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(i) in a business carried on by the
individual or trust with a reasonable
expectation of profit, or
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(ii) if the individual or trust is a registrant,
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(A) in making taxable supplies of the
real property by way of lease, licence
or similar arrangement, or
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(B) in any combination of the uses
described in subparagraph (i) and
clause (A);
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| 1997, c. 10,
s. 90(1)
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(2) Subsection 9(2) of Part I of Schedule
V to the Act is amended by striking out the
word ``or'' at the end of paragraph (d) and
by replacing paragraph (e) with the
following:
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(e) a supply of a residential complex or an
interest in a residential complex; or
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(f) a particular supply to a recipient who is
registered under Subdivision d of Division
V of Part IX of the Act and who has made
an election under this paragraph jointly
with the individual or trust in prescribed
form containing prescribed information and
filed with the Minister with the recipient's
return in which the recipient is required to
report the tax in respect of the supply, if
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(i) the recipient made a taxable supply by
way of sale (in this paragraph referred to
as the ``prior supply'') of the real
property to a person (in this paragraph
referred to as the ``prior recipient'') who
is the individual, trust or settlor of the
trust and that supply is the last supply by
way of sale of the real property to the
prior recipient,
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(ii) the particular day that is the earlier of
the day on which, under the agreement
for the prior supply, the prior recipient
acquired ownership of the real property
and the day the prior recipient acquired
possession of the real property is not
more than one year before the day the
particular supply is made, and
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(iii) the particular supply is made
pursuant to a right or obligation of the
recipient to purchase the real property
that is provided for under the agreement
for the prior supply.
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(3) Subsections (1) and (2) apply to
supplies by way of sale made after October
4, 2000.
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| 2000, c. 30,
s. 113(1)
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23. (1) The portion of the definition
``practitioner'' in section 1 of Part II of
Schedule V to the Act before paragraph (b)
is replaced by the following:
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``practitioner'', in respect of a supply of
optometric, chiropractic, physiotherapy,
chiropodic, podiatric, osteopathic,
audiological, speech therapy, occupational
therapy, psychological or dietetic services,
means a person who
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(a) practises the profession of optometry,
chiropractic, physiotherapy, chiropody,
podiatry, osteopathy, audiology, speech
therapy, occupational therapy,
psychology or dietetics, as the case may
be,
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(2) Subsection (1) applies only to supplies
made in 2001.
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24. (1) Section 7 of Part II of Schedule V
to the Act is amended by adding the
following after paragraph (g):
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(h) speech therapy services;
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(2) Subsection (1) applies only to supplies
made in 2001.
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| 1993, c. 27,
s. 159(1);
1997, c. 10,
s. 99(1)
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25. (1) Section 8 of Part III of Schedule V
to the Act is replaced by the following:
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8. A supply, other than a zero-rated supply,
made by a government, a school authority, a
vocational school, a public college or a
university of a service of instructing
individuals in, or administering examinations
in respect of, courses leading to certificates,
diplomas, licences or similar documents, or
classes or ratings in respect of licences, that
attest to the competence of individuals to
practise or perform a trade or vocation, except
where the supplier has made an election under
this section in prescribed form containing
prescribed information.
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(2) Subsection (1) applies
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(a) to supplies for which all of the
consideration becomes due after October
4, 2000 or is paid after that day without
having become due; and
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(b) to any supply for which consideration
becomes due or is paid on or before that
day if no amount was charged or
collected as or on account of tax under
Part IX of the Act in respect of the supply
on or before that day, except that, with
respect to that supply, section 8 of Part III
of Schedule V to the Act, as enacted by
subsection (1), shall be read without
reference to the words ``except where the
supplier has made an election under this
section in prescribed form containing
prescribed information''.
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| 1997, c. 10,
s. 102(1)
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26. (1) Paragraph 1(b) of Part V.1 of
Schedule V to the Act is replaced by the
following:
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(b) property or a service where the supply is
deemed under Part IX of the Act to have
been made by the charity (other than a
supply that is deemed to have been made
under section 187 of the Act or that is
deemed only under section 136.1 of the Act
to have been made);
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| 1997, c. 10,
s. 102(1)
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(2) Paragraph 1(c) of Part V.1 of Schedule
V to the Act is replaced by the following:
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(c) particular personal property (other than
property that was acquired, manufactured
or produced by the charity for the purpose
of making a supply by way of sale of the
property and property supplied by way of
lease, licence or similar arrangement in
conjunction with an exempt supply by way
of lease, licence or similar arrangement by
the charity of real property) where,
immediately before the time tax would first
become payable in respect of the supply of
the particular property if it were a taxable
supply, that property is used (otherwise than
in making the supply) in commercial
activities of the charity or, in the case of
capital property, primarily in such
activities;
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| 1997, c. 10,
s. 102(1)
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(3) Paragraph 1(l) of Part V.1 of Schedule
V to the Act is replaced by the following:
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(l) real property where the supply is made
by way of sale and, immediately before the
time tax would first become payable in
respect of the supply if it were a taxable
supply, the property is used (otherwise than
in making the supply) primarily in
commercial activities of the charity; or
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(4) Subsection (1) applies to supplies that
are deemed to have been made under
section 136.1 of the Act for lease intervals or
billing periods beginning on or after April
1, 1997.
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(5) Subsections (2) and (3) apply to
supplies for which consideration becomes
due after 1996 or is paid after 1996 without
having become due but do not apply to any
supply in respect of which an amount was
charged or collected as or on account of tax
under Part IX of the Act on or before
October 4, 2000.
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(6) Where
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(a) before 1997 a charity was using
capital property of the charity in making
taxable supplies by way of lease, licence
or similar arrangement of real property,
or of personal property in conjunction
with supplies of real property, that were
included in paragraph 2(f) or 25(f) or (h)
of Part VI of Schedule V to the Act as the
Act then read, and
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(b) because of the enactment of section 1
of Part V.1 of that Schedule, as amended
by subsections (2) and (3), the charity
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(i) is considered to have, at a particular
time, ceased to use the capital
property, or reduced the extent to
which the capital property is used, in
commercial activities of the charity,
upon beginning to use the property for
the purpose of making the charity's
first exempt supply by way of lease,
licence or similar arrangement of real
property, or of personal property in
conjunction with a supply of real
property, included in that section that
would have been a taxable supply
included in any of the said paragraphs
if Part VI of the Schedule had
continued to apply to charities, and
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(ii) is deemed under subsection 200(2)
or 206(4) or (5) of the Act to have made,
immediately before the particular
time, a supply of the capital property,
or a portion of it, and to have collected
tax in respect of that supply,
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the charity is not required to include that
tax in determining the net tax for any
reporting period of the charity and is
deemed, for the purpose of determining the
basic tax content (as defined in subsection
123(1) of the Act) of the capital property, to
have been entitled to recover an amount
equal to the tax as a rebate of tax included
in the description of A in that definition.
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| 1997, c. 10,
s. 104(2)
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27. (1) Paragraph 2(b) of Part VI of
Schedule V to the Act is replaced by the
following:
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(b) property or a service where the supply is
deemed under Part IX of the Act to have
been made by the institution (other than a
supply that is deemed only under section
136.1 of the Act to have been made);
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(2) Subsection (1) applies to supplies that
are deemed to have been made under
section 136.1 of the Act for lease intervals or
billing periods beginning on or after April
1, 1997.
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| 1990, c. 45,
s. 18
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28. (1) Paragraph 25(b) of Part VI of
Schedule V to the Act is replaced by the
following:
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(b) real property where the supply is
deemed under Part IX of the Act to have
been made (other than a supply that is
deemed only under section 136.1 of the Act
to have been made);
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(2) Subsection (1) applies to supplies that
are deemed to have been made under
section 136.1 of the Act for lease intervals
beginning on or after April 1, 1997.
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| 2000, c. 30,
s. 126(2)
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29. (1) Paragraph 1(e) of Part V of
Schedule VI to the Act is replaced by the
following:
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(e) the person maintains evidence
satisfactory to the Minister of the
exportation of the property by the recipient.
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(2) Subsection (1) applies to supplies
made after 2000.
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30. (1) Part V of Schedule VI to the Act is
amended by adding the following after
section 1:
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1.1 A taxable supply made by way of sale to
a recipient (other than a consumer) who is
registered under Subdivision d of Division V
of Part IX of the Act of tangible personal
property (other than property that is an
excisable good or is a continuous transmission
commodity that is to be transported by or on
behalf of the recipient by means of a wire,
pipeline or other conduit), where
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(a) the recipient provides the supplier with
an export certificate (within the meaning of
section 221.1 of the Act), certifying that an
authorization to use the certificate granted
to the recipient under that section is in effect
at the time the supply is made, and discloses
to the supplier the number referred to in
subsection 221.1(4) of the Act and the
expiry date of the authorization; and
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(b) if an authorization granted by the
Minister to use the certificate is not, in fact,
in effect at the time the supply is made or the
recipient does not export the property in the
circumstances described in paragraphs 1(b)
to (d), it is the case that the supplier did not
know and could not reasonably be expected
to have known, at or before the latest time
at which tax in respect of the supply would
have become payable if the supply were not
a zero-rated supply, that the authorization
was not in effect at the time the supply was
made or that the recipient would not so
export the property.
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1.2 A taxable supply made by way of sale to
a recipient who is registered under
Subdivision d of Division V of Part IX of the
Act of property (other than property that is an
excisable good or is a continuous transmission
commodity that is to be transported by or on
behalf of the recipient by means of a wire,
pipeline or other conduit), where
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(a) the recipient provides the supplier with
an export distribution centre certificate
(within the meaning of section 273.1 of the
Act), certifying that an authorization to use
the certificate granted to the recipient under
that section is in effect at the time the supply
is made and that the property is being
acquired for use or supply as domestic
inventory or as added property of the
recipient (as those expressions are defined
in that section), and discloses to the supplier
the number referred to in subsection
273.1(9) of the Act and the expiry date of
the authorization;
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(b) the total amount, included in a single
invoice or agreement, of the consideration
for that supply and for all other supplies, if
any, that are made to the recipient and are
otherwise included in this section is at least
$1000; and
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(c) if an authorization granted by the
Minister to use the certificate is not, in fact,
in effect at the time the supply is made or the
recipient is not acquiring the property for
use or supply as domestic inventory or as
added property (as those expressions are
defined in that section) in the course of
commercial activities of the recipient, it is
the case that, at or before the latest time at
which tax in respect of the supply would
have become payable if the supply were not
a zero-rated supply, the supplier did not
know, and could not reasonably be expected
to have known, that the authorization was
not in effect at the time the supply was made
or that the recipient was not acquiring the
property for that purpose.
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(2) Subsection (1) applies to supplies
made after 2000 except that, with respect to
any supply in respect of which the recipient
provides an export certificate (within the
meaning of section 221.1 of the Act) that is
in effect at the time the supply is made but
was issued before January 1, 2001 and not
renewed before the supply is made, or was
last renewed before January 1, 2001,
paragraph 1.1(a) of Part V of Schedule VI
to the Act, as enacted by subsection (1), shall
be read without reference to the words ``and
discloses to the supplier the number
referred to in subsection 221.1(4) of the Act
and the expiry date of the authorization''.
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31. (1) Schedule VII to the Act is amended
by adding the following after section 5:
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5.1 Goods that are imported solely for the
purpose of fulfilling an obligation under a
warranty to repair or replace the goods if
defective, where replacement goods are
supplied for no additional consideration, other
than shipping and handling charges, and
exported without being consumed or used in
Canada except to the extent reasonably
necessary or incidental to the transportation of
the goods.
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(2) Subsection (1) applies to goods
imported after February 28, 2000.
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32. (1) Schedule VII to the Act is amended
by adding the following after section 8:
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8.1 Particular goods that are imported at any
time by a registrant to whom has been issued
an authorization under section 213.2 of the
Act that is in effect at that time and that are
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(a) processed, distributed or stored in
Canada and subsequently exported without
being consumed or used in Canada except
to the extent reasonably necessary or
incidental to the transportation of the
goods,
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(b) incorporated or transformed into,
attached to, or combined or assembled with,
other goods that are processed in Canada
and subsequently exported without being
consumed or used in Canada except to the
extent reasonably necessary or incidental to
the transportation of those other goods, or
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(c) materials (other than fuel, lubricants and
plant equipment) directly consumed or
expended in the processing in Canada of
other goods that are exported without being
consumed or used in Canada except to the
extent reasonably necessary or incidental to
the transportation of those other goods,
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where
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(d) the particular goods are imported solely
for the purpose of having services
performed that are supplied by the
registrant to a non-resident person,
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(e) throughout the period beginning at the
time the particular goods are imported by
the registrant and ending at the time of the
exportation of the particular goods or the
products (in this section referred to as the
``processed products'') resulting from the
processing referred to in whichever of
paragraphs (a) to (c) applies,
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(i) neither the particular goods nor the
processed products are the property of a
person resident in Canada,
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(ii) the registrant does not have any
proprietary interest in the particular
goods or the processed products, and
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(iii) the registrant is not closely related to
any non-resident person referred to in
paragraph (d) or to any non-resident
person whose property are the particular
goods or the processed products,
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(f) at no time during the period referred to
in paragraph (e) does the registrant transfer
physical possession of the particular goods
or the processed products to another person
in Canada except for the purpose of their
storage, their transportation to or from a
place of storage or their transportation in
the course of being exported,
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(g) the exportation of the particular goods or
the processed products, as the case may be,
occurs within four years after the day on
which the particular goods are accounted
for under section 32 of the Customs Act,
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(h) at the time of that accounting for the
particular goods, the registrant discloses, on
the accounting document, the number
assigned to the registrant under subsection
213.2(1) of the Act, and
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(i) the registrant has provided any security
that is required under section 213.1 of the
Act.
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8.2 For the purpose of section 8.1,
``processing'' includes adjusting, altering,
assembling or disassembling, cleaning,
maintaining, repairing or servicing,
inspecting or testing, labelling, marking,
tagging or ticketing, manufacturing,
producing, packing, unpacking or repacking,
and packaging or repackaging.
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8.3 For the purpose of section 8.1, a
registrant and another person are closely
related to each other if they would be closely
related under section 128 of the Act if the other
person were a registrant resident in Canada.
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(2) Subsection (1) is deemed to have come
into force on March 1, 1992 and applies to
goods imported on or after that day except
that, with respect to goods imported before
February 29, 2000, paragraph 8.1(a) of
Schedule VII to the Act, as enacted by
subsection (1), shall be read without
reference to the words ``distributed or
stored''.
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33. (1) Schedule VII to the Act is amended
by adding the following after section 10:
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11. A particular good that is an item of
domestic inventory, added property or a
customer's good (as those expressions are
defined in section 273.1 of the Act) imported
at any time by a person who is registered under
Subdivision d of Division V of Part IX of the
Act and to whom has been granted an
authorization that is in effect at that time to use
an export distribution centre certificate
(within the meaning of that section), if
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(a) when the particular good is accounted
for under section 32 of the Customs Act, the
person certifies that the authorization is in
effect at that time and discloses the number
referred to in subsection 273.1(9) of the Act
and the effective date and expiry date of the
authorization; and
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(b) the person has provided any security that
is required under section 213.1 of the Act.
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(2) Subsection (1) applies to goods
imported after 2000.
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