Bill C-70

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	DIVISION IV.1
	TAX ON PROPERTY AND SERVICES BROUGHT INTO A PARTICIPATING PROVINCE
Meaning of ``tangible personal property''	220.01 In this Division, ``tangible personal property'' includes a mobile home that is not affixed to land and a floating home.
Carriers	220.02 Where a particular person brings property into a province on behalf of another person, for the purposes of this Division, the other person and not the particular person is deemed to have brought the property into the province.
In transit	220.03 Where at any time a person brings tangible personal property into a province in the course of transporting property from a place outside the province to another place outside the province, and the property is not stored in the province for purposes that are not incidental to the transportation, the person is deemed for the purposes of this Division not to have brought the property into the province at that time.
Selected listed financial institutions	220.04 Where tax under this Division would, but for this section, become payable by a person when the person is a selected listed financial institution, that tax is not payable.
	Subdivision a
	Tax on tangible personal property
Tax in participating province	220.05 (1) Subject to this Part, where at a particular time a person brings tangible per sonal property into a particular participating province from a non-participating province, the person shall pay tax to Her Majesty in right of Canada equal to the amount determined by the formula
	A x B
	where
	A is the tax rate for the particular participating province; and
	B is
	(a) where the property is a specified motor vehicle that the person is required to register under the laws of the partici pating province relating to the registra tion of motor vehicles, the prescribed value,
	(b) where the property is not a specified motor vehicle referred to in paragraph (a) and consideration was paid or payable in respect of a supply of the property made by way of sale at any time to the person by another person with whom the person dealt at arm's length, the lesser of the value of that consideration and the fair market value of the property at the particular time,
	(c) notwithstanding paragraphs (a) and (b), in the case of prescribed property brought into a province in prescribed circumstances, the value determined in the prescribed manner, and
	(d) in any other case, the fair market value of the property at the particular time.
When tax payable	(2) Tax under subsection (1) on property brought into a participating province by a person becomes payable
	(a) in the case of a specified motor vehicle that the person is required to register under the laws of the province relating to the registration of motor vehicles, on the earlier of the day the person so registers the vehicle and the day on or before which the person is required to register the vehicle; and
	(b) in any other case, on the day the property is brought into the province.
Non-taxable property	(3) No tax is payable under subsection (1) in respect of property where
	(a) the recipient of the supply of the property has paid tax under section 220.6 in respect of the property;
	(b) tax under section 220.07 has been paid in respect of the property; or
	(c) the property is included in Part I of Schedule X.
Supply by unregistered non-resident	220.06 (1) Subject to this Part, where at a particular time a person is the recipient of a taxable supply (other than a zero-rated or prescribed supply) of tangible personal prop erty delivered or made available to the person in a participating province, or sent by mail or courier to an address in the participating province, by a non-resident supplier who is not registered under subdivision d of Division V, the person shall pay tax to Her Majesty in right of Canada equal to the amount deter mined by the formula
	A x B
	where
	A is the tax rate for the participating province; and
	B is
	(a) where the property is a specified motor vehicle that the person is required to register under the laws of the province relating to the registration of motor vehicles, the prescribed value,
	(b) where the property is not a specified motor vehicle referred to in paragraph (a) and the supply of the property was made to the person by way of sale by a non-resident person with whom the per son dealt at arm's length, the lesser of the value of the consideration paid or pay able in respect of the supply and the fair market value of the property at the particular time,
	(c) notwithstanding paragraphs (a) and (b), in the case of prescribed property supplied in prescribed circumstances, the value determined in the prescribed man ner, and
	(d) in any other case, the fair market value of the property at the particular time.
When tax payable	(2) Tax under subsection (1) in respect of property supplied to a person in a participating province becomes payable
	(a) in the case of a specified motor vehicle that the person is required to register under the laws of the province relating to the registration of motor vehicles, on the earlier of the day the person so registers the vehicle and the day on or before which the person is required to register the vehicle; and
	(b) in any other case, on the day the property is supplied in the province.
Non-taxable property	(3) No tax is payable under subsection (1) in respect of property where
	(a) the supplier of the property has paid tax under section 220.05 in respect of the property;
	(b) tax under section 220.07 has been paid in respect of the property; or
	(c) the property is included in Part I of Schedule X.
Imported commercial goods	220.07 (1) Subject to this Part, every person who brings into a participating province from a place outside Canada
	(a) a specified motor vehicle, or
	(b) goods that are accounted for as commer cial goods (within the meaning assigned by subsection 212.1(1)) under section 32 of the Customs Act
	and who is liable under that Act to pay duties on the vehicle or goods, or would be so liable if they were subject to duty, shall pay, in addi tion to the tax imposed under section 212, tax calculated at the tax rate for that participating province on the value of the vehicle or goods.
Exception	(2) Tax under subsection (1) does not apply to
	(a) goods, other than a specified motor vehicle, brought into a participating prov ince from a place outside Canada by a registrant whose net tax is determined under section 225.1 or under Part IV or V of the Streamlined Accounting (GST) Regula tions) for consumption, use or supply exclusively in the course of commercial activities of the registrant;
	(b) a mobile home or a floating home that has been used or occupied in Canada as a place of residence for individuals; or
	(c) goods included in Schedule VII.
Value of goods	(3) For the purposes of this section, the value of goods brought into a province is equal to
	(a) in the case of a specified motor vehicle that a person is required to register under the laws of the province relating to the registra tion of motor vehicles, the prescribed value;
	(b) in the case of prescribed property brought into a province in prescribed cir cumstances, the value determined in pre scribed manner; and
	(c) in any other case, the value of the goods determined in accordance with section 215.
When tax payable	(4) Tax under subsection (1) on goods brought into a participating province by a person becomes payable by that person
	(a) in the case of a specified motor vehicle that the person is required to register under the laws of the province relating to the registration of motor vehicles, on the earlier of the day the person so registers the vehicle and the day on or before which the person is required to register the vehicle; and
	(b) in any other case, on the day on which the goods are brought into the province.
	Subdivision b
	Tax on intangible property and services
Tax in participating province	220.08 (1) Subject to this Part, every person who is resident in a particular participating province and is the recipient of a taxable supply made in a non-participating province of intangible personal property or a service that is acquired by the person for consump tion, use or supply primarily in participating provinces shall pay to Her Majesty in right of Canada, each time an amount of consideration for the supply becomes due or is paid without having become due, tax equal to the amount determined by the formula
	A x B x C
	where
	A is the tax rate for the particular participating province;
	B is the value of that consideration that is paid or becomes due at that time; and
	C is the extent (expressed as a percentage) to which the person acquired the property or service for consumption, use or supply in participating provinces.
When tax payable	(2) Tax under subsection (1) that is calcu lated on an amount of consideration for a supply that becomes due at any time, or is paid at any time without having become due, becomes payable at that time.
Non-taxable supplies	(3) No tax is payable under subsection (1) in respect of a supply of intangible personal property or a service included in Part II of Schedule X.
	Subdivision c
	Returns and payment of tax
Returns and payment	220.09 (1) Where tax under this Division becomes payable by a person,
	(a) where the person is a registrant, the person shall, on or before the day on or before which the person's return under section 238 for the reporting period in which the tax became payable is required to be filed, pay the tax to the Receiver General and report the tax in that return; and
	(b) in any other case, the person shall, on or before the last day of the month following the calendar month in which the tax became payable, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed in formation.
Exception	(2) Notwithstanding subsection (1), where tax under section 220.05, 220.06 or 220.07 is payable by a person in respect of a specified motor vehicle that the person is required to register under the laws of a participating province relating to the registration of motor vehicles,
	(a) where the person is a registrant, the person is not required to report the tax in a return, and
	(b) where the person is not a registrant, the person is not required to file a return in respect of the tax,
	and the tax shall be paid to the Receiver Gen eral at the earlier of the time the person regis ters the vehicle and the time at or before which the person is required to register it.
Deduction for prescribed amount	(3) Where tax under this Division becomes payable by a person and all or any portion of that tax is an amount that is prescribed for the purpose of subsection 234(3), that amount shall be deducted from the tax payable in determining the amount required under sub section (1) to be paid.
No return required	(4) Where the amount that a person is required to pay to the Receiver General under subsection (1) is nil, the person is not required to file a return under this Division.
	(2) Subsection (1) comes into force on April 1, 1997.
1990, c. 45, s. 12(1)	206. (1) Paragraph 223(1)(a) of the Act is replaced by the following:
	(a) both the consideration paid or payable by the recipient for the supply and either
	(i) the tax payable in respect of the supply in a manner that clearly indicates the amount of the tax, or
	(ii) the rate of tax payable in respect of the supply and, where the invoice, receipt or agreement relates to taxable supplies and supplies in respect of which no tax is payable, the supplies in respect of which tax at that rate is payable ; or
	(2) Subsection (1) comes into force on April 7, 1997.
1993, c. 27, s. 88(1)	207. (1) Paragraph 225(5)(b) of the Act is replaced by the following:

	(b) an improvement to the complex ac quired, imported or brought into a partici pating province by the registrant after the complex was last acquired by the registrant,
	(2) Subsection (1) comes into force on April 1, 1997.
	208. (1) Subparagraph (a)(ii) of the de scription of B in subsection 225.1(2) of the Act, as enacted by subsection 45(1), is replaced by the following:
	(ii) personal property acquired, im ported or brought into a participating province by the charity for use as capital property of the charity , and
	(2) Paragraph (b) of the description of B in subsection 225.1(2) of the Act, as enacted by subsection 45(1), is replaced by the following:
	(b) 60% of the total of all amounts in respect of specified supplies that may be deducted by the charity under subsection 232(3) or 234(2) or (3) in determining the net tax for the particular reporting period and are claimed in the return under this Division filed for that reporting period,
	(3) Subsections (1) and (2) come into force on April 1, 1997.
	209. (1) The Act is amended by adding the following after section 225.1, as enacted by subsection 45(1):
Selected listed financial institutions	225.2 (1) For the purposes of this Part, a financial institution is a selected listed finan cial institution throughout a reporting period in a fiscal year that ends in a particular taxation year of the financial institution if the financial institution is a listed financial insti tution described in any of subparagraphs 149(1)(a)(i) to (x) during the particular year and the preceding taxation year and

Bill C-70

DIVISION IV.1

TAX ON PROPERTY AND SERVICES BROUGHT INTO A PARTICIPATING PROVINCE