Budget and Economic Statement Implementation Act, 2007 (S.C. 2007, c. 35)

Marginal note:2006, c. 4, s. 4(1)

• 185. (1) The description of A in clause 173(1)(d)(vi)(B) of the Act is replaced by the following:

  A 

  is

  • (I) where

    • 1. the benefit amount is required to be included under paragraph 6(1)(a) or (e) of the Income Tax Act in computing the individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in a participating prov-ince, or

    • 2. the benefit amount is required under subsection 15(1) of that Act to be included in computing the individual’s income and the individual is resident in a participating prov-ince at the end of the year,

  the total of 4% and the tax rate for the participating province, and

  • (II) in any other case, 4%,

• (2) Subsection (1) applies to the 2008 and subsequent taxation years of an individual.

Marginal note:2006, c. 4, s. 19(1)

• 186. (1) Section 212 of the Act is replaced by the following:

  Marginal note:Imposition of goods and services tax

  212. Subject to this Part, every person who is liable under the Customs Act to pay duty on imported goods, or who would be so liable if the goods were subject to duty, shall pay to Her Majesty in right of Canada tax on the goods calculated at the rate of 5% on the value of the goods.

• (2) Subsection (1) applies to goods imported into Canada, or released (as defined in the Customs Act), on or after January 1, 2008.

Marginal note:2006, c. 4, s. 20(1)

• 187. (1) Section 218 of the Act is replaced by the following:

  Marginal note:Imposition of goods and services tax

  218. Subject to this Part, every recipient of an imported taxable supply shall pay to Her Majesty in right of Canada tax calculated at the rate of 5% on the value of the consideration for the imported taxable supply.

• (2) Subsection (1) applies

  • (a) to any imported taxable supply made on or after January 1, 2008;

  • (b) for the purposes of calculating tax in respect of any imported taxable supply made before January 1, 2008, but only in respect of consideration that becomes due on or after that day without having been paid before that day or that is paid, without having become due, on or after January 1, 2008; and

  • (c) if neither paragraph (a) nor (b) applies, for the purposes of determining or calculating tax that is not payable but would have been payable on or after January 1, 2008, in the absence of certain circumstances described in the Act.

Marginal note:2006, c. 4, s. 24(1)

• 188. (1) Paragraph 254(2)(h) of the Act is replaced by the following:

  • (h) where the total consideration is not more than $350,000, an amount equal to the lesser of $6,300 and 36% of the total tax paid by the particular individual, and

• Marginal note:2006, c. 4, s. 24(2)

  (2) The description of A in paragraph 254(2)(i) of the Act is replaced by the following:

  A 

  is the lesser of $6,300 and 36% of the total tax paid by the particular individual, and

• (3) Subsections (1) and (2) apply to any rebate in respect of a supply by way of sale of a residential complex in respect of which ownership is transferred on or after January 1, 2008, to the particular individual referred to in section 254 of the Act, unless the tax payable under subsection 165(1) of the Act in respect of the supply of the complex applied at the rate of 6% or 7%.

Marginal note:2006, c. 4, s. 25(1)

• 189. (1) Paragraph 254.1(2)(c) of the Act is replaced by the following:

  • (c) the fair market value of the complex, at the time possession of the complex is given to the particular individual under the agreement, is less than $472,500,

• Marginal note:2006, c. 4, s. 25(2)

  (2) Paragraphs 254.1(2)(h) and (i) of the Act are replaced by the following:

  • (h) if the fair market value referred to in paragraph (c) is not more than $367,500, an amount equal to 1.71% of the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable by the particular individual to the builder for the supply by way of sale to the particular individual of the building or part of a building referred to in paragraph (a) or of any other structure that forms part of the complex, other than consideration that can reasonably be regarded as rent for the supplies of the land attributable to the complex or as consideration for the supply of an option to purchase that land, and

  • (i) if the fair market value referred to in paragraph (c) is more than $367,500 but less than $472,500, the amount determined by the formula

    A × [($472,500 - B)/$105,000]

    where

    A 

    is the lesser of $6,300 and 1.71% of the total consideration, and

    B 

    is the fair market value referred to in paragraph (c).

• Marginal note:2006, c. 4, s. 25(3)

  (3) Paragraph 254.1(2.1)(a) of the Act is replaced by the following:

  • (a) a particular individual is entitled to a rebate under subsection (2), or to be paid or credited the amount of such a rebate under subsection (4), in respect of a residential complex situated in Nova Scotia, or would be so entitled if the fair market value of the complex, at the time possession of the complex is given to the particular individual under the agreement for the supply of the complex to the particular individual, were less than $472,500,

• (4) Subsections (1) to (3) apply in respect of a supply, to a particular individual referred to in section 254.1 of the Act, of a building or part of it in which a residential unit forming part of a residential complex is situated if possession of the unit is given to the particular individual on or after January 1, 2008, unless the builder is deemed under section 191 of the Act to have paid tax under subsection 165(1) of the Act calculated at the rate of 6% or 7% in respect of the supply referred to in paragraph 254.1(2)(d) of the Act.

Marginal note:2006, c. 4, s. 26(1)

• 190. (1) Paragraph 255(2)(d) of the Act is replaced by the following:

  • (d) the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the share or an interest in the corporation, complex or unit, is less than $472,500,

• Marginal note:2006, c. 4, s. 26(2)

  (2) Paragraphs 255(2)(g) and (h) of the Act are replaced by the following:

  • (g) if the total consideration is not more than $367,500, an amount equal to 1.71% of the total consideration, and

  • (h) if the total consideration is more than $367,500 but less than $472,500, the amount determined by the formula

    A × [($472,500 - B)/$105,000]

    where

    A 

    is the lesser of $6,300 and 1.71% of the total consideration, and

    B 

    is the total consideration.

• Marginal note:2006, c. 4, s. 26(3)

  (3) Paragraph 255(2.1)(c) of the Act is replaced by the following:

  • (c) the particular individual is entitled to a rebate under subsection (2) in respect of the share or would be so entitled if the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the share or an interest in the corporation, complex or unit, were less than $472,500,

• (4) Subsections (1) to (3) apply for the purpose of determining a rebate in respect of a supply, by a cooperative housing corporation to an individual, of a share of the capital stock of the corporation if the individual is acquiring the share for the purpose of using a residential unit in a residential complex as the primary place of residence of the individual, or a relation (as defined in subsection 255(1) of the Act) of the individ-ual, and the rebate application is filed on or after January 1, 2008, unless the corporation paid tax under subsection 165(1) of the Act in respect of the supply of the complex to the corporation calculated at the rate of 6% or 7%.

Marginal note:2006, c. 4, s. 27(1)

• 191. (1) Subparagraphs (i) and (ii) of the description of A in subsection 256(2) of the Act are replaced by the following:

  • (i) if all or substantially all of that tax was paid at the rate of 5%, $6,300,

  • (ii) if all or substantially all of that tax was paid at the rate of 6%, $7,560, and

  • (iii) in any other case, the lesser of $8,750 and the amount determined by the formula

    (C × $2,520) + (D × $1,260) + $6,300

    where

    C 

    is the extent (expressed as a percent-age) to which that tax was paid at the rate of 7%, and

    D 

    is the extent (expressed as a percent- age) to which that tax was paid at the rate of 6%, and

• (2) Subsection (1) applies to any rebate in respect of a residential complex for which an application is filed with the Minister of National Revenue on or after January 1, 2008.

Marginal note:2006, c. 4, s. 28(1)

• 192. (1) The portion of the description of A in subsection 256.2(3) of the Act before the formula is replaced by the following:

  A 

  is the lesser of $6,300 and the amount determined by the formula

• Marginal note:2006, c. 4, s. 28(2)

  (2) The portion of the description of A in subsection 256.2(4) of the Act before the formula is replaced by the following:

  A 

  is the lesser of $6,300 and the amount determined by the formula

• Marginal note:2006, c. 4, s. 28(3)

  (3) The portion of the description of A in subsection 256.2(5) of the Act before the formula is replaced by the following:

  A 

  is the lesser of $6,300 and the amount determined by the formula

• (4) Subsection (1) applies to

  • (a) a taxable supply to a recipient from another person of a residential complex or an interest in a residential complex, in respect of which ownership and possession under the agreement for the supply are transferred on or after January 1, 2008, unless the agreement for the supply is evidenced in writing and was entered into on or before October 30, 2007; and

  • (b) a deemed purchase (within the meaning of subparagraph 256.2(3)(a)(ii) of the Act) by a builder if the tax in respect of the deemed purchase of a complex or an addition to a complex is deemed to have been paid on or after January 1, 2008.

• (5) Subsection (2) applies to a supply of a building or part of it forming part of a residential complex and a supply of land, described in subparagraphs 256.2(4)(a)(i) and (ii) of the Act, that result in a person being deemed under section 191 of the Act to have made and received a taxable supply by way of sale of the complex or of an addition to it on or after January 1, 2008, unless the supply is deemed to have been made as a consequence of the builder giving possession of a residential unit in the complex or the addition to a person under an agreement for the supply by way of sale of the building or part of it forming part of the complex or the addition and

  • (a) the agreement was entered into on or before October 30, 2007;

  • (b) another agreement was entered into by the builder and another person on or before May 2, 2006, and that other agreement was not terminated before July 1, 2006, and was for the supply by way of sale of the building or part of it forming part of

    • (i) in the case of a deemed supply of a complex, the complex, or

    • (ii) in the case of a deemed supply of an addition, the addition; or

  • (c) another agreement was entered into by the builder and another person on or before October 30, 2007, and that other agreement was not terminated before January 1, 2008, and was for the supply by way of sale of the building or part of it forming part of

    • (i) in the case of a deemed supply of a complex, the complex, or

    • (ii) in the case of a deemed supply of an addition, the addition.

• (6) Subsection (3) applies to

  • (a) a taxable supply by way of sale to a recipient from another person of a residential complex, or an interest in a residential complex, in respect of which ownership and possession under the agreement for the supply are transferred on or after January 1, 2008, unless the agreement is evidenced in writing and was entered into on or before October 30, 2007; and

  • (b) a deemed purchase (within the meaning of subparagraph 256.2(5)(a)(ii) of the Act) by a builder if the tax in respect of the deemed purchase of a complex or an addition to a complex is deemed to have been paid on or after January 1, 2008.