New Harmonized Value-added Tax System Regulations (SOR/2010-117)

Marginal note:Revocation of election for streamlined accounting

• 58.41 (1) If a registrant that has made an election under subsection 227(1) of the Act that is in effect on April 1, 2013 is resident in Prince Edward Island immediately before April 1, 2013 or has made supplies in Prince Edward Island in the one-year period ending immediately before April 1, 2013, the registrant may, despite paragraph 227(4.1)(a) of the Act but subject to paragraph 227(4.1)(b) of the Act, revoke that election under subsection 227(4) of the Act with effect from

  • (a) if the reporting period of the registrant that includes April 1, 2013 is a fiscal year of the registrant, the first day of any fiscal month of the registrant that begins before April 1, 2014; and

  • (b) in any other case, the first day of any reporting period of the registrant that begins before April 1, 2014.

• Marginal note:New reporting period if election

  (2) If a registrant whose reporting period is a fiscal year revokes an election under subsection 227(4) of the Act in accordance with subsection (1) with effect from the first day of a particular fiscal month in a fiscal year of the registrant and that month is not the first fiscal month in that fiscal year,

  • (a) for the purposes of Part IX of the Act, the period beginning on the first day of that fiscal year and ending immediately before the first day of the particular fiscal month and the period beginning on the first day of the particular fiscal month and ending on the last day of that fiscal year are each deemed to be a separate reporting period of the registrant; and

  • (b) for the purposes of subsections 237(1) and (2) of the Act, each of those separate reporting periods is deemed to be a reporting period determined under subsection 248(3) of the Act.

Marginal note:Adaptation — paragraph 172.1(5)(a) of Act

58.42 If a person is a participating employer of a pension plan that acquires property or a service for the purpose of making a supply of all or part of the property or service to a pension entity of the pension plan but not for the purpose of making a supply of any part of the property or service to a pension entity of the pension plan after March 2013, for the purposes of calculating the amount determined for B in the first formula in paragraph 172.1(5)(c) of the Act for Prince Edward Island in respect of a taxable supply of all or part of the property or service that is deemed to have been made under paragraph 172.1(5)(a) of the Act, the description of F in the third formula in paragraph 172.1(5)(c) of the Act is adapted to be read as “is 0; and”.

Marginal note:Adaptation — paragraphs 172.1(6)(c) and (7)(c) of Act

58.43 In respect of a fiscal year of a person that includes April 1, 2013, for the purposes of calculating the amount determined for B in the first formula in paragraph 172.1(6)(c) of the Act for Prince Edward Island and for the purposes of calculating the amount determined for B in the first formula in paragraph 172.1(7)(c) of the Act for Prince Edward Island, the third formula in paragraph 172.1(6)(c) of the Act and the descriptions in that formula and the third formula in paragraph 172.1(7)(c) of the Act and the descriptions in that formula are adapted as follows:

(E × F) × (G/H)

where

E

is the amount determined for C,

F

is the provincial factor in respect of the pension plan and Prince Edward Island for the particular fiscal year,

G

is the number of days in the particular fiscal year after March 2013, and

H

is the number of days in the particular fiscal year; and

Marginal note:Subsection 218.1(1.2) of Act

58.44 The tax payable by a person under subsection 218.1(1.2) of the Act for the specified year (as defined in section 217 of the Act) of the person that includes April 1, 2013 and for Prince Edward Island is equal to the amount determined by the formula

Marginal note:Rebate for pension entities

58.45 For the purposes of determining the provincial pension rebate amount for a claim period (as those terms are defined in subsection 261.01(1) of the Act) of a pension entity that includes April 1, 2013, the description of C in the formula in paragraph (a) of the definition provincial pension rebate amount in that subsection is adapted as follows if the participating province referred to in that paragraph is Prince Edward Island:

C

is the percentage determined by the formula

9% × (C₁/C₂)

where

C₁

is the number of days in the claim period after March 2013, and

C₂

is the number of days in the claim period, and

Marginal note:Exception — election to use production proxy

58.46 Despite subsection 31(9) of the New Harmonized Value-added Tax System Regulations, No. 2, if a person produces tangible personal property for sale and if the production of tangible personal property carried on by the person in Canada during the last fiscal year of the person that is before April 1, 2013 is carried on primarily in Prince Edward Island, an election made by the person under subsection 31(8) of those Regulations that sets out July 1, 2012 as the day on which the election is to become effective shall be filed with the Minister on or before September 1, 2014.

PART 3.2Newfoundland and Labrador — Rebate for Municipalities

Marginal note:Definitions

• 58.47 (1) The following definitions apply in this section.

  initial supply

  initial supply of a property by a person means

  • (a) if any supply by way of sale of the property was made by the person after July 15, 2015 but before 2016, the last supply by way of sale of the property made by the person before 2016; and

  • (b) in any other case, the first supply by way of sale of the property made by the person after 2015. (fourniture initiale)

  rebate entitlement

  rebate entitlement means the amount of a rebate that a person is entitled to claim under section 259 of the Act in respect of an acquisition of property or that the person would have been so entitled to claim if the property had been acquired for use exclusively in activities that are not commercial activities. (remboursement admissible)

  specified portion of the basic tax content

  specified portion of the basic tax content, at any time, of property of a person means the amount that would be the basic tax content of the property at that time if only amounts of tax under subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act were included in determining that basic tax content. (fraction déterminée de teneur en taxe)

  specified tax

  specified tax means an amount of tax payable under subsection 165(2), section 212.1 or 218.1 or Division IV.1 of Part IX of the Act. (taxe déterminée)

• Marginal note:Limitation — Newfoundland and Labrador municipalities

  (2) For the purposes of determining the rebate entitlement of a person for a claim period, as defined in subsection 259(1) of the Act, of the person that ends after 2015 in respect of all amounts of specified tax that are payable in respect of an acquisition of the property by the person after the person last made a supply of the property by way of sale and that are included in the provincial qualifying amount, as defined in section 2 of the Public Service Body Rebate (GST/HST) Regulations, in respect of the property for the claim period of the person, or would have been so included if the property had been acquired for use exclusively in activities that are not commercial activities, that rebate entitlement (in this section referred to as the “specified rebate entitlement”) is to be adjusted, as applicable, in accordance with the rules set out in subsection (3) if

  • (a) the property is property of the person at any time before 2017;

  • (b) the person makes a particular taxable supply by way of sale of the property after July 15, 2015;

  • (c) the person is the recipient of another taxable supply of the property (in this section referred to as the “reacquisition”) after the time at which the particular taxable supply was made and an amount of specified tax in respect of the reacquisition becomes payable, or is paid without having become payable, on a particular day that is after 2015;

  • (d) on the last day of the claim period of the person that includes the particular day, or on the last day of the person’s fiscal year that includes that claim period,

    • (i) the person is a municipality, or

    • (ii) the person is a person that is designated to be a municipality for the purposes of section 259 of the Act and the property is designated municipal property of the person; and

  • (e) the particular taxable supply and the reacquisition of the property are part of a transaction or series of transactions that may not reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to, directly or indirectly, benefit in any manner from a change made to the specified provincial percentage, as defined in subsection 259(1) of the Act, applicable to the person in relation to Newfoundland and Labrador as a result of the Regulations Amending Various GST/HST Regulations, No. 7 (Newfoundland and Labrador — Rebate for Municipalities) being made.

• Marginal note:Amount of reduction

  (3) For the purposes of subsection (2), the adjustment rules are the following:

  • (a) if the reacquisition is a supply by way of sale, the specified rebate entitlement is reduced by the amount determined by the formula

    A − B

    where

    A

    is the specified portion of the basic tax content of the property at the time at which the initial supply of the property was made, and

    B

    is the amount that would be, if no improvements had been made by the person to the property since the last acquisition of the property by the person and in the absence of this paragraph, the specified portion of the basic tax content of the property at the end of the claim period; and

  • (b) if the reacquisition is a supply made otherwise than by way of sale,

    • (i) if the total (in this paragraph referred to as the “total tax”) of all amounts, each of which is an amount of specified tax in respect of an acquisition of the property by the person after the person last made a supply of the property by way of sale that becomes payable, or is paid without having become payable, during the claim period, is less than the specified portion of the basic tax content of the property at the time at which the initial supply of the property was made, the specified rebate entitlement is nil, or

    • (ii) if subparagraph (i) does not apply and the total tax minus the amount that would be the specified rebate entitlement in the absence of this subparagraph is less than the specified portion of the basic tax content of the property at the time at which the initial supply of the property was made, the specified rebate entitlement is the amount determined by the formula

      A − B

      where

      A

      is the total tax, and

      B

      is the specified portion of the basic tax content of the property at the time at which the initial supply of the property was made.

PART 3.3New Brunswick Transitional Rules — 2016 Rate Change

Marginal note:Additional disclosure — real property

• 58.48 (1) If a builder makes a taxable supply of a residential complex in New Brunswick under an agreement of purchase and sale entered into after March 30, 2016 but before July 1, 2016, the builder must indicate in the agreement of purchase and sale

  • (a) the total tax payable in respect of the supply in a manner that clearly indicates the amount of that total and whether or not that amount takes into account any amount to be paid or credited in accordance with subsection 254(4) of the Act; or

  • (b) the total of the rates at which tax is payable in respect of the supply.

• Marginal note:Failure to disclose

  (2) If a builder fails to comply with subsection (1) in respect of a supply and is required under section 221 of the Act to collect tax at a particular time in respect of the supply and if tax under subsection 165(2) of the Act applies in respect of the supply at a rate of 10%, the following rules apply:

  • (a) the tax payable by the recipient in respect of the supply is to be calculated as if the tax under subsection 165(2) of the Act applied in respect of the supply at a rate of 8% and not at a rate of 10%; and

  • (b) despite paragraph (a), the builder is deemed to have collected the tax at the particular time in respect of the supply at a rate of 10%.

Marginal note:Adaptation — paragraph 172.1(5)(c) of Act

• 58.49 (1) If a person is a participating employer of a pension plan that acquires property or a service for the purpose of making a supply of all or part of the property or service to a pension entity of the pension plan but not for the purpose of making a supply of any part of the property or service to a pension entity of the pension plan after June 2016, for the purposes of determining the value for B in paragraph 172.1(5)(c) of the Act, the amount for New Brunswick in respect of a taxable supply of all or part of the property or service deemed to have been made under paragraph 172.1(5)(a) of the Act is determined by adapting the description of F in paragraph 172.1(5)(c) of the Act to read as follows:

  F

  is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, determined as if the tax rate for New Brunswick on the last day of the particular fiscal year were 8%; and

• Marginal note:Adaptation — paragraphs 172.1(6)(c) and (7)(c) of Act

  (2) In respect of a fiscal year of a person that includes July 1, 2016, for the purposes of determining the value for B in paragraph 172.1(6)(c) of the Act and the value for B in paragraph 172.1(7)(c) of the Act, the amount for New Brunswick is determined by adapting the description of F in paragraph 172.1(6)(c) of the Act and the description of F in paragraph 172.1(7)(c) of the Act to read as follows:

  F

  is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, determined as if the tax rate for New Brunswick on the last day of the particular fiscal year were the rate determined by the formula

  8% + (2% × G/H)

  where

  G

  is the number of days in the particular fiscal year that are after June 2016, and

  H

  is the number of days in the particular fiscal year; and

Marginal note:Adaptation — employee and shareholder benefits

58.50 In respect of the 2016 taxation year, if

• (a) an amount is required to be included under paragraph 6(1)(a) or (e) of the Income Tax Act in computing an 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 New Brunswick, or

• (b) an amount is required under subsection 15(1) of the Income Tax Act to be included in computing an individual’s income and the individual is resident in New Brunswick at the end of the year

the portion of subclause (I) of the description of A in clause 173(1)(d)(vi)(B) of the Act after sub-subclause 2 is adapted as follows:

13%, and