Bill C-70

If you have any questions or comments regarding the accessibility of this publication, please contact us at accessible@parl.gc.ca.

PDF

	2nd Session, 35th Parliament, 45-46 Elizabeth II, 1996-97
	The House of Commons of Canada
	BILL C-70
	An Act to amend the Excise Tax Act, the Federal-Provincial Fiscal Arrangements Act, the Income Tax Act, the Debt Servicing and Reduction Account Act and related Acts
	Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
	PART I
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	EXCISE TAX ACT
	Technical Amendments
1993, c. 27, ss. 10(1), (17)(E)	1. (1) The definitions ``charity'', ``hospital authority'', ``improvement'', ``mobile home'', ``non-profit organization'', ``officer'', ``school authority'', ``short-term accommodation'', ``university'' and ``used tangible personal property'' in subsection 123(1) of the Excise Tax Act are replaced by the following:
``charity'' « organisme de bienfaisan- ce »	``charity'' means a registered charity or registered Canadian amateur athletic association within the meaning assigned to those expressions by subsection 248(1) of the Income Tax Act, but does not include a public institution;
``hospital authority'' « adminis- tration hospita- lière »	``hospital authority'' means an organization that operates a public hospital and that is designated by the Minister as a hospital authority for the purposes of this Part;
``improvemen t'' « améliora- tions »	``improvement'', in respect of property of a person, means any property or service supplied to, or goods imported by, the person for the purpose of improving the property, to the extent that the consideration paid or payable by the person for the property or service or the value of the goods is, or would be if the person were a taxpayer under the Income Tax Act, included in determining the cost or, in the case of property that is capital property of the person, the adjusted cost base to the person of the property for the purposes of that Act;
``mobile home'' « maison mobile »	``mobile home'' means a building, the manufacture and assembly of which is completed or substantially completed, that is equipped with complete plumbing, electrical and heating facilities and that is designed to be moved to a site for installation on a foundation and connection to service facilities and to be occupied as a place of residence, but does not include any travel trailer, motor home, camping trailer or other vehicle or trailer designed for recreational use;
``non-profit organization'' « organisme à but non lucratif »	``non-profit organization'' means a person (other than an individual, an estate, a trust, a charity, a public institution, a municipality or a government) that was organized and is operated solely for a purpose other than profit, no part of the income of which is payable to, or otherwise available for the personal benefit of, any proprietor, member or shareholder thereof unless the proprietor, member or shareholder is a club, a society or an association the primary purpose and function of which is the promotion of amateur athletics in Canada;
``officer'' « cadre »	``officer'' means a person who holds an office;
``school authority'' « adminis- tration scolaire »	``school authority'' means an organization that operates an elementary or secondary school in which it provides instruction that meets the standards of educational instruction established by the government of the province in which the school is operated;
``short- term accommoda- tion'' « logement provisoire »	``short-term accommodation'' means a residential complex or a residential unit that is supplied to a recipient by way of lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence or lodging, where the period throughout which the individual is given continuous occupancy of the complex or unit is less than one month and, for the purposes of sections 252.1, 252.2 and 252.4,
	(a) includes any type of overnight shelter (other than shelter on a train, trailer, boat or structure that has means of, or is capable of being readily adapted for, self-propulsion) when supplied as part of a tour package (within the meaning assigned by subsection 163(3)) that also includes food and the services of a guide, and
	(b) does not include a complex or unit when it
	(i) is supplied to the recipient under a timeshare arrangement, or
	(ii) is included in that part of a tour package that is not the taxable portion of the tour package (within the meaning assigned to those expressions by subsection 163(3));
``university'' « université »	``university'' means a recognized degree-granting institution or an organization that operates a college affiliated with, or a research body of, such an institution;
``used tangible personal property'' « bien meuble corporel d'occasion »	``used tangible personal property'' means tangible personal property that has been used in Canada;
1993, c. 27, s. 10(1)	(2) Paragraphs (a) and (b) of the definition ``commercial activity'' in subsection 123(1) of the Act are replaced by the following:
	(a) a business carried on by the person (other than a business carried on without a reasonable expectation of profit by an individual, a personal trust or a partnership, all of the members of which are individuals), except to the extent to which the business involves the making of exempt supplies by the person,
	(b) an adventure or concern of the person in the nature of trade (other than an adventure or concern engaged in without a reasonable expectation of profit by an individual, a personal trust or a partnership, all of the members of which are individuals), except to the extent to which the adventure or concern involves the making of exempt supplies by the person, and
1990, c. 45, s. 12(1)	(3) Paragraph (d) of the definition ``financial instrument'' in subsection 123(1) of the Act is replaced by the following:
	(d) an interest in a partnership, a trust or the estate of a deceased individual, or any right in respect of such an interest,
1993, c. 27, s. 10(7)	(4) Paragraphs (j) and (j.1) of the definition ``financial service'' in subsection 123(1) of the Act are replaced by the following:
	(j) the service of investigating and recommending the compensation in satisfaction of a claim where
	(i) the claim is made under a marine insurance policy, or
	(ii) the claim is made under an insurance policy that is not in the nature of accident and sickness or life insurance and
	(A) the service is supplied by an insurer or by a person who is licensed under the laws of a province to provide such a service, or
	(B) the service is supplied to an insurer or a group of insurers by a person who would be required to be so licensed but for the fact that the person is relieved from that requirement under the laws of a province,
	(j.1) the service of providing an insurer or a person who supplies a service referred to in paragraph (j) with an appraisal of the damage caused to property, or in the case of a loss of property, the value of the property, where the supplier of the appraisal inspects the property, or in the case of a loss of the property, the last-known place where the property was situated before the loss,
1990, c. 45, s. 12(1)	(5) Paragraph (q) of the definition ``financial service'' in subsection 123(1) of the Act is replaced by the following:
	(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),
	where the supplier is a person who provides management or administrative services to the corporation, partnership or trust,
1990, c. 45, s. 12(1); 1993, c.27, s. 10(10)	(6) The definition ``insurance policy'' in subsection 123(1) of the Act is amended by striking out the word ``and'' at the end of subparagraph (a)(iii) and by replacing paragraph (b) with the following:
	(b) a policy or contract in the nature of accident and sickness insurance, whether the policy is issued, or the contract is entered into, by an insurer, and
	(c) a bid, performance, maintenance or payment bond issued in respect of a construction contract;
1990, c. 45, s. 12(1)	(7) The portion of the definition ``public college'' in subsection 123(1) of the Act before paragraph (b) is replaced by the following:
``public college'' « collège public »	``public college'' means an organization that operates a post-secondary college or post-secondary technical institute
	(a) that receives from a government or a municipality funds that are paid for the purpose of assisting the organization in the ongoing provision of educational services to the general public, and
1993, c. 29, s. 10(15)	(8) The portion of the definition ``residential complex'' in subsection 123(1) of the Act after paragraph (e) is replaced by the following:
	but does not include a building, or that part of a building, that is a hotel, a motel, an inn, a boarding house, a lodging house or other similar premises, or the land and appurtenances attributable to the building or part, where the building is not described in paragraph (c) and all or substantially all of the supplies of residential units in the building or part by way of lease, licence or similar arrangement are, or are expected to be, for periods of continuous possession or use of less than sixty days;
1993, c. 27, s. 10(18)	(9) The portion of paragraph (c) of the definition ``residential trailer park'' in subsection 123(1) of the Act before subparagraph (i) is replaced by the following:
	(c) are supplied, or are intended to be supplied, by way of lease, licence or similar arrangement under which continuous possession or use of a site is provided for a period of at least
1993, c. 27, s. 10(16), s. 204 (Sch. II, item 1(a)(F)	(10) Paragraph (b) of the definition ``residential unit'' in subsection 123(1) of the Act is replaced by the following:
	(b) a suite or room in a hotel, a motel, an inn, a boarding house or a lodging house or in a residence for students, seniors, individuals with a disability or other individuals, or




1990, c. 45, s. 12(1)	(11) The definition ``person'' in subsection 123(1) of the English version of the Act is replaced by the following:
``person'' « personne »	``person'' means an individual, a partnership, a corporation, the estate of a deceased individual, a trust, or a body that is a society, union, club, association, commission or other organization of any kind;
	(12) Subsection 123(1) of the Act is amended by adding the following in alphabetical order:
``direct cost'' « coût direct »	``direct cost'' of a supply of tangible personal property or a service means the total of all amounts each of which is the consideration paid or payable by the supplier
	(a) for the property or service if it was purchased by the supplier for the purpose of making a supply by way of sale of the property or service, or
	(b) for an article or material (other than capital property of the supplier) that was purchased by the supplier, to the extent that the article or material is to be incorporated into or is to form a constituent or component part of the property, or is to be consumed or expended directly in the process of manufacturing, producing, processing or packaging the property
	and, for the purpose of this definition, the consideration paid or payable by a supplier for property or a service is deemed to include any tax, duty or fee that is payable by the supplier in respect of the acquisition or importation of the property or service and that is either prescribed for the purposes of section 154 and neither recovered nor recoverable by the supplier or is imposed under this Part;
``inter vivos trust'' Version anglaise seulement	``inter vivos trust'' means a trust other than a testamentary trust;
``office'' « charge »	``office'' has the meaning assigned by subsection 248(1) of the Income Tax Act, but does not include
	(a) the position of trustee in bankruptcy,
	(b) the position of receiver (including the position of a receiver within the meaning assigned by subsection 266(1)), or
	(c) the position of trustee of a trust or personal representative of a deceased individual where the person who acts in that capacity is entitled to an amount for doing so that is included in computing, for the purposes of that Act, the person's income or, where the person is an individual, the person's income from a business;
``personal represen- tative'' « représen- tant personnel »	``personal representative'', of a deceased individual or the estate of a deceased individual, means the executor of the individual's will, the administrator of the estate or any person who is responsible under the appropriate law for the proper collection, administration, disposition and distribution of the assets of the estate;
``personal trust'' « fiducie personnelle »	``personal trust'' means
	(a) a testamentary trust, or
	(b) an inter vivos trust that is a personal trust (within the meaning assigned by subsection 248(1) of the Income Tax Act) all the beneficiaries (other than contingent beneficiaries) of which are individuals and all the contingent beneficiaries of which, if any, are individuals, charities or public institutions;
``public institution'' « institution publique »	``public institution'' means a registered charity (within the meaning assigned by subsection 248(1) of the Income Tax Act) that is a school authority, a public college, a university, a hospital authority or a local authority determined under paragraph (b) of the definition ``municipality'' to be a municipality;
``self- contained domestic establish- ment'' « établisse- ment domestique autonome »	``self-contained domestic establishment'' has the meaning assigned by subsection 248(1) of the Income Tax Act;
``telecommu- nication service'' « service de télécommu- nication »	``telecommunication service'' means
	(a) the service of emitting, transmitting or receiving signs, signals, writing, images or sounds or intelligence of any nature by wire, cable, radio, optical or other electromagnetic system, or by any similar technical system, or
	(b) making available for such emission, transmission or reception telecommunications facilities of a person who carries on the business of supplying services referred to in paragraph (a);
``telecommu- nications facility'' « installation de télécommu- nication »	``telecommunications facility'' means any facility, apparatus or other thing (including any wire, cable, radio, optical or other electromagnetic system, or any similar technical system, or any part thereof) that is used or is capable of being used for telecommunications;
``testament- ary trust'' « fiducie testamen- taire »	``testamentary trust'' has the meaning assigned by subsection 248(1) of the Income Tax Act;
	(13) The definitions ``charity'' and ``non-profit organization'' in subsection 123(1) of the Act, as enacted by subsection (1), and the definitions ``direct cost'' and ``public institution'' in subsection 123(1) of the Act, as enacted by subsection (12), are deemed to have come into force on January 1, 1997 except that
	(a) the said definitions ``charity'' and ``public institution'' also apply in relation to any supply made before that day by a person who is on that day a public institution as defined on that day where consideration for the supply becomes due on or after that day or is paid on or after that day without having become due; and

Bill C-70

BILL C-70

PART I

EXCISE TAX ACT

Technical Amendments