the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to the amount determined in prescribed manner or, if no manner is prescribed, the lesser of $1,500 and 18.75% of the total tax in respect of the province paid by the particular individual.

Marginal note:Housing rebates — participating provinces

• 256.21 (1) If a sales tax harmonization agreement with the government of a participating province allows for rebates in respect of residential property relating to the new harmonized value-added tax system in respect of that participating province, the Minister shall pay in prescribed circumstances a rebate in respect of prescribed property to a prescribed person, or a person of a prescribed class, equal to an amount determined in prescribed manner.

• Marginal note:Application for rebate

  (2) A rebate in respect of an amount shall not be paid under subsection (1) to a person unless the person files an application for the rebate within the prescribed time.

• Marginal note:Payment or credit of rebates

  (3) In the case of a rebate under subsection (1) (other than a rebate prescribed under subsection (6)), in prescribed circumstances, a prescribed person, or a person of a prescribed class, may pay or credit the amount of a rebate under subsection (1) to an individual of a prescribed class if the individual submits to the person in prescribed manner an application in prescribed form containing prescribed information.

• Marginal note:Forwarding of application

  (4) If an application in respect of a rebate is submitted to a person under subsection (3)

  • (a) the person shall transmit the application to the Minister in prescribed manner on or before the day on or before which the person’s return under Division V for the reporting period in which the rebate is paid or credited is required to be filed; and

  • (b) interest under subsection 297(4) is not payable in respect of the rebate.

• Marginal note:Joint and several liability — subsection (3)

  (5) If a particular person pays or credits an amount of a rebate to another person under subsection (3), and the particular person knows or ought to know that the other person is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the other person is entitled, the particular person and the other person are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264.

• Marginal note:Assignment

  (6) In the case of a rebate that is payable under subsection (1) in relation to the transition of a province to the new harmonized value-added tax system and that is prescribed for the purposes of this subsection, a person that is prescribed for the purposes of subsection (1) may, despite section 67 of the Financial Administration Act and any other provision of a law of Canada or a province, assign the rebate in prescribed circumstances to a prescribed person or a person of a prescribed class.

• Marginal note:Form and manner of assignment

  (7) An assignment made under subsection (6) of a rebate in respect of a participating province shall be made in prescribed form containing prescribed information and the form shall be filed with the Minister in prescribed manner on or before the day that is four years after the harmonization date for the participating province.

• Marginal note:Effect of assignment

  (8) An assignment made under subsection (6) is not binding on Her Majesty in right of Canada and, without limiting the generality of the foregoing,

  • (a) the Minister is not required to pay to the assignee the assigned amount;

  • (b) the assignment does not create any liability of Her Majesty in right of Canada to the assignee; and

  • (c) the rights of the assignee are subject to all equitable and statutory rights of set-off in favour of Her Majesty in right of Canada.

• Marginal note:Joint and several liability — subsection (6)

  (9) If an amount of a rebate is assigned to a particular person by another person under subsection (6) and the particular person knows or ought to know that the other person is not entitled to the rebate or that the amount assigned exceeds the rebate to which the other person is entitled, the particular person and the other person are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264.

• Marginal note:Assessment

  (10) The Minister may at any time assess an assignee in respect of any amount payable by reason of subsection (9) and sections 296 to 311 apply with any modifications that the circumstances may require.

• (f) despite any of paragraphs (a) to (e), if there is a sales tax harmonization agreement with the government of a participating province that allows for rebates in respect of public service bodies relating to the new harmonized value-added tax system in respect of the participating province and if the participating province is prescribed for the purposes of this paragraph, in the case of a person of a prescribed class resident in the participating province, the prescribed percentage for that class in respect of the participating province, and

• (g) in any other case, 0%;

• (b) in the case of a person of a prescribed class resident in a participating province, the amount determined in prescribed manner for the purpose of the new harmonized value-added tax system or, in any other case, the amount equal to the specified provincial percentage of the non-creditable tax charged in respect of property or a service (other than a prescribed property or service) for the claim period.

• (b) in the case of a person of a prescribed class resident in a participating province, the amount determined in prescribed manner for the purpose of the new harmonized value-added tax system or, in any other case, all amounts, each of which is an amount determined by the formula

• Marginal note:Apportionment of rebate

  (4.1) Subject to subsections (4.2) and (4.21), if a person is a charity, a public institution or a qualifying non-profit organization, and is a selected public service body, the rebate, if any, payable to the person under subsection (3) or (4) in respect of property or a service for a claim period is equal to, in the case of a person of a prescribed class resident in a participating province, the amount determined in prescribed manner for the purpose of the new harmonized value-added tax system and, in any other case, the total of

Marginal note:Rebate in respect of goods removed from a participating province

• 261.1 (1) If a supply by way of sale of property that is tangible personal property (other than property included in paragraph 252(1)(a) or (c)), a mobile home or a floating home is made in a particular participating province to a person that is resident in Canada, if the person removes the property from the participating province to another province within thirty days after it is delivered to the person and if prescribed conditions are satisfied, the Minister shall, subject to section 261.4, pay a rebate to the person equal to the amount determined in prescribed manner.

Marginal note:Rebate in respect of goods imported at a place in a province

261.2 If a person that is resident in a particular participating province pays tax under subsection 212.1(2) in respect of property that the person imports at a place in another province for consumption or use exclusively in any province (other than the particular participating province) and if prescribed conditions are satisfied, the Minister shall, subject to section 261.4, pay a rebate to the person equal to the amount determined in prescribed manner.

Marginal note:Rebate in respect of intangible personal property or services supplied in a participating province

• 261.3 (1) If a person that is resident in Canada is the recipient of a supply made in a participating province of intangible personal property or a service that is acquired by the person for consumption, use or supply in whole or in part outside the participating province and if prescribed conditions are satisfied, the Minister shall, subject to section 261.4, pay a rebate to the person equal to the amount determined in prescribed manner.

• Marginal note:Rebate for management services supplied to investment plans, etc.

  (2) If a listed financial institution described in subparagraph 149(1)(a)(vi) or (ix), other than a selected listed financial institution, is the recipient of a supply of a specified service, tax under subsection 165(2), 218.1(1) or 220.08(1) is payable in respect of the supply and prescribed conditions are satisfied, the Minister shall, subject to section 261.4, pay a rebate to the financial institution equal to the amount determined in prescribed manner.

• (d) prescribed circumstances, if any, exist.

• Marginal note:Acquisitions by member

  (2) Despite subsection (1), if property or a service is acquired, imported or brought into a participating province by a member of a partnership for consumption, use or supply in the course of activities of the partnership but not on the account of the partnership, the following rules apply:

  • (a) except as otherwise provided in subsection 175(1), the partnership is deemed

    • (i) not to have acquired or imported the property or service, and

    • (ii) where the property was brought by the member into a participating province, not to have so brought it into that province;

Definition of “new harmonized value-added tax system”

• 277.1 (1) In this section, “new harmonized value-added tax system” means the system under this Part and Schedules V to X providing for the payment, collection and remittance of tax imposed under any of subsection 165(2) and sections 212.1, 218.1 and 220.05 to 220.08 and of amounts paid as or on account of that tax and the provisions of this Part relating to tax under those provisions or to input tax credits, rebates or refunds in respect of any such tax, or any such amounts, paid or deemed to be paid.

• Marginal note:New harmonized value-added tax system regulations — transition

  (2) The Governor in Council may make regulations, in relation to the transition by a province to the new harmonized value-added tax system,

  • (a) prescribing rules in respect of whether, how and when that system applies and rules in respect of other aspects relating to the application of that system in relation to the province, including

    • (i) rules that apply for the purpose of determining the amount of instalment payments under section 237,

    • (ii) circumstances in which an election under this Part may be made or revoked at an earlier time than would otherwise be permitted under this Part, and

    • (iii) rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when tax or consideration became due or was paid or collected, when property was delivered or made available, when a service was performed and when tax is required to be reported and accounted for;

  • (b) respecting information that must be included by a specified person in a written agreement or other document in respect of a specified supply of real property and prescribing tax consequences in respect of such a supply, and penalties, for failing to do so or for providing incorrect information;

  • (c) deeming, in specified circumstances, a specified person to have collected a specified amount of tax, or to have paid a specified amount of tax, for specified purposes, as a consequence of making a supply by way of sale in respect of a residential complex;

  • (d) prescribing rules under which a person of a specified class that is the recipient of a specified supply in respect of real property is required to report and account for tax that is payable under subsection 165(2) in respect of that supply;

  • (e) prescribing compliance measures, including anti-avoidance rules; and

  • (f) generally to effect the transition to, and implementation of, that system in relation to the province.

• Marginal note:New harmonized value-added tax system regulations — provincial tax policy flexibility

  (3) The Governor in Council may make regulations

  • (a) prescribing rules in respect of whether, how and when a change in the tax rate for a participating province applies and rules in respect of a change to another parameter affecting the application of the new harmonized value-added tax system in relation to a participating province (in this subsection any such change in the tax rate or to another parameter is referred to as the “provincial tax policy flexibility”), including

    • (i) rules that apply for the purpose of determining the amount of instalment payments under section 237,

    • (ii) circumstances in which an election under this Part may be made or revoked at an earlier time than would otherwise be permitted under this Part, and

    • (iii) rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when tax or consideration became due or was paid or collected, when property was delivered or made available, when a service was performed and when tax is required to be reported and accounted for;

  • (b) if an amount is to be determined in prescribed manner in relation to the new harmonized value-added tax system, specifying the circumstances or conditions under which the manner applies;

  • (c) providing for rebates, refunds, adjustments or credits relating to the provincial tax policy flexibility;

  • (d) specifying circumstances and any terms or conditions that must be met for the payment of rebates in respect of the provincial tax policy flexibility;

  • (e) prescribing amounts and rates to be used to determine any rebate, refund, adjustment or credit that relates to, or is affected by, the new harmonized value-added tax system, excluding amounts that would otherwise be included in determining any such rebate, refund, adjustment or credit, and specifying circumstances under which any such rebate, refund, adjustment or credit shall not be paid or made;

  • (f) amending the definition “basic tax content” in subsection 123(1) to take into account the provincial tax policy flexibility or the addition of a province to the new harmonized value-added tax system; and

  • (g) prescribing compliance measures, including anti-avoidance rules, in respect of the provincial tax policy flexibility.

• Marginal note:New harmonized value-added tax system regulations — general

  (4) For the purpose of facilitating the implementation, application, administration and enforcement of the new harmonized value-added tax system or the transition by a province to the new harmonized value-added tax system, the Governor in Council may make regulations

  • (a) adapting any provision of this Part, of Schedules V to X or of the regulations made under this Part to the new harmonized value-added tax system or modifying any provision of this Part, Schedules V to X or those regulations to adapt it to the new harmonized value-added tax system;

  • (b) defining, for the purposes of this Part, Schedules V to X or the regulations made under this Part, or any provision of this Part, Schedules V to X or those regulations, in its application to the new harmonized value-added tax system, words or expressions used in this Part, Schedules V to X or those regulations including words or expressions defined in a provision of this Part, Schedules V to X or those regulations; and

  • (c) providing that a provision of this Part, of Schedules V to X or of the regulations made under this Part, or a part of such a provision, does not apply to the new harmonized value-added tax system.

• Marginal note:Conflict

  (5) If a regulation made under this Part in respect of the new harmonized value-added tax system states that it applies despite any provision of this Part, in the event of a conflict between the regulation and this Part, the regulation prevails to the extent of the conflict.