Public Service Body Rebate (GST/HST) Regulations (SOR/91-37)

1 [Repealed, SOR/2010-152, s. 4]

Interpretation

2 In these Regulations,

Act

Act means the Excise Tax Act; (Loi)

charity

charity has the meaning assigned by subsection 259(1) of the Act; (organisme de bienfaisance)

consideration

consideration, in respect of a supply, includes all amounts credited to the recipient of the supply in respect of a trade-in (within the meaning of subsection 153(4) of the Act) accepted in full or partial consideration for the supply or, if the supplier and the recipient are not dealing with each other at arm’s length at the time the supply is made and the amount credited to the recipient in respect of the trade-in exceeds the fair market value of the trade-in at the time ownership of it is transferred to the supplier, that fair market value; (contrepartie)

federal qualifying amount

federal qualifying amount, in respect of property or a service for a claim period of a person, means the portion of an amount included in the total determined under paragraph (a) of the definition non-creditable tax charged in subsection 259(1) of the Act that is tax under subsection 165(1) or section 212 or 218 of the Act paid or payable, or deemed to have been paid or collected, by the person or that is an amount, in relation to an amount of tax under subsection 165(1) or section 212 or 218 of the Act, required to be added in determining the net tax of the person, and

• (a) that is not included in determining an input tax credit of the person,

• (b) for which it cannot reasonably be regarded that the person has obtained or is entitled to obtain a rebate, refund or remission of the amount under any provision of the Act other than section 259 or under any other Act of Parliament, and

• (c) that is not included in an amount adjusted, refunded or credited to or in favour of the person for which a credit note referred to in subsection 232(3) of the Act has been received by the person or a debit note referred to in that subsection has been issued by the person; (montant fédéral admissible)

government funding

government funding of a particular person means

• (a) an amount of money (including a forgivable loan but not including any other loan or a refund, rebate or remission of, or credit in respect of, taxes, duties or fees imposed under any statute) that is readily ascertainable and is paid or payable to the particular person by a grantor

  • (i) for the purpose of financially assisting the particular person in carrying out the purposes of the particular person and not as consideration for supplies made by the particular person, or

  • (ii) as consideration for making property or services available for consumption or use by other persons (other than the grantor, individuals who are officers, employees, shareholders or members of the grantor, or persons related to the grantor or to such individuals), where supplies of the property or services made by the particular person to such other persons are exempt supplies, and

• (b) an amount of money paid or payable to the particular person by an organization (in this paragraph referred to as the “intermediary”) that received the amount from a grantor or by another organization that received the amount from an intermediary, where

  • (i) in the case of an amount that, after 1990, becomes payable or is paid to the particular person, the intermediary or the other organization, as the case may be, provides to the particular person, at the time the amount is paid to the particular person, a certificate in a form prescribed by the Minister certifying that the amount is government funding, and

  • (ii) the amount would be government funding of the particular person because of paragraph (a) if the amount were paid by the grantor directly to the particular person for the same purpose as it was paid to the particular person by the intermediary or the other organization, as the case may be, and if the reference to “grantor” in subparagraph (a)(ii) included a reference to that intermediary or other organization, as the case may be; (montant de financement public)

grantor

grantor means

• (a) a government or municipality, other than a corporation all or substantially all of whose activities are commercial activities or the supply of financial services or any combination thereof,

• (b) a corporation that is controlled by a government or by a municipality and one of the main purposes of which is to fund charitable or non-profit endeavours,

• (c) a trust, board, commission or other body that is established by a government, municipality or corporation described in paragraph (b) and one of the main purposes of which is to fund charitable or non-profit endeavours, and

• (d) a band of Indians within the meaning of any Act of Parliament; (subventionnaire)

municipality

municipality has the meaning assigned by subsection 259(1) of the Act. (municipalité)

provincial qualifying amount

provincial qualifying amount, in respect of property or a service for a claim period of a person, means the portion of an amount included in the total determined under paragraph (a) of the definition non-creditable tax charged in subsection 259(1) of the Act that is tax under subsection 165(2) or section 212.1 or 218.1 of the Act or Division IV.1 of Part IX of the Act paid or payable, or deemed to have been paid or collected, by the person or that is an amount, in relation to an amount of tax under subsection 165(2) or section 212.1 or 218.1 of the Act or Division IV.1 of Part IX of the Act, required to be added in determining the net tax of the person, and

• (a) that is not included in determining an input tax credit of the person,

• (b) for which it cannot reasonably be regarded that the person has obtained or is entitled to obtain a rebate, refund or remission of the amount under any provision of the Act other than section 259 or under any other Act of Parliament, and

• (c) that is not included in an amount adjusted, refunded or credited to or in favour of the person for which a credit note referred to in subsection 232(3) of the Act has been received by the person or a debit note referred to in that subsection has been issued by the person. (montant admissible provincial)

Prescribed Government Organizations

2.1 For the purpose of the definition non-profit organization in subsection 259(1) of the Act, a person that is a specified Crown agent or an agent of Her Majesty in right of a province and that would be a non-profit organization within the meaning assigned by subsection 123(1) of the Act if the definition of that expression were read without reference to “a government” is a prescribed government organization.

Percentage of Government Funding

• 3 (1) For the purposes of the definition percentage of government funding in subsection 259(1) of the Act, the percentage in respect of a particular person for a fiscal year of the particular person shall be determined as the greater of

  • (a) the percentage determined by the formula

    A ÷ (A + B + C - D) × 100

    where

    A

    is the amount, if any, by which the total of all amounts, each of which is identified in the annual financial statements of the particular person for the year as government funding of the particular person that is received or became receivable in the year (depending upon the method followed by the person in determining the particular person’s revenue or funding for the year), exceeds the total of all government funding of the particular person that is repaid in the year by the particular person or that became receivable by the particular person before the beginning of the year and is not received before the end of the year,

    B

    is the total of

    • (i) all monetary gifts, other than government funding of the particular person, that are received in the year by the particular person,

    • (ii) the total of all amounts each of which is the amount, if any, by which the fair market value, at the time of receipt, of a financial instrument received by the particular person in the year exceeds the consideration paid or payable by the particular person for the financial instrument, where that value is readily determinable at that time,

    • (iii) the amount, if any, by which

      • (A) the total of all consideration that becomes due, or is paid without becoming due, in the year to the particular person for supplies made by the particular person, including all consideration for a service, or for the use of property, that is provided by the particular person and to which section 135 of the Act applies, but not including any consideration for

        • (I) supplies of rights to participate in games of chance conducted by the particular person,

        • (II) supplies deemed under section 187 of the Act to have been made by the particular person,

        • (III) supplies by way of sale of real property or capital property of the particular person,

        • (IV) supplies of financial instruments, and

        • (V) supplies deemed under any of subsections 171(3), 172(2) and 183(4) to (6) of the Act to have been made by the particular person or supplies by the particular person to which subsection 173(1) of the Act applies,

      exceeds

      • (B) the total of all amounts paid or credited to recipients in the year as or on account of a reduction in, or a rebate or refund of, all or part of the consideration for supplies made by the particular person to the recipients, and

    • (iv) the amount, if any, by which

      • (A) the total of all amounts each of which is consideration that becomes due, or is paid without becoming due, in the year to the particular person for a supply of a right to participate in a game of chance conducted by the particular person or for a supply deemed under section 187 of the Act to have been made in the year by the particular person in respect of a bet

      exceeds

      • (B) the total of all amounts each of which is an amount of money paid or payable by the particular person as a prize or winnings in the game or in satisfaction of the bet or is consideration paid or payable by the particular person for property or a service that is given as a prize or winnings in the game or in satisfaction of the bet,

    C

    is the total of

    • (i) all amounts each of which is an amount of money that is interest or a dividend and that is received in the year by the particular person,

    • (ii) all amounts of money that are distributed in the year to the particular person by a trust in respect of a right of the particular person as a beneficiary (within the meaning of paragraph 108(1)(b) of the Income Tax Act) under the trust otherwise than as a distribution of capital,

    • (iii) all amounts that become due, or are paid without becoming due, in the year to the particular person in respect of a debt security issued by the particular person to, or a loan from,

      • (A) another person with whom the particular person was not dealing at arm’s length at the time the loan was made or the security was issued, as the case may be, or

      • (B) another person who was, is or agrees to become an officer, employee, shareholder, partner or member of the particular person,

      but not including any amount in respect of a loan where the interest on the loan is payable at least annually at a rate that would be reasonable, having regard to all the circumstances, had the loan been made between parties dealing with each other at arm’s length,

    • (iv) all consideration that becomes due, or is paid without becoming due, in the year to the particular person for an equity security issued by the particular person, and

    • (v) all monetary contributions of capital that are received in the year by the particular person, other than government funding of the particular person and amounts included in any of subparagraphs (i) to (iv), and

    D

    is the total of

    • (i) 25% of the total for B in this formula determined in respect of the year, and

    • (ii) all amounts paid in the year by the particular person as repayments of amounts that are included in the total for B or C for the year or would be so included if the amounts had been received by the particular person in the year, and

  • (b) the percentage that is equal to

    • (i) where the year is the first fiscal year of the particular person, zero,

    • (ii) where the year is the second fiscal year of the particular person, the percentage that would be determined under paragraph ( a) if all references therein to “the year” were references to “the first fiscal year of the particular person”, and

    • (iii) in any other case, the percentage that would be determined under paragraph ( a) if all references therein to “the year” were references to “the two immediately preceding fiscal years of the particular person”.

• (2) Where the denominator of the fraction in the formula set out in paragraph (1)(a) is nil or a negative amount, that denominator shall be deemed to be equal to

  • (a) where the numerator of that fraction is nil, 1; and

  • (b) in any other case, the numerator of that fraction.

Prescribed Property and Services

• 4 (1) For the purpose of determining a rebate payable to a particular person under section 259 of the Act, a prescribed property or service is

  • (a) property or a service that is primarily for consumption, use or supply by the particular person in the course of making supplies by way of lease, licence or similar arrangement of a residential complex or a residential unit (other than supplies of short-term accommodation and supplies that are exempt supplies by reason of paragraph 6(b) or section 6.1 of Part I of Schedule V to the Act), where

    • (i) in the case of property or a service that is primarily for consumption, use or supply in the course of making supplies of residential units in a multiple unit residential complex that contains more than two residential units and

      • (A) that is owned by the particular person, or

      • (B) that has been supplied by way of lease, licence or similar arrangement to the particular person,

      all or substantially all of the residential units in the complex are supplied for the purpose of occupancy that is not restricted to

      • (C) seniors

      • (D) youths,

      • (E) students,

      • (F) individuals with a disability, individuals in distress or other individuals in need of assistance,

      • (G) individuals whose eligibility for occupancy of the complex or unit or for reduced lease payments is dependent on a means or income test,

      • (H) individuals for whose benefit no other persons, other than public sector bodies, pay consideration for the supplies of the accommodation and who either pay no consideration for the supplies or pay consideration that is significantly less than the consideration that could reasonably be expected to be paid for comparable supplies made by a person in the business of making such supplies for the purpose of earning a profit, or

      • (I) any combination of individuals described in any of clauses (C) to (H), and

    • (ii) in any other case, the principal purpose of the particular person in carrying on the activity of supplying the complex or unit is other than to provide accommodation for individuals described in any of clauses (i)(C) to (H);

  • (b) property or a service that is primarily for consumption, use or supply by the particular person in the course of making a supply of a parking space included in section 8.1 of Part I of Schedule V to the Act for a given period, if the supply is incidental to the use of land, a residential complex or a residential unit and property and services for use by the particular person primarily in the course of making supplies by way of lease, licence or similar arrangement of the land, residential complex or residential unit during the period are prescribed property or services because of paragraph (a);

  • (c) property or a service that is primarily for consumption, use or supply by the particular person in the course of making

    • (i) supplies of land, a building or a part of a building to a person other than a public sector body, where the supplies are exempt supplies by reason of section 6.1 of Part I of Schedule V to the Act, or

    • (ii) exempt supplies of parking spaces, where those supplies are incidental to the use of the land, building or part of a building;

  • (d) property or a service that is primarily for consumption, use or supply by the particular person in the course of making

    • (i) supplies of land, a building or a part of a building to a public sector body for a period, where the supplies are exempt supplies by reason of section 6.1 of Part I of Schedule V to the Act and the property or service would be a prescribed property or service by reason of paragraph (a) if the supplies of the land, building or part of a building that are made during that period by the body were made by the particular person, or

    • (ii) exempt supplies of parking spaces, where those supplies are incidental to the use of the land, building or part of a building;

  • (e) excisable goods that are acquired by the particular person for the purpose of making a supply of the excisable goods for consideration that is not included as part of the consideration for a meal supplied together with the excisable goods, except where tax is payable in respect of the supply by the particular person of the excisable goods;

  • (f) a membership in a club the main purpose of which is to provide dining, recreational or sporting facilities;

  • (g) property or a service that is acquired, imported or brought into a participating province by the particular person exclusively for the personal consumption, use or enjoyment (in this paragraph referred to as the “benefit”) of a particular individual who was, is or agrees to become an officer, employee or member of the particular person, or of another individual related to the particular individual, except if

    • (i) the particular person supplies the property or service to the particular individual or the other individual for consideration that becomes due in the year in which the property or service was acquired or imported, or brought into the participating province, as the case may be, by the particular person and that is equal to the fair market value of the property or service at the time the consideration becomes due and tax is payable in respect of the supply, or

    • (ii) if no amount were payable by the particular individual for the benefit, no amount in respect of the benefit would be included under section 6 of the Income Tax Act in computing the income of the particular individual for the purposes of that Act;

  • (h) property or a service that is supplied to another person if

    • (i) an amount is required under paragraph 6(1)(a), (e), (k) or (l) or subsection 15(1) of the Income Tax Act to be included in computing the income of the other person for the purposes of that Act, and

    • (ii) subsection 173(1) of the Excise Tax Act does not apply to the supply or the subsection does apply to the supply but no tax is payable in respect of it;

  • (i) property or a service that is deemed under section 273 of the Act to be acquired, imported or brought into a participating province by the particular person acting as the operator (within the meaning of that section) of a joint venture in respect of which an election under that section is in effect, if any of the co-venturers (within the meaning of that section) of the joint venture would not be entitled to claim a rebate under section 259 of the Act in respect of the property or service if it were otherwise acquired, imported or brought in by the co-venturer for the same purpose as that for which it is acquired, imported or brought in by the particular person on behalf of the co-venturer and if tax were payable by the co-venturer in respect of that property or service; and

  • (j) a returnable container (within the meaning assigned by section 226 of the Act) when acquired or brought into a participating province by a person in circumstances in which the person, if a registrant, would, because of subsection 226(4) of the Act, not be entitled to include tax in respect of the acquisition or bringing into the province of the container in determining an input tax credit of the person, whether the person would otherwise have been so entitled in the absence of that subsection.

• (2) Paragraph (1)(a) applies, with such modifications as the circumstances require, in respect of property or a service for consumption, use or supply in the course of making a supply of land included in section 7 of Part I of Schedule V to the Act as if the land were a residential complex.