Provincial Choice Tax Framework Act (S.C. 2009, c. 32)
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Assented to 2009-12-15
R.S., c. E-15EXCISE TAX ACT
14. (1) Subsection 218.1(1) of the Act is replaced by the following:
Marginal note:Tax in participating province
218.1 (1) Subject to this Part,
(a) every person that is resident in a participating province and is the recipient of an imported taxable supply that is a supply of intangible personal property or a service that is acquired by the person for consumption, use or supply in participating provinces to an extent that is prescribed, shall, for each time an amount of consideration for the supply becomes due or is paid without having become due and for each participating province, pay to Her Majesty in right of Canada, in addition to the tax imposed by section 218, tax equal to the amount determined by the formula
A × B × C
where
- A
- is the tax rate for the participating province,
- B
- is the value of that consideration that is paid or becomes due at that time, and
- C
- is the extent (expressed as a percentage) to which the person acquired the property or service for consumption, use or supply in the participating province; and
(b) every person that
(i) is a registrant and is the recipient of a supply, included in paragraph (b) of the definition “imported taxable supply” in section 217, of property the physical possession of which is transferred to the registrant in a particular participating province,
(ii) is the recipient of a supply, included in any of paragraphs 217(b.1) to (b.3), of property that is delivered or made available to the person in a particular participating province and is either resident in that province or is a registrant, or
(iii) is the recipient of a supply that is included in paragraph 217(c.1), (d) or (e) and that is made in a particular participating province
shall pay to Her Majesty in right of Canada, each time an amount of consideration for the supply becomes due or is paid without having become due, in addition to the tax imposed by section 218, tax equal to the amount determined by the formula
A × B × C
where
- A
- is the tax rate for the particular participating province,
- B
- is the value of that consideration that is paid or becomes due at that time, and
- C
- is
(A) in the case of an imported taxable supply of tangible personal property, 100%, and
(B) in any other case, the extent (expressed as a percentage) to which the person acquired the property or service for consumption, use or supply in the particular participating province.
(2) Subsection 218.1(2) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or’’ at the end of paragraph (b) and by adding the following after paragraph (b):
(c) is a prescribed amount.
(3) Subsections (1) and (2) come into force, or are deemed to have come into force, on July 1, 2010.
15. (1) The definition “specified provincial tax” in section 220.01 of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c):
(d) in the case of a vehicle registered in any other participating province, a prescribed tax.
(2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010.
16. (1) Section 220.04 of the Act is replaced by the following:
Marginal note:Selected listed financial institutions
220.04 If tax under this Division would, in the absence of this section, become payable by a person when the person is a selected listed financial institution, that tax is not payable unless it is a prescribed amount of tax.
(2) Subsection (1) applies in respect of tax under Division IV.1 of the Act that would, in the absence of section 220.04 of the Act, as enacted by subsection (1), become payable on or after July 1, 2010.
17. (1) Subsection 220.05(1) of the Act is replaced by the following:
Marginal note:Tax in participating province
220.05 (1) Subject to this Part, if at a particular time a person brings tangible personal property into a participating province from another province, the person shall pay tax to Her Majesty in right of Canada equal to the amount determined in prescribed manner.
(2) Subsection 220.05(3) of the Act is replaced by the following:
Marginal note:Non-taxable property
(3) No tax is payable under subsection (1)
(a) in respect of property that is included in Part I of Schedule X and is not prescribed property; or
(b) in prescribed circumstances.
(3) Subsections (1) and (2) come into force, or are deemed to have come into force, on July 1, 2010.
18. (1) Subsection 220.06(3) of the Act is replaced by the following:
Marginal note:Non-taxable property
(3) No tax is payable under subsection (1)
(a) in respect of property that is a specified motor vehicle that is required to be registered under the laws of a participating province relating to the registration of motor vehicles, or that is included in Part I of Schedule X and is not prescribed property; or
(b) in prescribed circumstances.
(2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010.
19. (1) Subsection 220.08(1) of the Act is replaced by the following:
Marginal note:Tax in participating province
220.08 (1) Subject to this Part, every person that is resident in a participating province and is the recipient of a taxable supply made in a particular province of intangible personal property or a service that is acquired by the person for consumption, use or supply in whole or in part in any participating province that is not the particular province shall pay to Her Majesty in right of Canada, each time an amount of consideration for the supply becomes due or is paid without having become due, tax equal to the amount determined in prescribed manner.
(2) Subsection 220.08(3) of the Act is replaced by the following:
Marginal note:Non-taxable supplies
(3) No tax is payable under subsection (1)
(a) in respect of a supply of intangible personal property or a service that is included in Part II of Schedule X and is not a prescribed supply; or
(b) in prescribed circumstances.
(3) Subsections (1) and (2) come into force, or are deemed to have come into force, on July 1, 2010.
20. (1) Paragraph (b) of the description of A in subsection 225.2(2) of the Act is replaced by 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 prescribed person or a person of a prescribed class) to the financial institution that would, in the absence of an election made under section 150, have become payable by the financial institution during the particular reporting period, and
(2) Subsection 225.2(4) of the Act is replaced by the following:
Marginal note:Election
(4) If a person, other than a prescribed person or a person of a prescribed class, and a selected listed financial institution have made jointly an election under section 150, the person and the financial institution may make jointly an election under this subsection to have paragraph (c) of the description of A in subsection (2) apply to every supply to which subsection 150(1) applies that is made by the person to the financial institution at a time the election made under this subsection is in effect.
(3) The portion of subsection 225.2(5) of the English version of the Act before paragraph (a) is replaced by the following:
Marginal note:Form and manner of filing
(5) An election under subsection (4) relating to supplies made by a person to a selected listed financial institution shall
(4) Paragraph 225.2(6)(c) of the Act is replaced by the following:
(c) the day the person becomes a prescribed person, or a person of a prescribed class, for the purposes of subsection (4), and
(5) Section 225.2 of the Act is amended by adding the following after subsection (8):
Marginal note:Regulations — selected listed financial institutions
(9) The Governor in Council may make regulations
(a) requiring any person or any class of persons to provide to a person any information that is required to allow a selected listed financial institution to determine the value of an element of a formula in subsection (2) or 237(5) or in any other provision of this Part or of a regulation made under this Part, specifying what information is to be provided, prescribing compliance measures in respect of that provision of information, and prescribing joint and several, or solidary, liability or penalties for failing to provide that information when and as required;
(b) allowing a person and a selected listed financial institution to make an election in respect of the filing of the returns of the person or the financial institution, specifying the circumstances in which that election may be revoked, prescribing compliance measures or other requirements in respect of that filing, and prescribing joint and several, or solidary, liability or penalties in respect of that filing; or
(c) requiring any selected listed financial institution to register under subdivision d for the purposes of this Part or deeming any selected listed financial institution to be a registrant for the purposes of this Part.
(6) Subsections (1) to (5) apply in respect of any reporting period of a person that ends on or after July 1, 2010.
21. (1) The Act is amended by adding the following after section 231:
Marginal note:No adjustment of provincial component of tax
231.1 The amount of tax under subsection 165(2) in respect of a supply that is equal to the amount in respect of the supply that may be deducted under subsection 234(3) by a person shall not be included in determining the amount that may be deducted or that is required to be added, as the case may be, under section 231 or 232 in determining the net tax of the person for any reporting period of the person.
(2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010.
22. (1) Subsection 234(1) of the Act is replaced by the following:
Marginal note:Deduction for rebate
234. (1) If, in the circumstances described in subsection 252.41(2), 254(4), 254.1(4) or 258.1(3) or in circumstances prescribed for the purposes of subsection 256.21(3), a particular person pays to or credits in favour of another person an amount on account of a rebate and transmits the application of the other person for the rebate to the Minister in accordance with subsection 252.41(2), 254(5), 254.1(5), 256.21(4) or 258.1(4), as the case requires, the particular person may deduct the amount in determining the net tax of the particular person for the reporting period in which the amount is paid or credited.
(2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2010.
23. (1) The Act is amended by adding the following after section 236:
Marginal note:Definitions
236.01 (1) The following definitions apply in this section.
“large business”
« grande entreprise »
“large business” means a prescribed person or a person of a prescribed class.
“specified property or service”
« bien ou service déterminé »
“specified property or service” means a prescribed property or service, or property or a service of a prescribed class.
“specified provincial input tax credit”
« crédit de taxe sur les intrants provincial déterminé »
“specified provincial input tax credit” means
(a) the portion of an input tax credit of a large business in respect of a specified property or service that is attributable to tax under subsection 165(2), section 212.1 or 218.1 or Division IV.1 in respect of the acquisition, importation or bringing into a participating province of the specified property or service; and
(b) a prescribed amount in respect of an input tax credit of a large business that is attributable to tax under subsection 165(2), section 212.1 or 218.1 or Division IV.1 or in respect of an amount that would be such an input tax credit if prescribed conditions were satisfied in prescribed circumstances.
Marginal note:Recapture of specified provincial input tax credits
(2) If a sales tax harmonization agreement with the government of a participating province relating to the new harmonized value-added tax system allows for the recapture of input tax credits, in determining the net tax for the reporting period of a large business that includes a prescribed time, the large business shall add all or part, as determined in prescribed manner, of a specified provincial input tax credit of the large business.
Marginal note:Deduction of amounts
(3) If a sales tax harmonization agreement with the government of a participating province relating to the new harmonized value-added tax system allows for the recapture of input tax credits, in determining the net tax for the reporting period of a large business that includes a prescribed time, the large business may deduct in prescribed circumstances an amount determined in prescribed manner.
Marginal note:Simplified method
(4) The Governor in Council may make regulations respecting
(a) the methods that may be used by a large business to determine the amount that is required to be added under subsection (2) to, or that may be deducted under subsection (3) from, the net tax for a reporting period of the large business, including any conditions for the use of those methods;
(b) the reporting and accounting for such an amount; and
(c) compliance measures, including penalties, or other measures and requirements in respect of such an amount.
(2) Subsection (1) applies in respect of any reporting period of a person that ends on or after July 1, 2010.
24. (1) Paragraph (b) of the description of A in subsection 236.2(2) of the Act is replaced by the following:
(b) the total of all amounts each of which is the product obtained when the consideration paid or payable by the registrant for a supply made in a participating province of an item of inventory acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, is multiplied by the total of the rate set out in subsection 165(1) and the tax rate for that participating province, and
(2) Subsection (1) applies in respect of any supply made on or after July 1, 2010.
25. (1) Paragraph (b) of the description of A in subsection 236.3(2) of the Act is replaced by the following:
(b) the total of all amounts each of which is the product obtained when the consideration paid or payable by the registrant for a supply made in a participating province of property acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.2 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, is multiplied by the total of the rate set out in subsection 165(1) and the tax rate for that participating province, and
(2) Subsection (1) applies in respect of any supply made on or after July 1, 2010.
26. (1) The description of F in subsection 253(1) of the Act is replaced by the following:
- F
- is the percentage determined in prescribed manner, and
(2) The description of H in subsection 253(1) of the Act is replaced by the following:
- H
- is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and
(3) The description of E in subparagraph 253(2)(a)(ii) of the Act is replaced by the following:
- E
- is the percentage determined in prescribed manner, and
(4) The description of G in subparagraph 253(2)(a)(ii) of the Act is replaced by the following:
- G
- is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and
(5) The description of E in subparagraph 253(2)(c)(ii) of the Act is replaced by the following:
- E
- is the percentage determined in prescribed manner, and
(6) The description of G in subparagraph 253(2)(c)(ii) of the Act is replaced by the following:
- G
- is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and
(7) Subsections (1) to (6) apply to any rebate in respect of 2010 and subsequent years.
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