Sales Tax and Excise Tax Amendments Act, 2001 (S.C. 2001, c. 15)

Marginal note:1997, c. 10, s. 77(1)

• 20. (1) Subsections 278.1(2) to (4) of the Act are replaced by the following:

  • Marginal note:Filing of return by electronic filing

    (2) A person who is required to file with the Minister a return under this Part, and who meets the criteria specified in writing by the Minister for the purposes of this section, may file the return by way of electronic filing.

• Marginal note:1997, c. 10, s. 77(1)

  (2) Subsection 278.1(5) of the Act is renumbered as subsection 278.1(3).

• (3) Subsections (1) and (2) are deemed to have come into force on October 4, 2000.

Marginal note:1997, c. 10, s. 243(1)

• 21. (1) Section 2 of Part I of Schedule V to the Act is replaced by the following:

  2. A particular supply by way of sale of a residential complex or an interest in a residential complex made by a particular person who is not a builder of the complex or, if the complex is a multiple unit residential complex, an addition to the complex, unless

  (a) the particular person claimed an input tax credit in respect of the last acquisition by the person of the complex or in respect of an improvement to the complex acquired, imported or brought into a participating province by the person after the complex was last acquired by the person; or

  (b) the recipient is registered under Subdivision d of Division V of Part IX of the Act and

  (i) the recipient made a taxable supply by way of sale (in this paragraph referred to as the “prior supply”) of the complex or interest to a person (in this paragraph referred to as the “prior recipient”) who is the particular person or, if the particular person is a personal trust other than a testamentary trust, the settlor of the trust or, in the case of a testamentary trust that arose as a result of the death of an individual, the deceased individual,

  (ii) the prior supply is the last supply by way of sale of the complex or interest to the prior recipient,

  (iii) the particular supply is not made more than one year after the particular day that is the day on which the prior recipient acquired the interest, or that is the earlier of the day on which the prior recipient acquired ownership of the complex and the day on which the prior recipient acquired possession of the complex, under the agreement for the prior supply,

  (iv) the complex has not been occupied by any individual as a place of residence or lodging after the construction or last substantial renovation of the complex was substantially completed,

  (v) the particular supply is made pursuant to a right or obligation of the recipient to purchase the complex or interest that is provided for under the agreement for the prior supply, and

  (vi) the recipient makes an election under this section jointly with the particular person in prescribed form containing prescribed information and filed with the Minister with the recipient’s return in which the recipient is required to report the tax in respect of the particular supply.

• (2) Subsection (1) applies to supplies made after October 4, 2000.

Marginal note:1997, c. 10, s. 90(1)

• 22. (1) Paragraph 9(2)(a) of Part I of Schedule V to the Act is replaced by the following:

  (a) a supply of real property that is, immediately before the time ownership or possession of the property is transferred to the recipient of the supply under the agreement for the supply, capital property used primarily

  (i) in a business carried on by the individual or trust with a reasonable expectation of profit, or

  (ii) if the individual or trust is a registrant,

  (A) in making taxable supplies of the real property by way of lease, licence or similar arrangement, or

  (B) in any combination of the uses described in subparagraph (i) and clause (A);

• Marginal note:1997, c. 10, s. 90(1)

  (2) Subsection 9(2) of Part I of Schedule V to the Act is amended by striking out the word “or” at the end of paragraph (d) and by replacing paragraph (e) with the following:

  (e) a supply of a residential complex or an interest in a residential complex; or

  (f) a particular supply to a recipient who is registered under Subdivision d of Division V of Part IX of the Act and who has made an election under this paragraph jointly with the individual or trust in prescribed form containing prescribed information and filed with the Minister with the recipient’s return in which the recipient is required to report the tax in respect of the supply, if

  (i) the recipient made a taxable supply by way of sale (in this paragraph referred to as the “prior supply”) of the real property to a person (in this paragraph referred to as the “prior recipient”) who is the individual, trust or settlor of the trust and that supply is the last supply by way of sale of the real property to the prior recipient,

  (ii) the particular day that is the earlier of the day on which, under the agreement for the prior supply, the prior recipient acquired ownership of the real property and the day the prior recipient acquired possession of the real property is not more than one year before the day the particular supply is made, and

  (iii) the particular supply is made pursuant to a right or obligation of the recipient to purchase the real property that is provided for under the agreement for the prior supply.

• (3) Subsections (1) and (2) apply to supplies by way of sale made after October 4, 2000.

Marginal note:2000, c. 30, s. 113(1)

• 23. (1) The portion of the definition “practitioner” in section 1 of Part II of Schedule V to the Act before paragraph (b) is replaced by the following:

  “practitioner”

  “practitioner”, in respect of a supply of optometric, chiropractic, physiotherapy, chiropodic, podiatric, osteopathic, audiological, speech therapy, occupational therapy, psychological or dietetic services, means a person who

  (a) practises the profession of optometry, chiropractic, physiotherapy, chiropody, podiatry, osteopathy, audiology, speech therapy, occupational therapy, psychology or dietetics, as the case may be,

• (2) Subsection (1) applies only to supplies made in 2001.

• 24. (1) Section 7 of Part II of Schedule V to the Act is amended by adding the following after paragraph (g):

  (h) speech therapy services;

• (2) Subsection (1) applies only to supplies made in 2001.

Marginal note:1993, c. 27, s. 159(1); 1997, c. 10, s. 99(1)

• 25. (1) Section 8 of Part III of Schedule V to the Act is replaced by the following:

  8. A supply, other than a zero-rated supply, made by a government, a school authority, a vocational school, a public college or a university of a service of instructing individuals in, or administering examinations in respect of, courses leading to certificates, diplomas, licences or similar documents, or classes or ratings in respect of licences, that attest to the competence of individuals to practise or perform a trade or vocation, except where the supplier has made an election under this section in prescribed form containing prescribed information.

• (2) Subsection (1) applies

  • (a) to supplies for which all of the consideration becomes due after October 4, 2000 or is paid after that day without having become due; and

  • (b) to any supply for which consideration becomes due or is paid on or before that day if no amount was charged or collected as or on account of tax under Part IX of the Act in respect of the supply on or before that day, except that, with respect to that supply, section 8 of Part III of Schedule V to the Act, as enacted by subsection (1), shall be read without reference to the words “except where the supplier has made an election under this section in prescribed form containing prescribed information”.

Marginal note:1997, c. 10, s. 102(1)

• 26. (1) Paragraph 1(b) of Part V.1 of Schedule V to the Act is replaced by the following:

  (b) property or a service where the supply is deemed under Part IX of the Act to have been made by the charity (other than a supply that is deemed to have been made under section 187 of the Act or that is deemed only under section 136.1 of the Act to have been made);

• Marginal note:1997, c. 10, s. 102(1)

  (2) Paragraph 1(c) of Part V.1 of Schedule V to the Act is replaced by the following:

  (c) particular personal property (other than property that was acquired, manufactured or produced by the charity for the purpose of making a supply by way of sale of the property and property supplied by way of lease, licence or similar arrangement in conjunction with an exempt supply by way of lease, licence or similar arrangement by the charity of real property) where, immediately before the time tax would first become payable in respect of the supply of the particular property if it were a taxable supply, that property is used (otherwise than in making the supply) in commercial activities of the charity or, in the case of capital property, primarily in such activities;

• Marginal note:1997, c. 10, s. 102(1)

  (3) Paragraph 1(l) of Part V.1 of Schedule V to the Act is replaced by the following:

  (l) real property where the supply is made by way of sale and, immediately before the time tax would first become payable in respect of the supply if it were a taxable supply, the property is used (otherwise than in making the supply) primarily in commercial activities of the charity; or

• (4) Subsection (1) applies to supplies that are deemed to have been made under section 136.1 of the Act for lease intervals or billing periods beginning on or after April 1, 1997.

• (5) Subsections (2) and (3) apply to supplies for which consideration becomes due after 1996 or is paid after 1996 without having become due but do not apply to any supply in respect of which an amount was charged or collected as or on account of tax under Part IX of the Act on or before October 4, 2000.

• (6) Where

  • (a) before 1997 a charity was using capital property of the charity in making taxable supplies by way of lease, licence or similar arrangement of real property, or of personal property in conjunction with supplies of real property, that were included in paragraph 2(f) or 25(f) or (h) of Part VI of Schedule V to the Act as the Act then read, and

  • (b) because of the enactment of section 1 of Part V.1 of that Schedule, as amended by subsections (2) and (3), the charity

    • (i) is considered to have, at a particular time, ceased to use the capital property, or reduced the extent to which the capital property is used, in commercial activities of the charity, upon beginning to use the property for the purpose of making the charity’s first exempt supply by way of lease, licence or similar arrangement of real property, or of personal property in conjunction with a supply of real property, included in that section that would have been a taxable supply included in any of the said paragraphs if Part VI of the Schedule had continued to apply to charities, and

    • (ii) is deemed under subsection 200(2) or 206(4) or (5) of the Act to have made, immediately before the particular time, a supply of the capital property, or a portion of it, and to have collected tax in respect of that supply,

  the charity is not required to include that tax in determining the net tax for any reporting period of the charity and is deemed, for the purpose of determining the basic tax content (as defined in subsection 123(1) of the Act) of the capital property, to have been entitled to recover an amount equal to the tax as a rebate of tax included in the description of A in that definition.