Bill C-70

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	(iii) all amounts each of which is an amount, in respect of a supply made during the earlier 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 in subsection 225.2(2) apply, equal to tax calculated on the cost to the other person of supplying the property or service to the financial institution excluding any remuneration to employees of the other person, the cost of financial services and tax under this Part,
	E is the total of
	(i) 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 in subsection 225.2(2)) of the financial institution for the earlier reporting period or preceding reporting periods of the financial institution claimed by the financial institution in the return under Division V filed by the financial institution for the earlier reporting period, and
	(ii) 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 in subsection 225.2(2)) of the financial institution for the earlier reporting period of the financial institution in respect of property or a service if tax became payable during the earlier reporting period in respect of the supply of the property or service equal to the amount included for the earlier reporting period under subparagraph (ii) or (iii) of the description of D in respect of the supply,
	F is the financial institution's percentage for the participating province for the immediately preceding taxation year, determined in accordance with the prescribed rules that apply to that financial institution,
	G is the tax rate for the participating province,
	H is 7%,
	I is the number of days in the particular reporting period after March 1997,
	J is the number of fiscal quarters ending on or after April 1, 1997 and in the particular reporting period, and
	K is the total of
	(i) all tax (other than an amount of tax that is prescribed for the purposes of paragraph (a) of the description of F in subsection 225.2(2)) 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 fiscal quarter or that was paid by the financial institution during the fiscal quarter without having become payable, and
	(ii) all amounts each of which is an amount, in respect of a supply made during the fiscal quarter of property or a service to which the financial institution and another person have elected to have paragraph (c) of the description of A in subsection 225.2(2) apply, equal to tax payable 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,
	B is the total of all amounts that became collectible and all other amounts collected by the financial institution in the fiscal quarter as or on account of tax under subsection 165(2), and
	C is the financial institution's instalment base for the particular reporting period determined under paragraph 237(2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1.
Information requirements	(3) For the purposes of this section, subsections 169(4) and (5) and 223(2) apply with respect to any amount that is included in the description of K in paragraphs (2)(c) and (d) as if that amount were an input tax credit.
	242. (1) The Act is amended by adding the following after section 363:
	DIVISION XI
	TAX INCLUSIVE PRICING
Definitions	364. The definitions in this section apply in this Division.
``electronic advertise- ment'' « publicité électroni- que »	``electronic advertisement'' of a registrant includes any audible or visual communication sent or transmitted by radio or television broadcast, or through an electronic or telecommunication medium, by or on the direction of the registrant, whether in response to an enquiry or otherwise, that describes or depicts any property or service that the registrant offers or is willing to supply, but does not include any such communication that does not indicate, either in the communication itself or in any other electronically transmitted message that relates to the communication, the price or consideration for the property or service to which the communication or message relates.
``government supplier'' « fournisseur gouverne- mental »	``government supplier'' means a supplier (other than a prescribed supplier) who is
	(a) Her Majesty in right of Canada;
	(b) a board, commission, corporation or other body established under an Act of Parliament to perform any function or duty on behalf of the Government of Canada;
	(c) any corporation all the shares of the capital stock of which (other than qualifying shares of directors) are owned or held directly or indirectly by, or, if there is no capital stock of the corporation, all the members of the board of directors or governing body of which are appointed by, Her Majesty in right of Canada, the Governor in Council, a Minister of Her Majesty in right of Canada or a board, commission, corporation or other body referred to in paragraph (b); or
	(d) a prescribed person.
``national catalogue'' « catalogue national »	``national catalogue'' means a prescribed publication.
``price information'' « renseigne- ments sur le prix »	``price information'' in respect of property or a service means
	(a) a price tag for the property or service,
	(b) a price list in respect of the property or service,
	(c) an advertisement that in any way indicates the price or consideration for which the supplier of the property or service will supply the property or service to a consumer,
	(d) any oral or written offer made by the supplier of the property or service to a consumer that indicates the price or consideration for which the supplier will supply the property or service to the consumer, or
	(e) any oral or written contract for the supply of property or a service to a consumer that indicates or sets out the price or consideration for the property or service,
	but does not include a national catalogue.
``price list'' « liste de prix »	``price list'' in respect of property or a service means any list, menu, catalogue or other document, whether written, printed or electronically produced or disseminated, that indicates the price or consideration for which the supplier of the property or service will supply the property or service to a consumer.
``price tag'' « étiquette de prix »	``price tag'' for property or a service means any tag, sticker, label, sign, impression, ticket or other device (other than a prescribed tag, sticker, label, sign, impression, ticket or device) that is printed on, embossed on, impressed on, attached to, displayed in conjunction with or in relation to, or issued for, or to be used for or in relation to, the property or service and that indicates visually the price or consideration for which the supplier of the property will supply the property to a consumer and includes the portion of any package containing the property on which the price of the property is printed, embossed or impressed for visual reading, but does not include a postage stamp (as defined in subsection 2(1) of the Canada Post Corporation Act).
``specified supply'' « fourniture détermi- née »	``specified supply'' means a supply (other than a prescribed supply) that is
	(a) a supply of a service made by a bank;
	(b) a supply of a passenger transportation service
	(i) made by a person operating a railway to which Part III of the Canada Transportation Act applies,
	(ii) made by a person who operates an air service (within the meaning assigned by section 55 of the Canada Transportation Act) to which Part II of that Act applies, or
	(iii) made by a person who operates an extra-provincial bus undertaking (within the meaning assigned by subsection 2(1) of the Motor Vehicle Transport Act, 1987);
	(c) a supply of a telecommunication service that is within the legislative authority of Parliament; or
	(d) a supply of a prescribed property or service.
``written advertise- ment'' « publicité écrite »	``written advertisement'' of a registrant includes any written or printed communication sent or distributed by or on the direction of the registrant, whether in response to an enquiry or otherwise, that describes or depicts any property or service that the registrant offers or is willing to supply, but does not include
	(a) any such communication that does not indicate, either in the communication itself, or in other written or printed material accompanying or that usually accompanies it, the price or consideration for any property or service to which the communication or material relates; or
	(b) a national catalogue.


Price informa- tion - specified supplies	365. (1) Every registrant (other than a prescribed registrant or a government supplier) who makes or offers to make a specified supply of property or a service to a consumer
	(a) shall indicate in all price information in respect of the property or service the total of
	(i) the consideration for the supply, and
	(ii) all taxes imposed on the consumer under Part II and this Part in respect of the supply,
	and, where in the price information there is any indication of the consideration without tax, in such a way that the indication of that total is at least as large and prominent as any indication of the consideration without tax; and
	(b) where the manner or form of indicating such a total or the standards to be met in indicating such a total are prescribed for the purposes of this subsection, shall indicate that total in that prescribed manner and form and in compliance with those prescribed standards.
Price informa- tion - government suppliers	(2) Every government supplier (other than a prescribed supplier) that makes or offers to make a taxable supply of property or a service (other than a prescribed supply) to a consumer
	(a) shall indicate in all price information in respect of the property or service the total of
	(i) the consideration for the supply, and
	(ii) all taxes imposed on the consumer under Part II and this Part in respect of the supply,
	and, where in the price information there is any indication of the consideration without tax, in such a way that the indication of that total is at least as large and prominent as any indication of the consideration without tax; and
	(b) where the manner or form of indicating such a total or the standards to be met in indicating such a total are prescribed for the purposes of this subsection, shall indicate that total in that prescribed manner and form and in compliance with those prescribed standards.
Total may include provincial taxes	(3) Where tax is imposed under the laws of a province in respect of the supply of property or a service, the total required under subsection (1) or (2) to be indicated in respect of such a property or service supplied or offered to be supplied to a consumer by a registrant or a government supplier, as the case may be, may include all taxes imposed on the consumer under the laws of the province in respect of the supply.
Exception	(4) Subsection (1) does not apply to a registrant in respect of a prescribed class of price information in respect of a specified supply of a property or a service of a prescribed class of properties or services made in prescribed circumstances if the registrant indicates the price or consideration for the property or service in a manner and form, and in compliance with standards, prescribed for that class of price information in respect of supplies of that class of properties or services when made in those circumstances.
Exception	(5) Subsection (2) does not apply to a government supplier in respect of a prescribed class of price information in respect of a taxable supply of a property or a service of a prescribed class of properties or services made in prescribed circumstances if the government supplier indicates the price or consideration for the property or service in a manner and form, and in compliance with standards, prescribed for that class of price information in respect of supplies of that class of properties or services when made in those circumstances.
Interpro- vincial written advertise- ments	366. (1) Every registrant (other than a prescribed registrant) who is not resident in a participating province and who distributes, or causes to be distributed, in the province, or sends, or causes to be sent, to a person at an address in the province a written advertisement of the registrant that can reasonably be considered to be directed to one or more consumers and that in any way indicates the price of, or the consideration for the supply of, any property or service that the registrant offers or is willing to supply shall
	(a) indicate the total of
	(i) the consideration for the supply of the property or service, and
	(ii) the tax in respect of the supply of the property or service when made in the province; or
	(b) comply in respect of the advertisement with prescribed standards.
Interpro- vincial electronic advertise- ments	(2) Every registrant (other than a prescribed registrant) who is not resident in a participating province and who transmits, or causes to be transmitted, into the province an electronic advertisement of the registrant that can reasonably be considered to be directed to one or more consumers and that in any way indicates the price of, or the consideration for the supply of, any property or service that the registrant offers or is willing to supply shall
	(a) indicate the total of
	(i) the consideration for the supply of the property or service, and
	(ii) the tax in respect of the supply of the property or service when made in the province; or
	(b) comply in respect of the advertisement with prescribed standards.
National catalogues	(3) Every publisher of a national catalogue that in any way indicates the price or consideration for any property or service listed, enumerated, described or depicted in the catalogue shall either
	(a) indicate every price for a property or service in the catalogue as the total of
	(i) the consideration for the supply of the property or service, and
	(ii) the tax payable in respect of the supply of the property or service when made in a participating province; or
	(b) indicate in prescribed manner and form and in compliance with prescribed standards, on the cover or cover page of the catalogue and on every second page of the catalogue thereafter, that the prices indicated in the catalogue do not include tax.
Agents of suppliers	367. Where an agent of a registrant or of a government supplier supplies or offers to supply property or a service on behalf of the registrant or government supplier, the agent shall comply with this Division.
Offence	368. (1) Every person who fails to comply with this Division is guilty of an offence and liable on summary conviction to a fine of not less than $100 and not more than $5,000 or to imprisonment for not more than 30 days or to both.
Continuing offence	(2) Where a failure to comply with this Division continues on more than one day, each day on which the failure occurs constitutes a separate offence.
Proof of the offence	(3) In a prosecution of an offence under this Division, it is sufficient proof of the offence to establish that it was committed by an employee or agent of the accused whether the employee or agent is identified or has been prosecuted for the offence, unless the accused establishes that the offence was committed without the accused's knowledge or consent and that due diligence was exercised to prevent its commission.
Factors to be considered	(4) In determining the punishment for an offence under this section the court may consider
	(a) whether the offence was deliberate or inadvertent;
	(b) the incompetence, negligence or lack of concern of the offender;

Bill C-70

DIVISION XI

TAX INCLUSIVE PRICING