Excise Tax Act

Marginal note:Definitions

• 254.1 (1) In this section,

  long-term lease

  long-term lease, in respect of land, means a lease, licence or similar arrangement under which continuous possession of the land is provided for a period of at least twenty years or a lease, licence or similar arrangement that contains an option to purchase the land; (bail de longue durée)

  relation

  relation of a particular individual means another individual who is related to the particular individual or who is a former spouse or common-law partner of the particular individual; (proche)

  single unit residential complex

  single unit residential complex includes

  • (a) a multiple unit residential complex that does not contain more than two residential units, and

  • (b) any other multiple unit residential complex if it is described by paragraph (c) of the definition residential complex in subsection 123(1) and contains one or more residential units that are for supply as rooms in a hotel, motel, inn, boarding house, lodging house or similar premises and that would be excluded from being part of the residential complex if the complex were a residential complex not described by that paragraph. (immeuble d’habitation à logement unique)

• Marginal note:New housing rebate for building only

  (2) Where

  • (a) under an agreement entered into between a particular individual and a builder of a residential complex that is a single unit residential complex or a residential condominium unit, the builder makes to the particular individual

    • (i) one or more exempt supplies under a long-term lease of, or a supply by way of an assignment of a long-term lease of, the land attributable to the complex, and

    • (ii) an exempt supply by way of sale of the building or part thereof in which the residential unit forming part of the complex is situated,

  • (b) at the time the particular individual becomes liable or assumes liability under the agreement, the particular individual is acquiring the complex for use as the primary place of residence of the particular individual or of a relation of the particular individual,

  • (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,

  • (d) the builder is deemed under subsection 191(1) or (3) to have made a supply of the complex as a consequence of giving possession of the complex to the particular individual under the agreement,

  • (e) possession of the complex is given to the particular individual after the construction or substantial renovation of it is substantially completed,

  • (f) after the construction or substantial renovation is substantially completed and before possession of the complex is given to the particular individual under the agreement, the complex was not occupied by any individual as a place of residence or lodging, and

  • (g) either

    • (i) the first individual to occupy the complex as a place of residence after substantial completion of the construction or substantial renovation is the particular individual or a relation of the particular individual, or

    • (ii) the particular individual makes an exempt supply by way of sale or assignment of the whole of the particular individual’s interest in the complex and possession of the complex is transferred to the recipient of the supply before the complex is occupied by any individual as a place of residence or lodging,

  the Minister shall, subject to subsection (3), pay a rebate to the particular individual equal to

  • (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:Owner-occupant of a residential unit

  (2.01) For the purpose of subsection (2.1), an individual is an owner-occupant of a residential unit at any time if it is the primary place of residence of the individual at that time and

  • (a) it is owned at that time by the individual or by another individual who is their spouse or common-law partner at that time; or

  • (b) it is in a residential complex of a cooperative housing corporation and the individual, or another individual who is their spouse or common-law partner at that time, holds at that time a share of the capital stock of the corporation for the purpose of using the residential unit.

• Marginal note:Relevant transfer date

  (2.02) For the purpose of subsection (2.1), the relevant transfer date in respect of a complex supplied to the particular individual referred to in that subsection is the day on which possession of the complex is transferred to the particular individual.

• Marginal note:Rebate in Nova Scotia

  (2.1) If

  • (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,

  • (b) it is the case that

    • (i) neither the particular individual nor any other individual who is their spouse or common-law partner on the relevant transfer date was an owner-occupant of a residential unit in any other residential complex in Canada during the period (in this paragraph referred to as the “relevant period”) that begins on the first day of the first full calendar month in the five-year period ending on the relevant transfer date and that ends on the relevant transfer date, or

    • (ii) on the last day when any of the individuals referred to in subparagraph (i) was an owner-occupant of a residential unit in a residential complex in Canada during the relevant period, that residential unit was destroyed otherwise than voluntarily by any of them, and

  • (c) if, at the time referred to in paragraph (2)(b), the particular individual is acquiring the complex for use as the primary place of residence of a relation of the particular individual, but not for use as the primary place of residence of the particular individual or of their spouse or common-law partner, the circumstances described in subparagraph (b)(i) or (ii) would be satisfied if the references in those subparagraphs to the particular individual were references to the relation,

  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 lesser of $1,500 and 1.39% of the total consideration (within the meaning of paragraph (2)(h)) in respect of the complex.

• Marginal note:Exception

  (2.2) A rebate under this section shall not be paid in respect of a residential complex where the builder of the complex is not required, because of an Act of Parliament (other than this Act) or any other law, to pay or remit the tax that the builder is deemed to have paid and collected under subsection 191(1) in respect of a supply of the complex deemed to have been made under that subsection.

• Marginal note:Application for rebate

  (3) A rebate under this section in respect of a residential complex shall not be paid to an individual unless the individual files an application for the rebate within two years after the day possession of the complex is transferred to the individual.

• Marginal note:Application to builder

  (4) Where

  • (a) the builder of a residential complex that is a single unit residential complex or a residential condominium unit makes a supply of the complex to an individual under an agreement referred to in paragraph (2)(a) and transfers possession of the complex to the individual under the agreement,

  • (b) the individual, within two years after the day possession of the complex is transferred to the individual under the agreement for the supply, submits to the builder in prescribed manner an application in prescribed form containing prescribed information for the rebate to which the individual would be entitled under subsection (2) or (2.1) in respect of the complex if the individual applied for it within the time allowed for such an application, and

  • (c) the builder agrees to pay to, or credit in favour of, the individual any rebate under this section that is payable to the individual in respect of the complex,

  the builder may pay to, or credit in favour of, the individual the amount of the rebate, if any.

• Marginal note:Forwarding of application by builder

  (5) Notwithstanding subsections (2) and (3), where an application of an individual for a rebate under this section in respect of a residential complex is submitted under subsection (4) to the builder of the complex,

  • (a) the builder shall transmit the application to the Minister with the builder’s return filed under Division V for the reporting period in which the rebate was paid or credited; and

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

• Marginal note:Joint and several liability

  (6) If the builder of a residential complex pays or credits a rebate under subsection (4) and the builder knows or ought to know that the individual is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the individual is entitled, the builder and the individual are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264.