may be disregarded for the purposes of this Part, and
	(ii) if equal to or greater than $0.025, shall be deemed, for the purposes of this Part, to be an amount equal to $0.05.
Coin- operated devices	(2) Where the consideration for a supply of tangible personal property or a service is paid by depositing a single coin in a mechanical coin-operated device that is designed to accept only a single coin of twenty-five cents or less as the total consideration for the supply and the tangible personal property is dispensed from the device or the service is rendered through the operation of the device, the tax payable in respect of the supply is equal to zero.
Calculation of tax on several supplies	165.2 (1) Where two or more taxable supplies are included in an invoice, receipt or agreement and tax under section 165 is imposed in respect of each of those supplies at the same rate or rates, the tax payable in respect of those supplies, calculated on the consideration for those supplies that is included in the invoice, receipt or agreement, may be calculated on the total of that consideration.
Rounding of tax	(2) Where tax that is at any time payable under this Division in respect of one or more supplies included in an invoice, receipt or agreement is an amount that includes a fraction of a cent, the fraction
	(a) if less than half of a cent, may be disregarded for the purposes of this Part; and
	(b) if equal to or greater than half of a cent, shall be deemed, for the purposes of this Part, to be an amount equal to one cent.
	(2) Subsection (1) comes into force on April 1, 1997.
1993, c. 27, s. 35(1)	161. (1) Subsections 169(1) and (1.1) of the Act are replaced by the following:
General rule for credits	169. (1) Subject to this Part, where a person acquires or imports property or a service or brings it into a participating province and, during a reporting period of the person during which the person is a registrant, tax in respect of the supply, importation or bringing in becomes payable by the person or is paid by the person without having become payable, the amount determined by the following formula is an input tax credit of the person in respect of the property or service for the period:
	A x B
	where
	A is the tax in respect of the supply, importation or bringing in, as the case may be, that becomes payable by the person during the reporting period or that is paid by the person during the period without having become payable; and
	B is
	(a) where the tax is deemed under subsection 202(4) to have been paid in respect of the property on the last day of a taxation year of the person, the extent (expressed as a percentage of the total use of the property in the course of commercial activities and businesses of the person during that taxation year) to which the person used the property in the course of commercial activities of the person during that taxation year,
	(b) where the property or service is acquired, imported or brought into the province, as the case may be, by the person for use in improving capital property of the person, the extent (expressed as a percentage) to which the person was using the capital property in the course of commercial activities of the person immediately after the capital property or a portion thereof was last acquired or imported by the person, and
	(c) in any other case, the extent (expressed as a percentage) to which the person acquired or imported the property or service or brought it into the participating province, as the case may be, for consumption, use or supply in the course of commercial activities of the person.
Determining credit for improvement	(1.1) Where a person acquires or imports property or a service or brings it into a participating province partly for use in improving capital property of the person and partly for another purpose, for the purpose of determining an input tax credit of the person in respect of the property or service,
	(a) notwithstanding section 138, that part of the property or service that is for use in improving the capital property and the remaining part of the property or service are each deemed to be a separate property or service that does not form part of the other;
	(b) the tax payable in respect of the supply, importation or bringing in, as the case may be, of that part of the property or service that is for use in improving the capital property is deemed to be equal to the amount determined by the formula
	A x B
	where
	A is the tax payable (in this section referred to as the ``total tax payable'') by the person in respect of the supply, importation or bringing in, as the case may be, of the property or service, determined without reference to this section, and
	B is the extent (expressed as a percentage) to which the total consideration paid or payable by the person for the supply in Canada of the property or service or the value of the imported goods or the property brought in is or would be, if the person were a taxpayer under the Income Tax Act, included in determining the adjusted cost base to the person of the capital property for the purposes of that Act; and
	(c) the tax payable in respect of that part of the property or service that is not for use in improving the capital property is deemed to be equal to the difference between the total tax payable and the amount determined under paragraph (b).
	(2) Subsections 169(1.2) and (1.3) of the Act are repealed.
	(3) Section 169 of the Act is amended by adding the following after subsection (2):
Restricted credit for selected listed financial institutions	(3) No amount shall be included in determining an input tax credit of a person in respect of tax that becomes payable by the person under subsection 165(2) or section 212.1 while the person is a selected listed financial institution unless
	(a) the input tax credit is in respect of tax that the person is deemed to have paid under subsection 171(1), 171.1(2), 206(2) or (3) or 208(2) or (3); or
	(b) the person is permitted to claim the input tax credit under subsection 193(1) or (2).
	(4) Paragraph 169(4)(b) of the Act, as enacted by subsection 19(1), is replaced by the following:
	(b) where the credit is in respect of property or a service supplied to the registrant in circumstances in which the registrant is required to report the tax payable in respect of the supply in a return filed with the Minister under this Part, the registrant has so reported the tax in a return filed under this Part.
	(5) Subsections (1) to (4) come into force on April 1, 1997.
1990, c. 45, s. 12(1)	162. (1) The portion of subsection 170(1) of the Act before paragraph (a) is replaced by the following:
Restriction	170. (1) In determining an input tax credit of a registrant, no amount shall be included in respect of the tax payable by the registrant in respect of
	(2) The portion of paragraph 170(1)(a.1) of the Act before subparagraph (i), as enacted by subsection 20(1), is replaced by the following:
	(a.1) a supply, importation or bringing into a participating province of property or a service that is acquired, imported or brought in by the registrant for consumption or use by the registrant (or, where the registrant is a partnership, an individual who is a member of the partnership) in relation to any part (in this paragraph referred to as the ``work space'') of a self-contained domestic establishment in which the registrant or the individual, as the case may be, resides unless the work space
1990, c. 45, s. 12(1)	(3) The portion of paragraph 170(1)(b) of the Act before subparagraph (i) is replaced by the following:
	(b) a supply, importation or bringing into a participating province of property or a service that is acquired, imported or brought in by the registrant at any time in or before a reporting period of the registrant exclusively for the personal consumption, use or enjoyment (in this paragraph referred to as the ``benefit'') in that period of a particular individual who was, is or agrees to become an officer or employee of the registrant, or of another individual related to the particular individual, except where
1990, c. 45, s. 12(1)	(4) Subsection 170(2) of the Act is replaced by the following:
Further restriction	(2) In determining an input tax credit of a registrant, no amount shall be included in respect of the tax payable by the registrant in respect of property or a service acquired, imported or brought into a participating province by the registrant, except to the extent that
	(a) the consumption or use of property or services of such quality, nature or cost is reasonable in the circumstances, having regard to the nature of the commercial activities of the registrant; and
	(b) the amount is calculated on consideration for the property or service or on a value of the property that is reasonable in the circumstances.
	(5) Subsections (1) to (4) come into force on April 1, 1997.
1993, c. 27, s. 37(1)	163. (1) Paragraph 171(1)(b) of the Act is replaced by the following:
	(b) to have paid, at that time, tax in respect of the supply equal to the basic tax content of the property at that time.
	(2) Subsection (1) comes into force on April 1, 1997.
1993, c. 27, s. 38(1)	164. (1) Paragraph 171.1(2)(a) of the Act is replaced by the following:
	(a) for the purpose of determining an input tax credit of the person, the person is deemed to have received, at that time, a supply by way of sale of each property of the person, other than capital property, that was held immediately before that time for consumption, use or supply in the course of those other activities and to have paid, at that time, tax in respect of the supply equal to the basic tax content of the property at that time; and
1993, c. 27, s. 38(1)	(2) Subparagraph 171.1(2)(b)(i) of the Act is replaced by the following:
	(i) that is reasonably attributable to a service that is to be rendered to the person after that time and that was acquired by the person for consumption, use or supply in the course of those other activities, or
1993, c. 27, s. 38(1)	(3) Subparagraph 171.1(3)(b)(i) of the Act is replaced by the following:
	(i) that is reasonably attributable to services that were rendered to the person before that time and that were acquired by the person for consumption, use or supply in the course of those other activities, or
1993, c. 27, s. 38(1)	(4) The portion of paragraph 171.1(3)(c) of the Act after subparagraph (ii) is replaced by the following:
	the amount shall be added in determining the net tax for the reporting period of the person that includes that time, to the extent to which the property is used by the person during the lease period, or the services were acquired by the person for consumption, use or supply, in the course of those other activities.
	(5) Subsection (1) comes into force on April 1, 1997.
	(6) Subsections (2) to (4) come into force on April 1, 1997.
	165. (1) Paragraph 173(1)(c) of the Act, as enacted by subsection 22(1), is replaced by the following:
	(c) in the case of a supply of property otherwise than by way of sale, the use made by the registrant in so providing the property to the individual or person related to the individual is deemed, for the purposes of this Part, to be use in commercial activities of the registrant and, to the extent that the registrant acquired or imported the property or brought it into a participating province for the purpose of making that supply, the registrant is deemed, for the purposes of this Part, to have so acquired or imported the property or brought it into the province, as the case may be, for use in commercial activities of the registrant, and
	(2) Subparagraph 173(1)(d)(i) of the English version of the Act, as enacted by subsection 22(1), is replaced by the following:
	(i) the registrant was, because of section 170, not entitled to claim an input tax credit in respect of the last acquisition, importation or bringing into a participating province of the property or service by the registrant,
	(3) Clause 173(1)(d)(ii)(B) of the French version of the Act, as enacted by subsection 22(1), is replaced by the following:
	(B) dans les autres cas, le résultat du calcul suivant :
	(A/B) x C
	où :
	A représente la somme de 6 % et de celui des pourcentages suivants qui est applicable :
	(I) selon le cas :