Bill C-50

Excise Act, 2001

Amendments to the Act

50. Section 2 of the Excise Act, 2001 is amended by adding the following in alphabetical order:

51. (1) Subsection 5(1) of the Act is replaced by the following:

5. (1) For the purposes of subsections 30(1), 32(1) and 32.1(1), section 61, subsections 70(1) and 88(1) and sections 230 and 231, if one of two or more persons, with the knowledge and consent of the rest of them, has anything in the person’s possession, it is deemed to be in the custody and possession of each and all of them.

(2) The portion of subsection 5(2) of the Act before paragraph (a) is replaced by the following:

(2) In this section and in subsections 30(1), 32(1) and 32.1(1), section 61 and subsections 70(1) and 88(1), “possession” means not only having in one’s own personal possession but also knowingly

52. (1) Subsection 23(1) of the Act is replaced by the following:

23. (1) The Minister may refuse to issue a licence or registration to a person if the Minister has reason to believe

(b) that the refusal is otherwise in the public interest.

(2) Section 23 of the Act is amended by adding the following after subsection (2):

53. The Act is amended by adding the following after section 32:

54. (1) The portion of subsection 38(2) of the Act before paragraph (a) is replaced by the following:

(2) Subject to subsections (2.1) and (3), no person shall deliver a container of imported manufactured tobacco or cigars that does not have printed on it or affixed to it tobacco markings and other prescribed information to

(2) Section 38 of the Act is amended by adding the following after subsection (2):

(3) Subsections (1) and (2) are deemed to have come into force on February 27, 2008.

55. (1) Section 47 of the Act is renumbered as subsection 47(1) and is amended by adding the following:

(2) Subsection (1) is deemed to have come into force on February 27, 2008.

56. (1) Subsection 53(1) of the Act is replaced by the following:

53. (1) A special duty is imposed, at the rates set out in section 1 of Schedule 3, on imported manufactured tobacco that is delivered to a duty free shop and that is not stamped.

(2) Subsection (1) applies to imported manufactured tobacco that is delivered after February 26, 2008.

57. (1) Subsection 54(4) of the Act is replaced by the following:

(4) The special duty is not imposed on traveller’s tobacco imported by an individual for their personal use if duty under section 42 was previously imposed on the tobacco and the tobacco is stamped.

(2) Subsection (1) is deemed to have come into force on February 27, 2008.

58. (1) The Act is amended by adding the following after section 180:

(2) Subsection (1) applies to imported manufactured tobacco that is black stock and that is, after February 26, 2008,

(a) delivered to a duty free shop or customs bonded warehouse or to a person for use as ships’ stores in accordance with the Ships’ Stores Regulations; or

(b) exported for delivery to a foreign duty free shop or as foreign ships’ stores.

59. Section 206 of the Act is amended by adding the following after subsection (2):

60. The portion of section 214 of the Act before paragraph (a) is replaced by the following:

214. Every person who contravenes section 25, 27 or 29, subsection 32.1(1) or section 60 or 62 is guilty of an offence and liable

61. (1) Subparagraph 216(2)(a)(ii) of the Act is replaced by the following:

(ii) $0.17 multiplied by the number of tobacco sticks to which the offence relates,

(2) Subparagraph 216(3)(a)(ii) of the Act is replaced by the following:

(ii) $0.255 multiplied by the number of tobacco sticks to which the offence relates,

62. Paragraph 240(b) of the Act is replaced by the following:

(b) $0.361448 per tobacco stick that was removed in contravention of that subsection, and

63. (1) The portion of paragraph 2(a) of Schedule 1 to the Act before subparagraph (i) is replaced by the following:

(a) $0.074975 per stick, if the tobacco sticks are black stock

(2) Paragraph 2(b) of Schedule 1 to the Act is replaced by the following:

(b) $0.085 per stick, in any other case.

(3) Subsections (1) and (2) are deemed to have come into force on February 27, 2008.

64. (1) The portion of paragraph 3(a) of Schedule 1 to the Act before subparagraph (i) is replaced by the following:

(a) $2.49915 per 50 grams or fraction of 50 grams contained in any package, if the manufactured tobacco is black stock

(2) Paragraph 3(b) of Schedule 1 to the Act is replaced by the following:

(b) $2.8925 per 50 grams or fraction of 50 grams contained in any package, in any other case.

(3) Subsections (1) and (2) come into force, or are deemed to have come into force, on July 1, 2008.

65. (1) Paragraphs 1(b) and (c) of Sched- ule 3 to the Act are replaced by the following:

(b) $0.075 per stick, in the case of tobacco sticks; and

(c) $2.50 per 50 grams or fraction of 50 grams contained in any package, in the case of manufactured tobacco other than cigarettes or tobacco sticks.

(2) Paragraph 1(b) of Schedule 3 to the Act, as enacted by subsection (1), is deemed to have come into force on February 27, 2008.

(3) Paragraph 1(c) of Schedule 3 to the Act, as enacted by subsection (1), comes into force, or is deemed to have come into force, on July 1, 2008.

66. (1) Paragraphs 2(b) and (c) of Sched- ule 3 to the Act are replaced by the following:

(b) $0.075 per stick, in the case of tobacco sticks; and

(c) $2.50 per 50 grams or fraction of 50 grams contained in any package, in the case of manufactured tobacco other than cigarettes or tobacco sticks.

(2) Paragraph 2(b) of Schedule 3 to the Act, as enacted by subsection (1), is deemed to have come into force on February 27, 2008.

(3) Paragraph 2(c) of Schedule 3 to the Act, as enacted by subsection (1), comes into force, or is deemed to have come into force, on July 1, 2008.

67. (1) Paragraph 3(b) of Schedule 3 to the Act is replaced by the following:

(b) $0.075 per stick, in the case of tobacco sticks; and

(2) Subsection (1) is deemed to have come into force on February 27, 2008.

68. (1) Paragraphs 4(b) and (c) of Sched- ule 3 to the Act are replaced by the following:

(b) $0.095724 per stick, in the case of tobacco sticks; and

(c) $2.3001 per 50 grams or fraction of 50 grams contained in any package, in the case of tobacco products other than cigarettes or tobacco sticks.

(2) Paragraph 4(b) of Schedule 3 to the Act, as enacted by subsection (1), is deemed to have come into force on February 27, 2008.

(3) Paragraph 4(c) of Schedule 3 to the Act, as enacted by subsection (1), comes into force, or is deemed to have come into force, on July 1, 2008.

Application

69. For the purposes of applying the provisions of the Customs Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount shall be determined and interest shall be computed on it as though

(a) section 63, paragraph 1(b) of Schedule 3 to the Act, as enacted by subsection 65(1), paragraph 2(b) of Schedule 3 to the Act, as enacted by subsection 66(1), section 67 and paragraph 4(b) of Schedule 3 to the Act, as enacted by subsection 68(1), had come into force on February 27, 2008; and

(b) section 64, paragraph 1(c) of Schedule 3 to the Act, as enacted by subsection 65(1), paragraph 2(c) of Schedule 3 to the Act, as enacted by subsection 66(1), and paragraph 4(c) of Schedule 3 to the Act, as enacted by subsection 68(1), had come into force on July 1, 2008.

Related Amendments

Customs Tariff

70. (1) The definition “spirits” in section 21 of the Customs Tariff is amended by striking out the word “or” at the end of paragraph (a) and by adding the following after that paragraph:

(2) For the purposes of applying the provisions of the Excise Act, 2001 and of the Customs Act that provide for the payment of, or the liability to pay, interest in respect of any amount, the amount shall be determined and interest shall be computed on it as though this section had come into force on February 27, 2008.

(3) Subsection (1) is deemed to have come into force on February 27, 2008.

71. (1) Subsection 92(3) of the Act is replaced by the following:

(3) This section does not apply to any duty imposed under the Excise Act, 2001 in respect of manufactured tobacco that is manufactured in Canada and imported manufactured tobacco that is stamped in accordance with that Act.

(2) Subsection (1) is deemed to have come into force on February 27, 2008.

PART 3

AMENDMENTS IN RESPECT OF THE GOODS AND SERVICES TAX AND HARMONIZED SALES TAX (GST/HST)

Excise Tax Act

72. (1) Subsection 162(2) of the Excise Tax Act is amended by striking out the word “or” at the end of paragraph (b), by adding the word “or’’ at the end of paragraph (c) and by adding the following after paragraph (c):

(2) Subsection 162(3) of the Act is replaced by the following:

(3) Subsection (2) does not apply to a supply of a right to take or remove forestry products, products that grow in water, fishery products, minerals or peat, a right of entry or user relating thereto or a right referred to in paragraph (2)(d), if the supply is made to

(a) a consumer; or

(b) a person who is not a registrant and who acquires the right in the course of a business of the person of making supplies of the products, minerals, peat or electricity to consumers.

(3) Subsections (1) and (2) apply to

(a) any supply made on or after February 26, 2008; and

(b) any supply made before February 26, 2008, but only in respect of the portion of the consideration for the supply that becomes due, or is paid without having become due, on or after February 26, 2008.

73. (1) Subparagraph 191(1)(b)(i) of the Act is replaced by the following:

(i) gives possession or use of the complex to a particular person under a lease, licence or similar arrangement (other than an arrangement, under or arising as a consequence of an agreement of purchase and sale of the complex, for the possession or occupancy of the complex until ownership of the complex is transferred to the purchaser under the agreement) entered into for the purpose of its occupancy by an individual as a place of residence,

(2) The portion of subparagraph 191(1)(b)(ii) of the Act before clause (A) is replaced by the following:

(ii) gives possession or use of the complex to a particular person under an agreement for

(3) Paragraph 191(1)(c) of the Act is replaced by the following:

(c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of the complex with the particular person, is the first individual to occupy the complex as a place of residence after substantial completion of the construction or renovation,

(4) Paragraph 191(1)(d) of the Act is replaced by the following:

(d) to have made and received, at the later of the time the construction or substantial renovation is substantially completed and the time possession or use of the complex is so given to the particular person or the complex is so occupied by the builder, a taxable supply by way of sale of the complex, and

(5) Subparagraph 191(3)(b)(i) of the Act is replaced by the following:

(i) gives, to a particular person who is not a purchaser under an agreement of purchase and sale of the complex, possession or use of any residential unit in the complex under a lease, licence or similar arrangement entered into for the purpose of the occupancy of the unit by an individual as a place of residence,

(6) The portion of subparagraph 191(3)(b)(i.1) of the Act before clause (A) is replaced by the following:

(i.1) gives possession or use of any residential unit in the complex to a particular person under an agreement for

(7) Paragraph 191(3)(c) of the Act is replaced by the following:

(c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of a residential unit in the complex with the particular person, is the first individual to occupy a residential unit in the complex as a place of residence after substantial completion of the construction or renovation,

(8) Paragraph 191(3)(d) of the Act is replaced by the following:

(d) to have made and received, at the later of the time the construction or substantial renovation is substantially completed and the time possession or use of the unit is so given to the particular person or the unit is so occupied by the builder, a taxable supply by way of sale of the complex, and

(9) Subparagraph 191(4)(b)(i) of the Act is replaced by the following:

(i) gives, to a particular person who is not a purchaser under an agreement of purchase and sale of the complex, possession or use of any residential unit in the addition under a lease, licence or similar arrangement entered into for the purpose of the occupancy of the unit by an individual as a place of residence,

(10) The portion of subparagraph 191(4)(b)(i.1) of the Act before clause (A) is replaced by the following:

(i.1) gives possession or use of any residential unit in the addition to a particular person under an agreement for

(11) Paragraph 191(4)(c) of the Act is replaced by the following:

(c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of a residential unit in the addition with the particular person, is the first individual to occupy a residential unit in the addition as a place of residence after substantial completion of the construction of the addition,

(12) Paragraph 191(4)(d) of the Act is replaced by the following:

(d) to have made and received, at the later of the time the construction of the addition is substantially completed and the time possession or use of the unit is so given to the particular person or the unit is so occupied by the builder, a taxable supply by way of sale of the addition, and

(13) The portion of subsection 191(10) of the Act before paragraph (c) is replaced by the following:

(10) For the purposes of this section, if

(a) a builder of a residential complex or an addition to a multiple unit residential complex makes a supply of the complex or a residential unit in the complex or addition by way of lease, licence or similar arrangement and the supply is an exempt supply included in section 6.1 or 6.11 of Part I of Schedule V,

(b) the recipient of the supply is acquiring the complex or unit for use or supply in the course of making exempt supplies and, as part of an exempt supply, possession or use of the complex, unit or residential units in the complex is given by the recipient under a lease, licence or similar arrangement under which occupancy of the complex or unit is given to an individual as a place of residence or lodging, and

(14) For the purposes of subsection (15), the particular time in respect of a residential complex or an addition to a residential complex is the later of

(a) the time the construction or substantial renovation of the residential complex or addition is substantially completed, and

(b) the earlier of the time the builder of the complex or addition first gives possession or use of the complex, or of a residential unit in the complex or addition, to a person for the purpose of the occupancy of the complex or unit by an individual as a place of residence and the time the complex or a residential unit in the complex or addition is occupied by the builder as a place of residence.

(15) Subsections (1) to (12) apply in respect of a residential complex or an addition to a residential complex if the particular time is

(a) after February 26, 2008; or

(b) on or before February 26, 2008 and the builder of the complex or addition, as the case may be,

(i) would have been deemed under section 191 of the Act to have made, at the particular time, a taxable supply by way of sale of the complex or addition if that section, as amended by subsections (1) to (13), had applied at that time, and

(ii) has reported an amount as or on account of tax, as a result of the builder applying section 191 of the Act in respect of the complex or addition, in the builder’s return under Division V of Part IX of the Act for any reporting period the return for which is filed on or before February 26, 2008 or is required under that Division to be filed on or before a day that is on or before February 26, 2008.

(16) For the purposes of subsection (17), the particular time in respect of a residential complex or an addition to a residential complex is the later of

(a) the time the construction or substantial renovation of the complex or addition is substantially completed, and

(b) the time possession of the complex or of a residential unit in the complex or addition is first given by a builder of the complex or addition to a person who is acquiring the complex or unit for use or supply in the course of making exempt supplies if, as part of an exempt supply, possession or use of the complex, unit or residential units in the complex is given by the person under a lease, licence or similar arrangement under which occupancy of the complex or unit is given to an individual as a place of residence or lodging.

(17) Subsection (13) applies in respect of a residential complex or an addition to a residential complex if the particular time is

(a) after February 26, 2008; or

(b) on or before February 26, 2008 and the builder of the complex or addition, as the case may be,

(i) would have been deemed under section 191 of the Act to have made, at the particular time, a taxable supply by way of sale of the complex or addition if that section, as amended by subsections (1) to (13), had applied at that time, and

(ii) has reported an amount as or on account of tax, as a result of the builder applying section 191 of the Act in respect of the complex or addition, in the builder’s return under Division V of Part IX of the Act for any reporting period the return for which is filed on or before February 26, 2008 or is required under that Division to be filed on or before a day that is on or before February 26, 2008.

(18) For the purposes of the Act, if a person

(a) is the builder of a residential complex or of an addition to a multiple unit residential complex,

(b) is deemed under subsection 191(1), (3) or (4) of the Act to have made and received, at a particular time that is after February 26, 2008, a taxable supply by way of sale of the residential complex or addition and to have paid as a recipient and to have collected as a supplier a particular amount of tax in respect of that supply, and

(c) has not claimed or deducted an amount (in this subsection referred to as an “unclaimed credit”) in respect of property or a service in determining the net tax for any reporting period of the person the return for which is filed on or before February 26, 2008 or is required under Division V of Part IX of the Act to be filed on or before a day that is on or before February 26, 2008 and

(i) the property or service, in a partic- ular reporting period that ends on or before February 26, 2008,

(A) was acquired, imported or brought into a participating province for consumption or use in making the taxable supply, or

(B) was, in relation to the complex or addition, acquired, imported or brought into a participating province and would have been acquired, imported or brought into the participating province for consumption or use in making the taxable supply if section 191 of the Act were read as that section is amended by this Act, and

(ii) the unclaimed credit is, or would be if section 191 of the Act were read as that section is amended by this Act, an input tax credit of the person,

the unclaimed credit of the person is deemed to be an input tax credit of the person for the reporting period of the person that includes February 26, 2008 and not to be an input tax credit of the person for any other reporting period.

(19) For the purposes of this section,

(a) subsection 191(9) of the Act applies in determining the time the construction or substantial renovation of a residential complex or an addition to a residential complex is substantially completed; and

(b) subsection 191(10) of the Act, as amended by subsection (13), applies in determining the time possession of a residential complex or a residential unit in a residential complex or addition to a residential complex is given to a person.

74. (1) The portion of paragraph 191.1(2)(b) of the Act before subparagraph (i) is replaced by the following:

(b) possession or use of at least 10% of the residential units in the complex is intended to be given for the purpose of their occupancy as a place of residence or lodging by

(2) Subparagraphs 191.1(2)(b)(vi) and (vii) of the Act are replaced by the following:

(vi) individuals whose eligibility for occupancy of the units as a place of residence or lodging, or for reduced payments in respect of their occupancy as a place of residence or lodging, is dependent on a means or income test,

(vii) individuals for whose benefit no other persons (other than public sector bodies) pay consideration for supplies that include giving possession or use of the units for occupancy by the individuals as a place of residence or lodging and who either pay no consideration for the supplies or pay consideration that is significantly less than the consideration that could reasonably be expected to be paid for comparable supplies made by a person in the business of making such supplies for the purpose of earning a profit, or

(3) For the purposes of subsection (4), the particular time in respect of a residential complex or an addition to a residential complex is the later of

(a) the time the construction or substantial renovation of the residential complex or addition is substantially completed, and

(b) the earlier of the time the builder of the complex or addition first gives possession or use of the complex or of a residential unit in the complex or addition to a person for the purpose of the occupancy of the complex or unit by an individual as a place of residence and the time the complex or a residential unit in the complex or addition is occupied by the builder as a place of residence.

(4) Subsections (1) and (2) apply in respect of a residential complex or an addition to a residential complex if the particular time is

(a) after February 26, 2008; or

(b) on or before February 26, 2008 and the builder of the complex or addition, as the case may be,

(i) would have been deemed under section 191 of the Act to have made, at the particular time, a taxable supply by way of sale of the complex or addition if that section, as amended by subsections 73(1) to (13), had applied at that time, and

(ii) has reported an amount as or on account of tax, as a result of the builder applying section 191 of the Act in respect of the complex or addition, in the builder’s return under Division V of Part IX of the Act for any reporting period the return for which is filed on or before February 26, 2008 or is required under that Division to be filed on or before a day that is on or before February 26, 2008.

(5) For the purposes of this section,

(a) subsection 191(9) of the Act applies in determining the time the construction or substantial renovation of a residential complex or an addition to a residential complex is substantially completed; and

(b) subsection 191(10) of the Act, as amended by subsection 73(13), applies in determining the time possession of a residential complex or a residential unit in a residential complex or addition to a residential complex is given to a person.

75. (1) The Act is amended by adding the following after section 236.3:

(2) Subsection (1) applies to any reporting period that ends on or after February 26, 2008.

(3) Despite any other provision of this Act, sections 191, 191.1 and 256.2 of the Act shall be read as those sections are amended by this Act in applying section 236.4 of the Act, as enacted by subsection (1).

76. (1) The portion of subsection 256.1(1) of the Act before the formula is replaced by the following:

256.1 (1) If an exempt supply of land described by section 6.1 or 6.11 of Part I of Schedule V is made to a particular lessee who is acquiring the land for the purpose of making a particular supply of property or a service that includes the land or a particular supply of a lease, licence or similar arrangement in respect of property that includes the land, and the particular supply

(a) is an exempt supply of property or a service, other than a supply that is exempt only by virtue of paragraph 6(b) of Part I of Schedule V, that

(ii) is described by section 7 of Part I of Schedule V, other than an exempt supply described by paragraph 7(a) of that Part made to a person described in subparagraph 7(a)(ii) of that Part, and

(b) will result in the particular lessee being deemed under any of subsections 190(3) to (5) and section 191 to have made a supply of property that includes the land at a particular time,

the Minister shall, subject to subsection (2), pay a rebate, to each person (in this subsection referred to as the “landlord”) who is an owner or lessee of the land and who is not the particular lessee, equal to the amount determined by the formula

(2) Subsection (1) applies in respect of

(a) a supply of land made to a particular lessee that is deemed under any of subsections 190(3) to (5) and section 191 of the Act to have made, after February 26, 2008, another supply of property that includes the land; and

(b) a supply of land made by a person to a particular lessee if

(i) the particular lessee was deemed under any of subsections 190(3) to (5) and section 191 of the Act to have made, on or before February 26, 2008, another supply of property that includes the land,

(ii) the supply would be included in section 6.11 of Part I of Schedule V to the Act if that section were read as that section is enacted by this Act, and

(iii) the person did not, on or before February 26, 2008, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply or any other supply of the land made by the person that would be included in section 6.1 or 6.11 of Part I of Schedule V to the Act if that section were read as that section is enacted by this Act.

(3) If paragraph (2)(b) applies,

(a) each person (in this subsection referred to as the “landlord”) who is an owner or lessee of the land and who is not the particular lessee may, despite subsection 256.1(2) of the Act, file an application for a rebate under subsection 256.1(1) of the Act on or before February 26, 2010;

(b) the application may, despite subsection 262(2) of the Act, be the second application of the landlord for the rebate if the landlord has filed, on or before February 26, 2008, another application for the rebate and the other application has been assessed before the landlord files the application;

(c) for the purposes of Part IX of the Act in respect of the application, sections 6.1 and 6.11 of Part I of Schedule V to the Act shall be read as those sections are enacted by this Act; and

(d) a rebate is not payable under subsection 256.1(1) of the Act, as amended by subsection (1), to a person who is not a landlord of the land at the time the application for the rebate is filed.

77. (1) Clause (a)(ii)(A) of the definition “qualifying residential unit” in subsection 256.2(1) of the Act is replaced by the following:

(A) for the purpose of making exempt supplies of the unit that are included in section 5.1, 6.1, 6.11 or 7 of Part I of Schedule V,

(2) Subparagraph 256.2(3)(a)(ii) of the Act is replaced by the following:

(ii) is a builder of a residential complex, or of an addition to a multiple unit residential complex, that gives possession or use of a residential unit in the complex or addition to another person under a lease entered into for the purpose of its occupancy by an individual as a place of residence that results in the particular person being deemed under section 191 to have made and received a taxable supply by way of sale (in this subsection referred to as the “deemed purchase”) of the complex or addition,

(3) Section 256.2 of the Act is amended by adding the following after subsection (6):

(4) Subsections (1) and (2) apply in respect of

(a) a taxable supply by way of sale

(i) of a residential complex, or of an addition to a multiple unit residential complex, that is deemed to have been made under section 191 of the Act, if tax in respect of the supply is deemed under that section to have been paid after February 26, 2008, or

(ii) of a residential complex, or of an interest in a residential complex, to a person from another person, if tax under Part IX of the Act in respect of the supply first becomes payable after February 26, 2008; and

(b) a taxable supply by way of sale

(i) of a residential complex, or of an addition to a multiple unit residential complex, that is deemed to have been made under section 191 of the Act, if

(A) tax in respect of the supply is deemed under that section to have been paid by a person on a particular day that is on or before February 26, 2008,

(B) the person has reported the tax in the person’s return under Division V of Part IX of the Act for the reporting period of the person that includes the particular day, and

(C) the person has remitted all net tax remittable, if any, as reported in that return, or

(ii) of a residential complex, or of an interest in a residential complex, to a person that is not a builder of the complex from another person, if tax under Part IX of the Act in respect of the supply first becomes payable on or before February 26, 2008 and the person has paid all of the tax.

(5) Subsection (3) is deemed to have come into force on July 1, 2006.

(6) If paragraph (4)(b) applies,

(a) the person referred to in that paragraph may, despite paragraph 256.2(7)(a) of the Act, file, on or before February 26, 2010, an application for a rebate in respect of the tax under subsection 256.2(3) of the Act; and

(b) the application may, despite subsection 262(2) of the Act, be the second application of the person for the rebate if the person has filed, on or before February 26, 2008, another application for the rebate and the other application has been assessed before the person files the application.

78. (1) Section 6.1 of Part I of Schedule V to the Act is replaced by the following:

6.1 A supply of property that is

(a) land, or

(b) a building, or that part of a building, that consists solely of residential units

made by way of lease, licence or similar arrangement to a recipient (in this section referred to as a “lessee”) for a lease interval (within the meaning assigned by subsection 136.1(1) of the Act) throughout which the lessee or any sublessee makes, or holds the property for the purpose of making, one or more supplies of the property, parts of the property or leases, licences or similar arrangements in respect of the property or parts of it and all or substantially all of those supplies

(c) are exempt supplies included in section 6 or 7, or

(d) are supplies that are made, or are reasonably expected to be made, to other lessees or sublessees described in this section.

(2) Subsection (1) applies to any supply for which consideration becomes due after February 26, 2008, without having been paid on or before that day, or is paid after that day without having become due.

79. (1) Part I of Schedule V to the Act is amended by adding the following after section 6.1:

(2) Subsection (1) applies to any supply of property made by a supplier for which

(a) consideration becomes due after February 26, 2008 without having been paid on or before that day, or is paid after that day without having become due; or

(b) all of the consideration became due or was paid on or before February 26, 2008 if the supplier did not, on or before that day, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply or any other supply of the property made by the supplier that would be included in section 6.1 or 6.11 of Part I of Schedule V to the Act, if that section were read as that section is enacted by this Act.

(3) If, as a result of the enactment of section 6.11 of Part I of Schedule V to the Act by subsection (1),

(a) a person ceases to use land of the person, or reduces the extent to which land is used, in commercial activities of the person,

(b) the person is deemed under subsection 206(4) or (5) or 207(1) or (2) of the Act to have made a supply of the land, or a portion of it,

(c) the person would have become entitled, at a particular time that is on or before February 26, 2008, to a rebate under subsection 256.1(1) of the Act in respect of the land equal to an amount, if that subsection, as amended by this Act, and sections 6.1 and 6.11 of Part I of Schedule V to the Act, as enacted by this Act, had applied at the particular time, and

(d) in determining the basic tax content (as defined in subsection 123(1) of the Act) of the land of the person on or after the particular time, the amount would have been included in determining the total for B in paragraph (a) of that definition if the person had been entitled to the rebate at the particular time,

for the purpose of determining, on or after the particular time, the basic tax content of the land of the person, the amount shall be included in determining the total for B in paragraph (a) of that definition.

(4) If, as a result of the enactment of section 6.11 of Part I of Schedule V to the Act by subsection (1),

(a) a person ceases to use a residential complex of the person, or reduces the extent to which the residential complex is used, in commercial activities of the person,

(b) the person is deemed under subsection 206(4) or (5) or 207(1) or (2) of the Act to have made a supply of the residential complex, or a portion of it,

(c) the person would have become entitled, at a particular time that is on or before February 26, 2008, to a rebate under subsection 256.2(3) of the Act in respect of the residential complex equal to an amount, if section 256.2 of the Act, as amended by this Act, and sections 6.1 and 6.11 of Part I of Schedule V to the Act, as enacted by this Act, had applied at the particular time, and

(d) in determining the basic tax content (as defined in subsection 123(1) of the Act) of the residential complex of the person on or after the particular time, the amount would have been included in determining the total for B in paragraph (a) of that definition if the person had been entitled to the rebate at the particular time,

for the purpose of determining, on or after the particular time, the basic tax content of the residential complex of the person, the amount shall be included in determining the total for B in paragraph (a) of that definition.

80. (1) Sections 5 and 6 of Part II of Schedule V to the Act are replaced by the following:

5. A supply of a consultative, diagnostic, treatment or other health care service (other than a surgical or dental service that is performed for cosmetic purposes and not for medical or reconstructive purposes) that is rendered by a medical practitioner to an individual.

6. A supply of a nursing service rendered to an individual by a registered nurse, a registered nursing assistant, a licensed or registered practical nurse or a registered psychiatric nurse, if the service is rendered within a nurse-patient relationship.

(2) Subsection (1) applies to any supply made after February 26, 2008.

81. (1) The portion of section 7 of Part II of Schedule V to the Act before paragraph (a) is replaced by the following:

7. A supply of any of the following services if the service is rendered to an individual by a practitioner of the service:

(2) Subsection (1) applies to any supply made after February 26, 2008.

82. (1) Sections 7.1 and 7.2 of Part II of Schedule V to the Act are replaced by the following:

7.1 A supply of a dietetic service rendered by a practitioner of the service, if the service is rendered to an individual or the supply is made to a public sector body or to the operator of a health care facility.

7.2 A supply of a service rendered in the practice of the profession of social work where

(a) the service is rendered to an individual within a professional-client relationship between the particular individual who renders the service and the individual and is provided for the prevention, assessment or remediation of, or to assist the individual in coping with, a physical, emotional, behavioural or mental disorder or disability of the individual or of another individual to whom the individual is related or to whom the individual provides care or supervision otherwise than in a professional capacity; and

(b) either

(i) if the particular individual is required to be licensed or otherwise certified to practise the profession of social work in the province in which the service is supplied, the particular individual is so licensed or certified, or

(ii) if the particular individual is not required to be licensed or otherwise certified to practise that profession in that province, the particular individual has the qualifications equivalent to those necessary to be licensed or certified to practise that profession in a province in which such a requirement exists.

(2) Subsection (1) applies to any supply made after February 26, 2008.

83. (1) Section 10 of Part II of Schedule V to the Act is replaced by the following:

10. A supply of a prescribed diagnostic, treatment or other health care service rendered to an individual if made on the order of

(a) a medical practitioner or practitioner; or

(2) Subsection (1) applies to any supply made after February 26, 2008.

84. (1) Part II of Schedule V to the Act is amended by adding the following after section 13:

(2) Subsection (1) applies to any supply made after February 26, 2008.

85. (1) The definition “prescription” in section 1 of Part I of Schedule VI to the Act is replaced by the following:

“prescription” means a written or verbal order, given to a pharmacist by a medical practitioner or authorized individual, directing that a stated amount of any drug or mixture of drugs specified in the order be dispensed for the individual named in the order.

(2) Section 1 of Part I of Schedule VI to the Act is amended by adding the following in alphabetical order:

(3) Subsections (1) and (2) apply to any supply made

(a) after February 26, 2008; or

(b) on or before February 26, 2008 if no amount was charged, collected or remitted on or before that day as or on account of tax under Part IX of the Act in respect of the supply.

86. (1) Paragraph 2(b) of Part I of Sched- ule VI to the Act is replaced by the following:

(b) a drug included in Schedule F to the Food and Drug Regulations, other than a drug or mixture of drugs that may, pursuant to the Food and Drugs Act or those Regulations, be sold to a consumer with neither a prescription nor a written order signed by the Director (as defined in those Regulations),

(2) Paragraph 2(d) of Part I of Schedule VI to the Act is replaced by the following:

(d) a drug that contains a substance included in the schedule to the Narcotic Control Regulations, other than a drug or mixture of drugs that may, pursuant to the Controlled Drugs and Substances Act or regulations made under that Act, be sold to a consumer with neither a prescription nor an exemption by the Minister of Health in respect of the sale,

(3) Subsections (1) and (2) apply to any supply made after February 26, 2008.

87. (1) Paragraph 3(b) of Part I of Sched- ule VI to the Act is replaced by the following:

(b) on the prescription of a medical practitioner or authorized individual for the person- al consumption or use of the individual named in the prescription.

(2) Subsection (1) applies to any supply made

(a) after February 26, 2008; or

(b) on or before February 26, 2008 if no amount was charged, collected or remitted on or before that day as or on account of tax under Part IX of the Act in respect of the supply.

88. (1) Part II of Schedule VI to the Act is amended by adding the following after section 1:

(2) Subsection (1) applies to any supply made after February 26, 2008.

89. (1) Section 6 of Part II of Schedule VI to the Act is replaced by the following:

6. A supply of a mechanical percussor for postural drainage treatment or a chest wall oscillation system for airway clearance therapy.

(2) Subsection (1) applies to any supply made after February 26, 2008.

90. (1) Section 14 of Part II of Schedule VI to the Act is replaced by the following:

14. A supply of a chair, walker, wheelchair lift or similar aid to locomotion, with or without wheels, including motive power and wheel assemblies therefor, that is specially designed to be operated by an individual with a disability for locomotion of the individual.

(2) Subsection (1) applies to any supply made after February 26, 2008.

91. (1) Section 20 of Part II of Schedule VI to the Act is replaced by the following:

20. A supply of a toilet seat, bath seat, shower seat or commode chair that is specially designed for use by an individual with a disability.

(2) Subsection (1) applies to any supply made after February 26, 2008.

92. (1) Sections 33 to 34 of Part II of Schedule VI to the Act are replaced by the following:

33. A supply of an animal that is or is to be specially trained to assist an individual with a disability or impairment with a problem arising from the disability or impairment, or a supply of a service of training an individual to use the animal, if the supply is made to or by an organization that is operated for the purpose of supplying such specially trained animals to individuals with the disability or impairment.

34. A supply of a service (other than a service the supply of which is included in any provision of Part II of Schedule V except section 9 of that Part and a service related to the provision of a surgical or dental service that is performed for cosmetic purposes and not for medical or reconstructive purposes) of installing, maintaining, restoring, repairing or modifying a property the supply of which is included in any of sections 2 to 32 and 37 to 41 of this Part, or any part for such a property if the part is supplied in conjunction with the service.

(2) Subsection (1) applies to any supply made after February 26, 2008.

93. (1) Part II of Schedule VI to the Act is amended by adding the following after section 40:

(2) Subsection (1) applies to any supply made after February 26, 2008.

PART 4

CANADA MILLENNIUM SCHOLARSHIP FOUNDATION

Dissolution of the Foundation

94. (1) Within six months after the day on which this subsection comes into force, or any longer time that the Governor in Council determines on the recommendation of the Minister of Human Resources and Skills Development, the Canada Millennium Schol- arship Foundation, established by section 3 of the Budget Implementation Act, 1998 and referred to in this Part as “the Foundation”, shall sell or otherwise dispose of all of its property other than property referred to in subsection (3) and discharge all of its liabilities, on terms and conditions that are approved by the Governor in Council.

(2) Despite subsection (1), money that was donated to the Foundation under section 21 of the Budget Implementation Act, 1998 — including any income arising from the investment of the money — and that was not used for carrying out the objects and purposes of the Foundation shall be paid to the donor.

(3) Within the period referred to in subsection (1), the Foundation shall transfer to the Department of Human Resources and Skills Development the following things, including any electronic versions of them:

(a) the books of account and other records referred to in section 35 of the Budget Implementation Act, 1998, as well as any information that the Foundation collected in order to produce them;

(b) all other information that the Foundation has under its control concerning persons who have received scholarships or any other financial assistance from it;

(c) any studies that the Foundation has under its control, and any other information that it has collected through research; and

(d) any database containing information related to any of those books of account and other records, that other information and those studies, as well as any information necessary in order to use the database.

(4) After satisfying the obligations set out in subsections (1) to (3), the Foundation shall deposit all of its remaining money in the Consolidated Revenue Fund to the credit of the Receiver General.

(5) The Foundation is dissolved.

Amendments to the Budget Implementation Act, 1998

95. The headings before section 2 and sections 2 to 42 of the Budget Implementation Act, 1998 are repealed.

96. Section 43 of the Act and the heading before it are repealed.

97. The heading before section 44 and sections 44 to 46 of the Act are repealed.

Consequential Amendments

Access to Information Act

98. Schedule I to the Access to Information Act is amended by striking out the following under the heading “Other Government Institutions”:

Canada Millennium Scholarship Foundation

Privacy Act

99. The schedule to the Privacy Act is amended by striking out the following under the heading “Other Government Institutions”:

Canada Millennium Scholarship Foundation

Coming Into Force

100. (1) Subsections 94(1) to (4) and section 96 come into force on January 5, 2010, or on an earlier day that is fixed by order of the Governor in Council.

(2) Subsection 94(5) and sections 95 and 97 to 99 come into force on a day to be fixed by order of the Governor in Council.

PART 5

FEDERAL FINANCIAL ASSISTANCE FOR STUDENTS

Amendments to the Canada Student Financial Assistance Act

101. (1) Subsection 2(2) of the Canada Student Financial Assistance Act is replaced by the following:

(2) In this Act, the words and expressions “borrower”, “consolidated student loan agreement”, “course”, “family income”, “financial assistance”, “full-time student”, “loan year”, “part-time student”, “period of studies”, “post-secondary school level”, “program of studies”, “severe permanent disability”, “student loan” and “student loan agreement” have the meanings assigned by the regulations.

(2) Section 2 of the Act is amended by adding the following after subsection (3):

102. Paragraph 5(e) of the Act is replaced by the following:

(e) the repayment of student loans by borrowers or classes of borrowers on an income-contingent basis;

103. Subsection 6.2(2) of the Act is replaced by the following:

104. Section 8 of the Act is renumbered as subsection 8(1) and is amended by adding the following:

105. Section 10 of the Act is replaced by the following:

10. All rights of the lender against a borrower in respect of a student loan prescribed by regulations made under paragraph 15(1)(j) terminate if the borrower dies, and in that event the Minister shall pay to the lender the amounts referred to in subparagraph 5(a)(iii).

106. Sections 11 and 11.1 of the Act are replaced by the following:

11. All rights of the lender against a borrower in respect of a student loan prescribed by regulations made under paragraph 15(1)(j) terminate if the Minister is satisfied, on the basis of information specified by the Minister and provided by or on behalf of the borrower, that the borrower, by reason of the borrower’s severe permanent disability, is unable to repay the student loan and will never be able to repay it, and in that event the Minister shall pay to the lender the amounts referred to in subparagraph 5(a)(iii).

11.1 All obligations of a borrower in respect of a loan made under an agreement entered into under section 6.1 terminate if the Minister is satisfied, on the basis of information specified by the Minister and provided by or on behalf of the borrower, that the borrower, by reason of the borrower’s severe permanent disability, is unable to repay the loan and will never be able to repay it.

107. The portion of subsection 12(1) of the Act before paragraph (a) is replaced by the following:

12. (1) Subject to the regulations, the appropriate authority for a province designated under paragraph 3(1)(a) may, on application of a qualifying student, issue or cause to be issued a certificate of eligibility in the prescribed form, for a period of studies at a designated educational institution in or outside Canada, to or in respect of the student if that authority considers the student

108. (1) Paragraph 15(e) of the Act is replaced by the following:

(e) providing for the conditions to be met before a disbursement in respect of a student loan may be made;

(2) Section 15 of the Act is amended by adding the following after paragraph (f):

(3) Paragraphs 15(n) to (p) of the Act are replaced by the following:

(n) providing for the establishment and operation of a program to provide special interest-free or interest-reduced periods to borrowers or classes of borrowers, including the terms and conditions of the granting or termination of the periods, the making, continuation or alteration of agreements between borrowers and lenders when the periods are granted or terminated and the authorization of lenders to grant or terminate the periods and otherwise administer the program;

(o) providing, in respect of any province, for repayment of student loans by borrowers or classes of borrowers on an income-contingent basis, or for the establishment and operation of a student loan program that is financed by Her Majesty in right of Canada or any agent of Her Majesty in right of Canada and that may provide for the repayment of student loans by borrowers or classes of borrowers on an income-contingent basis;

(p) providing for the establishment and operation of grant programs, and additional grant programs for qualifying students whose financial needs are greater than the maximum amount of the financial assistance that may be given to the student, for the classes of persons who are eligible for grants and for the circumstances in which all or part of a grant is to be repaid or converted into a loan;

(4) Section 15 of the Act is renumbered as subsection 15(1) and is amended by adding the following:

109. The Act is amended by adding the following after section 16:

110. The Act is amended by replacing every reference to section 15 of the Act with a reference to subsection 15(1) wherever it occurs in the following provisions:

(a) subparagraphs 5(a)(ii) and (iv);

(b) subsection 7(1);

(c) section 8;

(d) the portion of subsection 12(4) before paragraph (a); and

(e) subsections 14(6) and (7).

Amendments to the Canada Student Loans Act

111. Section 11 of the Canada Student Loans Act is replaced by the following:

11. The Governor in Council may make regulations providing for the establishment and operation of a program to provide special interest-free or interest-reduced periods to borrowers or classes of borrowers, including the terms and conditions of the granting or termination of the periods, the making, continuation or alteration of agreements between borrowers and lenders when the periods are granted or terminated and the authorization of lenders to grant or terminate the periods and otherwise administer the program.

112. Section 13 of the Act is replaced by the following:

13. (1) If the Minister is satisfied, on the basis of prescribed information provided by or on behalf of a borrower, that the borrower, by reason of severe permanent disability, is unable to repay a guaranteed student loan and will never be able to repay it, all rights of any lender against the borrower in respect of that guaranteed student loan terminate, and the Minister shall pay to any lender whose rights against a borrower are terminated under this section the amount of principal and interest determined in the prescribed manner to have been payable by the borrower at the time the borrower provided the Minister with the information required under this section.

(2) The Governor in Council may make regulations defining the expression “severe permanent disability” for the purposes of subsection (1).

113. (1) Section 17 of the Act is amended by adding the following after paragraph (k):

(2) Paragraph 17(m) of the Act is replaced by the following:

(m) prescribing circumstances, related to the conduct of a student in obtaining or repaying a guaranteed student loan, under which a new loan may be denied to a student or a borrower’s right to an interest-free period under section 4 or to a special interest-free period under section 10 may be revoked by the Minister;

(3) Paragraph 17(q) of the Act is replaced by the following:

114. The Act is amended by adding the following after section 19: