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Bill C-24

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    (c) it is not 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 person knew or could reasonably be expected to have known either that

      (i) the recipient would not export the gas as soon after the end of the period as is reasonable having regard to the circumstances surrounding the exportation and, if applicable, to the normal business practice of the recipient, or

      (ii) the gas would not be exported

        (A) in the same measure as was stored or taken up except for any loss due to its use by a carrier as fuel or compressor gas for transporting the gas by pipeline, and

        (B) in the same state except to the extent of any processing or alteration reasonably necessary or incidental to its transportation or necessary to recover natural gas liquids or ethane from the gas at a straddle plant.

15.4 A supply made by a supplier to a non-resident recipient who is not registered under Subdivision d of Division V of Part IX of the Act of a service of taking up surplus electricity of the recipient for a period and returning the electricity to the recipient at the end of the period or of deferring delivery of electricity supplied to the recipient at the beginning of a period until the end of the period, if

    (a) the electricity is exported by the supplier or recipient

      (i) in the same measure and state except for any consumption or alteration reasonably necessary or incidental to its transportation, and

      (ii) as soon after the end of the period as is reasonable having regard to the circumstances surrounding the exportation and, if applicable, to the normal business practice of the exporter; and

    (b) at the end of the period, the requirement under the National Energy Board Act with respect to the holding of a valid licence, order or permit for the export of the electricity issued under that Act is met.

(2) Sections 15.1, 15.3 and 15.4 of Part V of Schedule VI to the Act, as enacted by subsection (1), apply to supplies of continuous transmission commodities delivered in Canada, and to supplies of services, for which consideration becomes due after August 7, 1998 or is paid after that day without having become due except that, with respect to supplies made before November 1998,

    (a) paragraph 15.1(a) of Part V of Schedule VI to the Act, as enacted by subsection (1), shall be read without reference to the words ``who is not registered under Subdivision d of Division V of Part IX of the Act''; and

    (b) paragraph 15.1(b) of Part V of that Schedule, as enacted by subsection (1), shall be read as follows:

    (b) any service, supplied by the registrant to the first buyer, of arranging for or effecting the exchange of the commodity for the property of the same class or kind, if the first buyer is a non-resident person who is not registered under Subdivision d of Division V of Part IX of the Act.

(3) Section 15.2 of Part V of Schedule VI to the Act, as enacted by subsection (1), applies to supplies made after October 1998.

1990, c. 45, s. 18

132. (1) The portion of the definition ``continuous outbound freight movement'' in subsection 1(1) of Part VII of Schedule VI to the Act after paragraph (b) is replaced by the following:

    if, after the shipper of the property transfers possession of the property to a carrier and before the property is exported, it is not (except to the extent reasonably necessary or incidental to its transportation) further processed, transformed or altered in Canada, other than, in the case of natural gas being transported by pipeline, to recover natural gas liquids or ethane from the gas at a straddle plant;

(2) Subsection (1) is deemed to have come into force on August 7, 1998 and applies to supplies of transportation services for which consideration becomes due after that day or is paid after that day without having become due.

1990, c. 45, s. 18

133. (1) Paragraph 3(c) of Part VII of Schedule VI to the Act is replaced by the following:

    (c) the origin of the continuous journey is within the taxation area, but outside Canada; or

(2) Subsection (1) applies to supplies for which all of the consideration becomes due after 1999 or is paid after 1999 without having become due.

1990, c. 45, s. 18

134. (1) Section 4 of Part VII of Schedule VI to the Act is replaced by the following:

4. A supply of any of the following services made by a person in connection with the supply by that person of a passenger transportation service included in section 2 or 3:

    (a) a service of transporting an individual's baggage; and

    (b) a service of supervising an unaccompanied child.

5. A supply by a person of a service of issuing, delivering, amending, replacing or cancelling a ticket, voucher or reservation for a supply by that person of a passenger transportation service that would, if it were completed in accordance with the agreement for that supply, be included in section 2 or 3.

5.1 A supply to a person of a service of acting as an agent in making a supply on behalf of that person of a service that would, if it were completed in accordance with the agreement for that supply, be included in any of sections 2 to 5.

(2) Subsection (1) applies to any supply of a service relating to a passenger transportation service if all of the consideration for the supply becomes due after 1999 or is paid after 1999 without having become due.

1990, c. 45, s. 18

135. (1) Section 5 of Schedule VII to the Act is replaced by the following:

5. Goods that are imported by a particular person if the goods are supplied to the particular person by a non-resident person for no consideration, other than shipping and handling charges, as replacement parts or as replacement property under a warranty.

(2) Subsection (1) applies to goods imported after December 10, 1998.

1997, c. 10, s. 254

136. (1) Paragraph 3(a) of Part II of Schedule IX to the French version of the Act is replaced by the following:

    a) il expédie le bien à une destination dans la province donnée, précisée dans le contrat de factage visant le bien, ou en transfère la possession à un transporteur public ou un consignataire qu'il a chargé, pour le compte de l'acquéreur, d'expédier le bien à une telle destination;

(2) Subsection (1) is deemed to have come into force on December 10, 1998.

137. (1) Part II of Schedule IX to the Act is amended by adding the following after section 3:

4. If

    (a) a supply of tangible personal property is made by way of lease, licence or similar arrangement under which continuous possession or use of the property is provided for a period of no more than three months,

    (b) because of paragraph 136.1(1)(a) of the Act, there is deemed to be more than one supply of the property under that arrangement, and

    (c) in the absence of that paragraph, the supply of the property under that arrangement would be made in a province,

all the supplies of the property that are, because of that paragraph, deemed to be made under that arrangement are made in that province.

(2) Subsection (1) applies in determining the province in which a supply made after December 10, 1998 is made.

1997, c. 10, s. 254

138. (1) Section 4 of Part VI of Schedule IX to the Act is replaced by the following:

4. A supply of any of the following services made by a person in connection with the supply by that person of a passenger transportation service is made in a province if the supply of the passenger transportation service is made in the province:

    (a) a service of transporting an individual's baggage; and

    (b) a service of supervising an unaccompanied child.

4.1 A supply by a person of a service of issuing, delivering, amending, replacing or cancelling a ticket, voucher or reservation for a supply by that person of a passenger transportation service is made in a province if the supply of the passenger transportation service would, if it were completed in accordance with the agreement for that supply, be made in the province.

(2) Subsection (1) applies to any supply of a service relating to a passenger transportation service if all of the consideration for the supply becomes due after 1999 or is paid after 1999 without having become due.

1997, c. 10, s. 254

139. (1) Section 14 of Part I of Schedule X to the Act is replaced by the following:

14. Property that is brought into a participating province by a person if it is supplied to the person for no consideration, other than shipping and handling charges, as a replacement part or as replacement property under a warranty.

(2) Subsection (1) applies to property brought into a participating province after December 10, 1998.

140. (1) The Act is amended by replacing the expression ``the Tobacco Tax Act, R.S.N.S. 1989, c. 470'' with the expression ``Part III of the Revenue Act, S.N.S. 1995-96, c. 17'' in the following provisions:

    (a) the definition ``Nova Scotia cigarettes'' in subsections 23.34(1) and 68.169(1);

    (b) the definitions ``designated retail vendor'' and ``designated wholesale vendor'' in subsections 23.36(1) and 97.5(1);

    (c) subsection 23.36(2);

    (d) the definitions ``designated retail vendor'' and ``licensed wholesale vendor'' in subsection 68.165(1);

    (e) the definitions ``Nova Scotia manufactured tobacco'' and ``Nova Scotia tobacco sticks'' in subsection 68.169(1); and

    (f) subparagraphs 1(c)(i) and (e)(i) of Schedule II.

(2) The amendments made under subsection (1) apply

    (a) in the case of the amendments to the definition ``Nova Scotia cigarettes'' in subsection 23.34(1) of the Act and the definition ``Nova Scotia manufactured tobacco'', after November 28, 1996; and

    (b) in any other case, after March 1996.

1997, c. 10

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

141. (1) Subsection 208(2) of 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, being chapter 10 of the Statutes of Canada, 1997, is amended by replacing paragraph (b) of the description of A in subsection 225.2(2) of the Excise Tax Act, as it reads in that subsection 208(2), with the following:

      (b) all amounts each of which is tax under subsection 165(1) in respect of a supply (other than a supply to which paragraph (c) applies) made by a person other than a selected listed financial institution to the financial institution that would, but for an election made under section 150, have become payable by the financial institution during the particular reporting period, and

(2) Subsection 208(2) of the Act is amended by replacing paragraph (b) of the description of B in subsection 225.2(2) of the Excise Tax Act, as it reads in that subsection 208(2), with the following:

      (b) all amounts each of which would be an input tax credit of the financial institution for the particular reporting period of the financial institution in respect of property or a service if tax became payable in respect of the supply of the property or service equal to the amount included for the particular reporting period under paragraph (b) or (c) of the description of A in respect of the supply;

142. (1) Paragraph 257(c) of the French version of the Act is replaced by the following:

    c) l'alinéa 129(7)b) de cette loi ne s'applique pas au calcul de la taxe nette de l'organisme pour sa période de déclaration qui comprend ce moment.

(2) Subsection (1) is deemed to have come into force on March 20, 1997.

R.S., c. B-3; 1992, c. 27, s. 2

BANKRUPTCY AND INSOLVENCY ACT

1992, c. 27, s. 22

143. (1) Subsection 54(2.1) of the Bankruptcy and Insolvency Act is replaced by the following:

Certain Crown claims

(2.1) For greater certainty, subsection 224(1.2) of the Income Tax Act shall not be construed as classifying as secured claims, for the purpose of subsection (2), claims of Her Majesty in right of Canada or a province for amounts that could be subject to a demand under

    (a) subsection 224(1.2) of the Income Tax Act;

    (b) any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, or an employee's premium, or employer's premium, as defined in the Employment Insurance Act, and of any related interest, penalties or other amounts; or

    (c) any provision of provincial legislation that has a similar purpose to subsection 224(1.2) of the Income Tax Act, or that refers to that subsection, to the extent that it provides for the collection of a sum, and of any related interest, penalties or other amounts, where the sum

      (i) has been withheld or deducted by a person from a payment to another person and is in respect of a tax similar in nature to the income tax imposed on individuals under the Income Tax Act, or

      (ii) is of the same nature as a contribution under the Canada Pension Plan if the province is a ``province providing a comprehensive pension plan'' as defined in subsection 3(1) of the Canada Pension Plan and the provincial legislation establishes a ``provincial pension plan'' as defined in that subsection.

(2) Subsection (1) is deemed to have come into force on November 30, 1992, except that before June 30, 1996 the references in paragraph 54(2.1)(b) of the Act, as enacted by subsection (1), to the Employment Insurance Act shall be read as references to the Unemployment Insurance Act.

1992, c. 27, s. 24(1)

144. (1) Subsection 60(1.1) of the Act is replaced by the following:

Certain Crown claims

(1.1) Unless Her Majesty consents, no proposal shall be approved by the court that does not provide for the payment in full to Her Majesty in right of Canada or a province, within six months after court approval of the proposal, of all amounts that were outstanding at the time of the filing of the notice of intention or of the proposal, if no notice of intention was filed, and are of a kind that could be subject to a demand under

    (a) subsection 224(1.2) of the Income Tax Act;

    (b) any provision of the Canada Pension Plan or of the Employment Insurance Act that refers to subsection 224(1.2) of the Income Tax Act and provides for the collection of a contribution, as defined in the Canada Pension Plan, or an employee's premium, or employer's premium, as defined in the Employment Insurance Act, and of any related interest, penalties or other amounts; or

    (c) any provision of provincial legislation that has a similar purpose to subsection 224(1.2) of the Income Tax Act, or that refers to that subsection, to the extent that it provides for the collection of a sum, and of any related interest, penalties or other amounts, where the sum

      (i) has been withheld or deducted by a person from a payment to another person and is in respect of a tax similar in nature to the income tax imposed on individuals under the Income Tax Act, or

      (ii) is of the same nature as a contribution under the Canada Pension Plan if the province is a ``province providing a comprehensive pension plan'' as defined in subsection 3(1) of the Canada Pension Plan and the provincial legislation establishes a ``provincial pension plan'' as defined in that subsection.

(2) Subsection (1) is deemed to have come into force on November 30, 1992, except that before June 30, 1996 the references in paragraph 60(1.1)(b) of the Act, as enacted by subsection (1), to the Employment Insurance Act shall be read as references to the Unemployment Insurance Act.

1992, c. 27, s. 36(1)

145. (1) Subsection 69(1) of the Act is amended by striking out the word ``and'' at the end of paragraph (b) and by replacing paragraph (c) with the following:

    (c) Her Majesty in right of Canada may not exercise Her rights under

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