Budget Implementation Act, 2016, No. 2 (S.C. 2016, c. 12)

Marginal note:2007, c. 18, s. 6(5)

• 91 (1) Clause 156(1.1)(a)(ii)(A) of the Act is replaced by the following:

  • (A) both holds qualifying voting control in respect of a corporation that is a member of a qualifying group of which the other person is a member and owns at least 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of the corporation, or

• Marginal note:2000, c. 30, s. 25(1)

  (2) The portion of subparagraph 156(1.1)(b)(i) of the Act before clause (A) is replaced by the following:

  • (i) qualifying voting control in respect of the other person is held by, and not less than 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of the other person are owned by,

• Marginal note:2000, c. 30, s. 25(1); 2007, c. 18, s. 6(7)

  (3) Clauses 156(1.1)(b)(i)(A) to (C) of the French version of the Act are replaced by the following:

  • (A) la société de personnes donnée,

  • (B) une personne morale, ou une société de personnes canadienne, qui est membre d’un groupe admissible dont la société de personnes donnée est membre,

  • (C) plusieurs des personnes morales ou sociétés de personnes visées aux divisions (A) et (B),

• Marginal note:2007, c. 18, s. 6(8)

  (4) The portion of subparagraph 156(1.1)(b)(ii) of the Act before clause (A) is replaced by the following:

  • (ii) qualifying voting control in respect of a corporation is held by, and not less than 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of the corporation are owned by,

• Marginal note:2000, c. 30, s. 25(1)

  (5) Clauses 156(1.1)(b)(ii)(A) and (B) of the French version of the Act are replaced by the following:

  • (A) l’autre personne, si la personne morale est membre d’un groupe admissible dont la société de personnes donnée est membre,

  • (B) la société de personnes donnée, si la personne morale est membre d’un groupe admissible dont l’autre personne est membre,

• (6) Subsections (1) to (5) apply as of March 22, 2017. They also apply as of March 23, 2016 in respect of an election under subsection 156(2) of the Act that is to become effective on a day that is after March 22, 2016 but before March 22, 2017, unless the election is filed on or before March 22, 2016.

• 92 (1) Subsection 298(3) 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) to give effect to an alternative basis or argument advanced by the Minister under subsection (6.1).

• Marginal note:2000, c. 30, s. 89(4)

  (2) The portion of subsection 298(6.1) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Alternative basis or argument

    (6.1) The Minister may advance an alternative basis or argument in support of an assessment of a person, or in support of all or any portion of the total amount determined on assessment to be payable or remittable by a person under this Part, at any time after the period otherwise limited by subsection (1) or (2) for making the assessment unless, on an appeal under this Part,

• (3) Section 298 of the Act is amended by adding the following after subsection (6.1):

  • Marginal note:Limitation

    (6.2) If a reassessment of a person is made that gives effect to an alternative basis or argument advanced by the Minister under subsection (6.1) in support of a particular assessment of the person, the Minister shall not reassess for an amount that is greater than the total amount of the particular assessment.

  • Marginal note:Exception

    (6.3) Subsection (6.2) does not apply to any portion of an amount determined on reassessment that the Minister would be entitled to reassess under this Part at any time after the period otherwise limited by subsection (1) or (2) for making the reassessment if this Part were read without reference to subsection (6.1).

• (4) Subsections (1) to (3) come into force on the day on which this Act receives royal assent, except that those subsections do not apply in respect of appeals instituted on or before that day.

• 93 (1) Part V of Schedule VI to the Act is amended by adding the following after section 23:

  • 23.1 A supply of a service of rendering to individuals technical or customer support by means of telecommunications if the supply is made to a non-resident person that is not registered under Subdivision D of Division V of Part IX of the Act and is not a consumer of the service, but not including a supply of

    • (a) an advisory, consulting or professional service; or

    • (b) a service of acting as an agent of the non-resident person or of arranging for, procuring or soliciting orders for supplies by or to the non-resident person.

• (2) Subsection (1) applies to

  • (a) any supply made after March 22, 2016; and

  • (b) any supply made on or before March 22, 2016 if the supplier did not, on or before that day, charge, collect or remit an amount as or on account of tax under Part IX of the Act in respect of the supply.

Transitional Provision

Marginal note:Paragraph 150(2)(b) — election in effect on March 22, 2016

94 If a supply is made between a person and a corporation that have jointly made an election under subsection 150(1) of the Excise Tax Act, if the election is in effect on March 22, 2016 and on the day on which the agreement for the supply is entered into and if the agreement is entered into after March 22, 2016 but before March 22, 2017, then paragraph 150(2)(b) of that Act is to be read as follows in respect of the supply:

• (b) an imported taxable supply, as defined in section 217;

• (b.1) a supply made between a person and a corporation if

  • (i) the supply is

    • (A) a supply of a service and it is not the case that all or substantially all of the service will be performed before March 22, 2017, or

    • (B) a supply of property by way of lease, licence or similar arrangement and it is not the case that all or substantially all of the property will be delivered or made available to the recipient of the supply before March 22, 2017, and

  • (ii) the person and the corporation

    • (A) are not members of the same closely related group at any time after the day on which the agreement for the supply is entered into but before March 22, 2017, or

    • (B) are not members of the same closely related group on March 22, 2017; or

SOR/91-21; SOR/2011-56, s. 1Closely Related Corporations (GST/HST) Regulations

• 95 (1) The portion of section 3 of the Closely Related Corporations (GST/HST) Regulations before subparagraph (a)(i) is replaced by the following:

  3 For the purposes of paragraph 128(1)(b) of the Act, a corporation (in this section referred to as the “other corporation”) is a prescribed corporation in relation to a particular corporation if

  • (a) it is the case that

• (2) The portion of subparagraph 3(a)(i) of the French version of the Regulations before clause (A) is replaced by the following:

  • (i) les actions déterminées de l’autre personne morale représentant au moins 90 % de la valeur et du nombre de telles actions remplissent chacune l’une des conditions suivantes :

• (3) Subclause 3(a)(i)(C)(II) of the Regulations is replaced by the following:

  • (II) a corporation in respect of which employees referred to in subclause (I) hold qualifying voting control and own not less than 90% of the total value and number of all specified shares,

• (4) Subparagraph 3(a)(ii) of the French version of the Regulations is replaced by the following:

  • (ii) les actions déterminées de l’autre personne morale représentant au moins 50 % de la valeur et du nombre de telles actions appartiennent chacune à une personne morale visée aux divisions (i)(A) ou (B),

• (5) Paragraph 3(a) of the Regulations is amended by striking out “and” at the end of subparagraph (i), by replacing “or” with “and” at the end of subparagraph (ii) and by adding the following after subparagraph (ii):

  • (iii) the particular corporation would hold qualifying voting control in respect of the other corporation if the particular corporation were to own

    • (A) all of the issued and outstanding specified shares of the capital stock of the other corporation that are included in clauses (i)(A) to (D), and

    • (B) all of the issued and outstanding shares of the capital stock of the other corporation that are not specified shares and that would be included in clauses (i)(A) to (D) if they were specified shares; or

• (6) Paragraph 3(b) of the Regulations is replaced by the following:

  • (b) qualifying voting control in respect of the other corporation is held by, and not less than 90% of the total value and number of all specified shares of the other corporation are owned by,

    • (i) the particular corporation,

    • (ii) a corporation that is closely related to the particular corporation by reason of paragraph 128(1)(a) of the Act,

    • (iii) a corporation that is a prescribed corporation in relation to the particular corporation by reason of paragraph (a), or

    • (iv) any combination of the corporations referred to in subparagraphs (i) to (iii).

• (7) Subsections (1) to (6) apply as of March 22, 2017. They also apply as of March 23, 2016

  • (a) in respect of an election under subsection 150(1) or 156(2) of the Excise Tax Act that is to become effective on a day that is after March 22, 2016 but before March 22, 2017, unless the election is filed on or before March 22, 2016; and

  • (b) for the purpose of applying paragraphs 4(3)(b) and (c) of the Financial Services and Financial Institutions (GST/HST) Regulations in respect of a supply of a service if the agreement for the supply is entered into after March 22, 2016 but before March 22, 2017 and it is not the case that all or substantially all of the service will be performed before March 22, 2017.