Budget Implementation Act, 2006 (S.C. 2006, c. 4)
Full Document:
Assented to 2006-06-22
Marginal note:1997, c. 10, s. 174(1)
7. (1) The definition “tax fraction” in subsection 181(1) of the Act is replaced by the following:
“tax fraction”
« fraction de taxe »
“tax fraction” of a coupon value or of the discount or exchange value of a coupon means
(a) where the coupon is accepted in full or partial consideration for a supply made in a participating province, the fraction
A/B
where
- A
- is the total of the rate set out in subsection 165(1) and the tax rate for that participating province, and
- B
- is the total of 100% and the percentage determined for A; and
(b) in any other case, the fraction
C/D
where
- C
- is the rate set out in subsection 165(1), and
- D
- is the total of 100% and the percentage determined for C.
(2) Subsection (1) applies to any coupon that is accepted on or after July 1, 2006, in full or partial consideration for a supply.
Marginal note:1997, c. 10, s. 175(1)
8. (1) The description of A in paragraph 181.1(a) of the French version of the Act is replaced by the following:
- A
- représente :
(i) si la taxe prévue au paragraphe 165(2) était payable relativement à la fourniture du bien ou du service au profit de la personne, la somme du taux fixé au paragraphe 165(1) et du taux de taxe applicable à la province participante dans laquelle cette fourniture a été effectuée,
(ii) dans les autres cas, le taux fixé au paragraphe 165(1),
Marginal note:1997, c. 10, s. 175(1)
(2) The description of A in paragraph 181.1(e) in the English version of the Act is replaced by the following:
- A
- is
(i) if tax under subsection 165(2) was payable in respect of the supply of the property or service to the particular person, the total of the rate set out in subsection 165(1) and the tax rate of the participating province in which that supply was made, and
(ii) in any other case, the rate set out in subsection 165(1), and
(3) Subsections (1) and (2) apply to any supply of property or a service in respect of which tax became payable on or after July 1, 2006, if the supply is made to a person to whom a registrant pays a rebate in respect of the property or service.
Marginal note:1997, c. 10, s. 176(1)
9. (1) The description of B in paragraph 182(1)(a) of the Act is replaced by the following:
- B
- is
(i) if tax under subsection 165(2) was payable in respect of the supply, the total of 100%, the rate set out in subsection 165(1) and the tax rate for the participating province in which the supply was made, and
(ii) in any other case, the total of 100% and the rate set out in subsection 165(1), and
(2) Subsection (1) applies to an amount that is paid or forfeited on or after July 1, 2006, and to a debt or other obligation that is reduced or extinguished, without payment on account of the debt or obligation, on or after that day.
Marginal note:1997, c. 10, s. 177(1)
10. (1) The description of A in paragraph 183(4)(a) of the Act is replaced by the following:
- A
- is
(i) if the supply is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for that province, and
(ii) in any other case, the rate set out in subsection 165(1),
Marginal note:1997, c. 10, s. 177(2)
(2) The description of A in subparagraph183(5)(b)(i) of the Act is replaced by the following:
- A
- is
(A) if the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, and
(B) in any other case, the rate set out in subsection 165(1),
Marginal note:1997, c. 10, s. 177(3); 2000, c. 30, s. 35(2)
(3) The description of A in subparagraph183(6)(a)(ii) of the Act is replaced by the following:
- A
- is
(I) the rate set out in subsection 165(1) if
1. the property is situated in a participating province at the particular time, it was seized or repossessed before the day that is three years after the implementation date for that province (as defined in section 348) and tax would not have been payable had the property been purchased in Canada from the person at the time it was seized or repossessed, or
2. the property is situated in a non-participating province at the particular time, and
(II) in any other case, the total of the rate set out in subsection 165(1) and the tax rate for the participating province in which the property is situated at the particular time,
Marginal note:1997, c. 10, s. 177(4)
(4) The description of A in paragraph 183(6)(b) of the Act is replaced by the following:
- A
- is
(i) if the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, and
(ii) in any other case, the rate set out in subsection 165(1),
(5) Subsections (1) to (4) apply to property that is seized or repossessed by a creditor if the creditor begins, on or after July 1, 2006, to use the property otherwise than in the making of a supply of the property.
Marginal note:1997, c. 10, s. 178(1)
11. (1) The description of A in paragraph 184(3)(a) of the Act is replaced by the following:
- A
- is
(i) if the supply is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for that province, and
(ii) in any other case, the rate set out in subsection 165(1),
Marginal note:1997, c. 10, s. 178(2)
(2) The description of A in subparagraph 184(4)(b)(i) of the Act is replaced by the following:
- A
- is
(A) if the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, and
(B) in any other case, the rate set out in subsection 165(1),
Marginal note:1997, c. 10, s. 178(3); 2000, c. 30, s. 36(2)
(3) The description of A in subparagraph184(5)(a)(ii) of the Act is replaced by the following:
- A
- is
(A) the rate set out in subsection 165(1) if
(I) the property is situated in a participating province at the particular time, it was transferred before the day that is three years after the implementation date for that province (as defined in section 348) and tax would not have been payable had the property been purchased in Canada from the person at the time it was transferred, or
(II) the property is situated in a non-participating province at the particular time, and
(B) in any other case, the total of the rate set out in subsection 165(1) and the tax rate for the participating province in which the property is situated at the particular time,
Marginal note:1997, c. 10, s. 178(4)
(4) The description of A in paragraph 184(5)(b) of the Act is replaced by the following:
- A
- is
(i) if the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, and
(ii) in any other case, the rate set out in subsection 165(1),
(5) Subsections (1) to (4) apply to property that is transferred to an insurer if the insurer begins, on or after July 1, 2006, to use the property otherwise than in the making of a supply of the property.
Marginal note:2000, c. 30, s. 37(1)
12. (1) The description of A in clause 184.1(2)(d)(i)(A) of the Act is replaced by the following:
- A
- is
(I) if the supply deemed under subparagraph (a)(i) to be made by the surety is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for the participating province, and
(II) in any other case, the rate set out in subsection 165(1), and
(2) Subsection (1) applies to a person acting as a surety under a performance bond in respect of a contract for a particular taxable supply of construction services if a contract payment (within the meaning of paragraph 184.1(2)(a) of the Act) becomes due or is paid without having become due to the person on or after July 1, 2006, by reason of the person carrying on the particular construction.
(3) Despite subsection (2) and for the purpose of determining the total amount of all input tax credits in respect of direct inputs (within the meaning of paragraph 184.1(2)(c) of the Act), where a surety is carrying on a particular construction of real property situated in Canada as full or partial satisfaction of the surety’s obligation under a bond, a contract payment (within the meaning of paragraph 184.1(2)(a) of the Act), other than a contract payment that is not in respect of the particular construction, becomes due or is paid without having become due before July 1, 2006, and another contract payment (within the meaning of paragraph 184.1(2)(a) of the Act), other than a contract payment that is not in respect of the particular construction, becomes due on or after that day, without having been paid before that day, or is paid without having become due on or after that day, clause 184.1(2)(d)(i)(A) of the Act shall be read as follows:
(A) the amount determined by the formula
(A × B) + (C × D)
where
- A
- is
(I) if the supply deemed under subparagraph (a)(i) to be made by the surety is made in a participating province, the total of 7% and the rate of tax for that participating province, and
(II) in any other case, 7%,
- B
- is the total of all contract payments (other than contract payments that are not in respect of the particular construction) that become due before July 1, 2006, or are paid, without having become due, to the surety before that day,
- C
- is
(I) if the supply deemed under subparagraph (a)(i) to be made by the surety is made in a participating province, the total of 6% and the rate of tax for the participating province, and
(II) in any other case, 6%, and
- D
- is the total of all contract payments (other than contract payments that are not in respect of the particular construction) that become due on or after July 1, 2006, without having been paid before that day, or are paid, without having become due, to the surety on or after that day
- Date modified: