New Harmonized Value-added Tax System Regulations, No. 2

Marginal note:Group of individuals

40 If a supply of a residential complex or a share of the capital stock of a cooperative housing corporation is made to two or more individuals or if two or more individuals construct or substantially renovate, or engage another person to construct or substantially renovate, a residential complex, the following rules apply in respect of those individuals:

• (a) subject to paragraphs (b) and (c), the references in sections 41, 43, 45 and 46 and the references in section 256.21 of the Act to an individual are to be read as references to all of those individuals as a group;

• (b) the references in subsection 41(2) and paragraphs 45(2)(a), 46(2)(a) and 46(5)(c) to the primary place of residence of an individual or a relation of the individual are to be read as references to the primary place of residence of any of those individuals or a relation of any of those individuals;

• (c) the reference in paragraph 46(5)(d) to the particular individual or a relation of the particular individual is to be read as a reference to any of those individuals or a relation of any of those individuals;

• (d) only one of those individuals may apply for a rebate under subsection 256.21(1) of the Act in respect of the residential complex or share, the amount of which is determined under subsection 41(2), 43(1), 45(2) or 46(2); and

• (e) only one of those individuals may apply for a rebate under subsection 256.21(1) of the Act in respect of the residential complex or share, the amount of which is determined under subsection 41(2.1), 43(1.1), 45(2.1) or 46(2.1), and the individual that applies for that rebate must meet the criteria set out in

  • (i) paragraph 254(2.1)(e) of the Act in the case of a rebate the amount of which is determined under subsection 41(2.1),

  • (ii) paragraph 254.1(2.1)(e) of the Act in the case of a rebate the amount of which is determined under subsection 43(1.1),

  • (iii) paragraph 255(2.1)(e) of the Act in the case of a rebate the amount of which is determined under subsection 45(2.1), and

  • (iv) paragraph 256(2.1)(c) of the Act in the case of a rebate the amount of which is determined under subsection 46(2.1).