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(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
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|
(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;
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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;
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|
D is the tax rate for the participating province;
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E is 7%;
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F is the total of
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(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
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(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;
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G is the total of all amounts each of which is
a positive or negative prescribed amount;
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H is the number of days in the particular
reporting period after March 1997; and
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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:
|
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| 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.
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|
| 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.
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|
| 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
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(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
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(4) Subsections (1) to (3) come into force
on April 1, 1997.
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| 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:
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| 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.
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|
| 1996, c. 21,
s. 65(1)
|
(2) The portion of subsection 228(2) of the
Act before paragraph (a) is replaced by the
following:
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| 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:
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|
| 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),
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(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
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(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.
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|
| 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''.
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|
| 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,
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|
|
(a) the person shall calculate in the final
return the net tax of the person for the
reporting period;
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|
|
(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;
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(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
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(d) where the person claimed an interim net
tax refund for the reporting period under
subsection (2.4),
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(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
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(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,
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|
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(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
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A - B
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A is the absolute value of that net tax, and
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B is the amount, if any, that the person
claimed as an interim net tax refund for
the period under subsection (2.4); and
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(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.
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|
|
(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.
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|
|
|
(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
|
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|
|
(A/B) x C
|
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|
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|
(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
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|
(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
|
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|
|
A x 100%/B
|
|
|
|
|
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|
|
|
|
|
|
(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
|
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|
|
|
|
|
|
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,
|
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|
|
D is the total amount of the dividend,
and
|
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|
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.
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|