1st Session, 36th Parliament,
46-47-48 Elizabeth II, 1997-98-99

The House of Commons of Canada

BILL C-88

An Act to amend the Excise Tax Act, a related Act, the Cultural Property Export and Import Act, the Customs Act, the Excise Act, the Income Tax Act and the Tax Court of Canada Act

      Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

Short title

1. This Act may be cited as the Sales Tax and Excise Tax Amendments Act, 1999.

R.S., c. E-15; R.S., c. 15 (1st Supp.), cc. 1, 7, 42 (2nd Supp.), cc. 18, 28, 41, 42 (3rd Supp.), cc. 12, 47 (4th Supp.); 1988, c. 65; 1989, c. 22; 1990, c. 45; 1991, c. 42; 1992, cc. 1, 27, 28, 29; 1993, cc. 25, 27, 28, 38; 1994, cc. 9, 13, 21, 29, 41; 1995, cc. 5, 36, 41, 46; 1996, cc. 10, 20, 21, 23, 31; 1997, cc. 10, 26; 1998, cc. 19, 21; 1999, c. 17

EXCISE TAX ACT

1990, c. 45, s. 1(1)

2. (1) The portion of subsection 2(1) of the Excise Tax Act before the definition ``accredited representative'' is replaced by the following:

Definitions

2. (1) The following definitions apply in this section, Parts I to VIII (other than section 121) and Schedules I to IV:

1990, c. 45, s. 1(3)

(2) The definition ``this Act'' in subsection 2(1) of the Act is replaced by the following:

``this Act''
« présente loi »

``this Act'' means this Act except Part IX and Schedules V to X ;

(3) Subsections (1) and (2) are deemed to have come into force on March 20, 1997.

1994, c. 29, s. 5(1)

3. (1) Subsection 23.21(2) of the Act is replaced by the following:

Exemption for limited exports

(2) The excise tax imposed under subsection 23.2(1) is not payable by a manufacturer or producer in respect of a particular quantity of a category of tobacco product exported at a time in a calendar year if the total quantity of that category of tobacco product, including the particular quantity, exported by the manufacturer or producer in the calendar year up to and including that time does not exceed 2 1/2% of the total quantity of that category of tobacco product manufactured or produced by the manufacturer or producer in the preceding calendar year.

(2) Subsection (1) is deemed to have come into force on April 1, 1999, except that, in applying subsection 23.21(2) of the Act, as enacted by subsection (1), before January 2000, the reference in that subsection to ``2 1/2%'' shall be read as a reference to ``2 5/8%''.

1991, c. 42, s. 1

4. Subsection 34(2) of the French version of the Act is replaced by the following:

Intérêts et pénalité

(2) Sous réserve des paragraphes (3) à (6), la personne qui n'a pas versé au receveur général la totalité d'un montant visé au paragraphe (1), au plus tard le jour où elle serait tenue de le verser si la loi édictant la présente partie était sanctionnée avant le 31 mai 1991, est tenue de payer des intérêts au taux prescrit et une pénalité de six pour cent par an calculés sur les arriérés - pénalité et intérêts compris - pour chaque jour de retard.

1995, c. 46, s. 1(1); 1998, c. 19, s. 277(1)

5. (1) Part V.1 of the Act is repealed.

(2) Subsection (1) is deemed to have come into force on October 30, 1998.

1995, c. 46, s. 2

6. (1) Subsection 66(2) of the Act is replaced by the following:

Where exemption not applicable

(2) Subsection (1) does not apply in respect of taxes imposed under Part III in respect of tobacco products mentioned in Schedule II.

(2) Subsection (1) is deemed to have come into force on October 30, 1998.

1995, c. 46, s. 3

7. (1) Subsection 68.1(2) of the Act is replaced by the following:

Exception

(2) Subsection (1) does not apply in respect of taxes imposed under Part III in respect of tobacco products mentioned in Schedule II.

(2) Subsection (1) is deemed to have come into force on October 30, 1998.

1995, c. 46, s. 4

8. (1) The portion of subsection 79(1) of the Act before paragraph (a) is replaced by the following:

Penalty and interest on default in paying taxes

79. (1) Subject to subsections (1.1) to (3), a person who defaults in paying tax within the time prescribed by subsection 78(4), in addition to the amount in default, shall pay

(2) Subsection (1) is deemed to have come into force on October 30, 1998.

1990, c. 45, s. 12(1); 1993, c. 27, s. 10(18)

9. (1) The definitions ``mineral'' and ``specified Crown agent'' in subsection 123(1) of the Act are replaced by the following:

``mineral''
« minéral »

``mineral'' includes ammonite gemstone, bituminous sands, calcium chloride, coal, gravel, kaolin, oil shale, silica, sand and petroleum, natural gas and related hydrocarbons;

``specified Crown agent''
« mandataire désigné »

``specified Crown agent'' means

      (a) a prescribed agent of Her Majesty in right of Canada, or

      (b) an agent of Her Majesty in right of a province

        (i) that pays tax because of an agreement under section 32 of the Federal-Provincial Fiscal Arrangements Act entered into by the government of the province, or

        (ii) that is prescribed;

1997, c. 10, s. 150(3)

(2) The portion of the definition ``direct cost'' in subsection 123(1) of the Act after paragraph (b) is replaced by the following:

    and, for the purposes of this definition, the consideration paid or payable by a supplier for property or a service is deemed to include

      (c) tax under this Part payable by the supplier in respect of the acquisition or importation of the property or service by the supplier ,

      (d) if the property was brought into a participating province from a non-participating province , any tax under this Part payable by the supplier in respect of the bringing in of the property into the participating province, and

      (e) any tax, duty or fee payable in respect of the acquisition or importation of the property or service by the supplier and prescribed for the purposes of section 154, excluding the portion of the tax (other than tax that became payable under the first paragraph of section 16 of An Act respecting the Québec sales tax, R.S.Q., c. T-0.1, by the supplier at a time when the supplier was a registrant as defined in section 1 of that Act), duty or fee that is recovered or recoverable by the supplier;

1997, c. 10, s. 1(5)

(3) Paragraph (q) of the definition ``financial service'' in subsection 123(1) of the Act is replaced by the following:

      (q) the provision, to an investment plan (as defined in subsection 149(5)) or any corporation, partnership or trust whose principal activity is the investing of funds, of

        (i) a management or administrative service, or

        (ii) any other service (other than a prescribed service),

      if the supplier is a person who provides management or administrative services to the investment plan , corporation, partnership or trust,

1993, c. 27, s. 10(18)

(4) Paragraphs (b) and (c) of the definition ``related convention supplies'' in subsection 123(1) of the Act are replaced by the following:

      (b) entertainment,

      (c) except for the purposes of section 252.4, property or services that are food or beverages or are supplied to the person under a contract for catering, or

(5) Paragraph (c) of the definition ``related convention supplies'' in subsection 123(1) of the Act, as enacted by subsection (4), is replaced by the following:

      (c) except for the purposes of subsection 167.2(1) and section 252.4, property or services that are food or beverages or are supplied to the person under a contract for catering, or

(6) Subsection 123(1) of the Act is amended by adding the following in alphabetical order:

``continuous transmission commodity''
« produit transporté en continu »

``continuous transmission commodity'' means electricity, crude oil, natural gas, or any tangible personal property, that is transportable by means of a wire, pipeline or other conduit;

``secured creditor''
« créancier garanti »

``secured creditor'' means

      (a) a particular person who has a security interest in the property of another person, or

      (b) a person who acts for or on behalf of the particular person with respect to the security interest and includes

        (i) a trustee appointed under a trust deed relating to a security interest,

        (ii) a receiver or receiver-manager appointed by the particular person or appointed by a court on the application of the particular person,

        (iii) a sequestrator, or

        (iv) any other person performing a function similar to that of a person referred to in any of subparagraphs (i) to (iii);

``security interest''
« droit en garantie »

``security interest'' means any interest in property that secures payment or performance of an obligation, and includes an interest created by or arising out of a debenture, mortgage, hypothec, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind whatever, however or whenever arising, created, deemed to arise or otherwise provided for;

``straddle plant''
« installation de traitement complémen-
taire »

``straddle plant'' means a natural gas processing plant devoted primarily to the recovery of natural gas liquids or ethane from natural gas that is transported by pipeline to the plant by a common carrier of natural gas;

(7) The definition ``mineral'' in subsection 123(1) of the Act, as enacted by subsection (1), is deemed to have come into force on December 17, 1990.

(8) The definition ``specified Crown agent'' in subsection 123(1) of the Act, as enacted by subsection (1), is deemed to have come into force on December 11, 1998.

(9) Subsection (2) applies to supplies for which consideration becomes due after 1996 or is paid after 1996 without having become due, except that

    (a) paragraph (d) of the definition ``direct cost'' in subsection 123(1) of the Act, as enacted by subsection (2), applies only with respect to supplies for which consideration becomes due after March 1997 or is paid after March 1997 without having become due; and

    (b) with respect to any supply made on or before November 26, 1997, other than a supply in respect of which the supplier charges the recipient an amount as tax under Part IX of the Act,

      (i) if all of the consideration for the supply became due or was paid before April 1997, paragraph (e) of that definition shall be read as follows:

      (e) any tax, duty or fee payable in respect of the acquisition or importation of the property or service by the supplier and prescribed for the purposes of section 154, excluding the portion of the tax, duty or fee that is recovered or recoverable by the supplier;

      and

      (ii) if any consideration for the supply becomes due after March 1997 or is paid after March 1997 without having become due, that paragraph shall be read as follows:

      (e) any tax, duty or fee payable in respect of the acquisition or importation of the property or service by the supplier and prescribed for the purposes of section 154;

(10) Subsection (3) is deemed to have come into force on December 17, 1990 except that, with respect to any supply for which all the consideration became due or was paid before July 30, 1998,

    (a) if consideration for the supply became due or was paid before December 8, 1994 and the supplier did not, before that day, charge or collect any amount as or on account of tax under Part IX of the Act in respect of the supply, paragraph (q) of the definition ``financial service'' in subsection 123(1) of the Act, as enacted by subsection (3), shall be read as follows:

      (q) the provision of management or administrative services to a corporation, partnership or trust the principal activity of which is the investing of funds on behalf of shareholders, members or other persons,

    and

    (b) if the consideration for the supply became due after December 7, 1994 or was paid after that day without having become due and

      (i) the supplier did not, before July 30, 1998, charge or collect any amount as or on account of tax under that Part in respect of the supply, or

      (ii) the supplier charged or collected an amount as or on account of tax under that Part in respect of the supply and the Minister of National Revenue received, before July 29, 1998,

        (A) an application for a rebate under subsection 261(1) of the Act in respect of the amount, or

        (B) a return under Division V of that Part in which a deduction was claimed in respect of an adjustment, refund or credit of the amount under subsection 232(1) of the Act,

    that paragraph shall be read as follows:

      (q) the provision, to a corporation, partnership or trust the principal activity of which is the investing of funds, of

        (i) a management or administrative service, or

        (ii) any other service (other than a prescribed service),

      if the supplier is a person who provides management or administrative services to the corporation, partnership or trust,

(11) Subsection (4) applies to property and services acquired, imported or brought into a participating province in connection with a convention, all of the supplies of admissions to which are made after February 24, 1998.

(12) Subsection (5) applies to property and services acquired, imported or brought into a participating province in connection with a convention, all of the supplies of admissions to which are made after the day on which the notice of a Ways and Means motion in respect of this Act was laid before the House of Commons.

(13) The definitions ``continuous transmission commodity'' and ``straddle plant'' in subsection 123(1) of the Act, as enacted by subsection (6), are deemed to have come into force on August 7, 1998.