Designated Charities

Meaning of ``specified service''

178.7 (1) For the purposes of this section, ``specified service'' means any service, other than a service

    (a) that is

      (i) the care, employment or training for employment of individuals with disabilities,

      (ii) an employment placement service rendered to such individuals, or

      (iii) the provision of instruction to assist such individuals in securing employment; and

    (b) the recipient of which is a public sector body or a board, commission or other body established by a government or a municipality.

Charity supplying specified service

(2) A charity may apply to the Minister, in prescribed form containing prescribed information, to be designated for the purposes of paragraph 1(d.1) of Part V.1 of Schedule V if

    (a) one of the main purposes of the charity is the provision of employment, training for employment or employment placement services for individuals with disabilities or the provision of instructional services to assist such individuals in securing employment; and

    (b) the charity supplies, on a regular basis, specified services that are performed, in whole or in part, by individuals with disabilities.

Designation by the Minister

(3) On application by a charity under subsection (2), the Minister may, by notice in writing, designate the charity for the purposes of paragraph 1(d.1) of Part V.1 of Schedule V, effective on the first day of a reporting period specified in the notice, if

    (a) the Minister is satisfied that the conditions described in paragraphs (2)(a) and (b) are met; and

    (b) a revocation under subsection (4) pursuant to a request made by the charity has not become effective in the 365-day period ending immediately before that day.

Revocation of designation

(4) The Minister may, by notice in writing, revoke a designation of a charity, effective on the first day of a reporting period specified in the notice, if

    (a) the Minister is satisfied that the conditions described in paragraphs (2)(a) and (b) are no longer met; or

    (b) the charity makes a request in writing to the Minister that the designation be revoked and the designation had not become effective in the 365-day period ending immediately before that day.

(2) Subsection (1) is deemed to have come into force on February 24, 1998 and applies to reporting periods beginning after that day.

1997, c. 10, s. 174(1)

24. (1) The definition ``coupon'' in subsection 181(1) of the Act is replaced by the following:

``coupon''
« bon »

``coupon'' includes a voucher, receipt, ticket or other device but does not include a gift certificate or a barter unit (within the meaning of section 181.3).

1993, c. 27, s. 46(1)

(2) Subsection 181(4) of the Act is replaced by the following:

Acceptance of other coupons

(4) For the purposes of this Part, if a registrant accepts, in full or partial consideration for a supply of property or a service, a coupon that may be exchanged for the property or service or that entitles the recipient of the supply to a reduction of, or a discount on, the price of the property or service and paragraphs (2)(a) to (c) do not apply in respect of the coupon, the value of the consideration for the supply is deemed to be the amount, if any, by which the value of the consideration for the supply as otherwise determined for the purposes of this Part exceeds the discount or exchange value of the coupon.

1997, c. 10, s. 174(3)

(3) Paragraph 181(5)(c) of the Act is replaced by the following:

    (c) if the supply is not a zero-rated supply and the coupon entitled the recipient to a reduction of the price of the property or service equal to a fixed dollar amount specified in the coupon (in this paragraph referred to as the ``coupon value''), the particular person, if a registrant (other than a registrant who is a prescribed registrant for the purposes of subsection 188(5)) at that time, may claim an input tax credit for the reporting period of the particular person that includes that time equal to the tax fraction of the coupon value, unless all or part of that coupon value is an amount of an adjustment, refund or credit to which subsection 232(3) applies.

(4) Subsection (1) applies

    (a) for the purpose of applying section 181 of the Act on and after December 10, 1998; and

    (b) for the purpose of applying that section, to anything accepted or redeemed before that day, in determining

      (i) any rebate under subsection 261(1) of the Act for which an application is received by the Minister of National Revenue on or after that day, or

      (ii) any input tax credit or deduction claimed in a return received by the Minister on or after that day.

(5) Subsections (2) and (3) are deemed to have come into force on April 1, 1997 except that subsection (3) does not apply to a coupon if the person who pays an amount to redeem the coupon has claimed an input tax credit in respect of that amount in a return under Division V of Part IX of the Act that was, without the application of subsection 334(1) of the Act, received by the Minister of National Revenue before November 26, 1997.

25. (1) The Act is amended by adding the following after section 181.2:

Definitions

181.3 (1) The definitions in this subsection apply in this section.

``adminis-
trator''
« administra-
teur »

``administrator'' of a barter exchange network means the person who is responsible for administering, maintaining or operating a system of accounts, to which barter units may be credited, of members of the network.

``barter exchange network''
« réseau de troc »

``barter exchange network'' means a group of persons each member of which has agreed in writing to accept as full or partial consideration for the supply of property or services by that particular member to any other member of that group one or more credits (in this section referred to as ``barter units'') on an account of the particular member maintained or operated by a single administrator of all such accounts of the members, which credits can be used as full or partial consideration for supplies of property or services between members of that group.

Application for designation

(2) The administrator of a barter exchange network may make an application to the Minister, in prescribed form containing prescribed information and filed in prescribed manner, to have the network designated for the purposes of subsection (5).

Designation of barter exchange network

(3) On application by an administrator of a barter exchange network under subsection (2), the Minister may designate the barter exchange network for the purposes of subsection (5), in which case the Minister shall notify the administrator in writing of the designation and its effective date.

Notification by administrator

(4) On receipt of a notification by the Minister of a designation of a barter exchange network, the administrator of the network shall, within a reasonable time, notify each member of the network in writing of the designation and its effective date.

Exchange of barter unit

(5) If a member of a barter exchange network or the administrator of a barter exchange network gives, while a designation of the network under subsection (3) is in effect, property, a service or money in exchange for a barter unit, the value of that property, service or money as consideration for the barter unit is, for the purposes of this Part and despite section 155, deemed to be nil.

Deemed non-financial services

(6) For the purposes of this Part, each of the following is deemed not to be a financial service:

    (a) the operation, maintenance or administration of a system of accounts, to which barter units can be credited, of members of a barter exchange network;

    (b) the crediting of a barter unit to such an account;

    (c) the supply, receipt or redemption of a barter unit; and

    (d) the agreeing to provide, or the arranging for, anything referred to in any of paragraphs (a) to (c).

(2) Subsection (1) is deemed to have come into force on December 10, 1998.

(3) If a designation of a barter exchange network under section 181.3 of the Act, as enacted by subsection (1), takes effect on the day on which this Act is assented to, that section applies to the giving of any property, service or money at any time before that day, by a member of the network or the administrator of the network, in exchange for a barter unit that could be used as full or partial consideration for supplies of property or services between members of the network as if the designation and that section had been in effect at that time, provided that no amount was collected as or on account of tax in respect of the supply of the barter unit.

1997, c. 10, s. 33(3)

26. (1) Clauses 183(6)(a)(ii)(A) and (B) of the Act are replaced by the following:

        (A) that supply is a zero-rated supply , or

        (B) in the case of property that was, at the time it was seized or repossessed, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property, tax would not have been payable had the property been purchased in Canada from the person at that time,

1997, c. 10, s. 177(3)

(2) Clause (A) of the description of A in subparagraph 183(6)(a)(ii) of the Act is replaced by the following:

          (A) if

            (I) the property is situated in a participating province at the particular time, it was seized or repossessed before the day that is three years after the implementation date for that province (as defined in section 348) and tax would not have been payable had the property been purchased in Canada from the person at the time it was seized or repossessed, or

            (II) the property is situated in a non-participating province at the particular time,

          7%, and

1993, c. 27, s. 47(3)

(3) Paragraph 183(7)(c) of the Act is replaced by the following:

    (c) to have received a supply by way of sale of the property immediately before that time for consideration equal to the consideration for the particular supply, and

1997, c. 10, s. 177(5)

(4) The portion of paragraph 183(7)(d) of the Act before subparagraph (ii) of the description of A is replaced by the following:

    (d) except if the supply deemed under paragraph (c) to have been received is a zero-rated supply, to have paid, immediately before that time, all tax payable in respect of the supply deemed to have been received, which is deemed to be equal to the amount determined by the formula

A - B

    where

    A is

        (i) if

          (A) the property was seized or repossessed in a participating province by the creditor before the day that is three years after the implementation date for that province (as defined in section 348) and the particular supply is either made outside Canada or is a zero-rated supply, or

          (B) either the property was seized or repossessed in a non-participating province or the particular supply is a supply (other than a zero-rated supply) made in a non-participating province,

        tax under subsection 165(1) calculated on that consideration, and

1993, c. 27, s. 47(4)

(5) The portion of subsection 183(8) of the Act before paragraph (a) is replaced by the following:

Lease of personal property

(8) For the purposes of this Part, if at a particular time a creditor who has seized or repossessed personal property from a person in circumstances in which subsection (1) applies makes a particular taxable supply of the property by way of lease, licence or similar arrangement for the first lease interval (within the meaning of subsection 136.1(1)) in respect of the arrangement , the creditor was not deemed under subsection (5) or (6) to have received a supply of the property at an earlier time and no tax would have been payable had the property been purchased in Canada from the person at the time it was seized or repossessed, except if

1993, c. 27, s. 47(1)

(6) Paragraph 183(8)(c) of the Act is replaced by the following:

    (c) to have received a supply by way of sale of the property immediately before the particular time, and

1997, c. 10, s. 177(6)

(7) The portion of paragraph 183(8)(d) of the Act before subparagraph (ii) is replaced by the following:

    (d) except if that supply is a zero-rated supply, to have paid, immediately before the particular time, all tax payable in respect of that supply, which is deemed to be equal to

      (i) if

        (A) the property was seized or repossessed in a participating province by the creditor before the day that is three years after the implementation date for that province (as defined in section 348) and the particular supply is either made outside Canada or is a zero-rated supply, or

        (B) either the property was seized or repossessed in a non-participating province or the particular supply is a supply (other than a zero-rated supply) made in a non-participating province,

      tax under subsection 165(1) calculated on the fair market value of the property at the time it was seized or repossessed, and

(8) Subsections (1) to (4), (6) and (7) are deemed to have come into force on April 1, 1997.

(9) Subsection (5) applies to lease intervals that begin after March 1997.

1997, c. 10, s. 34(3)

27. (1) Clauses 184(5)(a)(ii)(A) and (B) of the Act are replaced by the following:

        (A) that supply is a zero-rated supply, or

        (B) in the case of property that was, at the time it was transferred, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property, tax would not have been payable had the property been purchased in Canada from the person at that time,

1997, c. 10, s. 178(3)

(2) Clause (A) of the description of A in subparagraph 184(5)(a)(ii) of the Act is replaced by the following:

          (A) if

            (I) the property is situated in a participating province at the particular time, it was transferred before the day that is three years after the implementation date for that province (as defined in section 348) and tax would not have been payable had the property been purchased in Canada from the person at the time it was transferred, or

            (II) the property is situated in a non-participating province at the particular time,

          7%, and

1993, c. 27, s. 48(3)

(3) Paragraph 184(6)(c) of the Act is replaced by the following:

    (c) to have received a supply by way of sale of the property immediately before that time for consideration equal to the consideration for the particular supply, and