name: Excise Tax Act
unofficial_text: # Excise Tax Act
  
  RSC 1985, c E-15
  
  An Act respecting excise taxes
  
  ## Short Title 
  
  ### Short title
  
  1 This Act may be cited as the Excise Tax Act.  
  
  ## Interpretation 
  
  ### Definitions
  
  2 (1) The following definitions apply in this section, Parts I to VIII (other than section 121) and Schedules I to IV:  
  *accredited representative* [Repealed, 2002, c. 22, s. 366]   
  *Agency* means the Canada Revenue Agency continued by subsection 4(1) of the Canada Revenue Agency Act ; (Agence)   
  *Atlantic manufactured tobacco* [Repealed, 2001, c. 16, s. 16]   
  *bank* means a bank or an authorized foreign bank within the meaning of section 2 of the Bank Act ; (banque)   
  *black stock* [Repealed, 2002, c. 22, s. 413]   
  *black stock cigarettes* [Repealed, 2002, c. 22, s. 413]   
  *black stock manufactured tobacco* [Repealed, 2001, c. 16, s. 16]   
  *cigar* [Repealed, 2002, c. 22, s. 366]   
  *cigarette* [Repealed, 2002, c. 22, s. 366]   
  *Commissioner* means the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act ; (commissaire)   
  *cosmetics* means goods, whether possessing therapeutic or prophylactic properties or not, commonly or commercially known as toilet articles, preparations or cosmetics, that are intended for use or application for toilet purposes, or for use in connection with the care of the human body, including the hair, nails, eyes, teeth, or any other part or parts thereof, whether for cleansing, deodorizing, beautifying, preserving or restoring, and includes toilet soaps, shaving soaps and shaving creams, skin creams and lotions, shampoos, mouth washes, oral rinses, toothpastes, tooth powders, denture creams and adhesives, antiseptics, bleaches, depilatories, perfumes, scents and similar preparations; (cosmétiques)   
  *diesel fuel* includes any fuel oil that is suitable for use in internal combustion engines of the compression-ignition type, other than any such fuel oil that is intended for use and is actually used as heating oil; (combustible diesel)   
  *document* includes money, a security and a record; (document)   
  *duty free shop* has the meaning assigned by subsection 2(1) of the Customs Act ; (boutique hors taxes)   
  *foreign duty free shop* means a retail store that is located in a country other than Canada and that is authorized under the laws of that country to sell goods free of certain duties and taxes to individuals who are about to leave that country; (boutique hors taxes à l’étranger)   
  *foreign ships’ stores* means tobacco products taken on board a vessel or aircraft while the vessel or aircraft is outside Canada and that are intended for consumption by or sale to the passengers or crew while the passengers and crew are on board the vessel or aircraft; (provisions de bord à l’étranger)   
  *gasoline* means gasoline type fuels for use in internal combustion engines other than aircraft engines; (essence)   
  *health goods* means any material, substance, mixture, compound or preparation, of whatever composition or in whatever form, sold or represented for use in the diagnosis, treatment, mitigation or prevention of a disease, a disorder, an abnormal physical state or the symptoms thereof in human beings or animals or for use in restoring, correcting or modifying organic functions in human beings or animals; (marchandises relatives à la santé)   
  *heating oil* means any fuel oil that is consumed exclusively for providing heat to a home, building or similar structure and that is not consumed for generating heat in an industrial process, including any commercial process that involves removing moisture from a good; (huile à chauffage)   
  *Indian* [Repealed, 2002, c. 22, s. 413]   
  *licensed tobacco manufacturer* [Repealed, 2001, c. 16, s. 16]   
  *listed international agreement* means  
  (a) the Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time by a protocol, or other international instrument, as ratified by Canada, or 
  (b) a comprehensive tax information exchange agreement that Canada has entered into and that has effect, in respect of another country or jurisdiction; ( accord international désigné)   
  *manufactured tobacco* [Repealed, 2002, c. 22, s. 366]   
  *manufacturer or producer* includes  
  (a) the assignee, trustee in bankruptcy, liquidator, executor, liquidator of a succession or curator of any manufacturer or producer and, generally, any person who continues the business of a manufacturer or producer or disposes of his assets in any fiduciary capacity, including a bank exercising any powers conferred upon it by the Bank Act and a trustee for bondholders,  
  (b) any person, firm or corporation that owns, holds, claims or uses any patent, proprietary, sales or other right to goods being manufactured, whether by them, in their name or for or on their behalf by others, whether that person, firm or corporation sells, distributes, consigns or otherwise disposes of the goods or not, 
  (c) any department of the government of Canada or any province, any board, commission, railway, public utility, manufactory, company or agency owned, controlled or operated by the government of Canada or any province, or under the authority of the legislature or the lieutenant governor in council of any province, that manufactures or produces taxable goods, 
  (d) any person who sells, otherwise than in a retail store exclusively and directly to consumers, cosmetics that were not manufactured by him in Canada, other than a person who sells those cosmetics exclusively and directly to hairstylists, cosmeticians and other similar users for use in the provision of personal grooming services and not for resale, 
  (e)  [Repealed, R.S., 1985, c. 12 (4th Supp.), s. 1]  
  (f) any person who, by himself or through another person acting for him, prepares goods for sale by assembling, blending, mixing, cutting to size, diluting, bottling, packaging or repackaging the goods or by applying coatings or finishes to the goods, other than a person who so prepares goods in a retail store for sale in that store exclusively and directly to consumers, 
  (g) any person who imports into Canada new motor vehicles designed for highway use, or chassis therefor, 
  (h) any person who sells, otherwise than predominantly to consumers, new motor vehicles designed for highway use, or chassis therefor, 
  (i) any person who sells goods enumerated in Schedule III.1, other than a person who sells those goods exclusively and directly to consumers, and 
  (j) any person who sells or leases prerecorded video cassettes that are new or have not been used in Canada, other than a person who sells or leases such goods exclusively and directly to consumers other than to consumers who lease such goods to other persons; ( fabricant ou producteur)   
  *Minister* means the Minister of National Revenue; (ministre)   
  *mobile home* means a trailer unit not less than three metres wide by eight metres long, equipped with complete plumbing, electrical and heating facilities and designed to be towed on its own chassis to a building site for installation on a foundation and connection to service facilities at that site and to be used for residential, commercial, educational, institutional or industrial purposes, but does not include any free-standing appliances or furniture sold with the unit or any travel trailer, motor home, camping trailer or other vehicle or trailer for recreational use; (maison mobile)   
  *modular building unit* means a building component or unit, the manufacture and assembly of which is completed or substantially completed before delivery to a construction site, that is designed for installation on a foundation and is composed of at least one room or area with finished walls, a finished floor and a finished ceiling, including installed plumbing, heating and electrical equipment appropriate to that room or area, and that, when installed on a foundation at the site, with or without other similarly manufactured and assembled components or units, forms a complete residential, commercial, educational, institutional or industrial building, but does not include any freestanding appliances or furniture sold with the unit; (bâtiment modulaire)   
  *municipality* means  
  (a) an incorporated city, town, village, metropolitan authority, township, district, county or rural municipality or other incorporated municipal body however designated, or 
  (b) such other local authority as the Minister may determine to be a municipality for the purposes of this Act; ( municipalité)   
  *operator* of a duty free shop means the person operating the duty free shop who is licensed as a wholesaler under Part VI and is deemed by subsection 55(2) to be a bona fide wholesaler or jobber; (exploitant)   
  *person* means an individual, partnership, corporation, trust, estate, or a body that is a society, union, club, association, commission or other organization of any kind whatever; (personne)   
  *prescribed* means  
  (a) in the case of a form, the information to be given on a form or the manner of filing a form, prescribed by the Minister, and 
  (b) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation; ( prescrit)   
  *record* includes an account, an agreement, a book, a chart or table, a diagram, a form, an image, an invoice, a letter, a map, a memorandum, a plan, a return, a statement, a telegram, a voucher, and any other thing containing information, whether in writing or in any other form; (registre)   
  *stamp* or 
  *excise stamp* means a stamp prepared for the purposes of this Act pursuant to a direction of the Minister under section 60; (timbre ou timbre d’accise)   
  *telecommunication* [Repealed, 1993, c. 38, s. 86]   
  *this Act* means this Act except Part IX and Schedules V to X. (présente loi)   
  *tobacco stick* [Repealed, 2002, c. 22, s. 366]  
  
  ### Application to territories
  
  (2) For the purposes of this Act, the expression “Her Majesty in right of a province” includes the governments of Yukon, the Northwest Territories and Nunavut and the expression “legislature of any province” includes the Legislative Assembly of Yukon, the Northwest Territories or Nunavut. 
  
  ### Arm’s length
  
  (2.1) For the purposes of this Act, 
  (a) related persons shall be deemed not to deal with each other at arm’s length; and 
  (b) it is a question of fact whether persons not related to each other were, at any particular time, dealing with each other at arm’s length. 
  
  ### Related persons
  
  (2.2) For the purposes of this Act, persons are related to each other if they are related persons within the meaning of subsections 251(2) to (6) of the Income Tax Act, except that  
  (a) references in those subsections to “corporation” shall be read as references to “corporation or partnership”; and 
  (b) references in those subsections to “shares” or “shareholders” shall, in respect of a partnership, be read as references to “rights” or “partners”, respectively. 
  
  ### Associated persons
  
  (2.3) For the purposes of this Act, a particular corporation is associated with another corporation if, by reason of subsections 256(1) to (6) of the Income Tax Act, the particular corporation is associated with the other corporation for the purposes of that Act.  
  
  ### Corporations controlled by same person or group
  
  (2.4) For the purposes of this Act, a person other than a corporation is associated with a particular corporation if the particular corporation is controlled by the person or by a group of persons of which the person is a member and each of whom is associated with each of the others. 
  
  ### Partnership or trust
  
  (2.5) For the purposes of this Act, a person is associated with 
  (a) a partnership if the total of the shares of the profits of the partnership to which the person and all other persons who are associated with the person are entitled is more than half of the total profits of the partnership, or would be more than half of the total profits of the partnership if it had profits; and 
  (b) a trust if the total of the values of the interests in the trust of the person and all other persons who are associated with the person is more than half of the total value of all interests in the trust. 
  
  ### Association with third person
  
  (2.6) For the purposes of this Act, a person is associated with another person if each of them is associated with the same third person. 
  
  ### Importer deemed manufacturer or producer
  
  (3) For the purposes of this Act, a person who is a manufacturer or producer within the meaning of paragraph (d), (i) or (j) of the definition of that term in subsection (1), other than a member of a class of small manufacturer or producer that is exempted by regulations made under subsection 54(2) from the requirement of subsection 54(1) to apply for a licence, and who imports into Canada 
  (a) cosmetics, 
  (b)  [Repealed, R.S., 1985, c. 12 (4th Supp.), s. 1]  
  (c) goods enumerated in Schedule III.1, or 
  (d) prerecorded video cassettes that are new or have not been used in Canada shall be deemed to be the manufacturer or producer in Canada thereof and not the importer thereof and the goods shall be deemed to be goods produced or manufactured in Canada and not imported goods. 
  
  ### Goods deemed not to be imported
  
  (4) For the purposes of this Act, goods imported into Canada by a person who is a manufacturer or producer within the meaning of paragraph (f) of the definition of that term in subsection (1), other than a member of a class of small manufacturer or producer that is exempted by virtue of regulations made under subsection 54(2) from the requirement of subsection 54(1) to apply for a licence, that are prepared, as described in that paragraph, by or on behalf of that person in Canada for sale shall be deemed to be goods produced or manufactured in Canada and not imported goods. 
  
  ### Importer deemed manufacturer or producer
  
  (4.1) For the purposes of this Act, a person who is a manufacturer or producer within the meaning of paragraph (g) of the definition of that term in subsection (1), other than a member of a class of small manufacturer or producer that is exempted by virtue of regulations made under subsection 54(2) from the requirement of subsection 54(1) to apply for a licence, and who imports new motor vehicles designed for highway use, or chassis therefor, into Canada shall be deemed to be the manufacturer or producer in Canada thereof and not the importer thereof and the vehicles or chassis shall be deemed to be goods produced or manufactured in Canada and not imported goods. 
  
  ### Goods deemed not to be imported
  
  (4.2) For the purposes of this Act, new motor vehicles designed for highway use, and chassis therefor, imported into Canada that are sold by a person who is a manufacturer or producer within the meaning of paragraph (h) of the definition of that term in subsection (1), other than a member of a class of small manufacturer or producer that is exempted by virtue of regulations made under subsection 54(2) from the requirement of subsection 54(1) to apply for a licence, shall be deemed to be goods produced or manufactured in Canada and not imported goods. 
  
  ### Idem
  
  (5) For the purposes of this Act, a licensed wholesaler who gives away without charge, as free samples, replacement goods or parts or otherwise, goods on which taxes have not been paid under this Act is deemed to have retained the goods for his own use, unless 
  (a) he gives them away as free replacement goods or parts under a written warranty of the manufacturer of the goods to be replaced or of the goods into which the parts are to be incorporated; and 
  (b) the amount, if any, charged for the warranty is included in the sale price charged by the manufacturer for the goods to be replaced or the goods into which the parts are to be incorporated or, if those goods are imported goods, in the duty paid value thereof. 
  
  ### Retroactive effect
  
  (5.1) For the purposes of this Act, a determination under paragraph (b) of the definition 
  *municipality* in subsection (1) shall, if it so provides, be retroactive and be deemed to have come into force on a day prior to the day on which it is made, which prior day shall not be more than four years before the day on which the determination is made.  
  
  ### References to tax etc. under Act
  
  (6) Any reference in a regulation or order made before 1991 under an Act of Parliament to a refund, remission or other relief from or in respect of a tax, duty, excise or levy under 
  (a) the Excise Tax Act,  
  (b) the laws relating to customs or customs duties, or 
  (c) the laws relating to excise or duties of excise shall, except where the regulation or order otherwise expressly provides, be deemed not to include a reference to a refund, remission or other relief from the tax imposed under Part IX. 
  (7)  [Repealed, 2001, c. 16, s. 16]  
  
  # PART I 
  
  ## Insurance Premiums Other than Marine 
  
  ### Definitions
  
  3 In this Part,  
  *exchange* means a group of persons formed for the purpose of exchanging reciprocal contracts of indemnity or inter-insurance with each other through the same attorney; (Bourse)   
  *insurer* means any corporation incorporated for the purpose of carrying on the business of insurance, any association of persons formed on the plan known as Lloyds whereby each associate underwriter becomes liable for a stated, limited or proportionate part of the whole amount insured under a contract of insurance, and any exchange; (assureur)   
  *net premiums* means the gross premiums paid or payable under a contract of insurance, less dividends received or receivable in respect of the contract and less premiums returned on cancellation of the contract. (primes nettes)   
  *Superintendent* [Repealed, 1999, c. 17, s. 146]  
  
  ### Tax on premiums in respect of insurance effected outside Canada
  
  4 (1) Every person resident in Canada by whom or on whose behalf a contract of insurance, other than a contract of reinsurance, is entered into or renewed against a risk ordinarily within Canada at the time the contract is entered into or renewed, 
  (a) with 
  (i) any insurer not incorporated under the laws of Canada or of any province or not formed in Canada, or 
  (ii) any exchange having its chief place of business outside Canada or having a principal attorney-in-fact whose chief place of business is outside Canada, that at the time the contract is entered into or renewed is not authorized under the laws of Canada or of any province to transact the business of insurance, or 
  (b) with any insurer that at the time the contract is entered into or renewed is authorized under the laws of Canada or of any province to transact the business of insurance, if the contract is entered into or renewed through a broker or agent outside Canada, shall, on or before April 30 in each year, pay to the Minister, in addition to any other tax payable under any other law, a tax of ten per cent on the net premiums paid or payable during the immediately preceding calendar year in respect of that insurance. 
  
  ### Application
  
  (2) Subsection (1) does not apply to 
  (a) any contract of life insurance, personal accident insurance, sickness insurance or insurance against marine risks, or any contract of insurance against nuclear risks to the extent that the insurance against nuclear risks is not, in the opinion of the Commissioner, available within Canada; or 
  (b) any other contract of insurance entered into after February 19, 1973 to the extent that the insurance is not, in the opinion of the Commissioner, available within Canada. 
  
  ### Residence of corporation
  
  (3) For the purposes of this section, every corporation carrying on business in Canada shall be deemed to be a person resident in Canada. 
  
  ### Through whom contract made
  
  (4) Where a contract of insurance is entered into or renewed through more than one broker or agent, or where payment of the premium or any part of the premium thereon is effected through more than one broker or agent, the contract shall, for the purposes of this Part, be deemed to have been entered into or renewed, as the case may be, through the broker or agent directly retained or instructed by the insured and not through any other broker or agent. 
  
  ### Returns
  
  5 (1) Every person to whom section 4 applies shall, on or before April 30 in each year, make a return in writing to the Minister stating, with respect to each contract of insurance entered into or renewed by him or on his behalf during the immediately preceding calendar year and on which the net premiums are taxable under section 4, 
  (a) the name of the insurer; 
  (b) the amount of the insurance; 
  (c) the net premiums paid or payable during the immediately preceding calendar year; and 
  (d) if the contract was entered into or renewed as described in paragraph 4(1)(b), the name and address of the broker or agent outside Canada through whom the contract was entered into or renewed. 
  
  ### Return by broker or agent
  
  (2) Every person who, acting as a broker or agent, obtains, effects or places or assists in obtaining, effecting or placing any contract of insurance entered into or renewed as described in paragraph 4(1)(a), and on which the net premiums are taxable under section 4, shall, on or before March 15 in each year, make a return in writing to the Minister stating, with respect to each contract so entered into or renewed during the immediately preceding calendar year, the name and address of the person resident in Canada by whom or on whose behalf the contract was entered into or renewed and the net premiums paid or payable during that year. 
  
  ### Return by insurer
  
  (3) Every insurer that enters into or renews a contract of insurance as described in paragraph 4(1)(b), and on which the net premiums are taxable under section 4, shall, on or before March 15 in each year, make a return in writing to the Minister stating, with respect to each contract so entered into or renewed during the immediately preceding calendar year, 
  (a) the name and address of each person resident in Canada with whom or on whose behalf the contract was entered into or renewed; 
  (b) the net premiums paid or payable during the immediately preceding calendar year; and 
  (c) the name and address of the broker or agent outside Canada through whom the contract was entered into or renewed. 
  
  ### Examination of books and records
  
  6 The Commissioner or any officer or employee of the Agency appointed by the Commissioner may visit the office of any insurer, broker or agent and examine their books and records for the purpose of verifying any return required by this Part, and the Commissioner and that officer or employee have a right of access to those books and records at all reasonable hours. 
  
  ### Definition
  
  7 (1) In this section, 
  *month* means a period beginning on a particular day in a calendar month and ending on  
  (a) the day immediately before the day in the next calendar month that has the same calendar number as the particular day; or 
  (b) if the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month. 
  
  ### Failure to file a return when required
  
  (1.1) Every person who fails to file a return for a period as and when required under subsection 5(1) shall pay a penalty equal to the sum of 
  (a) an amount equal to 1% of the amount of tax unpaid at the expiration of the time for filing the return, and 
  (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on which the return was required to be filed to the day on which the return is filed. 
  
  ### Idem
  
  (2) Every person who refuses or neglects to make a return as required by subsection 5(2) or (3) is liable to a penalty of ten dollars for each day of default or fifty dollars, whichever is the lesser. 
  
  # PART II 
  
  ## Air Transportation Tax 
  
  ## Interpretation 
  
  ### Definitions
  
  8 In this Part,  
  *air carrier* means a person who provides transportation of a person by air; (transporteur aérien)   
  *certified air carrier* means  
  (a) an air carrier who is authorized by the Canadian Transportation Agency under Part II of the Canada Transportation Act to operate a domestic service or an international service, and  
  (b) an air carrier, other than an air carrier described in paragraph (a), who, personally or by agent, sells in Canada transportation of a person by air that is to be provided in whole or in part by an air carrier described in paragraph (a); ( transporteur aérien titulaire de certificat)   
  *emplanement* does not include an emplanement resulting from a landing of an aircraft made solely to obtain ground services for the aircraft; (embarquement)   
  *licensed air carrier* means a certified air carrier to whom a licence has been granted under section 17; (transporteur aérien titulaire de licence)   
  *tax* means the air transportation tax imposed under this Part; (taxe)   
  *taxation area* means  
  (a) Canada, 
  (b) the United States (except Hawaii), and 
  (c) the Islands of St. Pierre and Miquelon. ( zone de taxation)  
  
  ## Her Majesty 
  
  ### Binding on Her Majesty
  
  9 This Part is binding on Her Majesty in right of Canada or a province. 
  
  ## Tax Imposed 
  
  ### Tax imposed
  
  10 (1) There shall be imposed, levied and collected an air transportation tax, determined under section 11, on each amount paid or payable in Canada for transportation of a person by air where that transportation begins at a point in the taxation area and ends at a point in the taxation area. 
  
  ### Idem
  
  (2) There shall be imposed, levied and collected an air transportation tax, determined under section 11, on each amount paid or payable outside Canada for the transportation of a person by air where that transportation 
  (a) begins at a point in the taxation area and ends at a point in the taxation area, and 
  (b) includes an emplanement by the person on an aircraft at an airport in Canada on a specific flight having as a destination an airport in the taxation area outside Canada and subsequent deplanement by the person from the flight at an airport outside Canada, payable by the person at the time when, in respect of the transportation, he emplanes at the airport in Canada described in paragraph (b) on the aircraft therein described, except where the air transportation tax has been paid before that time to a licensed air carrier or his agent and evidence of the prepayment of tax is submitted by the person, in a manner and form and to a member of a class of persons prescribed by regulation of the Governor in Council. 
  
  ### Transportation by air
  
  (3) For the purposes of subsection (1), transportation by air begins at a point in the taxation area and ends at a point in the taxation area if the transportation does not include a departure, destination or intermediate stop, other than a transfer stop, outside the taxation area. 
  
  ### Idem
  
  (4) For the purposes of subsection (2), transportation by air begins at a point in the taxation area and ends at a point in the taxation area if the transportation 
  (a) does not include a departure, destination or intermediate stop, other than a transfer stop, outside the taxation area; and 
  (b) includes at least one departure from a point in Canada, other than a departure resulting from a transfer stop. 
  
  ### Amount of tax
  
  11 (1) Subject to subsections (2) and (2.1), the tax imposed under subsection 10(1) or (2) on each amount paid or payable for transportation of a person by air shall be an amount that is the lesser of 
  (a) the aggregate of 
  (i) the amount that is 
  (A) 4% of each amount paid or payable, if the amount is paid or payable in Canada after December 31, 1997 for transportation of a person by air that begins after February 28, 1998, 
  (B) 4% of each amount paid or payable, if the amount is paid or payable outside Canada after December 31, 1997 and the first emplanement by the person, as described in paragraph 10(2)(b), occurs after February 28, 1998, or 
  (C) 7% of each amount paid or payable, in any other case, and 
  (ii) $6 or such lesser amount as may, for the purposes of this subparagraph, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, and 
  (b) such amount as may, for the purposes of this subsection, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport. 
  
  ### Charter flights
  
  (2) Where the amount paid or payable in Canada for air transportation is for transportation by an aircraft that has been chartered for the purpose by one or more charterers, the tax imposed under subsection 10(1) on the amount paid or payable to a certified air carrier by each charterer shall be an amount that is the lesser of 
  (a) the aggregate of 
  (i) the amount that is 
  (A) 4% of each amount paid or payable, if the amount is paid or payable after December 31, 1997 to a certified air carrier by the charterer for transportation of a person by air that begins after February 28, 1998, or 
  (B) 7% of each amount paid or payable to a certified air carrier by the charterer, in any other case, and 
  (ii) the amount that is 
  (A) $1.50 in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by any person, if the amount is paid or payable to a certified air carrier by the charterer after December 31, 1997 for transportation of the person by air that begins after February 28, 1998, or 
  (B) $3 in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by any person, in any other case, and 
  (b) the aggregate of such amount as may, for the purposes of this subsection, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by any person. 
  
  ### Amount of tax imposed on amount paid outside Canada where tax payable in Canada
  
  (2.1) Where the tax imposed under subsection 10(2) on an amount paid or payable outside Canada for transportation of a person by air is payable by the person at the time he emplanes at an airport in Canada and evidence of the amount paid or payable for the transportation is not submitted, in the manner and form prescribed by regulation of the Governor in Council, by the person to the licensed air carrier required by this Part to collect the tax in Canada, and an amount is prescribed by order of the Governor in Council pursuant to paragraph (1)(b), the tax payable by the person shall be the amount so prescribed. 
  
  ### When tax not payable
  
  (3) The tax imposed by subsection 10(1), as determined under subsection (1), on each amount paid or payable for transportation of a person by air is not payable in the case of transportation purchased as part of a continuous journey where 
  (a) the journey includes a charter flight in respect of which tax is imposed under section 10 or 12; and 
  (b) evidence of the continuous journey is submitted by the person to the licensed air carrier or his agent from whom the transportation by air is purchased. 
  
  ### Specific tax
  
  12 (1) There shall be imposed, levied and collected an air transportation tax, determined under section 13, on each amount paid or payable in Canada for transportation of a person by air where that transportation begins at a point in the taxation area and ends at a point outside the taxation area. 
  
  ### Idem
  
  (2) There shall be imposed, levied and collected an air transportation tax, determined under section 13, on each amount paid or payable outside Canada for the transportation of a person by air where such transportation 
  (a) begins at a point in the taxation area and ends at a point outside the taxation area, and 
  (b) includes an emplanement by the person on an aircraft at an airport in Canada on a specific flight having as a destination an airport outside Canada and subsequent deplanement by the person from the flight at an airport outside Canada, payable by the person at the time when, in respect of the transportation, he emplanes at the airport in Canada described in paragraph (b) on the aircraft therein described, except where the air transportation tax has been paid before that time to a licensed air carrier or his agent and evidence of the prepayment of tax is submitted by the person, in a manner and form and to a member of a class of persons prescribed by regulation of the Governor in Council. 
  
  ### Transportation by air
  
  (3) For the purposes of subsection (1), transportation by air begins at a point in the taxation area and ends at a point outside the taxation area if the transportation or any part thereof includes at least one departure from a point in the taxation area, other than a departure resulting from a transfer stop, to a destination outside the taxation area. 
  
  ### Idem
  
  (4) For the purposes of subsection (2), transportation by air begins at a point in the taxation area and ends at a point outside the taxation area if the transportation or any part thereof includes at least one departure from a point in Canada, other than a departure resulting from a transfer stop, to a destination outside the taxation area, whether or not there are any intermediate stops. 
  
  ### Amount of tax
  
  13 (1) Subject to subsection (2), the tax imposed under subsection 12(1) for transportation of a person by air shall be 
  (a) an amount that is the lesser of 
  (i) the amount of 
  (A) $30, if the amount paid or payable for transportation of the person by air is paid or payable after December 31, 1997 for transportation of the person by air that begins after February 28, 1998, or 
  (B) $55, in any other case, and 
  (ii) such amount as may, for the purposes of this subsection, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport; or 
  (b) fifty per cent of the amount provided in paragraph (a) when the person is a child under twelve years of age and is being transported at a fare reduced fifty per cent or more below the applicable fare. 
  
  ### Charter flights
  
  (2) Where the amount paid or payable in Canada for air transportation is for transportation by an aircraft that has been chartered for the purpose by one or more charterers, the tax imposed under subsection 12(1) on the amount paid or payable to a certified air carrier by each charterer shall be an amount that is the aggregate of 
  (a) the lesser of 
  (i) the amount of 
  (A) $30, if the amount paid or payable for the transportation of a person by air is paid or payable to a certified air carrier by the charterer after December 31, 1997 for transportation of the person by air that begins after February 28, 1998, or 
  (B) $55, in any other case, and 
  (ii) such amount as may, for the purposes of this subsection, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by a person, other than a person described in paragraph (b); and 
  (b) fifty per cent of the amount provided in paragraph (a) in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by a child who is under twelve years of age and is being transported at a fare reduced fifty per cent or more below the applicable fare. 
  
  ### Definition of 
  *emplanement* 
  
  (2.1) For the purposes of subsection (2), 
  *emplanement* means an emplanement by a person at an airport in Canada on a specific flight that has as a destination an airport outside Canada and from which the person deplanes at an airport outside Canada.  
  
  ### Amount of tax
  
  (2.2) The tax imposed under subsection 12(2) for transportation of a person by air shall be 
  (a) where the first emplanement of the person occurs at an airport in Canada, 
  (i) an amount that is the lesser of 
  (A) the amount of 
  (I) $30, if the amount paid or payable for the transportation is paid or payable after December 31, 1997 and the first emplanement by the person, within the meaning of subsection (2.1), occurs after February 28, 1998, or 
  (II) $55, in any other case, and 
  (B) such amount as may, for the purposes of this paragraph, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, or 
  (ii) 50% of the amount provided in subparagraph (i) where the person is a child under twelve years of age and is being transported at a fare reduced 50% or more below the applicable fare; and 
  (b) in any other case, 
  (i) an amount that is the lesser of 
  (A) the amount of 
  (I) $15, if the amount paid or payable for the transportation is paid or payable after December 31, 1997 and the first emplanement by the person, within the meaning of subsection (2.1), occurs after February 28, 1998, or 
  (II) $27.50, in any other case, and 
  (B) such amount as may, for the purposes of this paragraph, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, or 
  (ii) 50% of the amount provided in subparagraph (i) where the person is a child under twelve years of age and is being transported at a fare reduced 50% or more below the applicable fare. 
  
  ### Non-application
  
  (3) Subsections 12(1) and (2) do not apply in respect of the transportation of a person by air at a fare ninety per cent or more below the applicable fare. 
  
  ### More than one amount payable
  
  13.1 (1) Notwithstanding sections 11 and 13 but subject to subsection 11(3) and subsection (2) of this section, where two or more amounts are paid or payable at the same time for transportation of a person by air on a continuous journey, 
  (a) the total of the taxes imposed on all such amounts under subsection 10(1) or (2), determined under subsection 11(1), shall not exceed the lesser of 
  (i) the amount that is 
  (A) the total of 4% of the aggregate of all such amounts and $3, if the amount paid or payable for the transportation is paid or payable after December 31, 1997 for transportation of the person by air that begins after February 28, 1998, or 
  (B) the total of 7% of the aggregate of all such amounts and $6, in any other case, and 
  (ii) the amount, if any, prescribed by order of the Governor in Council under paragraph 11(1)(b); 
  (b) the total of the taxes imposed on all such amounts under subsections 10(1) and 12(1), determined under subsections 11(1) and 13(1), as applicable, shall not exceed the amount determined under subsection 13(1) in respect of any such amount in respect of which that subsection applies; and 
  (c) the total of the taxes imposed on all such amounts under subsections 10(2) and 12(2), determined under subsections 11(1) and 13(2.2), as applicable, shall not exceed the largest amount determined under subsection 13(2.2) in respect of any such amount. 
  
  ### Restriction on reduction of tax
  
  (2) Subsection (1) does not apply to reduce any tax imposed under this Part in respect of transportation of a person by air unless the licensed air carrier or the carrier’s agent from whom the transportation is purchased records on each ticket issued at the same time the following information: 
  (a) ticket numbers, including air carrier codes, for all flights comprising the continuous journey; and 
  (b) flight numbers for all flights comprising the continuous journey. 
  
  ### When and by whom tax payable
  
  14 The tax on each amount paid or payable in Canada for transportation of a person by air is payable 
  (a) at the time when the amount is so paid or becomes payable and in any case prior to the provision of the transportation; and 
  (b) by the person making the payment. 
  
  ### Employees of foreign country
  
  15 This Part does not apply in the case of any amount paid for transportation by air of a person described in section 2 of Part II of Schedule III. 
  
  ### Amount deemed paid in Canada
  
  16 (1) Where an amount is paid or payable outside Canada for the transportation of a person by air 
  (a) by transmission from within Canada to a place outside Canada, by means of telegraph or mail, of cash, cheque, postal telegram, money order or any similar draft to a ticket office, travel agency, air carrier or any representative of any of them, 
  (b) by delivery of the amount to an agency located within Canada for transmission to a ticket office, travel agency, air carrier or any representative of any of them located in any place outside Canada, or 
  (c) by any other arrangement with a person outside Canada for the benefit or convenience of a person in Canada, the amount shall, for the purposes of this Part, be deemed to be an amount paid or payable in Canada and not outside Canada. 
  
  ### Charter flights
  
  (2) Where an amount is paid or payable outside Canada for the charter of an aircraft for the transportation of a person by air and the transportation begins at a point in Canada, the amount shall, for the purposes of this Part, be deemed to be an amount paid or payable in Canada and not outside Canada. 
  
  ### Elimination of air transportation tax
  
  16.1 No tax shall be imposed, levied or collected on any amount paid or payable for the transportation of a person by air that 
  (a) in the case of tax imposed under subsection 10(1) or 12(1), begins after October 31, 1998; or 
  (b) in the case of tax imposed under subsection 10(2) or 12(2), does not include an emplanement of the person, within the meaning of subsection 13(2.1), before November 1, 1998. 
  
  ## Licences 
  
  ### Duty to apply for licence
  
  17 (1) Subject to this section, every certified air carrier, other than an air carrier that provides only air transportation that is exempt from the operation of this Part pursuant to paragraph 21(d), shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part. 
  
  ### Granting of licence
  
  (2) The Minister may grant a licence to any person applying therefor under subsection (1). 
  
  ### Cancellation
  
  (3) The Minister may cancel a licence issued under this Part if, in his opinion, it is no longer required for the purposes of this Part. 
  
  ### Application
  
  (4) Subsection (1) applies only to a certified air carrier that provides air transportation before November 1, 1998. 
  
  ## Collection of Tax 
  
  ### Duty of licensed air carrier
  
  18 (1) Every licensed air carrier is an agent of the Minister and as such shall, as provided in this section, 
  (a) levy and collect any taxes imposed by this Part for the transportation of a person by air; and 
  (b) make adjustments in or refund any portion of the tax paid on the transportation of a person by air that has not been provided or only partially provided or any tax that has been collected in error by the licensed air carrier. 
  
  ### Collection of tax
  
  (2) The tax imposed by this Part on each amount paid or payable in Canada for transportation of a person by air shall be collected by the licensed air carrier to whom payment for the transportation is made or is owing. 
  
  ### Idem
  
  (3) The tax imposed by this Part on each amount paid or payable outside Canada for transportation of a person by air that is payable by the person at the time when he emplanes on an aircraft at an airport in Canada shall be collected by the licensed air carrier on whose aircraft the person emplanes, in this subsection referred to as the “emplaning air carrier”, except where the air transportation tax has been paid before that time to a licensed air carrier or his agent and evidence of the prepayment of tax is submitted by the person to the emplaning air carrier in a manner and form prescribed by regulation of the Governor in Council. 
  
  ### Idem
  
  (4) In the case of tax imposed by this Part on any amount paid or payable in Canada for transportation of a person by air, where the transportation of a person by air is being provided by several air carriers, one or more of whom are licensed, the tax, where applicable, shall be collected by the licensed air carrier who sells the transportation by air or, if the transportation is not sold by a licensed air carrier, by the first licensed air carrier who provides any part of the transportation. 
  
  ### Adjustments and refunds where tax reduced for continuous journey
  
  (5) Where tax has been reduced pursuant to subsection 13.1(1) in respect of two or more amounts paid or payable at the same time for transportation of a person by air on a continuous journey, no adjustment in or refund of all or any portion of the tax paid shall be made unless all of the tickets purchased at the same time for the transportation are cancelled at the same time. 
  
  ### Debt to Her Majesty
  
  19 (1) Every person who, being required by or pursuant to this Part to collect an air transportation tax, fails to do so as required is liable to Her Majesty for the amount of the tax and that amount is recoverable in the Federal Court or in any other court of competent jurisdiction as a debt due to Her Majesty. 
  
  ### Persons deemed agents
  
  (2) A person who, not being a licensed air carrier, sells in Canada transportation of a person by air that is to be provided in whole or in part by a licensed air carrier is, in respect of the payment for that transportation and for the purposes of this Part, the agent of the first licensed air carrier who provides the transportation by air or any part thereof, as the case may be, and that person shall levy and collect on behalf of that licensed air carrier the taxes imposed by this Part and transmit them to the licensed air carrier. 
  
  ## Penalty on Failure to File Return 
  
  ### Monthly return of taxes
  
  20 (1) Every licensed air carrier that is required by this Part to collect tax shall make each month a true return, in the prescribed form and containing the prescribed information including statistical information relating to any tax not collected by the licensed air carrier during that period by reason of the prepayment thereof, of 
  (a) all amounts collected or collectible by the carrier by way of the tax imposed by this Part in the last preceding month; and 
  (b) all amounts collected, within or outside Canada by the carrier or the carrier’s agent in the last preceding month, 
  (i) by way of the tax imposed by this Part on amounts paid or payable outside Canada for the transportation of a person by air, and 
  (ii) before the time that the person is required by subsection 10(2) or 12(2), as the case may be, to pay the tax. 
  
  ### Nil return
  
  (2) Every licensed air carrier shall, if no amounts have been collected or are collectible as described in subsection (1) in the last preceding month, make a return as required by that subsection stating that fact. 
  
  ### Cessation of obligation
  
  (2.1) No return is required under subsection (2) if the last preceding month is a month after October 31, 1998. 
  
  ### Alternate periods for making returns
  
  (3) Notwithstanding subsections (1) and (2), the Minister may, by regulation, 
  (a) authorize any licensed air carrier to make a return in respect of any accounting period of not less than twenty-one days and not more than thirty-five days; 
  (b) authorize any licensed air carrier to make a return in respect of any period longer than one month but not longer than six months, if the amounts collected or collectible by the carrier by way of the tax imposed by this Part in the last preceding calendar year did not exceed four thousand eight hundred dollars; or 
  (c) authorize any licensed air carrier whose passenger air transportation service is predominantly limited to a seasonal period of operation to make a return in respect of any period longer than one month but not longer than six months, if the amounts collected or collectible by the carrier by way of the tax imposed by this Part in the equivalent period in the last preceding calendar year did not exceed an average of four hundred dollars per month throughout that equivalent period. 
  
  ### Date for filing and remittance
  
  (4) Subject to subsection (8) and sections 20.1 and 79.2, the return required by this section shall be filed and the taxes that are collected or collectible by a licensed air carrier shall be remitted 
  (a) in a case where the return is required to be made in accordance with subsection (1) or (2), not later than the last day of the first month following the month to which the return relates; 
  (b) in a case where the return is authorized to be made in accordance with a regulation made under paragraph (3)(a), not later than the last day of the first authorized accounting period following the end of the accounting period to which the return relates; and 
  (c) in a case where the return is authorized to be made in accordance with a regulation made under paragraph (3)(b) or (c), not later than the last day of the first month following the end of the period to which the return relates. 
  
  ### Penalty and interest on default in remitting taxes
  
  (5) Subject to subsections (6) to (9), a licensed air carrier that defaults in remitting tax within the time prescribed by subsection (4), in addition to the amount in default, shall pay 
  (a) in the case of tax required to be remitted not later than the last day of a month, a penalty of one-half of one per cent and interest at the prescribed rate, in respect of each month or fraction of a month between that day and the day on which the total tax, penalty and interest outstanding is remitted, calculated on the total tax, penalty and interest outstanding in that month or fraction of a month; and 
  (b) in the case of tax required to be remitted not later than the last day of an accounting period, a penalty of one-half of one per cent and interest at the prescribed rate, in respect of each accounting period or fraction of an accounting period between that day and the day on which the total tax, penalty and interest outstanding is remitted, calculated on the total tax, penalty and interest outstanding in that accounting period or fraction of an accounting period. 
  
  ### Minimum penalty and interest
  
  (6) No penalty or interest is payable under subsection (5) if the licensed air carrier remits all taxes collected or collectible by the carrier under this Part and, at the time of the remittance, the total penalty and interest payable is less than ten dollars. 
  
  ### Time for paying penalty or interest
  
  (7) A licensed air carrier that is liable to pay penalty or interest under subsection (5) shall pay the penalty or interest not later than the last day of the month or accounting period in respect of which the penalty or interest was calculated. 
  
  ### Extension
  
  (8) The Minister may, before or after the expiration of the time prescribed by subsection (4), extend in writing the time for filing a return or remitting any tax, and where the Minister so extends the time, 
  (a) the return shall be filed or the tax shall be remitted within the time as so extended; 
  (b) interest accrues under subsection (5) in respect of the tax as if the time had not been so extended; 
  (c) no penalty accrues or shall be deemed to have accrued under subsection (5) in respect of the tax before the expiration of the time as so extended; and 
  (d) penalty accrues under subsection (5) in respect of a default in remitting the tax or any portion thereof within the time as so extended as if the default were a default referred to in that subsection. 
  
  ### Security
  
  (9) Where the Minister holds security under section 80.1 for the remittance of any tax under this Part that is not remitted within the time prescribed by subsection (4), 
  (a) interest accrues under subsection (5) in respect of the tax from the expiration of that time; and 
  (b) penalty accrues under subsection (5) only if the total tax, penalty and interest outstanding, as calculated in respect of each month or accounting period or fraction of a month or accounting period during which the default continues, exceeds the value of the security at the time it is accepted by the Minister and, if accruing, the penalty shall be calculated only on the amount of the excess. 
  
  ### Interpretation
  
  20.1 (1) For the purposes of this section, 
  (a) a licensed air carrier’s “instalment base” 
  (i) for a month is the lesser of 
  (A) the tax imposed by this Part that was collected or collectible by that carrier in that month, and 
  (B) the tax so collected or collectible in the last preceding month, 
  (ii) for an accounting period is the lesser of 
  (A) the tax imposed by this Part that was collected or collectible by that carrier in that accounting period, and 
  (B) the tax so collected or collectible in the last preceding accounting period, and 
  (iii) for any other period to which a return relates is the lesser of 
  (A) the tax imposed by this Part that was collected or collectible by that carrier in that period, and 
  (B) the tax so collected or collectible in the last preceding period multiplied by the ratio that the number of days in the period to which the return relates is to the number of days in the last preceding period; and 
  (b) a licensed air carrier is a “large taxpayer” at any particular time if 
  (i) the aggregate amount of taxes payable under Parts II.1, III, IV and VI, other than taxes payable in accordance with the Customs Act, and collected or collectible under this Part and Part II.2 by that licensed air carrier in the last preceding calendar year ending at least ninety days, or ninety-one days where that time falls in a leap year, before that time exceeded twelve million dollars, or  
  (ii) the licensed air carrier 
  (A) was, at any time in the last preceding calendar year ending at least ninety days, or ninety-one days where that time falls in a leap year, before that time, a member of a group of associated corporations (within the meaning of section 256 of the Income Tax Act) and the aggregate amount of taxes payable under Parts II.1, III, IV and VI, other than taxes payable in accordance with the Customs Act, and collected or collectible under this Part and Part II.2 by the group in that year exceeded twelve million dollars, and  
  (B) is not, at that time, authorized to make a return in accordance with a regulation made under paragraph 20(3)(b) or (c). 
  
  ### Instalment payments by large taxpayers
  
  (2) A large taxpayer that is required to file a return and remit tax within the time prescribed by subsection 20(4) shall pay instalments on account of the tax in accordance with the following rules: 
  (a) in the case where the return is required to be made in accordance with subsection 20(1), the large taxpayer shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the month in which the tax was collected or became collectible, the first to be paid not later than the last day of that month and the second not later than the fifteenth day of the next following month; and 
  (b) in the case where the return is authorized to be made in accordance with a regulation made under paragraph 20(3)(a), the large taxpayer shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the accounting period to which the return relates, the first to be paid not later than the last day of that accounting period and the second not later than the fifteenth day of the next following accounting period. 
  
  ### Instalment payments by other licensed air carriers
  
  (3) A licensed air carrier, other than a large taxpayer, that is required to file a return and remit tax within the time prescribed by subsection 20(4) shall pay an instalment on account of the tax in accordance with the following rules: 
  (a) in the case where the return is required to be made in accordance with subsection 20(1), the carrier shall pay an instalment, equal to the carrier’s instalment base for the month in which the tax was collected or became collectible, not later than the twenty-first day of the next following month; 
  (b) in the case where the return is authorized to be made in accordance with a regulation made under paragraph 20(3)(a), the carrier shall pay an instalment, equal to the carrier’s instalment base for the accounting period to which the return relates, not later than the twenty-first day of the next following accounting period; and 
  (c) in the case where the return is authorized to be made in accordance with a regulation made under paragraph 20(3)(b) or (c), the carrier shall pay an instalment, equal to the carrier’s instalment base for the period to which the return relates, not later than the twenty-first day of the month next following the end of that period. 
  
  ### Penalty and interest on default by large taxpayer in paying instalment
  
  (4) Subject to subsections (6) to (8), a large taxpayer that defaults in paying an instalment within the time prescribed by subsection (2) shall, in addition to the amount in default, pay in respect of the period between the end of that time and the end of the time prescribed for remittance of the tax on account of which the instalment was payable 
  (a) in the case of an instalment required to be paid not later than the last day of a month or an accounting period, a penalty of one-half of one per cent and interest at the prescribed rate, calculated on the amount by which 
  (i) one-half of the taxpayer’s instalment base for that month or accounting period exceeds 
  (ii) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day; and 
  (b) in the case of an instalment required to be paid not later than the fifteenth day of a month or an accounting period, a penalty of one-quarter of one per cent and interest at one-half of the prescribed rate, calculated on the amount by which 
  (i) one-half of the taxpayer’s instalment base for the last preceding month or accounting period exceeds 
  (ii) the amount by which the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day exceeds the lesser of 
  (A) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than the last day of the last preceding month or accounting period, and 
  (B) one-half of the taxpayer’s instalment base for the last preceding month or accounting period. 
  
  ### Penalty and interest on default by other licensed air carriers in paying instalment
  
  (5) Subject to subsections (6) to (8), a licensed air carrier that defaults in paying an instalment within the time prescribed by subsection (3) shall, in addition to the amount in default, pay in respect of the period between the end of that time and the end of the time prescribed for remittance of the tax on account of which the instalment was payable 
  (a) in the case of an instalment required by paragraph (3)(a) or (b) to be paid not later than the twenty-first day of a month or an accounting period, a penalty of one-sixth of one per cent and interest at one-third of the prescribed rate, calculated on the amount by which 
  (i) the carrier’s instalment base for the last preceding month or accounting period exceeds 
  (ii) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day; and 
  (b) in the case of an instalment required by paragraph (3)(c) to be paid not later than the twenty-first day of a month next following the end of a period, a penalty of one-sixth of one per cent and interest of one-third of the prescribed rate, calculated on the amount by which 
  (i) the carrier’s instalment base for that period exceeds 
  (ii) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day. 
  
  ### Minimum penalty and interest
  
  (6) No penalty or interest is payable under subsection (4) or (5) if the large taxpayer or other licensed air carrier liable to pay the instalment remits all taxes collected or collectible by the taxpayer or carrier under this Part and, at the time of the remittance, the total penalty and interest payable in respect of the instalment is less than five dollars and in respect of all those taxes is less than ten dollars. 
  
  ### Time for paying penalty or interest
  
  (7) A large taxpayer or other licensed air carrier that is liable to pay penalty or interest under subsection (4) or (5) in respect of a default in paying an instalment shall pay the penalty or interest within the time prescribed by subsection 20(4) for the remittance of the tax on account of which the instalment is payable. 
  
  ### Extension
  
  (8) The Minister may, before or after the expiration of the time prescribed by subsection (2) or (3), extend in writing the time for paying an instalment, for any period within the time prescribed by subsection 20(4) for the remittance of the tax on account of which the instalment is payable, and where the Minister so extends the time 
  (a) the instalment shall be paid within the time as so extended; 
  (b) interest accrues under subsection (4) or (5), as the case may be, in respect of the instalment as if the time had not been so extended; 
  (c) no penalty accrues or shall be deemed to have accrued under subsection (4) or (5), as the case may be, in respect of the instalment before the expiration of the time as so extended; and 
  (d) penalty accrues under subsection (4) or (5), as the case may be, in respect of a default in paying an instalment within the time as so extended as if the default were a default referred to in that subsection. 
  
  ## General 
  
  ### Prepaid amounts
  
  20.2 (1) For greater certainty, amounts collected as described in paragraph 20(1)(b) shall be deemed to be sums payable under this Act. 
  
  ### Records and books of account
  
  (2) Each licensed air carrier that is required to make a return of the amounts described in paragraph 20(1)(b) shall keep records and books of account in such form and containing such information as will enable the amount of tax or other sums that have been paid to or collected by the carrier or the carrier’s agent to be determined and, for the purposes of this subsection, subsections 98(2.01), (2.1) and (3) and 100(2) apply, with such modifications as the circumstances require, as if the records and books of account were required to be kept by the carrier pursuant to subsection 98(1). 
  
  ### Regulations
  
  21 The Governor in Council may by regulation 
  (a) prescribe, for those cases where the amount charged for transportation by air includes the transportation of persons and goods by air, the manner in which and by whom the amount charged shall be apportioned between the transportation by air of those persons and the transportation by air of those goods, for the purposes of the tax imposed under sections 10 to 12; 
  (b) prescribe, for those cases where the amount charged for transportation of a person by air provides him with transportation and other services or goods, the manner in which and by whom the amount charged shall be apportioned between the transportation by air of that person and the provision of the other services and goods, for the purposes of the tax imposed under sections 10 to 12; 
  (c) prescribe the manner and form in which and the class of persons to whom evidence of prepayment of any tax imposed under this Part shall be submitted; 
  (c.1) prescribe the manner and form in which evidence of an amount paid or payable for transportation of a person by air shall be submitted; 
  (d) exempt from the operation of this Part the transportation of a person by air on any classes or groups of air services, air carriers or aircraft; 
  (e) reduce the amount of the tax paid or payable in Canada under this Part in respect of transportation of a person by air, or remove that tax, for the reduction or avoidance of double taxation by Canada and a foreign country in respect of that transportation; 
  (f) vary the requirements of section 20 with respect to returns and the time of remitting for licensed air carriers who are authorized by the Canadian Transportation Agency to operate international charter flights from Canada, or exempt those carriers from the provisions of that section with respect to returns, subject to such terms and conditions as the Governor in Council considers to be in the public interest; 
  (g) prescribe, in cases where an air carrier provides transportation of a person by air on credit, the time when and the place where the amount payable for that transportation is deemed to be paid or payable for the purposes of this Part; and 
  (h) provide generally for the carrying out of the provisions of this Part. 
  
  # PART II.1 
  
  ## Telecommunication Programming Services Tax 
  
  ## Interpretation 
  
  ### Definitions
  
  21.1 (1) In this Part,  
  *amount charged*, in respect of a taxable service, means any amount paid or payable by a person for the taxable service, before any amount paid or payable in respect of any tax under this Part or imposed under an Act of the legislature of a province respecting retail sales tax is added thereto; (montant exigé)   
  *broadcasting* means any radiocommunication in which the transmissions are intended for direct reception by the general public; (radiodiffusion)   
  *licensee* means any person to whom a licence has been issued under section 21.18 and includes any person who is required by section 21.17 to apply for a licence; (titulaire de licence ou titulaire)   
  *programming service* means any presentation of sound or visual matter of a nature or kind broadcast by radio or television stations that is designed to inform, enlighten or entertain; (service de programmation)   
  *small undertaking* means  
  (a) a person who provides a taxable service exclusively in a place to which admission is granted to persons for the purpose of the presentation to those persons of a programming service by means of telecommunication on payment of a charge or fee through the sale of a ticket or any similar means of admission, or 
  (b) a person who, in any month, provides a taxable service to not more than two hundred persons, but does not include a person who, in any month in the year preceding that month, has provided a taxable service to more than two hundred persons; ( entreprise restreinte)   
  *taxable service* means  
  (a) the provision, by means of telecommunication, to the general public or any portion thereof, of any programming service, 
  (b) the commencement or cessation of the provision of a programming service referred to in paragraph (a), 
  (c) the provision of any instrument, device, equipment or apparatus or any part thereof, other than a television receiver, that is 
  (i) used in conjunction with the reception of a programming service referred to in paragraph (a), and 
  (ii) provided by the person providing the programming service or by any person authorized or designated by him for the purpose or acting on his behalf or by any person related to him, if the person providing the programming service requires that the instrument, device, equipment, apparatus or part be acquired exclusively from him or any other person referred to in subparagraph (ii), and 
  (d) the installation, disconnection, replacement, repair or maintenance of any instrument, device, equipment or apparatus or any part thereof, other than a television receiver, referred to in paragraph (c), by the person providing the programming service in conjunction with which it is being used or by any other person referred to in subparagraph (c)(ii), but does not include 
  (e) any surveillance or monitoring service, telebanking or teleshopping service or opinion-polling service, 
  (f) any background music service of a nature or kind that is provided in a shopping centre, an office building, a factory or a common area of a condominium or of an apartment building as an accompaniment to shopping, dining, working or other similar activities carried on in such place, or 
  (g) any other service prescribed by regulations made pursuant to section 21.2, that a person providing a programming service referred to in paragraph (a) provides for an additional fee or charge on the request of the person to whom the programming service is provided or that is provided by a person who does not provide a programming service referred to in paragraph (a); ( service taxable)   
  *telecommunication* [Repealed, R.S., 1985, c. 12 (4th Supp.), s. 7]  
  (2)  [Repealed, R.S., 1985, c. 12 (4th Supp.), s. 7]  
  
  ### Small undertaking resident in Canada
  
  (3) For the purposes of this Part, subsections 250(3) and (4) of the Income Tax Act apply in respect of the interpretation of the expression “small undertaking resident in Canada”.  
  
  ### Presumption
  
  (4) For the purposes of this Part, where a small undertaking within the meaning of paragraph (a) of the definition 
  *small undertaking* in subsection (1) acquires a taxable service from a person, other than a licensee or a small undertaking resident in Canada, and provides the taxable service to other persons for amounts charged, the aggregate of the amounts charged is deemed  
  (a) to be equal to the amount charged by the person from whom the small undertaking acquired the service; and 
  (b) to have been paid at the end of the month in which the service was acquired from the person referred to in paragraph (a). 
  
  ### Computation
  
  (5) For the purposes of paragraph (b) of the definition 
  *small undertaking* in subsection (1), the number of persons to whom a person provides a taxable service in a month shall be computed as the aggregate of the number of  
  (a) persons, in this subsection referred to as “customers”, to whom he, or a person related to him, provides the service in that month for an amount charged; and 
  (b) persons to whom customers provide the service in that month, whether or not for an amount charged. 
  
  ## Application to Crown 
  
  ### Binding on the Crown
  
  21.11 This Part binds Her Majesty in right of Canada or a province. 
  
  ## Imposition and Payment of Tax 
  
  ### Imposition of tax
  
  21.12 There shall be imposed, levied and collected a tax at the rate of eleven per cent on the amount charged for a taxable service, payable by the person providing the service at the time the amount charged is paid or payable, whichever is the earlier. 
  
  ### Relief from tax for licensee
  
  21.13 (1) No tax is payable under section 21.12 in respect of a taxable service provided to a licensee 
  (a) who, 
  (i) in the case of a service described in paragraph (a), (b), (c) or (d) of the definition 
  *taxable service* in subsection 21.1(1), is acquiring the service for broadcasting without charge or for provision to another person for an amount charged or broadcasting without charge, or  
  (ii) in the case of a service described in paragraph (b), (c) or (d) of that definition, is acquiring the service for use in conjunction with a service referred to in subparagraph (i) that is acquired by the licensee for a use described in that subparagraph; and 
  (b) who, at the time the amount charged for the service is paid or payable, whichever is the earlier, so certifies, and gives his licence number, to the person providing the service. 
  
  ### Relief from tax for other persons
  
  (2) No tax is payable under section 21.12 in respect of a taxable service provided to a person, other than a licensee, 
  (a) who, 
  (i) in the case of a service described in paragraph (a) of the definition 
  *taxable service* in subsection 21.1(1), is acquiring the service for broadcasting without charge or for provision to another person for broadcasting without charge, or  
  (ii) in the case of a service described in paragraph (b), (c) or (d) of that definition, is acquiring the service for use in conjunction with a service referred to in subparagraph (i) that is acquired by the licensee for a use described in that subparagraph; and 
  (b) who, at the time the amount charged for the service is paid or payable, whichever is the earlier, so certifies to the person providing the service. 
  
  ### Relief from tax for small undertaking
  
  (3) No tax is payable under section 21.12 in respect of a taxable service provided by a small undertaking, other than a taxable service that 
  (a) is provided by a small undertaking within the meaning of paragraph (a) of the definition 
  *small undertaking* in subsection 21.1(1); and  
  (b) was acquired by the small undertaking from another person, other than a licensee or a small undertaking resident in Canada. 
  
  ## Determination of Amount Charged in Certain Circumstances 
  
  ### Where service provided to non-arm’s length person
  
  21.14 (1) Where a licensee has provided a taxable service to a person with whom the licensee was not dealing at arm’s length at the time of the provision for no amount charged or for an amount charged that was less than the amount charged (in this subsection referred to as the “reasonable charge”) that would have been reasonable in the circumstances if the service had been provided to a person with whom the licensee was dealing at arm’s length, for the purposes of this Part, the licensee shall be deemed to have provided the taxable service to that person for an amount charged equal to the reasonable charge for the service and, where there was no amount charged, the amount charged shall be deemed to be payable at the end of the month in which the service was provided. 
  
  ### Where service provided under certain circumstances
  
  (2) Subject to subsection (1), where a licensee has provided a taxable service to a person and the amount charged for the service cannot be ascertained, for the purposes of this Part, the licensee shall be deemed to have provided the taxable service to that person for an amount charged equal to the amount that is reasonable in the circumstances. 
  
  ## Security 
  
  ### Security
  
  21.15 (1) A small undertaking that proposes to provide a taxable service in respect of which tax is or will be imposed by section 21.12 shall, if required by the Minister, provide security in accordance with subsection (2) for payment of the tax. 
  
  ### Amount and form of security
  
  (2) The security to be provided by a small undertaking pursuant to subsection (1) shall 
  (a) be provided within the time fixed by the Minister, but not later than the day immediately preceding the day on which provision of the taxable service commences; 
  (b) be in an amount of not less than six per cent of 
  (i) the aggregate of the amounts charged for that taxable service by the person from whom the small undertaking acquired the service, or 
  (ii) where the aggregate of the amounts charged for that taxable service by the person from whom the small undertaking acquired the service cannot be determined prior to the commencement of the service by the small undertaking, the aggregate of the amounts that, in accordance with the agreement between the small undertaking and that other person, are paid or payable by the small undertaking for the service, computed as of seven days prior to the commencement of the service or such later day as may be fixed by the Minister; and 
  (c) be provided by a chartered bank or by depositing with the Minister 
  (i) a bond, acceptable to the Minister, of an incorporated guarantee company authorized to do business in Canada, or 
  (ii) a bond or other security of or guaranteed by the Government of Canada. 
  
  ### Cancellation of bond
  
  (3) Notwithstanding that a bond of a guarantee company given under this section has been cancelled, the bond shall be deemed to remain in force in relation to taxable services provided or to be provided for an amount charged at the time of cancellation until all liabilities to pay amounts on account of tax, penalties, interest or other amounts in relation to such taxable services are discharged. 
  
  ## Diversions 
  
  ### Diversions
  
  21.16 (1) Where, pursuant to subsection 21.13(1) or (2), a taxable service is relieved from tax by reason of the use for which the service is acquired, in this section referred to as the “relieved use”, and that service is subsequently diverted 
  (a) by the person who acquired the service for the relieved use, or 
  (b) where the person referred to in paragraph (a) acquired the service for provision to another person for broadcasting without charge, by that other person, to any other use or purpose in respect of which the service would not, at the time of the acquisition of the service for the relieved use, be so relieved, the person who diverted the service and the person who provided the service to him are, from the time of the diversion, jointly and severally liable to pay tax under this Part in respect of the amount charged for the service. 
  
  ### Tax payable
  
  (2) The tax payable pursuant to subsection (1) is payable at the time the service is diverted and shall be computed as the amount of tax that would have been payable at the time of the acquisition of the service for the relieved use had the service not been so relieved. 
  
  ## Licences 
  
  ### Application for licence
  
  21.17 (1) Subject to this section, every person who is providing a taxable service for an amount charged on the coming into force of this Part shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which this Part comes into force. 
  
  ### Idem
  
  (2) Subject to this section, every person who commences to provide, on or after the coming into force of this Part, a taxable service for an amount charged shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which that person commences to provide the service. 
  
  ### Exemption
  
  (3) Subsections (1) and (2) do not apply to a small undertaking. 
  
  ### Exemption lifted
  
  (4) Every person providing a taxable service for an amount charged who ceases to be a small undertaking shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which that person ceases to be a small undertaking. 
  
  ### Issue of licence
  
  21.18 The Minister may issue a licence for the purposes of this Part to any person applying therefor under section 21.17. 
  
  ### Cancellation
  
  21.19 The Minister may cancel a licence issued under section 21.18 if, in the Minister’s opinion, it is no longer required for the purposes of this Part. 
  
  ## Regulations 
  
  ### Regulations
  
  21.2 The Governor in Council may make regulations 
  (a) prescribing, for the purposes of paragraph (g) of the definition 
  *taxable service* in subsection 21.1(1), any service other than a programming service referred to in paragraph (a) of that definition;  
  (b) respecting the method for determining the reasonable amount charged for a taxable service for the purposes of section 21.14; and 
  (c) generally for carrying out the purposes and provisions of this Part. 
  
  ## Increase of Amount Charged by Licensee 
  
  ### Override of other laws
  
  21.21 A licensee may, 
  (a) notwithstanding the Broadcasting Act or any other Act of Parliament or any regulation or other statutory instrument made thereunder or any other law, and  
  (b) notwithstanding 
  (i) any decision or order made, or any licence or renewal of a licence issued, by the Canadian Radio-television and Telecommunications Commission, or 
  (ii) any other act or thing given, done or issued pursuant to the Broadcasting Act or any other Act of Parliament or any other law,  before or after the coming into force of this Part, increase the amount charged for a taxable service by an amount not exceeding the tax payable by him under this Part with respect to that service. 
  
  # PART II.2 
  
  ## Telecommunication Services Tax 
  
  ## Interpretation 
  
  ### Definitions
  
  21.22 (1) In this Part,  
  *amount charged*, in respect of a service, means any amount paid or payable by a person for the service, before any amount paid or payable in respect of any tax under this Part or imposed under an Act of the legislature of a province respecting retail sales tax is added thereto; (montant exigé)   
  *approved tariff*, in respect of a licensee, means a current schedule or tariff that sets out or otherwise provides for amounts that may be charged by the licensee for any service and that is approved by  
  (a) the Canadian Radio-television and Telecommunications Commission, 
  (b) the lieutenant governor in council of a province, 
  (c) a commission, board, tribunal, authority or other body established by or pursuant to an Act of the legislature of a province to regulate telecommunications, 
  (d) a person designated by the lieutenant governor in council of a province to regulate telecommunications, or 
  (e) a municipal or local commission, board, tribunal, authority or other body that regulates telecommunications in a municipality; ( tarif agréé)   
  *licensee* means any person to whom a licence has been issued under subsection 21.3(2) and includes any person who is required by subsection 21.3(1) to apply for a licence; (titulaire de licence ou titulaire)   
  *separate charge*, in respect of a service provided by a person, means an amount charged for the service  
  (a) as set out separately in a contract entered into by that person and the person charged for the service or in an invoice, bill, statement of account or other similar document issued or made available by that person to the person charged for the service, or 
  (b) if no such contract was so entered into and document was so issued or made available and the person providing the service is a licensee, as set out or provided for separately in an approved tariff of the licensee; ( redevance distincte)   
  *taxable service* means  
  (a) any telecommunication service, 
  (b) the commencement or cessation of a telecommunication service, 
  (c) the provision of any instrument, device, equipment or apparatus or any part thereof, other than terminal equipment for the provision of which a separate charge is made, that is 
  (i) used in conjunction with a telecommunication service, and 
  (ii) provided by the person providing the telecommunication service or by any person authorized or designated by him for the purpose or acting on his behalf or by any person related to him, if the person providing the telecommunication service requires that the instrument, device, equipment, apparatus or part be acquired exclusively from him or any other person referred to in subparagraph (ii), and 
  (d) the installation, disconnection, replacement, repair or maintenance of any instrument, device, equipment or apparatus or any part thereof referred to in paragraph (c) by the person providing the telecommunication service in conjunction with which it is being used or by any other person referred to in subparagraph (c)(ii), but does not include a taxable service within the meaning assigned by subsection 21.1(1); ( service taxable)   
  *telecommunication service* means the transmission of any information by means of a system for telecommunication or any part thereof and includes the making available of such a system or part for that use, whether or not it is so used, but does not include  
  (a) any such service provided for taxi, messenger or other dispatch purposes, if the person providing the service uses, primarily for the person’s own dispatch purposes, the system or part thereof by means of which the service is provided, 
  (b) any such service provided to an occupant in a building or building complex by the owner or manager of the building or complex, if 
  (i) the system or part thereof by means of which the service is provided and that is controlled by the owner or manager is used exclusively to provide the service within the building or complex, and 
  (ii) the owner or manager provides the service exclusively 
  (A) by means of the system or part referred to in subparagraph (i), 
  (B) through the resale of service acquired from another person, or 
  (C) in the manner described in clauses (A) and (B), or 
  (c) the provision, in conjunction with any such service, of a data processing, data storage, information or other service (in this paragraph referred to as the “additional service”) by means of telecommunication for a separate charge, if 
  (i) the service in conjunction with which the additional service is provided is offered separately from the additional service, and 
  (ii) the additional service is, or could be, lawfully provided by means of telecommunication by persons other than telecommunications carriers; ( service de télécommunication)   
  *telecommunications carrier* means  
  (a) any person who, for an amount charged, provides telecommunication service to the general public, or any portion thereof, by means of a telecommunication system owned, or controlled, and operated by that person, and 
  (b) any person to whom a licence has been issued under section 21.18 or who is required by section 21.17 to apply for a licence for the purposes of Part II.1. ( exploitant de télécommunication)  
  
  ### Presumption
  
  (2) For the purposes of the definitions 
  *telecommunication service* and 
  *telecommunications carrier* in subsection (1), a person who provides telecommunication service through the resale of telecommunication service acquired from another person shall be deemed not to control the system for telecommunication of that other person.  
  
  ## Application to Crown 
  
  ### Binding on Her Majesty
  
  21.23 This Part binds Her Majesty in right of Canada or a province. 
  
  ## Imposition of Tax 
  
  ### Imposition of tax
  
  21.24 (1) There shall be imposed, levied and collected a tax at the rate of eleven per cent on the amount charged for a taxable service acquired from a licensee, payable by the person charged for the service at the time the amount charged is paid or payable, whichever is the earlier. 
  
  ### Tax on long distance calls from a pay telephone
  
  (2) Notwithstanding subsection (1), where long distance telephone service is acquired and paid for by means of a coin-operated telephone and the amount charged for the service exceeds fifty cents, the tax payable in respect of the service shall be calculated at the rate of five cents for every fifty cents or part thereof charged for the service in excess of twenty-four cents. 
  
  ### Tax on paging service
  
  (3) Notwithstanding subsection (1), where a paging service is acquired, the tax payable in respect of the service shall be calculated at the rate of thirty cents, in respect of each paging terminal device by means of which the service is acquired, for each month or fraction of a month in which the service is acquired. 
  
  ### Tax on private international service
  
  (4) Notwithstanding subsection (1), where telecommunication service between a place in Canada and a place outside Canada is provided by means of a telecommunication line, channel or other facility that is dedicated to the sole use of a person, the tax payable in respect of the service shall be calculated on the amount charged for the service only to the extent that the amount charged is for service provided in Canada. 
  
  ## Determination of Amount Charged in Certain Circumstances 
  
  ### Where service acquired by licensee
  
  21.25 (1) Where a licensee has provided a taxable service to itself for use in the administration or management of its business, for the purposes of this Part, the licensee shall be deemed to have acquired the taxable service from itself for an amount charged equal to fifty per cent of the amount charged that would have been reasonable in the circumstances if the service had been provided to a person with whom the licensee was dealing at arm’s length and the amount charged shall be deemed to be payable at the end of the month in which the service was provided. 
  
  ### Where service acquired by non-arm’s length person
  
  (2) Where a licensee has provided a taxable service to a person with whom the licensee was not dealing at arm’s length at the time of the provision for no amount charged or for an amount charged that was less than the amount charged (in this subsection referred to as the “reasonable charge”) that would have been reasonable in the circumstances if the service had been provided to a person with whom the licensee was dealing at arm’s length, for the purposes of this Part, that person shall be deemed to have acquired the taxable service from the licensee for an amount charged equal to the reasonable charge for the service and, where there was no amount charged, the amount charged shall be deemed to be payable at the end of the month in which the service was provided. 
  
  ### Where service acquired under certain circumstances
  
  (3) Subject to subsection (2), where a licensee has provided a taxable service to a person and the amount charged for the service cannot be ascertained, for the purposes of this Part, that person shall be deemed to have acquired the taxable service from the licensee for an amount charged equal to the amount that is reasonable in the circumstances. 
  
  ### Reasonable charge where approved tariff
  
  (4) Where the amount that may be charged for a taxable service provided by a licensee was set out or provided for separately in an approved tariff of the licensee at the time of the provision, the amount as so set out or provided for shall be deemed to be 
  (a) for the purposes of subsections (1) and (2), the amount charged that would have been reasonable in the circumstances; and 
  (b) for the purposes of subsection (3), the amount that is reasonable in the circumstances. 
  
  ## Relief from Tax 
  
  ### Relief from tax for residential telephone service
  
  21.26 (1) No tax is payable under section 21.24 on any amount charged for 
  (a) the provision, commencement or cessation of residential telephone service, other than the provision of long distance telephone service; or 
  (b) the provision, installation, disconnection, replacement, repair or maintenance of any instrument, device, equipment or apparatus or any part thereof that is used in conjunction with residential telephone service. 
  
  ### Relief from tax for pay telephone service
  
  (2) No tax is payable under section 21.24 on any amount charged for telephone service acquired and paid for by means of a coin-operated telephone, other than long distance telephone service for which the amount charged exceeds fifty cents. 
  
  ### Relief from tax for international telecommunication service
  
  (3) No tax is payable under section 21.24 on any amount charged for any taxable service that is provided entirely outside Canada. 
  
  ### Relief from tax for diplomats
  
  21.27 (1) No tax is payable under section 21.24 on any amount charged for a taxable service acquired by a person described in section 2 of Part II of Schedule III or by a member of the family of that person, if that member is not a Canadian citizen or a permanent resident of Canada. 
  
  ### Relief from tax for international organizations
  
  (2) No tax is payable under section 21.24 on any amount charged for a taxable service acquired by an organization in respect of which the Governor in Council has provided, by order made pursuant to subsection 4(1) of the Privileges and Immunities (International Organizations) Act, that the organization shall have the privileges and immunities set out in paragraph 7(a) of Schedule I to that Act.  
  
  ### Relief from tax for foreign military forces
  
  (3) No tax is payable under section 21.24 on any amount charged for a taxable service acquired by a government of a country designated by the Governor in Council pursuant to heading No. 98.10 of Schedule I to the Customs Tariff, or acquired by a Canadian government agency on behalf of such a government, if the amount charged relates to telecommunication originating or terminating at a military or defence establishment in Canada.  
  
  ### Relief from tax for certain provinces
  
  (4) No tax is payable under section 21.24 on any amount charged for a taxable service acquired by Her Majesty in right of a province, other than a province in respect of which there is in force at the time that the service is acquired a reciprocal taxation agreement referred to in section 32 of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act.  
  
  ### Relief from tax for Indians
  
  (5) No tax is payable under section 21.24 on any amount charged for a taxable service acquired by an Indian or band within the meaning of subsection 2(1) of the Indian Act, if the amount charged is billed to the Indian or band at a reserve within the meaning of that subsection and relates to telecommunication originating or terminating at a reserve.  
  
  ### Relief from tax for licence holders under this Part
  
  21.28 (1) No tax is payable under section 21.24 on any amount charged for a taxable service acquired by a person to whom a licence has been issued under subsection 21.3(2) for provision to another person or for use directly in providing another taxable service, other than a paging service, to another person. 
  
  ### Relief from tax for licence holders under Part II.1
  
  (2) No tax is payable under section 21.24 on any amount charged for a taxable service acquired by a person to whom a licence has been issued under section 21.18 for use in providing, by means of telecommunication, a programming service within the meaning of subsection 21.1(1) to another person for an amount charged within the meaning of that subsection or in producing a programming service for such provision. 
  
  ### Relief from tax for foreign telecommunications carriers
  
  (3) Subject to subsection (4), no tax is payable under section 21.24 on any amount charged for a taxable service acquired, by a telecommunications carrier who provides telecommunication service solely outside Canada, for provision to another person outside Canada or for use directly in providing another taxable service to another person outside Canada. 
  
  ### Exception
  
  (4) Subsection (3) does not apply in respect of any telecommunication service between a place in Canada and a place outside Canada that is provided by means of a telecommunication line, channel or other facility that is dedicated to the sole use of a person. 
  
  ## Diversions 
  
  ### Diversions
  
  21.29 (1) Where, pursuant to subsection 21.28(1) or (2), no tax is payable in respect of a taxable service by reason of the use for which the service is acquired (in this section referred to as the “relieved use”) and that service is subsequently diverted by the person acquiring it to any other use for which the service would not, at the time of the acquisition, have been so relieved, that person is liable to pay tax under this Part in respect of the amount charged that person for the service. 
  
  ### Tax payable
  
  (2) The tax payable pursuant to subsection (1) is payable at the time the taxable service is diverted and shall be computed as the amount of tax that would have been payable at the time of the acquisition of the service for the relieved use had the service not been acquired for that use. 
  
  ### Presumption
  
  (3) For the purposes of sections 21.32 and 21.33, the tax payable pursuant to subsection (1) shall be deemed to be a tax imposed by this Part that was collected or collectible by the person at the time of the diversion. 
  
  ## Licences 
  
  ### Application for licence
  
  21.3 (1) Every telecommunications carrier who provides taxable services in Canada for an amount charged shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the first month, after December 31, 1987, in which that person so provides a taxable service. 
  
  ### Issue of licence
  
  (2) The Minister may issue a licence for the purposes of this Part to any person applying therefor under subsection (1). 
  
  ### Cancellation
  
  (3) The Minister may cancel a licence issued under subsection (2) if, in the Minister’s opinion, it is no longer required for the purposes of this Part. 
  
  ## Collection of Tax 
  
  ### Duty of licensee
  
  21.31 (1) Every licensee is an agent of the Minister for the purpose of collecting taxes under this Part and as such shall 
  (a) levy and collect any taxes imposed by this Part on the amount charged for a taxable service acquired from the licensee; 
  (b) make adjustments in or refund any portion of the tax paid on the amount charged for a taxable service that has not been provided or has been only partially provided by the licensee; and 
  (c) make adjustments in or refund any portion of any tax that has been collected in error by the licensee. 
  
  ### Election by licence holder to pay tax directly
  
  (2) Notwithstanding subsection (1), where a person, other than a person who provides a paging service and no other taxable service, to whom a licence has been issued under subsection 21.3(2) acquires a taxable service from another licensee and the acquisition is not relieved from tax pursuant to subsection 21.28(1) or (2), that person may, in lieu of paying to that other licensee any tax payable on the amount charged for the taxable service, elect to pay the tax directly to the Receiver General. 
  
  ### Presumption
  
  (3) For the purposes of sections 21.32 and 21.33, where a person makes an election pursuant to subsection (2), the tax shall be deemed to be a tax imposed by this Part that was collected or collectible by that person at the time the tax became payable by that person. 
  
  ### Debt due to Her Majesty
  
  (4) Every person who, being required by or pursuant to this Part to collect tax, fails to do so as required is liable to Her Majesty in right of Canada for the amount of the tax. 
  
  ## Returns and Remittance of Tax 
  
  ### Monthly return of taxes
  
  21.32 (1) Every licensee shall make each month a true return, in the prescribed form and containing the prescribed information, of all amounts collected or collectible by the licensee by way of the tax imposed by this Part in the last preceding month. 
  
  ### Nil return
  
  (2) Every licensee shall, if no amounts were collected or collectible by the licensee by way of the tax imposed by this Part in the last preceding month, make a return as required by subsection (1) stating that fact. 
  
  ### Alternate periods for making returns
  
  (3) Notwithstanding subsections (1) and (2), the Minister may, by regulation, 
  (a) authorize any licensee to make a return in respect of any accounting period of not less than twenty-one days and not more than thirty-five days; 
  (b) authorize any licensee to make a return in respect of any period longer than one month but not longer than six months, if the amounts collected or collectible by the licensee by way of the tax imposed by this Part in the last preceding calendar year did not exceed four thousand eight hundred dollars; or 
  (c) authorize any licensee whose taxable services are predominantly limited to a seasonal period of operation to make a return in respect of any period longer than one month but not longer than six months, if the amounts collected or collectible by the licensee by way of the tax imposed by this Part in the equivalent period in the last preceding calendar year did not exceed an average of four hundred dollars per month throughout that equivalent period. 
  
  ### Date for filing and remittance
  
  (4) Subject to subsection (8) and sections 21.33 and 79.2, the return required by this section shall be filed and the taxes on amounts charged for taxable services that are collected or collectible by a licensee shall be remitted 
  (a) in a case where the return is required to be made in accordance with subsection (1) or (2), not later than the last day of the first month succeeding that in which the amounts charged for the taxable service were paid or became payable to the licensee; 
  (b) in a case where the return is authorized to be made in accordance with a regulation made under paragraph (3)(a), not later than the last day of the first authorized accounting period following the end of the accounting period to which the return relates; and 
  (c) in a case where the return is authorized to be made in accordance with a regulation made under paragraph (3)(b) or (c), not later than the last day of the first month following the end of the period to which the return relates. 
  
  ### Penalty and interest on default in remitting taxes
  
  (5) Subject to subsections (6) to (9), a licensee who defaults in remitting tax within the time prescribed by subsection (4), in addition to the amount in default, shall pay 
  (a) in the case of tax required to be remitted not later than the last day of a month, a penalty of one-half of one per cent and interest at the prescribed rate, in respect of each month or fraction of a month between that day and the day on which the total tax, penalty and interest outstanding is remitted, calculated on the total tax, penalty and interest outstanding in that month or fraction of a month; and 
  (b) in the case of tax required to be remitted not later than the last day of an accounting period, a penalty of one-half of one per cent and interest at the prescribed rate, in respect of each accounting period or fraction of an accounting period between that day and the day on which the total tax, penalty and interest outstanding is remitted, calculated on the total tax, penalty and interest outstanding in that accounting period or fraction of an accounting period. 
  
  ### Minimum penalty and interest
  
  (6) No penalty or interest is payable under subsection (5) if the licensee remits all taxes collected or collectible by the licensee under this Part and, at the time of the remittance, the total penalty and interest payable is less than ten dollars. 
  
  ### Time for paying penalty or interest
  
  (7) A licensee who is liable to pay penalty or interest under subsection (5) shall pay the penalty or interest not later than the last day of the month or accounting period in respect of which the penalty or interest was calculated. 
  
  ### Extension
  
  (8) The Minister may, before or after the expiration of the time prescribed by subsection (4), extend in writing the time for filing a return or remitting any tax, and where the Minister so extends the time, 
  (a) the return shall be filed or the tax shall be remitted within the time as so extended; 
  (b) interest accrues under subsection (5) in respect of the tax as if the time had not been so extended; 
  (c) no penalty accrues or shall be deemed to have accrued under subsection (5) in respect of the tax before the expiration of the time as so extended; and 
  (d) penalty accrues under subsection (5) in respect of a default in remitting the tax or any portion thereof within the time as so extended as if the default were a default referred to in that subsection. 
  
  ### Security
  
  (9) Where the Minister holds security under section 80.1 for the remittance of any tax under this Part that is not remitted within the time prescribed by subsection (4), 
  (a) interest accrues under subsection (5) in respect of the tax from the expiration of that time; and 
  (b) penalty accrues under subsection (5) only if the total tax, penalty and interest outstanding, as calculated in respect of each month or accounting period or fraction of a month or accounting period during which the default continues, exceeds the value of the security at the time it is accepted by the Minister and, if accruing, the penalty shall be calculated only on the amount of the excess. 
  
  ### Interpretation
  
  21.33 (1) For the purposes of this section, 
  (a) a licensee’s “instalment base” 
  (i) for a month is the lesser of 
  (A) the tax imposed by this Part that was collected or collectible by that licensee in that month, and 
  (B) the tax so collected or collectible in the last preceding month, 
  (ii) for an accounting period is the lesser of 
  (A) the tax imposed by this Part that was collected or collectible by that licensee in that accounting period, and 
  (B) the tax so collected or collectible in the last preceding accounting period, and 
  (iii) for any other period to which a return relates is the lesser of 
  (A) the tax imposed by this Part that was collected or collectible by that licensee in that period, and 
  (B) the tax so collected or collectible in the last preceding period multiplied by the ratio that the number of days in the period to which the return relates is to the number of days in the last preceding period; and 
  (b) a licensee is a “large taxpayer” at any particular time if 
  (i) the aggregate amount of taxes payable under Parts II.1, III, IV and VI, other than taxes payable in accordance with the Customs Act, and collected or collectible under Part II and this Part by that licensee in the last preceding calendar year ending at least ninety days, or ninety-one days where that time falls in a leap year, before that time exceeded twelve million dollars, or  
  (ii) the licensee 
  (A) was, at any time in the last preceding calendar year ending at least ninety days, or ninety-one days where that time falls in a leap year, before that time, a member of a group of associated corporations (within the meaning of section 256 of the Income Tax Act) and the aggregate amount of taxes payable under Parts II.1, III, IV and VI, other than taxes payable in accordance with the Customs Act, and collected or collectible under Part II and this Part by the group in that year exceeded twelve million dollars, and  
  (B) is not, at that time, authorized to make a return in accordance with a regulation made under paragraph 21.32(3)(b) or (c). 
  
  ### Instalment payments by large taxpayers
  
  (2) A large taxpayer who is required to file a return and remit tax within the time prescribed by subsection 21.32(4) shall pay instalments on account of the tax in accordance with the following rules: 
  (a) in the case where the return is required to be made in accordance with subsection 21.32(1), the large taxpayer shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the month in which the tax was collected or became collectible, the first to be paid not later than the last day of that month and the second not later than the fifteenth day of the next following month; and 
  (b) in the case where the return is authorized to be made in accordance with a regulation made under paragraph 21.32(3)(a), the large taxpayer shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the accounting period to which the return relates, the first to be paid not later than the last day of that accounting period and the second not later than the fifteenth day of the next following accounting period. 
  
  ### Instalment payments by other licensees
  
  (3) A licensee, other than a large taxpayer, who is required to file a return and remit tax within the time prescribed by subsection 21.32(4) shall pay an instalment on account of the tax in accordance with the following rules: 
  (a) in the case where the return is required to be made in accordance with subsection 21.32(1), the licensee shall pay an instalment, equal to the licensee’s instalment base for the month in which the tax was collected or became collectible, not later than the twenty-first day of the next following month; 
  (b) in the case where the return is authorized to be made in accordance with a regulation made under paragraph 21.32(3)(a), the licensee shall pay an instalment, equal to the licensee’s instalment base for the accounting period to which the return relates, not later than the twenty-first day of the next following accounting period; and 
  (c) in the case where the return is authorized to be made in accordance with a regulation made under paragraph 21.32(3)(b) or (c), the licensee shall pay an instalment, equal to the licensee’s instalment base for the period to which the return relates, not later than the twenty-first day of the month next following the end of that period. 
  
  ### Penalty and interest on default by large taxpayer in paying instalment
  
  (4) Subject to subsections (6) to (8), a large taxpayer who defaults in paying an instalment within the time prescribed by subsection (2) shall, in addition to the amount in default, pay in respect of the period between the end of that time and the end of the time prescribed for remittance of the tax on account of which the instalment was payable 
  (a) in the case of an instalment required to be paid not later than the last day of a month or an accounting period, a penalty of one-half of one per cent and interest at the prescribed rate, calculated on the amount by which 
  (i) one-half of the taxpayer’s instalment base for that month or accounting period exceeds 
  (ii) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day; and 
  (b) in the case of an instalment required to be paid not later than the fifteenth day of a month or an accounting period, a penalty of one-quarter of one per cent and interest at one-half of the prescribed rate, calculated on the amount by which 
  (i) one-half of the taxpayer’s instalment base for the last preceding month or accounting period exceeds 
  (ii) the amount by which the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day exceeds the lesser of 
  (A) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than the last day of the last preceding month or accounting period, and 
  (B) one-half of the taxpayer’s instalment base for the last preceding month or accounting period. 
  
  ### Penalty and interest on default by other licensees in paying instalment
  
  (5) Subject to subsections (6) to (8), a licensee who defaults in paying an instalment within the time prescribed by subsection (3) shall, in addition to the amount in default, pay in respect of the period between the end of that time and the end of the time prescribed for remittance of the tax on account of which the instalment was payable 
  (a) in the case of an instalment required by paragraph (3)(a) or (b) to be paid not later than the twenty-first day of a month or an accounting period, a penalty of one-sixth of one per cent and interest at one-third of the prescribed rate, calculated on the amount by which 
  (i) the licensee’s instalment base for the last preceding month or accounting period exceeds 
  (ii) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day; and 
  (b) in the case of an instalment required by paragraph (3)(c) to be paid not later than the twenty-first day of a month next following the end of a period, a penalty of one-sixth of one per cent and interest at one-third of the prescribed rate, calculated on the amount by which 
  (i) the licensee’s instalment base for that period exceeds 
  (ii) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day. 
  
  ### Minimum penalty and interest
  
  (6) No penalty or interest is payable under subsection (4) or (5) if the large taxpayer or other licensee liable to pay the instalment remits all taxes collected or collectible by the taxpayer or other licensee under this Part and, at the time of the remittance, the total penalty and interest payable in respect of the instalment is less than five dollars and in respect of all those taxes is less than ten dollars. 
  
  ### Time for paying penalty or interest
  
  (7) A large taxpayer or other licensee who is liable to pay penalty or interest under subsection (4) or (5) in respect of a default in paying an instalment shall pay the penalty or interest within the time prescribed by subsection 21.32(4) for the remittance of the tax on account of which the instalment is payable. 
  
  ### Extension
  
  (8) The Minister may, before or after the expiration of the time prescribed by subsection (2) or (3), extend in writing the time for paying an instalment, for any period within the time prescribed by subsection 21.32(4) for the remittance of the tax on account of which the instalment is payable, and where the Minister so extends the time 
  (a) the instalment shall be paid within the time as so extended; 
  (b) interest accrues under subsection (4) or (5), as the case may be, in respect of the instalment as if the time had not been so extended; 
  (c) no penalty accrues or shall be deemed to have accrued under subsection (4) or (5), as the case may be, in respect of the instalment before the expiration of the time as so extended; and 
  (d) penalty accrues under subsection (4) or (5), as the case may be, in respect of a default in paying an instalment within the time as so extended as if the default were a default referred to in that subsection. 
  
  ## Regulations 
  
  ### Regulations
  
  21.34 The Governor in Council may make regulations 
  (a) respecting the method for determining the reasonable amount charged for a taxable service for the purposes of section 21.25; and 
  (b) generally for carrying out the purposes and provisions of this Part. 
  
  # PART III 
  
  ## Excise Taxes on Cosmetics, Jewellery, Radios, Etc. 
  
  ### Definitions
  
  22 (1) In this Part,  
  *duty paid value* means the value of the article as it would be determined for the purpose of calculating an ad valorem duty on the importation of that article into Canada under the laws relating to the customs and the Customs Tariff whether that article is in fact subject to ad valorem or other duty or not, plus the amount of the customs duties, if any, payable thereon; (valeur à l’acquitté)   
  *licensed wholesaler* has the meaning assigned to that expression by section 42; (marchand en gros titulaire de licence)   
  *sale price*, for the purpose of determining the excise tax payable under this Part, means the aggregate of  
  (a) the amount charged as price before any amount payable in respect of any other tax under this Act is added thereto, 
  (b) any amount that the purchaser is liable to pay to the vendor by reason of or in respect of the sale in addition to the amount charged as price, whether payable at the same or any other time, including, without limiting the generality of the foregoing, any amount charged for, or to make provision for, advertising, financing, servicing, warranty, commission or any other matter, and 
  (c) the amount of excise duties payable under the Excise Act whether the goods are sold in bond or not. (prix de vente)  
  
  ### Calculation of sale price and duty paid value
  
  (2) For the purpose of determining the excise tax payable under this Part 
  (a) in calculating the sale price of goods manufactured or produced in Canada, there shall be included the amount charged as price for or in respect of the wrapper, package, box, bottle or other container in which the goods are contained; and 
  (b) in calculating the duty paid value of imported goods that, when imported, are wrapped, packaged, put up in boxes or bottles or otherwise prepared for sale, there shall be added to the value of the goods as determined in the manner prescribed in this Part the value, similarly determined, of the wrapper, package, box, bottle or other container in which the goods are contained. 
  
  ### Tax on various articles at schedule rates
  
  23 (1) Subject to subsections (6) to (8), whenever goods mentioned in Schedule I are imported or are manufactured or produced in Canada and delivered to a purchaser of those goods, there shall be imposed, levied and collected, in addition to any other duty or tax that may be payable under this or any other law, an excise tax in respect of the goods at the applicable rate set out in the applicable section of that Schedule, computed, if that rate is specified as a percentage, on the duty paid value or the sale price, as the case may be. 
  
  ### By whom and when tax is payable
  
  (2) Where goods are imported, the excise tax imposed by subsection (1) shall be paid in accordance with the provisions of the Customs Act by the importer, owner or other person liable to pay duties under that Act, and where goods are manufactured or produced and sold in Canada, the excise tax shall be payable by the manufacturer or producer at the time of delivery of the goods to the purchaser thereof.  
  
  ### Deemed sale and delivery to purchaser
  
  (3) For the purposes of subsection (2), 
  (a) where gasoline or diesel fuel is delivered to a retail outlet by or on behalf of the manufacturer or producer thereof, the gasoline or diesel fuel shall be deemed to have been sold and delivered to a purchaser thereof; and 
  (b) where gasoline, diesel fuel or aviation fuel was, immediately prior to March 1, 1987, held in inventory by or on behalf of a person described in paragraph (e) of the definition 
  *manufacturer or producer* in subsection 2(1) as that subsection read immediately prior to March 1, 1987, who was a licensed manufacturer under this Act of gasoline, diesel fuel or aviation fuel solely by virtue of that paragraph, and the excise tax thereon had not been paid or become payable on or before February 28, 1987, the gasoline, diesel fuel or aviation fuel shall be deemed to have been sold and delivered to a purchaser thereof immediately prior to March 1, 1987.  
  
  ### Deemed sale
  
  (3.1) For the purposes of this Part, a person who, under a contract for labour, manufactures or produces goods mentioned in Schedule I from any article or material supplied by another person, other than a manufacturer licensed for the purposes of this Part, for delivery to that other person is deemed to have sold the goods, at a sale price equal to the charge made under the contract in respect of the goods, at the time they are delivered to that other person. 
  
  ### Tax on resale by licensed wholesaler of Schedule I goods
  
  (4) Whenever goods mentioned in Schedule I are sold by a licensed wholesaler or are retained for the licensed wholesaler’s own use or for rental by the licensed wholesaler to others, there shall be imposed, levied and collected, in addition to any other duty or tax payable under this Act or any other Act or law, an excise tax in respect of those goods at the applicable rate set out in the applicable section in that Schedule, computed, where that rate is specified as a percentage, on the duty paid value or the price at which the goods were purchased by the licensed wholesaler, as the case may be, payable by the licensed wholesaler at the time the goods are delivered to the purchaser or so retained for use or rental. 
  (5)  [Repealed, 2002, c. 22, s. 367]  
  
  ### When tax not payable
  
  (6) The tax imposed by subsection (1) is not payable in the case of goods mentioned in Schedule I that are purchased or imported by a licensed wholesaler for resale by him. 
  
  ### When tax not payable
  
  (7) The tax imposed under subsection (1) is not payable in the case of 
  (a) goods that are purchased or imported by a manufacturer licensed for the purposes of this Part and that are to be incorporated into and form a constituent or component part of an article or product that is subject to excise tax under this Act, if the tax on the article or product has not yet been levied under this section; or 
  (b) the sale of a new motor vehicle designed for highway use, or a chassis for such a vehicle, to a person described in paragraph (h) of the definition 
  *manufacturer or producer* in subsection 2(1) who is a manufacturer licensed for the purposes of this Part.  
  
  ### Tax not payable
  
  (8) The tax imposed under subsection (1) is not payable in the case of 
  (a) goods that are purchased or imported by a licensed wholesaler who is deemed by subsection 55(2) to be a bona fide wholesaler or jobber for resale by him;  
  (b) goods for which relief from the consumption or sales tax is provided by virtue of section 12 or 13 of Part III of Schedule III or section 1 of Part VII of Schedule III; 
  (b.1) goods imported into Canada and classified under tariff item No. 9804.30.00 of Schedule I to the Customs Tariff ;  
  (b.2) manufactured tobacco imported into Canada by an individual for their personal use if it is stamped in accordance with the Excise Act and duty has been imposed on it under section 200 of that Act; or  
  (c) diesel fuel for use in the generation of electricity, unless the diesel fuel is used in or by a vehicle, including a conveyance attached to the vehicle, of any mode of transportation. 
  (8.1) to (8.3)  [Repealed, 2002, c. 22, s. 367]  
  
  ### Diversion to taxable sale or use
  
  (9) Where gasoline or aviation gasoline has been purchased by a person to whom a bulk permit has been issued under regulations made by the Governor in Council pursuant to subsection 59(3) for a use by such person that renders the purchase exempt from a portion of the tax imposed by this section equal to one and one-half cents per litre and that person sells the gasoline or aviation gasoline or uses it for a purpose for which it could not have been purchased by him exempt from such portion of the tax at the time he purchased it, the portion of the tax that would have been payable at the time he purchased it equal to one and one-half cents per litre of gasoline or aviation gasoline shall be payable by that person at the time he so sells or uses the gasoline or aviation gasoline. 
  
  ### Idem
  
  (9.1) Where fuel other than aviation gasoline has been purchased or imported for a use for which the tax imposed under this Part on diesel fuel or aviation fuel is not payable and the purchaser or importer sells or appropriates the fuel for a purpose for which the fuel could not have been purchased or imported without payment of the tax at the time he purchased or imported it, the tax imposed under this Part on diesel fuel or aviation fuel shall be payable by the person who sells or appropriates the fuel 
  (a) where the fuel is sold, at the time of delivery to the purchaser; and 
  (b) where the fuel is appropriated, at the time of that appropriation. 
  (9.2) and (9.3)  [Repealed, 2002, c. 22, s. 367]  
  
  ### Appropriation by manufacturer or producer
  
  (10) If goods of any class mentioned in Schedule I that were manufactured or produced in Canada are appropriated by the manufacturer or producer for their own use, for the purposes of this Part, 
  (a) the goods shall be deemed to have been delivered to a purchaser thereof at the time of the appropriation; and 
  (b) the sale price of the goods shall be deemed to be equal to the sale price that would have been reasonable in the circumstances if the goods had been sold at that time to a person with whom the manufacturer or producer was dealing at arm’s length. 
  
  ### Person deemed manufacturer or producer
  
  (11) Where a person has, in Canada, 
  (a) put a clock or watch movement into a clock or watch case, 
  (b) put a clock or watch movement into a clock or watch case and added a strap, bracelet, brooch or other accessory thereto, or 
  (c) set or mounted one or more diamonds or other precious or semi-precious stones, real or imitation, in a ring, brooch or other article of jewellery, he shall, for the purposes of this Part, be deemed to have manufactured or produced the watch, clock, ring, brooch or other article of jewellery in Canada. 
  
  ### Definitions
  
  23.01 (1) The definitions in this subsection apply in this section.  
  *fuel* means gasoline, diesel fuel and aviation fuel. (combustible)   
  *temperature compensated method* means the method involving the measurement of the volume of fuel in litres that are corrected to the reference temperature of 15 degrees Celsius in accordance with the requirements imposed by or under the Weights and Measures Act. (méthode fondée sur la compensation de la température)   
  *uncompensated method* means the method involving the measurement of the volume of fuel in litres that are not corrected to a reference temperature. (méthode traditionnelle)  
  
  ### Measurement of fuel volume
  
  (2) For the purposes of determining the tax imposed under subsection 23(1) in respect of fuel, the volume of the fuel shall be measured in accordance with 
  (a) the temperature compensated method, where that method is used by the manufacturer or producer of the fuel for the purpose of establishing the amount of fuel delivered and charged to the purchaser, or by the importer of the fuel to establish the amount of fuel imported; or 
  (b) the uncompensated method, where that method is used by the manufacturer or producer of the fuel for the purpose of establishing the amount of fuel delivered and charged to the purchaser, or by the importer of the fuel to establish the amount of fuel imported. 
  
  ### Measurement of fuel volume — licensed wholesalers
  
  (3) For the purposes of determining the tax imposed under subsection 23(4) in respect of fuel sold by a licensed wholesaler, the volume of the fuel shall be measured in accordance with 
  (a) the temperature compensated method, where that method is used by the licensed wholesaler for the purpose of establishing the amount of fuel delivered and charged to the purchaser; or 
  (b) the uncompensated method, where that method is used by the licensed wholesaler for the purpose of establishing the amount of fuel delivered and charged to the purchaser. 
  23.1  [Repealed, 2002, c. 22, s. 368]  
  23.11  [Repealed, 2002, c. 22, s. 368]  
  23.12  [Repealed, 2002, c. 22, s. 368]  
  23.13  [Repealed, 2002, c. 22, s. 368]  
  23.2  [Repealed, 2001, c. 16, s. 18]  
  23.21  [Repealed, 2001, c. 16, s. 19]  
  23.22  [Repealed, 2001, c. 16, s. 20]  
  23.3  [Repealed, 2002, c. 22, s. 368]  
  23.31  [Repealed, 2002, c. 22, s. 417]   [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 1994, c. 29, s. 6; 1997, c. 26, s. 61; 2000, c. 30, s. 4; 2001, c. 16, s. 22; 2002, c. 22, s. 417  
   23.32   [Repealed, 2002, c. 22, s. 417]  
  23.33  [Repealed, 2001, c. 16, s. 24]   [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 1994, c. 29, s. 6; 1995, c. 36, s. 2; 1997, c. 26, s. 63; 2001, c. 16, s. 24  
   23.34   [Repealed, 2001, c. 16, s. 24]  
   23.341   [Repealed, 2001, c. 16, s. 24]  
  23.35  [Repealed, 2002, c. 22, s. 417]  
  23.36  [Repealed, 2001, c. 16, s. 26]  
  23.4  [Repealed, 2007, c. 35, s. 8]  
  23.5  [Repealed, 2007, c. 35, s. 8]  
  
  ### Security that true returns rendered
  
  24 For the purposes of this Part, the Minister may require every manufacturer or producer to give security that they will render true returns of their sales as required by section 78 or by any regulations made under it and pay any tax imposed by this Act on the sales. The security shall be in an amount of not more than two hundred and fifty thousand dollars and not less than one thousand dollars and shall be by bond of a guarantee company authorized to do business in Canada, acceptable to the Government of Canada, or by deposit of Government of Canada bonds. 
  
  # PART IV 
  
  ## [Repealed, 2002, c. 22, s. 370] 
  25  [Repealed, 2002, c. 22, s. 370]  
  26  [Repealed, 1990, c. 45, s. 6]  
  27  [Repealed, 2002, c. 22, s. 370]  
  28  [Repealed, 2002, c. 22, s. 370]  
  28.1  [Repealed, 2002, c. 22, s. 370]  
  
  # PART V 
  
  ## [Repealed, 2002, c. 22, s. 370] 
  29  [Repealed, 2002, c. 22, s. 370]  
  30  [Repealed, 2002, c. 22, s. 370]  
  31  [Repealed, 2002, c. 22, s. 370]  
  32  [Repealed, 2002, c. 22, s. 370]  
  33  [Repealed, 2002, c. 22, s. 370]  
  34  [Repealed, 2002, c. 22, s. 370]  
  
  # PART V.1 
  
  ## [Repealed, 2000, c. 30, s. 10] 
  
  # PART VI 
  
  ## Consumption or Sales Tax 
  
  ## Interpretation 
  
  ### Definitions
  
  42 In this Part,  
  *duty paid value* means the value of the article as it would be determined for the purpose of calculating an ad valorem duty on the importation of the article into Canada under the laws relating to the customs and the Customs Tariff whether the article is in fact subject to ad valorem or other duty or not, plus the amount of the customs duties, if any, payable thereon; (valeur à l’acquitté)   
  *licensed manufacturer* means any manufacturer or producer licensed under this Part; (fabricant titulaire de licence)   
  *licensed wholesaler* means any wholesaler, jobber or other dealer licensed under this Part; (marchand en gros titulaire de licence)   
  *partly manufactured goods* means  
  (a) goods that are to be incorporated into or form a constituent or component part of an article that is subject to the consumption or sales tax, if the tax on the article has not yet been levied pursuant to section 50, or 
  (b) goods that are to be prepared for sale as goods subject to the consumption or sales tax by assembling, blending, mixing, cutting to size, diluting, bottling, packaging or repackaging the goods or by applying coatings or finishes to the goods, other than goods that are so prepared in a retail store for sale in that store exclusively and directly to consumers, and the Minister is the sole judge as to whether or not goods are partly manufactured goods; ( marchandises partiellement fabriquées)   
  *producer or manufacturer* includes any printer, publisher, lithographer, engraver or commercial artist, but does not include, for the purposes of this Part and the Schedules, any restaurateur, caterer or other person engaged in the business of preparing in a restaurant, centralized kitchen or similar establishment food or drink, whether or not the food or drink is for consumption on the premises; (producteur ou fabricant)   
  *sale price*, for the purpose of determining the consumption or sales tax, means  
  (a) except in the case of wines, the aggregate of 
  (i) the amount charged as price before any amount payable in respect of any other tax under this Act is added thereto, 
  (ii) any amount that the purchaser is liable to pay to the vendor by reason of or in respect of the sale in addition to the amount charged as price, whether payable at the same or any other time, including, without limiting the generality of the foregoing, any amount charged for, or to make provision for, advertising, financing, servicing, warranty, commission or any other matter, and 
  (iii) the amount of the excise duties payable under the Excise Act whether the goods are sold in bond or not,  and, in the case of imported goods, the sale price shall be deemed to be the duty paid value thereof, and 
  (b) in the case of wines, the aggregate of 
  (i) the amount charged as price including the amount of the excise tax payable pursuant to section 27, 
  (ii) any amount that the purchaser is liable to pay to the vendor by reason of or in respect of the sale in addition to the amount charged as price, whether payable at the same or any other time, including, without limiting the generality of the foregoing, any amount charged for, or to make provision for, advertising, financing, servicing, warranty, commission or any other matter, and 
  (iii) the amount of excise duties payable under the Excise Act whether the goods are sold in bond or not,  and, in the case of imported wines, the sale price shall be deemed to be the aggregate of the duty paid value thereof and the amount of the excise tax payable pursuant to section 27. ( prix de vente)  
  
  ### Person deemed manufacturer or producer
  
  43 Where a person has, in Canada, 
  (a) put a clock or watch movement into a clock or watch case, 
  (b) put a clock or watch movement into a clock or watch case and added a strap, bracelet, brooch or other accessory thereto, or 
  (c) set or mounted one or more diamonds or other precious or semi-precious stones, real or imitation, in a ring, brooch or other article of jewellery, he shall, for the purposes of this Part, be deemed to have manufactured or produced the watch, clock, ring, brooch or other article of jewellery in Canada. 
  
  ### Manufacturer of beverages in retail outlet deemed not to be manufacturer
  
  43.1 Where a person manufactures or produces in a retail outlet carbonated beverages or non-carbonated fruit flavoured beverages, other than alcoholic beverages, having less than twenty-five per cent by volume of natural fruit, for sale in that outlet exclusively and directly to consumers for immediate consumption, he shall, for the purposes of this Part, be deemed not to be, in relation to any such beverage so manufactured or produced by him, the manufacturer or producer thereof. 
  44  [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 15]  
  
  ### Retreader of tires deemed manufacturer
  
  45 A person engaged in the business of retreading tires shall, for the purposes of this Part, be deemed to be the manufacturer or producer of tires retreaded by him, and tires retreaded by him for or on behalf of any other person shall be deemed to be sold, at the time they are delivered to that other person, at a sale price equal to the retreading charge. 
  
  ### Deemed sale
  
  45.1 For the purposes of this Part, a person who, pursuant to a contract for labour, manufactures or produces goods from any article or material supplied by another person, other than a licensed manufacturer, for delivery to that other person shall be deemed to have sold the goods, at a sale price equal to the charge made under the contract in respect of the goods, at the time they are delivered to that other person. 
  
  ### Calculation of sale price and duty paid value
  
  46 For the purpose of determining the consumption or sales tax payable under this Part, 
  (a) in calculating the sale price of goods manufactured or produced in Canada, there shall be included the amount charged as price for or in respect of 
  (i) the wrapper, package, box, bottle or other container in which the goods are contained, and 
  (ii) any other goods contained in or attached to the wrapper, package, box, bottle or other container; 
  (b) in calculating the duty paid value of imported goods that, when imported, are wrapped, packaged, put up in boxes or bottles or otherwise prepared for sale, there shall be added to the value of the goods as determined in the manner prescribed in this Part the value, similarly determined, of the wrapper, package, box, bottle or other container in which the goods are contained; and 
  (c) in calculating the sale price of goods manufactured or produced in Canada, there may be excluded 
  (i) any fees paid to the Government of Canada or the government of a province for the inspection, marking, stamping or certification thereof in respect of capacity, accuracy, standard or safety, if the fees are shown as separate items on the manufacturers’ sales invoices, and 
  (ii) under such circumstances as the Governor in Council may, by regulation, prescribe, an amount representing 
  (A) the cost of erection or installation of the goods incurred by the manufacturer or producer where the goods are sold at a price that includes erection or installation, or 
  (B) the cost of transportation of the goods incurred by the manufacturer or producer in transporting the goods between premises of the manufacturer or producer in Canada, or in delivering the goods from the premises of the manufacturer or producer in Canada to the purchaser, where the goods are sold at a price that includes those costs of transportation, determined in such manner as the Governor in Council may, by regulation, prescribe. 
  
  ### Deemed manufacturer of photographic prints, etc.
  
  47 Where a person has, in Canada, 
  (a) processed exposed photographic film supplied by a customer to make a negative, transparency, photographic print or other photographic related good, 
  (b) produced or manufactured a negative, transparency, photographic print or other photographic related good from any good supplied by a customer, or 
  (c) sold a right to the processing, production or manufacture by him of goods described in paragraph (a) or (b), he shall, for the purposes of this Part, be deemed to be the producer or manufacturer of the negative, transparency, photographic print or other photographic related good, and the goods shall be deemed to be sold 
  (d) in the case mentioned in paragraph (a) or (b), at the time the goods are delivered to the customer, and 
  (e) in the case mentioned in paragraph (c), at the time the right is sold, and the charge made shall be deemed to be the sale price. 
  
  ### Application by manufacturer
  
  48 (1) Any licensed manufacturer may make an application in writing to the Minister to be considered, for the purposes of this Act, as the manufacturer or producer of all other goods, in this section and section 49 referred to as “similar goods”, that the licensed manufacturer sells in conjunction with his sales of goods of his manufacture or production in Canada or that are of the same class as goods the licensed manufacturer manufactures or produces in Canada. 
  
  ### Additional information
  
  (2) The Minister may at any time request an applicant under this section to supply additional information in respect of his application. 
  
  ### Consideration of application
  
  (3) On receiving an application, the Minister shall decide whether to approve or reject the application and shall send to the applicant a notice in writing setting out his decision and, where the Minister approves the application, the date on and after which the approval is effective. 
  
  ### Effect of approval
  
  (4) Subject to subsection 49(2), on and after the date set out in a notice of decision pursuant to subsection (3), the applicant shall be deemed to be the manufacturer or producer of all similar goods that the applicant sells and those goods shall be deemed to be 
  (a) at the time the applicant acquires them, 
  (i) for the purposes of this Part, partly manufactured goods, and 
  (ii) for the purposes of Part III, goods described in paragraph 23(7)(a); and 
  (b) thereafter, goods produced or manufactured in Canada. 
  
  ### Revocation of approval
  
  49 (1) The Minister may at any time, and shall on request of the applicant, revoke any approval of an application given pursuant to subsection 48(3) and, where the Minister does so, he shall send to the applicant a notice in writing of the revocation setting out the date on and after which the revocation is effective. 
  
  ### Effect of revocation
  
  (2) On and after the date set out in a notice of revocation pursuant to subsection (1), 
  (a) subsection 48(4) ceases to apply to the applicant; and 
  (b) all taxes imposed by this Act are payable, at the rate in force on that date, on any similar goods then in possession of the applicant that have been acquired free of tax by virtue of subsection 48(4) and shall be computed 
  (i) on the duty paid value of the goods, if they were imported by the applicant, or 
  (ii) on the price for which the goods were purchased by the applicant, if they were not imported by him, and the price shall include the amount of the excise duties on goods sold in bond. 
  
  ### Presumption
  
  (2.1) For the purposes of subparagraph (2)(b)(ii), where an applicant has purchased goods from, or property in goods has otherwise been transferred to an applicant by, a person with whom the applicant was not dealing at arm’s length at the time of the purchase or transfer for no price or for a price that was less than the price (in this subsection referred to as the “reasonable price”) that would have been reasonable in the circumstances if the applicant and that person had been dealing at arm’s length at that time, the applicant shall be deemed to have purchased the goods at that time for a price equal to the reasonable price. 
  
  ### Restriction on re-application
  
  (3) Where an application is rejected pursuant to subsection 48(3) or approval of an application is revoked pursuant to subsection (1), the applicant may not make an application under subsection 48(1) within two years after the date of the notice of decision or the date on and after which the revocation is effective, as the case may be. 
  
  ## Tax Imposed 
  
  ### Consumption or sales tax
  
  50 (1) There shall be imposed, levied and collected a consumption or sales tax at the rate prescribed in subsection (1.1) on the sale price or on the volume sold of all goods 
  (a) produced or manufactured in Canada 
  (i) payable, in any case other than a case mentioned in subparagraph (ii) or (iii), by the producer or manufacturer at the time when the goods are delivered to the purchaser or at the time when the property in the goods passes, whichever is the earlier, 
  (ii) payable, in a case where the contract for the sale of the goods, including a hire-purchase contract and any other contract under which property in the goods passes on satisfaction of a condition, provides that the sale price or other consideration shall be paid to the manufacturer or producer by instalments (whether the contract provides that the goods are to be delivered or property in the goods is to pass before or after payment of any or all instalments), by the producer or manufacturer at the time each of the instalments becomes payable in accordance with the terms of the contract, and 
  (iii) payable, in a case where the goods are for use by the producer or manufacturer thereof, by the producer or manufacturer at the time the goods are appropriated for use; 
  (b) imported into Canada, payable in accordance with the provisions of the Customs Act by the importer, owner or other person liable to pay duties under that Act;  
  (c) sold by a licensed wholesaler, payable by him at the time of delivery to the purchaser, and the tax shall be computed 
  (i) on the duty paid value of the goods, if they were imported by the licensed wholesaler, or 
  (ii) on the price for which the goods were purchased by the licensed wholesaler, if they were not imported by him, which price shall include the amount of the excise duties on goods sold in bond; or 
  (d) retained by a licensed wholesaler for his own use or for rental by him to others, payable by the licensed wholesaler at the time the goods are put to his own use or first rented to others, and the tax shall be computed 
  (i) on the aggregate of the duty paid value of the goods and the amount of any taxes payable on the goods under section 27, if they were imported by the licensed wholesaler, or 
  (ii) on the aggregate of the price paid by the licensed wholesaler for the goods, the amount of any excise duties payable on the goods if sold in bond and the amount of any taxes payable on the goods under section 27, if they were not imported by the licensed wholesaler. 
  
  ### Rates of tax
  
  (1.1) Tax imposed by subsection (1) is imposed 
  (a) in the case of wines, and goods on which a duty of excise is imposed under the Excise Act or would be if the goods were produced or manufactured in Canada, at the rate of nineteen per cent;  
  (b) in the case of goods enumerated in Schedule IV (Construction Materials and Equipment for Buildings), at the rate of nine per cent; 
  (c) in the case of regular gasoline, unleaded gasoline, premium leaded gasoline, premium unleaded gasoline and diesel fuel, at the rate set opposite the applicable item in Schedule II.1, adjusted according to subsection 50.1(1) and multiplied by the rate of tax specified in paragraph (d), expressed as a decimal number and multiplied by one hundred; 
  (c.1) in the case of goods imported into Canada and classified under tariff item No. 9804.30.00 of Schedule I to the Customs Tariff, at the rate of tax specified in paragraph (d); and  
  (d) in any other case, at the rate of thirteen and one-half per cent. 
  
  ### Deemed sale and delivery of gasoline or diesel fuel
  
  (2) Notwithstanding subsection (1), where gasoline or diesel fuel is delivered to a retail outlet by or on behalf of the manufacturer or producer thereof, the gasoline or diesel fuel shall be deemed to have been sold and delivered to a purchaser thereof. 
  
  ### Transitional
  
  (2.1) Notwithstanding subsection (1), where gasoline, diesel fuel or aviation fuel was, immediately prior to March 1, 1987, held in inventory by or on behalf of a person described in paragraph (e) of the definition 
  *manufacturer or producer* in subsection 2(1), as that subsection read immediately prior to March 1, 1987, who was a licensed manufacturer under this Act of gasoline, diesel fuel or aviation fuel solely by virtue of that paragraph, and the consumption or sales tax thereon had not been paid or become payable on or before February 28, 1987, the gasoline, diesel fuel or aviation fuel shall be deemed to have been sold and delivered to a purchaser thereof immediately prior to March 1, 1987.  
  (3) and (4)  [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 16]  
  
  ### Sales tax not payable on certain goods
  
  (5) Notwithstanding anything in subsection (1), the consumption or sales tax shall not be payable on goods 
  (a) sold by a licensed manufacturer to another licensed manufacturer if the goods are partly manufactured goods; 
  (b) imported by a licensed manufacturer if the goods are partly manufactured goods; 
  (c) imported by a licensed wholesaler otherwise than for his own use or for rental to others, on importation; 
  (d) sold by a licensed manufacturer to a licensed wholesaler otherwise than for his own use or for rental to others; 
  (e) sold by a licensed wholesaler to a licensed manufacturer if the goods are partly manufactured goods; 
  (f) sold by a licensed wholesaler to another licensed wholesaler, but if a licensed wholesaler sells goods to another licensed wholesaler at a price less than the value on which the tax would be computed under paragraph (1)(c), the vendor forthwith becomes liable to pay the tax on the difference between the value and his sale price; 
  (g) sold to or imported by a person described in paragraph (d) of the definition 
  *manufacturer or producer* in subsection 2(1) who is a licensed manufacturer under this Act, if the goods are cosmetics;  
  (h)  [Repealed, R.S., 1985, c. 12 (4th Supp.), s. 16]  
  (i) being new motor vehicles designed for highway use, or chassis therefor, imported by a person described in paragraph (g) of the definition 
  *manufacturer or producer* in subsection 2(1) who is a manufacturer licensed for the purposes of this Part;  
  (j) being new motor vehicles designed for highway use, or chassis therefor, sold to a person described in paragraph (h) of the definition 
  *manufacturer or producer* in subsection 2(1) who is a manufacturer licensed for the purposes of this Part;  
  (k) sold to or imported by a person described in paragraph (i) of the definition 
  *manufacturer or producer* in subsection 2(1) who is a licensed manufacturer under this Act, if the goods are goods enumerated in Schedule III.1; or  
  (l) sold or leased to, or imported by, a person described in paragraph (j) of the definition 
  *manufacturer or producer* in subsection 2(1) who is a licensed manufacturer under this Act, if the goods are prerecorded video cassettes that are new or have not been used in Canada.  
  
  ### Where exemption not applicable
  
  (6) Where any person, other than the manufacturer or producer, importer, owner, licensed wholesaler or jobber mentioned in this section, acquires from or against any one of those persons the right to sell any goods, whether as a result of the operation of law or of any transaction not taxable under this section, the sale of the goods by him shall be taxable as if made by the manufacturer or producer, importer, owner, licensed wholesaler or jobber, as the case may be, and the person so selling is liable to pay the tax. 
  
  ### Diversion of certain articles to non-exempt use, sale, etc.
  
  (7) Where a motor vehicle, tractor or aircraft or a ship or other marine vessel, or a machine or tool for operation by a motor vehicle or tractor or a part or equipment for an aircraft or ship or other marine vessel 
  (a) has been purchased or imported by a person for a use by that person that renders the purchase or importation exempt from tax imposed under this Part and Part III or either of those Parts, or 
  (b) has been purchased as described in subsection 68.19(1), the following rules apply: 
  (c) if within five years of the time the article was first purchased or, if imported, released under the Customs Act for a use rendering the purchase or release exempt from tax imposed under this Part and Part III or either of those Parts, the article is applied to any use, other than of a casual nature, for which it could not, at the time of such first purchase, have been purchased or released exempt from the tax, the article shall be deemed to have been sold at the time of its first application to that use and tax imposed under this Part and Part III or either of those Parts, shall be imposed, levied and collected at the time of its first application to that use,  
  (i) in the case of an article mentioned in Schedule I having a specific rate of tax set opposite the item, at the lesser of the specific rate applicable at that time, and the specific rate, if any, applicable in the case of the article at the time the article was first purchased or imported for a use rendering the purchase or importation exempt from the tax or taxes, and 
  (ii) in any other case, on the sale price that would have been reasonable in the circumstances if the article had been sold, at the time of its first application to that use, to a person with whom the person so applying the article was dealing at arm’s length, payable by the owner of the article at the time of its first application to the use rendering it subject to tax; and 
  (d) if within five years of the time the article was first purchased or, if imported, released under the Customs Act for a use rendering the purchase or release exempt from tax imposed under this Part and Part III or either of those Parts, the article is sold or leased, the article shall be deemed to have been sold at the time of the sale or lease and tax imposed under this Part and Part III or either of those Parts, shall, if applicable, be imposed, levied and collected at the time of the sale or lease,  
  (i) in the case of an article mentioned in Schedule I having a specific rate of tax set opposite the item, at the lesser of the specific rate applicable at that time, and the specific rate, if any, applicable in the case of the article at the time the article was first purchased or imported for a use rendering the purchase or importation exempt from the tax or taxes, and 
  (ii) in any other case, 
  (A) where the article was sold, on the sale price, or 
  (B) where the article was leased by a person to another person, on the sale price that would have been reasonable in the circumstances if the article had been sold, at the time of the lease, to that other person, payable by the person who sold or leased the article. 
  
  ### Diversion of fuel
  
  (8) Where fuel that has been purchased or imported for heating or lighting is sold or appropriated by the purchaser or importer for a purpose for which the fuel could not have been purchased or imported exempt from tax under this Part at the time of the purchase or importation, the tax imposed under this Part shall be payable by the purchaser or importer 
  (a) where the fuel is sold, at the time of delivery to the person to whom it is sold, computed at the rate of tax in force at that time 
  (i) in the case of gasoline or diesel fuel, on the volume sold, and 
  (ii) in any other case, on the sale price; and 
  (b) where the fuel is appropriated, at the time of the appropriation, computed at the rate of tax in force at that time 
  (i) in the case of gasoline or diesel fuel, on the volume appropriated, and 
  (ii) in any other case, on the sale price that would have been reasonable in the circumstances if the fuel had been sold, at that time, to a person with whom the purchaser or importer was dealing at arm’s length. 
  (9)  [Repealed, 2002, c. 22, s. 372]  
  
  ### Adjustment of rates of tax on certain petroleum products
  
  50.1 (1) Commencing on April 1, 1986, the rates enumerated in Schedule II.1 shall be adjusted each January 1, April 1, July 1 and October 1, so that the rates applicable during the three month period commencing on the adjustment day are equal to the amounts obtained 
  (a) by multiplying 
  (i) the rates so enumerated by 
  (ii) the ratio, adjusted or altered in the manner prescribed pursuant to subsection (3) and rounded to the nearest one-thousandth or, where the ratio is equidistant from two one-thousandths, to the greater thereof, that 
  (A) the Industrial Product Price Index for Motor Gasoline, in the case of the rates enumerated in sections 1 and 2 of Schedule II.1, or 
  (B) the Industrial Product Price Index for Diesel Oil, in the case of the rate enumerated in section 5 of Schedule II.1, for the twelve month period ending on the day before the three month period immediately preceding the adjustment day bears to 
  (C) the Industrial Product Price Index for Motor Gasoline, in the case of the rates enumerated in sections 1 and 2 of Schedule II.1, or 
  (D) the Industrial Product Price Index for Diesel Oil, in the case of the rate enumerated in section 5 of Schedule II.1, for the twelve month period ending on September 30, 1985; and 
  (b) by rounding the product obtained under paragraph (a) to the nearest one hundred-thousandth of a dollar or, if the product is equidistant from two one-hundred-thousandths of a dollar, to the greater thereof. 
  
  ### Industrial Product Price Index
  
  (2) For the purposes of subsection (1), the Industrial Product Price Index for Motor Gasoline, or the Industrial Product Price Index for Diesel Oil, for a twelve month period is the result obtained 
  (a) by aggregating the most recent Industrial Product Price Index for Motor Gasoline or the most recent Industrial Product Price Index for Diesel Oil, as the case may be, for each month in the period, including the relevant data for the period from January 1, 1981 to December 31, 1985, released by Statistics Canada under the authority of the Statistics Act on or before the fifteenth day of the third month following the end of that period and adjusted or altered in the manner prescribed pursuant to subsection (3);  
  (b) by dividing the aggregate obtained under paragraph (a) by twelve; and 
  (c) by rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two one-thousandths, to the greater thereof. 
  
  ### Adjustment regulations
  
  (3) The Governor in Council, on the recommendation of the Minister of Finance, may make regulations 
  (a) prescribing the manner in which the ratio referred to in subparagraph (1)(a)(ii) shall be adjusted or altered; and 
  (b) prescribing, for the purposes of subsection (2), the manner in which the Industrial Product Price Index for Motor Gasoline or the Industrial Product Price Index for Diesel Oil for any month shall be adjusted or altered. 
  
  ### Definition of terms
  
  (4) The Governor in Council may, by regulation, define the terms 
  *regular gasoline*, 
  *unleaded gasoline*, 
  *premium leaded gasoline* and 
  *premium unleaded gasoline* for the purposes of paragraph 50(1.1)(c) and of Schedule II.1.  
  
  ### Goods exempted
  
  51 (1) The tax imposed by section 50 does not apply to the sale or importation of the goods mentioned in Schedule III, other than those goods mentioned in Part XIII of that Schedule that are sold to or imported by persons exempt from consumption or sales tax under subsection 54(2). 
  
  ### Articles partially exempted
  
  (2) The tax imposed by section 50 shall be imposed only on fifty per cent of the sale price if manufactured in Canada or fifty per cent of the duty-paid value if imported, of metric retail scales having a maximum weighing capacity of one hundred kilograms and specifically designed for the weighing of goods in retail operations, when sold or imported before January 1, 1984. 
  
  ### Idem
  
  (3) The tax imposed by section 50 on the sale price of mobile homes and modular building units shall be imposed on only fifty per cent of the sale price thereof. 
  
  ### Appropriation by manufacturer or producer
  
  52 (1) Where goods that were manufactured or produced in Canada are appropriated by the manufacturer or producer thereof for his own use, the sale price of the goods shall be deemed to be equal to the sale price that would have been reasonable in the circumstances if the goods had been sold, at the time of the appropriation, to a person with whom the manufacturer or producer was dealing at arm’s length. 
  
  ### Exception
  
  (2) Subsection (1) does not apply in respect of goods, other than printed matter, manufactured by Her Majesty in right of Canada or a province (except goods manufactured by a company to which the Government Corporations Operation Act applies) for any purpose, other than  
  (a) sale; 
  (b) use by any board, commission, railway, public utility, university, manufactory, company or agency that is owned, controlled or operated by the Government of Canada or the government of a province or under the authority of Parliament or of the legislature of a province; or 
  (c) use by Her Majesty in right of Canada or a province or Her agents or servants for commercial or mercantile purposes. 
  
  ### Lease or other disposal by manufacturer or producer
  
  (3) Where goods that were manufactured or produced in Canada are leased, or the right to use any such goods, but not the property therein, is sold or given, by the manufacturer or producer thereof to a person 
  (a) the goods shall be deemed to have been sold at the time the goods were so leased or the right to use them was so sold or given; and 
  (b) the sale price of the goods shall be deemed to be equal to the sale price that would have been reasonable in the circumstances if the goods had been sold at that time to that person. 
  
  ### Royalty or other consideration
  
  (4) Where the sale price of goods consists in whole or in part of a royalty, or any other consideration, that is unascertained at the earlier of the time the goods are delivered or the property in the goods passes to the purchaser thereof, the sale price of the goods shall be deemed to be equal to the sale price that would have been reasonable in the circumstances if the whole of the consideration had been ascertained at that time. 
  
  ### Disposal of cosmetics by licensed manufacturer
  
  (5) Where cosmetics were manufactured or produced in Canada by a licensed manufacturer for a non-resident person who is a person described in paragraph (d) of the definition 
  *manufacturer or producer* in subsection 2(1) and who has failed to apply for a licence as required by section 54, the licensed manufacturer shall be deemed to have sold the cosmetics for a sale price equal to the sale price that would have been reasonable in the circumstances if the cosmetics had been sold in Canada, at the earlier of the time the cosmetics were delivered or the property in the cosmetics passed to that non-resident person, by that non-resident person to a third person with whom he was dealing at arm’s length.  
  
  ### Disposal of video cassettes by licensed manufacturer
  
  (6) Where prerecorded video cassettes that are new or have not been used in Canada were manufactured or produced in Canada by a licensed manufacturer for a non-resident person who is a person described in paragraph (j) of the definition 
  *manufacturer or producer* in subsection 2(1) and who has failed to apply for a licence as required by section 54, the licensed manufacturer shall be deemed to have sold the cassettes for a sale price equal to the sale price that would have been reasonable in the circumstances if the cassettes had been sold in Canada, at the earlier of the time the cassettes were delivered or property in the cassettes passed to that non-resident person, by that non-resident person to a third person with whom he was dealing at arm’s length.  
  53  [Repealed, R.S., 1985, c. 15 (1st Supp.), s. 21]  
  
  ## Licences 
  
  ### Manufacturers’ licences
  
  54 (1) Subject to this section, every manufacturer or producer shall apply for a licence for the purposes of this Part. 
  
  ### Exemption
  
  (2) The Minister may grant a licence to any person applying therefor under subsection (1), but the Governor in Council, on the joint recommendation of the Minister of Finance and the Minister of National Revenue, may make regulations exempting any class of small manufacturer or producer from payment of consumption or sales tax on goods manufactured or produced by persons who are members of the class and persons so exempted are not required to apply for a licence. 
  
  ### Withdrawal of exemption
  
  (3) An exemption granted under subsection (2) may, on the joint recommendation of the Minister of Finance and the Minister of National Revenue, be withdrawn by the Governor in Council at any time. 
  
  ### Cancellation
  
  (4) The Minister may cancel a licence issued under this Part if, in his opinion, it is no longer required for the purposes of this Part. 
  
  ### Licensed wholesaler or jobber
  
  55 (1) A bona fide wholesaler or jobber may be granted a licence but, if a wholesaler was not in possession of a licence on September 1, 1938, no licence shall be issued to him unless he is engaged exclusively or mainly in the purchase and sale of lumber or unless fifty per cent of his sales for the three months immediately preceding his application were exempt from the sales tax under this Act.  
  
  ### Duty free shops
  
  (2) A person who proposes to operate and sell goods exclusively at a duty free shop licensed as such under the Customs Act or who operates and sells goods exclusively at such a duty free shop shall be deemed, for the purposes of this section, to be a bona fide wholesaler or jobber, and the Minister may grant a licence to that person notwithstanding that he does not fulfil the requirements of subsection (1).  
  
  ### Licensee to give security
  
  (3) A wholesaler or jobber applying for a licence under this section shall give security that the wholesaler or jobber and any person other than the wholesaler or jobber who acquires from or against him the right to sell any goods, whether as a result of the operation of law or of any transaction not taxable under this Act, shall keep adequate books or accounts for the purposes of this Act and shall render true returns of sales as required by this Act, or any regulations made under this Act, and pay any tax imposed by this Act on those sales. 
  
  ### Amount of security
  
  (4) The security referred to in subsection (3) shall be for an amount of not more than twenty-five thousand dollars and not less than two thousand dollars. 
  
  ### Bond
  
  (5) The security referred to in subsection (3) shall be by a bank or by bond of an incorporated guarantee company authorized to do business in Canada, acceptable to the Minister, or by deposit of bonds or other securities of or guaranteed by the Government of Canada. 
  
  ### Form of bond
  
  (6) Where the security referred to in subsection (3) is by bond of a guarantee company, the bond shall be in form approved by the Minister. 
  
  ### Cancellation of licence
  
  56 (1) The licence of any wholesaler or jobber who contravenes any requirement of this Part shall be cancelled forthwith and the wholesaler or jobber shall not be granted a licence within a period of two years after the date of the cancellation. 
  
  ### Idem
  
  (2) The licence of any person deemed by subsection 55(2) to be a bona fide wholesaler or jobber shall be cancelled forthwith if he ceases to operate and sell goods exclusively at a duty free shop licensed as such under the Customs Act, and on cancellation of the licence pursuant to this section, all taxes imposed by this Act are forthwith payable on all goods then in the possession of the licensee that have been purchased free of tax by virtue of the licence.  
  
  ### Tax on cancellation
  
  (3) On the cancellation under subsection (1) of the licence granted to any licensed wholesaler, or if the licence is cancelled at the request of the licensee, or if any such licence expires and is not renewed by the licensee, all taxes imposed by this Act are forthwith payable on all goods then in the possession of the licensee that have been purchased free of tax by virtue of the licence, which taxes shall be paid at the rate in force when the licence is cancelled or expires and is not renewed and shall be computed in accordance with paragraph 50(1)(c) and Part III. 
  
  ### Cancellation of bond
  
  (4) Notwithstanding that a bond of a guarantee company given under section 55 has been cancelled, the bond shall be deemed to remain in force in relation to all goods in the possession of the licensed wholesaler at the time of cancellation. 
  
  ## Evasion 
  
  ### Powers of Minister
  
  57 (1) Notwithstanding anything in this Part, if it appears to the Minister that payment of the consumption or sales tax is being evaded by a licensed manufacturer or licensed wholesaler, the Minister may require that the consumption or sales tax shall be imposed, levied and collected on any material specified by the Minister sold to any licensed manufacturer or licensed wholesaler or to any class of licensed manufacturers or licensed wholesalers specified by the Minister, at the time of sale of the material when produced or manufactured in Canada, or prior to release under the Customs Act if the material is imported by the licensed manufacturer or licensed wholesaler.  
  
  ### Deduction
  
  (2) A deduction may be made, in respect of the tax imposed, levied and collected on material referred to in subsection (1), on submission by the licensed manufacturer or licensed wholesaler of proof that the material has been used in the manufacture of an article that is subject to the consumption or sales tax and on which the tax has been paid. 
  
  ### Deemed sale price
  
  58 (1) Notwithstanding any other provision of this Act other than subsections 52(5) and (6), for the purposes of this Part and Part III, where goods that were manufactured or produced, or deemed to have been manufactured or produced, in Canada are sold or deemed to be sold, or the property therein is otherwise transferred, by the manufacturer or producer thereof to a person with whom the manufacturer or producer was not dealing at arm’s length at the earlier of the time the goods were delivered or property in the goods passed to that person for no sale price or for a sale price that is less than the sale price (in this subsection referred to as the “reasonable sale price”) that would have been reasonable in the circumstances if the manufacturer or producer and that person had been dealing at arm’s length at that time, the manufacturer or producer shall be deemed to have sold the goods at that time for the reasonable sale price. 
  
  ### Idem
  
  (2) Notwithstanding any other provision of this Act, for the purposes of this Part and Part III, where a licensed wholesaler has purchased goods from, or property in goods has otherwise been transferred to a licensed wholesaler by, a person with whom the licensed wholesaler was not dealing at arm’s length at the earlier of the time the goods were delivered or property in the goods passed to the licensed wholesaler for no price or for a price that was less than the price (in this subsection referred to as the “reasonable price”) that would have been reasonable in the circumstances if the licensed wholesaler and that person had been dealing at arm’s length at that time and the goods were not imported by the licensed wholesaler, the licensed wholesaler shall be deemed to have purchased the goods at that time for a price equal to the reasonable price. 
  
  ### Idem
  
  (3) Notwithstanding any other provision of this Act, for the purposes of this Part and Part III, where a person has purchased or imported goods as described in subsection 68.19(1) or for a use rendering the purchase or importation exempt from tax under Part III or this Part and that person, under circumstances rendering him liable to pay the tax imposed by Part III or this Part, sells the goods or is deemed to sell the goods, or the property therein is otherwise transferred, to another person with whom he was not dealing at arm’s length at the time of the sale or transfer for no sale price or for a sale price that is less than the sale price (in this subsection referred to as the “reasonable sale price”) that would have been reasonable in the circumstances if they had been dealing at arm’s length at that time, that person shall be deemed to have sold the goods at that time for the reasonable sale price. 
  
  # PART VII 
  
  ## General 
  
  ## Interpretation 
  
  ### Definitions
  
  58.1 (1) In this Part,  
  *assessment* means an assessment under subsection 81.1(1) and includes a variation of an assessment and a reassessment;  (cotisation)   
  *Board* [Repealed, R.S., 1985, c. 47 (4th Supp.), s. 52]   
  *Department* [Repealed, 1999, c. 17, s. 149]   
  *Deputy Minister* [Repealed, 1999, c. 17, s. 149]   
  *fiscal half-year* means a fiscal half-year as determined under subsection 78(1.1). (semestre d’exercice)   
  *fiscal month* means a fiscal month as determined under subsection 78(1);  (mois d’exercice)   
  *fiscal year* of a person means the same period that is the person’s fiscal year under Part IX. (exercice)   
  *month* means a period beginning on a particular day in a calendar month and ending on  
  (a) the day immediately before the day in the next calendar month that has the same calendar number as the particular day, or 
  (b) if the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month; ( mois)   
  *reporting period* means a reporting period as determined under section 78.1. (période de déclaration)   
  *Tribunal* means the Canadian International Trade Tribunal established by subsection 3(1) of the Canadian International Trade Tribunal Act.  (Tribunal)  
  
  ### Same meaning
  
  (2) Words and expressions used in this Part in connection with a tax under any other Part have the same meaning as in that other Part unless the contrary intention appears. 
  
  ### Remittance
  
  (3) Unless the contrary intention appears, any reference in this Part to “pay” or “payment”, in relation to taxes imposed under this Act, shall be construed as including, in relation to taxes imposed under Part II or II.2, a reference to “remit” or “remittance”, and other parts of speech and grammatical forms of those words shall be construed in a corresponding manner. 
  
  ## Regulations 
  
  ### Regulations
  
  59 (1) The Minister of Finance or the Minister of National Revenue, as the case may be, may make such regulations as he deems necessary or advisable for carrying out the provisions of this Act. 
  
  ### Delegation of powers
  
  (2) The Minister may authorize a designated officer or agent, or officer or agent of a designated class of officers or agents, to exercise powers or perform duties of the Minister, including judicial or quasi-judicial powers or duties, under this Act. 
  (3)  [Repealed, 1990, c. 45, s. 9]  
  
  ### Regulations prescribing rate of interest
  
  (3.1) The Governor in Council may, on the recommendation of the Minister of Finance, make regulations prescribing a rate of interest or rules for determining a rate of interest for the purposes of this Act. 
  
  ### Regulations
  
  (3.2) The Governor in Council may make regulations 
  (a) designating certain classes of goods as ships’ stores for use on board a conveyance of a prescribed class, including a class based on 
  (i) the physical attributes, functions or legal descriptions of conveyances, 
  (ii) areas within which conveyances voyage, 
  (iii) requirements, or limitations, related to voyages of conveyances, or 
  (iv) any combination of the bases mentioned in subparagraphs (i) to (iii); and 
  (b) limiting the quantity of goods referred to in paragraph (a) that may be used as described in that paragraph during any prescribed period or periods. 
  
  ### Regulations respecting reasonable price
  
  (3.3) The Governor in Council may make regulations respecting the method for determining the reasonable sale price or reasonable price, as the case may be, for any goods for the purposes of subsections 23(10) and 49(2.1), subparagraphs 50(7)(c)(ii) and (d)(ii), subsection 50(8) and sections 52 and 58. 
  
  ### Effect
  
  (3.4) A regulation made under this Act has effect from the day on which it is published in the Canada Gazette or at any later time that may be specified in the regulation, unless it provides otherwise and  
  (a) has a relieving effect only; 
  (b) corrects an ambiguous or deficient enactment that was not in accordance with the objects of this Act; 
  (c) is consequential on an amendment to this Act that is applicable before the day on which the regulation is published in the Canada Gazette ; or  
  (d) gives effect to a budgetary or other public announcement, in which case the regulation shall not, unless paragraph (a), (b) or (c) applies, have effect before the day on which the announcement was made. 
  
  ### Enforcement
  
  (4) The regulations shall be enforced in the same manner as any provision of this Act. 
  
  ### Oaths and declarations
  
  (5) Any person designated by the Minister may receive or administer any oath or declaration required by this Act, or by any regulation made under this Act, and every person so designated has, with respect to any such oath or declaration, has all the powers of a commissioner for taking affidavits. 
  
  ## Stamps 
  
  ### Preparation and use of stamps
  
  60 The Minister may direct the preparation and use of stamps for the purposes of this Act. 
  
  ### Cancellation
  
  61 In any case in which an adhesive stamp is required to be cancelled, and no other method of cancellation is prescribed, the stamp shall be deemed to be cancelled if lines or marks are drawn across or impressed thereon so as effectually to render the stamp incapable of being used for any other instrument. 
  
  ### Liability
  
  62 Every person who, being required by or pursuant to this Act to affix or cancel stamps, fails to do so as required is liable to Her Majesty for the amount of stamps he should have affixed or cancelled and that amount is recoverable in the Federal Court, or in any other court of competent jurisdiction as a debt due to Her Majesty. 
  
  ### Appointment of stamp vendors
  
  63 (1) The Minister may appoint postmasters or other officers of the Crown to sell stamps prepared for the purposes of this Act and he may authorize other persons to be vendors who may purchase stamps so prepared for resale. 
  
  ### Reduced price
  
  (2) The Governor in Council may by regulation fix a reduced price at which stamps prepared for the purposes of this Act may be sold to persons authorized by the Minister to be vendors under subsection (1). 
  
  ## Licences 
  
  ### Application for licence
  
  64 (1) Every person who is required under Part III to pay taxes shall, from time to time as required under the regulations, apply for a licence in respect of that Part. 
  
  ### Granting of licence and exemption
  
  (2) The Minister may grant a licence to any person applying therefor under subsection (1) and may, by regulation, exempt any person or class of persons from obtaining a licence under this section in respect of a specified Part, and any person who is a member of a class of small manufacturer or producer the members of which are exempted, pursuant to subsection 54(2), from payment of consumption or sales tax on goods manufactured or produced by them shall, whether or not he is a person or member of a class of persons exempted from obtaining a licence under this section, be exempt from payment of excise tax on goods manufactured or produced by him. 
  
  ### Cancellation of licences
  
  (3) The Minister may cancel a licence issued under this section if, in his opinion, it is no longer required for the purposes of this Act. 
  
  ### Offence and punishment
  
  65 Every person who fails to apply for a licence as required by this Act is guilty of an offence and liable to a fine not exceeding one thousand dollars. 
  
  ## Exported Goods 
  
  ### Exemption on exported goods
  
  66 The tax imposed under this Act is not payable if evidence satisfactory to the Minister is produced to establish 
  (a) that the goods in respect of which it is imposed have been exported from Canada by the manufacturer, producer or licensed wholesaler by whom the tax would otherwise be payable in accordance with any regulations made under this Act that are applicable to the goods; or 
  (b) that the goods in respect of which it is imposed have been sold by the operator of a duty free shop and have been exported from Canada by the purchaser of the goods, in accordance with the regulations made under the Customs Act.  
  66.1  [Repealed, 2002, c. 22, s. 375]  
  
  ## Liability of the Crown 
  
  ### Taxes on goods imported by Crown
  
  67 The tax imposed under Part III is applicable 
  (a) to goods imported by Her Majesty in right of Canada; and 
  (b) to goods imported by Her Majesty in right of a province. 
  
  ## Deductions, Refunds and Drawbacks 
  
  ### Payment where error
  
  68 (1) If a person, otherwise than pursuant to an assessment, has paid any moneys in error in respect of any goods, whether by reason of mistake of fact or law or otherwise, and the moneys have been taken into account as taxes, penalties, interest or other sums under this Act, an amount equal to the amount of the moneys shall, subject to this Part, be paid to the person if the person applies for the payment of the amount within two years after the payment of the moneys. 
  
  ### Exception
  
  (2) Subsection (1) does not apply if an application for a payment in respect of the goods can be made by any person under section 68.01. 
  
  ### Payment for end-users — diesel fuel
  
  68.01 (1) If tax under this Act has been paid in respect of diesel fuel, the Minister may pay an amount equal to the amount of that tax 
  (a) in the case where a vendor delivers the diesel fuel to a purchaser 
  (i) to the vendor, if the vendor applies for the payment, the purchaser certifies that the diesel fuel is for use exclusively as heating oil and the vendor reasonably believes that the purchaser will use it exclusively as heating oil, 
  (i.1) to the vendor, if the quantity of the diesel fuel is at least 1,000 litres, the vendor applies for the payment and the purchaser certifies that, and the vendor reasonably believes that, the purchaser will use the diesel fuel exclusively to generate electricity other than in or by a vehicle, including a conveyance attached to the vehicle, of any mode of transportation, or 
  (ii) to the purchaser, if the purchaser applies for the payment, the purchaser uses the diesel fuel as heating oil and no application in respect of the diesel fuel can be made by the vendor under subparagraph (i); or 
  (b) to a purchaser that applies for the payment and that uses the diesel fuel to generate electricity (other than in or by a vehicle, including a conveyance attached to the vehicle, of any mode of transportation), if no application in respect of the diesel fuel can be made by the vendor under subparagraph (a)(i.1). 
  
  ### Payment for end-users — fuel used as ships’ stores
  
  (2) If tax under this Act has been paid in respect of fuel and no application is made in respect of the fuel by any person under section 68.17 or 70, the Minister may pay an amount equal to the amount of that tax to a purchaser who applies for the payment and who uses the fuel as ships’ stores. 
  
  ### Timing of application
  
  (3) No payment shall be made under this section unless 
  (a) the vendor described in subparagraph (1)(a)(i) or (i.1) applies for it within two years after the vendor sells the diesel fuel to the purchaser described in subparagraph (1)(a)(i) or (i.1), as the case may be; or 
  (b) the purchaser described in subparagraph (1)(a)(ii), paragraph (1)(b) or subsection (2) applies for it within two years after the purchase. 
  
  ### Conditions
  
  (4) The Minister is not required to make a payment under this section unless the Minister is satisfied that all the conditions for the payment have been met. 
  
  ### Deemed tax payable
  
  (5) If, under this section, the Minister pays an amount to a person to which that person is not entitled, or pays an amount to a person in excess of the amount to which that person is entitled, the amount of the payment or the excess is deemed to be a tax payable by that person under this Act on the day on which the Minister made the payment. 
  
  ### Payment to end-users — specially equipped van
  
  68.02 (1) If tax under this Act has been paid in respect of a van to which section 6 of Schedule I applies, the Minister may pay an amount equal to the amount of the tax paid at the rate set out in that section 
  (a) if the van was manufactured or produced in Canada, to a person who is the first final consumer of the van if, at the time of the acquisition of the van by the person or within six months after that time, the van has been equipped with a device designed exclusively to assist in placing a wheelchair in the van without having to collapse the wheelchair; or 
  (b) if the van was imported, to a person who is the first final consumer of the van after the importation if, at the time of importation, the van was equipped with a device designed exclusively to assist in placing a wheelchair in the van without having to collapse the wheelchair. 
  
  ### Timing of application
  
  (2) No payment in respect of a van shall be made under this section unless the person to whom the payment can be made applies for it within two years after the person acquires the van. 
  
  ### Deemed tax payable
  
  (3) If, under this section, the Minister pays an amount to a person to which that person is not entitled, or pays an amount to a person in excess of the amount to which that person is entitled, the amount of the payment or the excess is deemed to be a tax payable by that person under this Act on the day on which the Minister made the payment. 
  
  ### Payment where goods exported
  
  68.1 (1) Where tax under this Act has been paid in respect of any goods and a person has, in accordance with regulations made by the Minister, exported the goods from Canada, an amount equal to the amount of that tax shall, subject to this Part, be paid to that person if that person applies therefor within two years after the export of the goods. 
  (2)  [Repealed, 2002, c. 22, s. 377, as amended by 2003, c. 15, s. 66]  
  
  ### Exception
  
  (3) For greater certainty, no amount is payable to a person under subsection (1) in respect of tax paid on gasoline or diesel fuel transported out of Canada in the fuel tank of the vehicle that is used for that transportation. 
  
  ### Payment where adjustment
  
  68.11 Where tax under Part II has been remitted by a licensed air carrier and the carrier has, in accordance with subsection 18(1), made an adjustment or refund in respect of the tax, an amount equal to the amount of that adjustment or refund shall, subject to this Part, be paid to that carrier if it applies therefor within two years after the adjustment or refund. 
  
  ### Payment where adjustment
  
  68.12 Where tax under Part II.1 has been paid by a licensee in respect of any taxable service and the licensee has made an adjustment or refund of the amount charged because of an error or because the service was not provided, or was only partially provided, by the licensee, an amount equal to the proportion of the amount of that tax that the amount of the adjustment or refund is of the amount charged shall, subject to this Part, be paid to the licensee if he applies therefor within two years after the adjustment or refund. 
  
  ### Payment where licence subsequently issued
  
  68.13 Where tax under Part II.1 has been paid by a licensee in respect of any taxable service and the person, in this section referred to as the “purchaser”, acquiring the service from the licensee 
  (a) was required at the time the amount charged to the purchaser for the service was paid or payable, whichever is the earlier, to apply for a licence under that Part and was thereafter issued such a licence, and 
  (b) provided the service, at a time when the purchaser was required to apply for a licence under that Part or held such a licence, to another person for an amount charged that was paid or payable, whichever is the earlier, at that time, an amount equal to the proportion of the amount of that tax that the amount of the taxable sales of the service by the purchaser is of the amount of the total sales of the service by the purchaser shall, subject to this Part, be paid to the purchaser if he applies therefor within two years after the later of the time the service was provided by the purchaser and the time the licence was issued to the purchaser. 
  
  ### Payment where use by province
  
  68.14 (1) Where tax under Part II.1 has been paid by a licensee in respect of any taxable service and Her Majesty in right of a province has acquired the service for any purpose other than 
  (a) provision to another person for an amount charged, 
  (b) use by any board, commission, railway, public utility, university, manufactory, company or agency owned, controlled or operated by the government of the province or under the authority of the legislature or the lieutenant governor in council of the province, or 
  (c) use by Her Majesty in that right, or by any agents or servants of Her Majesty in that right, for any commercial or mercantile purposes, an amount equal to the amount of that tax shall, subject to this Part, be paid either to that licensee or to Her Majesty in that right, as the case may require, if the licensee or Her Majesty applies therefor within two years after Her Majesty acquired the service. 
  
  ### Exception
  
  (2) No amount shall be paid pursuant to subsection (1) to a licensee who provides a taxable service to Her Majesty in right of a province in respect of which there is in force at the time the service is provided a reciprocal taxation agreement referred to in section 32 of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act.  
  
  ### Definitions
  
  68.15 (1) In this section,  
  *arm’s length sale* means the provision of a taxable service for an amount charged by a licensee to a person with whom the licensee is dealing at arm’s length at the time the service is provided; (vente sans lien de dépendance)   
  *fiscal period* means a fiscal period as determined for the purposes of the Income Tax Act. (exercice)  
  
  ### Payment where bad debt
  
  (2) Where tax under Part II.1 has been paid, or tax under Part II.2 has been remitted, by a licensee in respect of an arm’s length sale occurring on or after February 16, 1984 and the licensee has established, in accordance with generally accepted accounting practices, that any debt owing to the licensee in respect of the sale has become in whole or in part a bad debt and has accordingly written off the debt as a bad debt in his books of account, an amount equal to the proportion of the amount of that tax that the amount of the debt written off is of the aggregate of the amount charged for the taxable service and the amount of the tax shall, subject to this Part, be paid to that licensee if the licensee applies therefor in the two years after the end of his fiscal period during which the debt was so written off. 
  
  ### Recovery of payment
  
  (3) Where a licensee recovers all or any part of a debt in respect of which an amount is paid to him pursuant to subsection (2), in this subsection referred to as the “refunded amount”, that licensee shall forthwith pay to Her Majesty an amount equal to the proportion of the refunded amount that the amount of the debt so recovered is of the amount of the debt written off in respect of which the refunded amount was paid. 
  
  ### Payment where adjustment
  
  68.151 Where tax under Part II.2 has been remitted by a licensee and the licensee has, in accordance with subsection 21.31(1), made an adjustment or refund in respect of the tax, an amount equal to the amount of that adjustment or refund shall, subject to this Part, be paid to that licensee if the licensee applies therefor within two years after he made the adjustment or refund. 
  
  ### Payment where licence subsequently issued
  
  68.152 Where tax under Part II.2 has been paid by a person in respect of any taxable service acquired by that person and that person 
  (a) was required, at the time the tax became payable, to apply for a licence under that Part and was thereafter issued such a licence, and 
  (b) at a time when that person was required to apply for a licence under that Part or held such a licence, 
  (i) provided the service to another person for an amount charged that was paid or payable, whichever is the earlier, at that time, or 
  (ii) used the service directly in providing another taxable service, other than a paging service, to another person, an amount equal to the proportion of the amount of that tax that the uses referred to in paragraph (b) of the taxable service are of the total use of that taxable service by that person shall, subject to this Part, be paid to that person if he applies therefor within two years after the later of the time the service was so provided or used by that person and the time the licence was issued to that person. 
  
  ### Payment where resale
  
  68.153 Where tax under Part II.2 has been paid in respect of any taxable service by a person who was not a telecommunications carrier at the time the tax became payable and that person has provided the service for an amount charged to another person who acquired the service for a use described in subsection 21.28(1) or (2) and held a licence under that Part or Part II.1 at the time of that acquisition, an amount equal to the proportion of the amount of that tax that the provision of that service to that other person is of the total use of that service by that person shall, subject to this Part, be paid to that person if he applies therefor within two years after he provided the service to that other person. 
  
  ### Payment where certain uses of gasoline
  
  68.16 (1) Where tax under Part III has been paid in respect of any gasoline and the gasoline has been purchased by 
  (a) Her Majesty in right of Canada or a province or any agent of Her Majesty in right of Canada or a province, before 1991, 
  (b) a municipality, before 1991, 
  (c) a person for commercial or business purposes, before 1991, 
  (d) a farmer for farming purposes, before 1991, 
  (e) a fisherman, hunter or trapper for commercial fishing, hunting or trapping, before 1991, 
  (f) a person under conditions for which relief from the consumption or sales tax is provided by any provision of this Act, other than subsection 50(5), before 1991, 
  (g) a person of such other class of persons as the Governor in Council may by regulation prescribe, before 1991, 
  (g.1) a registered charity, within the meaning of the Income Tax Act,  
  (g.2) a registered Canadian amateur athletic association, within the meaning of the Income Tax Act, or  
  (g.3) a person who has been certified by a qualified medical practitioner to be suffering from a permanent impairment of locomotion to such an extent that the use of public transportation by that person would be hazardous, for the sole use of the purchaser and not for resale, an amount equal to that portion of the tax equal to one and one-half cents per litre shall, subject to this Part, be paid 
  (h) to the purchaser, or 
  (i) in accordance with such terms and conditions as the Governor in Council may by regulation prescribe, to the manufacturer, producer, wholesaler, jobber or other dealer, if the purchaser applies therefor within two years after he purchased the gasoline. 
  
  ### Payment where certain uses of aviation gasoline
  
  (2) Where tax under Part III has been paid in respect of any aviation gasoline and the aviation gasoline has been purchased before 1991 by a person 
  (a) providing public air transportation of passengers, freight or mail, 
  (b) providing air services directly related to 
  (i) the exploration and development of natural resources, 
  (ii) aerial spraying, seeding and pest control, 
  (iii) forestry, 
  (iv) fish cultivation, 
  (v) aerial construction operations using rotating wing aircraft, 
  (vi) aerial fire control, fire protection and fire fighting, or 
  (vii) map making operations, or 
  (c) engaged in the business of testing aircraft engines, for the sole use of the purchaser to provide a service mentioned in paragraph (a) or (b) or to test aircraft engines, as the case may be, and not for resale or any other use, an amount equal to that portion of the tax equal to one and one-half cents per litre shall, subject to this Part, be paid 
  (d) to the purchaser, or 
  (e) in accordance with such terms and conditions as the Governor in Council may by regulation prescribe, to the manufacturer, producer, wholesaler, jobber or other dealer, if the purchaser applies therefor within two years after he purchased the aviation gasoline. 
  
  ### Presumption
  
  (3) Any payment made to a person referred to in paragraph (1)(i) or (2)(e) shall, for the purposes of subsection (4), paragraph 97.1(1)(b) and sections 98 to 101, be deemed to have been made to the purchaser. 
  
  ### Recovery of payment
  
  (4) Where an amount has been paid pursuant to subsection (1) or (2) to a person who sells or uses the gasoline or aviation gasoline for a purpose that does not entitle its purchaser to that payment, the purchaser shall forthwith pay to Her Majesty an amount equal to the amount of the payment. 
  
  ### Commercial or business purposes
  
  (5) For the purposes of paragraph (1)(c), the expression “commercial or business purposes” shall have such meaning as the Governor in Council may determine by regulation. 
  
  ### To whom payment made
  
  (6) Where a person has purchased gasoline or aviation gasoline in respect of which tax under Part III has been paid and has recovered the cost of that gasoline or aviation gasoline, or any part thereof, from, in the case of gasoline, a person described in any of paragraphs (1)(a) to (g.3) or, in the case of aviation gasoline, a person described in any of paragraphs (2)(a) to (c), for the purpose of paying an amount pursuant to subsection (1) or (2), the Governor in Council may, by regulation, determine 
  (a) the manner in which the amount shall be calculated; and 
  (b) who, between the person who purchased the gasoline or aviation gasoline and the person from whom all or any part of the cost has been recovered, shall be deemed to be the purchaser of that gasoline or aviation gasoline. 
  68.161  [Repealed, 2001, c. 16, s. 27]   [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 1994, c. 29, s. 7; 1997, c. 26, s. 67; 2001, c. 16, s. 27  
   68.162   [Repealed, 2001, c. 16, s. 27]  
   68.163   [Repealed, 2001, c. 16, s. 27]  
   68.164   [Repealed, 2001, c. 16, s. 27]  
   68.165   [Repealed, 2001, c. 16, s. 27]  
   68.166   [Repealed, 2001, c. 16, s. 27]  
   68.167   [Repealed, 2001, c. 16, s. 27]  
   68.168   [Repealed, 2001, c. 16, s. 27]  
   68.169   [Repealed, 2001, c. 16, s. 27]  
  
  ### Payment where use as ships’ stores
  
  68.17 If tax under Part III has been paid in respect of any goods and a manufacturer, producer, wholesaler, jobber or other dealer has sold the goods for use as ships’ stores, an amount equal to the amount of that tax shall, subject to this Part, be paid to that dealer if that dealer applies for it within two years after that sale of the goods. 
  68.171  [Repealed, 2002, c. 22, s. 378]  
  68.172  [Repealed, 2002, c. 22, s. 378]  
  
  ### Payment where goods in inventory
  
  68.18 (1) If tax under Part III has been paid in respect of any goods and a person holds the goods in an unused condition in inventory on the day a licence is granted to that person under section 54 or 64 and could thereafter have obtained the goods exempt from tax under subsection 23(7), an amount equal to the amount of that tax shall, subject to this Part, be paid to that person if that person applies for it within two years after the licence was granted. 
  
  ### Payment where goods in inventory
  
  (2) If tax under Part III has been paid in respect of any goods and a person holds the goods in an unused condition in inventory on the day a licence is granted to that person under section 55 and could thereafter have obtained the goods exempt from tax under subsection 23(6), (7) or (8), an amount equal to the lesser of the amount of that tax and the amount of tax under Part III that would be payable if the goods were acquired in a taxable transaction by that person on that day shall, subject to this Part, be paid to that person if that person applies for it within two years after the licence was granted. 
  
  ### Exception
  
  (3) No amount equal to the amount of tax under Part III shall be paid under subsection (2) to a person in respect of any goods that are not subject to tax under that Part on the day a licence is granted to that person under section 55. 
  (3.1)  [Repealed, 2002, c. 22, s. 379]  
  
  ### Unused condition
  
  (4) For the purposes of this section, goods are in an unused condition if they are new or have not been used in Canada. 
  
  ### Payment where use by province
  
  68.19 (1) If tax under Part III has been paid in respect of any goods and Her Majesty in right of a province has purchased or imported the goods for any purpose other than 
  (a) resale, 
  (b) use by any board, commission, railway, public utility, university, manufactory, company or agency owned, controlled or operated by the government of the province or under the authority of the legislature or the lieutenant governor in council of the province, or 
  (c) use by Her Majesty in that right, or by any agents or servants of Her Majesty in that right, in connection with the manufacture or production of goods or use for other commercial or mercantile purposes, an amount equal to the amount of that tax shall, subject to this Part, be paid either to Her Majesty in that right or to the importer, transferee, manufacturer, producer, wholesaler, jobber or other dealer, as the case may require, if Her Majesty or the dealer applies therefor within two years after Her Majesty purchased or imported the goods. 
  
  ### Exception
  
  (2) No amount shall be paid pursuant to subsection (1) to an importer, transferee, manufacturer, producer, wholesaler, jobber or other dealer who supplies goods to Her Majesty in right of a province in respect of which there is in force at the time the goods are supplied a reciprocal taxation agreement referred to in section 32 of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act.  
  
  ### Payment where subsequent exempt sale
  
  68.2 (1) Where tax under Part III or VI has been paid in respect of any goods and subsequently the goods are sold to a purchaser in circumstances that, by virtue of the nature of that purchaser or the use to which the goods are to be put or by virtue of both such nature and use, would have rendered the sale to that purchaser exempt or relieved from that tax under subsection 23(6), paragraph 23(8)(b) or subsection 50(5) or 51(1) had the goods been manufactured in Canada and sold to the purchaser by the manufacturer or producer thereof, an amount equal to the amount of that tax shall, subject to this Part, be paid to the person who sold the goods to that purchaser if the person who sold the goods applies therefor within two years after he sold the goods. 
  
  ### Application of anti-avoidance rule
  
  (2) Section 274 applies, with such modifications as the circumstances require, to any transaction 
  (a) that is a sale of goods that would give rise to the application of, or that is the basis of an application under, subsection (1), and 
  (b) that takes place after December 17, 1990 and before 1991, and for that purpose, every reference in that section to “an assessment, a reassessment or an additional assessment” shall be read as a reference to “an assessment, a reassessment, an additional assessment, a determination or a redetermination”. 
  
  ### Definitions
  
  68.21 (1) In this section,  
  *arm’s length sale* means a sale of goods by a licensed manufacturer to a person with whom the manufacturer is dealing at arm’s length at the time of the sale; (vente sans lien de dépendance)   
  *fiscal period* means a fiscal period as determined for the purposes of the Income Tax Act. (exercice)  
  
  ### Payment where bad debt
  
  (2) Where ad valorem tax under Part III or VI has been paid by a licensed manufacturer in respect of an arm’s length sale occurring on or after February 16, 1984 and the manufacturer has established, in accordance with generally accepted accounting practices, that any debt owing to him in respect of the sale has become in whole or in part a bad debt and has accordingly written off the debt as a bad debt in his books of account, an amount equal to the proportion of the amount of that tax that the amount of the debt written off is of the price for which the goods were sold shall, subject to this Part, be paid to that manufacturer if he applies therefor in the two years after the end of his fiscal period during which the debt was so written off.  
  
  ### Recovery of payment
  
  (3) Where a licensed manufacturer recovers all or any part of a debt in respect of which an amount is paid to him pursuant to subsection (2), in this subsection referred to as the “refunded amount”, that manufacturer shall forthwith pay to Her Majesty an amount equal to the proportion of the refunded amount that the amount of the debt so recovered is of the amount of the debt written off in respect of which the refunded amount was paid. 
  
  ### Payment where warranty
  
  68.22 Where tax under Part III or VI has been paid in respect of any goods that a licensed manufacturer gives away as free replacement parts under a written warranty given in respect of the goods into which the parts are to be incorporated and the amount, if any, charged for the warranty is included in the sale price charged by the licensed manufacturer for the goods into which the parts are to be incorporated or, if those goods are imported goods, in the duty paid value thereof, an amount equal to the amount of that tax shall, subject to this Part, be paid to that manufacturer if he applies therefor within two years after he gave away the goods. 
  
  ### Definition of 
  *system goods* 
  
  68.23 (1) In this section, 
  *system goods* means  
  (a) goods purchased for use directly in a water distribution, sewerage or drainage system, and 
  (b) goods used in the construction of a building, or that part of a building, used exclusively to house machinery and apparatus for use directly in a water distribution, sewerage or drainage system, but does not include chemicals purchased for use or used in the treatment of water or sewage in any such system. 
  
  ### Payment where use in certain systems
  
  (2) Where tax under Part VI has been paid in respect of any system goods and the purchaser of the goods has, within three years after the completion of the system for which the goods were purchased or in which the goods were used, as the case may be, transferred the system without charge to a municipality pursuant to a by-law of or an agreement with that municipality, an amount equal to the amount of that tax shall, subject to this Part, be paid to that purchaser if he applies therefor within two years after that transfer of the system. 
  
  ### Declaration
  
  (3) For the purposes of subsection (2), the Minister may declare any agency operating a water distribution, sewerage or drainage system for or on behalf of a municipality to be a municipality. 
  
  ### Definitions
  
  68.24 (1) In this section,  
  *certified institution* means a non-profit organization or charity that holds a valid and subsisting certificate issued under subsection (2); (institution titulaire de certificat)   
  *charity* has the meaning assigned by subsection 149.1(1) of the Income Tax Act ; (organisme de bienfaisance)   
  *Minister* means the Minister of National Health and Welfare; (ministre)   
  *non-profit organization* means a club, society or association described in paragraph 149(1)(l) of the Income Tax Act ; (organisation sans but lucratif)   
  *prescribed* means prescribed by the Minister; (Version anglaise seulement)   
  *previously certified institution* means a non-profit organization or charity that holds a valid and subsisting certificate issued under this section, as it read immediately before February 11, 1988; (institution déjà titulaire de certificat)   
  *specified day* means  
  (a) in relation to a certified institution, the later of 
  (i) the day specified in the certificate pursuant to subsection (3), and 
  (ii) the first day of April preceding the day on which the application for the certificate was received by the Minister, and 
  (b) in relation to a previously certified institution, the later of 
  (i) the day specified in the certificate pursuant to this section, as it read immediately before February 11, 1988, and 
  (ii) the first day of April preceding the day on which the application for the certificate was received by the Minister. ( jour spécifié)  
  
  ### Issue of certificate
  
  (2) On application in the prescribed form and manner and containing the prescribed information, the Minister may issue a certificate to the applicant for the purposes of this section, if the Minister is satisfied that the applicant is a non-profit organization or charity 
  (a) whose principal purpose is to provide care, of such type as the Governor in Council may prescribe by regulation on the recommendation of the Minister and the Minister of Finance, 
  (i) to children, or to aged, infirm or incapacitated persons, who are in need of care on a continuous or regular basis, and 
  (ii) on its own premises by means of qualified persons in sufficient numbers in relation to the type of care provided; or 
  (b) whose only purpose is to provide administrative services solely to one or more non-profit organizations or charities having the principal purpose described in paragraph (a) and holding a certificate under this subsection. 
  
  ### Terms of certificate
  
  (3) A certificate under subsection (2) shall be in the prescribed form and 
  (a) shall certify that, as of a day specified in the certificate, the non-profit organization or charity to which it is issued meets the conditions referred to in that subsection; and 
  (b) if the non-profit organization or charity carries on operations at more than one location, shall specify the location for which it is issued. 
  
  ### Revocation of new certificate
  
  (4) Where the Minister believes on reasonable grounds that the holder of a certificate under subsection (2) did not meet the conditions referred to in that subsection at the time it was issued or has since ceased to meet those conditions, the Minister may, by notice sent to the holder, revoke the certificate effective as of any day on or after the day on which the certificate was issued to the holder or the holder ceased to meet those conditions, as the case may be. 
  
  ### Revocation of old certificate
  
  (5) Where the Minister believes on reasonable grounds that the holder of a certificate under this section, as it read immediately before February 11, 1988, does not meet the conditions referred to in subsection (2), the Minister may, by notice sent to the holder, revoke the certificate effective as of any day on or after which the holder did not meet those conditions. 
  
  ### Payment where use by certified or previously certified institutions
  
  (6) Where tax under Part VI has been paid in respect of any goods and a certified institution or previously certified institution has purchased the goods on or after the specified day for the sole use of the institution and not for resale and met the conditions referred to in subsection (2) at the time of the purchase, an amount equal to the amount of that tax shall, subject to this Part, be paid to that institution if it applies therefor within two years after it purchased the goods. 
  
  ### Payment where use by certified or previously certified institutions prior to certification
  
  (7) Where tax under Part VI has been paid in respect of any goods and a non-profit organization or charity to which a certificate was subsequently issued under subsection (2) or this section, as it read immediately before February 11, 1988, or a person acting on behalf of such an organization or charity, has purchased the goods within two years before the specified day for the sole use of the organization or charity and not for resale and the organization or charity was constructing a building for its own use at the time of the purchase, an amount equal to the amount of that tax shall, subject to this Part, be paid to that organization or charity if it applies therefor within two years after the day on which the certificate was issued to the organization or charity. 
  
  ### Exception
  
  (8) Where a certificate under subsection (2) specifies a location for which it is issued or a certificate issued under this section, as it read immediately before February 11, 1988, specifies an address of the holder of the certificate, no amount shall be paid pursuant to subsection (6) or (7) to the certified institution or previously certified institution unless the goods were purchased for the sole use of that institution at that location or address and not for resale. 
  
  ### Payment where use by hospital cleaning establishments
  
  68.25 Where tax under Part VI has been paid in respect of any goods and the goods have been purchased for the sole purpose of constructing, equipping or operating an establishment 
  (a) that is wholly owned, directly or indirectly, by or on behalf of one or more bona fide public hospitals each of which has been certified as such by the Department of Health, and  
  (b) that is established for the sole purpose of providing laundry services, cleaning services or linen supply services to one or more hospitals described in paragraph (a), an amount equal to the amount of that tax shall, subject to this Part, be paid to that establishment if it applies therefor within two years after the goods were purchased. 
  
  ### Payment where use by educational institutions
  
  68.26 Where tax under Part VI has been paid in respect of any materials and the materials have been purchased by or on behalf of 
  (a) a school, university or other similar educational institution for use exclusively in the construction of a building for that institution, 
  (b) any organization for use exclusively in the construction of a building for that organization that is to be used exclusively or mainly as a public library operated by or on behalf of that organization on a non-commercial basis, or 
  (c) a corporation wholly owned and controlled by Her Majesty in right of a province that is established for the sole purpose of providing residences for students of universities or other similar educational institutions, for use exclusively in the construction of those residences, an amount equal to the amount of that tax shall, subject to this Part, be paid to that institution, organization or corporation if it applies therefor within two years after the materials were purchased. 
  
  ### Definition of 
  *incinerator goods* 
  
  68.27 (1) In this section, 
  *incinerator goods* means  
  (a) materials for use exclusively in the construction of, or 
  (b) machinery or apparatus, including equipment to be installed in a chimney or smoke stack, and repair and replacement parts therefor, for use directly and exclusively in the operation of an incinerator owned or to be owned by a municipality and used or to be used primarily for the incineration of waste for the municipality, but does not include motor vehicles, attachments therefor or office equipment. 
  
  ### Payment where use in incinerators
  
  (2) Where tax under Part VI has been paid in respect of any incinerator goods and the goods have been purchased by or on behalf of a municipality for the sole use of the municipality and not for resale, an amount equal to the amount of that tax shall, subject to this Part, be paid to that municipality if it applies therefor within two years after that purchase of the goods. 
  
  ### Definition of 
  *qualified goods* 
  
  68.28 (1) In this section, 
  *qualified goods* means the goods mentioned in Part XIII of Schedule III, but does not include  
  (a) photocopiers or other office type reproduction equipment for use by persons whose principal business is not printing; and 
  (b) for greater certainty, goods that are expressly excluded or not included in that Part. 
  
  ### Payment where use by small manufacturer
  
  (2) Where tax under Part VI has been paid in respect of any qualified goods and the goods have been purchased or imported by a person of a class prescribed pursuant to subsection (3) for the sole use of that person and not for resale, an amount equal to the amount of that tax shall, subject to this Part, be paid to that person if he applies therefor within two years after that purchase or importation of the goods. 
  
  ### Regulations
  
  (3) The Governor in Council may, on the joint recommendation of the Minister of Finance and the Minister of National Revenue, make regulations prescribing any class of small manufacturer or producer for the purposes of this section. 
  
  ### Payment where tourist literature printed
  
  68.29 Where tax under Part VI has been paid in respect of any printed matter that has been produced or purchased in Canada by a board of trade, chamber of commerce, municipal or automobile association or other similar organization, or by or on the order of a government, or a department, agency or representative of a government, and that is made available to the general public without charge for the promotion of tourism, an amount equal to the amount of that tax shall, subject to this Part, be paid to the organization, or to the government, department, agency or representative, if it applies therefor within two years after the printed matter was so produced or purchased. 
  
  ### Payment where motor fuel purchased by diplomats
  
  68.3 (1) Where taxes under Parts III and VI have been paid in respect of gasoline or diesel fuel purchased by a diplomat for his personal or official use, an amount equal to the amount of the taxes shall, subject to this Part, be paid to the diplomat if the diplomat applies therefor within two years after the purchase of the gasoline or diesel fuel. 
  
  ### Designation order
  
  (2) The Governor in Council, on the recommendation of the Minister of Foreign Affairs certifying that Canadian diplomats posted in a foreign country are granted relief from tax on gasoline or diesel fuel, may, by order, designate the foreign country for the purposes of this section. 
  
  ### Definition of 
  *diplomat* 
  
  (3) In this section, 
  *diplomat* means a person referred to in section 2 of Part II of Schedule III who represents a country designated by an order made under subsection (2).  
  
  ### Definitions
  
  68.4 (1) In this section,  
  *air carrier* in a calendar year, means a person who is a carrier in the year and whose gross revenue for the year is derived primarily from the business of providing eligible air transportation services; (transporteur aérien)   
  *aviation fuel* does not include aviation gasoline; (carburant aviation)   
  *aviation rebate limit* of a particular air carrier for a calendar year, means  
  (a) where at every time in the year no other air carrier is related to the particular air carrier, $20,000,000, and 
  (b) in any other case, the amount that the particular air carrier and all other persons (in this paragraph referred to as “related air carriers”) each of which is an air carrier in the year and is related to the particular air carrier at any time in the year allocate, in an agreement in prescribed form filed with the Minister with the application described in paragraph (3.1)(b), to the particular air carrier for the year, provided that 
  (i) if the total of the amounts so allocated for the year to the particular air carrier and all related air carriers is greater than $20,000,000, each amount so allocated is deemed to be nil, and 
  (ii) if the particular air carrier and all related air carriers fail to file an agreement under this paragraph for the year, the Minister may allocate an amount to one or more of them for the year, which amount or the total of which amounts shall not exceed $20,000,000, and any amount so allocated by the Minister is deemed to have been so allocated by the particular air carrier and all related air carriers in such an agreement; ( plafond de la remise aux transporteurs aériens)   
  *carrier* in a calendar year means a person whose gross revenue for the year is derived primarily from the business of providing eligible transportation services and who is not exempt for any period in the year from taxation under Part I of the Income Tax Act by reason of section 149 of that Act; (transporteur)   
  *eligible air transportation services* means the carriage by aircraft of passengers or goods or both; (service de transport aérien admissible)   
  *eligible transportation services* means the carriage of passengers or goods or both, by aircraft, boat, bus, truck or train, or a combination thereof; (service de transport admissible)   
  *fuel* means diesel fuel and aviation fuel in respect of which the tax under Part III has been paid and cannot be recovered under any other section of this Act; (combustible)   
  *fuel tax rebate* means an amount payable under subsection (2), (3) or (3.1); (remise de taxe sur le combustible)   
  *gross revenue* for a calendar year of a person means  
  (a) where the person is a taxpayer within the meaning of the Income Tax Act, the gross revenue of the person under that Act for all taxation years of the person ending in the year, and  
  (b) in any other case, the amount that, for the purposes of that Act, would be the gross revenue of the person for all taxation years of the person ending in the year if the person were a corporation; ( revenu brut)   
  *ineligible use* means any use other than the provision of eligible transportation services for commercial purposes or, where a rebate is paid under subsection (3.1), any use other than the provision of eligible air transportation services for commercial purposes, and for greater certainty the sale of fuel is an ineligible use; (fin inadmissible)   
  *taxation year* of a person means  
  (a) where the person is a taxpayer within the meaning of the Income Tax Act, the taxation year of the person for the purposes of that Act, and  
  (b) in any other case, the period that would be the taxation year of the person for the purposes of that Act if the person were a corporation; ( année d’imposition)   
  *trucker* in a calendar year means a person whose gross revenue for the year is derived primarily from the business of providing carriage of goods by truck and who is not exempt for any period in the year from taxation under Part I of the Income Tax Act by reason of section 149 of that Act. (camionneur)  
  
  ### Deemed not related
  
  (1.1) For the purposes of this section, a corporation that is a Canadian-controlled private corporation within the meaning of subsection 125(7) of the Income Tax Act and another corporation to which it would otherwise be related at any time are deemed not to be related to each other at that time where the corporations are not associated with each other at that time within the meaning of subsection 127(1).  
  
  ### Fuel tax rebate for carriers
  
  (2) Where a person who is a carrier in a calendar year 
  (a) has, in the year, purchased in Canada or imported fuel for use by the carrier solely in the provision of eligible transportation services, 
  (b) applies before July 1993 to the Minister in prescribed form containing prescribed information for a fuel tax rebate in respect of that fuel, and 
  (c) has not applied under subsection (3) for a fuel tax rebate in respect of any fuel purchased or imported in the year, a fuel tax rebate equal to three cents for each litre of the fuel shall, subject to this Part, be paid to the carrier. 
  
  ### Alternative rebate for truckers
  
  (3) Where a person who is a trucker in a calendar year 
  (a) has, in the year, purchased in Canada or imported fuel for use by the trucker solely in the provision of eligible transportation services, 
  (b) applies before July 1993 to the Minister in prescribed form containing prescribed information for a fuel tax rebate in respect of that fuel, and 
  (c) has not applied under subsection (2) for a fuel tax rebate in respect of any fuel purchased or imported in the year, a fuel tax rebate equal to the lesser of an amount equal to one and one-half cents for each litre of the fuel and $500 shall be paid to the trucker. 
  
  ### Aviation rebate
  
  (3.1) Where a person who is an air carrier in a calendar year 
  (a) has, in the year, purchased in Canada or imported aviation fuel for use by the person solely in the provision of eligible air transportation services, and 
  (b) applies to the Minister, before the end of the sixth month following the end of the year in prescribed form for a fuel tax rebate in respect of that fuel, the Minister shall, subject to this Part, pay a fuel tax rebate to the person equal to the lesser of four cents for each litre of that fuel and the person’s aviation rebate limit for the year. 
  
  ### Limitation on rebates
  
  (4) No fuel tax rebate shall be paid under this section 
  (a) in respect of fuel used or to be used for an ineligible use; 
  (b) where subsection (2) or (3) applies, in respect of fuel that is purchased or imported by the carrier or trucker, as the case may be, before 1991 or after 1992; 
  (c) where subsection (3.1) applies, in respect of fuel that is purchased or imported by the air carrier before 1996 or after 1999; or 
  (d) to a person who is or has been bankrupt or to the trustee in bankruptcy of the person in respect of any fuel purchased or imported by the person or the trustee before the person is discharged from the bankruptcy. 
  
  ### Idem
  
  (5) Not more than one application for a fuel tax rebate in respect of fuel purchased or imported in a calendar year may be made by any person. 
  
  ### Diverting fuel to ineligible uses
  
  (6) Where a fuel tax rebate is paid to a person under this section in respect of fuel and the person uses the fuel for an ineligible use, the amount of the rebate paid is deemed to be a tax payable under Part III by the person at the time the fuel is so used. 
  
  ### Repayment of rebate
  
  (7) Subject to subsections (8) and (9), a person to whom a fuel tax rebate was paid under subsection (2) or (3.1) may repay to the Receiver General all or part of the rebate. 
  
  ### Time for repayment
  
  (8) A repayment made under subsection (7) in respect of a fuel tax rebate paid to a person in a taxation year of the person shall be made within the 90 day period that begins on any day on which the Minister sends to the person a notice of assessment of tax payable under Part I of the Income Tax Act by the person for the year, a notice of determination under subsection 152(1.1) of that Act in respect of the person for the year or a notification that no tax is payable under that Part by the person for the year.  
  
  ### Application of subsections 79(1) to (1.2)
  
  (9) Where a person repays under subsection (7) all or a part of a fuel tax rebate, subsections 79(1) to (1.2) apply, with such modifications as the circumstances require, as if 
  (a) the repayment were a payment of tax payable under Part III; 
  (b) the person had defaulted in paying the tax within the time prescribed by subsection 78(4); 
  (c) subsection 78(4) had required the tax to be paid on or before 
  (i) in the case of a rebate under subsection (3.1), the later of January 1, 2000 and the last day of the month in which the person received the rebate, and 
  (ii) in any other case, the last day of the month in which the person received the rebate; and 
  (d) the reference in paragraph 79(1)(a) to “a penalty of one-half of one per cent and interest at the prescribed rate” were read as a reference to “a penalty equal to the prescribed rate of interest”. 
  
  ### Definitions
  
  68.5 (1) The definitions in this subsection apply in this section.  
  *eligible ship* means a ship that is a tug, ferry or passenger ship engaged in trade on an inland voyage and that  
  (a) is not proceeding outside Canada other than to 
  (i) a part that lies within the United States of any lake or river a part of which is included in the inland waters of Canada, or 
  (ii) Lake Michigan; and 
  (b) is not engaged in international trade. ( navire admissible)   
  *inland voyage* means a voyage (other than a minor waters voyage)  
  (a) on the inland waters of Canada, together with those parts that lie within the United States of any lake or river included in the inland waters of Canada; or 
  (b) on Lake Michigan. ( voyage en eaux internes)   
  *inland waters of Canada* means all the rivers, lakes and other navigable fresh waters within Canada, and includes the St. Lawrence River as far seaward as a straight line drawn  
  (a) from Cap des Rosiers to West Point Anticosti Island; and 
  (b) from Anticosti Island to the north shore of the St. Lawrence River along the meridian of longitude sixty-three degrees west. ( eaux internes du Canada)   
  *minor waters of Canada* means all inland waters of Canada (other than Lake Ontario, Lake Erie, Lake Huron including Georgian Bay, Lake Superior and the St. Lawrence River east of a line drawn from Father Point to Point Orient) and includes all bays, inlets and harbours of or on those lakes or Georgian Bay. (eaux secondaires du Canada)   
  *minor waters voyage* means a voyage within the minor waters of Canada together with those parts that lie within the United States of any lake or river included in the minor waters of Canada. (voyage en eaux secondaires)   
  *rebate period* means the period  
  (a) that begins on June 1, 2002 and that ends on December 31, 2002; 
  (b) that begins on January 1, 2003 and that ends on December 31, 2003; or 
  (c) that begins on January 1, 2004 and that ends on December 31, 2004. ( période de remise)  
  
  ### Rebate in respect of fuel for eligible ship
  
  (2) If a person purchases or intends to purchase fuel that is, or is to be, used by the person to operate or maintain an eligible ship during a rebate period, subject to this Part, the Minister shall, on application by the person, pay to the person a rebate for the period determined in accordance with subsection (3). 
  
  ### Determination of rebate
  
  (3) The amount of the rebate payable to a person under subsection (2) for a rebate period is equal to 
  (a) if the amount applied for is based on an estimate, acceptable to the Minister and made within any period specified by the Minister, of the quantity of fuel that is, or is to be, purchased after May 2002 by the person and is, or is to be, used by the person to operate or maintain an eligible ship during the rebate period, the total amount of tax under Part III that would be imposed on that fuel; or 
  (b) in any other case, the total amount of tax under Part III imposed on fuel that is purchased by the person after May 2002 and is used by the person to operate or maintain an eligible ship during the rebate period. 
  
  ### One application per period
  
  (4) A person shall not file more than one application (other than an application referred to in paragraph (8)(b)) under this section for any rebate period. 
  
  ### Reconciliation report
  
  (5) If a person is paid a rebate for a rebate period based on an estimate referred to in paragraph (3)(a), the person shall, not later than 60 days after the end of the period, file with the Minister in prescribed manner a reconciliation report in prescribed form that indicates 
  (a) the amount of the rebate paid to the person; and 
  (b) the amount of tax under Part III imposed on the fuel purchased by the person after May 2002 and used by the person to operate or maintain an eligible ship during the rebate period. 
  
  ### Extension for filing
  
  (6) The Minister may at any time, in writing, extend the time required by subsection (5) for filing a reconciliation report. 
  
  ### Effect of extension for filing
  
  (7) If the Minister has, under subsection (6), extended the time required by subsection (5) for filing a reconciliation report 
  (a) the report shall be filed within the time so extended; and 
  (b) any amount of excess rebate that is required to be paid within the time otherwise required by subsection (9) shall be paid within the time so extended. 
  (c)  [Repealed, 2003, c. 15, s. 97]  
  
  ### Additional amount payable to rebate recipient
  
  (8) If a person files a reconciliation report for a rebate period and the amount referred to in paragraph (5)(b) exceeds the amount referred to in paragraph (5)(a) in respect of the period, 
  (a) the Minister shall pay to the person an amount equal to that excess amount; and 
  (b) the filing of the reconciliation report is deemed to be an application to the Minister for payment of that excess amount. 
  
  ### Liability for excess rebate and interest up to due date of reconciliation
  
  (9) If the rebate paid to a person for a rebate period is determined on the basis of an estimate referred to in paragraph (3)(a) and the amount paid exceeds the amount referred to in paragraph (5)(b) in respect of the period, the person shall pay to the Receiver General 
  (a) on or before the day on or before which the reconciliation report for the rebate period is required to be filed, an amount (in this section referred to as the “excess rebate”) equal to that excess amount; and 
  (b) interest at the prescribed rate in respect of the excess rebate for the period beginning on the first day after the day on which the rebate is paid to the person and ending on the earlier of the day on which the excess rebate is paid to the Receiver General and the day on or before which the reconciliation report is required to be filed. 
  
  ### Failure to file a report when required
  
  (9.1) Every person who fails to file a reconciliation report for a period as and when required under this section shall pay a penalty equal to the sum of 
  (a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the period and was not paid before April 1, 2007, and 
  (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from that day to the day on which the report is filed. 
  
  ### Deemed tax liability
  
  (10) The portion of the total of the excess rebate payable by a person in respect of a rebate period, and of the interest payable by the person under paragraph (9)(b), that is outstanding at the end of the day on or before which the reconciliation report for the period is required to be filed is deemed to be an amount of tax payable under this Act that is required to be, and that has not been, paid by the person on or before that day. 
  (11) to (13)  [Repealed, 2003, c. 15, s. 97]  
  
  ### Restriction
  
  (14) The Minister shall not, at a particular time, pay an amount to a person under this section unless the person has 
  (a) filed with the Minister all reconciliation reports for rebate periods ending before that time for which a rebate was paid to the person that was based on an estimate referred to in paragraph (3)(a); and 
  (b) paid all excess rebates in respect of rebate periods ending before that time and any interest that has accrued to that time. 
  
  ### Limitation period
  
  (15) An application may not be made under subsection (2) after December 31, 2006. 
  
  ### Definitions
  
  69 (1) In this section,  
  *in bulk*, in respect of a sale of gasoline or diesel fuel, means  
  (a) in a quantity of five hundred litres or more, where the gasoline or diesel fuel is delivered to the purchaser at a retail outlet of the vendor, and 
  (b) in any quantity, in any other case; ( en vrac)   
  *logging* means the felling, limbing, bucking and marking of trees, construction of logging roads, off-highway transportation of logs to a mill-pond or mill yard, log salvaging and reforestation, but does not include any production activity on logs after transportation to a mill-pond or mill yard; (opérations forestières)   
  *mineral resource* means  
  (a) a base or precious metal deposit, 
  (b) a coal deposit, or 
  (c) a mineral deposit in respect of which 
  (i) the Minister of Natural Resources has certified that the principal mineral extracted is an industrial mineral contained in a non-bedded deposit, 
  (ii) the principal mineral extracted is sylvite, halite or gypsum, or 
  (iii) the principal mineral extracted is silica that is extracted from sandstone or quartzite; ( ressource minérale)   
  *mining* means the extracting of minerals from a mineral resource, the processing of ore, other than iron ore, from a mineral resource to the prime metal stage or its equivalent, the processing of iron ore from a mineral resource to the pellet stage or its equivalent and the restoration of strip-mined land to a usable condition, but does not include activities related to the exploration for or development of a mineral resource; (opérations minières)   
  *qualified*, in respect of a farmer, fisherman, hunter, trapper or other person, means a farmer, fisherman, hunter, trapper or person who holds a sales tax bulk permit issued under regulations made pursuant to subsection (10); (admissible)   
  *registered vendor* means a person who is registered under regulations made pursuant to subsection (10). (vendeur enregistré)  
  
  ### Fuel tax rebate to vendor
  
  (2) Where gasoline or diesel fuel has been sold by a licensed manufacturer or licensed wholesaler to 
  (a)  [Repealed, R.S., 1985, c. 42 (2nd Supp.), s. 9]  
  (b) a qualified fisherman for commercial fishing, 
  (c) a qualified hunter for commercial hunting, 
  (d) a qualified trapper for commercial trapping, 
  (e) a qualified person for use in logging, or 
  (f) a qualified person for use in mining, for the sole use of the purchaser and not for resale and the taxes imposed by Parts III and VI are payable in respect of the sale, the manufacturer or wholesaler may, in such circumstances and on such terms and conditions as the Minister may prescribe, deduct, within two years after the sale, a fuel tax rebate in an amount calculated in accordance with subsections (8) and (8.01) from the amount of any payment of any tax, penalty, interest or other sum that the manufacturer or wholesaler is liable or is about to become liable to make under those Parts or under this Part in respect of taxes under those Parts. 
  
  ### Fuel tax rebate to vendor selling to farmer
  
  (2.1) Where gasoline or diesel fuel has been sold by a licensed manufacturer or licensed wholesaler to a qualified farmer for farming purposes, for the sole use of the qualified farmer and not for resale and the tax imposed by Parts III and VI is payable in respect of the sale, the manufacturer or wholesaler may, in such circumstances and on such terms and conditions as the Minister may prescribe, deduct, within two years after the sale, a fuel tax rebate in an amount calculated in accordance with subsections (8.1) and (8.2) from the amount of any payment of any tax, penalty, interest or other sum that the manufacturer or wholesaler is liable or is about to become liable to make under those Parts or under this Part in respect of tax under those Parts. 
  
  ### Condition
  
  (3) No deduction shall be made by a licensed manufacturer or licensed wholesaler under subsection (2) or (2.1) unless the manufacturer or wholesaler has reduced the amount charged for the gasoline or diesel fuel to the purchaser by an amount equal to the amount of the deduction and the amount of the reduction is shown separately on an invoice for the sale given to the purchaser by the manufacturer or wholesaler. 
  
  ### Fuel tax rebate to registered vendor
  
  (4) Where gasoline or diesel fuel has been sold in bulk by a registered vendor to 
  (a)  [Repealed, R.S., 1985, c. 42 (2nd Supp.), s. 9]  
  (b) a qualified fisherman for commercial fishing, 
  (c) a qualified hunter for commercial hunting, 
  (d) a qualified trapper for commercial trapping, 
  (e) a qualified person for use in logging, or 
  (f) a qualified person for use in mining, for the sole use of the purchaser and not for resale and the taxes imposed by Parts III and VI have been paid or are payable in respect of the gasoline or fuel, a fuel tax rebate in an amount calculated in accordance with subsections (8) and (8.01) shall, subject to this Part, be paid to that registered vendor if he applies therefor within two years after he sold the gasoline or fuel. 
  
  ### Fuel tax rebate to registered vendor selling to farmer
  
  (4.1) Where gasoline or diesel fuel has been sold in bulk by a registered vendor to a qualified farmer for farming purposes, for the sole use of the qualified farmer and not for resale and the tax imposed by Parts III and VI has been paid or is payable in respect of the gasoline or fuel, a fuel tax rebate in an amount calculated in accordance with subsections (8.1) and (8.2) shall, subject to this Part, be paid to that registered vendor if he applies therefor within two years after the sale of the gasoline or fuel. 
  
  ### Condition
  
  (5) No fuel tax rebate shall be paid to a registered vendor under subsection (4) or (4.1) unless the registered vendor has reduced the amount charged for the gasoline or diesel fuel to the purchaser by an amount equal to the amount of the fuel tax rebate applied for and the amount of the reduction is shown separately on an invoice for the sale given to the purchaser by the registered vendor. 
  
  ### Fuel tax rebate to purchaser or importer
  
  (6) Where gasoline or diesel fuel has been sold to or imported by 
  (a)  [Repealed, R.S., 1985, c. 42 (2nd Supp.), s. 9]  
  (b) a fisherman for commercial fishing, 
  (c) a hunter for commercial hunting, 
  (d) a trapper for commercial trapping, 
  (e) a person for use in logging, or 
  (f) a person for use in mining, for the sole use of the purchaser or importer and not for resale and the taxes imposed by Parts III and VI have been paid or are payable in respect of the gasoline or fuel and, in the case of a sale, the amount charged therefor has not been reduced in accordance with subsection (3) or (5), a fuel tax rebate in an amount calculated in accordance with subsections (8) and (8.01) shall, subject to this Part, be paid to that purchaser or importer if he applies therefor within two years after he purchased or imported the gasoline or fuel. 
  
  ### Fuel tax rebate to farmer
  
  (6.1) Where gasoline or diesel fuel has been sold to or imported by a farmer for farming purposes, for the sole use of the farmer for farming purposes and not for resale and the tax imposed by Parts III and VI has been paid or is payable in respect of the gasoline or fuel and, in the case of a sale, the amount charged therefor has not been reduced in accordance with subsection (3) or (5), a fuel tax rebate in an amount calculated in accordance with subsections (8.1) and (8.2) shall, subject to this Part, be paid to that farmer if he applies therefor within two years after the purchase or importation of the gasoline or fuel. 
  
  ### Limitation
  
  (7) Subsections (2), (2.1), (4), (4.1), (6) and (6.1) do not apply in respect of gasoline or diesel fuel 
  (a) that is to be used to propel a vehicle on a public highway; 
  (b) that is to be used other than for a commercial purpose; or 
  (c) that is sold or imported 
  (i) on or after January 1, 1990, in respect of the tax imposed by Part III, or 
  (ii) on or after January 1, 1991, in respect of the tax imposed by Part VI. 
  
  ### Amount of fuel tax rebate: Part VI
  
  (8) For the purposes of subsections (2), (4) and (6), the amount of the fuel tax rebate in respect of the tax imposed by Part VI shall be calculated at such rate, not exceeding five cents, per litre of gasoline or diesel fuel sold or imported as the Governor in Council may, on the recommendation of the Minister of Finance, prescribe by order or, if no rate is so prescribed, at the rate of three cents per litre of gasoline or diesel fuel sold or imported. 
  
  ### Amount of fuel tax rebate: Part III
  
  (8.01) For the purposes of subsections (2), (4) and (6), the amount of the fuel tax rebate in respect of the tax imposed by Part III shall be calculated 
  (a) in the case of gasoline, at the rate of 
  (i) one cent per litre, where the gasoline was sold or imported on or after January 1, 1988 and before April 1, 1988, and 
  (ii) two cents per litre, where the gasoline was sold or imported on or after April 1, 1988 and before January 1, 1990; and 
  (b) in the case of diesel fuel, at the rate of one cent per litre, where the diesel fuel was sold or imported on or after January 1, 1988 and before January 1, 1990. 
  
  ### Farmers’ rate: Part VI
  
  (8.1) For the purposes of subsections (2.1), (4.1) and (6.1), the amount of the fuel tax rebate in respect of the tax imposed by Part VI shall be calculated at such rate, not exceeding five cents, per litre of gasoline or diesel fuel sold or imported as the Governor in Council may, on the recommendation of the Minister of Finance, prescribe by order or, if no rate is so prescribed, at the rate of three and one-half cents per litre of gasoline or diesel fuel sold or imported. 
  
  ### Farmers’ rate: Part III
  
  (8.2) For the purposes of subsections (2.1), (4.1) and (6.1), the amount of the fuel tax rebate in respect of the tax imposed by Part III shall be calculated 
  (a) in the case of gasoline, at the rate of 
  (i) three cents per litre, where the gasoline was sold or imported on or after January 1, 1987 and before January 1, 1988, 
  (ii) four cents per litre, where the gasoline was sold or imported on or after January 1, 1988 and before April 1, 1988, and 
  (iii) five cents per litre, where the gasoline was sold or imported on or after April 1, 1988 and before January 1, 1990; and 
  (b) in the case of diesel fuel, at the rate of 
  (i) three cents per litre, where the diesel fuel was sold or imported on or after January 1, 1987 and before January 1, 1988, and 
  (ii) four cents per litre, where the diesel fuel was sold or imported on or after January 1, 1988 and before January 1, 1990. 
  
  ### Diversion
  
  (9) Where the amount charged for gasoline or diesel fuel to a purchaser is reduced in accordance with subsection (3) or (5) or a payment is made under subsection (6) or (6.1) to a purchaser or importer of gasoline or diesel fuel and that person sells the gasoline or fuel or uses it for a purpose for which the reduction or payment could not, at the time of the purchase or importation, have been made, the amount of the reduction or payment shall be deemed to be a tax under this Act payable by that person, 
  (a) where that person sells the gasoline or fuel, at the time of delivery thereof to the purchaser from him; and 
  (b) where that person uses the gasoline or fuel, at the time of the use. 
  
  ### Regulations
  
  (10) The Governor in Council may make regulations 
  (a) authorizing the issue of sales tax bulk permits to farmers, fishermen, hunters, trappers or other persons who use gasoline or diesel fuel for a purpose described in subsection (2) or (2.1) and prescribing the terms and conditions of the permits; 
  (b) prescribing the records to be maintained and returns to be filed by farmers, fishermen, hunters, trappers or other persons holding sales tax bulk permits; 
  (c) prescribing the times at which returns referred to in paragraph (b) are to be filed; 
  (d) authorizing the cancellation of any sales tax bulk permit where any term or condition of that permit is not complied with or where any provision of this Act or the regulations applicable to the person holding the permit is not complied with; and 
  (e) providing for a system of registration by the Minister of persons who regularly sell in bulk gasoline or diesel fuel to qualified farmers, qualified fishermen, qualified hunters, qualified trappers or qualified persons engaged in logging or mining, including, without limiting the generality of the foregoing, 
  (i) the form and manner of applying for, and the procedure for granting, registration, 
  (ii) the terms and conditions on which registration may be granted, and 
  (iii) the authorization of the Minister to cancel any registration where any term or condition of the registration is not complied with or where any provision of this Act or the regulations applicable to the registered vendor is not complied with. 
  
  ### Drawback on certain goods
  
  70 (1) On application, the Minister may, under regulations of the Governor in Council, grant a drawback of the tax imposed under Part III and paid on or in respect of 
  (a) goods exported from Canada; 
  (b) goods supplied as ships’ stores; 
  (c) goods used for the equipment, repair or reconstruction of ships or aircraft; or 
  (d) goods delivered to telegraph cable ships proceeding on an ocean voyage for use in laying or repairing oceanic telegraph cables outside Canadian waters. 
  
  ### Specific sum
  
  (2) The Minister may, under regulations of the Governor in Council, pay a specific sum in lieu of a drawback under subsection (1) in any case where a specific sum in lieu of a drawback of duties is granted under section 117 of the Customs Tariff.  
  
  ### Drawback on imported goods
  
  (2.1) On application, the Minister of Public Safety and Emergency Preparedness may, under section 113 of the Customs Tariff, grant a drawback of the tax imposed under Part III and paid on or in respect of goods imported into Canada.  
  
  ### Application for drawback
  
  (3) An application for a drawback under subsection (1) shall be made in the prescribed form and contain the prescribed information and shall be filed with the Minister within such time and in such manner as the Governor in Council may, by regulation, prescribe. 
  
  ### Evidence
  
  (4) No drawback shall be granted under subsection (1) unless the person applying for the drawback provides such evidence in support of the application as the Minister may require. 
  (5)  [Repealed, 2002, c. 22, s. 381]  
  
  ### Definitions
  
  70.1 (1) In this section,  
  *adjustment* to the sale price of goods means the giving of a discount, allowance, rebate or other amount as a reduction in the sale price; (redressement)   
  *other enactment* means  
  (a) a provision of an Act of Parliament, other than this Act, enacted before 1991, or 
  (b) a provision of a regulation or order enacted under an Act of Parliament before 1991; ( autre texte)   
  *refund* of tax means  
  (a) a refund of that tax, or other payment calculated with reference to that tax, provided for under any of sections 68, 68.1, 68.17, 68.19, 68.2 or 68.23 to 68.3, 
  (b) a drawback of that tax, or payment in lieu of a drawback of that tax, provided for under section 70, or 
  (c) a refund, rebate, drawback or remission of that tax, or other payment in respect of or calculated with reference to that tax, provided for under any other enactment; ( remboursement)   
  *registrant* has the meaning assigned by subsection 123(1); (inscrit)   
  *tax* means tax imposed under Part VI. (taxe)  
  
  ### Adjustments after 1990
  
  (2) A refund of tax shall not be paid to a person (in this subsection referred to as the “vendor”) in respect of an adjustment made after 1990 to the sale price of goods sold by the vendor to a purchaser unless 
  (a) the vendor sold the goods to the purchaser under an agreement in writing, paid tax in respect of the sale of the goods, calculated on the sale price, and granted the adjustment within two years after the day on or before which the vendor was required to pay the tax under section 78; and 
  (b) the adjustment is provided for in the agreement and the making of the adjustment is not dependent on the performance of any service or other act by the purchaser. 
  
  ### Exports after 1990
  
  (3) A refund of tax provided for under section 68.1 or 70 or any other enactment in respect of goods exported from Canada shall not be paid to a person in respect of goods exported by the person after 1990 unless 
  (a) the person had possession of the goods in Canada at the end of 1990 and was not a registrant on January 1, 1991; or 
  (b) the person imported the goods, had possession of the goods in Canada at the end of 1990 and was not entitled to be paid a rebate in respect of the goods under section 120, and the goods suffered damage or deterioration at any time before the goods were released, were of inferior quality to those in respect of which the person paid tax, were defective or were not the goods ordered by the person. 
  
  ### Goods sold after 1990
  
  (4) A refund of tax provided for under section 68.17, 68.2 or 70 or any other enactment in respect of goods sold or otherwise supplied or transferred by a person to a purchaser or other transferee shall not be paid to the person unless the person transferred ownership or possession of the goods to the purchaser or other transferee of the goods before 1991. 
  
  ### Goods for use by a province
  
  (5) A refund of tax shall not be paid under section 68.19 in respect of goods supplied, transferred or delivered to, or purchased by, Her Majesty in right of a province unless 
  (a) Her Majesty in that right acquired ownership or possession of the goods before 1991; or 
  (b) the goods were supplied or transferred to Her Majesty in that right by a person in the course of performing services under an agreement in writing with Her Majesty in that right and the person had possession of the goods in Canada at the end of 1990 and was not entitled to be paid a rebate in respect of the goods under section 120. 
  
  ### System goods acquired after 1990
  
  (6) A refund of tax shall not be paid under section 68.23 to a person in respect of system goods unless the person acquired ownership or possession of the goods before 1991 and was not entitled to be paid a rebate in respect of the goods under section 120. 
  
  ### Goods acquired by certain organizations after 1990
  
  (7) A refund of tax shall not be paid under any of sections 68.24 to 68.27 to a person (in this subsection referred to as the “organization”) unless 
  (a) in the case of goods purchased by the organization, the organization acquired ownership or possession of the goods before 1991; or 
  (b) in the case of goods acquired or used by another person for a purpose for which a refund of tax to the organization is provided for under that section, the other person acquired ownership or possession of the goods before 1991 and was not entitled to be paid a rebate in respect of the goods under section 120. 
  
  ### Other goods acquired after 1990
  
  (8) A refund of tax in respect of goods purchased or otherwise acquired by a person shall not be paid under any of sections 68.28 to 68.3 or 70 or any other enactment to the person unless the person acquired ownership or possession of the goods before 1991. 
  
  ### Statutory recovery rights only
  
  71 Except as provided in this or any other Act of Parliament, no person has a right of action against Her Majesty for the recovery of any moneys paid to Her Majesty that are taken into account by Her Majesty as taxes, penalties, interest or other sums under this Act. 
  
  ### Definition of 
  *application* 
  
  72 (1) In this section, 
  *application* means an application under any of sections 68 to 69.  
  
  ### Form and contents of application
  
  (2) An application shall be made in the prescribed form and contain the prescribed information. 
  
  ### Filing of application
  
  (3) An application shall be filed with the Minister in any manner that the Governor in Council may, by regulation, prescribe. 
  
  ### Determination
  
  (4) On receipt of an application, the Minister shall, with all due dispatch, consider the application and determine the amount, if any, payable to the applicant. 
  
  ### Minister not bound
  
  (5) In considering an application, the Minister is not bound by any application or information supplied by or on behalf of any person. 
  
  ### Notice and payment
  
  (6) After considering an application, the Minister shall 
  (a) send to the applicant a notice of determination in the prescribed form setting out 
  (i) the date of the determination, 
  (ii) the amount, if any, payable to the applicant, 
  (iii) a brief explanation of the determination, where the Minister rejects the application in whole or in part, and 
  (iv) the period within which an objection to the determination may be made under section 81.17; and 
  (b) pay to the applicant the amount, if any, payable to him. 
  
  ### Interest on payment
  
  (7) If an amount is paid to an applicant under subsection (6), the Minister shall pay interest at the prescribed rate to the applicant on the amount for the period beginning on the day that is 30 days after the day on which the application was received by the Minister and ending on the day on which the amount is paid. 
  (8)  [Repealed, 2003, c. 15, s. 98]  
  
  ### Determination valid and binding
  
  (9) A determination under subsection (4), including a determination varied under section 81.17, subject to being varied or vacated on an objection or appeal under this Part and subject to an assessment, shall be deemed to be valid and binding notwithstanding any irregularity, informality, error, defect or omission therein or in any proceeding under this Act relating thereto. 
  
  ### Irregularities
  
  (10) No determination under subsection (4) shall be varied or vacated on an appeal by reason only of an irregularity, informality, error, defect or omission by any person in the observance of any directory provision of this Act. 
  
  ### Deductions of tax, other than Part I tax, where no application
  
  73 (1) Any person authorized pursuant to subsection (4) who files a return under section 20, 21.32 or 78 and to whom an amount would be payable under any of sections 68 to 68.153 or 68.17 to 69 if that person duly applied therefor on the day on which he files the return, in lieu of applying for that amount, may in that return report that amount and deduct it or any part thereof from the amount of any payment or remittance of tax, penalty, interest or other sum that is reported in that return. 
  
  ### Deductions of Part I tax
  
  (2) Any person who makes a return under subsection 5(1) and to whom an amount would be payable under section 68 if the person duly applied therefor on the day on which that return is made, in lieu of applying for that amount, may in that return report that amount and deduct it or any part thereof from the amount of any payment of tax, penalty, interest or other sum that is reported in that return. 
  
  ### Subsequent deductions
  
  (3) Where a person reports an amount in accordance with subsection (1) or (2) and does not deduct the whole amount in the return in which it is reported, the person may, in any subsequent return, report the amount not previously deducted under this section and deduct it or any part thereof from the amount of any payment or remittance of tax, penalty, interest or other sum that is reported in that subsequent return. 
  
  ### Authorizations and terms
  
  (4) The Minister may, in writing, 
  (a) authorize a specified person, a person of a specified class of persons or persons generally to make deductions under subsections (1) and (3) either generally or with respect to any transaction of a specified class of transactions; 
  (b) amend an authorization made pursuant to paragraph (a) or suspend or revoke any such authorization either generally or with respect to a specified person or a person of a specified class of persons; and 
  (c) specify the terms and conditions on which, and the manner in which, deductions may be made under subsection (1), (2) or (3). 
  
  ### Presumption
  
  (5) Where a person deducts an amount under this section, 
  (a) the person is deemed to have paid, on the day he filed or made the return in which the amount was deducted, an amount equal to that amount on account of his tax, penalty, interest or other sum payable under this Act in respect of the period for which the return was filed or made; and 
  (b) the Minister is deemed to have paid, on that day, an amount equal to that amount to that person in accordance with section 72. 
  73.1  [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 34]  
  
  ### Deductions of tax, other than Part I tax, where application
  
  74 (1) In lieu of making a payment, other than a payment in respect of Part I, pursuant to an application under any of sections 68 to 68.11 or 68.17 to 69, the Minister may, on request of the applicant, authorize the applicant to deduct, on such terms and conditions and in such manner as the Minister may specify, the amount that would otherwise be paid to the applicant from the amount of any payment or remittance of tax, penalty, interest or other sum that is reported in a return under section 78 by the applicant. 
  
  ### Notification of applicant
  
  (2) Where the Minister authorizes an applicant to make a deduction under subsection (1), the Minister shall notify the applicant to that effect in the notice of determination sent to the applicant. 
  
  ### Interest on deduction
  
  (3) If a deduction is authorized under subsection (1), interest shall be authorized at the prescribed rate as a deduction in accordance with that subsection for the period beginning on the day that is 30 days after the day on which the application for the payment in respect of which the deduction was authorized was received by the Minister and ending on the day on which the notice of determination was sent. 
  (4)  [Repealed, 2003, c. 15, s. 99]  
  
  ### Presumption
  
  (5) Where an applicant deducts an amount under this section, 
  (a) the applicant is deemed to have paid, on the day he filed the return in which the amount was deducted, an amount equal to that amount on account of his tax, penalty, interest or other sum payable under this Act in respect of the period for which the return was filed; and 
  (b) the Minister is deemed to have paid, on the day the notice of determination is sent to the applicant, an amount equal to that amount to the applicant in accordance with section 72. 
  
  ### Recovery of deduction from licensee
  
  75 (1) Where a licensee makes a deduction under section 73 or 74 in lieu of receiving a payment pursuant to section 68.15, subsection 68.15(3) applies, with such modifications as the circumstances require, with respect to the amount of the deduction as if it were a refunded amount within the meaning of that subsection. 
  
  ### Recovery of deduction from licensed manufacturer
  
  (2) Where a licensed manufacturer makes a deduction under section 73 or 74 in lieu of receiving a payment pursuant to section 68.21, subsection 68.21(3) applies, with such modifications as the circumstances require, with respect to the amount of the deduction as if it were a refunded amount within the meaning of that subsection. 
  75.1  [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 34]   [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 15 (1st Supp.), s. 25, c. 7 (2nd Supp.), ss. 31, 34  
   75.2   [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 34]  
  
  ### Calculation of payment or deduction
  
  76 Where circumstances render it difficult to determine the exact amount of any payment that may be made pursuant to any of sections 68 to 68.29 or any deduction that may be made under section 73 or 74, the Minister, with the consent of the person to whom the payment or by whom the deduction may be made, may in lieu of that amount make a payment pursuant to, or authorize a deduction under, that section in an amount determined, in such manner as the Governor in Council may by regulation prescribe, to be the exact amount of the payment or deduction. 
  
  ### Restriction on refunds and credits
  
  77 A refund shall not be paid, and a credit shall not be allowed, to a person under this Act until the person has filed with the Minister all returns and other records of which the Minister has knowledge that are required to be filed under the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act and the Select Luxury Items Tax Act.  
  
  ## Returns and Payment of Tax 
  
  ### Determination of fiscal months
  
  78 (1) The fiscal months of a person shall be determined in accordance with the following rules: 
  (a) if fiscal months of the person have been determined under subsection 243(2) or (4) for the purposes of Part IX, each of those fiscal months is a fiscal month of the person for the purposes of this Act; 
  (b) if fiscal months of the person have not been determined under subsection 243(2) or (4) for the purposes of Part IX, the person may select for the purposes of this Act fiscal months that meet the requirements set out in subsection 243(2); and 
  (c) if neither paragraph (a) nor paragraph (b) applies, each calendar month is a fiscal month of the person for the purposes of this Act. 
  
  ### Determination of fiscal half-years
  
  (1.1) The fiscal half-years of a person shall be determined in accordance with the following rules: 
  (a) the period beginning on the first day of the first fiscal month in a fiscal year of the person and ending on the earlier of the last day of the sixth fiscal month and the last day in the fiscal year is a fiscal half-year of the person; and 
  (b) the period, if any, beginning on the first day of the seventh fiscal month and ending on the last day in the fiscal year of the person is a fiscal half-year of the person. 
  
  ### Notification of Minister
  
  (2) Every person who is required to file a return shall notify the Minister of their fiscal months in the prescribed form and manner. 
  
  ### Reporting period — general
  
  78.1 (1) Subject to this section, the reporting period of a person is a fiscal month. 
  
  ### Reporting period — semi-annual
  
  (2) On application in the prescribed form and manner by a person, the Minister may, in writing, authorize the reporting period of that person to be a fiscal half-year in a particular fiscal year if 
  (a) the person has been required to pay tax under Part III, or has been holding a licence granted under or in respect of that Part, for a period exceeding twelve consecutive fiscal months; 
  (b) the total of all taxes payable under Part III by the person and any person associated with the person in the fiscal year ending immediately before the particular fiscal year did not exceed $120,000; 
  (c) the total of all taxes payable under Part III by the person and any person associated with the person in the particular fiscal year does not exceed $120,000; and 
  (d) the person is in compliance with this Act. 
  
  ### Deemed revocation
  
  (3) An authorization under subsection (2) is deemed to be revoked if the total of all taxes payable under Part III by the person and any person associated with the person exceeds $120,000 in a fiscal year, which revocation is effective as of the first day after the end of the fiscal half-year in which the excess occurs. 
  
  ### Revocation — other
  
  (4) The Minister may revoke an authorization if 
  (a) the person requests in writing the Minister to do so; 
  (b) the person fails to comply with this Act; or 
  (c) the Minister considers that the authorization is no longer required. 
  
  ### Notice of revocation
  
  (5) If the Minister revokes an authorization under subsection (4), the Minister shall send a notice in writing of the revocation to the person and shall specify in the notice the fiscal month for which the revocation becomes effective. 
  
  ### Deemed reporting period on revocation
  
  (6) If a revocation under subsection (4) becomes effective before the last day of a fiscal half-year of a person that is authorized under subsection (2), the period beginning on the first day of the fiscal half-year and ending immediately before the first day of the fiscal month for which the revocation becomes effective is deemed to be a reporting period of the person. 
  
  ### Returns and payments
  
  79 (1) Every person who is required to pay tax under Part III and every person who holds a licence granted under or in respect of that Part shall, not later than the last day of the first month after each reporting period of the person, 
  (a) file a return with the Minister, in the prescribed form and manner, for that reporting period; 
  (b) calculate, in the return, the total amount of the tax payable, if any, by the person for that reporting period, and 
  (c) pay that amount to the Receiver General. 
  (2) and (3)  [Repealed, 2010, c. 25, s. 130]  
  
  ### Demand for return
  
  (4) The Minister may, on demand sent by the Minister, require a person to file, within any reasonable time stipulated in the demand, a return under this Act for any period designated in the demand. 
  
  ### Failure to answer a demand
  
  (5) Every person who fails to file a return as and when required under a demand issued under subsection (4) is liable to a penalty of $250. 
  79.01  [Repealed, 2006, c. 4, s. 128]  
  
  ### Amounts owing of $2 or less in total
  
  79.02 (1) If the Minister determines, at any time, that the total of all amounts owing by a person to Her Majesty in right of Canada under this Act does not exceed two dollars, those amounts are deemed to be nil. 
  
  ### Amounts payable of $2 or less in total
  
  (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada. However, if the person, at that time, does not owe any amount to Her Majesty in right of Canada, those amounts payable are deemed to be nil. 
  
  ### Compound interest on amounts not paid when required
  
  79.03 (1) If a person fails to pay an amount to the Receiver General as and when required under this Act, the person shall pay to the Receiver General interest on the amount. The interest shall be compounded daily at the prescribed rate and computed for the period beginning on the first day after the day on which the amount was required to be paid and ending on the day on which the amount is paid. 
  
  ### Payment of interest that is compounded
  
  (2) For the purposes of subsection (1), interest that is compounded on a particular day on an unpaid amount of a person is deemed to be required to be paid by the person to the Receiver General at the end of the particular day, and, if the person has not paid the interest so computed by the end of the day after the particular day, the interest shall be added to the unpaid amount at the end of the particular day. 
  
  ### Period where interest not payable
  
  (3) Despite any other provision of this Act, if the Minister notifies a person that the person is required to pay a specified amount under this Act and the person pays the specified amount in full before the end of the period that the Minister specifies with the notice, interest is not payable on the specified amount for the period. 
  
  ### Interest and penalty amounts of $25 or less
  
  (4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest and penalty under subsection 7(1.1) or 68.5(9.1) or section 95.1 or 95.2, owing at that time to Her Majesty in right of Canada under this Act for a reporting period of the person and the total amount of interest and penalty payable by the person under this Act for that reporting period is not more than $25.00, the Minister may cancel the interest and penalty. 
  
  ### Compound interest on amounts owed by Her Majesty
  
  79.04 Interest shall be compounded daily at the prescribed rate on any amount payable by the Minister to a person. The interest shall be computed for the period beginning on the first day after the day on which the amount is required to be paid and ending on the day on which the amount is paid or is applied against an amount owed by the person to Her Majesty in right of Canada, unless this Act provides otherwise. 
  
  ### Application of interest provisions if Act amended
  
  79.05 For greater certainty, if a provision of an Act amends this Act and provides that the amendment comes into force on, or applies as of, a particular day that is before the day on which the provision is assented to, the provisions of this Act that relate to the calculation and payment of interest apply in respect of the amendment as though the provision had been assented to on the particular day. 
  79.1  [Repealed, 2006, c. 4, s. 131]  
  
  ### Filing of return by mail
  
  79.2 (1) If a person who is required under this Act to file a return with the Minister does so by mailing the return, the return is deemed to have been filed with the Minister on the day on which the return was mailed and the date of the postmark is evidence of that day. 
  
  ### Payment or remittance of amounts
  
  (2) A person who is required under this Act to pay or remit an amount to the Receiver General shall not be considered as having paid or remitted the amount until it is received by the Receiver General. 
  
  ### Report by licence holders
  
  80 (1) Every person holding a licence in respect of Part III shall submit to the Minister each year, within six months after the end of that person’s fiscal year, a report in the prescribed form containing details of that person’s sales, taxes paid under this Act and deductions under subsection 69(2) in the fiscal year and any other prescribed information. 
  
  ### Alternate reporting
  
  (2) Any person filing a return under section 79 may, in lieu of submitting a report under subsection (1), include in the return a report in the prescribed form containing details of the person’s sales, taxes paid under this Act and deductions under subsection 69(2) in the period to which the return relates and any other prescribed information. 
  
  ## Security 
  
  ### Security generally
  
  80.1 (1) The Minister may, if he considers it advisable in a particular case, accept security for the payment of any tax, penalty, interest or other sum that is or may become payable under this Act. 
  
  ### Security on objection or appeal
  
  (2) Where a person is making an objection to or appealing from an assessment, the Minister shall accept adequate security furnished by or on behalf of that person for the payment of any tax, penalty, interest or other sum that is in controversy. 
  
  ### Surrender of security
  
  (3) Where a person who has furnished security, or on whose behalf security has been furnished, under this section requests in writing that the Minister surrender the security or any part thereof, the Minister shall surrender the security to the extent that the value thereof exceeds the amount, at the time the request is received by the Minister, of any tax, penalty, interest or other sum for the payment of which the security was furnished. 
  
  ### Discharge of security
  
  (4) The Minister may discharge in writing any security accepted by the Minister pursuant to this section. 
  
  ## Obligation of Trustees 
  
  ### Certificate before distribution
  
  81 (1) Every executor, liquidator of a succession, administrator, assignee, liquidator or other like person, other than a trustee in bankruptcy, shall, before distributing any assets under his control in that capacity, obtain a certificate from the Minister certifying that no tax, penalty, interest or other sum under this Act, other than Part I, chargeable against or payable by that person in that capacity or chargeable against or payable in respect of those assets, remains unpaid or that security for the payment thereof has, in accordance with section 80.1, been accepted by the Minister. 
  
  ### Personal liability
  
  (2) Any person who distributes assets without a certificate as required by subsection (1) is personally liable to pay to Her Majesty an amount equal to the lesser of 
  (a) the value of the assets so distributed, and 
  (b) the amount of any tax, penalty, interest or other sum that remains unpaid and for the payment of which security has not been furnished to the Minister. 
  
  ## Assessments 
  
  ### Assessment
  
  81.1 (1) The Minister may, in respect of any matter, assess a person for any tax, penalty, interest or other sum payable by that person under this Act and may, notwithstanding any previous assessment covering, in whole or in part, the same matter, make such additional assessments as the circumstances require. 
  
  ### Reassessment
  
  (2) The Minister may, in respect of any matter covered by an assessment, vary the assessment or reassess the person assessed. 
  
  ### Completion of assessment
  
  (3) An assessment shall be completed with all due dispatch and may be performed in such manner and form and by such procedure as the Minister considers appropriate. 
  
  ### Minister not bound
  
  (4) The Minister is not bound by any return, application or information supplied by or on behalf of any person and may make an assessment, notwithstanding any return, application or information so supplied or that no return, application or information has been supplied. 
  
  ### Determination of refunds
  
  (5) In making an assessment, the Minister may determine whether an amount is payable to the person being assessed pursuant to any of sections 68 to 68.29. 
  
  ### Presumption
  
  (6) For the purposes of determining, in making an assessment, whether an amount is payable to the person being assessed pursuant to any of sections 68 to 68.29, the person is deemed to have duly made an application under the section on the day on which the notice of assessment is sent to him. 
  
  ### Determination of credits
  
  (7) In making an assessment, the Minister may determine whether a credit may be allowed to the person being assessed pursuant to subsections (8) to (10). 
  
  ### When credit may be allowed
  
  (8) Where an amount would be payable to the person being assessed pursuant to any of sections 68 to 68.29 
  (a) if that person had duly made an application under the section on the day on which the notice of assessment is sent to him, and 
  (b) if the reference in the section to “two years” were read as a reference to “four years”, a credit in that amount may be allowed to that person. 
  
  ### Maximum credits allowable
  
  (9) The aggregate of the credits that may be allowed to the person being assessed shall not exceed the aggregate of the taxes, interest, penalty or other sums, if any, remaining unpaid by that person for the period beginning four years before the day on which the notice of assessment is sent to him and ending immediately before two years before that day. 
  
  ### Restriction
  
  (10) No credit may be allowed for any amount that the Minister, pursuant to subsection (5), determines is payable to the person being assessed. 
  
  ### Sums not assessable
  
  81.11 (1) No assessment shall be made for any penalty or fine imposed pursuant to a conviction for an offence under this Act. 
  
  ### Limitation period for assessments
  
  (2) Subject to subsections (3) to (5), no assessment shall be made for any tax, penalty, interest or other sum more than four years after the tax, penalty, interest or sum became payable under this Act. 
  
  ### Exception where objection or appeal
  
  (3) A variation of an assessment, or a reassessment, may be made at any time pursuant to subsection 81.15(4) or 81.38(1). 
  
  ### Exception where neglect or fraud
  
  (4) An assessment in respect of any matter may be made at any time where the person to be assessed has, in respect of that matter, 
  (a) made a misrepresentation that is attributable to his neglect, carelessness or wilful default; or 
  (b) committed fraud in filing or making or failing to file or make a return, or in supplying or failing to supply any information, under this Act. 
  
  ### Exception where waiver
  
  (5) An assessment in respect of any matter specified in a waiver filed pursuant to subsection (6) may be made at any time within the period specified in the waiver or, if a notice of revocation of the waiver has been filed pursuant to subsection (7), within the period commencing on the day on which the period specified in the waiver commences and ending six months after the day on which the notice is filed. 
  
  ### Filing waiver
  
  (6) Any person may, within the time otherwise limited by subsection (2) for assessing that person, waive the application of that subsection to him by filing with the Minister a waiver in the prescribed form specifying the period for which, and the matter in respect of which, the person waives the application of that subsection. 
  
  ### Revoking waiver
  
  (7) Any person who has filed a waiver pursuant to subsection (6) may revoke the waiver on six months notice to the Minister by filing with the Minister a notice of revocation of the waiver in the prescribed form. 
  
  ### Liability not affected
  
  81.12 (1) Liability under this Act for any tax, penalty, interest or other sum is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made. 
  
  ### Valid and binding
  
  (2) An assessment, subject to being varied or vacated on an objection or appeal under this Part and subject to a reassessment, shall be deemed to be valid and binding notwithstanding any irregularity, informality, error, defect or omission therein or in any proceeding under this Act relating thereto. 
  
  ### Irregularities
  
  (3) No assessment shall be vacated or varied on an appeal by reason only of an irregularity, informality, error, defect or omission on the part of any person in the observance of any directory provision of this Act. 
  
  ### Notice of assessment
  
  81.13 (1) After completing an assessment, otherwise than pursuant to subsection 81.15(4) or 81.38(1), the Minister shall send to the person assessed a notice of assessment in the prescribed form setting out 
  (a) the date of the assessment; 
  (b) the matter covered by the assessment; 
  (c) the amount owing or overpayment, if any, by the person assessed; 
  (d) a brief explanation of the assessment; and 
  (e) the period within which an objection to the assessment may be made under section 81.15. 
  
  ### Tax payable
  
  (2) Where an assessment establishes that any tax, penalty, interest or other sum payable under this Act remains unpaid by the person assessed, the notice of assessment shall set out separately the taxes, penalties, interest and other sums payable and the aggregate thereof. 
  
  ### Refund payable
  
  (3) Where an assessment establishes that an amount is payable pursuant to any of sections 68 to 68.29 to the person assessed, the notice of assessment shall set out the aggregate of the amounts payable. 
  
  ### Credit allowable
  
  (4) Where an assessment establishes that a credit is allowable pursuant to section 81.1 to the person assessed, the notice of assessment shall set out the aggregate of the credits allowable. 
  
  ### No tax, refund or credit
  
  (5) Where an assessment establishes that 
  (a) no tax, penalty, interest or other sum payable under this Act remains unpaid by the person assessed, 
  (b) no amount is payable pursuant to any of sections 68 to 68.29 to the person assessed, or 
  (c) no credit is allowable pursuant to section 81.1 to the person assessed, in respect of the matter covered by the assessment, the notice of assessment shall contain a statement to that effect. 
  
  ### Amounts not considered
  
  (6) For the purposes of determining the sums, amounts and credits referred to in subsections (2) to (5), where the assessment is a variation of an assessment, or a reassessment, no amount paid by the person assessed or the Minister on account of the amount owing or overpayment as set out in the notice of the original assessment or any subsequent assessment related thereto, and no amount deemed by subsection 81.14(2) to have been paid, shall be taken into consideration. 
  
  ### Definitions
  
  (7) For the purposes of this section and section 81.14,  
  *amount owing*, in respect of a person assessed, means  
  (a) where the assessment is an original assessment, the amount by which 
  (i) the aggregate of all taxes, penalties, interest and other sums remaining unpaid by that person, as set out in the notice of assessment pursuant to subsection (2), exceeds 
  (ii) the aggregate of 
  (A) all amounts payable to that person, as set out in the notice of assessment pursuant to subsection (3), and 
  (B) the credits allowable to that person, as set out in the notice of assessment pursuant to subsection (4), and 
  (b) where the assessment is a variation of an assessment, or a reassessment, the amount by which 
  (i) the amount obtained by subtracting 
  (A) the amount paid by that person on account of the amount owing as set out in the notice of the original assessment or any subsequent assessment related thereto from 
  (B) the aggregate of all taxes, penalties, interest and other sums remaining unpaid by that person, as set out in the notice of the varied assessment or reassessment pursuant to subsection (2), exceeds 
  (ii) the amount obtained by subtracting 
  (A) the amount paid to that person pursuant to subsection 81.14(1) in respect of an overpayment as set out in the notice of the original assessment or any subsequent assessment related thereto from 
  (B) the aggregate of 
  (I) all amounts payable to that person, as set out in the notice of the varied assessment or reassessment pursuant to subsection (3), and 
  (II) the credits allowable to that person, as set out in the notice of the varied assessment or reassessment pursuant to subsection (4); ( montant dû)   
  *overpayment*, in respect of a person assessed, means  
  (a) where the assessment is an original assessment, the amount by which the aggregate described in subparagraph (a)(ii) of the definition 
  *amount owing* in this subsection exceeds the aggregate described in subparagraph (a)(i) of that definition, and  
  (b) where the assessment is a variation of an assessment, or a reassessment, the amount by which the amount described in subparagraph (b)(ii) of that definition exceeds the amount described in subparagraph (b)(i) of that definition. ( paiement en trop)  
  
  ### Payment by Minister on assessment
  
  81.14 (1) Where an assessment establishes that there is an overpayment by the person assessed, the Minister shall pay to that person the amount of the overpayment as set out in the notice of assessment. 
  
  ### Presumption
  
  (2) Where an assessment establishes that an amount is payable pursuant to any of sections 68 to 68.29, or a credit is allowable pursuant to section 81.1, to the person assessed, 
  (a) that person is deemed to have paid, on the day on which the notice of assessment is sent to him, an amount equal to the lesser of 
  (i) where the assessment is an original assessment, the aggregates described in subparagraphs (a)(i) and (ii) of the definition 
  *amount owing* in subsection 81.13(7), and  
  (ii) where the assessment is a variation of an assessment, or a reassessment, the amounts described in subparagraphs (b)(i) and (ii) of that definition on account of the person’s tax, penalty, interest or other sum payable under this Act in respect of the matter covered by the assessment; and 
  (b) the Minister is deemed to have paid, on that day, to the person assessed in accordance with section 72 the amount, if any, by which the amount deemed by paragraph (a) to have been paid exceeds the aggregate of the credits described in clause (a)(ii)(B) or subclause (b)(ii)(B)(II), as the case may be, of that definition. 
  
  ### No deemed double payments
  
  (3) Subsection (2) ceases to apply in respect of an assessment if the assessment is subsequently vacated or varied or a reassessment is made in respect of any matter covered by the assessment but, for greater certainty, subject to this subsection, where the assessment is varied or the reassessment is made otherwise than pursuant to subsection 81.15(4) or 81.38(1), subsection (2) applies in respect of the varied assessment or the reassessment, as the case may be. 
  
  ## Objections 
  
  ### Objection to assessment
  
  81.15 (1) Any person who has been assessed, otherwise than pursuant to subsection (4) or 81.38(1), and who objects to the assessment may, within ninety days after the day on which the notice of assessment is sent to him, serve on the Minister a notice of objection in the prescribed form setting out the reasons for the objection and all relevant facts on which that person relies. 
  
  ### Service
  
  (2) Service of a notice of objection on the Minister shall be effected by prepaid mail addressed to the Minister at Ottawa. 
  
  ### Acceptance of other service
  
  (3) The Minister may accept a notice of objection notwithstanding that it was not served in accordance with subsection (2). 
  
  ### Consideration of objection
  
  (4) Subject to section 81.21, on receipt of a notice of objection, the Minister shall, with all due dispatch, reconsider the assessment and vacate, vary or confirm the assessment or make a reassessment. 
  
  ### Notice of decision
  
  (5) After reconsidering an assessment, the Minister shall send to the person objecting a notice of decision in the prescribed form setting out 
  (a) the date of the decision; 
  (b) the amount owing or overpayment by the person objecting, where the Minister varies the assessment or makes a reassessment; 
  (c) a brief explanation of the decision; and 
  (d) the period within which an appeal may be made under section 81.19 or 81.2. 
  
  ### Tax payable
  
  (6) Where the variation of an assessment, or a reassessment, on an objection establishes that any tax, penalty, interest or other sum payable under this Act remains unpaid by the person objecting, the notice of decision shall set out separately the taxes, penalties, interest and other sums payable and the aggregate thereof. 
  
  ### Refund payable
  
  (7) Where the variation of an assessment, or a reassessment, on an objection establishes that an amount is payable pursuant to any of sections 68 to 68.29 to the person objecting, the notice of decision shall set out the aggregate of the amounts payable. 
  
  ### Credit allowable
  
  (8) Where the variation of an assessment, or a reassessment, on an objection establishes that a credit is allowable pursuant to section 81.1 to the person objecting, the notice of decision shall set out the aggregate of the credits allowable. 
  
  ### No tax, refund or credit
  
  (9) Where the variation of an assessment, or a reassessment, on an objection establishes that 
  (a) no tax, penalty, interest or other sum payable under this Act remains unpaid by the person objecting, 
  (b) no amount is payable pursuant to any of sections 68 to 68.29 to the person objecting, or 
  (c) no credit is allowable pursuant to section 81.1 to the person objecting, in respect of the matter covered by the varied assessment or reassessment, the notice of decision shall contain a statement to that effect. 
  
  ### Amounts not considered
  
  (10) For the purposes of determining the sums, amounts and credits referred to in subsections (6) to (9), no amount paid by the person objecting or the Minister on account of the amount owing or overpayment as set out in the notice of assessment, and no amount deemed by subsection 81.14(2) to have been paid, shall be taken into consideration. 
  
  ### Definitions
  
  (11) For the purposes of this section and section 81.16,  
  *amount owing*, in respect of a person objecting, means the amount by which  
  (a) the amount obtained by subtracting 
  (i) the amount paid by that person on account of the amount owing as set out in the notice of assessment from 
  (ii) the aggregate of all taxes, penalties, interest and other sums remaining unpaid by that person, as set out in the notice of decision pursuant to subsection (6) exceeds 
  (b) the amount obtained by subtracting 
  (i) the amount paid to that person pursuant to subsection 81.14(1) from 
  (ii) the aggregate of 
  (A) all amounts payable to that person, as set out in the notice of decision pursuant to subsection (7), and 
  (B) the credits allowable to that person, as set out in the notice of decision pursuant to subsection (8); ( montant dû)   
  *overpayment*, in respect of a person objecting, means the amount by which the amount described in paragraph (b) of the definition 
  *amount owing* in this subsection exceeds the amount described in paragraph (a) of that definition. (paiement en trop)  
  
  ### Payment by Minister on objection
  
  81.16 (1) Where the variation of an assessment, or a reassessment, on an objection establishes that there is an overpayment by the person objecting, the Minister shall pay to that person the amount of the overpayment as set out in the notice of decision. 
  
  ### Presumption
  
  (2) Where the variation of an assessment, or a reassessment, on an objection establishes that an amount is payable pursuant to any of sections 68 to 68.29, or a credit is allowable pursuant to section 81.1, to the person objecting, 
  (a) that person is deemed to have paid, on the day on which the notice of decision is sent to him, an amount equal to the lesser of the amounts described in paragraphs (a) and (b) of the definition 
  *amount owing* in subsection 81.15(11) on account of the person’s tax, penalty, interest or other sum payable under this Act in respect of the matter covered by the varied assessment or reassessment; and  
  (b) the Minister is deemed to have paid, on that day, to the person assessed in accordance with section 72 the amount, if any, by which the amount deemed by paragraph (a) to have been paid exceeds the aggregate of the credits described in clause (b)(ii)(B) of that definition. 
  
  ### No deemed double payments
  
  (3) Subject to subsection 81.38(2), subsection (2) ceases to apply in respect of an assessment if the assessment is subsequently vacated or varied or a reassessment is made in respect of any matter covered by the assessment. 
  
  ### Interest on reassessment
  
  (4) Subject to subsection (5), if an amount is paid under subsection (1), interest at the prescribed rate shall be paid, in respect of each day between the date of the notice of the assessment that is the subject of the objection and the day on which the payment was sent. 
  
  ### Interest on amount paid by person
  
  (5) If a person has paid an amount on account of the amount owing as set out in a notice of assessment and a payment is made to that person under subsection (1) on an objection to the assessment, interest at the prescribed rate shall be paid, in respect of each day between the day on which the amount was paid by that person and the day on which the payment was sent to that person. 
  (6)  [Repealed, 2003, c. 15, s. 104]  
  
  ### Objection to determination
  
  81.17 (1) Any person who has made an application under any of sections 68 to 69 and who objects to the determination of the Minister respecting the application may, within ninety days after the day on which the notice of determination is sent to that person, serve on the Minister a notice of objection in the prescribed form setting out the reasons for the objection and all relevant facts on which that person relies. 
  
  ### Service
  
  (2) Service of a notice of objection on the Minister shall be effected by prepaid mail addressed to the Minister at Ottawa. 
  
  ### Acceptance of other service
  
  (3) The Minister may accept a notice of objection notwithstanding that it was not served in accordance with subsection (2). 
  
  ### Consideration of objection
  
  (4) Subject to section 81.21, on receipt of a notice of objection, the Minister shall, with all due dispatch, reconsider the determination and vacate, vary or confirm the determination. 
  
  ### Notice of decision
  
  (5) After reconsidering a determination, the Minister shall send to the person objecting a notice of decision in the prescribed form setting out 
  (a) the date of the decision; 
  (b) the amount payable, if any, to the person objecting; 
  (c) a brief explanation of the decision, where the Minister rejects the objection in whole or in part; and 
  (d) the period within which an appeal may be taken under section 81.19 or 81.2. 
  
  ### Definition of “amount payable”
  
  (6) For the purposes of this section and section 81.18, 
  *amount payable*, in respect of a person objecting, means the amount by which  
  (a) the aggregate of all amounts payable to that person pursuant to sections 68 to 69 exceeds 
  (b) the amount paid to that person pursuant to subsection 72(6) or authorized to be deducted by that person pursuant to subsection 74(1). 
  
  ### Payment by Minister
  
  81.18 (1) Subject to subsection (2), where the reconsideration of a determination on an objection establishes that there is an amount payable to the person objecting, the Minister shall pay to that person the amount payable as set out in the notice of decision. 
  
  ### Authorization of deduction
  
  (2) Where the reconsideration of a determination on an objection establishes that there is an amount payable to the person objecting and that person has, in the application that is the subject of the reconsideration, requested the Minister to authorize a deduction under subsection 74(1), the Minister may, in the notice of decision, authorize that person to deduct that amount in accordance with that subsection. 
  
  ### Interest on refund payments
  
  (3) If an amount is paid under subsection (1), interest at the prescribed rate shall be paid, in respect of each day between the day that is 30 days after the day on which the application that is the subject of the reconsideration was received by the Minister and the day on which the payment is sent. 
  
  ### Interest on refund deductions
  
  (4) If a deduction is authorized under subsection (2), interest at the prescribed rate shall be authorized as a deduction in accordance with subsection 74(1), calculated in respect of each day between the day that is 30 days after the day on which the application was received by the Minister and the day on which the notice of decision was sent. 
  (5)  [Repealed, 2003, c. 15, s. 105]  
  
  ## Rights of Appeal 
  
  ### Appeal to Tribunal from assessment or determination of Minister
  
  81.19 Any person who has served a notice of objection under section 81.15 or 81.17, other than a notice in respect of Part I, may, within ninety days after the day on which the notice of decision on the objection is sent to him, appeal the assessment or determination to the Tribunal. 
  
  ### Appeal to Court from assessment or determination of Minister
  
  81.2 (1) Any person who has served a notice of objection under section 81.15 or 81.17, other than a notice in respect of Part I, may, in lieu of appealing to the Tribunal under section 81.19, appeal the assessment or determination to the Federal Court at any time when, under section 81.19, that person could have appealed to the Tribunal. 
  
  ### Idem
  
  (2) Any person who has served a notice of objection under section 81.15 or 81.17 in respect of Part I may, within ninety days after the day on which the notice of decision on the objection is sent to him, appeal the assessment or determination to the Federal Court. 
  
  ### Appeal to Tribunal or Court from assessment or determination of Minister
  
  81.21 (1) Any person who has served a notice of objection under section 81.15 or 81.17, other than a notice in respect of Part I, and who states therein that he waives reconsideration of the assessment or determination to which the notice relates and wishes to appeal the assessment or determination directly to the Tribunal or to the Federal Court may so appeal if the Minister consents thereto. 
  
  ### Appeal to Court from assessment or determination of Minister
  
  (2) Any person who has served a notice of objection under section 81.15 or 81.17 in respect of Part I and who states therein that he waives reconsideration of the assessment or determination to which the notice relates and wishes to appeal the assessment or determination directly to the Federal Court may so appeal if the Minister consents thereto. 
  
  ### Copy of notice filed
  
  (3) Where the Minister consents to an appeal pursuant to subsection (1) or (2), the Minister shall file a copy of the notice of objection with the Tribunal or Federal Court, as the case may be, and send a notice of his action to the person who has served the notice of objection. 
  
  ### Appeal to Tribunal or Court where no decision
  
  81.22 (1) Where a person has served a notice of objection under section 81.15 or 81.17, other than a notice in respect of Part I, and the Minister has not sent a notice of his decision to that person within one hundred and eighty days after the notice of objection was served, that person may appeal the assessment or determination to which the notice relates to the Tribunal or the Federal Court. 
  
  ### Appeal to Court where no decision
  
  (2) Where a person has served a notice of objection under section 81.15 or 81.17 in respect of Part I and the Minister has not sent a notice of his decision to that person within one hundred and eighty days after the notice of objection was served, that person may appeal the assessment or determination to which the notice relates to the Federal Court. 
  
  ### Limitation
  
  (3) No appeal may be instituted pursuant to this section after the Minister has sent a notice of decision to the person who served the notice of objection. 
  
  ### Appeal to Tribunal or Federal Court
  
  81.23 (1) Where a person has served a notice of objection under section 81.15 in respect of an assessment and thereafter the Minister, otherwise than pursuant to subsection 81.15(4) or 81.38(1), varies the assessment or makes a reassessment in respect of any matter covered by the assessment and sends to that person a notice of assessment in respect of the varied assessment or reassessment, that person may, without serving a notice of objection to the varied assessment or reassessment, 
  (a) appeal the varied assessment or reassessment to the Tribunal or the Federal Court in accordance with section 81.19 or 81.2, as the case may be, as if the notice of assessment were a notice of decision of the Minister; or 
  (b) if an appeal has been instituted in respect of the assessment, amend the appeal by joining thereto an appeal in respect of the varied assessment or reassessment in such manner and on such terms, if any, as the Tribunal or the court hearing the appeal, as the case may be, deems appropriate. 
  
  ### Idem
  
  (2) Where a person has appealed an assessment under section 81.22 and thereafter the Minister, pursuant to subsection 81.15(4), varies the assessment or makes a reassessment in respect of any matter covered by the assessment and sends to that person a notice of decision in respect of the varied assessment or reassessment, that person may, without serving a notice of objection to the varied assessment or reassessment, amend the appeal by joining thereto an appeal in respect of the varied assessment or reassessment in such manner and on such terms, if any, as the Tribunal or the Federal Court, as the case may be, deems appropriate. 
  
  ### Appeal to Court from decision of Tribunal
  
  81.24 Any party to an appeal to the Tribunal under section 81.19, 81.21, 81.22 or 81.23 may, within one hundred and twenty days after the day on which the decision of the Tribunal is sent to that party, appeal the decision to the Federal Court. 
  
  ## Appeals to Tribunal 
  
  ### Notice to Commissioner
  
  81.25 (1) Where an appeal to the Tribunal is instituted otherwise than pursuant to subsection 81.21(1), the Tribunal shall send a notice of the appeal to the Commissioner at Ottawa. 
  (2)  [Repealed, 2013, c. 34, s. 413]  
  
  ### Hearing of appeal
  
  81.26 The Tribunal may hear an appeal under this Part in private if, on application by any party to the appeal, the Tribunal is satisfied that the circumstances of the case justify the hearing being so held. 
  
  ### Disposition of appeal
  
  81.27 (1) After hearing an appeal under this Part, the Tribunal may dispose of the appeal by making such finding or declaration as the nature of the matter may require and by making an order 
  (a) dismissing the appeal; or 
  (b) allowing the appeal in whole or in part and vacating or varying the assessment or determination or referring it back to the Minister for reconsideration. 
  
  ### Costs
  
  (2) No costs may be awarded by the Tribunal on the disposition of an appeal. 
  
  ### Decision of Tribunal
  
  (3) A decision of the Tribunal disposing of an appeal shall be recorded in writing and include the reasons for the decision, and a copy thereof shall forthwith be sent to the parties to the appeal. 
  
  ### Penalty where no reasonable grounds for appeal to Tribunal
  
  (4) Where the Tribunal disposes of an appeal in respect of an assessment or where such an appeal to the Tribunal is discontinued or dismissed without a hearing, the Tribunal may, on application by the Minister, order the person instituting the appeal to pay to the Receiver General an amount not exceeding ten per cent of the amount that was in controversy, if the Tribunal determines that there were no reasonable grounds for the appeal and that one of the main purposes for instituting or maintaining the appeal was to defer the payment of any tax, penalty, interest or other sum payable under this Act. 
  
  ## Appeals to Court 
  
  ### Institution of appeal to Court
  
  81.28 (1) An appeal to the Federal Court under section 81.2, 81.22 or 81.24 shall be instituted 
  (a) in the case of an appeal by a person, other than the Minister, in the manner set out in section 48 of the Federal Courts Act ; and  
  (b) in the case of an appeal by the Minister, in the manner provided by the rules made under the Federal Courts Act for the commencement of an action.  
  
  ### Counter-claim or cross-demand
  
  (2) If the respondent in an appeal under section 81.24 from a decision of the Tribunal desires to appeal that decision, the respondent may do so, whether or not the time fixed by that section has expired, by a counter-claim or cross-demand instituted in accordance with the Federal Courts Act and the rules made under that Act.  
  
  ### Procedure
  
  (3) An appeal to the Federal Court under this Part is deemed to be an action in the Federal Court to which the Federal Courts Act and the rules made under that Act applicable to an ordinary action apply, except as varied by special rules made in respect of such appeals and except that  
  (a) the rules concerning joinder of parties and causes of action do not apply except to permit the joinder of appeals under this Part; 
  (b) a copy of a notice of objection filed with the Federal Court under subsection 81.21(3) is deemed to be a statement of claim that is filed with the Court by the person serving the notice and served by that person on the Minister on the day it was so filed by the Minister; and 
  (c) a copy of a notice of objection filed by the Minister pursuant to subsection 81.21(3) or an originating document filed by the Minister pursuant to subsection (1) shall be served in the manner provided in subsection (4). 
  
  ### Service
  
  (4) Where a copy of a notice of objection is filed by the Minister pursuant to subsection 81.21(3) or an originating document is filed by the Minister pursuant to subsection (1) and he files two copies or additional copies thereof, together with a certificate as to the latest known address of the other party to the appeal, an officer of the Court shall, after verifying the accuracy of the copies, forthwith on behalf of the Minister serve the copy of the notice of objection or the originating document, as the case may be, on that other party by sending the copies or additional copies thereof by registered or certified letter addressed to that other party at the address set out in the certificate. 
  
  ### Certificate
  
  (5) Where copies have been served on a party pursuant to subsection (4), a certificate signed by an officer of the Court as to the date of filing and the date of mailing of the copies shall be transmitted to the office of the Deputy Attorney General of Canada and is evidence of the date of filing and the date of service of the documents referred to therein. 
  
  ### Notice to Tribunal
  
  81.29 (1) Where an appeal is instituted to the Federal Court from a decision of the Tribunal, the Court shall send a notice of the appeal to the Tribunal. 
  
  ### Material sent to Federal Court
  
  (2) On the receipt of a notice of an appeal under subsection (1), the Tribunal shall send to the Court all material filed with or sent to the Tribunal in connection with the appeal, together with a transcript of the record of proceedings before the Tribunal. 
  (3)  [Repealed, 2013, c. 34, s. 414]  
  
  ### Hearing of appeal
  
  81.3 The Federal Court may hear an appeal under this Part in private if, on application by any party to the appeal, the Court is satisfied that the circumstances of the case justify the hearing being so held. 
  
  ### Disposition of appeal
  
  81.31 (1) After hearing an appeal under this Part, the Federal Court may dispose of the appeal by making such order, judgment, finding or declaration as the nature of the matter may require including, without limiting the generality of the foregoing, an order 
  (a) dismissing the appeal; or 
  (b) allowing the appeal in whole or in part and vacating or varying the assessment or determination or referring it back to the Minister for reconsideration. 
  
  ### Order
  
  (2) Subject to subsection (3), on the disposition of an appeal, the Federal Court may order payment or repayment of any tax, penalty, interest, sum or costs. 
  
  ### Costs
  
  (3) Where the amount in dispute on an appeal by the Minister, other than by way of counter-claim or cross-demand, from a decision of the Tribunal does not exceed ten thousand dollars, the Minister, on disposition of the appeal, shall pay all reasonable and proper costs of the other party to the appeal in connection therewith. 
  
  ### Penalty where no reasonable grounds for appeal to Court
  
  (4) Where the Federal Court disposes of an appeal in respect of an assessment or where such an appeal to the Court is discontinued or dismissed without a hearing, the Court may, on application by the Minister and whether or not the Court awards costs, order the person instituting the appeal to pay to the Receiver General an amount not exceeding ten per cent of the amount that was in controversy, if the Court determines that there were no reasonable grounds for the appeal and that one of the main purposes for instituting or maintaining the appeal was to defer the payment of any tax, penalty, interest or other sum payable under this Act. 
  
  ## Extension of Time for Objection or Appeal 
  
  ### Extension of time by Tribunal
  
  81.32 (1) Subject to subsection (6), any person entitled to serve a notice of objection under section 81.15 or 81.17, other than a notice in respect of Part I, or to appeal to the Tribunal under section 81.19 may, at any time before or after the expiration of the time limited by that section for so objecting or appealing, apply to the Tribunal for an order extending that time. 
  
  ### Procedure
  
  (2) An application under subsection (1) shall be made by filing with the Tribunal three copies of the application. 
  
  ### Extension of time by Federal Court
  
  (3) Subject to subsection (6), any person entitled to serve a notice of objection under section 81.15 or 81.17 in respect of Part I or to appeal to the Federal Court under section 81.2 or 81.24 may, at any time before or after the expiration of the time limited by that section for so objecting or appealing, apply to the Court for an order extending that time. 
  
  ### Procedure
  
  (4) An application under subsection (3) shall be made by filing a notice of the application with the Court and serving a copy of the notice on the Deputy Attorney General of Canada at least fourteen days before the application is returnable. 
  
  ### Reasons
  
  (5) An application under subsection (1) or (3) shall set out the reasons why the applicant is or was not able to comply with the time limitation. 
  
  ### Limitation
  
  (6) No application may be made pursuant to subsection (1) or (3) more than one year after the expiration of the time limited. 
  
  ### Order
  
  (7) On application pursuant to subsection (1) or (3), the Tribunal or Court may grant an order extending the time limited if 
  (a) it has not previously made an order extending that time; and 
  (b) it is satisfied that 
  (i) the circumstances are such that it is just and equitable to extend the time, 
  (ii) but for the circumstances referred to in subparagraph (i), an objection would have been made or an appeal would have been instituted, as the case may be, within that time, 
  (iii) the application was brought as soon as circumstances permitted, and 
  (iv) there are reasonable grounds for the objection or appeal. 
  
  ## Purchaser Objections and Appeals 
  
  ### Right to institute proceedings or apply for extensions
  
  81.33 (1) Subject to this section, where 
  (a) a vendor of goods has made an application under section 68.2 in respect of the sale of the goods and the application was rejected in whole or in part by the Minister, or 
  (b) a vendor of goods has not paid tax in respect of the sale of the goods 
  (i) on the basis that the tax was not payable by virtue of subsection 23(6), (7), (8) or (8.1) or 50(5), or 
  (ii) on the basis that the goods were sold in circumstances that, by virtue of the nature of the purchaser of the goods or the use to which the goods were to be put or by virtue of both such nature and use, rendered the sale exempt from tax under subsection 51(1) and subsequently the vendor was assessed tax by the Minister in respect of the sale and has recovered the amount of that tax, or a part thereof, from the purchaser of the goods, the purchaser of the goods may, in substitution for the vendor and in the purchaser’s own name as if he were the vendor, institute proceedings under any of sections 81.15, 81.17, 81.19, 81.2, 81.21, 81.22, 81.23 or 81.24 in respect of the rejection or assessment or apply for an extension, under section 81.32, of the time limited for instituting any such proceedings. 
  
  ### Condition precedent
  
  (2) A purchaser may institute proceedings or apply for an extension of the time limited for instituting proceedings pursuant to subsection (1) only if 
  (a) the vendor has unconditionally assigned to the purchaser in the prescribed form his rights, if any, 
  (i) to institute proceedings under sections 81.15, 81.17, 81.19, 81.2, 81.21, 81.22, 81.23 or 81.24, 
  (ii) to make an application under section 81.32, and 
  (iii) to receive a payment pursuant to section 81.16, 81.18 or 81.38 in respect of the sale and the Minister is served with a true copy of the assignment in accordance with subsection (3); 
  (b) the vendor has not, within the time limited for instituting the proceedings, instituted the proceedings or applied for an extension, under section 81.32, of that time; or 
  (c) the proceedings are an appeal arising from proceedings previously instituted by the purchaser pursuant to subsection (1). 
  
  ### Service
  
  (3) Service of a true copy of an assignment on the Minister shall be effected, by prepaid mail addressed to the Minister at Ottawa, within the time limited for instituting the proceedings to which the assignment relates. 
  
  ### Acceptance of other service
  
  (4) The Minister may accept a true copy of an assignment notwithstanding that it was not served by prepaid mail addressed to the Minister at Ottawa. 
  
  ### Deemed extension
  
  (5) For the purpose of permitting a purchaser to institute proceedings or apply for an extension of the time limited for instituting proceedings pursuant to subsection (1) in the circumstances described in paragraph (2)(b), the time limited for instituting the proceedings is deemed to be extended by thirty days. 
  
  ### Purchaser stands in place of vendor
  
  (6) Proceedings and applications under subsection (1) shall be dealt with in all respects as if the purchaser were the vendor and any amounts found, on the conclusion of the proceedings, to be payable under subsection 81.16(1), 81.18(1) or 81.38(1) shall be paid to the purchaser and not to the vendor. 
  
  ### Exception
  
  (7) Where a vendor applies for an extension, under section 81.32, of the time limited for instituting any proceedings after the time has expired, the purchaser may not institute the proceedings or apply for an extension of the time limited for instituting the proceedings pursuant to subsection (1). 
  
  ### Preclusion
  
  (8) Where a purchaser institutes proceedings or applies for an extension of the time limited for instituting proceedings pursuant to subsection (1), the vendor may not apply for an extension, under section 81.32, of the time limited for instituting the proceedings or, in the case described in paragraph (1)(a), make a further application under section 68.2 in respect of the sale. 
  
  ### Intervention
  
  (9) Notwithstanding section 81.34, a vendor of goods may intervene in any proceedings or application for extension of the time limited for instituting proceedings instituted by a purchaser of the goods pursuant to subsection (1), as a party to the proceedings or application. 
  
  ## Interventions 
  
  ### Interventions
  
  81.34 (1) On application, the Tribunal or Federal Court may make an order permitting any person to intervene in an appeal or a reference to it under this Part as a party thereto, if it is satisfied that the applicant has a substantial and direct interest in the subject-matter of the appeal or reference. 
  
  ### Assistance
  
  (2) On application, the Tribunal or Federal Court may make an order permitting any person to render assistance to it by way of argument in an appeal or a reference to it under this Part, but such person shall not be added as a party thereto. 
  
  ### Terms
  
  (3) The Tribunal or Federal Court may impose such terms and conditions as it deems appropriate in connection with an order under this section. 
  
  ### Procedure
  
  (4) An application under subsection (1) shall be made by filing a notice of the application with the Tribunal or Court, as the case may be, and serving a copy of the notice on the parties to the appeal or reference at least fourteen days before the application is returnable. 
  
  ### Matters considered
  
  (5) The Tribunal or Court, in any application under this section, shall consider the possibility of undue delay or prejudice or any other matter that it deems appropriate in exercising its discretion pursuant to this section. 
  81.35  [Repealed, R.S., 1985, c. 47 (4th Supp.), s. 52]  
  
  ## References 
  
  ### Reference to Federal Court
  
  81.36 (1) The Minister may refer any question of law, fact or mixed law and fact relating to this Act to the Federal Court for hearing and determination. 
  
  ### Contents of reference
  
  (2) A reference under subsection (1) shall set out 
  (a) the question to be determined; 
  (b) the names of any specific persons that the Minister seeks to have bound by the determination; and 
  (c) the facts and arguments on which the Minister intends to rely at the hearing. 
  
  ### Service
  
  (3) A copy of a reference under subsection (1) shall be served by the Minister on the persons, if any, named in the reference pursuant to subsection (2) and on such other persons as, in the opinion of the Court, are likely to be affected by the determination of the question set out in the reference. 
  
  ### Notice
  
  (4) Where a reference under subsection (1) is made to the Court and the Court is of the opinion that persons, other than those named in the reference pursuant to subsection (2), are likely to be affected by the determination of the question set out in the reference but that the identity of those persons is not known or readily ascertainable, the Court may direct that notice of the reference be given in such manner as it considers will most likely come to the attention of those other persons. 
  
  ### Suspension of time limitations
  
  (5) The period beginning on the day the Minister institutes proceedings in the Court pursuant to subsection (1) to have a question determined and ending on the day the question is finally determined shall not be counted in determining 
  (a) the time limited by subsection 81.15(1) or 81.17(1) for serving a notice of objection by any person who is served with a copy of the reference pursuant to subsection (3) or who appears as a party at the hearing to determine the question; 
  (b) the time limited by section 81.19, 81.2 or 81.24 for instituting an appeal by any person referred to in paragraph (a); or 
  (c) the time limited by section 82 for commencing proceedings to recover any tax, penalty, interest or other sum payable under this Act by any person referred to in paragraph (a). 
  
  ### Final and binding
  
  (6) A determination of the Federal Court under this section is, subject to an appeal, final and binding on any person who is served with a copy of the reference pursuant to subsection (3) or who appears as a party at the hearing to determine the question. 
  
  ### Reference to Federal Court
  
  81.37 (1) If the Minister and a person agree in writing that a question of law, fact or mixed law and fact relating to this Act should be determined by the Federal Court, the question shall be determined by that Court under subsection 17(3) of the Federal Courts Act.  
  
  ### Suspension of time limitations
  
  (2) The period beginning on the day proceedings are instituted in the Court pursuant to subsection (1) to have a question determined and ending on the day the question is finally determined shall not be counted in determining 
  (a) the time limited by subsection 81.15(1) or 81.17(1) for serving a notice of objection by the person who agreed to refer the question or any person who appears as a party at the hearing to determine the question; 
  (b) the time limited by section 81.19, 81.2 or 81.24 for instituting an appeal by any person referred to in paragraph (a); or 
  (c) the time limited by section 82 for commencing proceedings to recover any tax, penalty, interest or other sum payable under this Act by any person referred to in paragraph (a). 
  
  ## Payments by Minister on Appeals 
  
  ### Payment by Minister on appeal
  
  81.38 (1) If the Tribunal, the Federal Court, the Federal Court of Appeal or the Supreme Court of Canada has, on the disposition of an appeal under this Part, 
  (a) vacated or varied an assessment or a determination of the Minister respecting an application under any of sections 68 to 69, 
  (b) referred an assessment or a determination described in paragraph (a) back to the Minister for reconsideration, or 
  (c) ordered the Minister to pay or repay any tax, penalty, interest or other sum, unless otherwise directed in writing by the person who served the notice of objection, the Minister shall, with all due dispatch, whether or not a further appeal is instituted, 
  (d) where the assessment or determination is referred back to the Minister, reconsider the assessment or determination and vary the assessment or determination or make a reassessment or a further determination in accordance with the decision of the Tribunal or Court, and 
  (e) pay or repay, or surrender any security accepted for the payment of, any tax, penalty, interest or other sum in accordance with the varied assessment or determination, the reassessment or further determination of the Minister or the decision or order of the Tribunal or Court. 
  
  ### Provisions applicable to reconsideration of assessments
  
  (2) Subsections 81.15(5) to (11) and 81.16(2) and (3) apply, with such modifications as the circumstances require, to the reconsideration of an assessment under subsection (1) as if 
  (a) the words “or a notice of decision” were added immediately after the words “notice of assessment” in subsection 81.15(10) and paragraph (a) of the definition 
  *amount owing* in subsection 81.15(11);  
  (b) the reference in subsection 81.15(10) to “subsection 81.14(2)” were a reference to “subsection 81.14(2) or 81.16(2)”; and 
  (c) the reference in paragraph (b) of the definition 
  *amount owing* in subsection 81.15(11) to “subsection 81.14(1)” were a reference to “subsections 81.14(1), 81.16(1) and 81.38(1)”.  
  
  ### Provisions applicable to reconsideration of determinations
  
  (3) Subsections 81.17(5) and (6) apply, with such modifications as the circumstances require, to the reconsideration of a determination under subsection (1) as if 
  (a) the reference in paragraph (b) of the definition 
  *amount payable* in subsection 81.17(6) to “subsection 72(6)” were a reference to “subsections 72(6), 81.18(1) and 81.38(1)”; and  
  (b) the reference in that paragraph to “subsection 74(1)” were a reference to “subsections 74(1) and 81.18(2)”. 
  
  ### Payment in other appeals
  
  (4) Where, having regard to the reasons given on the disposition of an appeal referred to in subsection (1), the Minister is satisfied that it would be just and equitable to make a payment to, or surrender any security furnished by or on behalf of, any other person who has served a notice of objection or instituted an appeal, the Minister may, with the consent of that person and subject to such terms and conditions as the Minister may prescribe, pay or repay to that person any tax, penalty, interest or other sum or surrender any security accepted for the payment thereof. 
  
  ### Right of appeal preserved
  
  (5) Nothing in this section shall be construed as derogating from the right of the Minister to appeal from a decision of the Tribunal or the Federal Court on an appeal referred to in subsection (1), and any such appeal from a decision of the Tribunal shall proceed as if it were an appeal from the assessment or determination that was the subject of the decision. 
  
  ### Interest on assessment
  
  (6) Subject to subsection (7), if a payment is made under subsection (1) or (4) in respect of an assessment, interest at the prescribed rate shall be paid, in respect of each day between the date of the notice of assessment and the day on which the payment was sent. 
  
  ### Interest on amounts payable to person
  
  (7) If a person has paid an amount on account of the amount owing as set out in a notice of assessment or a notice of decision and a payment is made to that person under subsection (1) or (4) in respect of the assessment, interest at the prescribed rate shall be paid, in respect of each day between the day on which the amount was paid by that person and the day on which the payment was sent to that person. 
  
  ### Interest on refunds
  
  (8) If a payment is made under subsection (1) or (4) in respect of an application under any of sections 68 to 69, interest at the prescribed rate shall be paid, in respect of each day between the day that is 30 days after the day on which the application was received by the Minister and the day on which the payment was sent. 
  (8.1)  [Repealed, 2001, c. 16, s. 33]  
  (9)  [Repealed, 2003, c. 15, s. 106]  
  
  ## Overpayments by Minister 
  
  ### Deemed tax
  
  81.39 (1) Subject to subsection (4), if a person has 
  (a) received a drawback under section 70, 
  (b) received a payment under subsection 68.16(1) or (2), 72(6) or (7), 81.14(1), 81.16(1), (4) or (5), 81.18(1) or (3) or 120(7), or 
  (c) made a deduction under subsection 69(2), 73(1), (2) or (3), 74(1) or (3) or 81.18(2) or (4) to which that person was not entitled or in excess of the drawback, payment or deduction to which the person was entitled, the amount of the drawback, payment or deduction or the excess is deemed to be a tax under this Act payable by that person on the day the drawback, payment or deduction was made. 
  
  ### Amount payable after disposition of appeal
  
  (2) If a person has received a payment under subsection 81.38(1), (6), (7) or (8) and, on the final disposition of the appeal by further appeal or otherwise, it is determined that the person was not entitled to the payment or that the payment was in excess of the payment to which the person was entitled, the amount of the payment or the excess is deemed to be a tax under this Act payable by that person on the day the payment was made. 
  
  ### Amount payable after disposition of further appeal
  
  (3) If a person has received a payment under subsection 81.38(4), (6), (7) or (8) and, on the final disposition by further appeal or otherwise of the appeal referred to in subsection 81.38(1) on the basis of which the payment was made, it is determined that the person was not entitled to the payment or that the payment was in excess of the payment to which the person was entitled, the amount of the payment or the excess is deemed to be a tax under this Act payable by that person on the day the payment was made. 
  
  ### Amount payable after recovery of payment
  
  (4) If a person is liable to pay an amount under subsection 68.15(3) or 68.21(3), that amount is deemed to be a tax under this Act payable by that person on the day the liability arose. 
  
  ## Administrative Charge under the Financial Administration Act  
  
  ### Dishonoured instruments
  
  81.4 For the purposes of this Act and section 155.1 of the Financial Administration Act, any charge that becomes payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable under this Act is deemed to be an amount that becomes payable by the person at that time under this Act. In addition, Part II of the Interest and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Act is paid.  
  
  ## Collection 
  
  ### Definitions
  
  82 (1) The following definitions apply in this section.  
  *action* means an action to collect a tax debt of a person and includes a proceeding in a court and anything done by the Minister under any provision of this Part. (action)   
  *legal representative* of a person means a trustee in bankruptcy, an assignee, a liquidator, a curator, a receiver of any kind, a trustee, an heir, an administrator, an executor, a liquidator of a succession, a committee, or any other like person, administering, winding up, controlling or otherwise dealing in a representative or fiduciary capacity with any property, business, commercial activity or estate that belongs or belonged to, or that is or was held for the benefit of, the person or the person’s estate. (représentant légal)   
  *tax debt* means any amount payable by a person under this Act other than Part IX. (dette fiscale)  
  
  ### Debts to Her Majesty
  
  (1.1) A tax debt is a debt due to Her Majesty in right of Canada and is recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided under this Part. 
  
  ### Court proceedings
  
  (2) Subject to subsection (3), the Minister may not commence a proceeding in a court to collect a tax debt of a person in respect of an amount that may be assessed under this Part, unless when the proceeding is commenced the person has been or may be assessed for that amount. 
  
  ### No actions after limitation period
  
  (2.1) The Minister may not commence an action to collect a tax debt after the end of the limitation period for the collection of the tax debt. 
  
  ### Limitation period
  
  (2.2) The limitation period for the collection of a tax debt of a person 
  (a) begins 
  (i) if a notice of assessment in respect of the tax debt is sent to or served on the person after March 3, 2004, on the day that is 90 days after the day on which the notice is sent or served, 
  (ii) if no notice referred to in subparagraph (i) in respect of the tax debt was sent or served and the earliest day on which the Minister can commence an action to collect that tax debt is after March 3, 2004, on that earliest day, and 
  (iii) if subparagraphs (i) and (ii) do not apply and the tax debt was payable on March 4, 2004, or would have been payable on that date but for a limitation period that otherwise applied to the collection of the tax debt, on March 4, 2004; and 
  (b) ends, subject to subsection (2.6), on the day that is 10 years after the day on which it begins. 
  
  ### Limitation period restarted
  
  (2.3) The limitation period described in subsection (2.2) for the collection of a tax debt of a person restarts (and ends, subject to subsection (2.6), on the day that is 10 years after the day on which it restarts) on any day, before it would otherwise end, on which 
  (a) the person acknowledges the tax debt in accordance with subsection (2.4); 
  (b) the Minister commences an action to collect the tax debt; or 
  (c) the Minister, under section 81.1, assesses another person in respect of the tax debt. 
  
  ### Acknowledgement of tax debts
  
  (2.4) A person acknowledges a tax debt if the person 
  (a) promises, in writing, to pay the tax debt; 
  (b) makes a written acknowledgement of the tax debt, whether or not a promise to pay can be inferred from the acknowledgement and whether or not it contains a refusal to pay; or 
  (c) makes a payment, including a purported payment by way of a negotiable instrument that is dishonoured, on account of the tax debt. 
  
  ### Agent or legal representative
  
  (2.5) For the purposes of this section, an acknowledgement made by a person’s agent or legal representative has the same effect as if it were made by the person. 
  
  ### Extension of limitation period
  
  (2.6) In computing the day on which a limitation period ends, there shall be added the number of days on which one or more of the following is the case: 
  (a) the Minister may not, because of any of subsections 86(5) to (8), take any of the actions described in subsection 86(4) in respect of the tax debt; 
  (b) the Minister has accepted and holds security in lieu of payment of the tax debt; 
  (c) if the person was resident in Canada on the applicable date described in paragraph (2.2)(a) in respect of the tax debt, the person is non-resident; or 
  (d) an action that the Minister may otherwise take in respect of the tax debt is restricted or not permitted under any provision of the Bankruptcy and Insolvency Act, of the Companies’ Creditors Arrangement Act or of the Farm Debt Mediation Act.  
  
  ### Bar to claims
  
  (2.7) Despite any law of Canada or a province, Her Majesty in right of Canada is not liable for any claim that arises because the Minister collected a tax debt after the end of any limitation period that applied to the collection of the tax debt and before March 4, 2004. 
  
  ### Orders after March 3, 2004 and before effect
  
  (2.8) Despite any order or judgment made after March 3, 2004 that declares a tax debt not to be payable by a person, or that orders the Minister to reimburse to a person a tax debt collected by the Minister, because a limitation period that applied to the collection of the tax debt ended before royal assent to any measure giving effect to this section, the tax debt is deemed to have become payable on March 4, 2004. 
  
  ### Exception where misrepresentation or fraud
  
  (3) Proceedings for the recovery of any tax, penalty, interest or other sum payable under this Act may be commenced in a court at any time if payment thereof was avoided by reason of a misrepresentation attributable to neglect, carelessness or wilful default or by reason of fraud. 
  
  ### Recovery of penalties and fines for offence from corporation
  
  (4) Where a penalty or fine is imposed on a corporation pursuant to a conviction for an offence under this Act and the conviction or a certified copy thereof is produced to the Federal Court, the conviction shall be registered in the Court and, when registered, has the same force and effect, and all proceedings may be taken thereon, as if the conviction were a judgment obtained in the Court for a debt of the amount of the penalty or fine and costs, if any, specified in the conviction. 
  
  ### Penalties and interest on judgments
  
  (5) Where a judgment is obtained for any tax, penalty, interest or other sum payable under this Act, including a certificate registered under section 83, the provisions of this Act by virtue of which a penalty or interest is payable for failure to pay or remit the sum apply, with such modifications as the circumstances require, to failure to pay the judgment debt, and the penalty and interest are recoverable in the same manner as the judgment debt. 
  
  ### Certificate of default
  
  83 (1) The Minister may certify that any tax, penalty, interest or other sum payable under this Act has not been paid as and when required by this Act. 
  
  ### Certificate has effect of judgment
  
  (2) On production to the Federal Court, a certificate made under this section shall be registered in the Court and, when registered, has the same force and effect, and all proceedings may be taken thereon, as if the certificate were a judgment obtained in the Court for a debt of the amount specified in the certificate. 
  
  ### Costs
  
  (3) All reasonable costs and charges attendant on the registration of the certificate are recoverable in the same manner as if they had been certified and the certificate had been registered under this section. 
  
  ### Garnishment
  
  84 (1) Where the Minister has knowledge or suspects that a person is or is about to become liable to make a payment to a tax debtor, the Minister may, by a notice served personally or by registered or certified mail, require that person to pay to the Receiver General, on account of the tax debtor’s liability under this Act, the whole or any part of the moneys that would otherwise, within ninety days after the service of the notice, be paid or become payable to the tax debtor. 
  
  ### Application of notice
  
  (2) Where the Minister has, under subsection (1), required a person to pay to the Receiver General moneys otherwise payable to a tax debtor, the requirement applies in respect of all moneys that are or will become payable by that person to the tax debtor within the ninety day period referred to in that subsection until the tax debtor’s liability under this Act is satisfied. 
  
  ### Assignment of book debts
  
  (3) Where the Minister has knowledge or suspects that a person has received, or is about to receive, an assignment of a book debt or of a negotiable instrument of title to a book debt from a tax debtor, the Minister may, by a notice served personally or by registered or certified mail, require that person to pay to the Receiver General, on account of the tax debtor’s liability under this Act, out of any moneys received by that person on account of the debt within ninety days after service of the notice, an amount equal to the amount of any tax, penalty, interest or other sum payable under this Act in respect of the transaction giving rise to the debt assigned. 
  
  ### Failure to comply
  
  (4) Any person on whom a notice is served under this section shall pay the Receiver General according to the terms thereof and, in default of payment, is liable to pay to Her Majesty an amount equal to the lesser of 
  (a) in the case of a person served under subsection (1), 
  (i) the amount of the tax debtor’s liability under this Act, and 
  (ii) the amount payable to the tax debtor by that person, and 
  (b) in the case of a person served under subsection (3), 
  (i) the amount of any tax, penalty, interest or other sum payable under this Act in respect of the transaction giving rise to the debt assigned to that person, and 
  (ii) the amount received by that person on account of the debt assigned after receipt of the notice. 
  
  ### Application of payments
  
  (5) Any moneys paid by a person under subsection (4) shall, in addition to being applied to that person’s liability under this section, be applied on account of the tax debtor’s liability under this Act. 
  
  ### Receipt by Receiver General
  
  (6) The receipt by the Receiver General of moneys paid as required under this section is a good and sufficient discharge of the liability to the tax debtor to the extent of the amount received. 
  
  ### Definition of 
  *tax debtor* 
  
  (7) In this section, 
  *tax debtor* means a person by whom any tax, penalty, interest or other sum is payable under this Act.  
  (8) and (9)  [Repealed, 2003, c. 15, s. 108]  
  
  ### Retention by deduction or set-off
  
  85 Where a person is indebted to Her Majesty in right of Canada under this Act, the Minister may require the retention, by way of deduction or set-off, out of any amount that may be or become payable to that person by Her Majesty in right of Canada, of such amount as the Minister may specify. 
  
  ### Exclusion of penalties and fines for offences
  
  86 (1) Subsections 82(3) and (5) and sections 83 to 85 do not apply in respect of any penalty or fine imposed pursuant to a conviction for an offence under this Act. 
  
  ### Restriction on certificate of default
  
  (2) The Minister shall not certify under section 83 that a sum has not been paid, unless the person by whom the sum is payable has been assessed for that sum under this Part. 
  
  ### Restriction on garnishment and retention
  
  (3) The Minister shall not 
  (a) serve a notice under section 84 in respect of a sum payable under this Act, or 
  (b) require under section 85 the retention of an amount in respect of a sum payable under this Act, unless the person by whom the sum is payable has been assessed for that sum under this Part or a judgment against that person for the payment of that sum has been rendered by a court of competent jurisdiction. 
  
  ### Delay where assessment
  
  (4) Where a person has been assessed for any sum payable under this Act, otherwise than pursuant to subsection 81.15(4) or 81.38(1), the Minister shall not, for the purpose of collecting that sum, 
  (a) commence legal proceedings in a court, 
  (b) make a certificate under section 83, or 
  (c) serve a notice under section 84, 
  (d)  [Repealed, 2006, c. 4, s. 133]  before ninety days after the day on which the notice of assessment is sent to that person. 
  
  ### Delay where objection
  
  (5) If a person has served a notice of objection under section 81.15, otherwise than pursuant to section 81.33, the Minister shall not, for the purpose of collecting the sum in controversy, take any of the actions described in paragraphs (4)(a) to (c) before ninety days after the day on which the notice of decision is sent to that person. 
  
  ### Delay where appeal
  
  (6) If a person has appealed to the Tribunal or the Federal Court under this Part, otherwise than pursuant to section 81.33, in respect of an assessment, the Minister shall not, for the purpose of collecting the sum in controversy, take any of the actions described in paragraphs (4)(a) to (c), 
  (a) where the appeal is to the Tribunal, before the day on which a copy of the decision of the Tribunal is sent to that person or that person discontinues the appeal; and 
  (b) where the appeal is to the Federal Court, before the day on which the judgment of the Court is rendered or that person discontinues the appeal. 
  
  ### Delay where reference
  
  (7) If a person is named in a reference under section 81.36, agrees to a reference under section 81.37 or appears as a party at the hearing of any such reference, the Minister shall not, for the purpose of collecting any sum for which that person has been assessed and of which the liability for payment will be affected by the determination of the question, take any of the actions described in paragraphs (4)(a) to (c) before the day on which the question is determined by the Court. 
  
  ### Delay when agreement
  
  (8) Despite subsections (1) to (7), if a person has served a notice of objection under section 81.15 or has appealed to the Tribunal or the Federal Court under this Part, otherwise than under section 81.33, in respect of an assessment and agrees in writing with the Minister to delay proceedings on the objection or appeal until a decision or judgment is rendered in another action before the Tribunal, the Federal Court, the Federal Court of Appeal or the Supreme Court of Canada in which the issue is the same or substantially the same as that raised in the objection or appeal of that person, the Minister may take any of the actions described in paragraphs (4)(a) to (c) for the purpose of collecting any sum for which that person has been assessed, determined in a manner consistent with the decision or judgment of the Tribunal or Court in the other action, at any time after the Minister notifies the person in writing that the decision or judgment has been rendered. 
  
  ### Exception
  
  (9) Subsections (2) and (3) do not apply in respect of any amount deemed to be a tax by subsection 81.39(2) or (3). 
  
  ### Collection in jeopardy
  
  87 (1) Despite section 86, if it may reasonably be considered that the collection of any sum for which a person has been assessed would be jeopardized by a delay under that section and the Minister has, by a notice served personally or by registered or certified mail, so advised that person and directed them to pay that sum or any part of it, the Minister may without delay take any of the actions described in paragraphs 86(4)(a) to (c) with respect to that sum or part. 
  
  ### Application to vacate direction
  
  (2) Any person on whom a direction is served under subsection (1) may 
  (a) on three days notice of motion to the Deputy Attorney General of Canada, apply to a judge of a superior court having jurisdiction in the province in which that person resides or to a judge of the Federal Court for an order fixing a day, not earlier than fourteen days nor later than twenty-eight days after the date of the order, and place for the determination of the question whether the direction was justified in the circumstances; 
  (b) serve a copy of the order on the Deputy Attorney General of Canada within six days after the day on which it was made; and 
  (c) if that person has proceeded as authorized by paragraph (b), apply at the appointed time and place for an order determining the question. 
  
  ### Time for application
  
  (3) An application to a judge under paragraph (2)(a) shall be made 
  (a) within thirty days after the day on which the direction under subsection (1) was served; or 
  (b) within such further time as the judge, on being satisfied that the application was made as soon as circumstances permitted, may allow. 
  
  ### Hearing in private
  
  (4) An application to a judge under paragraph (2)(c) may, on request of the applicant, be heard in private if the applicant establishes to the satisfaction of the judge that the circumstances of the case justify proceedings being held in private. 
  
  ### Burden to justify direction
  
  (5) On the hearing of an application under paragraph (2)(c), the burden of justifying the direction is on the Minister. 
  
  ### Disposition of application
  
  (6) On an application under paragraph (2)(c), the judge shall determine the question summarily and may confirm, vacate or vary the direction and make such other order as he considers appropriate. 
  
  ### Continuation by another judge
  
  (7) Where the judge to whom an application has been made under paragraph (2)(a) cannot for any reason act or continue to act in the application under paragraph (2)(c), the application under paragraph (2)(c) may be made to another judge. 
  
  ### Costs
  
  (8) No costs may be awarded by a judge on the disposition of an application under subsection (2). 
  
  ### Waiver or cancellation of interest or penalty
  
  88 (1) The Minister may, on or before the day that is 10 calendar years after the end of a reporting period of a person, or on application by the person on or before that day, waive or cancel any amount otherwise payable to the Receiver General under this Act that is interest or a penalty on an amount that is required to be paid by the person under this Act in respect of the reporting period. 
  
  ### Interest where amounts cancelled
  
  (2) If a person has paid an amount of interest or penalty and the Minister cancels that amount under subsection (1), the Minister shall pay interest on the amount paid by the person beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that subsection and ending on the day on which the amount is refunded or applied against an amount owed by the person to Her Majesty in right of Canada. 
  89  [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 41]   [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. E-15, s. 89; R.S., 1985, c. 15 (1st Supp.), s. 32, c. 7 (2nd Supp.), s. 41  
  90  [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 41]  
  91  [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 41]  
  92  [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 41]  
  93  [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 41]  
  94  [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 41]  
  
  ### Application of penalties and fines
  
  95 (1) The amount of all penalties and fines under this Act belong to Her Majesty in right of Canada for the public uses of Canada and form part of the Consolidated Revenue Fund. 
  
  ### Application of penalty on account of tax
  
  (2) Where a penalty calculated by reference to the amount of the tax that should have been paid or collected or the amount of stamps that should have been affixed or cancelled is imposed and recovered under or pursuant to this Act, the Minister may direct that the amount thereof or any portion thereof be applied on account of the tax that should have been paid or collected or the indebtedness arising out of the failure to affix or cancel the stamps. 
  
  ### Failure to file a return when required
  
  95.1 Every person who fails to file a return for a reporting period as and when required under subsection 79(1) shall pay a penalty equal to the sum of 
  (a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the reporting period and was not paid on the day on which the return was required to be filed, and 
  (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on which the return was required to be filed to the day on which the return is filed. 
  
  ### False statements or omissions
  
  95.2 (1) Every person who knowingly, or under circumstances amounting to gross negligence, makes or participates in, assents to or acquiesces in the making of, a false statement or omission in a return, application, form, certificate, statement, invoice, answer or report (each of which is in this section referred to as a “return”) made in respect of a reporting period is liable to a penalty of the greater of $250 and 25% of the total of 
  (a) if the false statement or omission is relevant to the determination of an amount of tax payable by the person, the amount, if any, by which 
  (i) that tax payable exceeds 
  (ii) the amount that would be the tax payable by the person if the tax were determined on the basis of the information provided in the return, and 
  (b) if the false statement or omission is relevant to the determination of a refund, rebate or any other amount payable to the person (each of which is in this section referred to as a “rebate”) under this Act, the amount, if any, by which 
  (i) the amount that would be the rebate payable to the person if the rebate were determined on the basis of the information provided in the return exceeds 
  (ii) the amount of the rebate payable to the person. 
  
  ### Burden of proof in respect of penalties
  
  (2) If, in an appeal under this Act, a penalty assessed by the Minister under this section is in issue, the burden of establishing the facts justifying the assessment of the penalty is on the Minister. 
  
  ### Punishment for failure to pay or collect taxes or affix stamps
  
  96 (1) Every person who, being required, by or pursuant to this Act, to pay or collect taxes or other sums, or to affix or cancel stamps, fails to do so as required is guilty of an offence and, in addition to any other punishment or liability imposed by law for that failure, is liable on summary conviction to a fine of 
  (a) not less than the aggregate of twenty-five dollars and an amount equal to the tax or other sum that he should have paid or collected or the amount of stamps that he should have affixed or cancelled, as the case may be, and 
  (b) not more than the aggregate of one thousand dollars and an amount equal to the tax or other sum or amount of stamps, as the case may be, and in default of payment of the fine to imprisonment for a term of not less than thirty days and not more than twelve months. 
  
  ### Punishment for contravention
  
  (2) Every person who contravenes any of the provisions of this Act or of a regulation made by the Minister under this Act for which no other punishment is provided is liable on summary conviction to a fine of not less than fifty dollars and not more than one thousand dollars. 
  
  ### Officers, etc., of corporations
  
  (3) Where a corporation commits an offence under this Act, any officer, director or agent of the corporation who directed, authorized, assented to, acquiesced in, or participated in the commission of the offence is a party to and guilty of the offence and is liable on summary conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted. 
  
  ### Failing to file return
  
  97 Every person required, by or pursuant to any Part except Part I, to file a return, who fails to file the return within the time it is required to be filed, is guilty of an offence and liable to a fine of not less than $10 and not more than $100. 
  
  ### Offences for false statements
  
  97.1 (1) Every person commits an offence who 
  (a) makes, or participates in, assents to or acquiesces in the making of, a false or deceptive statement in a return, application, form, certificate, statement, invoice, answer or report filed or made as required by or under this Act or the regulations made under this Act; 
  (b) for the purpose of evading payment or remittance of any tax under this Act, or obtaining a refund, rebate or other amount to which the person is not entitled under this Act, 
  (i) destroys, alters, mutilates, conceals or otherwise disposes of any records of a person, or 
  (ii) makes, or assents to or acquiesces in the making of, a false or deceptive entry, or omits, or assents to or acquiesces in the omission, to enter a material particular in the records of a person; 
  (c) wilfully, in any manner, evades or attempts to evade compliance with this Act or payment or remittance of tax or any other amount imposed under this Act; 
  (d) wilfully, in any manner, obtains or attempts to obtain a refund, rebate or other amount to which the person is not entitled under this Act; or 
  (e) conspires with any person to commit an offence described in any of paragraphs (a) to (d). 
  
  ### Prosecution on summary conviction
  
  (2) Every person who commits an offence under subsection (1) is guilty of an offence punishable on summary conviction and, in addition to any penalty otherwise provided, is liable to 
  (a) a fine of not less than 50%, and not more than 200%, of the amount of the tax that was sought to be evaded, or of the refund, rebate or other amount sought, or, if the amount that was sought to be evaded cannot be ascertained, a fine of not less than $1,000 and not more than $25,000; or 
  (b) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding two years. 
  
  ### Prosecution on indictment
  
  (3) Every person who is charged with an offence described in subsection (1) may, at the election of the Attorney General of Canada, be prosecuted on indictment and, if convicted, is, in addition to any penalty otherwise provided, liable to 
  (a) a fine of not less than 100%, and not more than 200%, of the amount of the tax that was sought to be evaded, or of the refund, rebate or other amount sought, or, if the amount that was sought to be evaded cannot be ascertained, a fine of not less than $2,000 and not more than $25,000; or 
  (b) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding five years. 
  
  ### Penalty on conviction
  
  (4) A person that is convicted of an offence under subsection (2) or (3) is not liable to pay a penalty imposed under subsection 79(5) or section 95.1, 95.2 or 109 or under a regulation made under this Act for the same evasion or attempt unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made. 
  
  ### Stay of appeal
  
  (5) If, in any appeal under this Act, substantially the same facts are at issue as those that are at issue in a prosecution under this section, the Minister may file a stay of proceedings with the Federal Court or may file a request for a postponement or adjournment with the Tribunal, as the case may be, and, on doing so, the proceedings before the Federal Court are stayed or the proceedings before the Tribunal are postponed or adjourned, as the case may be, pending final determination of the outcome of the prosecution. 
  97.2  [Repealed, 2002, c. 22, s. 418]  
  97.3  [Repealed, 2001, c. 16, s. 36]  
  97.4  [Repealed, 2002, c. 22, s. 418]  
  97.5  [Repealed, 2001, c. 16, s. 37]  
  
  ### Books and records
  
  98 (1) Every person who 
  (a) is required, by or pursuant to this Act, to pay or collect taxes or other sums or to affix or cancel stamps, or 
  (b) makes an application under any of sections 68 to 70, shall keep records and books of account in English or French at that person’s place of business in Canada in such form and containing such information as will enable the amount of taxes or other sums that should have been paid or collected, the amount of stamps that should have been affixed or cancelled or the amount, if any, of any drawback, payment or deduction that has been made or that may be made to or by that person, to be determined. 
  
  ### Keeping of records and books of account
  
  (2) Every person required by subsection (1) to keep records and books of account shall retain those records and books of account and every account and voucher necessary to verify the information contained therein until the expiration of six years from the end of the calendar year in respect of which those records and books of account are kept or until written permission for their prior disposal is given by the Minister. 
  
  ### Electronic records
  
  (2.01) Every person required by this section to keep records who does so electronically shall retain them in an electronically readable format for the retention period set out in subsection (2). 
  
  ### Exemption
  
  (2.02) The Minister may, on such terms and conditions as are acceptable to the Minister, exempt a person or a class of persons from the requirement in subsection (2.01). 
  
  ### Idem
  
  (2.1) Notwithstanding subsection (2), where a person required by subsection (1) to keep records and books of account serves a notice of objection under section 81.15 or 81.17 or is a party to an appeal under this Part, he shall retain those records and books of account and every account and voucher necessary to verify the information therein until the objection or appeal has been finally disposed of by appeal or otherwise. 
  
  ### Inspection
  
  (3) Every person required by subsection (1) to keep records and books of account shall, at all reasonable times, for any purpose related to the administration or enforcement of this Act 
  (a) make the records and books of account and every account and voucher necessary to verify the information therein available to a particular person that is an officer of the Agency or another person authorized by the Minister; 
  (b) give the particular person all reasonable assistance to inspect, audit or examine the records, books, accounts and vouchers; 
  (c) give the particular person all reasonable assistance, answer all proper questions relating to the administration and enforcement of this Act and 
  (i) attend with the particular person at a place designated by the particular person, or by video-conference or by another form of electronic communication, and answer the questions orally, and 
  (ii) answer the questions in writing, in any form specified by the particular person; and 
  (d) give the particular person all reasonable assistance with anything the particular person is authorized to do under this Act. 
  
  ### Inspection
  
  98.1 Every person who is authorized under a statute of the Province of Ontario, Quebec, Nova Scotia, New Brunswick or Prince Edward Island to sell manufactured tobacco in the province to a purchaser who is authorized under a statute of the province to retail manufactured tobacco in the province shall, at all reasonable times, make the person’s records and books of account and the records and vouchers necessary to verify the information in them available to officers of the Agency, and to other persons authorized by the Minister for the purpose of this section, for any purpose relating to the administration or enforcement of this Act and give them every facility necessary to inspect the records, books, accounts and vouchers for that purpose. 
  
  ### Electronic funds transfer
  
  98.2 For greater certainty, information obtained by the Minister under Part XV.1 of the Income Tax Act may be used for the purposes of this Act.  
  
  ### Provision of documents may be required
  
  99 (1) Subject to section 102.1, the Minister may, for any purpose related to the administration or enforcement of this Act, or of a listed international agreement, by a notice served or sent in accordance with subsection (1.1), require that any person provide any book, record, writing or other document or any information or further information within any reasonable time that may be stipulated in the notice. 
  
  ### Notice
  
  (1.1) A notice referred to in subsection (1) may be 
  (a) served personally; 
  (b) sent by registered or certified mail; or 
  (c) sent electronically to a bank or credit union (as defined in subsection 123(1)) that has provided written consent to receive notices under subsection (1) electronically.  
  
  ### Offence
  
  (2) Every person who fails to comply with a notice under subsection (1) is guilty of an offence and, in addition to any penalty otherwise provided, liable on summary conviction to 
  (a) a fine of not less than two hundred dollars and not more than ten thousand dollars; or 
  (b) both a fine described in paragraph (a) and imprisonment for a term not exceeding six months. 
  
  ### Order for compliance
  
  100 (1) Where a person is found guilty of an offence under subsection 99(2) for failing to comply with a notice, the court may make such order as it deems appropriate to enforce compliance with the notice. 
  
  ### Copies
  
  (1.1) Where any record or other document is inspected or provided under sections 98 and 99, the person by whom it is inspected, or to whom it is provided or any officer of the Agency may make, or cause to be made, one or more copies thereof and, in the case of an electronic document, make or cause to be made a print-out of the electronic document, and any document purporting to be certified by the Minister or an authorized person to be a copy of the document, or to be a print-out of an electronic document, made under this section is evidence of the nature and content of the original document and has the same probative force as the original document would have if it were proven in the ordinary way. 
  
  ### Where records or books not adequate
  
  (2) Where a person required by subsection 98(1) to keep records or books of account has not, in the opinion of the Minister, kept adequate records or books of account, the Minister may prescribe the form of, and the information to be contained in, records or books of account to be kept by that person under that subsection. 
  
  ### Where records or books not kept as required
  
  (3) Where the form of, or the information to be contained in, records or books of account to be kept by a person has been prescribed under subsection (2), and where that person fails to keep those records or books of account as required, that person is guilty of an offence and liable on summary conviction to a fine of not less than twenty-five dollars and not more than one thousand dollars and in default of payment of the fine to a term of imprisonment of not less than two months and not more than twelve months. 
  
  ### Failure to make records and books available
  
  (4) Every person who fails to comply with subsection 98(3) and every person who in any way prevents or attempts to prevent an officer of the Agency or an authorized person from having access to, or from inspecting, records or books of account kept pursuant to subsection 98(1) is guilty of an offence and liable on summary conviction to a fine of not less than two hundred dollars and not more than two thousand dollars or to imprisonment for a term of not more than six months or to both fine and imprisonment. 
  (5)  [Repealed, 2002, c. 22, s. 386]  
  
  ### Compliance
  
  101 Every person who, physically or otherwise, does or attempts to do any of the following: 
  (a) interfere with or molest any official (in this section having the same meaning as in section 295) doing anything that the official is authorized to do under this Act, or 
  (b) hinder or prevent any official from doing anything the official is authorized to do under this Act is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to 
  (c) a fine of not less than $1,000 and not more than $25,000, or 
  (d) both a fine described in paragraph (c) and imprisonment for a term not exceeding twelve months. 
  102  [Repealed, 2014, c. 20, s. 88]  
  
  ### Unnamed persons
  
  102.1 (1) The Minister shall not serve or send a notice under subsection 99(1) with respect to an unnamed person or a group of unnamed persons unless the Minister has been authorized to do so under subsection (2). 
  
  ### Authorization order
  
  (2) A judge of the Federal Court may, on application by the Minister and subject to any conditions that the judge considers appropriate, authorize the Minister to serve or send a notice under subsection 99(1) with respect to an unnamed person or a group of unnamed persons if the judge is satisfied by information on oath that 
  (a) the person or group is ascertainable; and 
  (b) the notice would be served or sent in order to verify compliance by the person or group with any duty or obligation of that person or of persons in that group under this Act. 
  (c) and (d)  [Repealed, 1996, c. 21, s. 63]  
  (3) to (6)  [Repealed, 2013, c. 33, s. 42]  
  
  ### Application of Customs Act 
  
  103 Where a tax is payable under this Act on the importation of any goods into Canada, the Customs Act is applicable in the same way and to the same extent as if that tax were payable under the Customs Tariff.  
  
  ## Service 
  
  ### Service
  
  104 (1) Except as otherwise provided in this Act, if a notice or other document is to be served on a person, other than the Minister or the Commissioner or the Tribunal, the notice or document shall be sent by registered or certified mail addressed to that person at their latest known address or be served personally on that person. 
  
  ### Presumption
  
  (2) Where a person referred to in subsection (1) carries on business under a name or style other than his own name, the notice or document may be addressed to the name or style under which that person carries on business and, in the case of personal service, is deemed to have been validly served if it has been left with an adult person employed at the place of business of the addressee. 
  
  ### Idem
  
  (3) Where a person referred to in subsection (1) carries on business in partnership, the notice or document may be addressed to the name of the partnership and, in the case of personal service, is deemed to have been validly served if it has been served on one of the partners or left with an adult person employed at the place of business of the partnership. 
  
  ## Evidence 
  
  ### Proof of service by registered or certified mail
  
  105 (1) Where a notice or other document under this Act or the regulations is sent by registered or certified mail, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out 
  (a) that the officer has knowledge of the facts in the particular case, 
  (b) that such a notice or document was sent by registered or certified mail on a named day to the person to whom it was addressed, indicating such address, and 
  (c) that the officer identifies as exhibits annexed to the affidavit the postal certificate of registration or proof of delivery, as the case may be, of the notice or document or a true copy of the relevant portion thereof and a true copy of the notice or document, is evidence of the sending and of the notice or document. 
  
  ### Proof of personal service
  
  (2) Where a notice or other document under this Act or the regulations is served personally, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out 
  (a) that the officer has knowledge of the facts in the particular case, 
  (b) that such a notice or document was served personally on a named day on the person to whom it was directed, and 
  (c) that the officer identifies as an exhibit annexed to the affidavit a true copy of the notice or document, is evidence of the personal service and of the notice or document. 
  
  ### Proof of electronic delivery
  
  (2.1) If, under this Act or a regulation made under this Act, provision is made for sending a notice to a person electronically, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, is evidence of the sending and of the notice if the affidavit sets out that 
  (a) the officer has knowledge of the facts in the particular case; 
  (b) the notice was sent electronically to the person on a named day; and 
  (c) the officer identifies as exhibits annexed to the affidavit copies of 
  (i) an electronic message confirming that the notice has been sent to the person, and 
  (ii) the notice. 
  
  ### Proof of failure to comply
  
  (3) Where a person is required by this Act or the regulations to file a return or report or to pay any tax, interest, penalty or other sum, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out 
  (a) that the officer has charge of the appropriate records, and 
  (b) that after careful examination of the records the officer was unable to find in the particular case the return or report or the payment, as the case may be, is evidence that, in such case, that person did not file the return or report or pay the tax, interest, penalty or other sum. 
  
  ### Proof of time of compliance
  
  (4) Where a person is required or authorized by this Act or the regulations to file an application, notice, return or report or to pay any tax, interest, penalty or other sum, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out 
  (a) that the officer has charge of the appropriate records, and 
  (b) that after careful examination of the records the officer has found that the application, notice, return or report was filed on a particular day or the payment was received on a particular day, as the case may be, is evidence that the application, notice, return or report was filed, or the payment was received, on that day and not prior thereto. 
  
  ### Proof of documents
  
  (5) An affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out 
  (a) that the officer has charge of the appropriate records, and 
  (b) that a document annexed to the affidavit is a document or true copy of a document, or a print-out of an electronic document, made by or on behalf of the Minister or a person exercising the powers of the Minister or by or on behalf of a person, is evidence of the nature and contents of the document. 
  
  ### Proof of documents
  
  (5.1) An affidavit of an officer of the Canada Border Services Agency, sworn before a commissioner or other person authorized to take affidavits, setting out 
  (a) that the officer has charge of the appropriate records, and 
  (b) that a document annexed to the affidavit is a document or a true copy of a document, or a print-out of an electronic document, made by or on behalf of the Minister of Public Safety and Emergency Preparedness or a person exercising the powers of that Minister or by or on behalf of a person, is evidence of the nature and contents of the document. 
  
  ### Proof of no objection
  
  (6) An affidavit of an officer of the Agency or the Canada Border Services Agency, sworn before a commissioner or other person authorized to take affidavits, setting out 
  (a) that the officer has charge of the appropriate records, 
  (b) that the officer has knowledge of the practice of the Agency or the Canada Border Services Agency, as the case may be, 
  (c) that an examination of the records shows that a notice of determination or a notice of assessment was sent to a person on a named day pursuant to this Act, and 
  (d) that after careful examination of the records the officer was unable to find that a notice of objection to the determination or assessment was received within the time limited for it, is evidence of the statements contained in the affidavit. 
  
  ### Proof of no assignment
  
  (7) An affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out 
  (a) that the officer has charge of the appropriate records, and 
  (b) that after careful examination of the records the officer was unable to find that a notice of assignment of the right to institute proceedings under this Act was received within the time limited therefor, is evidence of the statements contained therein. 
  
  ### Proof of licence
  
  (8) An affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting out 
  (a) that the officer has charge of the appropriate records, and 
  (b) that after careful examination of the records the officer has found that during a stated period a person was the holder of a licence granted under this Act, is evidence of the statements contained therein. 
  
  ### Presumption
  
  (9) Where evidence is offered under this section by an affidavit from which it appears that the person making the affidavit is an officer of the Agency or the Canada Border Services Agency, as the case may be, it is not necessary to prove his or her signature or that the person is such an officer, nor is it necessary to prove the signature or official character of the person before whom the affidavit was sworn. 
  
  ### Evidence of filing
  
  106 (1) In any proceedings under or in respect of this Act or the regulations, the production of a return, report, certificate, statement or answer required by or under this Act or the regulations, purporting to have been made, signed or filed by or on behalf of a person, is, in the absence of evidence to the contrary, proof that the return, report, certificate, statement or answer was made, signed or filed by or on behalf of that person. 
  
  ### Evidence of document
  
  (2) In any proceedings under or in respect of this Act or the regulations, 
  (a) a document purporting to be, or purporting to be a copy of or an extract from, a record, book, account, voucher, writing, document or thing inspected, provided or produced pursuant to section 98, 99 or 107 and purporting to be certified by the person by whom it was inspected or to whom it was provided or produced or by an officer of the Agency, and 
  (b) a document purporting to be certified by an officer of the Agency and setting out the amount of any tax, interest, penalty or other sum paid or payable by any named person or the amount of any payment under this Act paid or payable to any named person is evidence of the facts appearing in the document without proof of the signature or official character of the person appearing to have signed the certificate. 
  
  ### Presumption
  
  106.1 (1) Every document purporting to be an order, direction, notice, certificate, requirement, decision, determination, assessment, discharge of mortgage or acquittance of a hypothecary claim or other document and purporting to have been executed under, or in the course of the administration or enforcement of, this Act or the regulations over the name in writing of the Minister, the Deputy Minister of National Revenue, the Commissioner of Customs and Revenue, the Commissioner or an officer authorized by the Minister to exercise his or her powers or perform his or her duties or functions under this Act is deemed to be a document signed, made and issued by the Minister, Deputy Minister, Commissioner of Customs and Revenue, the Commissioner or the officer, unless called into question by the Minister or by some person acting for the Minister or Her Majesty. 
  
  ### Presumption
  
  (1.1) Every document purporting to be an order, a direction, a notice, a certificate, a requirement, a decision, a determination, an assessment, a discharge of mortgage or an acquittance of a hypothecary claim or other document and purporting to have been executed under, or in the course of the administration or enforcement of, this Act or the regulations over the name in writing of the Minister of Public Safety and Emergency Preparedness, the President of the Canada Border Services Agency or an officer authorized by that Minister to exercise his or her powers or perform his or her duties or functions under this Act is deemed to be a document signed, made and issued by that Minister, the President or the officer, unless called into question by that Minister or by some person acting for that Minister or Her Majesty. 
  
  ### Mailing or sending date
  
  (2) For the purposes of this Act, a notice referred to in subsection 72(6), 81.13(1), 81.15(5) or 81.17(5) that is sent to a person is, in the absence of any evidence to the contrary, deemed to have been sent on the day appearing from the notice to be the date thereof, unless called into question by the Minister or by some person acting for him or Her Majesty. 
  
  ### Idem
  
  (3) Where a notice referred to in subsection 72(6), 81.13(1), 81.15(5) or 81.17(5) is sent by the Minister as required by this Act, the determination, assessment or decision to which the notice relates shall be deemed to have been made on the day on which the notice is sent. 
  
  ### Date electronic notice sent
  
  (3.1) For the purposes of this Act, if a notice or other communication in respect of a person, other than a notice or other communication that refers to the business number of a person, is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is presumed to be sent to the person and received by the person on the date that an electronic message is sent, to the electronic address most recently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requiring the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister. 
  
  ### Date electronic notice sent — business account
  
  (3.2) For the purposes of this Act, a notice or other communication in respect of a person that is made available in electronic format such that it can be read or perceived by a person or computer system or other similar device and that refers to the business number of a person is presumed to be sent to the person and received by the person on the date that it is posted by the Minister in the secure electronic account in respect of the business number of the person, unless the person has requested, at least 30 days before that date, in a manner specified by the Minister, that such notices or other communications be sent by mail. 
  
  ### Idem
  
  (4) Every form purporting to be a form prescribed by the Minister under this Act shall be deemed to be a form prescribed by the Minister under this Act, unless called into question by the Minister or by some person acting for him or Her Majesty. 
  
  ### Inquiries
  
  107 (1) Any person designated by the Minister may conduct any inquiry or investigation in matters relating to this Act, and any person so authorized has all the powers and authority of a commissioner appointed under Part I of the Inquiries Act.  
  
  ### Summoning witnesses
  
  (2) A person designated to conduct an inquiry or investigation under subsection (1) may, for the purpose thereof, issue a summons to any person in any part of Canada requiring him to appear at the time and place mentioned therein, to testify to all matters within his knowledge relating to the subject-matter of the inquiry or investigation and to bring with him and produce any document, book or paper that he has in his possession or under his control relating to the subject-matter of the inquiry or investigation. 
  
  ### Travel expenses
  
  (3) Reasonable travel expenses shall be paid to any person summoned under subsection (2) at the time of the service of the summons. 
  
  ### Punishment
  
  (4) Every person who 
  (a) fails, without valid excuse, to attend an inquiry or investigation as required under this section, 
  (b) fails to produce any document, book or paper in his possession or under his control, as required under this section, or 
  (c) at any inquiry or investigation under this section 
  (i) refuses to be sworn, to affirm or to declare, as the case may be, or 
  (ii) refuses to answer any proper question put to him by the person conducting the inquiry or investigation, is guilty of an offence and liable on summary conviction to a fine of not less than twenty dollars and not more than four hundred dollars. 
  108  [Repealed, 2014, c. 20, s. 89]  
  
  ### Penalty for collecting excess sums
  
  109 Every one liable under this Act to pay to Her Majesty any of the taxes imposed by this Act, or to collect the taxes on Her Majesty’s behalf, who collects, under colour of this Act, any sum of money in excess of such sum as he is hereby required to pay to Her Majesty shall pay to Her Majesty all moneys so collected and shall in addition be liable to a penalty not exceeding five hundred dollars. 
  
  ### Time limited for prosecution
  
  110 An information or complaint under the provisions of the Criminal Code relating to summary convictions, in respect of an offence under this Act, may be laid or made on or before a day three years from the time when the matter or the information or complaint arose or within one year from the day on which evidence, sufficient in the opinion of the Minister to justify a prosecution for the offence, came to his knowledge, and the Minister’s certificate as to the day on which the evidence came to his knowledge is conclusive evidence thereof.  
  
  ### Action against officers
  
  111 (1) No writ shall be issued against, nor any process served on, any officer for any thing done or purporting to be done in the exercise of his duty as an officer until one month after notice in writing has been served on him, in which notice shall be clearly and explicitly stated the cause of action, the name and place of residence of the person who intends to bring action and the name of his attorney, solicitor or agent. 
  
  ### Evidence
  
  (2) No evidence of any cause of action shall be produced except of such cause of action as is contained in the notice, and no verdict or judgment shall be given for the plaintiff, unless he proves on the trial that the notice was given, in default of which proof the defendant is entitled to a verdict or judgment and costs. 
  
  ### Time and place of action
  
  112 (1) Every action referred to in subsection 111(1) shall be brought within three months after the cause thereof arose and shall be laid and tried in the place or district where the acts complained of were committed. 
  
  ### Defendant’s plea
  
  (2) The defendant in an action may plead the general issue and give the special matter in evidence. 
  
  ### Costs
  
  (3) If the plaintiff in an action is non-suited or discontinues the action, or if, on demurrer or otherwise, judgment is given against the plaintiff, the defendant may recover costs and have such remedy for the costs as any defendant has in other cases where costs are given. 
  
  ### Officer may tender amends
  
  113 Any officer or person against whom any action is brought under this Act on account of anything done, or purporting to be done, under the authority of this Act may, within one month after the notice referred to in subsection 111(1) has been served, tender amends to the person complaining or his agent and plead the tender in bar or answer to the action, together with other pleas or defences, and if the court or jury, as the case may be, finds the amends sufficient, a judgment or verdict shall be given for the defendant, and in that case, or if the plaintiff is non-suited or discontinues his action, or judgment is given for the defendant on demurrer or otherwise, the defendant is entitled to the like costs as he would have been entitled to in case he had pleaded the general issue only, but the defendant may, by leave of the court in which the action is brought, at any time before issue is joined, pay money into court as in other actions. 
  
  ### If defendants acted on probable cause
  
  114 If, in any action under this Act, the court or judge before whom the action is tried certifies that the defendant or defendants in the action acted on probable cause, the plaintiff in the action is not entitled to more than twenty cents damages or to any costs of suit. 
  
  ### Punishment
  
  115 (1) Notwithstanding any other statute or law, the court in any prosecution, suit or proceeding under this Act has no power to impose less than the minimum punishment prescribed by this Act and the court has no power to suspend sentence. 
  
  ### Information
  
  (2) An information or complaint in respect of a contravention of this Act may be for one or more offences and no information, complaint, warrant, conviction or other proceeding in respect of an offence or offences is objectionable or insufficient on the ground that it relates to two or more offences. 
  
  ### Incorrect statements as to use
  
  116 (1) Where a purchaser of goods from a wholesaler, producer, manufacturer or importer has incorrectly stated or certified that the goods were intended for a use rendering them exempt from tax under any provision of this Act, the wholesaler, producer, manufacturer or importer, as the case may be, is entitled to recover from the purchaser the taxes paid by him under this Act in respect of those goods. 
  
  ### Idem
  
  (2) Where a purchaser of transportation by air from an air carrier has incorrectly stated or certified that the transportation by air was intended for a use rendering the transportation exempt from tax under Part II, the air carrier is entitled to recover from the purchaser the taxes paid by the air carrier under that Part in respect of that transportation by air. 
  
  ### Idem
  
  (3) Where a person who acquires a taxable service from a licensee under Part II.1 or II.2 has incorrectly stated or certified that the service was intended for a use rendering the service exempt from tax under that Part, the licensee is entitled to recover from that person the taxes paid or remitted by the licensee under that Part in respect of the amount charged for the service. 
  
  ### Liability where purchaser’s statement or certificate incorrect
  
  (4) Where a manufacturer or wholesaler holding a licence granted under or in respect of Part III or VI has purchased goods from another such licensed manufacturer or licensed wholesaler and has incorrectly stated or certified that the goods were being purchased for a use or under conditions rendering the sale of the goods exempt from any tax imposed by Part III or VI, 
  (a) the purchaser and not the manufacturer or wholesaler from whom the goods were purchased is liable to pay the tax and any interest under subsection 79.03(1), if 
  (i) the statement or certificate is in writing, and 
  (ii) the manufacturer or wholesaler from whom the goods were purchased establishes that he acted with due care and diligence in relying on the statement or certificate of the purchaser; and 
  (b) in any other case, the purchaser and the manufacturer or wholesaler from whom the goods were purchased are jointly and severally liable to pay the tax and any interest under subsection 79.03(1). 
  
  # PART VIII 
  
  ## Transitional 
  
  ### Meaning of 
  *taxable service* 
  
  117 (1) For the purposes of this section, 
  *taxable service* means a taxable service as defined in subsection 21.1(1) and a taxable service as defined in subsection 21.22(1).  
  
  ### Part II.1 and II.2 tax
  
  (2) Where the amount charged for a taxable service by a person providing the service is charged 
  (a) after April 1991, or 
  (b) after August 1990 for a period beginning after 1990, no tax thereon shall be imposed, levied or collected under Part II.1 or II.2. 
  
  ### Idem
  
  (3) Where the amount charged for a taxable service by a person providing the service is charged after August 1990 in respect of a period beginning before 1991 and ending after 1990, no tax shall be imposed or levied under Part II.1 or II.2 or collected under those Parts by the person providing the service in respect of the amount charged, to the extent that the amount charged relates to the portion of the service that is provided after 1990. 
  
  ### Tax under Part VI
  
  118 (1) No tax shall be imposed, levied or collected under Part VI on any goods 
  (a) that are sold by a licensed wholesaler and that, before 1991, have not been delivered to the purchaser of the goods, and the property in which has not, before 1991, passed to the purchaser thereof; 
  (b) the importation of which has not been accounted for under subsection 32(1), (2) or (5) of the Customs Act before 1991;  
  (c) that are manufactured or produced in Canada and that have not, before 1991, been delivered to a purchaser of the goods, and the property in which has not, before 1991, passed to a purchaser thereof; or 
  (d) that are retained by the manufacturer or producer thereof or by a licensed wholesaler for that person’s own use after 1990 or for rental after 1990 by that person to others. 
  
  ### Idem
  
  (2) Where goods sold by a licensed wholesaler are delivered after 1990 to a purchaser of the goods but property in the goods passed to the purchaser before 1991, the goods shall, for the purposes of paragraph 50(1)(c), be deemed to have been delivered to the purchaser on the day the property in the goods passed to the purchaser. 
  
  ### Idem
  
  (3) Where a person is a manufacturer or producer who has, before November 1989, entered into a contract referred to in subparagraph 50(1)(a)(ii) in respect of the sale of goods of the person’s manufacture or production 
  (a) no tax shall be imposed, levied or collected under Part VI in respect of instalments that become payable under that contract after 1990; and 
  (b) where an invoice issued or dated before 1991 is issued for an instalment payable under that contract after 1990, subsection 152(1) does not apply in respect of the instalment. 
  
  ### Idem
  
  (4) Where a person is a manufacturer or producer who has, after October 1989, entered into a contract referred to in subparagraph 50(1)(a)(ii) in respect of the sale of goods of the person’s manufacture or production and the goods have not been delivered to the purchaser, and the property therein has not passed to the purchaser, before 1991, 
  (a) no tax shall be imposed, levied or collected under Part VI in respect of instalments that become payable under that contract after 1990; and 
  (b) where an invoice issued or dated before 1991 is issued for an instalment payable under that contract after 1990, subsection 152(1) does not apply in respect of the instalment. 
  
  ### Idem
  
  (5) Where a person who is a manufacturer or producer has, after October 1989, entered into a contract referred to in subparagraph 50(1)(a)(ii) in respect of the sale of goods of the person’s manufacture or production and the goods have been delivered to the purchaser, or the property therein has passed to the purchaser, before 1991, any instalments that become payable under the contract after November 1990 shall, for the purposes of this Act, be deemed to have become payable on December 31, 1990. 
  
  ### Idem
  
  (6) Notwithstanding subsection (3), subsection (5) applies in respect of the instalments as set out in a contract entered into before November 1989 where any amendments or alterations to the contract that vary the timing or amounts of the instalment under the contract are made after October 1989 and before 1991, except where the amendments or alterations to the contract are reasonable to accommodate a change in the total consideration payable under the contract. 
  
  ### Diversions after 1990
  
  (6.1) Where any of the events described in subsection 50(7) or (8) in respect of goods occur after 1990, no tax under Part VI shall be imposed, levied or collected under that subsection in respect of the goods. 
  
  ### Continuous supplies
  
  (7) Where Part VI applies in respect of goods that are delivered on a continuous basis, by means of a wire, pipeline or other conduit, by a vendor who is a licensed wholesaler or the manufacturer or producer of the goods and who invoices on a regular or periodic basis, and the invoice for a sale of the goods is issued by the vendor to the purchaser after August 1990, no tax shall be imposed, levied or collected under Part VI in respect of the goods, to the extent that the goods are delivered and the property therein passes to the purchaser after 1990. 
  
  ### Revocation of approval
  
  119 (1) Subsection 49(2) does not apply in respect of tax imposed under Part VI where an approval of an application given under subsection 48(3) is revoked after 1990. 
  
  ### Wholesaler’s licence cancellation
  
  (2) Subsection 56(3) does not apply in respect of tax imposed under Part VI where a licence granted under section 55 is cancelled after 1990. 
  
  ## Sales Tax Inventory Rebate 
  
  ### Definitions
  
  120 (1) In this section,  
  *capital property*, in respect of a person, means property that is, or that would be if the person were a taxpayer under the Income Tax Act, capital property of the person within the meaning of that Act, other than property described in Class 12 or 14 of Schedule II to the Income Tax Regulations ; (immobilisation)   
  *commercial activity* of a person means a business carried on by the person (other than a business carried on by an individual without a reasonable expectation of profit), except to the extent to which the business involves the making of exempt supplies (within the meaning assigned by subsection 123(1)) by the person; (activité commerciale)   
  *inventory* of a person as of any time means items of tax-paid goods that are described in the person’s inventory in Canada at that time and that are  
  (a) held at that time for sale, lease or rental separately, for a price or rent in money, to others in the ordinary course of a commercial activity of the person, or 
  (b) building materials held at that time for use by the person in a business of constructing, renovating or improving buildings or structures carried on by the person, but not including any such goods that before that time have been incorporated into new construction or a renovation or improvement or have otherwise been delivered to a construction, renovation or improvement job site, and that are not 
  (c) capital properties of the person, 
  (d) held by the person for use in the construction, renovation or improvement of property that is or is to be capital property of the person, or 
  (e) included in the description of any other person’s inventory at that time; ( inventaire)   
  *sales tax* means the consumption or sales tax imposed under Part VI; (taxe de vente)   
  *tax-paid goods* means goods, acquired before 1991 by a person, that have not been previously written off in the accounting records of the person’s business for the purposes of the Income Tax Act and that are, as of the beginning of January 1, 1991,  
  (a) new goods that are unused, 
  (b) remanufactured or rebuilt goods that are unused in their condition as remanufactured or rebuilt goods, or 
  (c) used goods and on the sale price or on the volume sold of which tax (other than tax payable in accordance with subparagraph 50(1)(a)(ii)) was imposed under subsection 50(1), was paid and is not, but for this section, recoverable. ( marchandises libérées de taxe)  
  
  ### Goods in inventory
  
  (2) Where, under a contract referred to in subsection 118(3), sales tax has been paid on instalments under the contract in respect of any goods included in the purchaser’s inventory and the goods have been delivered to the purchaser, or the title thereto has passed to the purchaser, before 1991, the goods shall be included in the inventory of that purchaser only to the extent of the instalments made before 1991 in respect thereof under the contract. 
  
  ### Goods not expected to be sold
  
  (2.1) For the purposes of paragraph (a) of the definition 
  *inventory* in subsection (1), that portion of the tax-paid goods that are described in a person’s inventory in Canada at any time that can reasonably be expected to be consumed or used by the person shall be deemed not to be held at that time for sale, lease or rental.  
  
  ### Rebate of sales tax
  
  (3) Subject to this section, where a person who, as of January 1, 1991, is registered under Subdivision D of Division V of Part IX has any tax-paid goods in inventory at the beginning of that day, 
  (a) where the tax-paid goods are goods other than used goods, the Minister shall, on application made by the person, pay to that person a rebate in accordance with subsections (5) and (8); and 
  (b) where the tax-paid goods are used goods, the goods shall be deemed, for the purposes of section 176, to be used tangible personal property supplied in Canada by way of sale on January 1, 1991 to the person in respect of which tax was not payable by the person and to have been acquired for the purpose of supply in the course of commercial activities of the person for consideration paid on that day equal to 50% of the amount at which the goods would be required to be valued on that date for the purpose of computing the person’s income from a business for the purposes of the Income Tax Act.  
  
  ### Restriction on rebate
  
  (3.1) Where section 178.3 applies, on January 1, 1991, to a direct seller, exclusive products of the direct seller that, but for this subsection, form part of the inventory at the beginning of that day of an independent sales contractor of the direct seller who is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect on that day, shall be deemed, for the purposes of this section, not to form part of that inventory. 
  
  ### Definitions
  
  (3.2) In subsection (3.1), 
  *direct seller*, 
  *distributor*, 
  *exclusive product* and 
  *independent sales contractor* have the meanings assigned by section 178.1.  
  
  ### Taking of inventory
  
  (4) For the purposes of subsection (3), the inventory of a person shall be determined as of the beginning of January 1, 1991, and may be determined 
  (a) on January 1, 1991; 
  (b) where the business of the person is not open for active business on January 1, 1991, on the first day after January 1, 1991, or the last day before January 1, 1991, on which the business is open for active business; or 
  (c) on a day before or after January 1, 1991 where the Minister is satisfied that the inventory system of the person is adequate to permit a reasonable determination of the person’s inventory as of January 1, 1991. 
  
  ### Determination of rebate
  
  (5) Subject to subsection (8), for the purposes of subsection (3), the rebate payable to a person in respect of the person’s inventory as of the beginning of January 1, 1991 is, subject to subsection 337(7), the amount determined by a prescribed method using prescribed tax factors. 
  
  ### Application of Parts VI and VII
  
  (6) Parts VI and VII, other than subsection 72(7), apply in respect of an application for a rebate and of a payment of a rebate under this section as if the application were an application for a refund under section 68 and the payment were made under section 72. 
  
  ### Interest on payment
  
  (7) Where a rebate is paid to a person under this section, interest at the prescribed rate shall be paid to the person beginning on the day that is the later of 
  (a) March 1, 1991, and 
  (b) the day that is twenty-one days after the day the application is received by the Minister, and ending on the day the rebate is paid, and compounded monthly on the total amount of the payment and interest outstanding. 
  
  ### Limitation
  
  (8) No rebate shall be paid under this section unless the application therefor is filed with the Minister before 1992. 
  
  ## New Housing Rebate 
  
  ### Definitions
  
  121 (1) In this section,  
  *estimated federal sales tax* for a residential complex means the prescribed amount in respect of the complex; (taxe de vente fédérale estimative)   
  *specified residential complex* means  
  (a) a multiple unit residential complex containing more than two residential units where the construction or substantial renovation of the complex began before 1991 and subsection 191(3) did not apply and, notwithstanding subsections 191(6) and (7), would not have applied, after the construction or substantial renovation began and before 1991, to deem a supply of the complex to have been made, or 
  (b) a residential condominium unit where the construction or substantial renovation of the condominium complex in which the unit is situated began before 1991 and neither subsection 191(1) nor (2) applied, after the construction or substantial renovation began and before 1991, to deem a supply of the unit to have been made; ( immeuble d’habitation déterminé)   
  *specified single unit residential complex* means a residential complex (other than a floating home or a mobile home)  
  (a) that is a single unit residential complex or a multiple unit residential complex containing not more than two residential units, 
  (b) the construction or substantial renovation of which began before 1991, and 
  (c) that was not occupied by any individual as a place of residence or lodging after the construction or substantial renovation began and before 1991. ( immeuble d’habitation à logement unique déterminé)  
  
  ### Rebate for specified single unit residential complex
  
  (2) Where 
  (a) a builder of a specified single unit residential complex 
  (i) gives possession of the complex to a person under a lease, licence or similar arrangement and thereby is deemed under subsection 191(1) or (3) to have made a taxable supply of the complex, or 
  (ii) makes a taxable supply by way of sale of the complex to an individual, 
  (b) tax under Part IX is payable in respect of the supply, 
  (c) the individual or person, as the case may be, first takes possession of the complex after 1990 and before 1995, and 
  (d) the construction or substantial renovation of the complex is substantially completed 
  (i) before July 1991, where the individual or person, as the case may be, first takes possession of the complex before July 1991, and 
  (ii) before 1991, in any other case, the Minister shall, subject to subsections (4) and (4.1), pay a rebate to the individual or, in the case described in subparagraph (a)(i), to the builder equal to 
  (e) 2/3 of the estimated federal sales tax for the complex where, before April 1991, the construction or substantial renovation of the complex is substantially completed and possession of the complex is transferred, and 
  (f) 1/3 of the estimated federal sales tax for the complex in any other case. 
  
  ### Liability of the builder
  
  (2.1) Where a rebate in respect of a residential complex is paid under subsection (2) to an individual who is not a builder of the complex, or to an assignee of the individual, and 
  (a) the builder has given to the individual or to the Minister incorrect information in writing as to the substantial completion before 1991 of the construction or substantial renovation of the complex, 
  (b) the builder knew or ought to have known that the information was incorrect, and 
  (c) the individual did not know and could not reasonably be expected to have known that the information was incorrect, the rebate shall be deemed, for the purposes of section 81.39, to have been received by the builder as if the builder had applied therefor. 
  
  ### Rebate for specified residential complex
  
  (3) Where, immediately before 1991, a builder of a specified residential complex (other than a builder of the complex to whom, because of subsection 191(5) or (6), subsections 191(1) to (4) do not apply) owned or had possession of the complex and had not transferred ownership or possession under an agreement of purchase and sale to any person who is not a builder of the complex, the Minister shall, subject to subsections (4) and (4.1), pay a rebate to the builder equal to 
  (a) where the complex is a multiple unit residential complex, 
  (i) 50% of the estimated federal sales tax for the complex, where the construction or substantial renovation of the complex was, on January 1, 1991, more than 25% completed and not more than 50% completed, and 
  (ii) 75% of the estimated federal sales tax for the complex, where the construction or substantial renovation of the complex was, on January 1, 1991, more than 50% completed; and 
  (b) where the complex is a residential condominium unit in a condominium complex, 
  (i) 50% of the estimated federal sales tax for the unit, where the construction or substantial renovation of the condominium complex was, on January 1, 1991, more than 25% completed and not more than 50% completed, and 
  (ii) 75% of the estimated federal sales tax for the unit, where the construction or substantial renovation of the condominium complex was, on January 1, 1991, more than 50% completed. 
  
  ### Application for rebate
  
  (4) A rebate in respect of a residential complex shall not be paid under this section to a person where the person fails to apply to the Minister for the rebate in prescribed form and manner before 1995 or where a rebate under this section in respect of the complex was paid to any other person entitled thereto. 
  
  ### Rebate based on consideration
  
  (4.1) Where the estimated federal sales tax for a residential complex is an amount based on the consideration, or a portion of the consideration, for a supply of the complex, a rebate in respect of the complex shall not be paid under this section to a person unless the person has applied for the rebate after tax under Part IX became payable in respect of that supply. 
  
  ### Application of section 191
  
  (5) For the purposes of this section, section 191 shall be deemed to have been in force at all times before 1991. 
  
  ### Application of Parts VI and VII
  
  (6) Parts VI and VII apply in respect of an application for a rebate and of a payment of a rebate under this section as if the application were an application for a refund under section 68 and the payment were made under section 72. 
  
  ### Application of anti-avoidance rule
  
  121.1 Section 274 applies to this Part with such modifications as the circumstances require, and for that purpose every reference in that section to “an assessment, a reassessment or an additional assessment” shall be read as a reference to “an assessment, a reassessment, an additional assessment, a determination or a redetermination”. 
  
  # PART IX 
  
  ## Goods and Services Tax 
  
  ### Application
  
  122 This Part is binding 
  (a) on Her Majesty in right of Canada; and 
  (b) on Her Majesty in right of a province in respect of obligations as a supplier to collect and to remit tax in respect of taxable supplies made by Her Majesty in right of the province. 
  (c)  [Repealed, 1993, c. 27, s. 9]  
  
  # DIVISION I 
  
  ## Interpretation 
  
  ### Definitions
  
  123 (1) In section 121, this Part and Schedules V to X,  
  *Agency* [Repealed, 2017, c. 33, s. 106]   
  *amount* means money, property or a service, expressed in terms of the amount of money or the value in terms of money of the property or service; (montant)   
  *assessment* means an assessment under this Part and includes a reassessment under this Part; (cotisation)   
  *asset management service* means a service (other than a prescribed service) rendered by a particular person in respect of the assets or liabilities of another person that is a service of  
  (a) managing or administering the assets or liabilities, irrespective of the level of discretionary authority the particular person has to manage some or all of the assets or liabilities, 
  (b) providing research, analysis, advice or reports in respect of the assets or liabilities, 
  (c) determining which assets or liabilities are to be acquired or disposed of, or 
  (d) acting to realize performance targets or other objectives in respect of the assets or liabilities; ( service de gestion des actifs)   
  *bank* means a bank or an authorized foreign bank within the meaning of section 2 of the Bank Act ; (banque)   
  *basic tax content*, at a particular time, of property of a person means  
  (a) except where paragraph (b) applies, the amount determined by the formula is the total of 
  (i) the tax that was payable by the person in respect of the last acquisition or importation of the property by the person, 
  (ii) the tax that was payable by the person in respect of improvements to the property acquired, imported or brought into a participating province by the person after the property was last acquired or imported by the person, 
  (iii) the tax under section 165 that would have been payable by the person, in respect of the last acquisition of the property by the person or in respect of improvements to the property acquired by the person after the property was last acquired or imported by the person, in the absence of subsection 153(4), section 167, section 167.11 in the case of property acquired under an agreement for a qualifying supply (as defined in that section) that was not, immediately before that acquisition, capital property of the supplier or the fact that the property or improvements were acquired by the person for consumption, use or supply exclusively in commercial activities, 
  (iv) the tax under any of sections 218 and 218.1 and Division IV.1 that would have become payable by the person in respect of the last acquisition or importation of the property by the person, and the tax thereunder that would have become payable by the person in respect of improvements to the property acquired, imported or brought into a participating province by the person after the property was last acquired or imported by the person, but for the fact that the person acquired or imported the property or improvement or brought the improvement into the participating province, as the case may be, for consumption, use or supply exclusively in the course of commercial activities of the person, and 
  (v) all amounts determined by the formula is an amount of tax (other than tax that the person was exempt from paying under any other Act or law) under subsection 165(1) or section 212 or 218 referred to in any of subparagraphs (i) to (iii) of the description of A that became payable, or would have become payable in the circumstances described in that subparagraph, by the person while the person was a selected listed financial institution, is the person’s percentage for a participating province determined for the purposes of subsection 225.2(2) for the person’s taxation year that includes the time that amount so became payable, or would have so become payable, is that province’s tax rate, and is 
  (A) 7%, if the amount determined for D is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends before July 1, 2006, 
  (B) 6%, if the amount determined for D is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends after June 30, 2006, but before January 1, 2008, and 
  (C) 5%, in any other case, is the total of 
  (i) all tax referred to in subparagraphs (i) to (iv) of the description of A that the person was exempt from paying under any other Act or law, 
  (ii) all tax (other than tax referred to in subparagraph (i)) under subsection 165(2) and section 212.1 referred to in any of subparagraphs (i) to (iv) of the description of A that became payable by the person, or would have become payable by the person in the circumstances described in that subparagraph, while the person was a selected listed financial institution, 
  (iii) all amounts (other than input tax credits and amounts referred to in subparagraphs (i) and (ii)) in respect of tax referred to in subparagraphs (i) and (ii) of the description of A that the person was entitled to recover by way of rebate, refund, remission or otherwise under this or any other Act or law or would have been entitled to so recover if the property or improvement had been acquired for use exclusively in activities that are not commercial activities, and 
  (iv) all amounts (other than input tax credits and amounts referred to in subparagraphs (i) and (ii)) in respect of tax referred to in subparagraphs (iii) and (iv) of the description of A that the person would have been entitled to recover by way of rebate, refund, remission or otherwise under this or any other Act or law if that tax had been payable and the property or improvement had been acquired for use exclusively in activities that are not commercial activities, and is the lesser of 1 and the fraction is the fair market value of the property at the particular time, and is the total of 
  (i) the value of the consideration for the last supply to the person of the property or, where the property was last imported by the person, the value of the property determined under section 215, and 
  (ii) where the person acquired or imported improvements to the property after the property was last so acquired or imported, the total of all amounts each of which is the value of the consideration for a supply to the person of such an improvement or, where such an improvement is property that was imported or brought into a participating province by the person, the value of the property determined under section 215 or subsection 220.05(1), 220.06(1) or 220.07(3), as the case may require, and 
  (b) if the person brought the property into a participating province from another province for consumption, use or supply in the participating province in circumstances in which the person was required to pay tax in respect of the property under section 220.05, or would have been required to pay that tax but for the fact that the property was brought into that province for consumption, use or supply exclusively in commercial activities or the person was exempt from paying that tax under any other Act or law, the amount determined by the formula is the total of 
  (i) the basic tax content of the property, determined under paragraph (a), immediately before the property was brought into the province, 
  (ii) the tax that became payable by the person in respect of the property under section 220.05 when the property was brought into the participating province, 
  (iii) the tax that was payable by the person in respect of improvements to the property acquired, imported or brought into a participating province by the person after the property was brought into the participating province, 
  (iv) the tax under section 165 that would have been payable by the person, in respect of improvements to the property acquired by the person after the property was brought into the participating province, in the absence of subsection 153(4), section 167, section 167.11 in the case of property acquired under an agreement for a qualifying supply (as defined in that section) that was not, immediately before that acquisition, capital property of the supplier or the fact that the improvements were acquired by the person for consumption, use or supply exclusively in commercial activities, or 
  (v) the tax under section 220.05 that would have become payable by the person in respect of the property, and the tax under any of sections 218 and 218.1 and Division IV.1 that would have become payable by the person in respect of improvements to the property acquired, imported or brought into a participating province by the person after the property was brought into the participating province, but for the fact that the person brought the property into the participating province, or acquired or imported the improvement or brought it into the province, as the case may be, for consumption, use or supply exclusively in the course of commercial activities of the person, and 
  (vi) all amounts determined by the formula is an amount of tax (other than tax that the person was exempt from paying under any other Act or law) under subsection 165(1) or section 212 or 218 referred to in subparagraph (iii) or (iv) of the description of J that became payable, or would have become payable in the circumstances described in that subparagraph, by the person after the property was brought into the participating province and while the person was a selected listed financial institution, is the person’s percentage for a participating province determined for the purposes of subsection 225.2(2) for the person’s taxation year that includes the time that amount so became payable, or would have so become payable, is that province’s tax rate, and is 
  (A) 7%, if the amount determined for M is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends before July 1, 2006, 
  (B) 6%, if the amount determined for M is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends after June 30, 2006, but before January 1, 2008, and 
  (C) 5%, in any other case, is the total of 
  (i) all tax referred to in subparagraphs (ii) to (v) of the description of J that the person was exempt from paying under any other Act or law, 
  (ii) all tax (other than tax referred to in subparagraph (i)) under subsection 165(2) and section 212.1 referred to in any of subparagraphs (ii) to (v) of the description of J that became payable by the person, or would have become payable by the person in the circumstances described in that subparagraph, while the person was a selected listed financial institution, 
  (iii) all amounts (other than input tax credits and amounts referred to in subparagraphs (i) and (ii)) in respect of tax referred to in subparagraphs (ii) and (iii) of the description of J that the person was entitled to recover by way of rebate, refund, remission or otherwise under this or any other Act or law or would have been entitled to so recover if the property or improvement had been acquired for use exclusively in activities that are not commercial activities, and 
  (iv) all amounts (other than input tax credits and amounts referred to in subparagraphs (i) and (ii)) in respect of tax referred to in subparagraphs (iv) and (v) of the description of J that the person would have been entitled to recover by way of rebate, refund, remission or otherwise under this or any other Act or law if that tax had been payable and the property or improvement had been acquired for use exclusively in activities that are not commercial activities, and is lesser of 1 and the fraction is the fair market value of the property at the particular time, and is the total of 
  (i) the value of the property determined under subsection 220.05(1), 220.06(1) or 220.07(3), as the case may require, at the time the property was brought into the participating province, and 
  (ii) where the person acquired or imported improvements to the property after the property was brought into the participating province, the total of all amounts each of which is the value of the consideration for a supply to the person of such an improvement or, where such an improvement is property that was imported or brought into a participating province by the person, the value of the improvement determined under section 215 or subsection 220.05(1), 220.06(1) or 220.07(3), as the case may require; ( teneur en taxe)   
  *builder* of a residential complex or of an addition to a multiple unit residential complex means a person who  
  (a) at a time when the person has an interest in the real property on which the complex is situated, carries on or engages another person to carry on for the person 
  (i) in the case of an addition to a multiple unit residential complex, the construction of the addition to the multiple unit residential complex, and 
  (ii)  [Repealed, 2014, c. 39, s. 92]  
  (iii) in any other case, the construction or substantial renovation of the complex, 
  (b) acquires an interest in the complex at a time when 
  (i) in the case of an addition to a multiple unit residential complex, the addition is under construction, and 
  (ii) in any other case, the complex is under construction or substantial renovation, 
  (c) in the case of a mobile home or floating home, makes a supply of the home before the home has been used or occupied by any individual as a place of residence, 
  (d) acquires an interest in the complex 
  (i) in the case of a condominium complex or residential condominium unit, at a time when the complex is not registered as a condominium, or 
  (ii) in any case, before it has been occupied by an individual as a place of residence or lodging, for the primary purpose of 
  (iii) making one or more supplies of the complex or parts thereof or interests therein by way of sale, or 
  (iv) making one or more supplies of the complex or parts thereof by way of lease, licence or similar arrangement to persons other than to individuals who are acquiring the complex or parts otherwise than in the course of a business or an adventure or concern in the nature of trade, or 
  (e) in any case, is deemed under subsection 190(1) to be a builder of the complex, but does not include 
  (f) an individual described in paragraph (a), (b) or (d) who 
  (i) carries on the construction or substantial renovation, 
  (ii) engages another person to carry on the construction or substantial renovation for the individual, or 
  (iii) acquires the complex or interest in it, otherwise than in the course of a business or an adventure or concern in the nature of trade, 
  (g) an individual described in paragraph (c) who makes a supply of the mobile home or floating home otherwise than in the course of a business or an adventure or concern in the nature of trade, or 
  (h) a person described in any of paragraphs (a) to (c) whose only interest in the complex is a right to purchase the complex or an interest in it from a builder of the complex; ( constructeur)   
  *business* includes a profession, calling, trade, manufacture or undertaking of any kind whatever, whether the activity or undertaking is engaged in for profit, and any activity engaged in on a regular or continuous basis that involves the supply of property by way of lease, licence or similar arrangement, but does not include an office or employment; (entreprise)   
  *calendar quarter* means a period of three months beginning on the first day of January, April, July or October in each calendar year; (trimestre civil)   
  *capital property*, in respect of a person, means property that is, or would be if the person were a taxpayer under the Income Tax Act, capital property of the person within the meaning of that Act, other than property described in Class 12, 14, 14.1 or 44 of Schedule II to the Income Tax Regulations ; (immobilisation)   
  *carrier* means a person who supplies a freight transportation service within the meaning assigned by subsection 1(1) of Part VII of Schedule VI; (transporteur)   
  *charity* means a registered charity or registered Canadian amateur athletic association within the meaning assigned to those expressions by subsection 248(1) of the Income Tax Act, but does not include a public institution; (organisme de bienfaisance)   
  *closely related group* means a group of corporations, each member of which is a registrant resident in Canada and is closely related, within the meaning assigned by section 128, to each other member of the group, and for the purposes of this definition,  
  (a) a non-resident insurer that has a permanent establishment in Canada is deemed to be resident in Canada, and 
  (b) credit unions and members of a mutual insurance group are deemed to be registrants; ( groupe étroitement lié)   
  *commercial activity* of a person means  
  (a) a business carried on by the person (other than a business carried on without a reasonable expectation of profit by an individual, a personal trust or a partnership, all of the members of which are individuals), except to the extent to which the business involves the making of exempt supplies by the person, 
  (b) an adventure or concern of the person in the nature of trade (other than an adventure or concern engaged in without a reasonable expectation of profit by an individual, a personal trust or a partnership, all of the members of which are individuals), except to the extent to which the adventure or concern involves the making of exempt supplies by the person, and 
  (c) the making of a supply (other than an exempt supply) by the person of real property of the person, including anything done by the person in the course of or in connection with the making of the supply; ( activité commerciale)   
  *commercial service*, in respect of tangible personal property, means any service in respect of the property other than  
  (a) a service of shipping the property supplied by a carrier, 
  (b) a financial service, and 
  (c) a service that is acquired for consumption, use or supply in the course of, or in connection with, the performance of a mining activity (as defined in subsection 188.2(1)) in Canada; (service commercial)   
  *Commissioner* means the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act ; (commissaire)   
  *common-law partner* of an individual at any time means a person who is the common-law partner of the individual at that time for the purposes of the Income Tax Act ; (conjoint de fait)   
  *condominium complex* means a residential complex that contains more than one residential condominium unit; (immeuble d’habitation en copropriété)   
  *consideration* includes any amount that is payable for a supply by operation of law; (contrepartie)   
  *consideration fraction* [Repealed, 1997, c. 10, s. 150]   
  *consumer* of property or a service means a particular individual who acquires or imports the property or service for the particular individual’s personal consumption, use or enjoyment or the personal consumption, use or enjoyment of any other individual at the particular individual’s expense, but does not include an individual who acquires or imports the property or service for consumption, use or supply in the course of commercial activities of the individual or other activities in the course of which the individual makes exempt supplies; (consommateur)   
  *continuous transmission commodity* means electricity, crude oil, natural gas, or any tangible personal property, that is transportable by means of a wire, pipeline or other conduit; (produit transporté en continu)   
  *convention* means a formal meeting or assembly that is not open to the general public, but does not include a meeting or assembly the principal purpose of which is  
  (a) to provide any type of amusement, entertainment or recreation, 
  (b) to conduct contests or games of chance, or 
  (c) to transact the business of the convenor or attendees 
  (i) in the course of a trade show that is open to the general public, or 
  (ii) otherwise than in the course of a trade show; ( congrès)   
  *convention facility* means real property that is acquired by way of lease, licence or similar arrangement by the sponsor or organizer of a convention for use exclusively as the site for the convention; (centre de congrès)   
  *cooperative corporation* means a cooperative housing corporation and any other cooperative corporation within the meaning assigned by subsection 136(2) of the Income Tax Act ; (coopérative)   
  *cooperative housing corporation* means a corporation that was incorporated, by or under a law of Canada or a province providing for the establishment of the corporation or respecting the establishment of cooperative corporations, for the purpose of making supplies by way of lease, licence or similar arrangement of residential units to its members for the purpose of their occupancy as places of residence for individuals where  
  (a) the statute by or under which it was incorporated, its charter, articles of association or by-laws or its contracts with its members require that the activities of the corporation be engaged in at or near cost after providing for reasonable reserves and hold forth the prospect that surplus funds arising from those activities will be distributed among its members in proportion to patronage, 
  (b) none of its members (except other cooperative corporations) have more than one vote in the conduct of the affairs of the corporation, and 
  (c) at least 90% of its members are individuals or other cooperative corporations and at least 90% of its shares are held by such persons; ( coopérative d’habitation)   
  *courier* has the meaning assigned by subsection 2(1) of the Customs Act ; (messager)   
  *credit note* means a credit note issued under subsection 232(3); (note de crédit)   
  *credit union* has the meaning assigned by subsection 137(6) of the Income Tax Act and includes a corporation described in paragraph (a) of the definition deposit insurance corporation in subsection 137.1(5) of that Act; (caisse de crédit)   
  *debit note* means a debit note issued under subsection 232(3); (note de débit)   
  *debt security* means a right to be paid money and includes a deposit of money, but does not include a lease, licence or similar arrangement for the use of, or the right to use, property other than a financial instrument; (titre de créance)   
  *Department* [Repealed, 1999, c. 17, s. 152]   
  *Deputy Minister* [Repealed, 1999, c. 17, s. 152]   
  *designated municipal property* means property  
  (a) that is property of a person who is at any time designated to be a municipality for the purposes of section 259, 
  (b) that the person intended at that time to consume, use or supply in the course of activities specified in the designation and otherwise than exclusively in the course of activities that are not activities specified in the designation, and 
  (c) in respect of which, or in respect of an improvement to which, an amount included in the total tax charged in respect of the property or service under paragraph (a) of the definition non-creditable tax charged in subsection 259(1) is  
  (i) an amount of tax in respect of a supply made to, or the importation or bringing into a participating province of the property or an improvement to it by, the person at that time, 
  (ii) an amount deemed to have been paid or collected at that time by the person, 
  (iii) an amount required to be added under subsection 129(7) in determining the person’s net tax as a result of a branch or division of the person becoming a small supplier division at that time, or 
  (iv) an amount required to be added under paragraph 171(4)(b) in determining the person’s net tax as a result of the person ceasing at that time to be a registrant; ( bien municipal désigné)   
  *direct cost* of a supply of tangible personal property or a service means the total of all amounts each of which is the consideration paid or payable by the supplier  
  (a) for the property or service if it was purchased by the supplier for the purpose of making a supply by way of sale of the property or service, or 
  (b) for an article or material (other than capital property of the supplier) that was purchased by the supplier, to the extent that the article or material is to be incorporated into or is to form a constituent or component part of the property, or is to be consumed or expended directly in the process of manufacturing, producing, processing or packaging the property and, for the purposes of this definition, the consideration paid or payable by a supplier for property or a service is deemed to include 
  (c) tax under this Part payable by the supplier in respect of the acquisition or importation of the property or service by the supplier, 
  (d) if the property was brought into a participating province from another province, any tax under this Part payable by the supplier in respect of the bringing in of the property into the participating province, and 
  (e) any tax, duty or fee payable in respect of the acquisition or importation of the property or service by the supplier and prescribed for the purposes of section 154, excluding the portion of the tax (other than tax that became payable under the first paragraph of section 16 of An Act respecting the Québec sales tax, R.S.Q., c. T-0.1, by the supplier at a time when the supplier was a registrant as defined in section 1 of that Act), duty or fee that is recovered or recoverable by the supplier; (coût direct)   
  *document* includes money, a security and a record; (document)   
  *emission allowance* means  
  (a) an allowance, credit or similar instrument (other than a prescribed allowance, credit or instrument) that 
  (i) is issued or created by, or on behalf of, 
  (A) a government, a government of a foreign country, a government of a political subdivision of a country, a supranational organization or an international organization (each of which is in this definition referred to as a “regulator”), 
  (B) a board, commission or other body established by a regulator, or 
  (C) an agency of a regulator, 
  (ii) can be used to satisfy a requirement under 
  (A) a scheme or arrangement implemented by, or on behalf of, a regulator to regulate greenhouse gas emissions, or 
  (B) a prescribed scheme or arrangement, and 
  (iii) represents a specific quantity of greenhouse gas emissions expressed as carbon dioxide equivalent, or 
  (b) a prescribed property; ( unité d’émission)   
  *employee* includes an officer; (salarié)   
  *employer*, in relation to an officer, means the person from whom the officer receives remuneration; (employeur)   
  *equity security* means a share of the capital stock of a corporation or any interest in or right to such a share; (titre de participation)   
  *excisable goods* means beer or malt liquor (within the meaning assigned by section 4 of the Excise Act) and spirits, wine, tobacco products, cannabis products and vaping products (within the meaning assigned by section 2 of the Excise Act, 2001); (produit soumis à l’accise)   
  *exclusive* means  
  (a) in respect of the consumption, use or supply of property or a service by a person that is not a financial institution, all or substantially all of the consumption, use or supply of the property or service, and 
  (b) in respect of the consumption, use or supply of property or a service by a financial institution, all of the consumption, use or supply of the property or service; ( exclusif)   
  *exempt supply* means a supply included in Schedule V; (fourniture exonérée)   
  *export* means export from Canada; (exportation)   
  *fair market value* of property or a service supplied to a person means the fair market value of the property or service without reference to any tax excluded by section 154 from the consideration for the supply; (juste valeur marchande)   
  *financial institution*, at any time, means a person who is at that time a financial institution under section 149; (institution financière)   
  *financial instrument* means  
  (a) a debt security, 
  (b) an equity security, 
  (c) an insurance policy, 
  (d) an interest in a partnership, a trust or the estate of a deceased individual, or any right in respect of such an interest, 
  (e) a precious metal, 
  (f) an option or a contract for the future supply of a commodity, where the option or contract is traded on a recognized commodity exchange, 
  (f.1) a virtual payment instrument, 
  (g) a prescribed instrument, 
  (h) a guarantee, an acceptance or an indemnity in respect of anything described in paragraph (a), (b), (d), (e) or (g), or 
  (i) an option or a contract for the future supply of money or anything described in any of paragraphs (a) to (h); ( effet financier)   
  *financial service* means  
  (a) the exchange, payment, issue, receipt or transfer of money, whether effected by the exchange of currency, by crediting or debiting accounts or otherwise, 
  (b) the operation or maintenance of a savings, chequing, deposit, loan, charge or other account, 
  (c) the lending or borrowing of a financial instrument, 
  (d) the issue, granting, allotment, acceptance, endorsement, renewal, processing, variation, transfer of ownership or repayment of a financial instrument, 
  (e) the provision, variation, release or receipt of a guarantee, an acceptance or an indemnity in respect of a financial instrument, 
  (f) the payment or receipt of money as dividends (other than patronage dividends), interest, principal, benefits or any similar payment or receipt of money in respect of a financial instrument, 
  (f.1) the payment or receipt of an amount in full or partial satisfaction of a claim arising under an insurance policy, 
  (g) the making of any advance, the granting of any credit or the lending of money, 
  (h) the underwriting of a financial instrument, 
  (i) any service provided pursuant to the terms and conditions of any agreement relating to payments of amounts for which a credit card voucher or charge card voucher has been issued, 
  (j) the service of investigating and recommending the compensation in satisfaction of a claim where 
  (i) the claim is made under a marine insurance policy, or 
  (ii) the claim is made under an insurance policy that is not in the nature of accident and sickness or life insurance and 
  (A) the service is supplied by an insurer or by a person who is licensed under the laws of a province to provide such a service, or 
  (B) the service is supplied to an insurer or a group of insurers by a person who would be required to be so licensed but for the fact that the person is relieved from that requirement under the laws of a province, 
  (j.1) the service of providing an insurer or a person who supplies a service referred to in paragraph (j) with an appraisal of the damage caused to property, or in the case of a loss of property, the value of the property, where the supplier of the appraisal inspects the property, or in the case of a loss of the property, the last-known place where the property was situated before the loss, 
  (k) any supply deemed by subsection 150(1) or section 158 to be a supply of a financial service, 
  (l) the agreeing to provide, or the arranging for, a service that is 
  (i) referred to in any of paragraphs (a) to (i), and 
  (ii) not referred to in any of paragraphs (n) to (t), or 
  (m) a prescribed service, but does not include 
  (n) the payment or receipt of money as consideration for the supply of property other than a financial instrument or of a service other than a financial service, 
  (o) the payment or receipt of money in settlement of a claim (other than a claim under an insurance policy) under a warranty, guarantee or similar arrangement in respect of property other than a financial instrument or a service other than a financial service, 
  (p) the service of providing advice, other than a service included in this definition because of paragraph (j) or (j.1), 
  (q) the provision, to an investment plan (as defined in subsection 149(5)) or any corporation, partnership or trust whose principal activity is the investing of funds, of 
  (i) a management or administrative service, or 
  (ii) any other service (other than a prescribed service), if the supplier is a person who provides management or administrative services to the investment plan, corporation, partnership or trust, 
  (q.1) an asset management service, 
  (r) a professional service provided by an accountant, actuary, lawyer or notary in the course of a professional practice, 
  (r.1) the arranging for the transfer of ownership of shares of a cooperative housing corporation, 
  (r.2) a debt collection service, rendered under an agreement between a person agreeing to provide, or arranging for, the service and a particular person other than the debtor, in respect of all or part of a debt, including a service of attempting to collect, arranging for the collection of, negotiating the payment of, or realizing or attempting to realize on any security given for, the debt, but does not include a service that consists solely of accepting from a person (other than the particular person) a payment of all or part of an account unless 
  (i) under the terms of the agreement the person rendering the service may attempt to collect all or part of the account or may realize or attempt to realize on any security given for the account, or 
  (ii) the principal business of the person rendering the service is the collection of debt, 
  (r.3) a service (other than a prescribed service) of managing credit that is in respect of credit cards, charge cards, credit accounts, charge accounts, loan accounts or accounts in respect of any advance and is provided to a person granting, or potentially granting, credit in respect of those cards or accounts, including a service provided to the person of 
  (i) checking, evaluating or authorizing credit, 
  (ii) making decisions on behalf of the person in relation to a grant, or an application for a grant, of credit, 
  (iii) creating or maintaining records for the person in relation to a grant, or an application for a grant, of credit or in relation to the cards or accounts, or 
  (iv) monitoring another person’s payment record or dealing with payments made, or to be made, by the other person, 
  (r.4) a service (other than a prescribed service) that is preparatory to the provision or the potential provision of a service referred to in any of paragraphs (a) to (i) and (l), or that is provided in conjunction with a service referred to in any of those paragraphs, and that is 
  (i) a service of collecting, collating or providing information, or 
  (ii) a market research, product design, document preparation, document processing, customer assistance, promotional or advertising service or a similar service, 
  (r.5) property (other than a financial instrument or prescribed property) that is delivered or made available to a person in conjunction with the rendering by the person of a service referred to in any of paragraphs (a) to (i) and (l), 
  (r.6) a service (other than a prescribed service) that is supplied by a payment card network operator in respect of a payment card network (as those terms are defined in section 3 of the Payment Card Networks Act) where the supply includes the provision of  
  (i) a service in respect of the authorization of a transaction in respect of money, an account, a credit card voucher, a charge card voucher or a financial instrument, 
  (ii) a clearing or settlement service in respect of money, an account, a credit card voucher, a charge card voucher or a financial instrument, or 
  (iii) a service rendered in conjunction with a service referred to in subparagraph (i) or (ii), 
  (s) any service the supply of which is deemed under this Part to be a taxable supply, or 
  (t) a prescribed service; ( service financier)   
  *fiscal month* of a person means a period that is determined under section 243 to be the fiscal month of the person; (mois d’exercice)   
  *fiscal quarter* of a person means a period that is determined under section 243 to be the fiscal quarter of the person; (trimestre d’exercice)   
  *fiscal year* of a person means  
  (a) if section 244.1 applies to the person, the period determined under that section, 
  (b) if section 244.1 does not apply to the person and the person has made an election under section 244 that is in effect, the period that the person elected to be the fiscal year of the person, and 
  (c) in all other cases, the taxation year of the person; ( exercice)   
  *floating home* means a structure that is composed of a floating platform and a building designed to be occupied as a place of residence for individuals that is permanently affixed to the platform, but does not include any freestanding appliances or furniture sold with the structure or any structure that has means of, or is capable of being readily adapted for, self-propulsion; (maison flottante)   
  *foreign convention* means a convention  
  (a) at least 75% of the admissions to which are, at the time the sponsor of the convention determines the amount to be charged as consideration therefor, reasonably expected to be supplied to non-resident persons, and 
  (b) the sponsor of which is an organization whose head office is situated outside Canada or, where the organization has no head office, the member, or majority of members, of which having management and control of the organization is or are non-resident; ( congrès étranger)   
  *former spouse* [Repealed, 2000, c. 12, s. 111]   
  *game of chance* means a lottery or other scheme under which prizes or winnings are awarded by way of chance or by way of a mixture of chance and other factors where the result depends more on chance than on the other factors; (jeu de hasard)   
  *goods* has the same meaning as in the Customs Act ; (produits)   
  *government* means Her Majesty in right of Canada or a province; (gouvernement)   
  *harmonization date* for a participating province means  
  (a) April 1, 1997 in the case of Nova Scotia, New Brunswick, Newfoundland and Labrador, the Nova Scotia offshore area or the Newfoundland offshore area, 
  (b) July 1, 2010 in the case of Ontario, and 
  (c) the prescribed date in the case of another participating province; ( date d’harmonisation)   
  *hospital authority* means an organization that operates a public hospital and that is designated by the Minister as a hospital authority for the purposes of this Part; (administration hospitalière)   
  *import* means import into Canada; (importation)   
  *improvement*, in respect of property of a person, means any property or service supplied to, or goods imported by, the person for the purpose of improving the property, to the extent that the consideration paid or payable by the person for the property or service or the value of the goods is, or would be if the person were a taxpayer under the Income Tax Act, included in determining the cost or, in the case of property that is capital property of the person, the adjusted cost base to the person of the property for the purposes of that Act; (améliorations)   
  *individual* means a natural person; (Version anglaise seulement)   
  *insurance policy* means  
  (a) a policy or contract of insurance (other than a warranty in respect of the quality, fitness or performance of tangible property, where the warranty is supplied to a person who acquires the property otherwise than for resale) that is issued by an insurer, including 
  (i) a policy of reinsurance issued by an insurer, 
  (ii) an annuity contract issued by an insurer, or a contract issued by an insurer that would be an annuity contract except that the payments under the contract 
  (A) are payable on a periodic basis at intervals that are longer or shorter than one year, or 
  (B) vary in amount depending on the value of a specified group of assets or on changes in interest rates, and 
  (iii) a contract issued by an insurer all or part of the insurer’s reserves for which vary in amount depending on the value of a specified group of assets, 
  (b) a policy or contract in the nature of accident and sickness insurance, whether the policy is issued, or the contract is entered into, by an insurer, and 
  (c) a bid, performance, maintenance or payment bond issued in respect of a construction contract; ( police d’assurance)   
  *insurer* means a person who is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada an insurance business or under the laws of another jurisdiction to carry on in that other jurisdiction an insurance business; (assureur)   inter vivos trust means a trust other than a testamentary trust; (Version anglaise seulement)   
  *investment limited partnership* means a limited partnership, the primary purpose of which is to invest funds in property consisting primarily of financial instruments, if  
  (a) the limited partnership is, or forms part of an arrangement or structure that is, represented or promoted as a hedge fund, investment limited partnership, mutual fund, private equity fund, venture capital fund or other similar collective investment vehicle, or 
  (b) the total value of all interests in the limited partnership held by listed financial institutions is 50% or more of the total value of all interests in the limited partnership; ( société en commandite de placement)   
  *invoice* includes a statement of account, a bill and any other similar record, regardless of its form or characteristics, and a cash register slip or receipt; (facture)   
  *listed financial institution* means a person referred to in paragraph 149(1)(a); (institution financière désignée)   
  *listed international agreement* means  
  (a) the Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time by a protocol, or other international instrument, as ratified by Canada, or 
  (b) a comprehensive tax information exchange agreement that Canada has entered into and that has effect, in respect of another country or jurisdiction; ( accord international désigné)   
  *management or administrative service* includes an asset management service; (service de gestion ou d’administration)   
  *master pension entity* of a pension plan means a person that is not a pension entity of the pension plan and that is  
  (a) a corporation described in paragraph 149(1)(o.2) of the Income Tax Act, one or more shares of which are owned by a pension entity of the pension plan, or  
  (b) a trust prescribed to be a master trust for the purposes of paragraph 149(1)(o.4) of the Income Tax Act, one or more units of which are owned by a pension entity of the pension plan; (entité de gestion principale)   
  *master pension factor* means, in respect of a pension plan for a fiscal year of a master pension entity, the amount (expressed as a percentage) determined by the formula  is the total value, on the first day of the fiscal year, of the units or shares of the master pension entity that are held by pension entities of the pension plan on that day, and is the total value, on the first day of the fiscal year, of the units or shares of the master pension entity; ( facteur d’entité de gestion principale)   
  *membership* includes a right granted by a particular person that entitles another person to services that are provided by, or to the use of facilities that are operated by, the particular person and that are not available, or are not available to the same extent or for the same fee or charge, to persons to whom such a right has not been granted, and also includes such a right that is conditional on the acquisition or ownership of a share, bond, debenture or other security; (droit d’adhésion)   
  *mineral* includes ammonite gemstone, bituminous sands, calcium chloride, coal, gravel, kaolin, oil shale, silica, sand and petroleum, natural gas and related hydrocarbons; (minéral)   
  *Minister* means the Minister of National Revenue; (ministre)   
  *mobile home* means a building, the manufacture and assembly of which is completed or substantially completed, that is equipped with complete plumbing, electrical and heating facilities and that is designed to be moved to a site for installation on a foundation and connection to service facilities and to be occupied as a place of residence, but does not include any travel trailer, motor home, camping trailer or other vehicle or trailer designed for recreational use; (maison mobile)   
  *money* includes any currency, cheque, promissory note, letter of credit, draft, traveller’s cheque, bill of exchange, postal note, money order, postal remittance and other similar instrument, whether Canadian or foreign, but does not include currency the fair market value of which exceeds its stated value as legal tender in the country of issuance or currency that is supplied or held for its numismatic value; (argent)   
  *month* means a period beginning on a particular day in a calendar month and ending on  
  (a) the day immediately before the day in the next calendar month that has the same calendar number as the particular day, or 
  (b) where the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month; ( mois)   
  *multiple unit residential complex* means a residential complex that contains more than one residential unit, but does not include a condominium complex; (immeuble d’habitation à logements multiples)   
  *municipality* means  
  (a) an incorporated city, town, village, metropolitan authority, township, district, county or rural municipality or other incorporated municipal body however designated, and 
  (b) such other local authority as the Minister may determine to be a municipality for the purposes of this Part; ( municipalité)   
  *mutual insurance federation* means a corporation each member of which is a mutual insurance corporation that is required, under an Act of the legislature of a province, to be a member of the corporation, but does not include a corporation the main purpose of which is  
  (a) related to automobile insurance, 
  (b) to provide compensation to insurance policy holders of, or claimants on, insolvent insurers, or 
  (c) to establish and manage a guarantee fund, cash reserve fund, mutual aid fund or similar fund for the benefit of its members and to provide financial assistance with regard to losses sustained on the winding-up or dissolution of its members; ( fédération de sociétés mutuelles d’assurance)   
  *mutual insurance group* means a group that consists of  
  (a) a mutual insurance federation and its members, 
  (b) where the members of the mutual insurance federation are the sole investors in an investment fund, that fund, and 
  (c) where there exists a mutual reinsurance corporation each member of which is a member of the mutual insurance federation and is not entitled to obtain reinsurance from any other reinsurance corporation, that mutual reinsurance corporation; ( regroupement de sociétés mutuelles d’assurance)   
  *Newfoundland offshore area* means the offshore area as defined in section 2 of the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act ; (zone extracôtière de Terre-Neuve)   
  *new harmonized value-added tax system* has the same meaning as in subsection 277.1(1); (nouveau régime de la taxe à valeur ajoutée harmonisée)   
  *non-participating province* means  
  (a) a province that is not a participating province, or 
  (b) another area in Canada that is outside the participating provinces; ( province non participante)   
  *non-profit organization* means a person (other than an individual, an estate, a trust, a charity, a public institution, a municipality or a government) that was organized and is operated solely for a purpose other than profit, no part of the income of which is payable to, or otherwise available for the personal benefit of, any proprietor, member or shareholder thereof unless the proprietor, member or shareholder is a club, a society or an association the primary purpose and function of which is the promotion of amateur athletics in Canada; (organisme à but non lucratif)   
  *non-resident* means not resident in Canada; (non résidant)   
  *Nova Scotia offshore area* means the offshore area as defined in section 2 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act ; (zone extracôtière de la Nouvelle-Écosse)   
  *office* has the meaning assigned by subsection 248(1) of the Income Tax Act, but does not include  
  (a) the position of trustee in bankruptcy, 
  (b) the position of receiver (including the position of a receiver within the meaning assigned by subsection 266(1)), or 
  (c) the position of trustee of a trust or personal representative of a deceased individual where the person who acts in that capacity is entitled to an amount for doing so that is included in computing, for the purposes of that Act, the person’s income or, where the person is an individual, the person’s income from a business; ( charge)   
  *officer* means a person who holds an office; (cadre)   
  *offshore activity* means  
  (a) when used in connection with an activity carried on in the Nova Scotia offshore area, an activity in respect of which tax would be imposed under section 212 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act if this Part were included in the definition Consumption Tax Acts in section 211 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act ; and  
  (b) when used in connection with an activity carried on in the Newfoundland offshore area, an activity in respect of which tax would be imposed under section 207 of the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act if this Part were included in the definition Consumption Tax Acts in section 206 of the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act ; (activité extracôtière)   
  *organizer* of a convention means a person who acquires the convention facility or related convention supplies and who organizes the convention for another person who is the sponsor of the convention; (organisateur)   
  *participating employer* of a pension plan means  
  (a) in the case of a registered pension plan, an employer that has made, or is required to make, contributions to the pension plan in respect of the employer’s employees or former employees, or payments under the pension plan to the employer’s employees or former employees, and includes an employer prescribed for the purposes of the definition participating employer in subsection 147.1(1) of the Income Tax Act, and  
  (b) in the case of a pooled registered pension plan, an employer that 
  (i) has made, or is required to make, contributions to the pension plan in respect of all or a class of its employees or former employees, or 
  (ii) has remitted, or is required to remit, to the PRPP administrator of the pension plan contributions made by members (as defined in subsection 147.5(1) of the Income Tax Act) of the pension plan under a contract with the PRPP administrator in respect of all or a class of its employees; (employeur participant)   
  *participating province* means  
  (a) a province or area referred to in Schedule VIII, but does not include the Nova Scotia offshore area or the Newfoundland offshore area except to the extent that offshore activities are carried on in that area, and 
  (b) if there is a sales tax harmonization agreement with the government of a province relating to the new harmonized value-added tax system and the province is a prescribed province, that province; ( province participante)   
  *passenger vehicle* means a passenger vehicle or a zero-emission passenger vehicle, as those terms are defined in subsection 248(1) of the Income Tax Act ; (voiture de tourisme)   
  *patronage dividend* means an amount that is deductible under section 135 of the Income Tax Act in computing, for the purposes of that Act, the income of the person paying the amount; (ristourne)   
  *pension entity* of a pension plan means a person in respect of the pension plan that is  
  (a) a trust governed by the pension plan, 
  (b) a corporation referred to in paragraph (b) of the definition pension plan, or  
  (c) a prescribed person; ( entité de gestion)   
  *pension plan* means a registered pension plan or a pooled registered pension plan  
  (a) that governs a trust, 
  (b) in respect of which a corporation 
  (i) is incorporated and operated either 
  (A) solely for the administration of the plan, or 
  (B) for the administration of the plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement (as defined in subsection 248(1) of the Income Tax Act), where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the plan,  
  (ii) in the case of a registered pension plan, is accepted by the Minister, under subparagraph 149(1)(o.1)(ii) of the Income Tax Act, as a funding medium for the purpose of the registration of the plan under that Act, and  
  (iii) in the case of a pooled registered pension plan, is a corporation 
  (A) that is described in paragraph 149(1)(o.2) of the Income Tax Act, and  
  (B) all of the shares, and rights to acquire shares, of the capital stock of which are owned, at all times since the date on which it was incorporated, by the plan, or 
  (c) in respect of which a person is prescribed for the purposes of the definition pension entity ; (régime de pension)   
  *permanent establishment*, in respect of a particular person, means  
  (a) a fixed place of business of the particular person, including 
  (i) a place of management, a branch, an office, a factory or a workshop, and 
  (ii) a mine, an oil or gas well, a quarry, timberland or any other place of extraction of natural resources, through which the particular person makes supplies, or 
  (b) a fixed place of business of another person (other than a broker, general commission agent or other independent agent acting in the ordinary course of business) who is acting in Canada on behalf of the particular person and through whom the particular person makes supplies in the ordinary course of business; ( établissement stable)   
  *person* means an individual, a partnership, a corporation, the estate of a deceased individual, a trust, or a body that is a society, union, club, association, commission or other organization of any kind; (personne)   
  *personal property* means property that is not real property; (bien meuble)   
  *personal representative*, of a deceased individual or the estate of a deceased individual, means the executor of the individual’s will, the liquidator of the individual’s succession, the administrator of the estate or any person who is responsible under the appropriate law for the proper collection, administration, disposition and distribution of the assets of the estate; (représentant personnel)   
  *personal trust* means  
  (a) a testamentary trust, or 
  (b) an inter vivos trust that is a personal trust (within the meaning assigned by subsection 248(1) of the Income Tax Act) all the beneficiaries (other than contingent beneficiaries) of which are individuals and all the contingent beneficiaries of which, if any, are individuals, charities or public institutions; (fiducie personnelle)   
  *place of amusement* means any premises or place, whether or not enclosed, at or in any part of which is staged or held any  
  (a) film, slide show, sound and light or similar presentation, 
  (b) artistic, literary, theatrical, musical or other performance, entertainment or exhibition, 
  (c) fair, circus, menagerie, rodeo or similar event, or 
  (d) race, game of chance, athletic contest or other contest or game, and includes a museum, historical site, zoo, wildlife or other park, place where bets are placed and any place, structure, apparatus, machine or device the purpose of which is to provide any type of amusement or recreation; ( lieu de divertissement)   
  *pooled registered pension plan* has the same meaning as in paragraph 149(5)(a); (régime de pension agréé collectif)   
  *precious metal* means a bar, ingot, coin or wafer that is composed of gold, silver or platinum and that is refined to a purity level of at least  
  (a) 99.5% in the case of gold and platinum, and 
  (b) 99.9% in the case of silver; ( métal précieux)   
  *prescribed* means  
  (a) in the case of a form or the manner of filing a form, authorized by the Minister, 
  (b) in the case of the information to be given on a form, specified by the Minister, 
  (c) in the case of the manner of making or filing an election, authorized by the Minister, and 
  (d) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation; ( Version anglaise seulement)   
  *property* means any property, whether real or personal, movable or immovable, tangible or intangible, corporeal or incorporeal, and includes a right or interest of any kind, a share and a chose in action, but does not include money; (bien)   
  *province* includes a participating province; (province)   
  *PRPP administrator* of a pooled registered pension plan has the meaning assigned by the definition 
  *administrator* in subsection 147.5(1) of the Income Tax Act ; (administrateur de RPAC)   
  *public college* means an organization that operates a post-secondary college or post-secondary technical institute  
  (a) that receives from a government or a municipality funds that are paid for the purpose of assisting the organization in the ongoing provision of educational services to the general public, and 
  (b) the primary purpose of which is to provide programs of instruction in one or more fields of vocational, technical or general education; ( collège public)   
  *public institution* means a registered charity (within the meaning assigned by subsection 248(1) of the Income Tax Act) that is a school authority, a public college, a university, a hospital authority or a local authority determined under paragraph (b) of the definition municipality to be a municipality; (institution publique)   
  *public sector body* means a government or a public service body; (organisme du secteur public)   
  *public service body* means a non-profit organization, a charity, a municipality, a school authority, a hospital authority, a public college or a university; (organisme de services publics)   
  *qualifying subsidiary* of a particular corporation means another corporation in respect of which the particular corporation holds qualifying voting control and owns 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 corporation, and includes  
  (a) a corporation that is a qualifying subsidiary of a qualifying subsidiary of the particular corporation, 
  (b) where the particular corporation is a credit union, every other credit union, and 
  (c) where the particular corporation is a member of a mutual insurance group, every other member of that group; ( filiale déterminée)   
  *real property* includes  
  (a) in respect of property in the Province of Quebec, immovable property and every lease thereof, 
  (b) in respect of property in any other place in Canada, messuages, lands and tenements of every nature and description and every estate or interest in real property, whether legal or equitable, and 
  (c) a mobile home, a floating home and any leasehold or proprietary interest therein; ( immeuble)   
  *recipient* of a supply of property or a service means  
  (a) where consideration for the supply is payable under an agreement for the supply, the person who is liable under the agreement to pay that consideration, 
  (b) where paragraph (a) does not apply and consideration is payable for the supply, the person who is liable to pay that consideration, and 
  (c) where no consideration is payable for the supply, 
  (i) in the case of a supply of property by way of sale, the person to whom the property is delivered or made available, 
  (ii) in the case of a supply of property otherwise than by way of sale, the person to whom possession or use of the property is given or made available, and 
  (iii) in the case of a supply of a service, the person to whom the service is rendered, and any reference to a person to whom a supply is made shall be read as a reference to the recipient of the supply; ( acquéreur)   
  *record* includes an account, an agreement, a book, a chart or table, a diagram, a form, an image, an invoice, a letter, a map, a memorandum, a plan, a return, a statement, a telegram, a voucher, and any other thing containing information, whether in writing or in any other form; (registre)   
  *registered pension plan* has the same meaning as in paragraph 149(5)(a); (régime de pension agréé)   
  *registrant* means a person who is registered, or who is required to be registered, under Subdivision D of Division V; (inscrit)   
  *related convention supplies* means property or services acquired, imported or brought into a participating province by a person exclusively for consumption, use or supply by the person in connection with a convention, but does not include  
  (a) transportation services, other than a chartered service acquired by the person solely for the purpose of transporting attendees of the convention between any of the convention facilities, places of lodging of the attendees or transportation terminals, 
  (b) entertainment, 
  (c) except for the purposes of subsection 167.2(1) and section 252.4, property or services that are food or beverages or are supplied to the person under a contract for catering, or 
  (d) property or services supplied by the person in connection with the convention for consideration that is separate from the consideration for the admission to the convention, unless the recipient of the supply is acquiring the property or services exclusively for consumption or use in the course of promoting, at the convention, property or services supplied by, or a business of, the recipient; ( fournitures liées à un congrès)   
  *release* has the same meaning as in the Customs Act ; (dédouanement)   
  *reporting period* of a person means the reporting period of the person as determined under sections 211.18 and 245 to 251; (période de déclaration)   
  *residential complex* means  
  (a) that part of a building in which one or more residential units are located, together with 
  (i) that part of any common areas and other appurtenances to the building and the land immediately contiguous to the building that is reasonably necessary for the use and enjoyment of the building as a place of residence for individuals, and 
  (ii) that proportion of the land subjacent to the building that that part of the building is of the whole building, 
  (b) that part of a building that is 
  (i) the whole or part of a semi-detached house, rowhouse unit, residential condominium unit or other similar premises that is, or is intended to be, a separate parcel or other division of real property owned, or intended to be owned, apart from any other unit in the building, and 
  (ii) a residential unit, together with that proportion of any common areas and other appurtenances to the building and the land subjacent or immediately contiguous to the building that is attributable to the unit and that is reasonably necessary for its use and enjoyment as a place of residence for individuals, 
  (c) the whole of a building described in paragraph (a), or the whole of a premises described in subparagraph (b)(i), that is owned by or has been supplied by way of sale to an individual and that is used primarily as a place of residence of the individual, an individual related to the individual or a former spouse or common-law partner of the individual, together with 
  (i) in the case of a building described in paragraph (a), any appurtenances to the building, the land subjacent to the building and that part of the land immediately contiguous to the building, that are reasonably necessary for the use and enjoyment of the building, and 
  (ii) in the case of a premises described in subparagraph (b)(i), that part of any common areas and other appurtenances to the building and the land subjacent or immediately contiguous to the building that is attributable to the unit and that is reasonably necessary for the use and enjoyment of the unit, 
  (d) a mobile home, together with any appurtenances to the home and, where the home is affixed to land (other than a site in a residential trailer park) for the purpose of its use and enjoyment as a place of residence for individuals, the land subjacent or immediately contiguous to the home that is attributable to the home and is reasonably necessary for that purpose, and 
  (e) a floating home, but does not include a building, or that part of a building, that is a hotel, a motel, an inn, a boarding house, a lodging house or other similar premises, or the land and appurtenances attributable to the building or part, where the building is not described in paragraph (c) and all or substantially all of the leases, licences or similar arrangements, under which residential units in the building or part are supplied, provide, or are expected to provide, for periods of continuous possession or use of less than sixty days; ( immeuble d’habitation)   
  *residential condominium unit* means a residential complex that is, or is intended to be, a bounded space in a building designated or described as a separate unit on a registered condominium or strata lot plan or description, or a similar plan or description registered under the laws of a province, and includes any interest in land pertaining to ownership of the unit; (logement en copropriété)   
  *residential trailer park* of a person means the land that is included in a trailer park of the person or, where the person has two or more trailer parks that are immediately contiguous to each other, the land that is included in those contiguous trailer parks, and any buildings, fixtures and other appurtenances to the land that are reasonably necessary for  
  (a) the use and enjoyment of sites in the trailer parks by individuals residing in or occupying mobile homes, or travel trailers, motor homes or similar vehicles or trailers, situated or to be situated on those sites, or 
  (b) the purpose of engaging in the business of supplying those sites by way of lease, licence or similar arrangement, but does not include such land and appurtenances or any part of them unless the land encompasses at least two sites and all or substantially all of the sites in the trailer parks 
  (c) are supplied, or are intended to be supplied, under a lease, licence or similar arrangement under which continuous possession or use of a site is provided for a period of at least 
  (i) one month, in the case of a mobile home or other residential unit, and 
  (ii) twelve months, in the case of a travel trailer, motor home or similar vehicle or trailer that is not a residential unit, and 
  (d) if the sites were occupied by mobile homes, would be suitable for use by individuals as places of residence throughout the year; ( parc à roulottes résidentiel)   
  *residential unit* means  
  (a) a detached house, semi-detached house, rowhouse unit, condominium unit, mobile home, floating home or apartment, 
  (b) a suite or room in a hotel, a motel, an inn, a boarding house or a lodging house or in a residence for students, seniors, individuals with a disability or other individuals, or 
  (c) any other similar premises, or that part thereof that 
  (d) is occupied by an individual as a place of residence or lodging, 
  (e) is supplied by way of lease, licence or similar arrangement for the occupancy thereof as a place of residence or lodging for individuals, 
  (f) is vacant, but was last occupied or supplied as a place of residence or lodging for individuals, or 
  (g) has never been used or occupied for any purpose, but is intended to be used as a place of residence or lodging for individuals; ( habitation)   
  *sale*, in respect of property, includes any transfer of the ownership of the property and a transfer of the possession of the property under an agreement to transfer ownership of the property; (vente)   
  *sales tax harmonization agreement* has the same meaning as in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act ; (accord d’harmonisation de la taxe de vente)   
  *school authority* means an organization that operates an elementary or secondary school in which it provides instruction that meets the standards of educational instruction established by the government of the province in which the school is operated; (administration scolaire)   
  *secured creditor* means  
  (a) a particular person who has a security interest in the property of another person, or 
  (b) a person who acts for or on behalf of the particular person with respect to the security interest and includes 
  (i) a trustee appointed under a trust deed relating to a security interest, 
  (ii) a receiver or receiver-manager appointed by the particular person or appointed by a court on the application of the particular person, 
  (iii) a sequestrator, or 
  (iv) any other person performing a function similar to that of a person referred to in any of subparagraphs (i) to (iii); ( créancier garanti)   
  *security interest* means any interest in property that secures payment or performance of an obligation, and includes an interest created by or arising out of a debenture, mortgage, hypothec, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind whatever, however or whenever arising, created, deemed to arise or otherwise provided for; (droit en garantie)   
  *segregated fund* of an insurer means a specified group of properties that is held in respect of insurance policies all or part of the reserves for which vary in amount depending on the fair market value of the properties; (fonds réservé)   
  *selected listed financial institution* means, at any time, a listed financial institution who is at that time a selected listed financial institution under subsection 225.2(1); (institution financière désignée particulière)   
  *self-contained domestic establishment* has the meaning assigned by subsection 248(1) of the Income Tax Act ; (établissement domestique autonome)   
  *service* means anything other than  
  (a) property, 
  (b) money, and 
  (c) anything that is supplied to an employer by a person who is or agrees to become an employee of the employer in the course of or in relation to the office or employment of that person; ( service)   
  *short-term accommodation* means a residential complex or a residential unit that is supplied to a recipient by way of lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence or lodging, if the period throughout which the individual is given continuous occupancy of the complex or unit is less than one month and, for the purposes of section 252.4,  
  (a) includes any type of overnight shelter (other than shelter on a train, trailer, boat or structure that has means of, or is capable of being readily adapted for, self-propulsion) when supplied as part of a tour package (within the meaning assigned by subsection 163(3)) that also includes food and the services of a guide, and 
  (b) does not include a complex or unit when it 
  (i) is supplied to the recipient under a timeshare arrangement, or 
  (ii) is included in that part of a tour package that is not the taxable portion of the tour package (within the meaning assigned to those expressions by subsection 163(3)); ( logement provisoire)   
  *single unit residential complex* means a residential complex that does not contain more than one residential unit, but does not include a residential condominium unit; (immeuble d’habitation à logement unique)   
  *small supplier*, at any time, means a person who is at that time a small supplier under section 148 or 148.1; (petit fournisseur)   
  *specified Crown agent* means  
  (a) a prescribed agent of Her Majesty in right of Canada, or 
  (b) an agent of Her Majesty in right of a province 
  (i) that pays tax because of an agreement under section 32 of the Federal-Provincial Fiscal Arrangements Act entered into by the government of the province, or  
  (ii) that is prescribed; ( mandataire de la Couronne désigné)   
  *specified motor vehicle* means  
  (a) goods that are or would, if they were imported, be classified under any of tariff item 8701.20.00, subheading Nos. 8701.30 and 8701.90, heading No. 87.02, tariff item 8703.10.10, subheading Nos. 8703.21 to 8703.90 and 8704.21 to 8704.90, heading 87.05, tariff items 8711.20.00 to 8711.90.00 and 8713.90.00, 8716.10.21, 8716.10.29 and 8716.39.30 to 8716.40.00 and subheading No. 8716.80 of Schedule I to the Customs Tariff, other than racing cars classified under heading No. 87.03 of that Schedule and prescribed motor vehicles, and  
  (b) prescribed motor vehicles; ( véhicule à moteur déterminé)   
  *specified tangible personal property* means property that is, or is an interest in,  
  (a) a print, an etching, a drawing, a painting, a sculpture or other similar work of art, 
  (b) jewellery, 
  (c) a rare folio, a rare manuscript or a rare book, 
  (d) a stamp, 
  (e) a coin, or 
  (f) prescribed personal property; ( bien meuble corporel désigné)   
  *sponsor* of a convention means the person who convenes the convention and supplies admissions to it; (promoteur)   
  *straddle plant* means a natural gas processing plant devoted primarily to the recovery of natural gas liquids or ethane from natural gas that is transported by pipeline to the plant by a common carrier of natural gas; (installation de traitement complémentaire)   
  *substantial renovation* of a residential complex means the renovation or alteration of the whole or that part of a building, as described in whichever of paragraphs (a) to (e) of the definition residential complex is applicable to the residential complex, in which one or more residential units are located to such an extent that all or substantially all of the building or part, as the case may be, other than the foundation, external walls, interior supporting walls, floors, roof, staircases and, in the case of that part of a building described in paragraph (b) of that definition, the common areas and other appurtenances, that existed immediately before the renovation or alteration was begun has been removed or replaced if, after completion of the renovation or alteration, the building or part, as the case may be, is, or forms part of, a residential complex; (rénovations majeures)   
  *Superintendent* means the Superintendent of Financial Institutions appointed pursuant to the Office of the Superintendent of Financial Institutions Act ; (surintendant)   
  *supplier*, in respect of a supply, means the person making the supply; (Version anglaise seulement)   
  *supply* means, subject to sections 133 and 134, the provision of property or a service in any manner, including sale, transfer, barter, exchange, licence, rental, lease, gift or disposition; (fourniture)   
  *tax* means tax payable under this Part; (taxe)   
  *taxable supply* means a supply that is made in the course of a commercial activity; (fourniture taxable)   
  *taxation year* of a person means  
  (a) where the person is a taxpayer, within the meaning of that term in the Income Tax Act (other than an unincorporated person exempt because of subsection 149(1) of that Act from tax under Part I of that Act on all or part of the person’s taxable income), the taxation year of the person for the purposes of that Act,  
  (b) where the person is a partnership described in subparagraph 249.1(1)(b)(ii) of that Act, the fiscal period of the person’s business determined under subsection 249.1(1) of that Act, and 
  (c) in any other case, the period that would be the taxation year of the person for the purposes of that Act if the person were a corporation other than a professional corporation (within the meaning assigned by subsection 248(1) of that Act); ( année d’imposition)   
  *Tax Court* means the Tax Court of Canada; (Version anglaise seulement)   
  *tax fraction* [Repealed, 1997, c. 10, s. 150]   
  *taxi business* means  
  (a) a business carried on in Canada of transporting passengers by taxi or other similar vehicle for fares that are regulated under the laws of Canada or a province, or 
  (b) a business carried on in Canada by a person of transporting passengers for fares by motor vehicle — being a vehicle that would be an automobile, as defined in subsection 248(1) of the Income Tax Act, if that definition were read without reference to “a motor vehicle acquired primarily for use as a taxi,” in its paragraph (c) and without reference to its paragraph (e) — within a particular municipality and its environs if the transportation is arranged or coordinated through an electronic platform or system, other than  
  (i) the part of the business that does not involve the making of taxable supplies by the person, 
  (ii) the part of the business that is the operation of a sightseeing service or the school transportation of elementary or secondary students, or 
  (iii) a prescribed business or a prescribed activity of a business; ( entreprise de taxis)   
  *tax rate*, for or in relation to a participating province, means  
  (a) if there is a sales tax harmonization agreement with the government of the participating province relating to the new harmonized value-added tax system, the rate that is prescribed for the participating province, 
  (b) if the participating province is an offshore area referred to in the definition participating province, the rate that is prescribed for the participating province, and  
  (c) in the absence of a rate that is prescribed for the participating province, the rate set opposite the name of the participating province in Schedule VIII; ( taux de taxe)   
  *telecommunication service* means  
  (a) the service of emitting, transmitting or receiving signs, signals, writing, images or sounds or intelligence of any nature by wire, cable, radio, optical or other electromagnetic system, or by any similar technical system, or 
  (b) making available for such emission, transmission or reception telecommunications facilities of a person who carries on the business of supplying services referred to in paragraph (a); ( service de télécommunication)   
  *telecommunications facility* means any facility, apparatus or other thing (including any wire, cable, radio, optical or other electromagnetic system, or any similar technical system, or any part thereof) that is used or is capable of being used for telecommunications; (installation de télécommunication)   
  *testamentary trust* has the meaning assigned by subsection 248(1) of the Income Tax Act ; (fiducie testamentaire)   
  *trailer park* of a person means a piece of land that is owned by or leased to the person and that is exclusively composed of  
  (a) one or more sites each of which is, or is intended to be, supplied by the person by way of lease, licence or similar arrangement to the owner, lessee or person in occupation or possession of a mobile home, or a travel trailer, motor home or similar vehicle or trailer, situated or to be situated on the site, and 
  (b) other land that is reasonably necessary for 
  (i) the use and enjoyment of the sites by individuals residing in or occupying mobile homes, or travel trailers, motor homes or similar vehicles or trailers, situated or to be situated on those sites, or 
  (ii) the purpose of engaging in the business of supplying the sites by way of lease, licence or similar arrangement; ( parc à roulottes)   
  *university* means a recognized degree-granting institution or an organization that operates a college affiliated with, or a research body of, such an institution; (université)   
  *used tangible personal property* means tangible personal property that has been used in Canada; (bien meuble corporel d’occasion)   
  *virtual payment instrument* means property that is a digital representation of value, that functions as a medium of exchange and that only exists at a digital address of a publicly distributed ledger, other than property that  
  (a) confers a right, whether immediate or future and whether absolute or contingent, to be exchanged or redeemed for money or specific property or services or to be converted into money or specific property or services, 
  (b) is primarily for use within, or as part of, a gaming platform, an affinity or rewards program or a similar platform or program, or 
  (c) is prescribed property; ( effet de paiement virtuel)   
  *zero-rated supply* means a supply included in Schedule VI. (fourniture détaxée)  
  
  ### Meaning of Canada 
  
  (2) Subject to subsection (3), in this Part, 
  *Canada* includes  
  (a) the sea bed and subsoil of the submarine areas adjacent to the coasts of Canada in respect of which the government of Canada or of a province may grant a right, licence or privilege to explore for or exploit any minerals; and 
  (b) the seas and airspace above the submarine areas referred to in paragraph (a) in respect of any activities carried on in connection with the exploration for or exploitation of minerals. 
  
  ### Idem
  
  (3) In or in respect of Division III, Canada has the same meaning as in the Customs Act.  
  
  ### Application of provisions to schedules
  
  (4) Any provision of this Part that applies for the purposes of this Part also applies for the purposes of Schedules V to X. 
  
  ### Compound interest
  
  124 (1) Interest computed at a prescribed rate and any penalty computed at a rate per year under any provision of this Part shall be compounded daily. 
  
  ### Idem
  
  (2) Where, on any day, both penalty computed at a rate per year and interest are required to be compounded, they shall, on that day, be compounded together at a single rate equal to the total of the penalty rate and the interest rate as though both the penalty and interest were interest computed at that single rate. 
  
  ### Application of interest
  
  (3) Where an amendment to this Part, or an amendment or an enactment that relates to this Part, 
  (a) applies to a person who did something or to or for whom something was done, 
  (b) applies to property or a service that was supplied or in respect of which something was done, 
  (c) applies to an event or a transaction that occurred, 
  (d) applies to a period all or part of which is, or 
  (e) comes into force on a particular day that is, before the day the amendment or enactment is assented to or promulgated, for the purposes of applying the provisions of this Part that relate to or that provide for the payment, or the liability for payment, of interest in respect of any amount, the amount shall be determined and interest shall be computed thereon as though the amendment or enactment had been assented to or promulgated before the thing was done, the supply was made, the occurrence of the event or transaction, the beginning of the period or the particular day, as the case may be. 
  
  ### Exception
  
  (4) Subsection (3) does not apply for the purposes of computing any penalties under this Part. 
  
  ### Negative amounts
  
  125 Except as specifically otherwise provided, where an amount or a number is required under this Part to be determined or calculated by or in accordance with an algebraic formula, if the amount or number when so determined or calculated would, but for this section, be a negative amount or number, it shall be deemed to be nil. 
  
  ## Relationships, Associations, Separate Persons and Residence 
  
  ### Arm’s length
  
  126 (1) For the purposes of this Part, related persons shall be deemed not to deal with each other at arm’s length and it is a question of fact whether persons not related to each other were, at any particular time, dealing with each other at arm’s length. 
  
  ### Related persons
  
  (2) Persons are related to each other for the purposes of this Part if, by reason of subsections 251(2) to (6) of the Income Tax Act, they are related to each other for the purposes of that Act.  
  
  ### Idem
  
  (3) For the purposes of this Part, a member of a partnership shall be deemed to be related to the partnership. 
  
  ### Associated persons
  
  127 (1) A particular corporation is associated with another corporation for the purposes of this Part if, by reason of subsections 256(1) to (6) of the Income Tax Act, the particular corporation is associated with the other corporation for the purposes of that Act.  
  
  ### Idem
  
  (2) A person other than a corporation is associated with a particular corporation for the purposes of this Part if the particular corporation is controlled by the person or by a group of persons of which the person is a member and each of whom is associated with each of the others. 
  
  ### Idem
  
  (3) For the purposes of this Part, a person is associated with 
  (a) a partnership if the total of the shares of the profits of the partnership to which the person and all other persons who are associated with the person are entitled is more than half of the total profits of the partnership, or would be more than half of the total profits of the partnership if it had profits; and 
  (b) a trust if the total of the values of the interests in the trust of the person and all other persons who are associated with the person is more than half of the total value of all interests in the trust. 
  
  ### Idem
  
  (4) For the purposes of this Part, a person is associated with another person if each of them is associated with the same third person. 
  
  ### Closely related corporation
  
  128 (1) For the purposes of this Part, a particular corporation and another corporation are closely related to each other at any time if at that time 
  (a) qualifying voting control in respect of the other 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 other corporation are owned by, 
  (i) the particular corporation, 
  (ii) a qualifying subsidiary of the particular corporation, 
  (iii) a corporation of which the particular corporation is a qualifying subsidiary, 
  (iv) a qualifying subsidiary of a corporation of which the particular corporation is a qualifying subsidiary, or 
  (v) any combination of the corporations or subsidiaries referred to in subparagraphs (i) to (iv); or 
  (vi)  [Repealed, 1993, c. 27, s. 12]  
  (b) the other corporation is a prescribed corporation in relation to the particular corporation. 
  
  ### Qualifying voting control
  
  (1.1) For the purposes of this Part, a person or a group of persons holds qualifying voting control in respect of a corporation at any time if at that time 
  (a) the person, or the members of the group collectively, as the case may be, own shares of the corporation to which are attached not less than 90% of the shareholder votes that may be cast in respect of each matter, other than a matter 
  (i) for which a statute of a country, or of a state, province, or other political subdivision of a country, that applies to the corporation provides, in respect of the vote of the shareholders of the corporation on the matter, that 
  (A) any shareholder of the corporation has voting rights that are different from the voting rights that the shareholder would otherwise have under the letters patent, instrument of continuance or other constating instrument by which the corporation was incorporated or continued, including any amendment to, or restatement of, the constating instrument, or 
  (B) holders of a class or series of shares of the corporation are entitled to vote separately as a class or series, or 
  (ii) that is a prescribed matter or a matter that meets prescribed conditions or arises in prescribed circumstances; or 
  (b) the person or group, as the case may be, is a prescribed person or group in relation to the corporation. 
  
  ### Corporations closely related to the same corporation
  
  (2) If under subsection (1) two corporations are closely related to the same corporation, they are closely related to each other for the purposes of this Part. 
  
  ### Investment funds
  
  (3) For the purposes of this section, an investment fund that is a member of a mutual insurance group is deemed to be a corporation. 
  
  ### Voting right controlled by another person
  
  (4) For the purposes of subsection (1.1), a particular person is deemed not to own a share at a particular time if 
  (a) another person has a right under a contract, in equity or otherwise, either immediately or in the future and either absolutely or contingently, to control the voting rights attached to the share, unless the right is not exercisable at the particular time because its exercise is contingent on the death, bankruptcy or permanent disability of an individual; and 
  (b) the other person is not closely related to the particular person at the particular time. 
  
  ### Meaning of 
  *small supplier division* 
  
  129 (1) In this section and section 129.1, 
  *small supplier division* of a public service body, at any time, means a branch or division of the body that, at that time,  
  (a) is a branch or division designated by the Minister as an eligible division for the purposes of this section; and 
  (b) would be a small supplier under section 148 if 
  (i) the branch or division were a person separate from the body and its other branches or divisions, 
  (ii) the branch or division were not associated with any other person, and 
  (iii) every supply made by the body through the branch or division were made by the branch or division. 
  
  ### Branches of public service bodies
  
  (2) A public service body that is engaged in one or more activities in separate branches or divisions may apply to the Minister, in prescribed form containing prescribed information, to have a branch or division specified in the application designated by the Minister as an eligible division for the purposes of this section. 
  
  ### Designation by Minister
  
  (3) Where the Minister receives an application under subsection (2), the Minister may, by notice in writing, designate a branch or division specified in the application as an eligible division for the purposes of this section, effective on a day specified in the notice, if the Minister is satisfied that 
  (a) the branch or division can be separately identified by reference to its location or the nature of the activities engaged in by it; 
  (b) separate records, books of account and accounting systems are maintained in respect of the branch or division; and 
  (c) a revocation under subsection (4) pursuant to a request made by the body in respect of the branch or division has not become effective in the 365-day period ending on that day. 
  
  ### Revocation of designation
  
  (4) The Minister may, in writing, revoke a designation under subsection (3) of a branch or division of a public service body where the conditions described in paragraph (3)(a) or (b) are no longer met in respect of the branch or division or the body makes a request in writing to the Minister that the designation be revoked. 
  
  ### Notice of revocation
  
  (5) Where, under subsection (4), the Minister revokes a designation of a branch or division of a public service body, the Minister shall send a notice in writing of the revocation to the body and shall specify in the notice the effective date of the revocation. 
  
  ### Supply of property on becoming a small supplier division
  
  (6) For the purposes of this Part, where a branch or division of a public service body that is a registrant becomes at any time a small supplier division and the body does not, at that time, cease to be a registrant, the body shall be deemed 
  (a) to have made, immediately before that time, a supply of each of its properties, other than capital property or an improvement thereto, that was held immediately before that time for consumption, use or supply in the course of commercial activities of the body and that the body begins, immediately after that time, to hold for consumption, use or supply primarily in the course of activities engaged in by the body through its small supplier divisions; and 
  (b) except where the supply is an exempt supply, to have collected, immediately before that time, tax in respect of the supply equal to the total of all input tax credits in respect of the property that the body was entitled to claim at or before that time. 
  
  ### Services and rented properties on becoming a small supplier division
  
  (7) Where, 
  (a) at any time in a particular reporting period of a public service body that is a registrant, a branch or division of the body becomes a small supplier division, 
  (b) the body does not, at that time, cease to be a registrant, and 
  (c) in or before that period, tax became payable, or was paid without having become payable, by the body and is calculated on consideration, or a part thereof, 
  (i) that is a rent, royalty or similar payment in respect of property and that is reasonably attributable to a period (in this subsection referred to as the “lease period”) after that time, or 
  (ii) that is reasonably attributable to services that are to be rendered after that time, the following rules apply: 
  (d) there shall not be included, in determining the input tax credits in respect of that tax that are claimed by the body in the return under section 238 for that or any subsequent reporting period, any portion of the amount determined by the formula is that tax, and is the extent (expressed as a percentage) to which the property is used by the body during the lease period, or the services were acquired or imported by the body for consumption, use or supply, in the course of activities engaged in by the body through the branch or division, and 
  (e) where all or any portion of the amount determined under paragraph (d) was included in determining an input tax credit claimed by the body in a return under section 238 for a reporting period of the body ending before the particular reporting period, that amount or portion thereof shall be added in determining the net tax for the particular reporting period. 
  
  ### Supply by small supplier division
  
  129.1 (1) If a public service body makes a taxable supply through a branch or division of the body and the consideration or a part of the consideration for the supply becomes due to the body at a time when the branch or division is a small supplier division or is paid to the body at such a time without having become due, the consideration or the part of the consideration, as the case may be, shall not be included in calculating the tax payable in respect of the supply or in determining a threshold amount of the body under section 249 and that supply is, for the purposes of this Part, deemed not to have been made by a registrant, except if the supply is 
  (a) a supply by way of sale of real property; 
  (b) a supply by way of sale of personal property by a municipality that is capital property of the municipality; or 
  (c) a supply by way of sale of designated municipal property of a person designated to be a municipality for the purposes of section 259 that is capital property of the person. 
  
  ### Restriction on input tax credits for purchases
  
  (2) In determining an input tax credit of a public service body, there shall not be included an amount in respect of tax that, at any time after March 27, 1991, became payable, or was paid without having become payable, by the body, to the extent that the tax 
  (a) is in respect of property (other than capital property or improvements thereto) acquired, imported or brought into a participating province by the body for the purpose of consumption, use or supply in the course of activities engaged in by the body through a small supplier division of the body; or 
  (b) is calculated on consideration, or a part thereof, that is reasonably attributable to services that were, before that time, consumed, used or supplied by the body in the course of activities engaged in by the body through a small supplier division of the body or that are, at that time, intended to be so consumed, used or supplied. 
  (3)  [Repealed, 1997, c. 10, s. 151]  
  
  ### Change in use of non-capital property
  
  (4) Where 
  (a) at any time after March 27, 1991, a public service body that is a registrant begins to hold property of the body (other than capital property) for consumption, use or supply primarily in the course of activities engaged in by the body through its small supplier divisions, and 
  (b) immediately before that time, the body was holding the property for consumption, use or supply 
  (i) in the course of commercial activities of the body, and 
  (ii) otherwise than primarily in the course of activities engaged in by the body through its small supplier divisions, except where subsection 129(6) or 171(3) applies, the body shall be deemed to have made, immediately before that time, a supply of the property and, except where the supply is an exempt supply, to have collected, immediately before that time, tax in respect of the supply equal to the total of all input tax credits in respect of the property that the body was entitled to claim at or before that time. 
  
  ### Idem
  
  (5) Where 
  (a) a public service body begins, at any time after March 27, 1991, to hold property of the body (other than capital property) for consumption, use or supply primarily in the course of activities engaged in by the body otherwise than through its small supplier divisions, 
  (b) immediately before that time the property was held by the body for consumption, use or supply primarily in the course of activities engaged in by the body through its small supplier divisions, and 
  (c) immediately after that time the property is held by the body for consumption, use or supply in the course of commercial activities engaged in by the body otherwise than through its small supplier divisions, except where subsection 171(1) applies, for the purpose of determining an input tax credit of the body, it shall be deemed to have received a supply of the property and to have paid, at that time, tax in respect of the supply equal to the lesser of 
  (d) the amount, if any, by which 
  (i) the total of all amounts each of which is tax that, before that time, was paid or became payable by the body in respect of the last acquisition or importation of the property by the body or that was deemed under subsection 129(6) to have been collected by the body in respect of the property exceeds 
  (ii) the total of all input tax credits and rebates that the body was entitled to claim under this Part before that time in respect of that acquisition or importation, and 
  (e) tax calculated on the fair market value of the property at that time. 
  
  ### Use of capital property
  
  (6) For the purposes of determining an input tax credit in respect of capital property of a public service body and for the purposes of Subdivision D of Division II, an activity engaged in by a public service body shall be deemed not to be a commercial activity of the body to the extent that the activity is engaged in through a small supplier division of the body. 
  
  ### Application of change in use rules
  
  (7) Subsections 200(2) and 206(4) and (5) do not apply to a public service body in respect of a reduction in the extent to which property is used in commercial activities of the body where the reduction in use occurs 
  (a) before March 28, 1991; and 
  (b) as a result of the application of subsection (6) but not as a result of a branch or division of the body becoming a small supplier division. 
  
  ### Members of unincorporated organizations
  
  130 (1) Where a particular unincorporated organization is a member of another unincorporated organization, the particular organization and the other organization may apply jointly to the Minister, in prescribed form containing prescribed information, to have the particular organization deemed to be a branch of the other organization and not to be a separate person. 
  
  ### Approval by Minister
  
  (2) Where the Minister receives an application under subsection (1) in respect of a particular organization that is a member of another organization and is satisfied that it is appropriate, for the purposes of this Part, to approve the application, the Minister may, in writing, approve the application and, subject to subsection (3), the particular organization shall, for the purposes of this Part (other than the purposes for which the particular organization is deemed under subsection 129(2) to be a separate person), be deemed to be a branch of the other organization and not to be a separate person. 
  
  ### Revocation of approval
  
  (3) Where 
  (a) the Minister has approved an application made under subsection (1) in respect of a particular organization that is a member of another organization, and 
  (b) either the particular organization or the other organization requests the Minister in writing to revoke the approval, the Minister may revoke the approval and thereafter the particular organization shall be deemed to be a separate person and not to be a branch of the other organization. 
  
  ### Notice of revocation
  
  (4) Where under subsection (3) the Minister revokes an approval, the Minister shall send a notice in writing of the revocation to the organizations affected and shall specify therein the effective date of the revocation. 
  
  ### Arrangements deemed to be trusts
  
  130.1 If an arrangement is deemed to be a trust under paragraph 248(3)(b) or (c) of the Income Tax Act, the following rules apply for the purposes of this Part:  
  (a) the arrangement is deemed to be a trust; 
  (b) property subject to rights and obligations under the arrangement is deemed to be held in trust and not otherwise; 
  (c) in the case of an arrangement referred to in paragraph 248(3)(b) of that Act, a person that has a right (whether immediate or future and whether absolute or contingent) to receive all or part of the income or capital in respect of property that is referred to in that paragraph is deemed to be beneficially interested in the trust; and 
  (d) in the case of an arrangement referred to in paragraph 248(3)(c) of that Act, any property contributed at any time to the arrangement by an annuitant, a holder or a subscriber of the arrangement, as the case may be, is deemed to have been transferred, at that time, to the trust by the contributor. 
  
  ### Segregated fund a separate person
  
  131 (1) For the purposes of this Part, a segregated fund of an insurer shall be deemed to be a trust that is a separate person from the insurer and that does not deal at arm’s length with the insurer and 
  (a) the insurer shall be deemed to be a trustee of that trust; 
  (b) the activities of the segregated fund shall be deemed to be activities of the trust and not activities of the insurer; and 
  (c) where, at any time, an amount (other than an amount in respect of tax under this Part) is deducted from the fund, 
  (i) if the amount is in respect of property or a service that the fund is, because of the operation of this Part other than this paragraph, considered to have acquired from the insurer, that supply shall be deemed to be a taxable supply and the amount shall be deemed to be consideration for that supply that becomes due at that time, and 
  (ii) if the amount is not in respect of property or a service that the fund is, because of the operation of this Part other than this paragraph, considered to have acquired either from the insurer or another person, the insurer shall be deemed to have made, and the fund shall be deemed to have received, at that time, a taxable supply of a service and the amount shall be deemed to be consideration for the supply that becomes due at that time. 
  
  ### Exceptions
  
  (2) Paragraph (1)(c) does not apply to an amount deducted from a segregated fund of an insurer if 
  (a) the amount is a distribution of income, a payment of a benefit, or the amount of a redemption, in respect of an interest of another person in the fund; or 
  (b) the amount is a prescribed amount. 
  
  ### Person resident in Canada
  
  132 (1) For the purposes of this Part, a person shall be deemed to be resident in Canada at any time 
  (a) in the case of a corporation, if the corporation is incorporated or continued in Canada and not continued elsewhere; 
  (b) in the case of a partnership, an unincorporated society, a club, an association or an organization, or a branch thereof, if the member, or a majority of the members, having management and control thereof is or are resident in Canada at that time; 
  (c) in the case of a labour union, if it is carrying on activities as such in Canada and has a local union or branch in Canada at that time; or 
  (d) in the case of an individual, if the individual is deemed under any of paragraphs 250(1)(b) to (f) of the Income Tax Act to be resident in Canada at that time.  
  
  ### Permanent establishment of non-resident
  
  (2) For the purposes of this Part, where a non-resident person has a permanent establishment in Canada, the person shall be deemed to be resident in Canada in respect of, but only in respect of, activities of the person carried on through that establishment. 
  
  ### Permanent establishment of resident
  
  (3) For the purposes of this Part, where a person who is resident in Canada has a permanent establishment in a country other than Canada, the person shall be deemed to be a non-resident person in respect of, but only in respect of, activities of the person carried on through that establishment. 
  
  ### Supplies between permanent establishments
  
  (4) For the purposes of this Part, where a person carries on a business through a permanent establishment of the person in Canada and through another permanent establishment of the person outside Canada, 
  (a) any transfer of personal property or rendering of a service by the establishment in Canada to the establishment outside Canada shall be deemed to be a supply of the property or service; and 
  (b) in respect of that supply, the permanent establishments shall be deemed to be separate persons who deal with each other at arm’s length. 
  
  ### Residence of international shipping corporations
  
  (5) Where under subsection 250(6) of the Income Tax Act a corporation is deemed for the purposes of that Act to be resident in a country other than Canada throughout a taxation year of the corporation and not to be resident in Canada at any time in the year, the corporation shall, for the purposes of this Part but subject to subsection (2), be deemed to be resident in that other country throughout the year and not to be resident in Canada at any time in the year.  
  
  ### Residence of investment limited partnerships
  
  (6) For the purposes of this Part but subject to subsection (2), an investment limited partnership is deemed not to be resident in Canada at any time if, at that time, the total value of all interests in the partnership held by non-resident members of the partnership (other than prescribed members) is 95% or more of the total value of all interests in the partnership. 
  
  ### Person resident in a province
  
  132.1 (1) For the purposes of this Part, other than determining the place of residence of an individual in the individual’s capacity as a consumer, a person is deemed to be resident in a province if the person is resident in Canada and 
  (a) in the case of a corporation, the corporation is incorporated or continued under the laws of that province and not continued elsewhere; 
  (b) in the case of a partnership, an unincorporated society, a club, an association or an organization, or a branch thereof, the member, or a majority of the members, having management and control thereof is or are resident in that province; 
  (c) in the case of a labour union, it is carrying on activities as such in that province and has a local union or branch in that province; or 
  (d) in any case, the person has a permanent establishment in that province. 
  
  ### Meaning of “permanent establishment”
  
  (2) In this section and Schedule IX, 
  *permanent establishment* of a person means  
  (a) in the case of an individual, the estate of a deceased individual or a trust that carries on a business (within the meaning assigned by subsection 248(1) of the Income Tax Act), a permanent establishment (as defined for the purposes of Part XXVI of the Income Tax Regulations) of the person;  
  (b) in the case of a corporation that carries on a business (within the meaning assigned by subsection 248(1) of that Act), a permanent establishment (as defined for the purposes of Part IV of those Regulations) of the person; 
  (c) in the case of a particular partnership 
  (i) a permanent establishment (as defined for the purposes of Part XXVI of those Regulations) of a member that is an individual, the estate of a deceased individual or a trust where the establishment relates to a business (within the meaning assigned by subsection 248(1) of that Act) carried on through the partnership, 
  (ii) a permanent establishment (as defined for the purposes of Part IV of those Regulations) of a member that is a corporation where the establishment relates to a business (within the meaning assigned by subsection 248(1) of that Act) carried on by the particular partnership, or 
  (iii) a permanent establishment (within the meaning of this subsection) of a member that is a partnership where the establishment relates to a business (within the meaning assigned by subsection 248(1) of that Act) carried on by the particular partnership; and 
  (d) in any other case, a place that would be a permanent establishment (as defined for the purposes of Part IV of those Regulations) of the person if the person were a corporation and its activities were a business for purposes of that Act. 
  
  ### Permanent establishment in a province
  
  (3) A prescribed person, or a person of a prescribed class, is deemed, under prescribed circumstances and for prescribed purposes, to have a permanent establishment in a prescribed province. 
  
  ## Supplies and Commercial Activities 
  
  ### Agreement as supply
  
  133 For the purposes of this Part, where an agreement is entered into to provide property or a service, 
  (a) the entering into of the agreement shall be deemed to be a supply of the property or service made at the time the agreement is entered into; and 
  (b) the provision, if any, of property or a service under the agreement shall be deemed to be part of the supply referred to in paragraph (a) and not a separate supply. 
  
  ### Transfer of security interest
  
  134 For the purposes of this Part, where, under an agreement entered into in respect of a debt or obligation, a person transfers property or an interest in property for the purpose of securing payment of the debt or performance of the obligation, the transfer shall be deemed not to be a supply, and where, on payment of the debt or performance of the obligation or the forgiveness of the debt or obligation, the property or interest is retransferred, the retransfer of the property or interest shall be deemed not to be a supply. 
  
  ### Sponsorship of public sector bodies
  
  135 For the purposes of this Part, where a public sector body makes 
  (a) a supply of a service, or 
  (b) a supply by way of licence of the use of a copyright, trademark, trade-name or other similar property of the body, to a person who is the sponsor of an activity of the body for use by the person exclusively in publicizing the person’s business, the supply by the body of the service or the use of the property shall be deemed not to be a supply, except where it may reasonably be regarded that the consideration for the supply is primarily for a service of advertising by means of radio or television or in a newspaper, magazine or other publication published periodically or for a prescribed service. 
  
  ### Lease etc. of property
  
  136 (1) For the purposes of this Part, a supply, by way of lease, licence or similar arrangement, of the use or right to use real property or tangible personal property shall be deemed to be a supply of real property or tangible personal property, as the case may be. 
  
  ### Combined supply of real property
  
  (2) For the purposes of this Part, where a supply of real property includes the provision of 
  (a) real property that is 
  (i) a residential complex, 
  (ii) land, a building or part of a building that forms or is reasonably expected to form part of a residential complex, or 
  (iii) a residential trailer park, and 
  (b) other real property that is not part of the property referred to in paragraph (a), the property referred to in paragraph (a) and the property referred to in paragraph (b) shall each be deemed to be a separate property and the provision of the property referred to in paragraph (a) shall be deemed to be a separate supply from the provision of the property referred to in paragraph (b), and neither supply is incidental to the other. 
  (2.1)  [Repealed, 1997, c. 10, s. 153]  
  
  ### Idem
  
  (3) For the purposes of this Part, where a builder of an addition to a multiple unit residential complex makes a supply of the complex or an interest in it by way of sale that, but for this subsection, would be a taxable supply and, but for the construction of the addition, would be an exempt supply described in section 5 of Part I of Schedule V, the addition and the remainder of the complex shall each be deemed to be a separate property and the sale of the addition or the interest in it shall be deemed to be a separate supply from the sale of the remainder of the complex or the interest in it, and neither supply is incidental to the other. 
  
  ### Idem
  
  (4) For the purposes of this Part, where a person who has increased the area of land included in a residential trailer park of the person makes a supply of the park or an interest in it that, but for this subsection, would be a taxable supply and, but for the increase in the area of land included in the park, would be an exempt supply described in section 5.3 of Part I of Schedule V, the area of land by which the park was increased and the remainder of the park shall each be deemed to be a separate property and the sale of the additional area or the interest therein shall be deemed to be a supply separate from the sale of the remainder of the park or the interest in the park, and neither supply is incidental to the other. 
  
  ### Lease, etc. of property
  
  136.1 (1) For the purposes of this Part, where a supply of property is made by way of lease, licence or similar arrangement to a person for consideration that includes a payment that is attributable to a period (in this subsection referred to as the “lease interval”) that is the whole or a part of the period during which possession or use of the property is provided under the arrangement, 
  (a) the supplier is deemed to have made, and the person is deemed to have received, a separate supply of the property for the lease interval; 
  (b) the supply of the property for the lease interval is deemed to be made on the earliest of 
  (i) the first day of the lease interval, 
  (ii) the day on which the payment that is attributable to the lease interval becomes due, and 
  (iii) the day on which the payment that is attributable to the lease interval is paid; 
  (c) the payment that is attributable to the lease interval is deemed to be consideration payable in respect of the supply of the property for the lease interval; and 
  (d) if, in the absence of paragraph (a), the supply of the property under the arrangement would be deemed to be made in or outside Canada, all of the supplies of the property that are, because of that paragraph, deemed to be made under the arrangement are deemed to be made in or outside Canada, as the case may be. 
  
  ### Delivery on exercise of option
  
  (1.1) For the purposes of this Part, if a recipient of a supply by way of lease, licence or similar arrangement of tangible personal property exercises an option to purchase the property that is provided for under the arrangement and the recipient begins to have possession of the property under the agreement of purchase and sale of the property at the same time and place as the recipient ceases to have possession of the property as lessee or licensee under the arrangement, that time and place is, for greater certainty, deemed to be the time and place at which the property is delivered or made available to the recipient in respect of the supply by way of sale of the property to the recipient. 
  
  ### Ongoing services
  
  (2) For the purposes of this Part, where a supply of a service is made to a person for consideration that includes a payment that is attributable to a period (in this subsection referred to as a “billing period”) that is the whole or a part of the period during which the service is or is to be rendered under the agreement for the supply, 
  (a) the supplier is deemed to have made, and the person is deemed to have received, a separate supply of the service for the billing period; 
  (b) the supply of the service for the billing period is deemed to be made on the earliest of 
  (i) the first day of the billing period, 
  (ii) the day on which the payment that is attributable to the billing period becomes due, and 
  (iii) the day on which the payment that is attributable to the billing period is made; 
  (c) the payment that is attributable to the billing period is deemed to be consideration payable in respect of the supply of the service for the billing period; and 
  (d) if, in the absence of paragraph (a), the supply of the service under the agreement would be deemed to be made in or outside Canada, all of the supplies of the service that are, because of that paragraph, deemed to be made under the agreement are, except in the case of a telecommunication service, deemed to be made in or outside Canada, as the case may be. 
  
  ### Supply of real property partly outside province
  
  136.2 For the purposes of determining in which participating province, if any, a taxable supply of real property is made and determining the tax payable, if any, under subsection 165(2) in respect of the supply for the purposes of this Part, where the supply includes the provision of real property situated in a particular province and real property situated in another province or outside Canada, the provision of the part of the real property that is situated in the particular province and the provision of the part of the real property that is situated in the other province or outside Canada, as the case may be, are each deemed to be a separate taxable supply made for separate consideration equal to the portion of the total consideration for all the property that is reasonably attributable to the part. 
  
  ### Separate supplies of freight services
  
  136.3 For the purposes of determining, for the purposes of this Part, the tax payable, if any, under subsection 165(2) in respect of a supply of a freight transportation service (within the meaning of Part VI of Schedule IX) that includes the provision of a service of transporting particular tangible personal property to a destination in a province and other tangible personal property to a destination outside the province and determining in which participating province, if any, the supply is made, the provision of the service of transporting the particular property and the provision of the service of transporting the other property are each deemed to be a separate supply made for separate consideration equal to the portion of the total consideration for the supply that is reasonably attributable to the transportation of the particular property or other property, as the case may be. 
  
  ### Definition 
  *telecommunications channel* 
  
  136.4 (1) In this section, 
  *telecommunications channel* means a telecommunications circuit, line, frequency, channel, partial channel or other means of sending or receiving a telecommunication but does not include a satellite channel.  
  
  ### Dedicated telecommunications channel
  
  (2) For the purposes of this Part, where a person supplies a telecommunication service of granting to the recipient of the supply sole access to a telecommunications channel for transmitting telecommunications between a place in a particular province and a place in another province, 
  (a) the person is deemed to have made a separate supply of the service in each of those two provinces and in each province, if any, that is between those provinces; and 
  (b) the consideration for the supply in each province is deemed to be equal to the amount determined by the formula is the distance over which the telecommunications would be transmitted in that province if the telecommunications were transmitted solely by means of cable and related telecommunications facilities located in Canada that connected, in a direct line, the transmitters for emitting and receiving the telecommunications, is the distance over which the telecommunications would be transmitted in Canada if the telecommunications were transmitted solely by such means, and is the total consideration paid or payable by the recipient for the sole access to the telecommunications channel. 
  
  ### Coverings and containers
  
  137 For the purposes of this Part, where tangible personal property of a particular class is supplied in a covering or container that is usual for that class of property, the covering or container shall be deemed to form part of the property so supplied. 
  
  ### Incidental supplies
  
  138 For the purposes of this Part, where 
  (a) a particular property or service is supplied together with any other property or service for a single consideration, and 
  (b) it may reasonably be regarded that the provision of the other property or service is incidental to the provision of the particular property or service, the other property or service shall be deemed to form part of the particular property or service so supplied. 
  
  ### Financial services in mixed supply
  
  139 For the purposes of this Part, where 
  (a) one or more financial services are supplied together with one or more other services that are not financial services, or with properties that are not capital properties of the supplier, for a single consideration, 
  (b) the financial services are related to the other services or the properties, as the case may be, 
  (c) it is the usual practice of the supplier to supply those or similar services, or those or similar properties and services, together in the ordinary course of the business of the supplier, and 
  (d) the total of all amounts, each of which would be the consideration for a financial service so supplied if that financial service had been supplied separately, is greater than 50% of the total of all amounts, each of which would be the consideration for a service or property so supplied if that service or property had been supplied separately, the supply of each of the services and properties shall be deemed to be a supply of a financial service. 
  
  ### Supply of membership with security
  
  140 For the purposes of this Part, where 
  (a) a person makes a supply of a share, bond, debenture or other security (other than a share in a credit union or in a cooperative corporation the main purpose of which is not to provide dining, recreational or sporting facilities) that represents capital stock or debt of a particular organization, and 
  (b) ownership of the security by the recipient of the supply is a condition of the recipient’s, or another person’s, obtaining a membership, or a right to acquire a membership, in the particular organization or in another organization that is related to the particular organization, the supply of the security shall be deemed to be a supply of a membership and not a supply of a financial service. 
  
  ### Use in commercial activities
  
  141 (1) For the purposes of this Part, where substantially all of the consumption or use of property or a service by a person, other than a financial institution, is in the course of the person’s commercial activities, all of the consumption or use of the property or service by the person shall be deemed to be in the course of those activities. 
  
  ### Intended use in commercial activities
  
  (2) For the purposes of this Part, where substantially all of the consumption or use for which a person, other than a financial institution, acquires or imports property or a service or brings it into a participating province is in the course of the person’s commercial activities, all of the consumption or use for which the person acquired or imported the property or service or brought it into the province, as the case may be, is deemed to be in the course of those activities. 
  
  ### Use in other activities
  
  (3) For the purposes of this Part, where substantially all of the consumption or use of property or a service by a person, other than a financial institution, is in the course of particular activities of the person that are not commercial activities, all of the consumption or use of the property or service by the person shall be deemed to be in the course of those particular activities. 
  
  ### Intended use in other activities
  
  (4) For the purposes of this Part, where substantially all of the consumption or use for which a person, other than a financial institution, acquires or imports property or a service or brings it into a participating province is in the course of particular activities of the person that are not commercial activities, all of the consumption or use for which the person acquired or imported the property or service or brought it into the province, as the case may be, is deemed to be in the course of those particular activities. 
  
  ### Real property that includes residential complex
  
  (5) For the purposes of subsections (1) to (4), where real property includes a residential complex and another part that is not part of the residential complex, 
  (a) the residential complex and the other part shall each be deemed to be a separate property; and 
  (b) where property or a service is acquired, imported or brought into a participating province for consumption or use in relation to the real property, subsections (1) to (4) apply to the property or service only to the extent it is acquired, imported or brought into the province, as the case may be, for consumption or use in relation to the part that is not part of the residential complex. 
  
  ### Meaning of endeavour 
  
  141.01 (1) In this section, 
  *endeavour* of a person means  
  (a) a business of the person; 
  (b) an adventure or concern in the nature of trade of the person; or 
  (c) the making of a supply by the person of real property of the person, including anything done by the person in the course of or in connection with the making of the supply. 
  
  ### Meaning of consideration 
  
  (1.1) In subsections (1.2), (2) and (3), 
  *consideration* does not include nominal consideration.  
  
  ### Grants and subsidies
  
  (1.2) Where a registrant receives an amount that is not consideration for a supply and is a grant, subsidy, forgivable loan or other form of assistance provided by a person who is 
  (a) a government, a municipality or a band (within the meaning assigned by section 2 of the Indian Act),  
  (b) a corporation that is controlled by a person referred to in paragraph (a) and one of the main purposes of which is to provide such assistance, or 
  (c) a trust, board, commission or other body that is established by a person referred to in paragraph (a) or (b) and one of the main purposes of which is to provide such assistance, and the assistance can reasonably be considered to be provided for the purpose of funding an activity of the registrant that involves the making of taxable supplies for no consideration, the amount is, for the purposes of this section, deemed to be consideration for those supplies. 
  
  ### Acquisition for purpose of making supplies
  
  (2) Where a person acquires or imports property or a service or brings it into a participating province for consumption or use in the course of an endeavour of the person, the person shall, for the purposes of this Part, be deemed to have acquired or imported the property or service or brought it into the province, as the case may be, 
  (a) for consumption or use in the course of commercial activities of the person, to the extent that the property or service is acquired, imported or brought into the province by the person for the purpose of making taxable supplies for consideration in the course of that endeavour; and 
  (b) for consumption or use otherwise than in the course of commercial activities of the person, to the extent that the property or service is acquired, imported or brought into the province by the person 
  (i) for the purpose of making supplies in the course of that endeavour that are not taxable supplies made for consideration, or 
  (ii) for a purpose other than the making of supplies in the course of that endeavour. 
  
  ### Use for purpose of making supplies
  
  (3) Where a person consumes or uses property or a service in the course of an endeavour of the person, that consumption or use shall, for the purposes of this Part, be deemed to be 
  (a) in the course of commercial activities of the person, to the extent that the consumption or use is for the purpose of making taxable supplies for consideration in the course of that endeavour; and 
  (b) otherwise than in the course of commercial activities of the person, to the extent that the consumption or use is 
  (i) for the purpose of making supplies in the course of that endeavour that are not taxable supplies made for consideration, or 
  (ii) for a purpose other than the making of supplies in the course of that endeavour. 
  
  ### Free supplies
  
  (4) Where 
  (a) a supplier makes a taxable supply (in this subsection referred to as a “free supply”) of property or a service for no consideration or nominal consideration in the course of a particular endeavour of the supplier, and 
  (b) it can reasonably be regarded that among the purposes (in this subsection referred to as the “specified purposes”) for which the free supply is made is the purpose of facilitating, furthering or promoting 
  (i) the acquisition, consumption or use of other property or services by any other person, or 
  (ii) an endeavour of any person, the following rules apply: 
  (c) to the extent that the supplier acquired or imported a particular property or service or brought it into a participating province for the purpose of making the free supply of that property or service or for consumption or use in the course of making the free supply, the supplier shall be deemed, for the purposes of subsection (2), to have acquired or imported the particular property or service or brought it into the province, as the case may be, 
  (i) for use in the course of the particular endeavour, and 
  (ii) for the specified purposes and not for the purpose of making the free supply, and 
  (d) to the extent that the supplier consumed or used a particular property or service for the purpose of making the free supply, the supplier shall be deemed, for the purposes of subsection (3), to have consumed or used the particular property or service for the specified purposes and not for the purpose of making the free supply. 
  
  ### Method of determining extent of use, etc.
  
  (5) Subject to section 141.02, the methods used by a person in a fiscal year to determine 
  (a) the extent to which properties or services are acquired, imported or brought into a participating province by the person for the purpose of making taxable supplies for consideration or for other purposes, and 
  (b) the extent to which the consumption or use of properties or services is for the purpose of making taxable supplies for consideration or for other purposes, shall be fair and reasonable and shall be used consistently by the person throughout the year. 
  
  ### Application to other provisions
  
  (6) Where 
  (a) a particular provision of this Part, other than subsections (2) to (4), deems certain circumstances or facts to exist, and 
  (b) that deeming is dependent, in whole or in part, on the particular circumstance that property or a service is or was consumed or used, or acquired, imported or brought into a participating province for consumption or use, to a certain extent in the course of, or otherwise than in the course of, commercial activities or other activities, that certain extent shall be determined under subsection (2) or (3), as the case requires, for the purpose of determining whether the particular circumstance exists, but where it is so determined that the particular circumstance exists and all other circumstances necessary for the particular provision to apply exist, the deeming by the particular provision shall apply notwithstanding subsections (2) and (3). 
  
  ### Idem
  
  (7) Where a provision of this Part deems the consideration for a supply not to be consideration for the supply, a supply to be made for no consideration or a supply not to have been made by a person, that deeming shall not apply for the purposes of any of subsections (1) to (4). 
  
  ### Definitions
  
  141.02 (1) The definitions in this subsection apply in this section.  
  *adjusted tax credit amount* means the amount determined, for a fiscal year of a person, by the formula  is the tax credit amount of the person for the fiscal year; and is the number of days in the fiscal year. ( montant de crédit de taxe rajusté)   
  *adjusted total tax amount* means the amount determined, for a fiscal year of a person, by the formula  is the total tax amount of the person for the fiscal year; and is the number of days in the fiscal year. ( montant total de taxe rajusté)   
  *business input* means an excluded input, an exclusive input or a residual input. (intrant d’entreprise)   
  *direct attribution method* means a method, conforming to criteria, rules, terms and conditions specified by the Minister, of determining in the most direct manner the operative extent and the procurative extent of property or a service. (méthode d’attribution directe)   
  *direct input* means property or a service, other than  
  (a) an excluded input; 
  (b) an exclusive input; or 
  (c) a non-attributable input. ( intrant direct)   
  *excluded input* of a person means  
  (a) property that is for use by the person as capital property; 
  (b) property or a service that is acquired, imported or brought into a participating province by the person for use as an improvement to property described in paragraph (a); or 
  (c) a prescribed property or service. ( intrant exclu)   
  *exclusive input* of a person means property or a service (other than an excluded input) that is acquired, imported or brought into a participating province by the person for consumption or use directly and exclusively for the purpose of making taxable supplies for consideration or directly and exclusively for purposes other than making taxable supplies for consideration. (intrant exclusif)   
  *non-attributable input* of a person means property or a service that is  
  (a) not an excluded input or an exclusive input of the person; 
  (b) acquired, imported or brought into a participating province by the person; and 
  (c) not attributable to the making of any particular supply by the person. ( intrant non attribuable)   
  *operative extent* of property or a service means, as the case may be, the extent to which the consumption or use of the property or service is for the purpose of making taxable supplies for consideration or the extent to which the consumption or use of the property or service is for purposes other than making taxable supplies for consideration. (mesure d’utilisation)   
  *procurative extent* of property or a service means, as the case may be, the extent to which the property or service is acquired, imported or brought into a participating province for the purpose of making taxable supplies for consideration or the extent to which the property or service is acquired, imported or brought into a participating province for purposes other than making taxable supplies for consideration. (mesure d’acquisition)   
  *qualifying institution* for a particular fiscal year means a person that  
  (a) is a financial institution of a prescribed class throughout the particular fiscal year of the person; and 
  (b) has two fiscal years immediately preceding the particular fiscal year and, for each of those two fiscal years, 
  (i) the adjusted tax credit amount of the person equals or exceeds the prescribed amount for that prescribed class for the particular fiscal year, and 
  (ii) the tax credit rate of the person equals or exceeds the prescribed percentage for that prescribed class for the particular fiscal year. ( institution admissible)   
  *requested information* means any information, additional information or document in respect of an application made by a person under subsection (18) that the Minister requests in writing from the person. (renseignement demandé)   
  *residual input* means a direct input or a non-attributable input. (intrant résiduel)   
  *residual input tax amount* of a person for a fiscal year means  
  (a) if the person is a selected listed financial institution at any time in the fiscal year, an amount of tax under any of subsection 165(1) and sections 212, 218 and 218.01 in respect of a supply or importation of a residual input that became payable by the person during the fiscal year without having been paid before the fiscal year or was paid by the person during the fiscal year without having become payable; and 
  (b) in any other case, an amount of tax in respect of a supply, importation or bringing into a participating province of a residual input that became payable by the person during the fiscal year without having been paid before the fiscal year or was paid by the person during the fiscal year without having become payable. ( montant de taxe pour intrant résiduel)   
  *specified method* means a method, conforming to criteria, rules, terms and conditions specified by the Minister, of determining the operative extent and the procurative extent of property or a service. (méthode déterminée)   
  *tax credit amount* of a person for a fiscal year of the person means  
  (a) if the person has made an election under subsection (9) in respect of the fiscal year, the total of all amounts each of which is an input tax credit for the fiscal year in respect of a residual input tax amount of the person for the fiscal year that the person would, in the absence of that subsection, be entitled to claim under this Part; 
  (b) if the person is a qualifying institution for the fiscal year, has not made an election under subsection (7) or (27) in respect of the fiscal year and has not received an authorization from the Minister to use for the fiscal year the particular methods set out in an application made under subsection (18), the total of all amounts each of which is an input tax credit for the fiscal year in respect of a residual input tax amount of the person for the fiscal year that the person would, if the person were not a qualifying institution for the fiscal year and did not make an election under subsection (9) in respect of the fiscal year, be entitled to claim under this Part; and 
  (c) in any other case, the total of all amounts each of which is an input tax credit for the fiscal year in respect of a residual input tax amount of the person for the fiscal year that the person is entitled to claim under this Part. ( montant de crédit de taxe)   
  *tax credit rate* of a person for a fiscal year of the person means the quotient, expressed as a percentage, determined by dividing the tax credit amount of the person for the fiscal year by the total tax amount of the person for the fiscal year. (taux de crédit de taxe)   
  *total tax amount* of a person for a fiscal year of the person means the total of all amounts each of which is a residual input tax amount of the person for the fiscal year. (montant total de taxe)  
  
  ### Meaning of consideration 
  
  (2) In this section, 
  *consideration* does not include nominal consideration.  
  
  ### Financial institution throughout a year
  
  (3) For the purposes of this section, a person is a financial institution of a prescribed class throughout a particular fiscal year of the person if the person is a financial institution of that class at any time in the particular fiscal year. 
  
  ### Mergers and amalgamations
  
  (4) If two or more corporations (each of which is referred to in this subsection as a “predecessor”) are merged or amalgamated to form one corporation (in this subsection referred to as the “new corporation”), otherwise than as the result of the acquisition of property of one corporation by another corporation pursuant to the purchase of the property by the other corporation or as the result of the distribution of the property to the other corporation on the winding-up of the corporation, despite section 271 and for the purposes of determining the tax credit amount and the tax credit rate of the new corporation for a fiscal year of the new corporation, the following rules apply: 
  (a) the new corporation is deemed to have had two fiscal years, each of 365 days, immediately preceding the first fiscal year of the new corporation; 
  (b) the tax credit amount of the new corporation for the fiscal year of the new corporation (in this subsection referred to as the “prior year of the new corporation”) immediately preceding the first fiscal year of the new corporation is deemed to be equal to the total of all amounts each of which is the adjusted tax credit amount of a predecessor for the last fiscal year, if any, of the predecessor (in this subsection referred to as the “prior year of the predecessor”) ending before the time of the merger or amalgamation otherwise than as a result of the merger or amalgamation; 
  (c) the tax credit amount of the new corporation for the fiscal year of the new corporation (in this subsection referred to as the “second prior year of the new corporation”) immediately preceding the prior year of the new corporation is deemed to be equal to the total of all amounts each of which is the adjusted tax credit amount of a predecessor for the fiscal year, if any, of the predecessor (in this subsection referred to as the “second prior year of the predecessor”) immediately preceding the prior year of the predecessor; 
  (d) the total tax amount of the new corporation for the prior year of the new corporation is deemed to be the total of all amounts, each of which is the adjusted total tax amount of a predecessor for the prior year of the predecessor, if any; and 
  (e) the total tax amount of the new corporation for the second prior year of the new corporation is deemed to be the total of all amounts, each of which is the adjusted total tax amount of a predecessor for the second prior year of the predecessor, if any. 
  
  ### Winding-up
  
  (5) If at any time a particular corporation is wound up and not less than 90% of the issued shares of each class of the capital stock of the particular corporation were, immediately before that time, owned by another corporation, despite section 272 and for the purposes of determining the tax credit amount and the tax credit rate of the other corporation for a fiscal year of the other corporation, the following rules apply: 
  (a) the tax credit amount of the other corporation for the fiscal year of the other corporation (in this subsection referred to as the “specified year of the other corporation”) that includes the day on which the particular corporation is wound up is deemed to be equal to the total of 
  (i) the amount that would, if this subsection did not apply to the winding-up of the particular corporation, be the adjusted tax credit amount of the other corporation for the specified year of the other corporation, and 
  (ii) the amount that is the adjusted tax credit amount of the particular corporation for the last fiscal year, if any, of the particular corporation (in this subsection referred to as the “prior year of the particular corporation”) ending before the day on which the particular corporation is wound up; 
  (b) the tax credit amount of the other corporation for the fiscal year, if any, of the other corporation (in this subsection referred to as the “prior year of the other corporation”) immediately preceding the specified year of the other corporation is deemed to be equal to the total of 
  (i) the amount that would, if this subsection did not apply to the winding-up of the particular corporation, be the adjusted tax credit amount of the other corporation for the prior year of the other corporation, and 
  (ii) the amount that is the adjusted tax credit amount of the particular corporation for the fiscal year, if any, of the particular corporation (in this subsection referred to as the “second prior year of the particular corporation”) immediately preceding the prior year of the particular corporation; 
  (c) the total tax amount of the other corporation for the specified year of the other corporation is deemed to be the total of 
  (i) the amount that would, if this subsection did not apply to the winding-up of the particular corporation, be the adjusted total tax amount of the other corporation for the specified year of the other corporation, and 
  (ii) the amount that is the adjusted total tax amount of the particular corporation for the prior year of the particular corporation, if any; and 
  (d) the total tax amount of the other corporation for the prior year of the other corporation, if any, is deemed to be the total of 
  (i) the amount that would, if this subsection did not apply to the winding-up of the particular corporation, be the adjusted total tax amount of the other corporation for the prior year of the other corporation, and 
  (ii) the amount that is the adjusted total tax amount of the particular corporation for the second prior year of the particular corporation, if any. 
  
  ### Allocation of exclusive inputs
  
  (6) For the purposes of this Part, the following rules apply in respect of any exclusive input of a financial institution: 
  (a) if the exclusive input is acquired, imported or brought into a participating province for consumption or use directly and exclusively for the purpose of making taxable supplies for consideration, the financial institution is deemed to have acquired, imported or brought into the participating province the exclusive input for consumption or use exclusively in the course of commercial activities of the financial institution; and 
  (b) if the exclusive input is acquired, imported or brought into a participating province for consumption or use directly and exclusively for purposes other than making taxable supplies for consideration, the financial institution is deemed to have acquired, imported or brought into the participating province the exclusive input for consumption or use exclusively otherwise than in the course of commercial activities of the financial institution. 
  
  ### Residual inputs — election for transitional year
  
  (7) If a person is a qualifying institution for the first fiscal year of the person that begins after March 2007, the Minister has assessed the net tax of the person for any reporting period included in any of the four fiscal years immediately preceding that first fiscal year, the notice of assessment, subsequent assessment or reassessment in respect of the reporting period does not reflect any inappropriateness in respect of the methods used by the person for the purpose of determining input tax credits in respect of residual inputs of the person and those methods would be fair and reasonable if used in the same manner by the person in that first fiscal year for the purposes of determining the operative extent and the procurative extent of all residual inputs of the person, the person may elect to use those methods in that same manner for that first fiscal year to determine, for the purposes of this Part, the operative extent and the procurative extent of all residual inputs of the person. 
  
  ### Residual inputs — prescribed extent of use
  
  (8) For the purposes of this Part, if a financial institution is a qualifying institution for a fiscal year of the financial institution and has not made an election under subsection (7) for the fiscal year, the following rules apply for the fiscal year in respect of each residual input of the financial institution: 
  (a) the extent to which the consumption or use of the residual input is for the purpose of making taxable supplies for consideration is deemed to be equal to the prescribed percentage for the prescribed class of the financial institution; 
  (b) the extent to which the consumption or use of the residual input is for purposes other than making taxable supplies for consideration is deemed to be equal to the difference between 100% and the prescribed percentage for the prescribed class of the financial institution; 
  (c) the extent to which the residual input is acquired, imported or brought into a participating province by the qualifying institution for the purpose of making taxable supplies for consideration is deemed to be equal to the prescribed percentage for the prescribed class of the financial institution; 
  (d) the extent to which the residual input is acquired, imported or brought into a participating province by the qualifying institution for purposes other than making taxable supplies for consideration is deemed to be equal to the difference between 100% and the prescribed percentage for the prescribed class of the financial institution; and 
  (e) for the purpose of determining an input tax credit in respect of the residual input, the description of B in the formula in subsection 169(1) is deemed to be equal to the prescribed percentage for the prescribed class of the financial institution. 
  
  ### Residual inputs — elected extent of use
  
  (9) For the purposes of this Part, if a person is a financial institution (other than a qualifying institution) of a prescribed class throughout a particular fiscal year of the person and the tax credit rate of the person for each of the two fiscal years immediately preceding the particular fiscal year equals or exceeds the prescribed percentage for the prescribed class of financial institutions of the person for the particular fiscal year, the person may elect to have the following rules apply for the particular fiscal year in respect of each residual input of the person: 
  (a) the extent to which the consumption or use of the residual input is for the purpose of making taxable supplies for consideration is deemed to be equal to the prescribed percentage for the prescribed class; 
  (b) the extent to which the consumption or use of the residual input is for purposes other than making taxable supplies for consideration is deemed to be equal to the difference between 100% and the prescribed percentage for the prescribed class; 
  (c) the extent to which the residual input is acquired, imported or brought into a participating province by the person for the purpose of making taxable supplies for consideration is deemed to be equal to the prescribed percentage for the prescribed class; 
  (d) the extent to which the residual input is acquired, imported or brought into a participating province by the person for purposes other than making taxable supplies for consideration is deemed to be equal to the difference between 100% and the prescribed percentage for the prescribed class; and 
  (e) for the purpose of determining an input tax credit in respect of the residual input, the description of B in the formula in subsection 169(1) is deemed to be equal to the prescribed percentage for the prescribed class. 
  
  ### Non-attributable inputs — specified method
  
  (10) For the purposes of this Part, if a financial institution (other than a qualifying institution) has not made an election under subsection (9) in respect of a fiscal year of the financial institution, the financial institution shall use a specified method to determine for the fiscal year the operative extent and the procurative extent of each non-attributable input of the financial institution. 
  
  ### Non-attributable inputs — exception
  
  (11) For the purposes of this Part, despite subsection (10), if a financial institution (other than a qualifying institution) has not made an election under subsection (9) in respect of a fiscal year of the financial institution and no specified method applies during the fiscal year to a particular non-attributable input of the financial institution, the financial institution shall use another attribution method to determine for the fiscal year the operative extent and the procurative extent of the particular non-attributable input. 
  
  ### Direct inputs — direct attribution method
  
  (12) For the purposes of this Part, if a financial institution (other than a qualifying institution) has not made an election under subsection (9) in respect of a fiscal year of the financial institution, the financial institution shall use a direct attribution method to determine for the fiscal year the operative extent and the procurative extent of each direct input of the financial institution. 
  
  ### Direct inputs — exception
  
  (13) For the purposes of this Part, despite subsection (12), if a financial institution (other than a qualifying institution) has not made an election under subsection (9) in respect of a fiscal year of the financial institution and no direct attribution method applies during the fiscal year to a particular direct input of the financial institution, the financial institution shall use another attribution method to determine in the most direct manner for the fiscal year the operative extent and the procurative extent of the particular direct input. 
  
  ### Excluded inputs — specified method
  
  (14) For the purposes of this Part, a financial institution shall use a specified method to determine for a fiscal year of the financial institution the operative extent and the procurative extent of each excluded input of the financial institution. 
  
  ### Excluded inputs — exception
  
  (15) For the purposes of this Part, despite subsection (14), if no specified method applies during a fiscal year of a financial institution to a particular excluded input of the financial institution, the financial institution shall use another attribution method to determine for the fiscal year the operative extent and the procurative extent of the particular excluded input. 
  
  ### Attribution method — conditions
  
  (16) Any method that a financial institution is required in accordance with any of subsections (10) to (15) to use in respect of a fiscal year of the financial institution shall be 
  (a) fair and reasonable; 
  (b) used consistently by the financial institution throughout the fiscal year; and 
  (c) subject to subsection (17), determined by the financial institution no later than the day on or before which the financial institution is required to file a return under Division V with the Minister for the first reporting period in the fiscal year. 
  
  ### Alteration or substitution of method
  
  (17) Any method used by a financial institution under any of subsections (10) to (15) in respect of a fiscal year of the financial institution shall not, after the day on or before which the financial institution is required to file a return under Division V with the Minister for the first reporting period in the fiscal year, be altered or be substituted with another method by the financial institution for the fiscal year without the written consent of the Minister. 
  
  ### Application for pre-approved method
  
  (18) A person that is, or is reasonably expected to be, a qualifying institution for a fiscal year may apply to the Minister to use particular methods to determine for the fiscal year the operative extent and the procurative extent of each business input of the person. 
  
  ### Form and manner of application
  
  (19) An application made by a person under subsection (18) shall 
  (a) be made in prescribed form containing prescribed information, including the particular method to be used in respect of each direct input, excluded input, exclusive input and non-attributable input of the person; and 
  (b) be filed by the person with the Minister in prescribed manner on or before 
  (i) the day that is 180 days before the first day of the fiscal year to which the application applies, or 
  (ii) any later day that the Minister may allow on application by the person. 
  
  ### Authorization
  
  (20) On receipt of an application made under subsection (18), the Minister shall 
  (a) consider the application and authorize or deny the use of the particular methods; and 
  (b) notify the person in writing of the decision on or before 
  (i) the later of 
  (A) the day that is 180 days after that receipt, and 
  (B) the day that is 180 days before the first day of the fiscal year to which the application applies, or 
  (ii) any later day that the Minister may specify, if the day is set out in a written application filed by the person with the Minister. 
  
  ### Effect of authorization
  
  (21) For the purposes of this Part, if the Minister under subsection (20) authorizes the use of particular methods for a fiscal year of the person, 
  (a) the particular methods shall be used consistently, and as indicated in the application, by the person throughout the fiscal year to determine the operative extent and the procurative extent of each business input of the person; and 
  (b) subsections (6) to (15) and (27) do not apply, for the fiscal year, in respect of any business input of the person. 
  
  ### Reasons for denial
  
  (22) If the Minister denies under subsection (20) the use of the particular methods specified in an application made under subsection (18) and the person has, in respect of the application, complied with the requirements set out in subsection (19) and provided to the Minister all requested information within any reasonable time set out in the written notice requesting the information, the Minister shall notify the person in writing of the reasons for not authorizing the use of the particular methods on or before the particular day that is the later of 
  (a) the day that is 60 days after the day the person last provided any requested information to the Minister; and 
  (b) the day on or before which the notification of the decision is required to be given to the person under subsection (20). 
  
  ### Revocation
  
  (23) An authorization granted under subsection (20) to a person in respect of a fiscal year of the person ceases to have effect on the first day of the fiscal year and, for the purposes of this Part, is deemed never to have been granted, if 
  (a) the Minister revokes the authorization and sends a notice of revocation to the person on or before the day that is 60 days before the day that is the first day of the fiscal year; 
  (b) the person files in prescribed manner with the Minister a notice of revocation in prescribed form containing prescribed information on or before the day that is 60 days before the first day of the fiscal year; or 
  (c) the person is not a qualifying institution for the fiscal year. 
  
  ### Application to be designated a qualifying institution
  
  (24) A person may apply to the Minister, in prescribed form containing prescribed information, to be designated as a qualifying institution for a particular fiscal year of the person if 
  (a) the person is, or is reasonably expected to be, a financial institution of a prescribed class throughout the particular fiscal year; and 
  (b) it is the case that 
  (i) the person has two fiscal years immediately preceding the particular fiscal year and, for each of those two fiscal years, the adjusted tax credit amount of the person equals or exceeds, or is reasonably expected to equal or exceed, the prescribed amount for that class for the particular fiscal year, or 
  (ii) an authorization under subsection (20) for the particular fiscal year has ceased to have effect only because of the application of paragraph (23)(c). 
  
  ### Effect of approval
  
  (25) On receipt of the application made under subsection (24) in respect of a fiscal year of a person, the Minister shall, with all due dispatch, consider the application and notify the person in writing of the decision and, if the Minister makes the designation, the person is deemed for the purposes of subsection (18) and paragraph (23)(c) to be a qualifying institution for the fiscal year. 
  
  ### Revocation of designation as a qualifying institution
  
  (26) A designation made under subsection (25) in respect of a fiscal year of a person ceases to have effect on the first day of the fiscal year and is deemed, for the purposes of this Part, to have never been granted if, on or before the day that is 60 days before the first day of the fiscal year 
  (a) the Minister revokes the designation and sends a notice of revocation to the person; or 
  (b) the person files in prescribed manner with the Minister a notice of revocation of the designation in prescribed form containing prescribed information. 
  
  ### Qualifying institution’s own methods
  
  (27) Despite subsections (6), (8), (14) and (15), a qualifying institution for a fiscal year may elect to use particular methods for the fiscal year to determine, for the purposes of this Part, the operative extent and the procurative extent of every business input of the qualifying institution, if 
  (a) the particular methods were specified in an application filed under subsection (18) by the qualifying institution for the fiscal year that 
  (i) complies with the requirements set out in subsection (19), and 
  (ii) is the last such application filed by the qualifying institution for the fiscal year; 
  (b) the use of the particular methods was not authorized by the Minister under paragraph (20)(a); 
  (c) the qualifying institution has provided all requested information within the time set out in the written notice requesting the information; 
  (d) the Minister has not complied with the notification requirements set out in paragraph (20)(b) and subsection (22) in respect of the application; and 
  (e) if the Minister has provided modifications in writing to the particular methods on or before the particular day described in subsection (22), the particular methods with those modifications (in this section referred to as the “modified methods”) are not fair and reasonable for the purpose of determining the operative extent and the procurative extent of the business inputs of the qualifying institution for the fiscal year. 
  
  ### Elected method — conditions
  
  (28) If a qualifying institution makes an election under subsection (27), the particular methods shall be 
  (a) fair and reasonable for the purpose of determining the operative extent and the procurative extent of the business inputs of the qualifying institution for the fiscal year; and 
  (b) used consistently, and as indicated in the application referred to in paragraph (27)(a), by the qualifying institution throughout the fiscal year. 
  
  ### Making of election
  
  (29) An election under subsection (7), (9) or (27) in respect of a fiscal year of a person shall be 
  (a) made in prescribed form containing prescribed information; and 
  (b) filed by the person with the Minister in prescribed manner on or before the day that is 
  (i) the day on or before which a return under Division V for the first reporting period of the fiscal year is required to be filed, or 
  (ii) any later day that the Minister may allow on application by the person. 
  
  ### Revocation of election
  
  (30) An election under subsection (7), (9) or (27) in respect of a fiscal year of a person ceases to have effect on the first day of the fiscal year and is deemed, for the purposes of this Part, never to have been made if 
  (a) a notice of revocation of the election in prescribed form containing prescribed information is filed in prescribed manner with the Minister on or before the day on or before which the return under Division V is required to be filed for the first reporting period of the fiscal year; 
  (b) in the case of an election under subsection (7) to use methods for the fiscal year to determine, for the purposes of this Part, the operative extent and the procurative extent of all residual inputs of the person, 
  (i) the person is not a qualifying institution for the fiscal year, or 
  (ii) the methods are 
  (A) not fair and reasonable for the purpose of determining the operative extent and the procurative extent of those residual inputs, or 
  (B) not used consistently by the financial institution throughout the fiscal year; 
  (c) in the case of an election made under subsection (9), 
  (i) the person is not a financial institution of a prescribed class throughout the fiscal year, or 
  (ii) the tax credit rate of the person for each of the two fiscal years immediately preceding the fiscal year does not equal or exceed the prescribed percentage for the prescribed class of financial institutions of the person for the fiscal year; or 
  (d) in the case of an election made under subsection (27), 
  (i) any of the requirements to make the election that are set out in that subsection is not met, or 
  (ii) the particular methods referred to in that subsection are 
  (A) not fair and reasonable for the purpose of determining the operative extent and the procurative extent of the business inputs of the qualifying institution for the fiscal year, or 
  (B) not used consistently, or as indicated in the application referred to in paragraph (27)(a), by the financial institution throughout the fiscal year. 
  
  ### Burden of proof
  
  (31) If a financial institution appeals an assessment under this Part for a reporting period in a fiscal year of the financial institution in respect of an issue relating to the determination, under any of subsections (7), (10) to (15), (21) and (27), of the operative extent or the procurative extent of a business input, the financial institution must establish on a balance of probabilities in any court proceeding relating to the assessment that 
  (a) in the case of the determination, under subsection (7), of the operative extent or the procurative extent of the business input, the methods used by the financial institution to determine the operative extent and the procurative extent of all residual inputs of the financial institution for the fiscal year were 
  (i) fair and reasonable, and 
  (ii) used consistently by the financial institution throughout the fiscal year; 
  (b) in the case of the determination, under subsection (10) or (14), of the operative extent or the procurative extent of the business input, the financial institution used a specified method consistently throughout the fiscal year to determine that extent; 
  (c) in the case of the determination, under subsection (11) or (15), of the operative extent or the procurative extent of the business input, no specified method applied to the business input and the other attribution method used by the financial institution to determine that extent was fair and reasonable and used consistently by the financial institution throughout the fiscal year; 
  (d) in the case of the determination, under subsection (12), of the operative extent or the procurative extent of the business input, the financial institution used a direct attribution method consistently throughout the fiscal year to determine that extent; 
  (e) in the case of the determination, under subsection (13), of the operative extent or the procurative extent of the business input, no direct attribution method applied to the business input and the other attribution method used by the financial institution to determine that extent was fair and reasonable and used consistently by the financial institution throughout the fiscal year; 
  (f) in the case of the determination, under subsection (21), of the operative extent or the procurative extent of the business input, the particular methods referred to in that subsection were used consistently, and as indicated in the application referred to in that subsection, throughout the fiscal year; and 
  (g) in the case of the determination, under subsection (27), of the operative extent or the procurative extent of the business input, 
  (i) the methods specified by the financial institution in the application referred to in that subsection were 
  (A) fair and reasonable, and 
  (B) used consistently, and as indicated in the application referred to in paragraph (27)(a), by the financial institution throughout the fiscal year, and 
  (ii) if the Minister has provided modifications to those methods as described in paragraph (27)(e), the modified methods are not fair and reasonable for the purpose of determining the operative extent and the procurative extent of the business inputs of the financial institution for the fiscal year. 
  
  ### Ministerial direction
  
  (32) If a financial institution is required to use a method (in this subsection referred to as the “previous method”) in accordance with any of subsections (10) to (15) in respect of a fiscal year of the financial institution, the Minister may at any time, by notice in writing, direct the financial institution to use, for the purposes of determining for the fiscal year, and any subsequent fiscal year, the operative extent and the procurative extent of each business input referred to in that subsection, another method that is fair and reasonable and, if the Minister so directs, the other method, and not the previous method, shall apply for those purposes. 
  
  ### Method directed by the Minister — appeals
  
  (33) If under subsection (32) the Minister directs a financial institution to use a method in respect of a business input for a fiscal year, the Minister assesses the net tax of the financial institution for a reporting period included in the fiscal year and the financial institution appeals the assessment under this Part in respect of an issue relating to the application of that subsection, 
  (a) the Minister shall establish on a balance of probabilities that the method is fair and reasonable; and 
  (b) if the final determination of the courts is that the method is not fair and reasonable, the Minister shall not direct the financial institution under subsection (32) to use another method for the fiscal year in respect of the business input. 
  
  ### Disposition of personal property
  
  141.1 (1) For the purposes of this Part, 
  (a) where a person makes a supply (other than an exempt supply) of personal property that 
  (i) was last acquired or imported by the person, or was brought into a participating province by the person after it was last acquired or imported by the person, for consumption or use in the course of commercial activities of the person or was consumed or used by the person in the course of a commercial activity of the person after it was last acquired or imported by the person, or 
  (ii) was manufactured or produced by the person in the course of a commercial activity of the person or for consumption or use in the course of a commercial activity of the person, or was manufactured or produced by the person and consumed or used in the course of a commercial activity of the person, and was not deemed under this Part to have been acquired by the person, the person shall be deemed to have made the supply in the course of the commercial activity; and 
  (b) where a person makes a supply (other than a supply made by way of lease, licence or similar arrangement in the course of a business of the person) of personal property that 
  (i) was last acquired or imported by the person exclusively for consumption or use in the course of activities of the person that are not commercial activities, was not brought into a participating province for consumption or use in the course of commercial activities of the person after it was last acquired or imported by the person and was not consumed or used by the person in the course of commercial activities of the person after it was last acquired or imported by the person, or 
  (ii) was manufactured or produced by the person in the course of activities of the person that are not commercial activities exclusively for consumption or use in the course of activities of the person that are not commercial activities, was not brought into a participating province for consumption or use in the course of commercial activities of the person and was not consumed or used in the course of a commercial activity of the person and was not deemed under this Part to have been acquired by the person, the person shall be deemed to have made the supply otherwise than in the course of commercial activities. 
  
  ### Disposition of inventory, etc.
  
  (2) For the purposes of this Part, 
  (a) where a person makes a particular supply by way of sale of personal property or a service that was acquired, imported, brought into a participating province, manufactured or produced by the person exclusively for the purpose of making a supply of that property or service by way of sale in the course of a business of the person or in the course of an adventure or concern of the person in the nature of trade, except where 
  (i) the particular supply is an exempt supply, 
  (ii) paragraph (b) applies in respect of the particular supply, or 
  (iii) the person is an individual or a partnership, all of the members of which are individuals, who carries on the business or engages in the adventure or concern without a reasonable expectation of profit, the person shall be deemed to have made the particular supply in the course of commercial activities of the person; and 
  (b) where a person makes a supply by way of sale of personal property or a service that was acquired, imported, manufactured or produced by the person exclusively for the purpose of making an exempt supply of the property or service by way of sale, the person shall be deemed to have made the supply otherwise than in the course of commercial activities. 
  
  ### Acquisition, etc., of activities
  
  (3) For the purposes of this Part, 
  (a) to the extent that a person does anything (other than make a supply) in connection with the acquisition, establishment, disposition or termination of a commercial activity of the person, the person shall be deemed to have done that thing in the course of commercial activities of the person; and 
  (b) to the extent that a person does anything (other than make a supply) in connection with the acquisition, establishment, disposition or termination of an activity of the person that is not a commercial activity, the person shall be deemed to have done that thing otherwise than in the course of commercial activities. 
  
  ### Sale of personal property of a municipality
  
  141.2 (1) Despite section 141.1, for the purposes of this Part, a supply (other than an exempt supply) made by way of sale of personal property of a municipality is deemed to have been made in the course of its commercial activities. 
  
  ### Sale of personal property of a designated municipality
  
  (2) Despite section 141.1, for the purposes of this Part, a supply (other than an exempt supply) made by way of sale of personal property of a person designated to be a municipality for the purposes of section 259 is deemed to have been made in the course of its commercial activities if the property is designated municipal property of the person. 
  
  ### General rule — in Canada
  
  142 (1) For the purposes of this Part, subject to sections 143, 144 and 179, a supply shall be deemed to be made in Canada if 
  (a) in the case of a supply by way of sale of tangible personal property, the property is, or is to be, delivered or made available in Canada to the recipient of the supply; 
  (b) in the case of a supply of tangible personal property otherwise than by way of sale, possession or use of the property is given or made available in Canada to the recipient of the supply; 
  (c) in the case of a supply of intangible personal property, 
  (i) the property may be used in whole or in part in Canada, or 
  (ii) the property relates to real property situated in Canada, to tangible personal property ordinarily situated in Canada or to a service to be performed in Canada; 
  (d) in the case of a supply of real property or of a service in relation to real property, the real property is situated in Canada; 
  (e)  [Repealed, 1997, c. 10, s. 6]  
  (f) the supply is a supply of a prescribed service; or 
  (g) in the case of a supply of any other service, the service is, or is to be, performed in whole or in part in Canada. 
  
  ### General rule — outside Canada
  
  (2) For the purposes of this Part, a supply shall be deemed to be made outside Canada if 
  (a) in the case of a supply by way of sale of tangible personal property, the property is, or is to be, delivered or made available outside Canada to the recipient of the supply; 
  (b) in the case of a supply of tangible personal property otherwise than by way of sale, possession or use of the property is given or made available outside Canada to the recipient of the supply; 
  (c) in the case of a supply of intangible personal property, 
  (i) the property may not be used in Canada, or 
  (ii) the property relates to real property situated outside Canada, to tangible personal property ordinarily situated outside Canada or to a service to be performed wholly outside Canada; 
  (d) in the case of a supply of real property or a service in relation to real property, the real property is situated outside Canada; 
  (e)  [Repealed, 1997, c. 10, s. 6]  
  (f) the supply is a supply of a prescribed service; or 
  (g) in the case of a supply of any other service, the service is, or is to be, performed wholly outside Canada. 
  
  ### Mobile and floating homes
  
  (3) For the purposes of this section, 
  (a) a floating home, and 
  (b) a mobile home that is not affixed to land shall each be deemed to be tangible personal property and not real property. 
  
  ### Billing location
  
  142.1 (1) For the purposes of this section, the billing location for a telecommunication service supplied to a recipient is in Canada if 
  (a) where the consideration payable for the service is charged or applied to an account that the recipient has with a person who carries on the business of supplying telecommunication services and the account relates to a telecommunications facility that is used or is available for use by the recipient to obtain telecommunication services, that telecommunications facility is ordinarily located in Canada; and 
  (b) in any other case, the telecommunications facility used to initiate the service is located in Canada. 
  
  ### Place of supply of telecommunication service
  
  (2) Notwithstanding section 142 and subject to section 143, for the purposes of this Part, a supply of a telecommunication service is deemed to be made in Canada where 
  (a) in the case of a telecommunication service of making telecommunications facilities available, the facilities or any part thereof are located in Canada; and 
  (b) in any other case, 
  (i) the telecommunication is emitted and received in Canada, or 
  (ii) the telecommunication is emitted or received in Canada and the billing location for the service is in Canada. 
  
  ### Supply by non-resident
  
  143 (1) For the purposes of this Part, a supply of personal property or a service made in Canada by a non-resident person shall be deemed to be made outside Canada, unless 
  (a) the supply is made in the course of a business carried on in Canada; 
  (b) at the time the supply is made, the person is registered under Subdivision D of Division V; 
  (b.1) the supply is a qualifying tangible personal property supply (as defined in subsection 211.1(1)) and the person is required under section 211.22 to be registered under Subdivision D of Division V at the time the supply is made; or  
  (c) the supply is the supply of an admission in respect of a place of amusement, a seminar, an activity or an event where the non-resident person did not acquire the admission from another person. 
  (2)  [Repealed, 1993, c. 27, s. 20]  
  
  ### Supply by mail or courier
  
  143.1 Notwithstanding subsections 142(2) and 143(1), for the purposes of this Part, a supply of prescribed tangible personal property made by a person who is registered under Subdivision D of Division V shall be deemed to be made in Canada if the property is sent, by mail or courier, to the recipient of the supply at an address in Canada. 
  
  ### Supply before release
  
  144 For the purposes of this Part, a supply of goods that have been imported in compliance with the Customs Act or any other Act of Parliament that prohibits, controls or regulates the importation of goods, but have not been released before the goods are delivered or made available in Canada to the recipient of the supply, shall be deemed to be made outside Canada.  
  
  ### Property in transit
  
  144.01 For the purposes of this Part (other than sections 4, 15.3 and 15.4 of Part V of Schedule VI), if a continuous transmission commodity is transported by means of a wire, pipeline or other conduit 
  (a) outside Canada in the course of, and solely for the purpose of, being delivered by that means from a place in Canada to another place in Canada, 
  (b) in Canada in the course of, and solely for the purpose of, being delivered by that means from a place outside Canada to another place outside Canada, 
  (c) from a place in Canada to a place outside Canada where it is stored or taken up as surplus for a period until further transported by that means to a place in Canada in the same measure and state except to the extent of any consumption or alteration necessary or incidental to its transportation, or 
  (d) from a place outside Canada to a place in Canada where it is stored or taken up as surplus for a period until further transported by that means to a place outside Canada in the same measure and state except to the extent of any consumption or alteration necessary or incidental to its transportation, the commodity is deemed not to be exported or imported in the course of that transportation or further transportation. 
  
  ### Supply in a province
  
  144.1 For the purposes of this Part, a supply is deemed to be made in a province if it is made in Canada and is, under the rules set out in Schedule IX, made in the province, but is deemed to be made outside the province in any other case and a supply made in Canada that is not made in any participating province is deemed to be made in a non-participating province. 
  145  [Repealed, 1997, c. 10, s. 8]  
  
  ### Supplies by governments and municipalities
  
  146 For the purposes of this Part, the following supplies, when made for consideration by a government or municipality or a board, commission or other body established by a government or municipality, shall, for greater certainty, be deemed to be made in the course of a commercial activity, except where the supply is an exempt supply: 
  (a) a supply of a service of testing or inspecting any property for the purpose of verifying or certifying that the property meets particular standards of quality or is suitable for consumption, use or supply in a particular manner; 
  (b) a supply to a consumer of a right to hunt or fish; 
  (c) a supply of a right to take or remove forestry products, products that grow in water, fishery products, minerals or peat, where the supply is made to 
  (i) a consumer, or 
  (ii) a person who is not a registrant and who acquires the right in the course of a business of the person of making supplies of the products, minerals or peat to consumers; 
  (d) a supply of a licence, permit, quota or similar right in respect of the importation of alcoholic beverages; and 
  (e) a supply of a right to enter, to have access to or to use property of the government, municipality or other body. 
  147  [Repealed, 1994, c. 9, s. 5]  
  
  ## Small Suppliers 
  
  ### Small suppliers
  
  148 (1) For the purposes of this Part, a person is a small supplier throughout a particular calendar quarter and the first month immediately following the particular calendar quarter if 
  (a) the total of all amounts each of which is the value of the consideration (other than consideration referred to in section 167.1 that is attributable to goodwill of a business) that became due in the four calendar quarters immediately preceding the particular calendar quarter, or that was paid in those four calendar quarters without having become due, to the person or an associate of the person at the beginning of the particular calendar quarter for taxable supplies (other than supplies of financial services and supplies by way of sale of capital property of the person or associate) made inside or outside Canada by the person or associate does not exceed the total of 
  (b) $30,000 or, where the person is a public service body, $50,000, and 
  (c) where, in the four calendar quarters immediately preceding the particular calendar quarter, the person or an associate of the person at the beginning of the particular calendar quarter made a taxable supply of a right to participate in a game of chance or is deemed, under section 187, to have made a supply in respect of a bet and the supply is a taxable supply, the total of all amounts each of which is 
  (i) an amount of money paid or payable by the person or the associate as a prize or winnings in the game or in satisfaction of the bet, or 
  (ii) consideration paid or payable by the person or the associate for property or a service that is given as a prize or winnings in the game or in satisfaction of the bet. 
  
  ### Exception
  
  (2) Notwithstanding subsection (1), where at any time in a calendar quarter 
  (a) the total of all amounts each of which is the value of the consideration (other than consideration referred to in section 167.1 that is attributable to goodwill of a business) that became due in the calendar quarter, or that was paid in that calendar quarter without having become due, to a person or an associate of the person at the beginning of the calendar quarter for taxable supplies (other than supplies of financial services and supplies by way of sale of capital property of the person or associate) made inside or outside Canada by the person or associate exceeds the total of 
  (b) $30,000 or, where the person is a public service body, $50,000, and 
  (c) where, in the calendar quarter, the person or an associate of the person at the beginning of the calendar quarter made a taxable supply of a right to participate in a game of chance or is deemed, under section 187, to have made a supply in respect of a bet and the supply is a taxable supply, the total of all amounts each of which is 
  (i) an amount of money paid or payable by the person or the associate as a prize or winnings in the game or in satisfaction of the bet, or 
  (ii) consideration paid or payable by the person or the associate for property or a service that is given as a prize or winnings in the game or in satisfaction of the bet, the person is not a small supplier throughout the period beginning immediately before that time and ending on the last day of the calendar quarter. 
  
  ### Non-application
  
  (3) This section does not apply to 
  (a) a person registered under Subdivision E of Division II; or 
  (b) a non-resident person that makes a supply in Canada of admissions in respect of a place of amusement, a seminar, an activity or an event and whose only business carried on in Canada is the making of such supplies. 
  
  ### Meaning of 
  *associate* 
  
  (4) In this section, 
  *associate* of a particular person at any time means another person who is associated at that time with the particular person.  
  
  ### Meaning of 
  *gross revenue* 
  
  148.1 (1) In this section, 
  *gross revenue* of a person for a fiscal year of the person means the amount, if any, by which  
  (a) the total of all amounts each of which is 
  (i) a gift that is received or becomes receivable (depending on the method, in this paragraph referred to as the “accounting method”, followed by the person in determining the person’s revenue for the year) by the person during the fiscal year, 
  (ii) a grant, subsidy, forgivable loan or other assistance (other than a refund or rebate of, or credit in respect of, taxes, duties or fees imposed by an Act of Parliament or the legislature of a province) in the form of money that is received or becomes receivable (depending on the accounting method) by the person during the fiscal year from a government, municipality or other public authority, 
  (iii) revenue that is or would be, if the person were a taxpayer under the Income Tax Act, included for the purposes of that Act in determining the person’s income for the fiscal year from property, a business, an adventure or concern in the nature of trade or other source and that is not included in subparagraph (ii),  
  (iv) an amount that is or would be, if the person were a taxpayer under the Income Tax Act, a capital gain for the fiscal year for the purposes of that Act from the disposition of property of the person, or  
  (v) other revenue of any kind whatever (other than an amount that is or would be, if the person were a taxpayer under the Income Tax Act, included in determining the amount of a capital gain or loss of the person for the purposes of that Act) that is received or becomes receivable (depending on the accounting method) by the person during the fiscal year,  and that is not included in determining the total under this paragraph for a preceding fiscal year of the person, exceeds 
  (b) the total of all amounts each of which is or would be, if the person were a taxpayer under the Income Tax Act, a capital loss for the fiscal year for the purposes of that Act from the disposition of property of the person.  
  
  ### Charity and public institution as small supplier
  
  (2) For the purposes of this Part, a person that is a charity or a public institution at any time in a particular fiscal year of the person is a small supplier throughout the particular fiscal year if 
  (a) the particular fiscal year is the first fiscal year of the person; 
  (b) the particular fiscal year is the second fiscal year of the person and the gross revenue of the person for the first fiscal year of the person was $250,000 or less; or 
  (c) the particular fiscal year is not the first or second fiscal year of the person and the gross revenue of the person for either of the two fiscal years of the person immediately preceding the particular fiscal year was $250,000 or less. 
  
  ## Financial Institutions 
  
  ### Financial institutions
  
  149 (1) For the purposes of this Part, a person is a financial institution throughout a particular taxation year of the person if 
  (a) the person is 
  (i) a bank, 
  (ii) a corporation that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as a trustee, 
  (iii) a person whose principal business is as a trader or dealer in, or as a broker or salesperson of, financial instruments or money, 
  (iv) a credit union, 
  (v) an insurer or any other person whose principal business is providing insurance under insurance policies, 
  (vi) a segregated fund of an insurer, 
  (vii) the Canada Deposit Insurance Corporation, 
  (viii) a person whose principal business is the lending of money or the purchasing of debt securities or a combination thereof, 
  (ix) an investment plan, 
  (x) a person providing services referred to in section 158, or 
  (xi) a corporation deemed under section 151 to be a financial institution, at any time in the particular year; 
  (b) the total (in this section referred to as the “financial revenue”) of all amounts each of which is an amount that is interest, a dividend (other than a dividend in kind or a patronage dividend) or a separate fee or charge for a financial service and that is included in computing, for the purposes of the Income Tax Act, the person’s income, or, if the person is an individual, the person’s income from a business, for the taxation year of the person preceding the particular year exceeds the greater of  
  (i) 10% of the total of 
  (A) the amount that would, but for subsection (4), be the financial revenue, and 
  (B) the total of all consideration that became due in that preceding taxation year, or that was paid in that preceding taxation year without having become due, to the person for supplies (other than supplies by way of sale of capital property of the person and supplies of financial services that are not zero-rated supplies described by section 3 of Part IX of Schedule VI) made by the person, and 
  (ii) the amount determined by the formula is the number of days in that preceding taxation year; or 
  (c) the total of all amounts each of which is an amount that is included in computing, for the purposes of that Act, the person’s income, or, where the person is an individual, the person’s income from a business, for that preceding taxation year and that is interest, or a separate fee or charge, with respect to 
  (i) a credit card or charge card issued by the person, or 
  (ii) the making of an advance, the lending of money or the granting of credit exceeds 
  (iii) the amount determined by the formula is the number of days in that preceding taxation year. 
  
  ### Amalgamations
  
  (2) For the purposes of this Part, where 
  (a) at any time two or more corporations (in this subsection referred to as the “predecessors”) are merged or amalgamated to form one corporation (in this subsection referred to as the “new corporation”), and 
  (b) the principal business of the new corporation immediately after that time is the same as or similar to the business of one or more of the predecessors that immediately before that time was a financial institution, the new corporation is a financial institution throughout the taxation year of the new corporation that began at that time. 
  
  ### Acquisition of business
  
  (3) For the purposes of this Part, where 
  (a) a particular person, at any time in a taxation year of the particular person, acquires a business as a going concern from another person who was immediately before that time a financial institution, and 
  (b) immediately after that time the principal business of the particular person is the business so acquired, the particular person is a financial institution throughout the part of that taxation year that is after that time. 
  
  ### Exclusion of interest and dividend
  
  (4) In determining a total for a person under paragraph (1)(b) or (c), there shall not be included interest, or any dividend, from a corporation related to the person. 
  
  ### Exclusion — sales of precious metals
  
  (4.01) In determining an amount of financial revenue, there shall not be included a separate fee or charge for a financial service the supply of which is a zero-rated supply described by section 3 of Part IX of Schedule VI. 
  
  ### Exclusion of interest
  
  (4.02) In determining a total under paragraph (1)(c) for a person (in this subsection and subsection (4.03) referred to as the “depositor”), interest from another person in respect of a deposit of money received or held by the other person in the usual course of its deposit-taking business is not to be included if 
  (a) the other person is 
  (i) a bank, 
  (ii) a credit union, 
  (iii) a corporation authorized under the laws of Canada or a province to carry on the business of offering to the public its services as a trustee, or 
  (iv) a corporation authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real property or investing in indebtedness on the security of mortgages or hypothecs on real property; and 
  (b) the other person is obligated, or may by the demand of the depositor become obligated, to repay the money on or before the particular day that is 364 days after the day on which the deposit of money is made. 
  
  ### Repayment obligation — special cases
  
  (4.03) For the purpose of paragraph (4.02)(b), in determining whether the other person is obligated, or may by the demand of the depositor become obligated, to repay the money on or before the particular day that is 364 days after the day on which the deposit of money is made, the following rules apply: 
  (a) if the other person is obligated to repay the money to the depositor on a fixed day and also is or may become obligated to repay the money on an earlier day by virtue of a right of withdrawal, reinvestment or other right afforded to the depositor by the terms under which the money was solicited or received or is held, then only the obligation to repay on the fixed day is to be considered, whether or not the right is exercised; and 
  (b) if the other person is obligated to repay the money to the depositor on a fixed day and also is or may become obligated to repay the money on a later day by virtue of a right afforded to any person to extend the term of the deposit at a rate or rates of interest determined at the time the money was solicited or received, then only the obligation to repay on the later day is to be considered, whether or not the right is exercised. 
  
  ### Charities, municipalities, etc.
  
  (4.1) Paragraphs (1)(b) and (c) do not apply for the purpose of determining if a person is a financial institution throughout a particular taxation year where the person is 
  (a) at the beginning of the particular year, 
  (i) a charity, municipality, school authority, hospital authority, public college or university, or 
  (ii) a non-profit organization that operated, otherwise than for profit, a health care facility within the meaning of paragraph (c) of the definition of that expression in section 1 of Part II of Schedule V; or 
  (b) on the last day of the taxation year of the person preceding the particular year, a qualifying non-profit organization (within the meaning of subsection 259(2)). 
  
  ### Meaning of investment plan 
  
  (5) In this section, 
  *investment plan* means  
  (a) a trust governed by 
  (i) a registered pension plan, 
  (i.1) a pooled registered pension plan, 
  (ii) an employees profit sharing plan, 
  (iii) a registered supplementary unemployment benefit plan, 
  (iv) a registered retirement savings plan, 
  (iv.1) a TFSA, 
  (v) a deferred profit sharing plan, 
  (vi) a registered education savings plan, 
  (vi.1) a registered disability savings plan, 
  (vii) a registered retirement income fund, 
  (viii) an employee benefit plan, 
  (ix) an employee trust, 
  (x) a mutual fund trust, 
  (xi)  [Repealed, 2017, c. 33, s. 109]  
  (xii) a unit trust, or 
  (xiii) a retirement compensation arrangement, as each of those terms is defined for the purposes of the Income Tax Act or the Income Tax Regulations ;  
  (b) an investment corporation, as that term is defined for the purposes of that Act; 
  (c) a mortgage investment corporation, as that term is defined for the purposes of that Act; 
  (d) a mutual fund corporation, as that term is defined for the purposes of that Act; 
  (e) a non-resident owned investment corporation, as that term is defined for the purposes of that Act; 
  (f) a corporation exempt from tax under that Act by reason of paragraph 149(1)(o.1) or (o.2) of that Act; 
  (f.1) an investment limited partnership; and 
  (g) a prescribed person or a person of a prescribed class. 
  
  ### Election for exempt supplies
  
  150 (1) For the purposes of this Part, where at any time a person who is a member of a closely related group of which a listed financial institution is a member files an election made jointly by the person and a corporation that is also a member of the group at that time, every supply between the person and the corporation of property by way of lease, licence or similar arrangement or of a service that is made at a time when the election is in effect and that would, but for this subsection, be a taxable supply is deemed to be a supply of a financial service. 
  
  ### Exceptions
  
  (2) Subsection (1) does not apply to 
  (a) property held or services rendered by a member of a closely related group as a participant in a joint venture with another person while an election under section 273 made jointly by the member and the other person is in effect; 
  (b) an imported taxable supply, as defined in section 217; or 
  (c) a supply of services in relation to the clearing or settlement of cheques and other payment items under the national payments system of the Canadian Payments Association if the recipient (in this paragraph referred to as the “related purchaser”) is acquiring all or part of those services for the purpose of making a supply of exempt services to 
  (i) an unrelated party, or 
  (ii) a supplier that is a member of a closely related group of which the related purchaser is a member and that acquires all or part of the exempt services for the purpose of making a supply of exempt services to an unrelated party or to a supplier described by this subparagraph. 
  
  ### Definitions
  
  (2.1) The following definitions apply in subsection (2).  
  *exempt services* means services prescribed by section 3 of the Financial Services (GST/HST) Regulations. (services exonérés)   
  *unrelated party*, in respect of a supply of services, means a person that is not a member of a closely related group of which the supplier is a member and that is acquiring the services for the purpose of making a supply of services in relation to the clearing or settlement of cheques and other payment items under the national payments system of the Canadian Payments Association. (tiers non lié)  
  
  ### Form and manner of filing
  
  (3) An election under subsection (1) relating to supplies between a member of a closely related group and a corporation shall 
  (a) be made in prescribed form containing prescribed information; 
  (b) specify the day the election is to become effective; and 
  (c) be filed by the member with the Minister in prescribed manner on or before the day on or before which a return under Division V for the reporting period of the member in which the election is to become effective is required to be filed. 
  
  ### Effect of election
  
  (4) An election under subsection (1) shall be effective for the period beginning on the day specified in the election and ending on the earliest of 
  (a) the day either member ceases to be a member of the closely related group, 
  (b) the first day the closely related group does not include a listed financial institution (other than a person that is a financial institution only by reason of section 151), and 
  (c) a day that the members specify in a notice of revocation in prescribed form containing prescribed information filed jointly by the members with the Minister in prescribed manner, which day is at least three hundred and sixty-five days after the day specified in the election. 
  
  ### Subsequent elections
  
  (5) Where an election made under subsection (1) jointly by a member of a closely related group and a corporation ceases to be effective, the member and the corporation shall not thereafter make an election jointly under subsection (1) without the written concurrence of the Minister. 
  
  ### Credit unions deemed to have elected
  
  (6) For the purposes of this Part, 
  (a) every credit union shall be deemed to be at all times a member of a closely related group of which every other credit union is a member; 
  (b) every credit union shall be deemed to have made an election under subsection (1) with every other credit union that is in effect at all times; and 
  (c) every supply of tangible personal property by a credit union, other than a capital property of the credit union, to another credit union shall be deemed to be a supply of a financial service. 
  (d)  [Repealed, 1993, c. 27, s. 25]  
  
  ### Mutual insurance group — deemed election
  
  (7) For the purposes of this Part, every member of a mutual insurance group shall be deemed 
  (a) to be at all times a member of a closely related group of which every other member of the mutual insurance group is a member; and 
  (b) to have made, with every other member of the group, an election under subsection (1) that is in effect at all times. 
  
  ### Effect of election under subsection 150(1)
  
  151 For the purposes of this Part, where a corporation that is a member of a closely related group has made an election under subsection 150(1), the corporation shall be deemed to be a financial institution throughout the period during which the election is in effect. 
  
  ## Consideration 
  
  ### When consideration due
  
  152 (1) For the purposes of this Part, the consideration, or a part thereof, for a taxable supply shall be deemed to become due on the earliest of 
  (a) the earlier of the day the supplier first issues an invoice in respect of the supply for that consideration or part and the date of that invoice, 
  (b) the day the supplier would have, but for an undue delay, issued an invoice in respect of the supply for that consideration or part, and 
  (c) the day the recipient is required to pay that consideration or part to the supplier pursuant to an agreement in writing. 
  
  ### Consideration under leases, etc.
  
  (2) Notwithstanding subsection (1), where property is supplied by way of lease, licence or similar arrangement under an agreement in writing, the consideration, or any part thereof, for the supply shall, for the purposes of this Part, be deemed to become due on the day the recipient is required to pay the consideration or part to the supplier pursuant to the agreement. 
  
  ### Payment
  
  (3) For the purposes of this Part, where consideration that is not money is given or required to be given, the consideration that is given or required to be given shall be deemed to be paid or required to be paid, as the case may be. 
  
  ### Value of consideration
  
  153 (1) Subject to this Division, the value of the consideration, or any part thereof, for a supply shall, for the purposes of this Part, be deemed to be equal to 
  (a) where the consideration or that part is expressed in money, the amount of the money; and 
  (b) where the consideration or that part is other than money, the fair market value of the consideration or that part at the time the supply was made. 
  
  ### Combined consideration
  
  (2) For the purposes of this Part, where 
  (a) consideration is paid for a supply and other consideration is paid for one or more other supplies or matters, and 
  (b) the consideration for one of the supplies or matters exceeds the consideration that would be reasonable if the other supply were not made or the other matter were not provided, the consideration for each of the supplies and matters shall be deemed to be that part of the total of all amounts, each of which is consideration for one of those supplies or matters, that may reasonably be attributed to each of those supplies and matters. 
  
  ### Barters between registrants
  
  (3) Where 
  (a) the consideration or a part of the consideration for a supply of property of a particular class or kind is property of that class or kind, 
  (b) both the supplier and the recipient are registrants, and 
  (c) the property is acquired by the recipient and the consideration or that part thereof is acquired by the supplier as inventory for use exclusively in commercial activities of the recipient or supplier, as the case may be, the value of the consideration or that part thereof shall be deemed to be nil. 
  
  ### Used tangible personal property trade-ins
  
  (4) Where, at the time a supplier makes a supply of tangible personal property to a recipient, the supplier accepts, in full or partial consideration for the supply, other property (in this subsection and subsection (5) referred to as the “trade-in”) that 
  (a) is used tangible personal property or a leasehold interest therein, and 
  (b) is acquired for consumption, use or supply in the course of a commercial activity of the supplier, and the recipient is not required to collect tax in respect of the supply of the trade-in, the value of the consideration for the supply made by the supplier is deemed, for the purposes of this Part, to be equal to the amount, if any, by which the value of the consideration for that supply (as otherwise determined under this Part) exceeds 
  (c) except where paragraph (d) applies, the amount credited to the recipient in respect of the trade-in, and 
  (d) where 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 thereof is transferred to the supplier, that fair market value. 
  
  ### Sale-leaseback arrangements
  
  (4.1) For the purposes of this Part, if 
  (a) a person (in this subsection and subsections (4.2) to (4.5) referred to as the “lessee”) makes a supply by way of sale of tangible personal property to another person (in this subsection referred to as the “lessor”), 
  (b) the lessee is not required to collect tax in respect of that supply, and 
  (c) the lessor immediately makes a taxable supply by way of lease of the property to the lessee under an agreement (in this subsection and subsections (4.2) to (4.5) referred to as the “original leaseback agreement”), the value of the consideration for a supply of the property by way of lease that, at a particular time, becomes due or is paid without having become due under a particular agreement that is the original leaseback agreement or a subsequent lease in respect of that agreement is deemed to be equal to the amount determined by the formula is the value of that consideration as otherwise determined under this Part, and is the amount (in this subsection referred to as the “purchase credit”) that is equal to the least of 
  (i) the value of A, 
  (ii) the amount determined by the formula is the amount (in this subsection and subsection (4.5) referred to as the “unused total purchase credit”), if any, by which the consideration for the supply by way of sale exceeds the total of all amounts each of which is the purchase credit that was determined in calculating the amount deemed under this subsection to be the value of any consideration that, before the particular time, became due or was paid without having become due under the original leaseback agreement or a subsequent lease in respect of that agreement, and is the specified number of remaining lease payments under the particular agreement at the particular time, and 
  (iii) if there is no unused total purchase credit, zero. 
  
  ### Meaning of 
  *specified number of remaining lease payments* 
  
  (4.2) In subsection (4.1), the 
  *specified number of remaining lease payments*, at a particular time, in respect of a particular agreement for the supply of property by way of lease that is an original leaseback agreement or a subsequent lease in respect of that agreement, is the amount determined by the formula  is the total number of payments that the lessee was obligated to make as consideration for the supplies of the property by way of lease under the particular agreement based on the terms of that agreement at the time it was entered into; and is the total number of the payments referred to in the description of A that, before the particular time, became due or were paid by the lessee. 
  
  ### Meaning of 
  *subsequent lease* 
  
  (4.3) In subsections (4.1) to (4.5), 
  *subsequent lease*, in respect of an original leaseback agreement for the supply by way of lease of property to a lessee, means  
  (a) an agreement for the supply by way of lease of the property that constitutes a new agreement between the lessee and an assignee of the rights and obligations of the person who is the supplier under the original leaseback agreement or under an agreement referred to in this paragraph or in paragraph (b); or 
  (b) an agreement for the supply of the property to the lessee by way of lease that succeeds, as a new agreement, either the original leaseback agreement or a particular agreement referred to in paragraph (a) or in this paragraph upon a renewal or variation of that original leaseback agreement or particular agreement. 
  
  ### Deemed subsequent lease
  
  (4.4) For the purposes of subsections (4.1), (4.2) and (4.5), if a supplier agrees, at any time, to renew, vary, terminate (otherwise than upon the exercise of an option to purchase) or assign a particular agreement for the supply of property to a lessee by way of lease that is an original leaseback agreement or a subsequent lease in respect of that agreement and the renewal, variation, termination or assignment does not constitute a novation of the particular agreement but has the effect of changing the number of payments that the lessee is obligated to make for supplies by way of lease of the property under the particular agreement, 
  (a) the supplier and lessee are deemed to have, at that time, entered into a subsequent lease in respect of the original leaseback agreement; and 
  (b) all supplies by way of lease for which consideration becomes due, or is paid without having become due, at or after the time the renewal, variation, termination or assignment takes effect that would, but for this subsection, be made under the particular agreement are deemed to be made under that subsequent lease and not under the particular agreement. 
  
  ### Exercise of option to purchase
  
  (4.5) For the purposes of this Part other than a purpose referred to in paragraph (5)(a), if 
  (a) a supply by way of sale of property is made to a lessee on the exercise by the lessee of an option to purchase the property provided for in an original leaseback agreement entered into by the lessee in respect of the property, or in a subsequent lease in respect of that agreement, to which subsection (4.1) applied, and 
  (b) immediately before the earliest time at which consideration for the supply becomes due or is paid without having become due, there is an unused total purchase credit in respect of the property, the following rules apply: 
  (c) the value of the consideration for the supply is deemed to be equal to the amount determined by the formula is the value of that consideration as otherwise determined under this Part, and is that unused total purchase credit, and 
  (d) subsection (4.1) does not apply to any consideration that, after that earliest time, becomes due or is paid without having become due for any supply by way of lease of the property that was made under the original leaseback agreement or under a subsequent lease in respect of that agreement. 
  
  ### Non-arm’s length supplies
  
  (4.6) For the purposes of subsection (4.1), if a person makes a supply by way of sale of property to a recipient with whom the person is not dealing at arm’s length and the consideration for the supply exceeds the fair market value of the property at the time ownership of the property is transferred to the recipient, the consideration for the supply is deemed to be equal to that fair market value. 
  
  ### Exception
  
  (5) Subsections (4) and (4.1) do not apply 
  (a) for the purpose of determining, for the purposes of any provision of this Part or any Schedule to this Act other than Schedules I to IV, whether the value of consideration for a supply of property equals, exceeds or is less than another amount specified in the provision; 
  (b) for the purposes of section 148 or 249; or 
  (c) if the supply of the trade-in, or the supply by way of sale referred to in paragraph (4.1)(a), as the case may be, is 
  (i) a zero-rated supply, 
  (ii) a supply made outside Canada, or 
  (iii) a supply in respect of which no tax is payable because of subsection 156(2) or paragraph 167(1.1)(a). 
  
  ### Exchange of natural gas liquids for make-up gas
  
  (6) For the purposes of this Part, if 
  (a) natural gas is transported by pipeline to a straddle plant at which natural gas liquids or ethane (each of which is, in this subsection, referred to as “natural gas liquids”) is recovered from the natural gas, 
  (b) the residue gas is returned to the pipeline after the recovery along with other natural gas (in this subsection referred to as “make-up gas”) that is supplied solely to make up for the loss of energy content due to the recovery, and 
  (c) the consideration or a part of the consideration for any supply of the natural gas liquids (or the right to recover the liquids) or any supply of the make-up gas is 
  (i) in the case of a supply of the natural gas liquids or the right to recover the liquids, the make-up gas, and 
  (ii) in the case of a supply of the make-up gas, the natural gas liquids or the right to recover the liquids, the value of that consideration or part, as the case may be, is deemed to be nil. 
  
  ### Meaning of 
  *provincial levy* 
  
  154 (1) In this section, 
  *provincial levy* means a tax, duty or fee imposed under an Act of the legislature of a province in respect of the supply, consumption or use of property or a service.  
  
  ### Levies included in consideration
  
  (2) For the purposes of this Part, the consideration for a supply of property or a service includes 
  (a) any tax, duty or fee imposed under an Act of Parliament that is payable by the recipient, or payable or collectible by the supplier, in respect of that supply or in respect of the production, importation, consumption or use of the property or service, other than tax under this Part that is payable by the recipient; 
  (b) any provincial levy that is payable by the recipient, or payable or collectible by the supplier, in respect of that supply or in respect of the consumption or use of the property or service, other than a prescribed provincial levy that is payable by the recipient; and 
  (c) any other amount that is collectible by the supplier under an Act of the legislature of a province and that is equal to, or is collectible on account of or in lieu of, a provincial levy, except where the amount is payable by the recipient and the provincial levy is a prescribed provincial levy. 
  
  ### Reference to “recipient”
  
  (3) If, under this Part, a person is deemed to be the recipient of a supply in respect of which another person would, but for that deeming, be the recipient, a reference in this section to the recipient of the supply shall be read as a reference to that other person. 
  
  ### Non-arm’s length supplies
  
  155 (1) For the purposes of this Part, where a supply of property or a service is made between persons not dealing with each other at arm’s length for no consideration or for consideration less than the fair market value of the property or service at the time the supply is made, and the recipient of the supply is not a registrant who is acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the recipient, 
  (a) if no consideration is paid for the supply, the supply shall be deemed to be made for consideration, paid at that time, of a value equal to the fair market value of the property or service at that time; and 
  (b) if consideration is paid for the supply, the value of the consideration shall be deemed to be equal to the fair market value of the property or service at that time. 
  
  ### Exception
  
  (2) Subsection (1) does not apply to a supply of property or a service by a person where 
  (a) an amount is deemed under section 173 to be the total consideration for the supply; or 
  (b) in the absence of subsection (1), 
  (i) the person, because of subsection 170(1), would not be entitled to claim an input tax credit in respect of the acquisition or importation of the property or service by the person, 
  (ii) subsection 172(2) would apply to the supply, or 
  (iii) the supply would be an exempt supply included in Part V.1 or VI of Schedule V. 
  
  ### Definitions
  
  156 (1) The definitions in this subsection apply in this section.  
  *Canadian partnership* means a partnership each member of which is a corporation or partnership and is resident in Canada. (société de personnes canadienne)   
  *distribution* has the meaning assigned by subsection 55(1) of the Income Tax Act. (attribution)   
  *qualifying group* means  
  (a) a group of corporations, each member of which is closely related, within the meaning assigned by section 128, to each other member of the group; or 
  (b) a group of Canadian partnerships, or of Canadian partnerships and corporations, each member of which is closely related, within the meaning of this section, to each other member of the group. ( groupe admissible)   
  *qualifying member* of a qualifying group means a registrant that is a corporation resident in Canada or a Canadian partnership and that meets the following conditions:  
  (a) the registrant is a member of the group; 
  (b) the registrant is not a party to an election under subsection 150(1); and 
  (c) one of the following conditions is met: 
  (i) the registrant has property (other than financial instruments and property having a nominal value) and has last manufactured, produced, acquired or imported all or substantially all of its property (other than financial instruments and property having a nominal value) for consumption, use or supply exclusively in the course of commercial activities of the registrant, 
  (ii) the registrant has no property (other than financial instruments and property having a nominal value) and has made supplies and all or substantially all of the supplies made by the registrant are taxable supplies, or 
  (iii) the registrant has no property (other than financial instruments and property having a nominal value) and has not made taxable supplies and it is reasonable to expect that 
  (A) the registrant will be making supplies throughout the next 12 months, 
  (B) all or substantially all of those supplies will be taxable supplies, and 
  (C) all or substantially all of the property (other than financial instruments and property having a nominal value) to be manufactured, produced, acquired or imported by the registrant within the next 12 months will be for consumption, use or supply exclusively in the course of commercial activities of the registrant. ( membre admissible)   
  *secured creditor* [Repealed, 2000, c. 30, s. 25]   
  *security interest* [Repealed, 2000, c. 30, s. 25]   
  *specified member* of a qualifying group means  
  (a) a qualifying member of the group; or 
  (b) a temporary member of the group during the course of the reorganization referred to in paragraph (f) of the definition temporary member. (membre déterminé)   
  *temporary member* of a qualifying group means a corporation  
  (a) that is a registrant; 
  (b) that is resident in Canada; 
  (c) that is a member of the qualifying group; 
  (d) that is not a qualifying member of the qualifying group; 
  (e) that is not a party to an election under subsection 150(1); 
  (f) that receives a supply of property made in contemplation of a distribution made in the course of a reorganization described in subparagraph 55(3)(b)(i) of the Income Tax Act from the distributing corporation referred to in that subparagraph that is a qualifying member of the qualifying group;  
  (g) that, before receiving the supply, does not carry on any business or have any property (other than financial instruments); and 
  (h) the shares of which are transferred on the distribution. ( membre temporaire)  
  
  ### Closely related persons
  
  (1.1) For the purposes of this section, a particular Canadian partnership and another person that is a Canadian partnership or a corporation are closely related to each other at any time if, at that time, 
  (a) in the case where the other person is a Canadian partnership, 
  (i) all or substantially all of the interest in the other person is held by 
  (A) the particular partnership, 
  (B) a corporation, or a Canadian partnership, that is a member of a qualifying group of which the particular partnership is a member, or 
  (C) any combination of corporations or partnerships referred to in clauses (A) and (B), or 
  (ii) the particular partnership 
  (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 
  (B) holds all or substantially all of the interest in a Canadian partnership that is a member of a qualifying group of which the other person is a member; and 
  (b) in the case where the other person is a corporation, 
  (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, 
  (A) the particular partnership, 
  (B) a corporation, or a Canadian partnership, that is a member of a qualifying group of which the particular partnership is a member, or 
  (C) any combination of corporations or partnerships referred to in clauses (A) and (B), 
  (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, 
  (A) if the corporation is a member of a qualifying group of which the particular partnership is a member, the other person, and 
  (B) if the corporation is a member of a qualifying group of which the other person is a member, the particular partnership, 
  (iii) all or substantially all of the interest in the particular partnership is held by 
  (A) the other person, 
  (B) a corporation, or a Canadian partnership, that is a member of a qualifying group of which the other person is a member, or 
  (C) any combination of corporations or partnerships referred to in clauses (A) and (B), or 
  (iv) all or substantially all of the interest in a Canadian partnership is held by 
  (A) if the Canadian partnership is a member of a qualifying group of which the particular partnership is a member, the other person, and 
  (B) if the Canadian partnership is a member of a qualifying group of which the other person is a member, the particular partnership. 
  
  ### Persons closely related to the same person
  
  (1.2) If, under subsection (1.1), two persons are closely related to the same corporation or partnership, or would be so related if each member of that partnership were resident in Canada, the two persons are closely related to each other for the purposes of this section. 
  
  ### Interest in a partnership
  
  (1.3) For the purposes of this section, a person, or a group of persons, holds, at any time, all or substantially all of the interest in a partnership only if, at that time, 
  (a) the person, or every person in the group of persons, is a member of the partnership; and 
  (b) the person, or the members of the group collectively, as the case may be, is or are 
  (i) entitled to receive at least 90% of 
  (A) if the partnership had income for the last fiscal period (within the meaning of the Income Tax Act) of the partnership that ended before that time (or, if the partnership’s first fiscal period includes that time, for that period), the total of all amounts each of which is the share of that income from all sources that each member of the partnership is entitled to receive, or  
  (B) if the partnership had no income for the last fiscal period or the first fiscal period referred to in clause (A), as the case may be, the total of all amounts each of which is the share of the income of the partnership that each member of the partnership would be entitled to receive if the income of the partnership from each source were one dollar, 
  (ii) entitled to receive at least 90% of the total amount that would be paid to all members of the partnership (otherwise than as a share of any income of the partnership) if it were wound up at that time, and 
  (iii) able to direct the business and affairs of the partnership or would be so able if no secured creditor had any security interest in an interest in, or the property of, the partnership. 
  
  ### Election for nil consideration
  
  (2) For the purposes of this Part, if at any time after 2014 a person that is a specified member of a qualifying group files an election made jointly by the person and another specified member of the group, every taxable supply made between the person and the other specified member at a time when the election is in effect is deemed to have been made for no consideration. 
  
  ### Elections filed before 2015
  
  (2.01) For the purposes of this section, if an election made under this section has been filed by any person before January 1, 2015, the election is deemed never to have been filed. 
  
  ### Non-application
  
  (2.1) Subsection (2) does not apply to 
  (a) a supply by way of sale of real property; 
  (b) a supply of property, or of a service, that is not acquired by the recipient for consumption, use or supply exclusively in the course of commercial activities of the recipient; or 
  (c) a supply that is not a supply of property made in contemplation of a distribution made in the course of a reorganization described in subparagraph 55(3)(b)(i) of the Income Tax Act, if the recipient of the supply is a temporary member.  
  
  ### Cessation
  
  (3) An election under subsection (2) made jointly by a particular member of a qualifying group and another member of the group ceases to have effect on the earliest of 
  (a) the day on which the particular member ceases to be a specified member of the group, 
  (b) the day on which the other member ceases to be a specified member of the group, and 
  (c) the day on which the election is revoked jointly by those members. 
  
  ### Form of election and revocation
  
  (4) An election under subsection (2) made jointly by a particular specified member of a qualifying group and another specified member of the group and a revocation of the election by those specified members shall 
  (a) be made in prescribed form containing prescribed information and specify the day (in this subsection referred to as the “effective day”) on which the election or revocation is to become effective; and 
  (b) be filed with the Minister in prescribed manner on or before 
  (i) the particular day that is the earlier of 
  (A) the day on or before which the particular specified member must file a return under Division V for the reporting period of the particular specified member that includes the effective day, and 
  (B) the day on or before which the other specified member must file a return under Division V for the reporting period of the other specified member that includes the effective day, or 
  (ii) any day after the particular day that the Minister may allow. 
  
  ### Joint and several liability
  
  (5) A particular person and another person are jointly and severally, or solidarily, liable for all obligations under this Part that result upon, or as a consequence of, a failure to account for or pay as and when required under this Part an amount of net tax of the particular person or of the other person if that tax is attributable to a supply made at any time between the particular person and the other person and if 
  (a) an election under subsection (2) made jointly by the particular person and the other person 
  (i) is in effect at that time, or 
  (ii) ceased to be in effect before that time but the particular person and the other person are conducting themselves as if the election were in effect at that time; or 
  (b) the particular person and the other person purport to have jointly made an election under subsection (2) before that time and are conducting themselves as if an election under subsection (2) made jointly by the particular person and the other person were in effect at that time. 
  
  ### Meaning of selected qualifying employer 
  
  157 (1) For the purposes of this section, 
  *selected qualifying employer* has the meaning assigned by subsection 172.1(9).  
  
  ### Election for nil consideration
  
  (2) For the purposes of this Part, if a participating employer of a pension plan elects jointly with a pension entity of the pension plan, every taxable supply made by the participating employer to the pension entity at a time when the election is in effect is deemed to have been made for no consideration. 
  
  ### Election for nil consideration — master pension entity
  
  (2.1) A person that is a participating employer of a pension plan and a master pension entity of the pension plan may jointly make an election in respect of taxable supplies made by the person to the master pension entity if is the total of all percentages, each of which is a master pension factor in respect of a pension plan of which the person is a participating employer for the fiscal year of the master pension entity that includes the day on which the election becomes effective. 
  
  ### Effect of subsection (2.1) election
  
  (2.2) For the purposes of this Part, every taxable supply made by a participating employer to a master pension entity at a time when a joint election made under subsection (2.1) by the participating employer and the master pension entity is in effect is deemed to have been made for no consideration. 
  
  ### Non-application
  
  (3) Subsection (2) does not apply to 
  (a) a supply deemed under section 172.1 to have been made; 
  (b) a supply of property or a service that is not acquired by a pension entity of a pension plan for consumption, use or supply by the pension entity in the course of pension activities (as defined in subsection 172.1(1)) in respect of the pension plan; 
  (c) a supply made by a participating employer of a pension plan to a pension entity of the pension plan of all or part of property or a service if, at the time the participating employer acquires the property or service, the participating employer is a selected qualifying employer of the pension plan; 
  (d) a supply made by a participating employer of a pension plan to a pension entity of the pension plan of property or a service if, at the time the participating employer consumes or uses an employer resource (as defined in subsection 172.1(1)) of the participating employer for the purpose of making the supply, the participating employer is a selected qualifying employer of the pension plan; or 
  (e) a supply made in prescribed circumstances or made by a prescribed person. 
  
  ### Non-application of subsection (2.2)
  
  (3.1) Subsection (2.2) does not apply to 
  (a) a supply deemed under section 172.1 to have been made; 
  (b) a supply of property or a service that is not acquired by a master pension entity of a pension plan for consumption, use or supply by the master pension entity in the course of pension activities (as defined in subsection 172.1(1)) in respect of the pension plan; 
  (c) a supply made by a participating employer of a pension plan to a master pension entity of the pension plan of all or part of property or a service if, at the time the participating employer acquires the property or service, the master pension entity is a master pension entity of one or more pension plans of which the participating employer is a selected qualifying employer; 
  (d) a supply made by a participating employer of a pension plan to a master pension entity of the pension plan of property or a service if, at the time the participating employer consumes or uses an employer resource (as defined in subsection 172.1(1)) of the participating employer for the purpose of making the supply, the master pension entity is a master pension entity of one or more pension plans of which the participating employer is a selected qualifying employer; or  
  (e) a supply made in prescribed circumstances or made by a prescribed person. 
  
  ### Joint revocation
  
  (4) The persons that have jointly made an election under subsection (2) or (2.1) may jointly revoke the election. 
  
  ### Form of election and revocation
  
  (5) An election under subsection (2) or (2.1) and a revocation of an election under subsection (4) must 
  (a) be made in prescribed form containing prescribed information; 
  (b) specify the day on which the election or the revocation is to become effective, which must be the first day of a fiscal year of the participating employer; and 
  (c) be filed by the participating employer with the Minister in prescribed manner on or before the day that is the day on which the election or the revocation is to become effective or any later day that the Minister may allow. 
  
  ### Cessation
  
  (6) An election made jointly under subsection (2) or (2.1) by a person that is a participating employer of a pension plan and by another person that is a pension entity of the pension plan or a master pension entity of the pension plan ceases to have effect on the earliest of 
  (a) the day on which the person ceases to be a participating employer of the pension plan, 
  (b) the day on which the other person ceases to be a pension entity of the pension plan or a master pension entity of the pension plan, as the case may be, 
  (c) the day on which a joint revocation of the election under subsection (4) becomes effective, 
  (d) the day specified in a notice of revocation of the election sent to the person under subsection (9), and 
  (e) in the case of an election under subsection (2.1), the first day of a fiscal year of the other person for which is the total of all percentages, each of which is a master pension factor in respect of a pension plan of which the person is a participating employer for the fiscal year. 
  
  ### Notice of intent
  
  (7) If an election made jointly under subsection (2) or (2.1) by a participating employer of a pension plan and by a pension entity of the pension plan or a master pension entity of the pension plan is in effect at any time in a fiscal year of the participating employer and if the participating employer fails to account for, as and when required under this Part, any tax deemed to have been collected by the participating employer on the last day of the fiscal year under any of subsections 172.1(5) to (6.1) in respect of the pension plan, the Minister may send a notice in writing (in this section referred to as a “notice of intent”) to the participating employer and to the pension entity or the master pension entity, as the case may be, that the Minister proposes to revoke the election as of the first day of the fiscal year. 
  
  ### Representations to Minister
  
  (8) Upon receipt of a notice of intent, a participating employer must establish to the satisfaction of the Minister that the participating employer did not fail to account for, as and when required under this Part, tax deemed to have been collected by the participating employer under any of subsections 172.1(5) to (6.1) in respect of the pension plan. 
  
  ### Notice of revocation
  
  (9) If, after 60 days after the day on which the notice of intent was sent by the Minister to the participating employer, the Minister is not satisfied that the participating employer did not fail to account for, as and when required under this Part, tax deemed to have been collected by the participating employer on the last day of a particular fiscal year under any of subsections 172.1(5) to (6.1) in respect of the pension plan, the Minister may send a notice in writing (in this section referred to as a “notice of revocation”) to the participating employer and to the pension entity or master pension entity with which the participating employer made the election that the election is revoked as of the day specified in the notice of revocation, and that day is not to be earlier than the day specified in the notice of intent and must be the first day of any particular fiscal year. 
  
  ### Revocation — effect
  
  (10) For the purposes of this Part, an election under subsection (2) or (2.1) that has been revoked by the Minister under subsection (9) is deemed never to have been in effect on any day on or after the day specified in the notice of revocation. 
  
  ### Tax refund discounts
  
  158 For the purposes of this Part, where a discounter (within the meaning of the Tax Rebate Discounting Act) pays an amount to a person to acquire from the person a right to a refund of tax (within the meaning of that Act), notwithstanding section 139, the discounter shall be deemed to have made  
  (a) a taxable supply of a service for consideration equal to the lesser of 
  (i) 2/3 of the amount, if any, by which the amount of the refund exceeds the amount paid by the discounter to the person to acquire the right, and 
  (ii) $30; and 
  (b) a separate supply of a financial service for consideration equal to the amount by which the amount of the refund exceeds the total of the amount paid by the discounter to the person to acquire the right and the amount determined under paragraph (a). 
  
  ### Value in Canadian currency
  
  159 Where the consideration for a supply is expressed in a foreign currency, the value of the consideration shall, for the purposes of this Part, be computed on the basis of the value of that foreign currency in Canadian currency on the day the tax is payable, or on such other day as is acceptable to the Minister. 
  
  ### Coin-operated devices
  
  160 Where a supply is made, and the consideration therefor is paid, by means of a coin-operated device, the following rules apply for the purposes of this Part: 
  (a) the recipient shall be deemed to have 
  (i) received the supply, 
  (ii) paid the consideration for the supply, and 
  (iii) paid any tax payable in respect of the supply, on the day the consideration for the supply is inserted into the device; and 
  (b) the supplier shall be deemed to have 
  (i) made the supply, 
  (ii) received the consideration for the supply, and 
  (iii) collected any tax payable in respect of the supply, on the day the consideration for the supply is removed from the device. 
  
  ### Early or late payments
  
  161 For the purposes of this Part, where tangible personal property or services are supplied and the amount of consideration for the supply shown in the invoice in respect of the supply may be reduced if the amount thereof is paid within a time specified in the invoice or an additional amount is charged to the recipient by the supplier if the amount of the consideration is not paid within a reasonable period specified in the invoice, the consideration due shall be deemed to be the amount of consideration shown in the invoice. 
  
  ### Definitions
  
  162 (1) The definitions in this subsection apply in this section.  
  *estimated reserves* of minerals means the estimated quantities of minerals that geological and engineering data demonstrate, with reasonable certainty, to be recoverable under existing economic and operating conditions. (réserves estimées)   
  *farm-out agreement* means an agreement referred to in subsection (4). (accord d’amodiation)   
  *natural resource right* means  
  (a) a right to explore for or exploit a mineral deposit; 
  (b) a right of entry or user relating to a right referred to in paragraph (a); or 
  (c) a right to an amount computed by reference to the production (including profit) from, or to the value of production from, a mineral deposit. ( droit relatif à des ressources)   
  *specified mining or well-site equipment*, in relation to the exploration or development of unproven property under a farm-out agreement, means  
  (a) equipment, installations and structures for use at a mine site in the production of minerals from the mine and not in the milling, smelting, refining or other processing of the minerals after production; and 
  (b) equipment, installations and structures for use at a well site in the production of minerals from the well, including a heater, dehydrator or other well-site facility for the initial treatment of substances produced from the well to prepare such production for transportation but excluding 
  (i) any equipment, installation, structure or facility that serves or is intended to serve a well that has not been drilled in the course of the exploration or development under that agreement, and 
  (ii) any equipment, installation, structure or facility for use in the refining of oil or the processing of natural gas including the separation therefrom of liquid hydrocarbons, sulphur or other joint products or by-products. ( matériel déterminé)   
  *unproven property* means real property for which estimated reserves of minerals have not been attributed. (bien non prouvé)  
  
  ### Natural resources
  
  (2) For the purposes of this Part, the supply of 
  (a) a right to explore for or exploit a mineral deposit, a peat bog or deposit of peat or a forestry, water or fishery resource, 
  (b) a right of entry or user relating to a right referred to in paragraph (a), 
  (c) a right to an amount computed by reference to the production (including profit) from, or to the value of production from, any such deposit, bog or resource, or 
  (d) a right to enter or use land to generate, or evaluate the feasibility of generating, electricity from the sun or wind, shall be deemed not to be a supply and any consideration paid or due, or any fee or royalty charged or reserved, in respect of the right shall be deemed not to be consideration for the right. 
  
  ### Exception
  
  (3) Subsection (2) does not apply to a supply of a right to take or remove forestry products, products that grow in water, fishery products, minerals or peat, a right of entry or user relating thereto or a right referred to in paragraph (2)(d), if the supply is made to 
  (a) a consumer; or 
  (b) a person who is not a registrant and who acquires the right in the course of a business of the person of making supplies of the products, minerals, peat or electricity to consumers. 
  
  ### Exploration and development of mineral deposits
  
  (4) For the purposes of this Part, if, under an agreement in writing between a person (in this subsection referred to as the “farmor”) and another person (in this subsection referred to as the “farmee”), the farmor transfers to the farmee particular natural resource rights, or portions of them, relating to unproven property in consideration or part consideration for the farmee undertaking the exploration of the property for mineral deposits, providing information (or the right to it) gathered from the exploration and, subject to any conditions that may be provided in the agreement, developing the property for the production of minerals, 
  (a) the value, as consideration, of any property or service given by the farmor to the farmee under the agreement is deemed to be nil to the extent that the property or service is given as consideration for any of the following (each of which is referred to in this subsection as the “farmee’s contribution”): 
  (i) the undertaking of that exploration or development, 
  (ii) the provision of that information (or the right to it), and 
  (iii) any transfer under the agreement by the farmee to the farmor of any interest in specified mining or well-site equipment that is used by the farmee exclusively in that exploration or development; 
  (b) the value of the farmee’s contribution as consideration for any property or service given by the farmor to the farmee under the agreement is deemed to be nil; and 
  (c) if part of the consideration given by the farmor for the farmee’s contribution is a service or property (each of which is referred to in this paragraph as the “farmor’s additional contribution”) that is not a natural resource right relating to unproven property, 
  (i) the farmee is deemed to have made, at the place at which the unproven property is situated, a taxable supply of a service to the farmor separate from any supply by the farmee under the agreement and that service is deemed to be consideration for the farmor’s additional contribution, 
  (ii) the value of that service and the value of the farmor’s additional contribution as consideration for the supply of that service are each deemed to be equal to the fair market value of the farmor’s additional contribution determined at the time (in this paragraph referred to as the “time of transfer”) that 
  (A) if the farmor’s additional contribution is a service, performance of the service commences, and 
  (B) in any other case, ownership of the farmor’s additional contribution is transferred to the farmee, 
  (iii) all of the consideration for the farmor’s additional contribution and the consideration for the service deemed to have been supplied by the farmee are deemed to become due at the time of transfer, and 
  (iv) if, in addition to the farmee’s contribution, the farmee supplies to the farmor other property or services (other than the service deemed under subparagraph (i) to have been supplied) for which part of the consideration is the farmor’s additional contribution, the value of the consideration for the supply of the other property or services is deemed to be equal to the amount, if any, by which the value of that consideration, determined without reference to this subparagraph, exceeds the fair market value of the farmor’s additional contribution. 
  
  ### Rolling stock penalties and demurrage
  
  162.1 For the purposes of this Part, an amount that is paid 
  (a) as or on account of demurrage, or 
  (b) by one railway corporation to another railway corporation as or on account of a penalty for failure to return rolling stock within a stipulated time, shall be deemed not to be consideration for a supply. 
  
  ### Consideration for portions of tour package
  
  163 (1) For the purposes of determining tax payable in respect of portions of a tour package, the consideration for a supply of the provincially taxable portion of the tour package or the non-provincially taxable portion of the tour package, as the case may be, (in this subsection referred to as the “relevant portion”) is deemed to be 
  (a) where the supply is made by the first supplier of the tour package, the amount determined by the formula is the taxable percentage in respect of the relevant portion at the time the supply is made, and is the total consideration for the entire tour package; and 
  (b) where the supply is made by any other person, the amount determined by the formula is the percentage that the consideration for the supply to the person of the relevant portion is of the total consideration paid or payable by the person for the entire tour package, and is the total consideration paid or payable to the person for the entire tour package. 
  
  ### Taxable and non-taxable portions
  
  (2) For the purpose of determining tax payable in respect of a tour package and for the purposes of Part VI of Schedule VI, the provision of all that part of the taxable portion of a tour package that is not included in the provincially taxable portions of the tour package and the provision of the part of the tour package that is not included in the taxable portion of the tour package are each deemed to be a supply separate from, and not incidental to, the provision of the remaining parts of the tour package. 
  
  ### Provincially taxable portion
  
  (2.1) For the purpose of determining tax payable in respect of a tour package and for the purposes of Part VI of Schedule VI, the provision of the part of the taxable portion of a tour package that is the provincially taxable portion of the tour package in respect of a participating province is deemed to be a supply made in the participating province that is separate from, and not incidental to, the provision of the other parts, if any, of the tour package and those other parts are deemed to be supplied outside the participating province. 
  
  ### Transition
  
  (2.2) Where a supply of a provincially taxable portion of a tour package in respect of a participating province is made by a supplier who acquired the tour package from another person and was not required to pay tax under subsection 165(2) in respect of the tour package, the supplier is deemed to be the first supplier of the tour package for the purposes of determining the base percentage, initial taxable percentage and taxable percentage, in respect of the provincially taxable portion of the tour package and the non-provincially taxable portion of the tour package. 
  
  ### Definitions
  
  (3) In this section and in Part VI of Schedule VI,  
  *base fraction* [Repealed, 1997, c. 10, s. 159]   
  *base percentage*, at any time, in respect of the provincially taxable portion of a tour package or the non-provincially taxable portion of a tour package, as the case may be, (in this definition referred to as the 
  *relevant portion*) means the percentage determined by the formula  is the part of the amount (in this definition referred to as the 
  *base price*) that would be charged by the first supplier of the tour package for a supply at that time of the tour package that is, at that time, reasonably attributable to the relevant portion, and  is the base price; ( pourcentage de référence)   
  *first supplier* of a tour package means the person who first supplies the package in Canada; (premier fournisseur)   
  *initial taxable percentage* in respect of the provincially taxable portion of a tour package or the non-provincially taxable portion of a tour package, as the case may be, (in this definition referred to as the 
  *relevant portion*) means the percentage determined, at the time the first supplier of the tour package first determines the amount (in this definition referred to as the 
  *initial price*) to be charged by that supplier for a supply of the tour package, by the formula  is the part of the initial price that is, at that time, reasonably attributable to the relevant portion, and is the initial price; ( pourcentage taxable initial)   
  *non-provincially taxable portion* of a tour package means all property and services included in the taxable portion of the tour package that are not included in the provincially taxable portions of the tour package; (partie non taxable au provincial)   
  *provincially taxable portion* of a tour package, in respect of a participating province, means all property and services that are included in the tour package and the supplies of which, if made otherwise than as part of the tour package, would be supplies made in the participating province in respect of which tax under subsection 165(2) would be payable; (partie taxable au provincial)   
  *taxable percentage*, at a particular time, in respect of the provincially taxable portion of a tour package or the non-provincially taxable portion of a tour package, as the case may be, (in this definition referred to as the 
  *relevant portion*) means  
  (a) where the difference between the base percentage at that time in respect of the relevant portion and either the initial taxable percentage in respect of the relevant portion or the base percentage at an earlier time in respect of the relevant portion is more than 10 percentage points, the base percentage at the particular time in respect of the relevant portion, and 
  (b) in any other case, the initial taxable percentage in respect of the relevant portion; ( pourcentage taxable)   
  *taxable portion* of a tour package means all property and services included in the tour package and in respect of which tax under Division II would be payable if the property or service were supplied otherwise than as part of a tour package; (partie taxable)   
  *tour package* means a combination of two or more services, or of property and services, that includes transportation services, accommodation, a right to use a campground or trailer park, or guide or interpreter services, where the property and services are supplied together for an all-inclusive price. (voyage organisé)  
  
  ### Donation — value of consideration
  
  164 For the purposes of this Part, if a charity or a public institution makes a taxable supply of property or service to another person, if the value of the property or service is included in determining the amount of the advantage in respect of a gift by the other person to the charity or public institution under subsection 248(32) of the Income Tax Act and if a receipt referred to in subsection 110.1(2) or 118.1(2) of that Act may be issued, or could be issued if the other person were an individual, in respect of part of the consideration for the supply, then the value of the consideration for the supply is deemed to be equal to the fair market value of the property or service at the time the supply is made.  
  
  ### Meaning of 
  *feed* 
  
  164.1 (1) For the purposes of this section, 
  *feed* means  
  (a) grain, seed or fodder that is described in section 2 of Part IV of Schedule VI and used as feed for farm livestock that is ordinarily raised or kept to produce, or to be used as, food for human consumption or to produce wool; 
  (b) feed that is a complete feed, supplement, macro-premix, micro-premix or mineral feed (other than a trace mineral salt feed), the supply of which in bulk quantities of at least 20 kg would be a zero-rated supply included in Part IV of Schedule VI; and 
  (c) by-products of the food processing industry and plant or animal products, the supply of which in bulk quantities of at least 20 kg would be a zero-rated supply included in Part IV of Schedule VI. 
  
  ### Supplies by a feedlot
  
  (2) For the purposes of this Part, where, in the course of operating a feedlot that is a farming business within the meaning of the Income Tax Act, a person makes a supply of a service and the consideration for the supply (in this subsection referred to as the “total charge”) includes a particular amount that is identified in the invoice or agreement in writing for the supply as being attributable to feed,  
  (a) the provision of the feed shall be deemed to be a supply separate from the supply of the service and not to be incidental to the provision of any other property or service; 
  (b) the portion, not exceeding 90%, of the total charge that is reasonably attributable to the feed and is included in the particular amount shall be deemed to be the consideration for the supply of the feed; and 
  (c) the difference between the total charge and the consideration for the supply of the feed shall be deemed to be the consideration for the supply of the service. 
  
  ### Payments by unions or associations
  
  164.2 For the purposes of this Part, where 
  (a) an individual, because of membership in a trade union or association referred to in paragraph 189(a), participates in activities of the union or association and, as a consequence, is unable to perform duties, under a contract of employment, for the individual’s employer during a period during which the individual would, were it not for the individual’s participation in those activities, be obligated to provide such services, and 
  (b) the union or association pays an amount to the employer as compensation for expenses incurred by the employer as a consequence of the individual’s participation in those activities or for remuneration or benefits given by the employer to the individual in respect of that period, the amount shall be deemed not to be consideration for a supply. 
  
  # DIVISION II 
  
  ## Goods and Services Tax 
  
  # SUBDIVISION A 
  
  ## Imposition of Tax 
  
  ### Imposition of goods and services tax
  
  165 (1) Subject to this Part, every recipient of a taxable supply made in Canada shall pay to Her Majesty in right of Canada tax in respect of the supply calculated at the rate of 5% on the value of the consideration for the supply. 
  
  ### Tax in participating province
  
  (2) Subject to this Part, every recipient of a taxable supply made in a participating province shall pay to Her Majesty in right of Canada, in addition to the tax imposed by subsection (1), tax in respect of the supply calculated at the tax rate for that province on the value of the consideration for the supply. 
  
  ### Zero-rated supply
  
  (3) The tax rate in respect of a taxable supply that is a zero-rated supply is 0%. 
  
  ### Application in offshore areas
  
  (4) Subsection (2) does not apply to a supply of property or a service made in the Nova Scotia offshore area or the Newfoundland offshore area unless the supplier makes the supply in the course of an offshore activity or the recipient of the supply acquires the property or service for consumption, use or supply in the course of an offshore activity. 
  
  ### Pay telephones
  
  165.1 (1) Where the consideration for a supply of a telecommunication service is paid by depositing coins in a coin-operated telephone, the tax payable in respect of the supply is equal to 
  (a) zero where the amount deposited for the supply does not exceed $0.25; and 
  (b) in any other case, the total of the amounts computed in accordance with subsections 165(1) and (2), except that where that total is equal to a multiple of $0.05 plus a fraction of $0.05, the fraction 
  (i) if less than $0.025, may be disregarded for the purposes of this Part, and 
  (ii) if equal to or greater than $0.025, shall be deemed, for the purposes of this Part, to be an amount equal to $0.05. 
  
  ### Coin-operated devices
  
  (2) Where the consideration for a supply of tangible personal property or a service is paid by depositing a single coin in a mechanical coin-operated device that is designed to accept only a single coin of twenty-five cents or less as the total consideration for the supply and the tangible personal property is dispensed from the device or the service is rendered through the operation of the device, the tax payable in respect of the supply is equal to zero. 
  
  ### Supply of right to use device
  
  (3) For the purpose of subsection (2), a supply of a right to use a device described in that subsection is deemed to be a supply of a service rendered through the operation of the device. 
  
  ### Calculation of tax on several supplies
  
  165.2 (1) Where two or more taxable supplies are included in an invoice, receipt or agreement and tax under section 165 is imposed in respect of each of those supplies at the same rate or rates, the tax payable in respect of those supplies, calculated on the consideration for those supplies that is included in the invoice, receipt or agreement, may be calculated on the total of that consideration. 
  
  ### Rounding of tax
  
  (2) Where tax that is at any time payable under this Division in respect of one or more supplies included in an invoice, receipt or agreement is an amount that includes a fraction of a cent, the fraction 
  (a) if less than half of a cent, may be disregarded for the purposes of this Part; and 
  (b) if equal to or greater than half of a cent, shall be deemed, for the purposes of this Part, to be an amount equal to one cent. 
  
  ### Supply by small supplier not a registrant
  
  166 If a person makes a taxable supply and the consideration or a part of it for the supply becomes due, or is paid before it becomes due, at a time when the person is a small supplier who is not a registrant, that consideration or part, as the case may be, shall not be included in calculating the tax payable in respect of the supply except if the supply is 
  (a) a supply by way of sale of real property; 
  (b) a supply by way of sale of personal property by a municipality that is capital property of the municipality; or 
  (c) a supply by way of sale of designated municipal property of a person designated to be a municipality for the purposes of section 259 that is capital property of the person. 
  
  ### Supply of assets of business
  
  167 (1) Where a supplier makes a supply of a business or part of a business that was established or carried on by the supplier or that was established or carried on by another person and acquired by the supplier, and, under the agreement for the supply, the recipient is acquiring ownership, possession or use of all or substantially all of the property that can reasonably be regarded as being necessary for the recipient to be capable of carrying on the business or part as a business, 
  (a) for the purposes of this Part, the supplier shall be deemed to have made a separate supply of each property and service that is supplied under the agreement for consideration equal to that part of the consideration for the supply of the business or part that can reasonably be attributed to that property or service; and 
  (b) except where the supplier is a registrant and the recipient is not a registrant, the supplier and the recipient may make a joint election in prescribed form containing prescribed information to have subsection (1.1) apply to those supplies. 
  
  ### Effect of election
  
  (1.1) Where a supplier and a recipient make a joint election under subsection (1) in respect of a supply of a business or part of a business and the recipient, if a registrant, files the election with the Minister not later than the day on or before which the return under Division V is required to be filed for the recipient’s first reporting period in which tax would, but for this subsection, have become payable in respect of the supply of any property or service made under the agreement for the supply of the business or part, or on such later day as the Minister may determine on application of the recipient, 
  (a) no tax is payable in respect of a supply of any property or service made under the agreement other than 
  (i) a taxable supply of a service that is to be rendered by the supplier, 
  (ii) a taxable supply of property by way of lease, licence or similar arrangement, and 
  (iii) where the recipient is not a registrant, a taxable supply by way of sale of real property; and 
  (b) for the purposes of this Part, 
  (i) where, but for this subsection, tax would have been payable by the recipient in respect of a supply made under the agreement of property that was capital property of the supplier and that is being acquired by the recipient for use as capital property of the recipient, the recipient shall be deemed to have so acquired the property for use exclusively in the course of commercial activities of the recipient, and 
  (ii) where, notwithstanding this subsection, tax would not have been payable by the recipient in respect of a supply made under the agreement of property that was capital property of the supplier and that is being acquired by the recipient for use as capital property of the recipient, the recipient shall be deemed to have so acquired the property for use exclusively in activities of the recipient that are not commercial activities. 
  
  ### Supply of business assets of deceased
  
  (2) Where 
  (a) immediately before death, an individual held property for consumption, use or supply in the course of a business carried on immediately before the individual’s death, 
  (b) the estate of the deceased individual makes a supply, in accordance with the individual’s will or the laws relating to the succession of property on death, of the property to another individual who is a beneficiary of the estate and a registrant, 
  (c) the property is received for consumption, use or supply in the course of commercial activities of the other individual, and 
  (d) the estate and the other individual jointly elect under this subsection, no tax is payable in respect of the supply and the other individual shall, for the purposes of this Part, be deemed to have acquired the property for use exclusively in commercial activities of the individual. 
  
  ### Goodwill
  
  167.1 For the purposes of this Part, where a supplier makes a supply of a business or part of a business that was established or carried on by the supplier or that was established or carried on by another person and acquired by the supplier, the recipient is acquiring ownership, possession or use of all or substantially all of the property that can reasonably be regarded as being necessary for the recipient to be capable of carrying on the business or part as a business, and part of the consideration for the supply can reasonably be attributed to goodwill of the business or part, that part of the consideration shall not be included in calculating the tax payable in respect of the supply. 
  
  ### Definitions
  
  167.11 (1) The following definitions apply in this section.  
  *authorized foreign bank* has the meaning assigned by section 2 of the Bank Act. (banque étrangère autorisée)   
  *foreign bank branch* means a branch as defined in paragraph (b) of the definition 
  *branch* in section 2 of the Bank Act. (succursale de banque étrangère)   
  *qualifying supply* means a supply of property or a service that is made in Canada under an agreement for the supply (other than an agreement between a supplier that is a registrant and a recipient that is not a registrant at the time the agreement is entered into) and  
  (a) that is made by a corporation resident in Canada related to the recipient; 
  (b) that is made after June 27, 1999, and before 
  (i) if the Superintendent makes an order under subsection 534(1) of the Bank Act in respect of the recipient after the particular day on which the Act enacting this section receives royal assent but before the day that is one year after the particular day, the day that is one year after the day on which the Superintendent makes the order, and  
  (ii) in any other case, the day that is one year after the particular day referred to in subparagraph (i); and 
  (c) that is received by a recipient that 
  (i) is a non-resident person, 
  (ii) is, or has filed an application with the Superintendent for an order under subsection 524(1) of the Bank Act to become, an authorized foreign bank, and  
  (iii) acquired the property or service for consumption, use or supply by the recipient for the purpose of the establishment and commencement of business in Canada by the recipient as an authorized foreign bank at a foreign bank branch of the authorized foreign bank. ( fourniture admissible)  
  
  ### Supply of assets
  
  (2) For the purposes of this Part, if a supplier and a recipient of a qualifying supply make a joint election in accordance with subsection (7) in respect of the qualifying supply, 
  (a) the supplier is deemed to have made, and the recipient is deemed to have received, a separate supply of each property and service that is supplied under the agreement for the qualifying supply for consideration equal to that part of the consideration for the qualifying supply that can reasonably be attributed to that property or service; 
  (b) any part of the consideration for the qualifying supply attributed to goodwill is deemed to be attributed to a taxable supply of intangible personal property unless section 167.1 applies to the qualifying supply; and 
  (c) subsections (3) to (6) apply to the supply of each property and service that is supplied under the agreement for the qualifying supply. 
  
  ### Effect of election
  
  (3) For the purposes of this Part, if a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply made at any time, 
  (a) no tax is payable in respect of a supply of any property or service made under the agreement for the qualifying supply other than 
  (i) a taxable supply of a service that is to be rendered by the supplier, 
  (ii) a taxable supply of a service unless paragraph 167(1)(a) applies to the qualifying supply, 
  (iii) a taxable supply of property by way of lease, licence or similar arrangement, 
  (iv) if the recipient is not a registrant, a taxable supply by way of sale of real property, 
  (v) a taxable supply of property or a service, if the property or service was previously supplied under an agreement for a qualifying supply and, by reason of this subsection, no tax was payable in respect of that previous supply of property or service, and 
  (vi) a taxable supply of intangible personal property (other than capital property) if the percentage determined by the following formula is greater than 10%: is the extent (expressed as a percentage of the total use of the property by the supplier) to which the supplier used the property in commercial activities immediately before that time, and is the extent (expressed as a percentage of the total use of the property by the recipient) to which the recipient used the property in commercial activities immediately after that time; 
  (b) if, in the absence of this subsection, tax would have been payable by the recipient in respect of a supply of property made under the agreement for the qualifying supply, the property was capital property of the supplier and the property is being acquired by the recipient for use as capital property of the recipient, the recipient is deemed to have so acquired the property for use exclusively in the course of commercial activities of the recipient; 
  (c) if, despite this subsection, tax would not have been payable by the recipient in respect of a supply of property made under the agreement for the qualifying supply, the property was capital property of the supplier and the property is being acquired by the recipient for use as capital property of the recipient, the recipient is deemed to have so acquired the property for use exclusively in activities of the recipient that are not commercial activities; and 
  (d) if the recipient acquires under the agreement for the qualifying supply property of the supplier that was used by the supplier immediately before that time otherwise than as capital property of the supplier and, in the absence of this paragraph, tax would have been payable by the recipient in respect of the supply of the property, the recipient is deemed to have acquired the property for consumption, use or supply in the course of commercial activities and otherwise than as capital property of the recipient. 
  
  ### Basic tax content
  
  (4) For the purposes of this Part, if a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply and, under the agreement for the qualifying supply, the supplier makes a supply of property that is, immediately before the time the qualifying supply is made, capital property of the supplier and, by reason of subsection (3), no tax is payable in respect of the supply of the property, the basic tax content of the property of the recipient at any time shall be determined by applying the following rules: 
  (a) if the last acquisition of the property by the recipient is the acquisition by the recipient at the time the qualifying supply is made, any reference in paragraphs (a) and (b) of the definition 
  *basic tax content* in subsection 123(1) to the last acquisition or importation of the property by the person shall be read as a reference to the last acquisition or importation of the property by the supplier and not the acquisition by the recipient at the time the qualifying supply is made;  
  (b) if the last supply to the recipient of the property is the supply to the recipient at the time the qualifying supply is made, the reference in paragraph (a) of the definition 
  *basic tax content* in subsection 123(1) to the last supply of the property to the person shall be read as a reference to the last supply of the property to the supplier and not the supply to the recipient at the time the qualifying supply is made; and  
  (c) if, at any particular time on or after the last acquisition or importation of the property by the supplier and before the time the qualifying supply is made, the property is acquired, imported or brought into a participating province or an improvement to the property is acquired, imported or brought into a participating province, any reference in paragraphs (a) and (b) of the definition 
  *basic tax content* in subsection 123(1) to  
  (i) any acquisition, importation or bringing into a participating province of the property at that particular time or any acquisition, importation or bringing into a participating province of an improvement to the property at that particular time (in this paragraph referred to as the “actions”) by the person shall be read as a reference to actions by the supplier and not actions by the recipient, 
  (ii) any tax that was payable, that would have been or would have become payable, that became payable or that had been payable by the person in respect of those actions at that particular time shall be read as a reference to tax that was payable, that would have been or would have become payable, that became payable or that had been payable by the supplier and not by the recipient, 
  (iii) the person in respect of those actions at that particular time, or in respect of a particular status of the person at that particular time, shall be read as a reference to the supplier and not to the recipient, 
  (iv) any tax that the person was exempt from paying in respect of those actions at that particular time shall be read as a reference to tax that the supplier, and not the recipient, was exempt from paying, 
  (v) the person’s percentage for a participating province determined for the purposes of subsection 225.2(2) for the person’s taxation year that includes the time that an amount of tax became payable, or would have become payable by the person while the person was a selected listed financial institution, shall be read as a reference to the supplier’s percentage for a participating province determined for the purposes of subsection 225.2(2) for the supplier’s taxation year that includes the time that an amount of tax became payable, or would have become payable while the supplier was a selected listed financial institution, and 
  (vi) all amounts that the person was, or would have been, entitled to recover by way of rebate, refund, remission or otherwise in respect of those actions at that particular time shall be read as a reference to all amounts that the supplier, and not the recipient, was, or would have been, entitled to recover by way of rebate, refund, remission or otherwise in respect of those actions. 
  
  ### Adjustment to net tax
  
  (5) For the purposes of this Part, if a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply made before November 17, 2005 under an agreement for the qualifying supply and tax is paid by the recipient in respect of property or a service supplied under the agreement for the qualifying supply despite no tax being payable in respect of that supply as a result of subsection (3), the tax is deemed, except for the purposes of subsection (4) and despite subsection (3), to have been payable by the recipient in respect of the supply of the property or service and, in determining the net tax for the particular reporting period of the recipient in which the election is filed with the Minister, the recipient may deduct in determining the net tax of the recipient for the particular reporting period the total of all amounts each of which is an amount determined by the formula is the amount of tax paid, despite no tax being payable as a result of subsection (3), by the recipient in respect of the supply of the property or service made under the agreement for the qualifying supply; and is the total of 
  (a) all amounts each of which is an input tax credit that the recipient was entitled to claim in respect of the property or service supplied under the agreement for the qualifying supply, 
  (b) all amounts each of which is an amount (other than an amount determined under this subsection) that may be deducted by the recipient under this Part in determining the net tax of the recipient for a reporting period in respect of the property or service supplied under the agreement for the qualifying supply, and 
  (c) all amounts (other than amounts referred to in paragraphs (a) and (b)) in respect of the tax paid that may be otherwise recovered by way of rebate, refund, remission or otherwise by the recipient in respect of the property or service supplied under the agreement for the qualifying supply. 
  
  ### Limitation period where election
  
  (6) If a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply, section 298 applies to any assessment, reassessment or additional assessment of an amount payable by the recipient in respect of a supply of property or a service made under the agreement for the qualifying supply, but the Minister has until the day that is four years after the later of the day on which the election under subsection (2) is filed with the Minister and the day on which the qualifying supply is made, to make any assessment, reassessment or additional assessment solely for the purpose of taking into account any tax, net tax or any other amount payable by the recipient or remittable by the supplier in respect of a supply of property or a service made under the agreement for the qualifying supply. 
  
  ### Validity of election
  
  (7) A joint election referred to in subsection (2) made by a supplier and a recipient in respect of a qualifying supply is valid only if 
  (a) the recipient files the election with the Minister in prescribed form containing prescribed information not later than the particular day that is the latest of 
  (i) if the recipient is 
  (A) a registrant at the time the qualifying supply is made, the day on or before which the return under Division V is required to be filed for the recipient’s reporting period in which tax would, in the absence of this section, have become payable in respect of the supply of property or service made under the agreement for the qualifying supply, or 
  (B) not a registrant at the time the qualifying supply is made, the day that is one month after the end of the recipient’s reporting period in which tax would, in the absence of this section, have become payable in respect of the supply of property or service made under the agreement for the qualifying supply, 
  (ii) the day that is one year after the day on which the Act enacting this section receives royal assent, and 
  (iii) the day that the Minister may determine on application of the recipient; 
  (b) the qualifying supply is made on or before the day that is one year after the day on which the recipient received for the first time a qualifying supply in respect of which an election under subsection (2) has been made; and 
  (c) on or before the day on which the election referred to in subsection (2) is filed in respect of the qualifying supply, the recipient has not made an election under subsection 167(1.1) in respect of the qualifying supply. 
  
  ### Supplies to non-resident persons of admissions to conventions
  
  167.2 (1) If a sponsor of a convention makes a taxable supply of an admission to the convention to a non-resident person, the following shall not be included in calculating the tax payable in respect of the supply: 
  (a) that portion of the consideration for the admission that is reasonably attributable to the provision of the convention facility or related convention supplies other than property or services that are food or beverages or are supplied under a contract for catering; and 
  (b) 50% of that portion of the consideration for the admission that is reasonably attributable to the provision of related convention supplies that are food or beverages or are supplied under a contract for catering. 
  
  ### Supplies to non-resident exhibitors
  
  (2) Where a sponsor of a convention makes a taxable supply by way of lease, licence or similar arrangement to a non-resident person of real property that is acquired by the person exclusively for use as a site for the promotion, at the convention, of property or services supplied by, or of a business of, the person, no tax is payable in respect of that supply to the person or in respect of any supply by the sponsor to the person of property or services that are acquired by the person for consumption or use as related convention supplies in respect of the convention. 
  
  ## When Tax Payable 
  
  ### General rule
  
  168 (1) Tax under this Division in respect of a taxable supply is payable by the recipient on the earlier of the day the consideration for the supply is paid and the day the consideration for the supply becomes due. 
  
  ### Partial consideration
  
  (2) Notwithstanding subsection (1), where consideration for a taxable supply is paid or becomes due on more than one day, 
  (a) tax under this Division in respect of the supply is payable on each day that is the earlier of the day a part of the consideration is paid and the day that part becomes due; and 
  (b) the tax that is payable on each such day shall be calculated on the value of the part of the consideration that is paid or becomes due, as the case may be, on that day. 
  
  ### Supply completed
  
  (3) Notwithstanding subsections (1) and (2), where all or any part of the consideration for a taxable supply has not been paid or become due on or before the last day of the calendar month immediately following the first calendar month in which 
  (a) where the supply is of tangible personal property by way of sale, other than a supply described in paragraph (b) or (c), the ownership or possession of the property is transferred to the recipient, 
  (b) where the supply is of tangible personal property by way of sale under which the supplier delivers the property to the recipient on approval, consignment, sale-or-return basis or other similar terms, the recipient acquires ownership of the property or makes a supply of it to any person, other than the supplier, or 
  (c) where the supply is under an agreement in writing for the construction, renovation or alteration of, or repair to, 
  (i) any real property, or 
  (ii) any ship or other marine vessel, and it may reasonably be expected that the construction, renovation, alteration or repair will require more than three months to complete, the construction, renovation, alteration or repair is substantially completed, tax under this Division in respect of the supply, calculated on the value of that consideration or part, as the case may be, is payable on that day. 
  
  ### Continuous supplies
  
  (4) Subsection (3) does not apply in respect of a supply of water, electricity, natural gas, steam or any other property where the property is delivered or made available to the recipient on a continuous basis by means of a wire, pipeline or other conduit and the supplier invoices the recipient in respect of that supply on a regular or periodic basis. 
  
  ### Sale of real property
  
  (5) Notwithstanding subsections (1) and (2), tax under this Division in respect of a taxable supply of real property by way of sale is payable 
  (a) in the case of a supply of a residential condominium unit where possession of the unit is transferred, after 1990 and before the condominium complex in which the unit is situated is registered as a condominium, to the recipient under the agreement for the supply, on the earlier of the day ownership of the unit is transferred to the recipient and the day that is sixty days after the day the condominium complex is registered as a condominium; and 
  (b) in any other case, on the earlier of the day ownership of the property is transferred to the recipient and the day possession of the property is transferred to the recipient under the agreement for the supply. 
  
  ### Value not ascertainable
  
  (6) Where under subsection (3) or (5) tax is payable on a day and the value of the consideration, or any part thereof, for the taxable supply is not ascertainable on that day, 
  (a) tax calculated on the value of the consideration or part, as the case may be, that is ascertainable on that day is payable on that day; and 
  (b) tax calculated on the value of the consideration or part, as the case may be, that is not ascertainable on that day is payable on the day the value becomes ascertainable. 
  
  ### Retention of consideration
  
  (7) Notwithstanding subsections (1), (2), (3), (5) and (6), where the recipient of a taxable supply retains, pursuant to 
  (a) an Act of Parliament or of the legislature of a province, or 
  (b) an agreement in writing for the construction, renovation or alteration of, or repair to, any real property or any ship or other marine vessel, a part of the consideration for the supply pending full and satisfactory performance of the supply, or any part thereof, tax under this Division, calculated on the value of that part of the consideration, is payable on the earlier of the day that part is paid and the day it becomes payable. 
  
  ### Combined supply
  
  (8) For the purposes of this section, where a supply of any combination of service, personal property or real property (each of which is in this subsection referred to as an “element”) is made and the consideration for each element is not separately identified, 
  (a) where the value of a particular element can reasonably be regarded as exceeding the value of each of the other elements, the supply of all of the elements shall be deemed to be a supply only of the particular element; and 
  (b) in any other case, the supply of all of the elements shall be deemed 
  (i) where one of the elements is real property, to be a supply only of real property, and 
  (ii) in any other case, to be a supply only of a service. 
  
  ### Deposits
  
  (9) For the purposes of this section, a deposit (other than a deposit in respect of a covering or container in respect of which section 137 applies), whether refundable or not, given in respect of a supply shall not be considered as consideration paid for the supply unless and until the supplier applies the deposit as consideration for the supply. 
  
  # SUBDIVISION B 
  
  ## Input Tax Credits 
  
  ### General rule for credits
  
  169 (1) Subject to this Part, where a person acquires or imports property or a service or brings it into a participating province and, during a reporting period of the person during which the person is a registrant, tax in respect of the supply, importation or bringing in becomes payable by the person or is paid by the person without having become payable, the amount determined by the following formula is an input tax credit of the person in respect of the property or service for the period: is the tax in respect of the supply, importation or bringing in, as the case may be, that becomes payable by the person during the reporting period or that is paid by the person during the period without having become payable; and is 
  (a) where the tax is deemed under subsection 202(4) to have been paid in respect of the property on the last day of a taxation year of the person, the extent (expressed as a percentage of the total use of the property in the course of commercial activities and businesses of the person during that taxation year) to which the person used the property in the course of commercial activities of the person during that taxation year, 
  (b) where the property or service is acquired, imported or brought into the province, as the case may be, by the person for use in improving capital property of the person, the extent (expressed as a percentage) to which the person was using the capital property in the course of commercial activities of the person immediately after the capital property or a portion thereof was last acquired or imported by the person, and 
  (c) in any other case, the extent (expressed as a percentage) to which the person acquired or imported the property or service or brought it into the participating province, as the case may be, for consumption, use or supply in the course of commercial activities of the person. 
  
  ### Determining credit for improvement
  
  (1.1) Where a person acquires or imports property or a service or brings it into a participating province partly for use in improving capital property of the person and partly for another purpose, for the purpose of determining an input tax credit of the person in respect of the property or service, 
  (a) notwithstanding section 138, that part of the property or service that is for use in improving the capital property and the remaining part of the property or service are each deemed to be a separate property or service that does not form part of the other; 
  (b) the tax payable in respect of the supply, importation or bringing in, as the case may be, of that part of the property or service that is for use in improving the capital property is deemed to be equal to the amount determined by the formula is the tax payable (in this section referred to as the “total tax payable”) by the person in respect of the supply, importation or bringing in, as the case may be, of the property or service, determined without reference to this section, and is the extent (expressed as a percentage) to which the total consideration paid or payable by the person for the supply in Canada of the property or service or the value of the imported goods or the property brought in is or would be, if the person were a taxpayer under the Income Tax Act, included in determining the adjusted cost base to the person of the capital property for the purposes of that Act; and  
  (c) the tax payable in respect of that part of the property or service that is not for use in improving the capital property is deemed to be equal to the difference between the total tax payable and the amount determined under paragraph (b). 
  (1.2) and (1.3)  [Repealed, 1997, c. 10, s. 161]  
  
  ### Credit for goods imported to provide commercial service
  
  (2) Subject to this Part, where a registrant imports goods of a non-resident person who is not registered under Subdivision D of Division V for the purpose of making a taxable supply to the non-resident person of a commercial service in respect of the goods and, during a reporting period of the registrant, tax in respect of the importation becomes payable by the registrant or is paid by the registrant without having become payable, the input tax credit of the registrant in respect of the goods for the reporting period is an amount equal to that tax. 
  
  ### Restricted credit for selected listed financial institutions
  
  (3) No amount shall be included in determining an input tax credit of a person in respect of tax that becomes payable by the person under subsection 165(2) or section 212.1 while the person is a selected listed financial institution unless 
  (a) the input tax credit is in respect of 
  (i) tax that the person is deemed to have paid under subsection 171(1), 171.1(2), 206(2) or (3) or 208(2) or (3), or 
  (ii) an amount of tax that is prescribed for the purposes of paragraph (a) of the description of F in subsection 225.2(2); 
  (b) the person is permitted to claim the input tax credit under subsection 193(1) or (2); or 
  (c) the amount is a prescribed amount. 
  
  ### Required documentation
  
  (4) A registrant may not claim an input tax credit for a reporting period unless, before filing the return in which the credit is claimed, 
  (a) the registrant has obtained sufficient evidence in such form containing such information as will enable the amount of the input tax credit to be determined, including any such information as may be prescribed; and 
  (b) where the credit is in respect of property or a service supplied to the registrant in circumstances in which the registrant is required to report the tax payable in respect of the supply in a return filed with the Minister under this Part, the registrant has so reported the tax in a return filed under this Part. 
  
  ### Exemption
  
  (5) Where the Minister is satisfied that there are or will be sufficient records available to establish the particulars of any supply or importation or of any supply or importation of a specified class and the tax in respect of the supply or importation paid or payable under this Part, the Minister may 
  (a) exempt a specified registrant, a specified class of registrants or registrants generally from any of the requirements of subsection (4) in respect of that supply or importation or a supply or importation of that class; and 
  (b) specify terms and conditions of the exemption. 
  
  ### Restriction
  
  170 (1) In determining an input tax credit of a registrant, no amount shall be included in respect of the tax payable by the registrant in respect of 
  (a) a supply of a membership, or a right to acquire a membership, in a club the main purpose of which is to provide dining, recreational or sporting facilities, except where the registrant acquires the membership or right, as the case may be, exclusively for supply in the ordinary course of a business of the registrant of supplying such memberships or rights; 
  (a.1) a supply, importation or bringing into a participating province of property or a service that is acquired, imported or brought in by the registrant for consumption or use by the registrant (or, where the registrant is a partnership, an individual who is a member of the partnership) in relation to any part (in this paragraph referred to as the “work space”) of a self-contained domestic establishment in which the registrant or the individual, as the case may be, resides unless the work space 
  (i) is the principal place of business of the registrant, or 
  (ii) is used exclusively for the purpose of earning income from a business and is used on a regular and continuous basis for meeting clients, customers or patients of the registrant in respect of the business; 
  (b) a supply, importation or bringing into a participating province of property or a service that is acquired, imported or brought in by the registrant at any time in or before a reporting period of the registrant exclusively for the personal consumption, use or enjoyment (in this paragraph referred to as the “benefit”) in that period of a particular individual who was, is or agrees to become an officer or employee of the registrant, or of another individual related to the particular individual, except where 
  (i) the registrant makes a taxable supply of the property or service to the particular individual or the other individual for consideration that becomes due in that period and that is equal to the fair market value of the property or service at the time the consideration becomes due, or 
  (ii) if no amount were payable by the particular individual for the benefit, no amount would be included under section 6 of the Income Tax Act in respect of the benefit in computing the income of the particular individual for the purposes of that Act; and  
  (c) a supply made in or before a reporting period of the registrant of property, by way of lease, licence or similar arrangement, primarily for the personal consumption, use or enjoyment in that period of 
  (i) where the registrant is an individual, the registrant or another individual related to the registrant, 
  (ii) where the registrant is a partnership, an individual who is a member of the partnership or another individual who is an employee, officer or shareholder of, or related to, a member of the partnership, 
  (iii) where the registrant is a corporation, an individual who is a shareholder of the corporation or another individual related to the shareholder, and 
  (iv) where the registrant is a trust, an individual who is a beneficiary of the trust or another individual related to the beneficiary, except where the registrant makes a taxable supply of the property in that period to such an individual for consideration that becomes due in that period and that is equal to the fair market value of the supply at the time the consideration becomes due. 
  
  ### Further restriction
  
  (2) In determining an input tax credit of a registrant, no amount shall be included in respect of the tax payable by the registrant in respect of property or a service acquired, imported or brought into a participating province by the registrant, except to the extent that 
  (a) the consumption or use of property or services of such quality, nature or cost is reasonable in the circumstances, having regard to the nature of the commercial activities of the registrant; and 
  (b) the amount is calculated on consideration for the property or service or on a value of the property that is reasonable in the circumstances. 
  
  # SUBDIVISION C 
  
  ## Special Cases 
  
  ## Becoming and Ceasing to be Registrant 
  
  ### Person becoming registrant
  
  171 (1) Where at any time a person becomes a registrant and immediately before that time the person was a small supplier, for the purpose of determining an input tax credit of the person, the person shall be deemed 
  (a) to have received, at that time, a supply by way of sale of each property of the person that was held immediately before that time for consumption, use or supply in the course of commercial activities of the person; and 
  (b) to have paid, at that time, tax in respect of the supply equal to the basic tax content of the property at that time. 
  
  ### Services and rental property
  
  (2) Subject to this Division, where at any time a person becomes a registrant, in determining the input tax credits of the person for the first reporting period of the person ending after that time, 
  (a) there may be included the total of any tax that became payable by the person before that time, to the extent that the tax was payable in respect of services to be supplied to the person after that time for consumption, use or supply in the course of commercial activities of the person or was calculated on the value of consideration that is a rent, royalty or similar payment attributable to a period after that time in respect of property that is used in the course of commercial activities of the person; and 
  (b) there shall not be included any tax that becomes payable by the person after that time, to the extent that the tax is payable in respect of services supplied to the person before that time or is calculated on the value of consideration that is a rent, royalty or similar payment attributable to a period before that time. 
  
  ### Properties on ceasing to be registrant
  
  (3) For the purposes of this Part, where a person ceases at any time to be a registrant, 
  (a) the person shall be deemed 
  (i) to have made, immediately before that time, a supply of each property of the person (other than capital property) that immediately before that time was held by the person for consumption, use or supply in the course of commercial activities of the person and to have collected, immediately before that time, tax in respect of the supply, calculated on the fair market value of the property at that time, and 
  (ii) to have received, at that time, a supply of the property by way of sale and to have paid, at that time, tax in respect of the supply equal to the amount determined under subparagraph (i); and 
  (b) where the person was, immediately before that time, using capital property of the person in commercial activities of the person, the person shall be deemed to have, immediately before that time, ceased using the property in commercial activities. 
  
  ### Services and rental properties
  
  (4) Where a person who engages in commercial activities ceases at any time to be a registrant, 
  (a) in determining the input tax credits of the person for the last reporting period of the person beginning before that time, there may be included the total of any tax that becomes payable by the person after that time, to the extent that the tax is payable in respect of services that were supplied to the person before that time for consumption, use or supply in the course of commercial activities of the person or is calculated on the value of consideration that is a rent, royalty or similar payment attributable to a period before that time in respect of property that is used in the course of commercial activities of the person; and 
  (b) in determining the net tax of the person for the last reporting period of the person beginning before that time, there shall be added to the total for A in the formula set out in subsection 225(1) any input tax credit claimed by the person before that time, to the extent that it relates to services to be supplied to the person after that time or to the value of consideration that is a rent, royalty or similar payment attributable to a period after that time. 
  
  ### Exception
  
  (5) Subsections (1) to (4) do not apply where section 171.1 applies and subsection (3) does not apply to property held by a person immediately before the person ceases to be a registrant where subsection 178.3(1), 178.4(1) or 178.5(1) or (2) applied to that property at an earlier time. 
  
  ## Taxi Businesses 
  
  ### Small suppliers
  
  171.1 (1) Where at any time a person who is a small supplier is engaged in a taxi business and other commercial activities in Canada, other than the supply by way of sale of real property, and the registration of the person under this Part does not apply to those other activities, 
  (a) the person shall be deemed, for the purposes of this Part, not to be a registrant at that time except in respect of that business and anything done by the person in the course of that business or in connection with it; and 
  (b) for the purposes of section 169 and Subdivision D, those other activities shall be deemed not to be commercial activities of the person at that time. 
  
  ### Becoming a registrant for other activities
  
  (2) Where at any time a person is engaged in a taxi business and other commercial activities in Canada, other than the supply by way of sale of real property, and the person’s registration under this Part begins, at that time, to apply to those other activities, the following rules apply: 
  (a) for the purpose of determining an input tax credit of the person, the person is deemed to have received, at that time, a supply by way of sale of each property of the person, other than capital property, that was held immediately before that time for consumption, use or supply in the course of those other activities and to have paid, at that time, tax in respect of the supply equal to the basic tax content of the property at that time; and 
  (b) for the purpose of determining the input tax credits of the person for the reporting period that includes that time, there may be included the total of any tax that became payable by the person before that time, to the extent that the tax is calculated on consideration, or a part thereof, 
  (i) that is reasonably attributable to a service that is to be rendered to the person after that time and that was acquired by the person for consumption, use or supply in the course of those other activities, or 
  (ii) that is a rent, royalty or similar payment in respect of property and that is reasonably attributable to a period after that time during which the property is used in the course of those other activities. 
  
  ### Ceasing to be a registrant for other activities
  
  (3) Where at any time a person is engaged in a taxi business and other commercial activities in Canada, other than the supply by way of sale of real property, and the person’s registration under this Part ceases, at that time, to apply to those other activities, the following rules apply: 
  (a) for the purposes of this Part, the person shall be deemed 
  (i) to have made, immediately before that time, a supply of each property of the person, other than capital property, that was held immediately before that time for consumption, use or supply in the course of those other activities, and to have collected, immediately before that time, tax in respect of the supply calculated on the fair market value of the property at that time, and 
  (ii) to have received, at that time, a supply of the property by way of sale and to have paid, at that time, tax in respect of the supply equal to the amount determined under subparagraph (i); 
  (b) in determining the input tax credits of the person for the reporting period that includes that time, there may be included tax that becomes payable by the person after that time, to the extent that the tax is calculated on consideration, or a part thereof, 
  (i) that is reasonably attributable to services that were rendered to the person before that time and that were acquired by the person for consumption, use or supply in the course of those other activities, or 
  (ii) that is a rent, royalty or similar payment in respect of property and that is reasonably attributable to a period before that time during which the property was used in the course of those other activities; and 
  (c) where, in determining an input tax credit claimed by the person in a return under section 238 for a reporting period of the person ending before that time, there was included an amount in respect of tax calculated on consideration, or a part thereof, 
  (i) that is reasonably attributable to services that are to be rendered to the person after that time, or 
  (ii) that is a rent, royalty or similar payment in respect of property and that is reasonably attributable to a period (in this paragraph referred to as the “lease period”) after that time, the amount shall be added in determining the net tax for the reporting period of the person that includes that time, to the extent to which the property is used by the person during the lease period, or the services were acquired by the person for consumption, use or supply, in the course of those other activities. 
  
  ## Appropriation of Property 
  
  ### Use by registrant
  
  172 (1) For the purposes of this Part, where a registrant who is an individual and who has, in the course of commercial activities of the registrant, acquired, manufactured or produced any property (other than capital property of the registrant) or acquired or performed any service appropriates the property or service, at any time, for the personal use, consumption or enjoyment of the registrant or another individual related to the registrant, the registrant shall be deemed 
  (a) to have made a supply of the property or service for consideration paid at that time equal to the fair market value of the property or service at that time; and 
  (b) except where the supply is an exempt supply, to have collected, at that time, tax in respect of the supply, calculated on that consideration. 
  
  ### Benefits to shareholders, etc.
  
  (2) For the purposes of this Part, where at any time a registrant that is a corporation, partnership, trust, charity, public institution or non-profit organization appropriates any property (other than capital property of the registrant) that was acquired, manufactured or produced, or any service acquired or performed, in the course of commercial activities of the registrant, to or for the benefit of a shareholder, partner, beneficiary or member of the registrant or any individual related to such a shareholder, partner, beneficiary or member, in any manner whatever (otherwise than by way of a supply made for consideration equal to the fair market value of the property or service), the registrant is deemed 
  (a) to have made a supply of the property or service for consideration paid at that time equal to the fair market value of the property or service at that time; and 
  (b) except where the supply is an exempt supply, to have collected, at that time, tax in respect of the supply, calculated on that consideration. 
  
  ### Application
  
  (3) This section does not apply to property or a service appropriated by a registrant to or for the benefit of a person where 
  (a) the registrant was, because of section 170, not entitled to claim an input tax credit in respect of the last acquisition or importation of the property or service by the registrant; or 
  (b) section 173 applies to the property or service so appropriated for the purpose of making it available to the person. 
  
  ## Pension Plans 
  
  ### Definitions
  
  172.1 (1) The following definitions apply in this section and in section 172.2.  
  *active member* has the meaning assigned by subsection 8500(1) of the Income Tax Regulations. (participant actif)   
  *defined benefits pension plan* means the part of a pension plan that is in respect of benefits under the plan that are determined in accordance with a formula set forth in the plan and under which the employer contributions are not determined in accordance with a formula set forth in the plan. (régime de pension à prestations déterminées)   
  *defined contribution pension plan* means the part of a pension plan that is not a defined benefits pension plan. (régime de pension à cotisations déterminées)   
  *employer resource* of a person means  
  (a) all or part of a labour activity of the person, other than the part of the labour activity consumed or used by the person in the process of creating, developing or bringing into existence property; 
  (b) all or part of property or a service supplied to the person, other than the part of the property or service consumed or used by the person in the process of creating, developing or bringing into existence property; 
  (c) all or part of property created, developed or brought into existence by the person; or 
  (d) any combination of the items referred to in paragraphs (a) to (c). ( ressource d’employeur)   
  *excluded activity*, in respect of a pension plan, means an activity undertaken exclusively  
  (a) for compliance by a participating employer of the pension plan as an issuer, or prospective issuer, of securities with reporting requirements under a law of Canada or of a province in respect of the regulation of securities; 
  (b) for evaluating the feasibility or financial impact on a participating employer of the pension plan of establishing, altering or winding-up the pension plan, other than an activity that relates to the preparation of an actuarial report in respect of the plan required under a law of Canada or of a province; 
  (c) for evaluating the financial impact of the pension plan on the assets and liabilities of a participating employer of the pension plan; 
  (d) for negotiating changes to the benefits under the pension plan with a union or similar organization of employees; 
  (e) if the pension plan is a pooled registered pension plan, for compliance by a participating employer of the pension plan as a PRPP administrator of the pension plan with requirements under the Pooled Registered Pension Plans Act or a similar law of a province, provided the activity is undertaken exclusively for the purpose of making a taxable supply of a service to a pension entity of the pension plan that is to be made  
  (i) for consideration that is not less than the fair market value of the service, and 
  (ii) at a time when no election under subsection 157(2) made jointly by the participating employer and the pension entity is in effect; or 
  (f) in relation to a part of the pension plan that is a defined contribution pension plan or that is a defined benefits pension plan, if no pension entity of the pension plan administers that part of the pension plan or holds assets in respect of that part of the pension plan; or 
  (g) for prescribed purposes. ( activité exclue)   
  *labour activity* of a person means anything done by an individual who is or agrees to become an employee of the person in the course of, or in relation to, the office or employment of that individual. (activité de main-d’oeuvre)   
  *master pension group* in respect of a particular person and another person means the group of one or more pension plans that consists of every pension plan that meets the following conditions:  
  (a) the particular person is a participating employer of the pension plan; and 
  (b) the other person is a master pension entity of the pension plan. ( groupe de pension principal)   
  *participating employer* [Repealed, 2012, c. 31, s. 75]   
  *pension activity*, in respect of a pension plan, means an activity (other than an excluded activity) that relates to  
  (a) the establishment, management or administration of the pension plan or of a pension entity or master pension entity of the pension plan; or 
  (b) the management or administration of assets in respect of the pension plan, including assets held by a pension entity or master pension entity of the pension plan. ( activité de pension)   
  *pension entity* [Repealed, 2012, c. 31, s. 75]   
  *pension plan* [Repealed, 2012, c. 31, s. 75]   
  *provincial factor* in respect of a pension plan and a participating province, for a fiscal year of a person that is a participating employer of the pension plan, means the amount (expressed as a percentage) determined by the formula  is the tax rate for the participating province on the last day of the fiscal year; and is 
  (a) if the person made contributions to the pension plan during the fiscal year that may be deducted by the person under paragraph 20(1)(q) of the Income Tax Act in computing its income (in this paragraph referred to as “pension contributions”) and the number of active members of the pension plan who were employees of the person on the particular day that is the last day of the last calendar year ending on or before the last day of the fiscal year is greater than zero, the amount determined by the formula  is the total of all pension contributions made to the pension plan by the person during the fiscal year in respect of employees of the person who were resident in the participating province on the particular day, is the total of all pension contributions made to the pension plan by the person during the fiscal year in respect of employees of the person, is the number of active members of the pension plan who were, on the particular day, employees of the person and resident in the participating province, and is the number of active members of the pension plan who were, on the particular day, employees of the person; 
  (b) if paragraph (a) does not apply and the number of active members of the pension plan who were employees of the person on the particular day that is the last day of the last calendar year ending on or before the last day of the fiscal year is greater than zero, the amount determined by the formula is the number of active members of the pension plan who were, on the particular day, employees of the person and resident in the participating province, and is the number of active members of the pension plan who were, on the particular day, employees of the person; or 
  (c) in any other case, zero. ( facteur provincial)   
  *specified resource* means property or a service that is acquired by a person for the purpose of making a supply of all or part of the property or service to a pension entity or a master pension entity of a pension plan of which the person is a participating employer. (ressource déterminée)   
  *specified supply* of a participating employer of a pension plan to the pension plan means  
  (a) a taxable supply deemed to have been made under subsection (5) or (5.1) of all or part of property or a service that the participating employer acquired for the purpose of making a supply of all or part of the property or service to a pension entity or master pension entity of the pension plan; 
  (b) a taxable supply deemed to have been made under subsection (6) or (6.1) of an employer resource of the participating employer that the participating employer consumed or used for the purpose of making a supply of property or a service to a pension entity or master pension entity of the pension plan; or 
  (c) a taxable supply deemed to have been made under subsection (7) or (7.1) of an employer resource of the participating employer that the participating employer consumed or used in the course of pension activities in respect of the pension plan. ( fourniture déterminée)  
  
  ### Excluded resource
  
  (2) For the purposes of this section, property or a service that is supplied to a particular person that is a participating employer of a pension plan by another person is an excluded resource of the particular person in respect of the pension plan if 
  (a) for each pension entity and master pension entity of the pension plan, no tax would become payable under this Part in respect of the supply if 
  (i) the supply were made by the other person to the pension entity or to the master pension entity, as the case may be, and not to the particular person, and 
  (ii) the pension entity or the master pension entity, as the case may be, and the other person were dealing at arm’s length; and 
  (b) where the supply is a supply of tangible personal property made outside Canada, the supply would not be an imported taxable supply (as defined in section 217) if the particular person were a registrant not engaged exclusively in commercial activities. 
  
  ### Time of acquisition
  
  (3) For the purposes of this section, if, at a particular time, a supply of property described in paragraph 142(2)(a) or (b) is made to a person who is a participating employer of a pension plan and, at a later time, tax under section 212 becomes payable by the person in respect of the property 
  (a) the supply is deemed to have been made to the person at the later time and not at the particular time; and 
  (b) tax is deemed to have been payable in respect of the supply at the later time. 
  
  ### Specified pension entity
  
  (4) For the purposes of this section, if a person is a participating employer of a pension plan and the pension plan has, 
  (a) at all times in a fiscal year of the person, no more than one pension entity, that pension entity is the specified pension entity of the pension plan in respect of the person for the fiscal year; and 
  (b) in the fiscal year, two or more pension entities, the person and one of those pension entities may jointly elect, in prescribed form containing prescribed information, for that pension entity to be the specified pension entity of the pension plan in respect of the person for the fiscal year. 
  
  ### Acquisition for supply to pension entity
  
  (5) If a person is both a registrant and a participating employer of a pension plan at any time in a particular fiscal year of the person and is not a selected qualifying employer of the pension plan at that time, if the person acquires at that time a specified resource for the purpose of making a supply of all or part of the specified resource to a pension entity of the pension plan for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan and if the specified resource is not an excluded resource of the person in respect of the pension plan, the following rules apply: 
  (a) for the purposes of this Part, the person is deemed to have made a taxable supply of the specified resource or part on the last day of the particular fiscal year; 
  (b) for the purposes of this Part, tax in respect of the taxable supply is deemed to have become payable on the last day of the particular fiscal year and the person is deemed to have collected that tax on that day; 
  (c) for the purposes of this Part, the tax referred to in paragraph (b) is deemed to be equal to the amount determined by the formula is the amount determined by the formula is the fair market value of the specified resource or part at the time it was acquired by the person, and is the rate set out in subsection 165(1), and is the total of all amounts, each of which is determined for a participating province by the following formula is the fair market value of the specified resource or part at the time it was acquired by the person, and is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year; and 
  (d) for the purpose of determining an input tax credit of the pension entity under this Part and for the purposes of sections 232.01, 232.02 and 261.01, the pension entity is deemed 
  (i) to have received a supply of the specified resource or part on the last day of the particular fiscal year, 
  (ii) to have paid tax in respect of that supply on that day equal to the amount determined by the formula is 
  (A) if the pension entity is a selected listed financial institution on that day, the amount determined for A in paragraph (c), and 
  (B) in any other case, the amount of tax determined under paragraph (c), and is the total of all amounts, each of which is a part of the amount determined for A 
  (A) that is not included in determining the person’s net tax for the reporting period that includes the last day of the particular fiscal year, or 
  (B) that the person has recovered or is entitled to recover by way of rebate, refund or remission, or otherwise, under this or any other Act of Parliament, and 
  (iii) to have acquired the specified resource or part for consumption, use or supply in the course of its commercial activities to the same extent that the specified resource or part was acquired by the person for the purpose of making a supply of the specified resource or part to the pension entity for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan that are commercial activities of the pension entity. 
  
  ### Acquisition for supply to master pension entity
  
  (5.1) If a person that is a registrant acquires at any time in a particular fiscal year of the person a specified resource for the purpose of making a supply of all or part of the specified resource to a master pension entity for consumption, use or supply by the master pension entity in the course of pension activities in respect of any pension plan that is in the master pension group in respect of the person and the master pension entity at that time, if the person is not at that time a selected qualifying employer of any pension plan in the master pension group and if it is not the case that the specified resource is an excluded resource of the person in respect of any pension plan in the master pension group, the following rules apply: 
  (a) for the purposes of this Part, the person is deemed to have made a taxable supply of the specified resource or part on the last day of the particular fiscal year; 
  (b) for the purposes of this Part, tax in respect of the taxable supply is deemed to have become payable on the last day of the particular fiscal year and the person is deemed to have collected that tax on that day; 
  (c) for the purposes of this Part, the tax referred to in paragraph (b) is deemed to be equal to the total of all amounts, each of which is determined for each pension plan in the master pension group by the formula is the amount determined by the formula is the fair market value of the specified resource or part at the time it was acquired by the person, is the rate set out in subsection 165(1), and is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes the last day of the particular fiscal year, and is the total of all amounts, each of which is determined for a participating province by the following formula is the amount determined for C, is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, and is the master pension factor determined for E; and 
  (d) for each pension plan in the master pension group, the specified pension entity of the pension plan is deemed for the purpose of determining an input tax credit of the specified pension entity under this Part and for the purposes of sections 232.01, 232.02 and 261.01, 
  (i) to have received a supply of the specified resource or part on the last day of the particular fiscal year, 
  (ii) to have paid tax in respect of that supply on that day equal to the amount determined by the formula is 
  (A) if the specified pension entity is a selected listed financial institution on that day, the amount determined for the pension plan under the description of A in paragraph (c), and 
  (B) in any other case, the amount of tax determined for the pension plan under paragraph (c), and is the total of all amounts, each of which is a part of the amount determined for A 
  (A) that is not included in determining the person’s net tax for the reporting period that includes the last day of the particular fiscal year, or 
  (B) that the person has recovered or is entitled to recover by way of rebate, refund or remission, or otherwise, under this or any other Act of Parliament, and 
  (iii) to have acquired the specified resource or part for consumption, use or supply in the course of its commercial activities to the same extent that the specified resource or part was acquired by the person for the purpose of making a supply of the specified resource or part to the master pension entity for consumption, use or supply by the master pension entity in the course of pension activities of the master pension entity that are commercial activities of the master pension entity. 
  
  ### Consumption or use of employer resource for supply
  
  (6) If a person is both a registrant and a participating employer of a pension plan at any time in a particular fiscal year of the person and is not a selected qualifying employer of the pension plan at that time, if the person consumes or uses at that time an employer resource of the person for the purpose of making a supply of property or a service (in this subsection referred to as the “pension supply”) to a pension entity of the pension plan for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan and if the employer resource is not an excluded resource of the person in respect of the pension plan, the following rules apply: 
  (a) for the purposes of this Part, the person is deemed to have made a taxable supply of the employer resource (in this subsection referred to as the “employer resource supply”) on the last day of the particular fiscal year; 
  (b) for the purposes of this Part, tax in respect of the employer resource supply is deemed to have become payable on the last day of the particular fiscal year and the person is deemed to have collected that tax on that day; 
  (c) for the purposes of this Part, the tax referred to in paragraph (b) is deemed to be equal to the amount determined by the formula is the amount determined by the formula is 
  (i) if the employer resource was consumed by the person during the particular fiscal year for the purpose of making the pension supply, the product obtained when the fair market value of the employer resource at the time the person began consuming it in the particular fiscal year is multiplied by the extent to which that consumption (expressed as a percentage of the total consumption of the employer resource by the person during the particular fiscal year) occurred when the person was both a registrant and a participating employer of the pension plan, or 
  (ii) otherwise, the product obtained when the fair market value of the use of the employer resource during the particular fiscal year as determined on the last day of the particular fiscal year is multiplied by the extent to which the employer resource was used during the particular fiscal year (expressed as a percentage of the total use of the employer resource by the person during the particular fiscal year) for the purpose of making the pension supply when the person was both a registrant and a participating employer of the pension plan, and is the rate set out in subsection 165(1), and is the total of all amounts, each of which is determined for a participating province by the following formula is the amount determined for C, and is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year; and 
  (d) for the purpose of determining an input tax credit of the pension entity under this Part and for the purposes of sections 232.01, 232.02 and 261.01, the pension entity is deemed 
  (i) to have received a supply of the employer resource on the last day of the particular fiscal year, 
  (ii) to have paid tax in respect of that supply on that day equal to the amount determined by the formula is 
  (A) if the pension entity is a selected listed financial institution on that day, the amount determined for A in paragraph (c), and 
  (B) in any other case, the amount of tax determined under paragraph (c), and is the total of all amounts, each of which is a part of the amount determined for A 
  (A) that is not included in determining the person’s net tax for the reporting period that includes the last day of the particular fiscal year, or 
  (B) that the person has recovered or is entitled to recover by way of rebate, refund or remission, or otherwise, under this or any other Act of Parliament, and 
  (iii) to have acquired the employer resource for consumption, use or supply in the course of its commercial activities to the same extent that the property or service supplied in the pension supply was acquired by the pension entity for consumption, use or supply by the pension entity in pension activities in respect of the pension plan that are commercial activities of the pension entity. 
  
  ### Employer resource for supply to master pension entity
  
  (6.1) If a person that is a registrant consumes or uses at any time in a particular fiscal year of the person an employer resource of the person for the purpose of making a supply of property or a service (in this subsection referred to as the “pension supply”) to a master pension entity for consumption, use or supply by the master pension entity in the course of pension activities in respect of any pension plan that is in the master pension group in respect of the person and the master pension entity at that time, if the person is not at that time a selected qualifying employer of any pension plan in the master pension group and if it is not the case that the employer resource is an excluded resource of the person in respect of any pension plan in the master pension group, the following rules apply: 
  (a) for the purposes of this Part, the person is deemed to have made a taxable supply of the employer resource (in this subsection referred to as the “employer resource supply”) on the last day of the particular fiscal year; 
  (b) for the purposes of this Part, tax in respect of the employer resource supply is deemed to have become payable on the last day of the particular fiscal year and the person is deemed to have collected that tax on that day; 
  (c) for the purposes of this Part, the tax referred to in paragraph (b) is deemed to be equal to the total of all amounts, each of which is determined for each pension plan in the master pension group by the formula is the amount determined by the formula is 
  (i) if the employer resource was consumed by the person during the particular fiscal year for the purpose of making the pension supply, the product obtained when the fair market value of the employer resource at the time the person began consuming it in the particular fiscal year is multiplied by the extent to which that consumption (expressed as a percentage of the total consumption of the employer resource by the person during the particular fiscal year) occurred when the person was both a registrant and a participating employer of the pension plan, or 
  (ii) otherwise, the product obtained when the fair market value of the use of the employer resource during the particular fiscal year as determined on the last day of the particular fiscal year is multiplied by the extent to which the employer resource was used during the particular fiscal year (expressed as a percentage of the total use of the employer resource by the person during the particular fiscal year) for the purpose of making the pension supply when the person was both a registrant and a participating employer of the pension plan, is the rate set out in subsection 165(1), and is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes the last day of the particular fiscal year, and is the total of all amounts, each of which is determined for a participating province by the following formula is the amount determined for C, is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, and is the master pension factor determined for E; and 
  (d) for each pension plan in the master pension group, the specified pension entity of the pension plan is deemed for the purpose of determining an input tax credit of the specified pension entity under this Part and for the purposes of sections 232.01, 232.02 and 261.01, 
  (i) to have received a supply of the employer resource on the last day of the particular fiscal year, 
  (ii) to have paid tax in respect of that supply on that day equal to the amount determined by the formula is 
  (A) if the specified pension entity is a selected listed financial institution on that day, the amount determined for the pension plan under the description of A in paragraph (c), and 
  (B) in any other case, the amount of tax determined for the pension plan under paragraph (c), and is the total of all amounts, each of which is a part of the amount determined for A 
  (A) that is not included in determining the person’s net tax for the reporting period that includes the last day of the particular fiscal year, or 
  (B) that the person has recovered or is entitled to recover by way of rebate, refund or remission, or otherwise, under this or any other Act of Parliament, and 
  (iii) to have acquired the employer resource for consumption, use or supply in the course of its commercial activities to the same extent that the property or service supplied in the pension supply was acquired by the master pension entity for consumption, use or supply by the master pension entity in the course of pension activities of the master pension entity that are commercial activities of the master pension entity. 
  
  ### Employer resource other than for supply — pension entity
  
  (7) If a person is both a registrant and a participating employer of a pension plan at any time in a particular fiscal year of the person and is not a qualifying employer of the pension plan at that time, if the person consumes or uses at that time an employer resource of the person in the course of pension activities in respect of the pension plan, if the employer resource is not an excluded resource of the person in respect of the pension plan and if none of subsections (6), (6.1) and (7.1) applies to that consumption or use, the following rules apply: 
  (a) for the purposes of this Part, the person is deemed to have made a taxable supply of the employer resource (in this subsection referred to as the “employer resource supply”) on the last day of the particular fiscal year; 
  (b) for the purposes of this Part, tax in respect of the employer resource supply is deemed to have become payable on the last day of the particular fiscal year and the person is deemed to have collected that tax on that day; 
  (c) for the purposes of this Part, the tax referred to in paragraph (b) is deemed to be equal to the amount determined by the formula is the amount determined by the formula is 
  (i) if the employer resource was consumed by the person during the particular fiscal year in the course of pension activities in respect of the pension plan, the product obtained when the fair market value of the employer resource at the time the person began consuming it in the particular fiscal year is multiplied by the extent to which that consumption (expressed as a percentage of the total consumption of the employer resource by the person during the particular fiscal year) occurred when the person was both a registrant and a participating employer of the pension plan, or 
  (ii) otherwise, the product obtained when the fair market value of the use of the employer resource during the particular fiscal year as determined on the last day of the particular fiscal year is multiplied by the extent to which the employer resource was used during the particular fiscal year (expressed as a percentage of the total use of the employer resource by the person during the particular fiscal year) in the course of pension activities in respect of the pension plan when the person was both a registrant and a participating employer of the pension plan, and is the rate set out in subsection 165(1), and is the total of all amounts, each of which is determined for a participating province by the following formula is the amount determined for C, and is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year; and 
  (d) for the purposes of determining, under section 261.01, an eligible amount of the specified pension entity of the pension plan in respect of the person for the particular fiscal year, the specified pension entity is deemed to have paid tax on the last day of the particular fiscal year equal to the amount determined by the formula is 
  (i) if the specified pension entity is a selected listed financial institution on that day, the amount determined for A in paragraph (c), and 
  (ii) in any other case, the amount of tax determined under paragraph (c), and is the total of all amounts, each of which is a part of the amount determined for A 
  (i) that is not included in determining the person’s net tax for the reporting period that includes the last day of the particular fiscal year, or 
  (ii) that the person has recovered or is entitled to recover by way of rebate, refund or remission, or otherwise, under this or any other Act of Parliament. 
  
  ### Employer resource other than for supply — master pension entity
  
  (7.1) If a person that is a registrant consumes or uses at any time in a particular fiscal year of the person an employer resource of the person in the course of pension activities in respect of one or more pension plans that are in the master pension group in respect of the person and a master pension entity at that time, if the person is not at that time a qualifying employer of any pension plan in the master pension group, if it is not the case that the employer resource is an excluded resource of the person in respect of any pension plan in the master pension group, if the pension activities relate exclusively to the establishment, management or administration of the master pension entity or the management or administration of assets held by the master pension entity and if neither of subsections (6) and (6.1) applies to that consumption or use, the following rules apply: 
  (a) for the purposes of this Part, the person is deemed to have made a taxable supply of the employer resource (in this subsection referred to as the “employer resource supply”) on the last day of the particular fiscal year; 
  (b) for the purposes of this Part, tax in respect of the employer resource supply is deemed to have become payable on the last day of the particular fiscal year and the person is deemed to have collected that tax on that day; 
  (c) for the purposes of this Part, the tax referred to in paragraph (b) is deemed to be equal to the total of all amounts, each of which is determined for each particular pension plan in the master pension group by the formula is the amount determined by the formula is 
  (i) if the employer resource was consumed by the person during the particular fiscal year in the course of those pension activities, the product obtained when the fair market value of the employer resource at the time the person began consuming it in the particular fiscal year is multiplied by the extent to which that consumption (expressed as a percentage of the total consumption of the employer resource by the person during the particular fiscal year) occurred when the person was both a registrant and a participating employer of any pension plan in the master pension group, or 
  (ii) otherwise, the product obtained when the fair market value of the use of the employer resource during the particular fiscal year as determined on the last day of the particular fiscal year is multiplied by the extent to which the employer resource was used during the particular fiscal year (expressed as a percentage of the total use of the employer resource by the person during the particular fiscal year) in the course of those pension activities when the employer was both a registrant and a participating employer of any pension plan in the master pension group, is the rate set out in subsection 165(1), and is the master pension factor in respect of the particular pension plan for the fiscal year of the master pension entity that includes the last day of the particular fiscal year, and is the total of all amounts, each of which is determined for a participating province by the following formula is the amount determined for C, is the provincial factor in respect of the particular pension plan and the participating province for the particular fiscal year, and is the master pension factor determined for E; and 
  (d) for each pension plan in the master pension group, the specified pension entity of the pension plan is deemed — for the purposes of determining, under section 261.01, an eligible amount of the specified pension entity of the pension plan in respect of the person for the particular fiscal year — to have paid tax on the last day of the particular fiscal year equal to the amount determined by the formula is 
  (i) if the specified pension entity is a selected listed financial institution on that day, the amount determined for the pension plan under the description of A in paragraph (c), and 
  (ii) in any other case, the amount of tax determined for the pension plan under paragraph (c), and is the total of all amounts, each of which is a part of the amount determined for A 
  (i) that is not included in determining the person’s net tax for the reporting period that includes the last day of the particular fiscal year, or 
  (ii) that the person has recovered or is entitled to recover by way of rebate, refund or remission, or otherwise, under this or any other Act of Parliament. 
  
  ### Provision of information to pension entity
  
  (8) If any of subsections (5) to (7.1) applies in respect of a person that is a participating employer of a pension plan, the person shall, in prescribed form and in a manner satisfactory to the Minister, provide prescribed information to the pension entity of the pension plan that is deemed to have paid tax under that subsection. 
  
  ### Later addition to net tax of employer
  
  (8.01) If, in making an assessment of the net tax for a reporting period of a person, the Minister determines that the tax in respect of a supply of all or part of a specified resource deemed to have been made by the person under paragraph (5)(a) or (5.1)(a) or in respect of a supply of an employer resource deemed to have been made by the person under any of paragraphs (6)(a), (6.1)(a), (7)(a) and (7.1)(a) is greater than the amount of tax that had been accounted for in respect of the supply prior to the Minister’s assessment of the net tax for the reporting period and if the person has paid or remitted all amounts owing to the Receiver General in respect of the net tax for the reporting period, if any, the following rules apply: 
  (a) the person shall, in prescribed form and in a manner satisfactory to the Minister, provide prescribed information in respect of the supply to each pension entity that is deemed to have paid tax in respect of the specified resource or part or in respect of the employer resource, as the case may be, under whichever of paragraphs (5)(d), (5.1)(d), (6)(d), (6.1)(d), (7)(d) and (7.1)(d) is applicable (in this subsection referred to as the “applicable paragraph”) before the day that is one year after the later of 
  (i) the day on which the Minister sends the notice of the assessment, and 
  (ii) the first day on which all amounts owing to the Receiver General in respect of the net tax for the reporting period, if any, have been paid or remitted; and 
  (b) if the person provides the prescribed information to a particular pension entity in accordance with paragraph (a) and if the prescribed information is received by the particular pension entity on a particular day that is after the end of the last claim period (as defined in subsection 259(1)) of the particular pension entity that ends within two years after the day on which the supply was deemed to have been made, for the purposes referred to in the applicable paragraph,  
  (i) the particular pension entity is deemed to have paid on the particular day tax equal to the amount determined by the formula is the amount of tax in respect of the specified resource or part or in respect of the employer resource, as the case may be, that the particular pension entity is deemed to have paid under the applicable paragraph, is the difference between the tax in respect of the supply and the amount of tax that had been accounted for in respect of the supply prior to the Minister’s assessment of the net tax for the reporting period, and is the tax in respect of the supply, and 
  (ii) if the applicable paragraph is paragraph (5)(d), (5.1)(d), (6)(d) or (6.1)(d), the tax that the particular pension entity is deemed to have paid under subparagraph (i) is deemed to be paid in respect of the supply of the specified resource or part or in respect of the supply of the employer resource, as the case may be, that the particular pension entity is deemed to have received under the applicable paragraph. 
  
  ### Provision of information by master pension entity
  
  (8.1) A master pension entity of a pension plan shall, in a manner satisfactory to the Minister, provide the master pension factor in respect of the pension plan for a fiscal year of the master pension entity, and any other information that the Minister may specify, to each participating employer of the pension plan on or before the day that is 30 days after the first day of the fiscal year. 
  
  ### Selected qualifying employer
  
  (9) For the purposes of this section, a particular participating employer of a pension plan is a selected qualifying employer of the pension plan for a particular fiscal year of the particular participating employer if no election under subsection 157(2) made jointly by the particular participating employer and a pension entity of the pension plan is in effect in the particular fiscal year, if no election under subsection 157(2.1) made jointly by the particular participating employer and a master pension entity of the pension plan is in effect in the particular fiscal year, if the particular participating employer did not become a participating employer of the pension plan in the particular fiscal year, if the amount determined for A in the following formula is less than $5,000 and if the amount (expressed as a percentage) determined by the following formula is less than 10%: is the total of all amounts, each of which is 
  (a) an amount of tax deemed to have been collected under any of subsections (5) to (7.1) by the particular participating employer in respect of a specified supply of the particular participating employer to the pension plan during the fiscal year (in this subsection referred to as the “preceding fiscal year”) of the particular participating employer preceding the particular fiscal year less the amount, if any, determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, 
  (b) if the particular participating employer is a selected qualifying employer of the pension plan for the preceding fiscal year, an amount of tax that would have been deemed to have been collected under any of subsections (5) to (6.1) by the particular participating employer during the preceding fiscal year in respect of a supply that would have been deemed to have been made under whichever of those subsections is applicable and that would be a specified supply of the particular participating employer to the pension plan, if the particular participating employer were not a selected qualifying employer, less the amount, if any, that would be determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, 
  (c) if the particular participating employer is a qualifying employer of the pension plan for the preceding fiscal year, an amount of tax that would have been deemed to have been collected under subsection (7) or (7.1) by the particular participating employer during the preceding fiscal year in respect of a supply that would have been deemed to have been made under whichever of those subsections is applicable and that would be a specified supply of the particular participating employer to the pension plan, if the particular participating employer were not a qualifying employer, less the amount, if any, that would be determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, 
  (d) an amount of tax deemed to have been collected under any of subsections (5) to (7.1) by another participating employer of the pension plan in respect of a specified supply of the other participating employer to the pension plan during a fiscal year of the other participating employer that ends in the preceding fiscal year, provided that the other participating employer is related at any time in the preceding fiscal year to the particular participating employer, less the amount, if any, determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, 
  (e) an amount of tax that would have been deemed to have been collected under any of subsections (5) to (6.1) by another participating employer of the pension plan during a fiscal year of the other participating employer that ends in the preceding fiscal year in respect of a supply that would have been deemed to have been made under whichever of those subsections is applicable and that would be a specified supply of the other participating employer to the pension plan if the other participating employer were not a selected qualifying employer, provided that the other participating employer is related at any time in the preceding fiscal year to the particular participating employer and is a selected qualifying employer of the pension plan for that fiscal year of the other participating employer, less the amount, if any, that would be determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, or 
  (f) an amount of tax that would have been deemed to have been collected under subsection (7) or (7.1) by another participating employer of the pension plan during a fiscal year of the other participating employer that ends in the preceding fiscal year in respect of a supply that would have been deemed to have been made under whichever of those subsections is applicable and that would be a specified supply of the other participating employer to the pension plan if the other participating employer were not a qualifying employer, provided that the other participating employer is related at any time in the preceding fiscal year to the particular participating employer and is a qualifying employer of the pension plan for that fiscal year of the other participating employer, less the amount, if any, that would be determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax; is the total of all amounts, each of which is 
  (a) an amount of tax under subsection 165(1) or section 212, 218 or 218.01 paid by a pension entity of the pension plan during a fiscal year of the pension entity that ends in the preceding fiscal year but only to the extent that the amount is an eligible amount (as defined in subsection 261.01(1)) for a claim period (as defined in that subsection) of the pension entity, 
  (b) an amount of tax deemed to have been collected under any of subsections (5) to (7.1) by a participating employer of the pension plan, including the particular participating employer, during a fiscal year of the participating employer that ends in the preceding fiscal year in respect of a specified supply of the participating employer to the pension plan less the amount, if any, determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, or 
  (c) an amount required to be added to the net tax of a pension entity of the pension plan under paragraph 232.01(5)(b) or 232.02(4)(b) for a reporting period of the pension entity that ends in the preceding fiscal year as a consequence of the issuance of a tax adjustment note under subsection 232.01(3) or 232.02(2) or, if less, the amount that would have been required to be so added if the pension entity were a selected listed financial institution; and is the total of all amounts, each of which is 
  (a) the federal component amount of a tax adjustment note issued under subsection 232.01(3) or 232.02(2) by a participating employer of the pension plan, including the particular participating employer, to a pension entity of the pension plan during a fiscal year of the pension entity that ends in the preceding fiscal year, or 
  (b) a recoverable amount (as defined in subsection 261.01(1)) of a pension entity of the pension plan in respect of a claim period ending in a fiscal year of the pension entity that ends in the preceding fiscal year but only to the extent that the recoverable amount is in respect of an amount determined for A under paragraph (c) of whichever of subsections (5) to (7.1) is applicable in determining an amount of tax deemed to have been paid by the pension entity under this section for the purposes of section 261.01.  
  
  ### Qualifying employer
  
  (10) For the purposes of this section, a particular participating employer of a pension plan is a qualifying employer of the pension plan for a particular fiscal year of the particular participating employer if the particular participating employer did not become a participating employer of the pension plan in the particular fiscal year, if the amount determined for A in the following formula is less than $5,000 and if the amount (expressed as a percentage) determined by the following formula is less than 10%: is the total of all amounts, each of which is 
  (a) an amount of tax deemed to have been collected under subsection (7) or (7.1) by the particular participating employer in respect of a specified supply of the particular participating employer to the pension plan during the fiscal year (in this subsection referred to as the “preceding fiscal year”) of the particular participating employer preceding the particular fiscal year less the amount, if any, determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, 
  (b) if the particular participating employer is a qualifying employer of the pension plan for the preceding fiscal year, an amount of tax that would have been deemed to have been collected under subsection (7) or (7.1) by the particular participating employer during the preceding fiscal year in respect of a supply that would have been deemed to have been made under whichever of those subsections is applicable and that would be a specified supply of the particular participating employer to the pension plan, if the particular participating employer were not a qualifying employer, less the amount, if any, that would be determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, 
  (c) an amount of tax deemed to have been collected under subsection (7) or (7.1) by another participating employer of the pension plan in respect of a specified supply of the other participating employer to the pension plan during a fiscal year of the other participating employer that ends in the preceding fiscal year, provided that the other participating employer is related at any time in the preceding fiscal year to the particular participating employer, less the amount, if any, determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, or 
  (d) an amount of tax that would have been deemed to have been collected under subsection (7) or (7.1) by another participating employer of the pension plan during a fiscal year of the other participating employer that ends in the preceding fiscal year in respect of a supply that would have been deemed to have been made under whichever of those subsections is applicable and that would be a specified supply of the other participating employer to the pension plan if the other participating employer were not a qualifying employer, provided that the other participating employer is related at any time in the preceding fiscal year to the particular participating employer and is a qualifying employer of the pension plan for that fiscal year of the other participating employer, less the amount, if any, that would be determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax; is the total of all amounts, each of which is 
  (a) an amount of tax under subsection 165(1) or section 212, 218 or 218.01 paid by a pension entity of the pension plan during a fiscal year of the pension entity that ends in the preceding fiscal year but only to the extent that the amount is an eligible amount (as defined in subsection 261.01(1)) for a claim period (as defined in that subsection) of the pension entity, 
  (b) an amount of tax deemed to have been collected under any of subsections (5) to (7.1) by a participating employer of the pension plan, including the particular participating employer, during a fiscal year of the participating employer that ends in the preceding fiscal year in respect of a specified supply of the participating employer to the pension plan less the amount, if any, determined for B under paragraph (c) of whichever of those subsections is applicable in determining that amount of tax, or 
  (c) an amount required to be added to the net tax of a pension entity of the pension plan under paragraph 232.01(5)(b) or 232.02(4)(b) for a reporting period of the pension entity that ends in the preceding fiscal year as a consequence of the issuance of a tax adjustment note under subsection 232.01(3) or 232.02(2) or, if less, the amount that would have been required to be so added if the pension entity were a selected listed financial institution; and is the total of all amounts, each of which is 
  (a) the federal component amount of a tax adjustment note issued under subsection 232.01(3) or 232.02(2) by a participating employer of the pension plan, including the particular participating employer, to a pension entity of the pension plan during a fiscal year of the pension entity that ends in the preceding fiscal year, or 
  (b) a recoverable amount (as defined in subsection 261.01(1)) of a pension entity of the pension plan in respect of a claim period ending in a fiscal year of the pension entity that ends in the preceding fiscal year but only to the extent that the recoverable amount is in respect of an amount determined for A under paragraph (c) of whichever of subsections (5) to (7.1) is applicable in determining an amount of tax deemed to have been paid by the pension entity under this section for the purposes of section 261.01.  
  
  ### New participating employer
  
  (11) For the purposes of this section, if a person becomes a participating employer of a pension plan in a particular fiscal year, the person is 
  (a) a selected qualifying employer of the pension plan for the particular fiscal year if it is reasonable to expect, at the time the person becomes a participating employer of the pension plan, that the person will be a selected qualifying employer of the pension plan for the fiscal year of the person following the particular fiscal year; and 
  (b) a qualifying employer of the pension plan for the particular fiscal year if it is reasonable to expect, at the time the person becomes a participating employer of the pension plan, that the person will be a qualifying employer of the pension plan for the fiscal year of the person following the particular fiscal year. 
  
  ### Mergers and amalgamations
  
  (12) If two or more corporations (each of which is referred to in this subsection as a “predecessor”), any of which is a participating employer of a pension plan, are merged or amalgamated to form one corporation (in this subsection referred to as the “new corporation”) that is a participating employer of the pension plan, otherwise than as the result of the acquisition of property of one corporation by another corporation pursuant to the purchase of the property by the other corporation or as the result of the distribution of the property to the other corporation on the winding-up of the corporation, despite section 271 and for the purposes of applying subsections (9) to (11) to the new corporation, the following rules apply: 
  (a) the new corporation is deemed to have a fiscal year (in this subsection referred to as the “prior fiscal year of the new corporation”) of 365 days immediately preceding the first fiscal year of the new corporation; 
  (b) any amount of tax deemed to have been collected under any of subsections (5) to (7.1) by a predecessor, or that would have been deemed to have been collected under any of those subsections if the predecessor were neither a selected qualifying employer nor a qualifying employer, at any time during the period of 365 days preceding the first fiscal year of the new corporation is deemed to have been collected under the same subsection by the new corporation, and not by a predecessor, on the last day of the prior fiscal year of the new corporation; 
  (c) any specified supply of a predecessor to the pension plan in respect of a taxable supply deemed to have been made under any of subsections (5) to (7.1), or that would have been deemed to have been made under any of those subsections if the predecessor were neither a selected qualifying employer nor a qualifying employer, at any time during the period of 365 days preceding the first fiscal year of the new corporation is deemed to be a specified supply of the new corporation to the pension plan and not of the predecessor; and 
  (d) the new corporation is deemed not to have become a participating employer of the pension plan. 
  
  ### Winding-up
  
  (13) If at any time a particular corporation that is a participating employer of a pension plan is wound up and not less than 90% of the issued shares of each class of the capital stock of the particular corporation were, immediately before that time, owned by another corporation that is a participating employer of the pension plan, despite subsection (11) and section 272 and for the purposes of applying the definition specified supply in subsection (1) in respect of the other corporation and applying subsections (9) and (10) to the other corporation, the other corporation is deemed to be the same corporation as, and a continuation of, the particular corporation.  
  
  ### Pension entity — assessment of supplier
  
  172.11 For the purposes of sections 225.2, 232.01, 232.02 and 261.01 and the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations, tax in respect of a supply of property or a service that became payable by a pension entity of a pension plan on a particular day is deemed to have become payable by the pension entity on the day on which the pension entity pays that tax and not to have become payable on the particular day if  
  (a) the supplier did not, before the end of the last claim period (as defined in subsection 259(1)) of the pension entity that ends within two years after the end of the claim period of the pension entity that includes the particular day, charge that tax;  
  (b) the supplier discloses in writing to the pension entity that the Minister has assessed the supplier for that tax; 
  (c) the pension entity pays that tax after the end of that last claim period; and 
  (d) that tax is not included in determining 
  (i) a rebate under subsection 261.01(2) that is claimed by the pension entity for that last claim period or an earlier claim period of the pension entity, or 
  (ii) an amount that a qualifying employer (as defined in subsection 261.01(1)) of the pension plan deducts in determining its net tax for a reporting period as a result of a joint election made under any of subsections 261.01(5), (6) and (9) with the pension entity for that last claim period or an earlier claim period of the pension entity.  
  
  ### Excluded amount
  
  172.2 (1) For the purposes of this section, an excluded amount of a master pension entity is an amount of tax that 
  (a) is deemed to have been paid by the master pension entity under this Part (other than section 191); 
  (b) became payable, or was paid without having become payable, by the master pension entity at a time when it was entitled to claim a rebate under section 259; or 
  (c) is payable under subsection 165(1), or is deemed under section 191 to have been paid, by the master pension entity in respect of a taxable supply to the master pension entity of a residential complex, an addition to a residential complex or land if, in respect of that supply, the master pension entity is entitled to claim a rebate under section 256.2 or would be so entitled after paying the tax payable in respect of that supply. 
  
  ### Designated pension entity
  
  (2) For the purposes of this section, 
  (a) if a person is a master pension entity of a pension plan having, at any time, only one pension entity, that pension entity is, at that time, the designated pension entity of the pension plan in respect of the person; and 
  (b) if a person is a master pension entity of a pension plan having, at any time, two or more pension entities and if an election made jointly under subsection (4) by the person and one of those pension entities is in effect at that time, that pension entity is, at that time, the designated pension entity of the pension plan in respect of the person. 
  
  ### Tax deemed paid by designated pension entity — section 261.01
  
  (3) For the purposes of section 261.01, if a particular amount of tax becomes payable, or is paid without having become payable, by a master pension entity of one or more pension plans at any time in a fiscal year of the master pension entity and if the particular amount of tax is not an excluded amount of the master pension entity, then, for each of those pension plans, the designated pension entity of the pension plan at that time in respect of the master pension entity is deemed to have paid at that time an amount of tax equal to the amount determined by the formula is 
  (a) if the designated pension entity is a selected listed financial institution and the particular amount of tax is payable under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1, zero, and 
  (b) in any other case, the amount determined by the formula is the particular amount of tax, and is the total of all amounts, each of which is included in the particular amount of tax and is 
  (i) an input tax credit that the master pension entity is entitled to claim in respect of the particular amount of tax, 
  (ii) an amount for which it can reasonably be regarded that the master pension entity has obtained or is entitled to obtain a rebate, refund or remission under any other section of this Act or under any other Act of Parliament, or 
  (iii) an amount that can reasonably be regarded as being included in an amount adjusted, refunded or credited to or in favour of the master pension entity for which a credit note referred to in subsection 232(3) has been received by the master pension entity or a debit note referred to in that subsection has been issued by the master pension entity; and is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes that time. 
  
  ### Assessment of supplier
  
  (3.1) For the purposes of subsection (3), tax in respect of a supply of property or a service that became payable by a master pension entity on a particular day is deemed to have become payable by the master pension entity on the day on which the master pension entity pays that tax and not to have become payable on the particular day if 
  (a) the supplier did not, within two years after the particular day, charge that tax; 
  (b) the supplier discloses in writing to the master pension entity that the Minister has assessed the supplier for that tax; and 
  (c) the master pension entity pays that tax on a day that is more than two years after the particular day. 
  
  ### Designated pension entity election
  
  (4) A master pension entity of a pension plan having two or more pension entities may jointly elect with one of those pension entities, in prescribed form containing prescribed information, to have that pension entity be, while the election is in effect, the designated pension entity of the pension plan in respect of the master pension entity for the purposes of this section. 
  
  ### Effective period of election
  
  (5) An election made under subsection (4) by a particular person that is a master pension entity of a pension plan and by another person that is a pension entity of the pension plan becomes effective on the day set out in the election and ceases to have effect on the earliest of 
  (a) the day on which the particular person ceases to be a master pension entity of the pension plan, 
  (b) the day on which the other person ceases to be a pension entity of the pension plan, 
  (c) the day on which an election made under subsection (4) by the particular person and by a third person that is a pension entity of the pension plan becomes effective, and 
  (d) the day specified in a revocation of the election made under subsection (6). 
  
  ### Revocation
  
  (6) A master pension entity and a pension entity that have jointly made an election under subsection (4) may jointly revoke the election, in prescribed form containing prescribed information, effective on the day specified in the revocation. 
  
  ## Taxable Benefits 
  
  ### Employee and shareholder benefits
  
  173 (1) Where a registrant makes a supply (other than an exempt or zero-rated supply) of property or a service to an individual or a person related to the individual and 
  (a) an amount (in this subsection referred to as the “benefit amount”) in respect of the supply 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 individual’s income for a taxation year of the individual, or  
  (b) the supply relates to the use or operation of an automobile and an amount (in this subsection referred to as a “reimbursement”) is paid by the individual or a person related to the individual that reduces the amount in respect of the supply that would otherwise be required under paragraph 6(1)(e), (k) or (l) or subsection 15(1) of that Act to be so included, the following rules apply: 
  (c) in the case of a supply of property otherwise than by way of sale, the use made by the registrant in so providing the property to the individual or person related to the individual is deemed, for the purposes of this Part, to be use in commercial activities of the registrant and, to the extent that the registrant acquired or imported the property or brought it into a participating province for the purpose of making that supply, the registrant is deemed, for the purposes of this Part, to have so acquired or imported the property or brought it into the province, as the case may be, for use in commercial activities of the registrant, and 
  (d) in any case, except where 
  (i) the registrant was, because of section 170, not entitled to claim an input tax credit in respect of the last acquisition, importation or bringing into a participating province of the property or service by the registrant, 
  (ii) an election under subsection (2) by the registrant in respect of the property is in effect at the beginning of the taxation year, 
  (iii) the registrant is an individual or a partnership and the property is a passenger vehicle or aircraft of the registrant that is not used by the registrant exclusively in commercial activities of the registrant, or 
  (iv) the registrant is not an individual, a partnership or a financial institution and the property is a passenger vehicle or aircraft of the registrant that is not used by the registrant primarily in commercial activities of the registrant, for the purpose of determining the net tax of the registrant, 
  (v) the total of the benefit amount and all reimbursements is deemed to be the total consideration payable in respect of the provision during the year of the property or service to the individual or person related to the individual, 
  (vi) the tax calculated on the total consideration is deemed to be equal to 
  (A) where the benefit amount is an amount that is or would, if the individual were an employee of the registrant and no reimbursements were paid, be required under paragraph 6(1)(k) or (l) of the Income Tax Act to be included in computing the individual’s income, the prescribed percentage of the total consideration, and  
  (B) in any other case, the amount determined by the formula is 
  (I) where 
  1. the benefit amount is required to be included under paragraph 6(1)(a) or (e) of the Income Tax Act in computing the 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 a participating province, or  
  2. the benefit amount is required under subsection 15(1) of that Act to be included in computing the individual’s income and the individual is resident in a participating province at the end of the year, the total of 4% and the percentage determined in prescribed manner in respect of the participating province or, in the absence of a percentage determined in prescribed manner in respect of the participating province, the total of 4% and the tax rate for the participating province, and 
  (II) in any other case, 4%, is the total of 100% and the percentage determined for A, and is the total consideration. 
  (vii) that tax is deemed to have become collectible, and to have been collected, by the registrant 
  (A) except where clause (B) applies, on the last day of February of the year following the taxation year, and 
  (B) where the benefit amount is or would, if no reimbursements were paid, be required under subsection 15(1) of that Act to be included in computing the individual’s income and relates to the provision of the property or service in a taxation year of the registrant, on the last day of that taxation year. 
  
  ### Election in respect of passenger vehicle or aircraft
  
  (2) Where 
  (a) in a reporting period of a registrant other than a financial institution, the registrant acquires a passenger vehicle or aircraft by way of lease for use otherwise than primarily in commercial activities of the registrant or the registrant uses, otherwise than primarily in commercial activities of the registrant, a passenger vehicle or aircraft that was last acquired by the registrant by way of lease, or 
  (b) in a reporting period of a registrant that is a financial institution, the registrant acquires a passenger vehicle or aircraft by way of purchase or lease or uses a passenger vehicle or aircraft that was last so acquired by the registrant, the registrant may make an election under this subsection in respect of the vehicle or aircraft to take effect on the first day of that reporting period of the registrant. 
  
  ### Effect of election
  
  (3) For the purposes of this Part, where an election made by a registrant under subsection (2) in respect of property becomes effective on a day in a particular reporting period of the registrant, 
  (a) notwithstanding paragraph (1)(c), the registrant is deemed to have begun, on that day, to use the property exclusively in activities of the registrant that are not commercial activities and, at all times thereafter until the registrant next disposes of or ceases to lease the property, the registrant is deemed to use the property exclusively in activities of the registrant that are not commercial activities; 
  (b) where the property was last supplied to the registrant by way of lease, 
  (i) there shall not be included, in determining an input tax credit claimed by the registrant in the return under section 238 for the particular or any subsequent reporting period, tax calculated on consideration, or a part thereof, for that supply that is reasonably attributable to a period after that day, and 
  (ii) where an amount in respect of any tax referred to in subparagraph (i) was included in determining an input tax credit claimed by the registrant in a return under section 238 for a reporting period ending before the particular reporting period, that amount shall be added in determining the net tax of the registrant for the particular reporting period; 
  (c) where the property was last supplied to the registrant by way of sale, the registrant is a financial institution and the cost of the property to the registrant did not exceed $50,000, 
  (i) there shall not be included, in determining an input tax credit claimed by the registrant in the return under section 238 for the particular or any subsequent reporting period, tax that is calculated on consideration or part thereof, for that supply or that is in respect of an improvement to the property acquired, imported or brought into a participating province by the registrant after the property was last so acquired, imported or brought in, as the case may be, and 
  (ii) where an amount in respect of any tax referred to in subparagraph (i) was included in determining an input tax credit claimed by the registrant in a return under section 238 for a reporting period of the registrant ending before the particular reporting period, that amount shall be added in determining the net tax of the registrant for the particular reporting period; and 
  (d) there shall not be included, in determining an input tax credit claimed by the registrant in the return under section 238 for the particular or any subsequent reporting period, tax calculated on an amount of consideration, or a value determined under section 215 or subsection 220.05(1), 220.06(1) or 220.07(1), that can reasonably be attributed to 
  (i) any property that is acquired, imported or brought into a participating province for consumption or use in operating the vehicle or aircraft in respect of which the election is made and that is, or is to be used, or consumed after that day, or 
  (ii) that portion of any service relating to the operation of that vehicle or aircraft that is, or is to be, rendered after that day; and 
  (e) where an amount in respect of any tax referred to in paragraph (d) was included in determining an input tax credit claimed by the registrant in a return under section 238 for a reporting period ending before the particular reporting period, that amount shall be added in determining the net tax of the registrant for the particular reporting period. 
  
  ### Form of election
  
  (4) An election made under subsection (2) shall be made in prescribed form containing prescribed information. 
  
  ## Allowances and Reimbursements 
  
  ### Travel and other allowances
  
  174 For the purposes of this Part, where 
  (a) a person pays an allowance 
  (i) to an employee of the person, 
  (ii) where the person is a partnership, to a member of the partnership, or 
  (iii) where the person is a charity or a public institution, to a volunteer who gives services to the charity or institution for 
  (iv) supplies all or substantially all of which are taxable supplies (other than zero-rated supplies) of property or services acquired in Canada by the employee, member or volunteer in relation to activities engaged in by the person, or 
  (v) the use in Canada, in relation to activities engaged in by the person, of a motor vehicle, 
  (b) an amount in respect of the allowance is deductible in computing the income of the person for a taxation year of the person for the purposes of the Income Tax Act, or would have been so deductible if the person were a taxpayer under that Act and the activity were a business, and  
  (c) in the case of an allowance to which subparagraph 6(1)(b)(v), (vi), (vii) or (vii.1) of that Act would apply 
  (i) if the allowance were a reasonable allowance for the purposes of that subparagraph, and 
  (ii) where the person is a partnership and the allowance is paid to a member of the partnership, if the member were an employee of the partnership, or, where the person is a charity or a public institution and the allowance is paid to a volunteer, if the volunteer were an employee of the charity or institution, the person considered, at the time the allowance was paid, that the allowance would be a reasonable allowance for those purposes and it is reasonable for the person to have considered, at that time, that the allowance would be a reasonable allowance for those purposes, the following rules apply: 
  (d) the person is deemed to have received a supply of the property or service, 
  (e) any consumption or use of the property or service by the employee, member or volunteer is deemed to be consumption or use by the person and not by the employee, member or volunteer, and 
  (f) the person is deemed to have paid, at the time the allowance is paid, tax in respect of the supply equal to the amount determined by the formula is the amount of the allowance, is 
  (i) in prescribed circumstances relating to a participating province, the percentage determined in prescribed manner, and 
  (ii) in any other case, the rate set out in subsection 165(1), and is the total of 100% and the percentage determined for B. 
  
  ### Employee, partner or volunteer reimbursement
  
  175 (1) Where an employee of an employer, a member of a partnership or a volunteer who gives services to a charity or public institution acquires or imports property or a service or brings it into a participating province for consumption or use in relation to activities of the employer, partnership, charity or public institution (each of which is referred to in this subsection as the “person”), the employee, member or volunteer paid the tax payable in respect of that acquisition, importation or bringing in and the person pays an amount to the employee, member or volunteer as a reimbursement in respect of the property or service, for the purposes of this Part, 
  (a) the person is deemed to have received a supply of the property or service; 
  (b) any consumption or use of the property or service by the employee, member or volunteer in relation to activities of the person is deemed to be consumption or use by the person and not by the employee, member or volunteer; and 
  (c) the person is deemed to have paid, at the time the reimbursement is paid, tax in respect of the supply equal to the amount determined by the formula is the tax paid by the employee, member or volunteer in respect of the acquisition, importation or bringing into a particular province of the property or service by the employee, member or volunteer, and is the lesser of 
  (i) the percentage of the cost to the employee, member or volunteer of the property or service that is reimbursed, and 
  (ii) the extent (expressed as a percentage) to which the property or service was acquired, imported or brought into the province, as the case may be, by the employee, member or volunteer for consumption or use in relation to activities of the person. 
  
  ### Exception
  
  (2) Subsection (1) does not apply to a reimbursement in respect of property or a service acquired, imported or brought into a participating province by a member of a partnership where paragraph 272.1(2)(b) applies to the acquisition, importation or bringing in, as the case may be, and the reimbursement is paid to the member after the member files with the Minister a return of the member under section 238 in which an input tax credit in respect of the property or service is claimed. 
  
  ### Warrantee reimbursement
  
  175.1 Where 
  (a) the beneficiary of a warranty (other than an insurance policy) in respect of the quality, fitness or performance of tangible property acquires or imports property or a service or brings it into a participating province and tax is payable by the beneficiary in respect of the acquisition, importation or bringing in, and 
  (b) a registrant pays to the beneficiary, under the terms of the warranty, an amount as a reimbursement in respect of the property or service and therewith provides written indication that a portion of the amount is on account of tax, the following rules apply: 
  (c) the registrant may claim an input tax credit, for the reporting period of the registrant in which the reimbursement is paid, equal to the amount (referred to in this section as the “tax reimbursed”) determined by the formula is the tax payable by the beneficiary, is the amount of the reimbursement, and is the cost to the beneficiary of the property or service, and 
  (d) where the beneficiary is a registrant who was entitled to claim an input tax credit, or a rebate under Division VI, in respect of the property or service, the beneficiary is deemed, for the purposes of this Part, to have made a taxable supply and to have collected, at the time the reimbursement is paid, tax in respect of the supply equal to the amount determined by the formula is the tax reimbursed, is the total of the input tax credits and rebates under Division VI that the beneficiary was entitled to claim in respect of the property or service, and is the tax payable by the beneficiary in respect of the supply to, or importation by, the beneficiary of the property or service. 
  
  ## Used Returnable Containers 
  
  ### Acquisition of used returnable containers
  
  176 (1) Subject to this Division, if 
  (a) a registrant is the recipient of a supply made in Canada by way of sale of used tangible personal property (other than a returnable container as defined in subsection 226(1)) that is a usual covering or container of a class of coverings or containers in which property (other than property the supply of which is a zero-rated supply) is delivered, 
  (b) tax is not payable by the registrant in respect of the supply, 
  (c) the property is acquired for the purpose of consumption, use or supply in the course of commercial activities of the registrant, and 
  (d) the registrant pays consideration for the supply that is not less than the total of 
  (i) the consideration that the registrant charges for supplies by the registrant of used coverings or containers of that class, and 
  (ii) all tax calculated on that consideration, for the purposes of this Part, the registrant is deemed (except where section 167 applies to the supply) to have paid, at the time any amount is paid as consideration for the supply, tax in respect of the supply equal to the amount determined by the formula is 
  (a) if the supply is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for that province, and 
  (b) in any other case, the rate set out in subsection 165(1), is the total of 100% and the percentage determined for A, and is the amount paid as consideration for the supply. 
  
  ### Consideration exceeding fair market value
  
  (2) For the purposes of subsection (1), where a person makes a supply of used tangible personal property to a registrant with whom the person is not dealing at arm’s length for consideration that exceeds the fair market value of the property at the time ownership of the property is transferred to the registrant, the value of the consideration for the supply shall be deemed to be equal to the fair market value of the property at that time. 
  (3) to (7)  [Repealed, 1997, c. 10, s. 25]  
  
  ## Agents 
  
  ### Supply on behalf of person not required to collect tax
  
  177 (1) Where 
  (a) a person (in this subsection referred to as the “principal”) makes a supply (other than an exempt or zero-rated supply) of tangible personal property to a recipient (otherwise than by auction), 
  (b) the principal is not required to collect tax in respect of the supply except as provided in this subsection, and 
  (c) a registrant (in this subsection referred to as the “agent”), in the course of a commercial activity of the agent, acts as agent in making the supply on behalf of the principal, the following rules apply: 
  (d) where the principal is a registrant and the property was last used, or acquired for consumption or use, by the principal in an endeavour of the principal, within the meaning of subsection 141.01(1), and the principal and agent jointly elect in writing, the supply of the property to the recipient is deemed to be a taxable supply for the following purposes: 
  (i) all purposes of this Part, other than determining whether the principal may claim an input tax credit in respect of property or services acquired or imported by the principal for consumption or use in making the supply to the recipient, and 
  (ii) the purpose of determining whether the principal may claim an input tax credit in respect of services supplied by the agent relating to the supply of the property to the recipient, and 
  (e) in any other case, the supply of the property to the recipient is deemed, for the purposes of this Part, to be a taxable supply made by the agent and not by the principal and the agent is deemed, for the purposes of this Part other than section 180, not to have made a supply to the principal of services relating to the supply of the property to the recipient. 
  
  ### Election for agent to account for tax
  
  (1.1) Where a registrant, in the course of a commercial activity of the registrant, acts as agent in making a supply (otherwise than by auction) on behalf of a person who is required to collect tax in respect of the supply otherwise than as a consequence of the application of paragraph (1)(d) and the registrant and the person jointly elect in prescribed form containing prescribed information, 
  (a) the tax collectible in respect of the supply or any amount charged or collected by the registrant on behalf of the person as or on account of tax in respect of the supply is deemed to be collectible, charged or collected, as the case may be, by the registrant, and not by the person, for the purposes of 
  (i) determining the net tax of the registrant and of the person, and 
  (ii) applying sections 222 and 232; 
  (b) the registrant and the person are jointly and severally, or solidarily, liable for all obligations under this Part that arise upon or as a consequence of 
  (i) the tax becoming collectible, 
  (ii) a failure to account for or pay as and when required under this Part an amount of net tax of the registrant, or an amount required under section 230.1 to be paid by the registrant, that is reasonably attributable to the supply, 
  (iii) the registrant claiming, in respect of the supply, an amount as a deduction under section 231 or 232 to which the registrant was not entitled or in excess of the amount to which the registrant was entitled, 
  (iv) a failure to pay as and when required under this Part the amount of any underpayment of net tax by the registrant, or an amount required under section 230.1 to be paid by the registrant, that is reasonably attributable to a claim referred to in subparagraph (iii), 
  (v) a recovery of all or part of a bad debt relating to the supply in respect of which the registrant claimed a deduction under subsection 231(1), or 
  (vi) a failure to account for or pay as and when required under this Part an amount of net tax of the registrant, or an amount required under section 230.1 to be paid by the registrant, that is reasonably attributable to an amount required under subsection 231(3) to be added to the net tax of the registrant in respect of a bad debt referred to in subparagraph (v); and 
  (c) the threshold amounts of the registrant and of the person under subsections 249(1) and (2) shall be determined as if any consideration that became due to the person, or was paid to the person without having become due, in respect of the supply had become due to the registrant, or had been paid to the registrant without having become due, as the case may be, and not to the person. 
  
  ### Billing agent
  
  (1.11) If a registrant acts as agent of a supplier in charging and collecting consideration and tax payable in respect of a supply made by the supplier but the registrant does not act as agent in making the supply, the registrant is deemed to have acted as agent of the supplier in making the supply for the purposes of 
  (a) subsection (1.1); and 
  (b) if an election under subsection (1.1) is made in respect of the supply, any other provision that refers to a supply in respect of which an election under that subsection has been made. 
  
  ### Joint revocation
  
  (1.12) A registrant and a supplier who have jointly made an election under subsection (1.1) may, in prescribed form containing prescribed information, jointly revoke the election with respect to any supply made on or after the effective date specified in the revocation, and the election is thereby deemed, for the purposes of this Part, not to have been made with respect to that supply. 
  
  ### Supply by auctioneer
  
  (1.2) Where a registrant (in this subsection referred to as the “auctioneer”), acting as auctioneer and agent for another person (in this subsection referred to as the “principal”) in the course of a commercial activity of the auctioneer, makes on behalf of the principal a supply by auction of tangible personal property to a recipient, the supply is deemed, for the purposes of this Part, to be a taxable supply made by the auctioneer and not by the principal and the auctioneer is deemed, for the purposes of this Part other than section 180, not to have made a supply to the principal of services relating to the supply of the property to the recipient. 
  
  ### Exception where election
  
  (1.3) Where 
  (a) a registrant (in this subsection referred to as the “auctioneer”), on a particular day, makes a particular supply by auction of prescribed property on behalf of another registrant (in this subsection referred to as the “principal”) and, but for subsection (1.2), that supply would be a taxable supply made by the principal, 
  (b) the auctioneer and principal jointly elect in prescribed form containing prescribed information in respect of the particular supply, and 
  (c) all or substantially all of the consideration for supplies made by auction on the particular day by the auctioneer on behalf of the principal is attributable to supplies of prescribed property in respect of which the auctioneer and principal have elected under this subsection, subsection (1.2) does not apply to the particular supply or to any supply made by the auctioneer to the principal of services relating to the particular supply. 
  (1.4)  [Repealed, 1997, c. 10, s. 26]  
  
  ### Supply for artists, etc.
  
  (2) For the purposes of this Part other than sections 148 and 249, where a prescribed registrant, acting in the course of a commercial activity, makes a supply on behalf of another person of intangible personal property in respect of a product of an author, performing artist, painter, sculptor or other artist, the following rules apply: 
  (a) the other person shall be deemed not to have made the supply to the recipient; 
  (b) the registrant shall be deemed to have made the supply to the recipient; and 
  (c) the registrant shall be deemed not to have made a supply to the other person of a service in relation to the supply to the recipient. 
  
  ## Collecting Body and Collective Societies 
  
  ### Meaning of 
  *collective society* 
  
  177.1 (1) In this section, 
  *collective society* means a collective society, as defined in section 2 of the Copyright Act, that is a registrant.  
  
  ###  Copyright Act expressions 
  
  (2) In this section, the expressions 
  *collecting body*, 
  *eligible author*, 
  *eligible maker* and 
  *eligible performer* have the same meanings as in section 79 of the Copyright Act.  
  
  ### Supply by collecting body or collective society
  
  (3) If a collecting body or a collective society makes a taxable supply to a person that is an eligible author, eligible maker, eligible performer or a collective society and the supply includes a service of collecting or distributing the levy payable under section 82 of the Copyright Act, the value of the consideration for the supply is, for the purpose of determining tax payable in respect of the supply, deemed to be equal to the amount determined by the formula:  is the value of that consideration as otherwise determined for the purposes of this Part; and is the part of the value of the consideration referred to in the description of A that is exclusively attributable to the service. 
  
  ## Network Sellers 
  
  ### Definitions
  
  178 (1) The following definitions apply in this section and section 236.5.  
  *network commission* of a sales representative of a person means an amount that is payable by the person to the sales representative under an agreement between the person and the sales representative  
  (a) as consideration for a supply of a service, made by the sales representative, of arranging for the sale of a select product or a sales aid of the person; or 
  (b) solely as a consequence of a supply of a service, made by any sales representative of the person described in paragraph (a) of the definition 
  *sales representative*, of arranging for the sale of a select product or a sales aid of the person. (commission de réseau)   
  *network seller* means a person notified by the Minister of an approval under subsection (5). (vendeur de réseau)   
  *sales aid* of a particular person that is a network seller or a sales representative of a network seller means property (other than a select product of any person) that  
  (a) is a customized business form or a sample, demonstration kit, promotional or instructional item, catalogue or similar personal property acquired, manufactured or produced by the particular person for sale to assist in the promotion, sale or distribution of select products of the network seller; and 
  (b) is neither sold nor held for sale by the particular person to a sales representative of the network seller that is acquiring the property for use as capital property. ( matériel de promotion)   
  *sales representative* of a particular person means  
  (a) a person (other than a person that is an employee of the particular person or that acts, in the course of its commercial activities, as agent in making supplies of select products of the particular person on behalf of the particular person) that 
  (i) has a contractual right under an agreement with the particular person to arrange for the sale of select products of the particular person, and 
  (ii) does not arrange for the sale of select products of the particular person primarily at a fixed place of business of the person other than a private residence; or 
  (b) a person (other than a person that is an employee of the particular person or that acts, in the course of its commercial activities, as agent in making supplies of select products of the particular person on behalf of the particular person) that has a contractual right under an agreement with the particular person to be paid an amount by the particular person solely as a consequence of a supply of a service, made by a person described in paragraph (a), of arranging for the sale of a select product or a sales aid of the particular person. ( représentant commercial)   
  *select product* of a person means tangible personal property that  
  (a) is acquired, manufactured or produced by the person for supply by the person for consideration, otherwise than as used property, in the ordinary course of business of the person; and 
  (b) is ordinarily acquired by consumers by way of sale. ( produit déterminé)  
  
  ### Qualifying network seller
  
  (2) For the purposes of this section, a person is a qualifying network seller throughout a fiscal year of the person if 
  (a) all or substantially all of the total of all consideration, included in determining the income from a business of the person for the fiscal year, for supplies made in Canada by way of sale is for 
  (i) supplies of select products of the person, made by the person, by way of sales that are arranged for by sales representatives of the person (in this subsection referred to as “select supplies”), or 
  (ii) where the person is a direct seller (as defined in section 178.1), supplies by way of sale of exclusive products (as defined in that section) of the person made by the person to independent sales contractors (as defined in that section) of the person at any time when an approval of the Minister for the application of section 178.3 to the person is in effect; 
  (b) all or substantially all of the total of all consideration, included in determining the income from a business of the person for the fiscal year, for select supplies is for select supplies made to consumers; 
  (c) all or substantially all of the sales representatives of the person to which network commissions become payable by the person during the fiscal year are sales representatives, each having a total of such network commissions of not more than the amount determined by the formula is the number of days in the fiscal year; and 
  (d) the person and each of its sales representatives have made joint elections under subsection (4). 
  
  ### Application
  
  (3) A person may apply to the Minister, in prescribed form containing prescribed information, to have subsection (7) apply to the person and each of its sales representatives, beginning on the first day of a fiscal year of the person, if the person 
  (a) is registered under Subdivision D of Division V and is reasonably expected to be, throughout the fiscal year, 
  (i) engaged exclusively in commercial activities, and 
  (ii) a qualifying network seller; and 
  (b) files the application in prescribed manner before 
  (i) in the case of a person that has never made a supply of a select product of the person, the day in the fiscal year on which the person first makes a supply of a select product of the person, and 
  (ii) in any other case, the first day of the fiscal year. 
  
  ### Joint election
  
  (4) If subsection (3) applies to a person or a person is a network seller, the person and a sales representative of the person may jointly elect, in prescribed form containing prescribed information, to have subsection (7) apply to them at all times when an approval granted under subsection (5) is in effect. 
  
  ### Approval or refusal
  
  (5) If the Minister receives an application under subsection (3) from a person, the Minister may approve the application of subsection (7) to the person and each of its sales representatives beginning on the first day of a fiscal year of the person or may refuse the application and the Minister shall notify the person in writing of the approval and the day on which it becomes effective or of the refusal. 
  
  ### Evidence of joint elections
  
  (6) Every network seller shall maintain evidence satisfactory to the Minister that the network seller and each of its sales representatives have made joint elections under subsection (4). 
  
  ### Effect of approval
  
  (7) For the purposes of this Part, if, at any time when an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is in effect, a network commission becomes payable by the network seller to a sales representative of the network seller as consideration for a taxable supply (other than a zero-rated supply) of a service made in Canada by the sales representative, the taxable supply is deemed not to be a supply. 
  
  ### Sales aids
  
  (8) For the purposes of this Part, if, at any time when an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is in effect, the network seller or a sales representative of the network seller makes in Canada a taxable supply by way of sale of a sales aid of the network seller or of the sales representative, as the case may be, to a sales representative of the network seller, the taxable supply is deemed not to be a supply. 
  
  ### Host gifts
  
  (9) For the purposes of this Part, if, at any time when an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is in effect, the network seller or a particular sales representative of the network seller makes a supply of property to an individual as consideration for the supply by the individual of a service of acting as a host at an occasion that is organized for the purpose of allowing a sales representative of the network seller or the particular sales representative, as the case may be, to promote, or to arrange for the sale of, select products of the network seller, the individual is deemed not to have made a supply of the service and the service is deemed not to be consideration for a supply. 
  
  ### Notification of refusal
  
  (10) If the Minister notifies a person of a refusal under subsection (5) at any time when the person and a sales representative of the person have made a joint election under subsection (4), the person shall forthwith notify the sales representative of the refusal in a manner satisfactory to the Minister. 
  
  ### Revocation by Minister
  
  (11) The Minister may revoke an approval granted under subsection (5) in respect of a network seller and each of its sales representatives, effective on the first day of a fiscal year of the network seller, if, before that day, the Minister notifies the network seller of the revocation and the day on which it becomes effective and if 
  (a) the network seller fails to comply with any provision of this Part; 
  (b) it can reasonably be expected that the network seller will not be a qualifying network seller throughout the fiscal year; 
  (c) the network seller requests in writing that the Minister revoke the approval; 
  (d) the notice referred to in subsection 242(1) has been given to, or the request referred to in subsection 242(2) has been filed by, the network seller; or 
  (e) it can reasonably be expected that the network seller will not be engaged exclusively in commercial activities throughout the fiscal year. 
  
  ### Deemed revocation
  
  (12) If an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is in effect at any time in a particular fiscal year of the network seller and, at any time during the particular fiscal year, the network seller ceases to be engaged exclusively in commercial activities or the Minister cancels the registration of the network seller, the approval is deemed to be revoked, effective on the first day of the fiscal year of the network seller immediately following the particular fiscal year, unless, on that first day, the network seller is registered under Subdivision D of Division V and it is reasonably expected that the network seller will be engaged exclusively in commercial activities throughout that following fiscal year. 
  
  ### Effect of revocation
  
  (13) If an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is revoked under subsection (11) or (12), the following rules apply: 
  (a) the approval ceases to have effect immediately before the day on which the revocation becomes effective; 
  (b) the network seller shall forthwith notify each of its sales representatives in a manner satisfactory to the Minister of the revocation and the day on which it becomes effective; and 
  (c) a subsequent approval granted under subsection (5) in respect of the network seller and each of its sales representatives shall not become effective before the first day of a fiscal year of the network seller that is at least two years after the day on which the revocation became effective. 
  
  ### Failure to notify on revocation
  
  (14) For the purposes of this Part, a taxable supply (other than a zero-rated supply) of a service made in Canada by a sales representative of a network seller is deemed not to be a supply if 
  (a) the consideration for the taxable supply is a network commission that becomes payable by the network seller to the sales representative at any time after an approval granted under subsection (5) in respect of the network seller and each of its sales representatives ceases to have effect as a consequence of a revocation on the basis of any of paragraphs (11)(a) to (c); 
  (b) the approval could not have been revoked on the basis of paragraph (11)(d) or (e) and would not have otherwise been revoked under subsection (12); 
  (c) at the time the network commission becomes payable, the sales representative 
  (i) has not been notified of the revocation by the network seller, as required under paragraph (13)(b), or by the Minister, and 
  (ii) neither knows, nor ought to know, that the approval ceased to have effect; and 
  (d) an amount has not been charged or collected as or on account of tax in respect of the taxable supply. 
  
  ### Failure to notify on revocation
  
  (15) Subsection (16) applies if the following conditions are satisfied: 
  (a) the consideration for a taxable supply (other than a zero-rated supply) of a service made in Canada by a sales representative of a network seller is a network commission that becomes payable by the network seller to the sales representative at any time after an approval granted under subsection (5) in respect of the network seller and each of its sales representatives ceases to have effect as a consequence of a revocation under subsection (11) or (12); 
  (b) the approval was, or could at any time otherwise have been, revoked on the basis of paragraph (11)(d) or (e) or was, or would at any time otherwise have been, revoked under subsection (12); 
  (c) at the time the network commission becomes payable, the sales representative 
  (i) has not been notified of the revocation by the network seller, as required under paragraph (13)(b), or by the Minister, and 
  (ii) neither knows, nor ought to know, that the approval ceased to have effect; and 
  (d) an amount has not been charged or collected as or on account of tax in respect of the taxable supply. 
  
  ### Failure to notify on revocation
  
  (16) If the conditions described in paragraphs (15)(a) to (d) are satisfied, the following rules apply for the purposes of this Part: 
  (a) section 166 shall not apply in respect of the taxable supply described in paragraph (15)(a); 
  (b) tax that becomes payable or that would, in the absence of section 166, become payable in respect of the taxable supply shall not be included in determining the net tax of the sales representative referred to in paragraph (15)(a); and 
  (c) the consideration for the taxable supply shall not, in determining whether the sales representative is a small supplier, be included in the total referred to in paragraph 148(1)(a) or (2)(a). 
  
  ### Sales aids on revocation
  
  (17) For the purposes of this Part, a taxable supply of a sales aid of a particular sales representative of a network seller made in Canada by way of sale to another sales representative of the network seller is deemed not to be a supply if 
  (a) the consideration for the taxable supply becomes payable at any time after an approval granted under subsection (5) in respect of the network seller and each of its sales representatives ceases to have effect as a consequence of a revocation under subsection (11) or (12); 
  (b) at the time the consideration becomes payable, the particular sales representative 
  (i) has not been notified of the revocation by the network seller, as required under paragraph (13)(b), or by the Minister, and 
  (ii) neither knows, nor ought to know, that the approval ceased to have effect; and 
  (c) an amount has not been charged or collected as or on account of tax in respect of the taxable supply. 
  
  ### Restriction on input tax credits
  
  (18) If 
  (a) a registrant that is a network seller in respect of which an approval granted under subsection (5) is in effect acquires or imports property (other than a select product of the network seller) or a service or brings it into a participating province for supply to a sales representative of the network seller or an individual related to the sales representative, 
  (b) tax becomes payable in respect of the acquisition, importation or bringing in, as the case may be, 
  (c) the property or service is so supplied by the registrant for no consideration or for consideration that is less than the fair market value of the property or service, and 
  (d) the sales representative or individual is not acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the sales representative or individual, as the case may be, the following rules apply: 
  (e) no tax is payable in respect of the supply, and 
  (f) in determining an input tax credit of the registrant, no amount shall be included in respect of tax that becomes payable, or is paid without having become payable, by the registrant in respect of the property or service. 
  
  ### Appropriations for sales representatives
  
  (19) For the purposes of this Part, if a registrant that is a network seller in respect of which an approval granted under subsection (5) is in effect appropriates, at any time, property (other than a select product of the network seller) that was acquired, manufactured or produced, or any service acquired or performed, in the course of commercial activities of the registrant, to or for the benefit of a sales representative of the network seller, or any individual related to the sales representative, that is not acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the sales representative or individual, in any manner (otherwise than by way of supply for consideration equal to the fair market value of the property or service), the registrant shall be deemed 
  (a) to have made a supply of the property or service for consideration paid at that time equal to the fair market value of the property or service at that time; and 
  (b) except where the supply is an exempt supply, to have collected, at that time, tax in respect of the supply calculated on that consideration. 
  
  ### Exception
  
  (20) Subsection (19) does not apply to property or a service appropriated by a registrant if the registrant was not entitled to claim an input tax credit in respect of the property or service because of section 170. 
  
  ### Ceasing to be a registrant
  
  (21) If, at any time when an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is in effect, a sales representative of the network seller ceases to be a registrant, paragraph 171(3)(a) does not apply to sales aids of the sales representative that were supplied to the sales representative by the network seller or another sales representative of the network seller at any time when the approval was in effect. 
  
  ### Non-arm’s length supply
  
  (22) Section 155 does not apply to the supply described in subsection (9) made to an individual acting as a host. 
  
  ## Direct Sellers 
  
  ### Definitions
  
  178.1 In this section and sections 178.2 to 178.5,  
  *applicable provincial tax* means any amount that can reasonably be attributed to a tax, duty or fee imposed under an Act of the legislature of a province and prescribed for the purposes of section 154; (taxe provinciale applicable)   
  *direct seller* means a person who sells exclusive products of the person to independent sales contractors of the person; (démarcheur)   
  *distributor* of a direct seller means a person who is an independent sales contractor of the direct seller and who, in the course of the contractor’s business, sells some or all of the exclusive products of the direct seller acquired by the contractor to other independent sales contractors of the direct seller; (distributeur)   
  *exclusive product* of a direct seller means personal property that is acquired, manufactured or produced by the direct seller for sale, in the ordinary course of a business of the direct seller, to an independent sales contractor of the direct seller, with the expectation that the property would be ultimately sold, otherwise than as used property, by an independent sales contractor of the direct seller, in the ordinary course of a business of the contractor, for consideration to a person other than another independent sales contractor of the direct seller; (produit exclusif)   
  *independent sales contractor* of a direct seller means a person (other than an agent or employee of the direct seller or of a distributor of the direct seller) who  
  (a) has a contractual right to purchase exclusive products of the direct seller from the direct seller or from a distributor of the direct seller, 
  (b) purchases exclusive products of the direct seller for the purpose of resale to other independent sales contractors of the direct seller or to purchasers, and 
  (c) does not solicit, negotiate or enter into contracts for the sale of exclusive products of the direct seller to purchasers primarily at a fixed place of business of the person other than a private residence; ( entrepreneur indépendant)   
  *purchaser* of an exclusive product of a direct seller means a person who is the recipient of a supply of the product and who is not acquiring the product for the purpose of supplying it for consideration; (acheteur)   
  *sales aid* of a person who is a direct seller or an independent sales contractor of a direct seller means  
  (a) property (other than an exclusive product of the direct seller) 
  (i) that is a customized business form or a sample, demonstration kit, promotional or instructional item, catalogue or other personal property acquired, manufactured or produced by the person for sale to assist in the promotion, sale or distribution of exclusive products of the direct seller, and 
  (ii) that is neither sold nor held for sale by the person to an independent sales contractor of the direct seller who is acquiring the property for use as capital property, and 
  (b) the service of shipping or handling, or processing an order for, either property included in paragraph (a) or an exclusive product of the direct seller; ( matériel de promotion)   
  *suggested retail price* at any time of an exclusive product of a direct seller means the lowest price published by the direct seller applicable to supplies of the product made at that time to purchasers, but does not include any amount on account of tax. (prix de vente au détail suggéré)  
  
  ### Application for alternate collection method
  
  178.2 (1) A direct seller who is a registrant may apply, in prescribed form containing prescribed information and filed in prescribed manner, to the Minister to have section 178.3 apply to the direct seller. 
  
  ### Idem
  
  (2) Where a direct seller and a distributor of the direct seller are registrants, they may apply jointly, in prescribed form containing prescribed information and filed in prescribed manner, to the Minister to have section 178.4 apply to the distributor. 
  
  ### Grant of approval
  
  (3) Where the Minister receives an application under subsection (1) from a direct seller, the Minister may approve in writing the application of section 178.3 to the direct seller, and the Minister shall, in writing, notify the direct seller of the approval and the day on which it becomes effective. 
  
  ### Idem
  
  (4) Where the Minister receives a joint application under subsection (2) from a direct seller and a distributor of the direct seller, the Minister may approve in writing the application of section 178.4 to the distributor, and the Minister shall, in writing, notify both the distributor and the direct seller of the approval and the day on which it becomes effective. 
  
  ### Deemed approval
  
  (5) Where, at a time when an approval for the application of section 178.3 to a direct seller would not, but for this subsection, be in effect, an approval granted under subsection (4) in respect of a distributor of the direct seller becomes effective and no other approval under that subsection in respect of a distributor of the direct seller is in effect at that time, the direct seller shall be deemed, for the purposes of this section and sections 178.3 to 178.5, to have been granted an approval under subsection (3) that becomes effective immediately before that time. 
  
  ### Revocation of approval
  
  (6) The Minister may, effective on any day, revoke an approval granted under subsection (3) in respect of a direct seller where an approval granted under subsection (4) in respect of a distributor of the direct seller is not in effect on that day and 
  (a) the direct seller fails to comply with any provision of this Part, or 
  (b) except in the case of an approval deemed under subsection (5) to have been granted, the direct seller requests, in writing, the Minister to revoke the approval, and where the Minister revokes the approval, the Minister shall, in writing, notify the direct seller of the revocation and the day on which it becomes effective. 
  
  ### Idem
  
  (7) The Minister may revoke an approval granted under subsection (4) in respect of a distributor of a direct seller where the distributor fails to comply with any provision of this Part or the distributor and the direct seller, in writing, jointly request the Minister to revoke the approval, and the Minister shall, in writing, notify both the distributor and the direct seller of the revocation and the day on which it becomes effective. 
  
  ### Cessation
  
  (8) An approval granted under subsection (3) in respect of a direct seller ceases to have effect on the earliest of 
  (a) the day the direct seller ceases to be a registrant, 
  (b) the day an approval granted under subsection (4) in respect of any distributor of the direct seller ceases to have effect and there is no other approval granted under that subsection in respect of any distributor of the direct seller in effect, and 
  (c) the day a revocation of the approval under subsection (6) becomes effective. 
  
  ### Idem
  
  (9) An approval granted under subsection (4) on the joint application of a direct seller and a distributor of the direct seller ceases to have effect on the earliest of 
  (a) the day the direct seller ceases to be a registrant, 
  (b) the day the distributor ceases to be a registrant, and 
  (c) the day a revocation of the approval under subsection (7) becomes effective. 
  
  ### Effect of approval for direct seller
  
  178.3 (1) For the purposes of this Part, where at any time when an approval of the Minister for the application of this section to a direct seller is in effect, the direct seller makes in Canada a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller who is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect at that time or becomes effective immediately after that time, the following rules apply: 
  (a) the supply shall be deemed to have been made for consideration 
  (i) that becomes due, and is paid, at the particular time that is the earliest time at which any consideration for the supply becomes due or is paid, and 
  (ii) that is equal to the suggested retail price of the product at the time the supply is made; 
  (b) tax is deemed not to be payable by the contractor in respect of the supply; 
  (c) the contractor is not entitled to any rebate under section 261 in respect of the supply; and 
  (d) in determining the net tax of the direct seller for the reporting period of the direct seller that includes the particular time, there shall be added an amount equal to tax calculated on the suggested retail price of the product at the time the supply is made. 
  
  ### Idem
  
  (2) Where 
  (a) at any time when an approval of the Minister for the application of this section to a direct seller is in effect, a particular independent sales contractor of the direct seller makes in Canada a particular taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller, 
  (b) the particular contractor is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect at that time or becomes effective immediately after that time, and 
  (c) subsection (1) applied to a supply of the product made at an earlier time or subsection 178.5(1) applied to the product at an earlier time, the following rules apply: 
  (d) if the recipient of the particular supply is another independent sales contractor of the direct seller, the particular supply shall be deemed, for the purposes of this Part except section 178.1 and this section, not to have been made by the particular contractor and not to have been received by the other contractor, and 
  (e) if the recipient of the particular supply is any person (other than the direct seller and another independent sales contractor of the direct seller), 
  (i) the particular supply is deemed, for the purposes of this Part except section 178.1 and subsections (4) to (6) and 178.5(7), to be a taxable supply made by the direct seller, and not by the particular contractor, for consideration equal to the lesser of the actual consideration for the supply and the suggested retail price of the product at the time the particular supply is made, 
  (ii) any tax in respect of the particular supply that is collected by the particular contractor shall be deemed to have been collected on behalf of the direct seller, and 
  (iii) tax in respect of the particular supply shall not be included in determining the net tax of the direct seller for any reporting period. 
  
  ### Adjustment to direct seller’s net tax
  
  (3) For the purposes of this Part, where a direct seller has made a supply of an exclusive product of the direct seller in circumstances in which an amount was required under paragraph (1)(d) to be added in determining the net tax of the direct seller and an independent sales contractor of the direct seller subsequently supplies the product to the direct seller in a particular reporting period of the direct seller, the contractor is deemed not to have so supplied the product and the amount may be deducted, in determining the net tax of the direct seller for the particular reporting period or a subsequent reporting period, in a return under Division V filed by the direct seller within four years after the day on or before which the return under Division V for the particular reporting period is required to be filed. 
  
  ### Idem
  
  (4) Where 
  (a) at a particular time a direct seller makes a supply of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the direct seller, 
  (b) after March 1993 a particular independent sales contractor of the direct seller 
  (i) makes a supply of the product that is 
  (A) a zero-rated supply, 
  (B) a supply made outside Canada, or 
  (C) a supply in respect of which the recipient is not required to pay tax because of an Act of Parliament, 
  (ii) makes a supply of the product to a person other than an independent sales contractor of the direct seller for consideration 
  (A) that is less than the suggested retail price of the product at the particular time and more than nominal, and 
  (B) on which was calculated tax that was paid by the person, or 
  (iii) makes a supply of the product to a person other than an independent sales contractor of the direct seller for no consideration or for nominal consideration or appropriates the product for the consumption, use or enjoyment of the particular contractor, and 
  (c) the direct seller pays to, or credits in favour of, the particular contractor an amount in respect of the product equal to 
  (i) where subparagraph (b)(i) applies, tax calculated on the suggested retail price of the product at the particular time, and 
  (ii) where subparagraph (b)(ii) or (iii) applies, the amount determined by the formula is the tax calculated on the suggested retail price of the product at the particular time, and is 
  (A) where subparagraph (b) (ii) applies, tax calculated on the consideration for the supply of the product by the particular contractor, and 
  (B) where subparagraph (b)(iii) applies, tax calculated on the consideration for the supply of the product to the particular contractor determined without reference to paragraph (1)(a), the direct seller may deduct the amount determined under paragraph (c), in determining the net tax for the particular reporting period of the direct seller in which the payment or credit is given or a subsequent reporting period, in a return under Division V filed by the direct seller within four years after the day on or before which the return under Division V for the particular reporting period is required to be filed. 
  
  ### Adjustment where supply not in participating province
  
  (5) Where 
  (a) at a particular time a direct seller makes a supply in a participating province of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the direct seller, 
  (b) included in the amount required under paragraph (1)(d) to be added in determining the net tax of the direct seller is tax payable under subsection 165(2) in respect of the supply, 
  (c) a particular independent sales contractor of the direct seller makes a supply of the product outside the participating provinces, and 
  (d) the direct seller pays to, or credits in favour of, the particular contractor an amount in respect of the product equal to the amount of the tax payable under subsection 165(2) calculated on the suggested retail price of the product at the particular time, the direct seller may deduct the amount determined under paragraph (d), in determining the net tax for the particular reporting period of the direct seller in which the payment or credit is given or a subsequent reporting period, in a return under Division V filed by the direct seller within four years after the day on or before which the return under Division V for the particular reporting period is required to be filed. 
  
  ### Adjustment where supply is in participating province
  
  (6) Where 
  (a) a direct seller makes a supply outside the participating provinces of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the direct seller, 
  (b) no tax under subsection 165(2) in respect of the supply is included in the amount required under paragraph (1)(d) to be added in determining the net tax of the direct seller, and 
  (c) an independent sales contractor of the direct seller makes at a particular time a supply of the product in a participating province, in determining the net tax of the direct seller for the reporting period of the direct seller that includes the particular time, there shall be added an amount equal to the tax that would be payable under subsection 165(2) in respect of the supply, calculated on the suggested retail price of the product at the particular time, if the supply by the direct seller were made in that participating province at the particular time. 
  
  ### Adjustment in respect of participating provinces
  
  (6.1) In determining the net tax of a direct seller for a reporting period of the direct seller that includes a prescribed time, the direct seller shall add or may deduct, as the case may require, an amount determined in prescribed manner if 
  (a) the direct seller makes a supply in a participating province of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the direct seller; 
  (b) tax payable under subsection 165(2) in respect of the supply is included in the amount required under paragraph (1)(d) to be added in determining the net tax of the direct seller; 
  (c) an independent sales contractor of the direct seller makes a supply of the exclusive product in another participating province; and 
  (d) prescribed conditions, if any, are satisfied. 
  
  ### Bad debt on sale by contractor
  
  (7) If 
  (a) a direct seller has made a supply of an exclusive product of the direct seller in circumstances in which an amount was required under paragraph (1)(d) to be added in determining the net tax of the direct seller, 
  (b) a particular independent sales contractor of the direct seller has or would have, but for paragraph (2)(e), also made a supply of the product to a person with whom the particular contractor was dealing at arm’s length (other than the direct seller and another independent sales contractor of the direct seller), 
  (c) the direct seller has obtained evidence satisfactory to the Minister that the consideration and the tax payable in respect of the supply by the particular contractor have become in whole or in part a bad debt and that the amount of the bad debt has, at a particular time, been written off in the particular contractor’s books of account, and 
  (d) the direct seller pays to, or credits in favour of, the particular contractor an amount in respect of the product equal to the amount determined by the formula is the tax payable in respect of the supply by the particular contractor, is the total of the consideration and tax, and any applicable provincial tax in respect of that supply, remaining unpaid and written off at the particular time as a bad debt, and is the total of the consideration and tax, and applicable provincial tax, payable in respect of that supply, the direct seller may, in determining the net tax for the particular reporting period of the direct seller in which the payment or credit is given or for a subsequent reporting period, deduct the amount paid or credited in a return under Division V filed by the direct seller within four years after the day on or before which the return for the particular reporting period is required to be filed. 
  
  ### Recovery of bad debt
  
  (8) If all or part of a bad debt in respect of which a direct seller has made a deduction under subsection (7) is recovered, the direct seller shall, in determining the net tax for the direct seller’s reporting period in which the bad debt or that part is recovered, add the amount determined by the formula is the amount recovered; is the tax payable in respect of the supply to which the bad debt relates; and is the total of the consideration and tax, and any applicable provincial tax, payable in respect of that supply. 
  
  ### Effect of approval for distributor
  
  178.4 (1) For the purposes of this Part, where at any time when an approval of the Minister for the application of this section to a distributor of a direct seller is in effect, the distributor makes in Canada a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller who is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect at that time or becomes effective immediately after that time, the following rules apply: 
  (a) the supply shall be deemed to have been made for consideration 
  (i) that becomes due, and is paid, at the particular time that is the earliest time at which any consideration for the supply becomes due or is paid, and 
  (ii) that is equal to the suggested retail price of the product at the time the supply is made; 
  (b) tax is deemed not to be payable by the contractor in respect of the supply; 
  (c) the contractor is not entitled to any rebate under section 261 in respect of the supply; and 
  (d) in determining the net tax of the distributor for the reporting period of the distributor that includes the particular time, there shall be added an amount equal to tax calculated on the suggested retail price of the product at the time the supply is made. 
  
  ### Idem
  
  (2) Where 
  (a) at any time when an approval of the Minister for the application of this section to a distributor of a direct seller is in effect, a particular independent sales contractor of the direct seller (other than the distributor) makes in Canada a particular taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller, and 
  (b) subsection (1) applied to a supply of the product made at an earlier time by an independent sales contractor of the direct seller or subsection 178.5(2) applied, at an earlier time, to the product, the following rules apply: 
  (c) if the recipient of the particular supply is a person who is an independent sales contractor of the direct seller (other than the distributor), the particular supply shall be deemed, for the purposes of this Part except section 178.1 and this section, not to have been made by the particular contractor and not to have been received by the person, and 
  (d) if the recipient of the particular supply is a person (other than the distributor and another independent sales contractor of the direct seller), 
  (i) the particular supply is deemed, for the purposes of this Part except section 178.1 and subsections (4) to (6) and 178.5(7), to be a taxable supply made by the distributor, and not by the particular contractor, for consideration equal to the lesser of the actual consideration for the supply and the suggested retail price of the product at the time the particular supply is made, 
  (ii) any tax in respect of the particular supply that is collected by the particular contractor shall be deemed to have been collected on behalf of the distributor, and 
  (iii) tax in respect of the particular supply shall not be included in determining the net tax of the distributor for any reporting period. 
  
  ### Adjustment to distributor’s net tax
  
  (3) For the purposes of this Part, where a distributor of a direct seller has made a supply of an exclusive product of the direct seller in circumstances in which an amount was required under paragraph (1)(d) to be added in determining the net tax of the distributor and another independent sales contractor of the direct seller subsequently supplies the product to the distributor in a particular reporting period of the distributor, the other contractor is deemed not to have so supplied the product and the amount may be deducted, in determining the net tax of the distributor for the particular reporting period or a subsequent reporting period, in a return under Division V filed by the distributor within four years after the day on or before which the return under Division V for the particular reporting period is required to be filed. 
  
  ### Idem
  
  (4) Where 
  (a) at a particular time a distributor of a direct seller makes a supply of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the distributor, 
  (b) after March 1993 a particular independent sales contractor of the direct seller (other than the distributor) 
  (i) makes a supply of the product that is 
  (A) a zero-rated supply, 
  (B) a supply made outside Canada, or 
  (C) a supply in respect of which the recipient is not required to pay tax because of an Act of Parliament, 
  (ii) makes a supply of the product to a person other than an independent sales contractor of the direct seller for consideration 
  (A) that is less than the suggested retail price of the product at the particular time and more than nominal, and 
  (B) on which was calculated tax that was paid by the person, or 
  (iii) makes a supply of the product to a person other than an independent sales contractor of the direct seller for no consideration or for nominal consideration or appropriates the product for the consumption, use or enjoyment of the particular contractor, and 
  (c) the distributor pays to, or credits in favour of, the particular contractor an amount in respect of the product equal to 
  (i) where subparagraph (b)(i) applies, tax calculated on the suggested retail price of the product at the particular time, and 
  (ii) where subparagraph (b)(ii) or (iii) applies, the amount determined by the formula is the tax calculated on the suggested retail price of the product at the particular time, and is 
  (A) where subparagraph (b)(ii) applies, tax calculated on the consideration for the supply of the product by the particular contractor, and 
  (B) where subparagraph (b)(iii) applies, tax calculated on the consideration for the supply of the product to the particular contractor determined without reference to paragraph (1)(a), the distributor may deduct the amount determined under paragraph (c), in determining the net tax for the particular reporting period of the distributor in which the payment or credit is given or a subsequent reporting period, in a return under Division V filed by the distributor within four years after the day on or before which the return under Division V for the particular reporting period is required to be filed. 
  
  ### Adjustment where supply not in participating province
  
  (5) Where 
  (a) at a particular time a distributor of a direct seller makes a supply in a participating province of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the distributor, 
  (b) included in the amount required under paragraph (1)(d) to be added in determining the net tax of the distributor is tax payable under subsection 165(2) in respect of the supply, 
  (c) a particular independent sales contractor of the direct seller (other than the distributor) makes a supply of the product outside the participating provinces, and 
  (d) the distributor pays to, or credits in favour of, the particular contractor an amount in respect of the product equal to the amount of the tax payable under subsection 165(2) calculated on the suggested retail price of the product at the particular time, the distributor may deduct the amount determined under paragraph (d) in determining the net tax for the particular reporting period of the distributor in which the payment or credit is given or a subsequent reporting period, in a return under Division V filed by the distributor within four years after the day on or before which the return under Division V for the particular reporting period is required to be filed. 
  
  ### Adjustment where supply is in participating province
  
  (6) Where 
  (a) a distributor of a direct seller makes a supply outside the participating provinces of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the distributor, 
  (b) no tax under subsection 165(2) in respect of the supply is included in the amount required under paragraph (1)(d) to be added in determining the net tax of the distributor, and 
  (c) a particular independent sales contractor of the direct seller (other than the distributor) makes at a particular time a supply of the product in a participating province, in determining the net tax of the distributor for the reporting period of the distributor that includes the particular time, there shall be added an amount equal to the tax that would be payable under subsection 165(2) in respect of the supply, calculated on the suggested retail price of the product at the particular time, if the supply by the distributor were made in that participating province at the particular time. 
  
  ### Adjustment in respect of participating provinces
  
  (6.1) In determining the net tax of a distributor of a direct seller for a reporting period of the distributor that includes a prescribed time, the distributor shall add or may deduct, as the case may require, an amount determined in prescribed manner if 
  (a) the distributor makes a supply of an exclusive product of the direct seller in a participating province in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the distributor; 
  (b) tax payable under subsection 165(2) in respect of the supply is included in the amount required under paragraph (1)(d) to be added in determining the net tax of the distributor; 
  (c) a particular independent sales contractor of the direct seller (other than the distributor) makes a supply of the exclusive product in another participating province; and 
  (d) prescribed conditions, if any, are satisfied. 
  
  ### Bad debt on sale by contractor
  
  (7) If 
  (a) a distributor of a direct seller has made a supply of an exclusive product of the direct seller in circumstances in which an amount was required under paragraph (1)(d) to be added in determining the net tax of the distributor, 
  (b) a particular independent sales contractor of the direct seller (other than the distributor) has or would have, but for paragraph (2)(d), also made a supply of the product to a person with whom the particular contractor was dealing at arm’s length (other than the direct seller, distributor and another independent sales contractor of the direct seller), 
  (c) the distributor has obtained evidence satisfactory to the Minister that the consideration and the tax payable in respect of the supply by the particular contractor have become in whole or in part a bad debt and that the amount of the bad debt has, at a particular time, been written off in the particular contractor’s books of account, and 
  (d) the distributor pays to, or credits in favour of, the particular contractor an amount in respect of the product equal to the amount determined by the formula is the tax payable in respect of the supply by the particular contractor, is the total of the consideration and tax, and any applicable provincial tax, in respect of that supply remaining unpaid and written off at the particular time as a bad debt, and is the total of the consideration and tax, and applicable provincial tax, payable in respect of that supply, the distributor may, in determining the net tax for the particular reporting period of the distributor in which the payment or credit is given or for a subsequent reporting period, deduct the amount paid or credited in a return under Division V filed by the distributor within four years after the day on or before which the return for the particular reporting period is required to be filed. 
  
  ### Recovery of bad debt
  
  (8) If all or part of a bad debt in respect of which a distributor of a direct seller has made a deduction under subsection (7) is recovered, the distributor shall, in determining the net tax for the distributor’s reporting period in which the bad debt or that part is recovered, add the amount determined by the formula is the amount recovered; is the tax payable in respect of the supply to which the bad debt relates; and is the total of the consideration and tax, and any applicable provincial tax, payable in respect of that supply. 
  
  ### Products held at time of approval
  
  178.5 (1) Where 
  (a) an approval granted under subsection 178.2(3) in respect of a direct seller becomes effective at any time after January 1, 1991, 
  (b) a registrant who is an independent sales contractor of the direct seller has, at that time, in inventory an exclusive product of the direct seller, and 
  (c) the registrant is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect at that time or becomes effective immediately after that time, the registrant shall be deemed, for the purposes of this Part except sections 148 and 249, 
  (d) to have made, immediately before that time, a supply of the product for consideration, that becomes due and is paid immediately before that time, equal to the suggested retail price of the product at that time, and 
  (e) to have collected, immediately before that time, tax in respect of the supply calculated on that consideration. 
  
  ### Products held at time of revocation
  
  (2) Where, at the time an approval granted under subsection 178.2(4) in respect of a distributor of a direct seller ceases to have effect, the distributor has in inventory an exclusive product of the direct seller and an approval granted under subsection 178.2(3) in respect of the direct seller does not cease to have effect at that time, the distributor shall be deemed, for the purposes of this Part except sections 148 and 249, 
  (a) to have made, immediately before that time, a supply of the product for consideration, that becomes due and is paid immediately before that time, equal to the suggested retail price of the product at that time; and 
  (b) to have collected, immediately before that time, tax in respect of the supply calculated on that consideration. 
  
  ### Idem
  
  (3) For the purposes of this Part, where an approval granted under subsection 178.2(4) in respect of a distributor of a direct seller ceases to have effect at the same time as an approval granted under subsection 178.2(3) in respect of the direct seller ceases to have effect, each independent sales contractor of the direct seller, other than a distributor in respect of whom an approval granted under subsection 178.2(4) ceases to have effect at that time, shall be deemed 
  (a) to have received, immediately after that time, a supply of each exclusive product of the direct seller that the contractor has in inventory at that time for consideration, that becomes due and is paid immediately after that time, equal to the suggested retail price of the product at that time; and 
  (b) to have paid, immediately after that time, tax in respect of the supply calculated on that consideration. 
  
  ### Idem
  
  (4) For the purposes of this Part, where an approval granted under subsection 178.2(3) in respect of a direct seller ceases, at any time after March 1993, to have effect and subsection (3) does not apply, each independent sales contractor of the direct seller shall be deemed 
  (a) to have received, immediately after that time, a supply of each exclusive product of the direct seller that the contractor has in inventory at that time for consideration, that becomes due and is paid immediately after that time, equal to the suggested retail price of the product at that time; and 
  (b) to have paid, immediately after that time, tax in respect of the supply calculated on that consideration. 
  
  ### Sales aids
  
  (5) For the purposes of this Part, where at any time when an approval of the Minister for the application of section 178.3 to a direct seller is in effect, the direct seller or an independent sales contractor of the direct seller makes in Canada a taxable supply by way of sale of a sales aid of the direct seller or of the contractor, as the case may be, to an independent sales contractor of the direct seller, the supply shall be deemed not to be a supply. 
  
  ### Bonus payments
  
  (6) For the purposes of this Part, where, at any time after March 1993 when an approval of the Minister for the application of section 178.3 to a direct seller is in effect, an amount is paid or payable by the direct seller or an independent sales contractor of the direct seller to an independent sales contractor of the direct seller because of the volume of purchases or sales of exclusive products of the direct seller or of sales aids and otherwise than as consideration for a supply of such a product or sales aid, the amount shall be deemed not to be consideration for a supply. 
  
  ### Host gifts
  
  (7) For the purposes of this Part, where, at any time after March 1993 when an approval of the Minister for the application of section 178.3 to a direct seller is in effect, an independent sales contractor of the direct seller, who is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect at that time or becomes effective immediately after that time, makes a supply of property to a person as consideration for the supply by the person of a service of acting as a host at an occasion that is organized for the purpose of the promotion or distribution by the contractor of exclusive products of the direct seller, the person shall be deemed not to have made a supply of the service and the service shall be deemed not to be consideration for a supply. 
  
  ### Restriction on input tax credits
  
  (8) Where 
  (a) after March, 1993 a registrant, who is a direct seller in respect of whom an approval granted under subsection 178.2(3) is in effect or who is a distributor of such a direct seller, acquires or imports property (other than an exclusive product of the direct seller) or a service or brings it into a participating province for supply to an independent sales contractor of the direct seller or an individual related thereto, 
  (b) the property or service is so supplied by the registrant for no consideration or for consideration that is less than the fair market value of the property or service, and 
  (c) the contractor or individual is not acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the contractor or individual, as the case may be, the following rules apply: 
  (d) no tax is payable in respect of the supply, and 
  (e) in determining an input tax credit of the registrant, no amount shall be included in respect of tax that becomes payable, or is paid without having become payable, by the registrant in respect of the property or service. 
  
  ### Appropriations for contractors
  
  (9) For the purposes of this Part, where a registrant who is a direct seller in respect of whom an approval granted under subsection 178.2(3) is in effect or who is a distributor of such a direct seller appropriates, at any time after March 1993, property (other than an exclusive product of the direct seller) that was acquired, manufactured or produced, or any service acquired or performed, in the course of commercial activities of the registrant, to or for the benefit of an independent sales contractor of the direct seller, or any individual related thereto, who is not acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the contractor or individual, in any manner whatever (otherwise than by way of supply for consideration equal to the fair market value of the property or service), the registrant shall be deemed 
  (a) to have made a supply of the property or service for consideration paid at that time equal to the fair market value of the property or service at that time; and 
  (b) except where the supply is an exempt supply, to have collected, at that time, tax in respect of the supply calculated on that consideration. 
  
  ### Exception
  
  (10) Subsection (9) does not apply to property or a service appropriated by a registrant where the registrant was not entitled to claim an input tax credit in respect of the property or service because of section 170. 
  
  ### Ceasing to be registrant
  
  (11) Where, at any time after March 1993 when an approval granted under subsection 178.2(3) in respect of a direct seller is in effect, an independent sales contractor of the direct seller ceases to be a registrant, paragraph 171(3)(a) does not apply to sales aids of the contractor that were supplied to the contractor by the direct seller or another independent sales contractor of the direct seller at any time when the approval was in effect. 
  
  ### Non-arm’s length supply
  
  (12) Section 155 does not apply to a supply described in subparagraph 178.3(4)(b)(ii) or (iii) or 178.4(4)(b)(ii) or (iii) or subsection (7). 
  
  ## Buying Groups 
  
  ### Definitions
  
  178.6 (1) In this section,  
  *original supplier* of tangible personal property or a service means a person who makes a taxable supply of the property or service to another person who, in turn, supplies the property or service by way of a pass-through supply; (fournisseur initial)   
  *pass-through supply* means a taxable supply of tangible personal property or a service made by a person for consideration that is equal to the consideration paid or payable by the person to the supplier who supplied the property or service to the person; (fourniture intermédiaire)   
  *ultimate recipient* means a recipient of a pass-through supply. (dernier acquéreur)  
  
  ### Application for buyer designation
  
  (2) Where 
  (a) all or substantially all of the supplies of property and services made by a particular person in the ordinary course of the particular person’s business are pass-through supplies, 
  (b) in respect of each pass-through supply of tangible personal property or a service made by the particular person, the original supplier of the property or service causes physical possession of the property to be transferred to, or renders the service to, the ultimate recipient, or to another person on behalf of the ultimate recipient, and not to the particular person, and 
  (c) in respect of each pass-through supply of tangible personal property or a service made by the particular person, the ultimate recipient pays, on behalf of the particular person, to the original supplier of the property or service, the amount payable by the particular person to the original supplier as consideration for the property or service, the particular person may apply to the Minister, in prescribed form containing prescribed information and filed in prescribed manner, to be designated as a buyer. 
  
  ### Designation as buyer
  
  (3) Where the Minister receives an application of a person under subsection (2), the Minister may, subject to such conditions as the Minister may at any time impose, designate the person as a buyer and notify the person in writing of the designation and the day it becomes effective. 
  
  ### Revocation of designation
  
  (4) The Minister may revoke a designation of a person made under subsection (3) 
  (a) on application of the person, or 
  (b) where the person fails to comply with any condition imposed in respect of the designation, and, where the designation is revoked, the Minister shall notify the person in writing of the day the designation ceases to be effective. 
  
  ### Buying group method
  
  (5) Where a person makes a pass-through supply of tangible personal property or a service at a time when a designation of the person as a buyer under subsection (3) is in effect, for the purposes of this Part (other than section 148, this section and Subdivision E of Division V), the following rules apply: 
  (a) the supply of the property or service by the original supplier of the property or service shall be deemed to have been made to the ultimate recipient and not to the person; 
  (b) the person shall be deemed not to have received a supply of the property or service from the original supplier nor to have supplied the property or service to the ultimate recipient; 
  (c) the consideration payable for, and the tax payable in respect of, the supply by the original supplier of the property or service shall be deemed to be payable by the ultimate recipient and any amount paid in respect of the consideration or tax shall be deemed to have been paid by the ultimate recipient; 
  (d) despite paragraph (c), the person and the ultimate recipient are jointly and severally, or solidarily, liable for the payment of the tax in respect of the supply made by the original supplier; and 
  (e) if the amount charged or collected by the original supplier of the property or service as or on account of tax under Division II in respect of the supply exceeds the tax that was collectible under that Division in respect of the supply, or if the amount of tax collectible under that Division in respect of the supply is reduced because of a reduction in the consideration for the supply, and the original supplier issues to, or receives from, the person a credit note or a debit note in respect of the supply, the person shall be deemed to have received or issued the note on behalf of the ultimate recipient. 
  
  ## Designated Charities 
  
  ### Meaning of 
  *specified service* 
  
  178.7 (1) For the purposes of this section, 
  *specified service* means any service, other than a service  
  (a) that is 
  (i) the care, employment or training for employment of individuals with disabilities, 
  (ii) an employment placement service rendered to such individuals, or 
  (iii) the provision of instruction to assist such individuals in securing employment; and 
  (b) the recipient of which is a public sector body or a board, commission or other body established by a government or a municipality. 
  
  ### Charity supplying specified service
  
  (2) A charity may apply to the Minister, in prescribed form containing prescribed information, to be designated for the purposes of paragraph 1(d.1) of Part V.1 of Schedule V if 
  (a) one of the main purposes of the charity is the provision of employment, training for employment or employment placement services for individuals with disabilities or the provision of instructional services to assist such individuals in securing employment; and 
  (b) the charity supplies, on a regular basis, specified services that are performed, in whole or in part, by individuals with disabilities. 
  
  ### Designation by the Minister
  
  (3) On application by a charity under subsection (2), the Minister may, by notice in writing, designate the charity for the purposes of paragraph 1(d.1) of Part V.1 of Schedule V, effective on the first day of a reporting period specified in the notice, if 
  (a) the Minister is satisfied that the conditions described in paragraphs (2)(a) and (b) are met; and 
  (b) a revocation under subsection (4) pursuant to a request made by the charity has not become effective in the 365-day period ending immediately before that day. 
  
  ### Revocation of designation
  
  (4) The Minister may, by notice in writing, revoke a designation of a charity, effective on the first day of a reporting period specified in the notice, if 
  (a) the Minister is satisfied that the conditions described in paragraphs (2)(a) and (b) are no longer met; or 
  (b) the charity makes a request in writing to the Minister that the designation be revoked and the designation had not become effective in the 365-day period ending immediately before that day. 
  
  ## Import Arrangements 
  
  ### Definition of 
  *specified supply* 
  
  178.8 (1) In this section, 
  *specified supply* means a supply of goods that  
  (a) are, at any time after the supply is made, imported; or 
  (b) have been imported in circumstances in which section 144 deems the supply to have been made outside Canada. 
  
  ### Deemed importer of goods
  
  (2) Subject to subsections (4) and (7), if a recipient of a specified supply of goods made outside Canada does not, at any time before the release of the goods, supply the goods outside Canada and the recipient or any other person imported the goods for consumption, use or supply by the recipient (in this section referred to as the “constructive importer”), the constructive importer is deemed to have so imported the goods, and any amount paid or payable as or on account of tax on the goods under Division III in respect of the importation is deemed to have been paid or payable, as the case may be, by or on behalf of the constructive importer and not by or on behalf of any other person. 
  
  ### Agreement to treat supply as made in Canada
  
  (3) If a registrant makes a specified supply of goods outside Canada that is a taxable supply, the recipient of the supply is the constructive importer of the goods and an amount is, in the absence of subsection (2), paid or payable by or on behalf of the registrant as or on account of tax on the goods under Division III in respect of the importation, the registrant and the recipient may at any time agree, in prescribed form containing prescribed information, to have subsection (4) apply in respect of the supply and importation. 
  
  ### Effect of agreement
  
  (4) If a registrant and the constructive importer of goods have entered into an agreement under subsection (3) in respect of the supply and importation of the goods and the constructive importer has not entered into an agreement under subsection (5) in respect of any amount paid as or on account of tax on the goods under Division III in respect of the importation, 
  (a) the supply is deemed to have been made in Canada 
  (i) in the case of a constructive importer who is an individual to whom the goods are shipped to a destination in Canada by another person, at the address to which the goods are sent by mail or courier by the shipper or at the destination that is specified in the contract for carriage of the goods or at which the shipper has directed a common carrier or consignee retained on behalf of the constructive importer to transfer physical possession of the goods, and 
  (ii) in any other case, at the place at which the goods are released; 
  (b) except if subsection 155(1) applies, the consideration for the supply is deemed to be equal to the amount otherwise determined for the purposes of this Part plus any amount (in this paragraph referred to as “additional consideration”) not otherwise included in that consideration that the constructive importer at a particular time pays or is required to pay to the registrant in respect of duties or taxes payable on the goods under this Act (other than this Part), the Customs Tariff, the Excise Act, 2001, the Special Import Measures Act or any other law relating to customs and, despite section 168, the tax in respect of the supply that is calculated on the additional consideration becomes payable at the particular time;  
  (c) the registrant is deemed to have imported the goods for the purpose of supply in the course of commercial activities of the registrant; and 
  (d) any amount paid or payable as or on account of tax on the goods under Division III in respect of the importation is deemed to have been paid or payable, as the case may be, by or on behalf of the registrant and not by or on behalf of any other person. 
  
  ### Agreement regarding rebates, abatements and refunds
  
  (5) If the constructive importer of goods is deemed under subsection (2) to be the person by whom the goods are imported but another person (in this section referred to as the “specified importer”) was identified, for the purposes of the Customs Act, as the importer of the goods when the goods were accounted for under section 32 of that Act and, in the absence of subsection (2), paid an amount as or on account of tax on the goods under Division III, the constructive importer and the specified importer may agree in writing to have subsection (7) apply in respect of that amount.  
  
  ### Restriction
  
  (6) Subsection (5) does not apply to any amount in respect of which, because of section 263.01, the constructive importer of goods would not be entitled to a rebate referred to in that section if the constructive importer paid the amount as or on account of tax on the goods under Division III. 
  
  ### Effect of agreement
  
  (7) If a constructive importer of goods and a specified importer have entered into an agreement under subsection (5) to have this subsection apply in respect of an amount paid as or on account of tax on the goods under Division III and the constructive importer has not entered into an agreement under subsection (3) with the supplier of the goods in respect of the importation, 
  (a) subsections 215.1(2) and (3) and 216(6) and (7) apply as if the specified importer and not the constructive importer were the person by whom the goods were imported and the amount was paid, but only if, within a reasonable time after any rebate under subsection 215.1(2) or 216(6) in respect of the amount is granted or any abatement or refund is, because of subsection 215.1(3) or 216(7), granted in respect of the amount, the specified importer issues to the constructive importer a note (in this subsection referred to as a “tax adjustment note”), in prescribed form containing prescribed information, indicating the amount of the rebate, abatement or refund; 
  (b) in applying subsection 215.1(2) or (3) in respect of the amount in accordance with paragraph (a), that subsection shall be read without reference to subparagraphs (a)(i) and (ii), and paragraph (c), of that subsection; and 
  (c) if the constructive importer receives a tax adjustment note indicating the amount of a rebate, abatement or refund, 
  (i) the amount that is rebated, abated or refunded is deemed to have been payable as tax and to have been recovered by the constructive importer and, except for the purposes of section 232, the tax adjustment note is deemed to be a credit note referred to in that section received by the constructive importer for the amount of the rebate, abatement or refund, 
  (ii) the amount of the rebate, abatement or refund shall be added in determining the net tax of the constructive importer for the reporting period in which the tax adjustment note is received, to the extent that the amount has been included in determining an input tax credit claimed by the constructive importer in a return filed for a preceding reporting period or the constructive importer is or was entitled to be compensated under a warranty for loss suffered because of any of the circumstances that gave rise to the rebate, abatement or refund by receiving a supply of replacement parts, or replacement property, that are goods included in section 5 of Schedule VII, and 
  (iii) if the amount rebated, abated or refunded has been included in determining a rebate under Division VI paid to, or applied to a liability of, the constructive importer before the particular day on which the tax adjustment note is received and the rebate so paid or applied exceeds the rebate under that Division to which the constructive importer would have been entitled if the amount rebated, abated or refunded had not been paid, the constructive importer shall pay to the Receiver General under section 264 the excess as if it were an excess amount of the rebate under that Division paid to the constructive importer 
  (A) if the constructive importer is a registrant, on the day on or before which the constructive importer’s return for the reporting period that includes the particular day is required to be filed, and 
  (B) in any other case, on the last day of the calendar month immediately following the calendar month that includes the particular day. 
  
  ### Application
  
  (8) Subject to subsection (9), subsections (2) to (7) apply for the purposes of this Part other than 
  (a) Division III except subsections 215.1(2) and (3) and 216(6) and (7); 
  (b) sections 220.07, 236.3 and 273.1; 
  (c) Schedule VII; and 
  (d) the Non-Taxable Imported Goods (GST/HST) Regulations and the Value of Imported Goods (GST/HST) Regulations.  
  
  ### Application
  
  (9) Subsections (2) to (7) do not apply in respect of goods imported in circumstances in which subsection 169(2) applies or in which section 180 or subparagraph 211.23(1)(c)(i) deems a person to have paid tax in respect of a supply of property equal to the tax under Division III in respect of the importation of goods. 
  
  ### Limitation period where retroactive agreement
  
  (10) If a registrant and a constructive importer enter into an agreement under subsection (3) in respect of a previous importation of goods, the Minister has, despite section 298, until the day that is four years after the day on which the agreement under subsection (3) is entered into to make any assessment, reassessment or additional assessment for the purpose of taking into account an amount payable or remittable by the registrant or the constructive importer as a result of the application of subsection (4). 
  
  ## Non-resident 
  
  ### Drop shipment — deemed supply
  
  179 (1) For the purposes of this Part, if 
  (a) a registrant 
  (i) makes a taxable supply in Canada of particular tangible personal property by way of sale to a non-resident person that is not registered under Subdivision D of Division V, 
  (ii) makes a taxable supply in Canada of a service of manufacturing or producing particular tangible personal property to a non-resident person that is not registered under Subdivision D of Division V, 
  (iii) acquires physical possession of particular tangible personal property (other than property of a person that is resident in Canada) for the purpose of making a taxable supply in Canada of a commercial service in respect of the particular property to a non-resident person that is not registered under Subdivision D of Division V, or 
  (iv) acquires — as the recipient of a supply of particular tangible personal property made by way of lease, licence or similar arrangement by a non-resident person that is not registered under Subdivision D of Division V — physical possession of the particular property and either 
  (A) gives a certificate described in paragraph (2)(d) in respect of that acquisition of physical possession of the particular property, or 
  (B) claims an input tax credit in respect of tax that is deemed to have been paid or payable by the registrant under subsection 178.8(2) or paragraph 180(d) in respect of the particular property, 
  (b) the registrant, at a particular time, causes physical possession of the particular property to be transferred, at a place in Canada, to a third person (in this subsection referred to as the “consignee”) or to the non-resident person, and 
  (c) the non-resident person is not a consumer of the particular property, the following rules apply: 
  (d) the registrant is deemed to have made a particular taxable supply in Canada of the particular property to the non-resident person and the non-resident person is deemed to have received the particular taxable supply from the registrant, 
  (e) if the transfer of physical possession of the particular property occurs at a place in a participating province, the particular taxable supply is deemed to have been made in that province, 
  (f) the particular taxable supply is deemed to have been made for consideration, that becomes due and is paid at the particular time, equal to 
  (i) except if subparagraph (ii) applies, the fair market value of the particular property at the particular time, and 
  (ii) if the registrant has caused physical possession of the particular property to be transferred to a consignee that is acquiring physical possession of the particular property as the recipient of a supply made by the non-resident person by way of sale for no consideration, nil, and 
  (g) the registrant is deemed not to have made the taxable supply referred to in any of subparagraphs (a)(i) to (iii) in respect of the particular property to the non-resident person, unless that supply is a supply of a service of storing the particular property. 
  
  ### Exception — certificate of registered consignee
  
  (2) For the purposes of this Part, if 
  (a) paragraphs (1)(a) to (c) apply to 
  (i) a taxable supply in respect of particular tangible personal property that is made by a registrant and is referred to in any of subparagraphs (1)(a)(i) to (iii), or 
  (ii) an acquisition by a registrant of physical possession of particular tangible personal property that is referred to in subparagraph (1)(a)(iv), 
  (b) the transfer referred to in paragraph (1)(b) of physical possession of the particular property is to a person (in this subsection referred to as the “consignee”) that is registered under Subdivision D of Division V, 
  (c) the consignee is acquiring physical possession of the particular property 
  (i) as the recipient of a taxable supply of the particular property made by a non-resident person that is not registered under Subdivision D of Division V, 
  (ii) for the purpose of making a taxable supply in Canada of a service of manufacturing or producing other tangible personal property to a non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the other property, if the particular property 
  (A) is incorporated or transformed into, attached to, or combined or assembled with, the other property in the manufacture or production of the other property, or 
  (B) is directly consumed or expended in the manufacture or production of the other property, 
  (iii) if the particular property is not property of a person that is resident in Canada, for the purpose of making a taxable supply in Canada of a commercial service in respect of the particular property to a non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the particular property, or 
  (iv) for the purpose of making a taxable supply in Canada of a commercial service in respect of other tangible personal property (other than property of a person that is resident in Canada) to a non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the other property, if the particular property 
  (A) is incorporated into, attached to, or combined or assembled with, the other property in the provision of the commercial service, or 
  (B) is directly consumed or expended in the provision of the commercial service, and 
  (d) the consignee gives to the registrant, and the registrant retains, a certificate that 
  (i) states the consignee’s name and registration number assigned under section 241, 
  (ii) acknowledges that the consignee is acquiring physical possession of the particular property as the recipient of a supply referred to in subparagraph (c)(i) or for a purpose referred to in any of subparagraphs (c)(ii) to (iv), and 
  (iii) acknowledges that the consignee is assuming liability to pay or remit any amount that is or may become payable or remittable by the consignee 
  (A) under Division IV in respect of the particular property, or 
  (B) under this Part in respect of a supply, deemed under paragraph (1)(d) to have been made by the consignee, of the particular property or of the other property referred to in either of subparagraphs (c)(ii) or (iv), the following rules apply: 
  (e) paragraphs (1)(d) to (g) do not apply to the taxable supply referred to in subparagraph (a)(i) or the acquisition referred to in subparagraph (a)(ii), as the case may be, and 
  (f) if subparagraph (a)(i) applies, the taxable supply referred to in that subparagraph is deemed to have been made outside Canada. 
  
  ### Exception — certificate of registered owner
  
  (3) For the purposes of this Part, if 
  (a) paragraphs (1)(a) to (c) apply to 
  (i) a taxable supply in respect of particular tangible personal property that is made by a registrant and is referred to in any of subparagraphs (1)(a)(i) to (iii), or 
  (ii) an acquisition by a registrant of physical possession of particular tangible personal property that is referred to in subparagraph (1)(a)(iv), 
  (b) the transfer referred to in paragraph (1)(b) of physical possession of the particular property is to a person (in this subsection referred to as the “consignee”) that is not entitled, under subsection (2), to give to the registrant a certificate described in paragraph (2)(d) in respect of that transfer, 
  (c) either 
  (i) the particular property is, immediately after the particular time referred to in paragraph (1)(b), property of a particular person that is registered under Subdivision D of Division V and that is neither the registrant nor the consignee, and the registrant retains a certificate that 
  (A) is given to the registrant by the particular person, 
  (B) states the particular person’s name and registration number assigned under section 241, 
  (C) acknowledges that the particular property is, immediately after the particular time, property of the particular person, and 
  (D) if the particular property was acquired by the particular person by way of sale from a non-resident person that is not registered under Subdivision D of Division V, acknowledges that the particular person is assuming liability to pay any amount that is or may become payable by the particular person under Division IV in respect of the particular property, or 
  (ii) a particular person, other than the registrant, that is registered under Subdivision D of Division V makes a taxable supply by way of sale of the particular property to the consignee before the particular time, the consignee is acquiring physical possession of the particular property at the particular time as the recipient of that taxable supply, and the registrant retains a certificate that 
  (A) is given to the registrant by the particular person, or by the consignee provided that the consignee is registered under Subdivision D of Division V, 
  (B) states the particular person’s name and registration number assigned under section 241, 
  (C) if the certificate is given by the consignee, states the consignee’s name and registration number assigned under section 241, and 
  (D) acknowledges that the particular person made a taxable supply by way of sale of the particular property to the consignee before the particular time and that the consignee acquired physical possession of the particular property at the particular time as the recipient of that taxable supply, and 
  (d) if subparagraph (1)(a)(i) applies, the property is delivered or made available to the particular person referred to in subparagraph (c)(i) or (ii), as the case may be, after the property is delivered or made available to the non-resident person referred to in subparagraph (1)(a)(i) under the agreement for the taxable supply referred to in that subparagraph, the following rules apply: 
  (e) paragraphs (1)(d) to (g) do not apply to the taxable supply referred to in subparagraph (a)(i) or the acquisition referred to in subparagraph (a)(ii), as the case may be, and 
  (f) if subparagraph (a)(i) applies, the taxable supply referred to in that subparagraph is deemed to have been made outside Canada. 
  
  ### Exception — distribution platform operator
  
  (3.1) For the purposes of this Part, if 
  (a) paragraphs (1)(a) to (c) apply to a taxable supply in respect of particular tangible personal property that is made by a registrant and is referred to in any of subparagraphs (1)(a)(i) to (iii), 
  (b) the transfer referred to in paragraph (1)(b) of physical possession of the particular property is to a person (in this subsection referred to as the “consignee”) that is acquiring physical possession of the particular property as the recipient of a taxable supply made by way of sale of the particular property that 
  (i) is deemed under subsection 211.23(1) to have been made by a distribution platform operator (as defined in subsection 211.1(1)), and  
  (ii) would, in the absence of subsection 211.23(1), be made by a non-resident person that is not registered under Subdivision D of Division V, 
  (c) the distribution platform operator is registered under Subdivision D of Division V, and 
  (d) the non-resident person gives to the registrant, and the registrant retains, a certificate that 
  (i) acknowledges that the consignee acquired physical possession of the particular property as the recipient of a taxable supply and that the distribution platform operator is required to collect tax in respect of that taxable supply, and 
  (ii) states the distribution platform operator’s name and registration number assigned under section 241, the following rules apply: 
  (e) paragraphs (1)(d) to (g) do not apply to the taxable supply referred to in paragraph (a), and 
  (f) the taxable supply referred to in paragraph (a) is deemed to have been made outside Canada. 
  
  ### Exception — export
  
  (4) For the purposes of this Part, if 
  (a) paragraphs (1)(a) and (c) apply to 
  (i) a taxable supply in respect of particular tangible personal property that is made by a registrant and is referred to in any of subparagraphs (1)(a)(i) to (iii), or 
  (ii) an acquisition by a registrant of physical possession of particular tangible personal property that is referred to in subparagraph (1)(a)(iv), and 
  (b) either 
  (i) the registrant 
  (A) causes physical possession of the particular property to be transferred at a place outside Canada, 
  (B) ships the particular property to a destination outside Canada that is specified in the contract for carriage of the particular property, 
  (C) causes physical possession of the particular property to be transferred to a common carrier or consignee that has been retained to ship the particular property to a destination outside Canada, or 
  (D) sends the particular property by mail or courier to an address outside Canada, or 
  (ii) the following conditions are met: 
  (A) the registrant causes physical possession of the particular property to be transferred at a place in Canada to a person (referred to in this subparagraph as the “exporter”) for export, 
  (B) after that transfer, the exporter exports the particular property as soon as is reasonable having regard to the circumstances surrounding the exportation and, if applicable, the normal business practices of the exporter and of the owner of the particular property, 
  (C) the particular property has not been acquired by any owner of the particular property for consumuption use or supply in Canada at any time after that transfer and before the property is exported, 
  (D) after that transfer but before the particular property is exported, the particular property is not further processed, transformed or altered except to the extent reasonably necessary or incidental to its transportation, and 
  (E) the registrant maintains evidence satisfactory to the Minister of the exportation of the particular property or, if the exporter is authorized under subsection 221.1(2), the exporter provides the registrant with a certificate in which the exporter certifies that the particular property will be exported in the circumstances described in clauses (B) to (D), the following rules apply: 
  (c) paragraphs (1)(d) to (g) do not apply to the taxable supply referred to in subparagraph (a)(i) or the acquisition referred to in subparagraph (a)(ii), as the case may be, and 
  (d) if subparagraph (a)(i) applies, the taxable supply referred to in that subparagraph is deemed to have been made outside Canada. 
  
  ### Retention of possession
  
  (5) If 
  (a) a particular registrant makes a particular taxable supply in Canada of particular tangible personal property by way of sale to a particular non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the particular property, and 
  (b) the particular registrant or another registrant has physical possession of the particular property at the particular time at which the particular property is delivered or made available to the particular non-resident person under the agreement for the particular taxable supply and retains physical possession of the particular property after the particular time 
  (i) solely for the purpose of transferring physical possession of the particular property to the particular non-resident person, a person (in this subsection referred to as a “subsequent purchaser”) that subsequently acquires ownership of the particular property or a person designated by the particular non-resident person or a subsequent purchaser, 
  (ii) for the purpose of making another taxable supply in Canada of a commercial service in respect of the particular property to the particular non-resident person or a subsequent purchaser, 
  (iii) for the purpose of making another taxable supply in Canada of a service of manufacturing or producing other tangible personal property to the particular non-resident person or to another non-resident person that is not registered under Subdivision D of Division V, if the particular non-resident person or the other non-resident person, as the case may be, is not a consumer of the other property and if the particular property 
  (A) is incorporated or transformed into, attached to, or combined or assembled with, the other property in the manufacture or production of the other property, or 
  (B) is directly consumed or expended in the manufacture or production of the other property, 
  (iv) for the purpose of making another taxable supply in Canada of a commercial service in respect of other tangible personal property (other than property of a person that is resident in Canada) to the particular non-resident person or to another non-resident person that is not registered under Subdivision D of Division V, if the particular non-resident person or the other non-resident person, as the case may be, is not a consumer of the other property and if the particular property 
  (A) is incorporated into, attached to, or combined or assembled with, the other property in the provision of the commercial service, or 
  (B) is directly consumed or expended in the provision of the commercial service, or 
  (v) if subsection (9) does not apply in respect of the particular taxable supply, as the recipient of another supply of the particular property made by the particular non-resident person, by a subsequent purchaser or by a lessee or sub-lessee of a subsequent purchaser, the following rules apply: 
  (c) if the particular registrant has physical possession of the particular property at the particular time, 
  (i) for the purposes of this Part, the particular taxable supply is deemed to have been made outside of Canada, 
  (ii) if any of subparagraphs (b)(i) to (iv) applies, the particular registrant is deemed for the purposes of this section 
  (A) except if clause (B) applies, to have acquired, at the particular time, physical possession of the particular property for the purpose of making a taxable supply in Canada to the particular non-resident person of a commercial service in respect of the particular property that is not a storage service, or 
  (B) if subparagraph (b)(ii) applies and the other taxable supply referred to in that subparagraph is to be made to the particular non-resident person or to a non-resident subsequent purchaser that is not registered under Subdivision D of Division V and is not a consumer of the particular property or if subparagraph (b)(iii) or (iv) applies, to have acquired, at the particular time, physical possession of the particular property for the purpose referred to in whichever of subparagraphs (b)(ii) to (iv) applies, and 
  (iii) if subparagraph (b)(v) applies, for the purposes of this section and the definition imported taxable supply in section 217,  
  (A) the particular registrant is deemed to have acquired physical possession of the particular property, as the recipient of the other supply referred to in that subparagraph, from another person that is a registrant, 
  (B) that acquisition of physical possession of the particular property is deemed to have occurred at the time when, and at the place where, the particular property is delivered or made available to the particular registrant under the agreement for that other supply, and 
  (C) the particular registrant is deemed to have given to the other person referred to in clause (A) a certificate described in paragraph (2)(d) in respect of that acquisition of physical possession of the particular property, and 
  (d) if another registrant has physical possession of the particular property at the particular time, for the purposes of this section and the definition imported taxable supply in section 217,  
  (i) if subparagraph (b)(i) applies and the other registrant gives to the particular registrant a certificate that contains the information set out in paragraph (2)(d) in respect of the particular property, 
  (A) the particular registrant is deemed to have caused, at the particular time, physical possession of the particular property to be transferred at a place in Canada to the other registrant, 
  (B) the other registrant is deemed to have acquired, at the particular time, physical possession of the particular property for the purpose of making a taxable supply in Canada to the particular non-resident person of a commercial service in respect of the particular property that is not a storage service, and 
  (C) the certificate is deemed to be a certificate described in paragraph (2)(d) in respect of the transfer referred to in clause (A) and the acquisition referred to in clause (B), 
  (ii) if any of subparagraphs (b)(ii) to (iv) applies, 
  (A) the particular registrant is deemed to have caused physical possession of the particular property to be transferred at a place in Canada to the other registrant, 
  (B) the other registrant is deemed to have acquired physical possession of the particular property from the particular registrant for the purpose referred to in whichever of those subparagraphs applies, and 
  (C) the particular registrant is deemed to have caused that transfer, and the other registrant is deemed to have so acquired physical possession of the particular property, at 
  (I) except if subclause (II) applies, the particular time, or 
  (II) if subparagraph (b)(ii) applies and the other taxable supply referred to in that subparagraph is to be made to a subsequent purchaser that is registered under Subdivision D of Division V, the time at which the particular property is delivered or made available to the subsequent purchaser, and 
  (iii) if subparagraph (b)(v) applies, 
  (A) the particular registrant is deemed to have caused physical possession of the particular property to be transferred to the other registrant, 
  (B) the other registrant is deemed to have acquired physical possession of the particular property from the particular registrant as the recipient of the other supply referred to in that subparagraph, and 
  (C) the particular registrant is deemed to have caused that transfer, and the other registrant is deemed to have so acquired physical possession of the particular property, at the time when, and at the place where, the particular property is delivered or made available to the other registrant under the agreement for that other supply. 
  
  ### Transfer of possession to bailee
  
  (6) For the purposes of this section, section 180 and the definition imported taxable supply in section 217, if a registrant at a particular time transfers physical possession of tangible personal property to a bailee solely for the purpose of storing or shipping the property and if the bailee does not, at or before the particular time, give to the registrant a certificate described in paragraph (2)(d) in respect of the transfer of physical possession of the property, the following rules apply:  
  (a) if, under the agreement with the bailee for storing or shipping the property, the bailee is required to transfer physical possession of the property to another person, other than the registrant, that is named at the particular time in the agreement, 
  (i) the registrant is deemed not to have caused physical possession of the property to be transferred to the bailee and the bailee is deemed not to have acquired physical possession of the property, 
  (ii) the registrant is deemed to have caused physical possession of the property to be transferred to the other person at the particular time and at the place where physical possession of the property is transferred to the other person by the bailee, 
  (iii) the other person is deemed to have acquired physical possession of the property from the registrant for the purpose for which the other person is acquiring physical possession of the property from the bailee, and 
  (iv) that acquisition of physical possession of the property is deemed to have occurred at the particular time and at the place where physical possession of the property is transferred to the other person by the bailee; and 
  (b) if, under the agreement with the bailee for storing or shipping the property, the bailee is required to transfer physical possession of the property to the registrant or to another person (in this paragraph referred to as the “consignee”) that is to be identified after the particular time, 
  (i) the registrant is deemed to retain physical possession of the property, and the bailee is deemed not to have acquired physical possession of the property, throughout the period beginning at the particular time and ending at another time that is the earliest of 
  (A) the time at which the bailee transfers physical possession of the property to the registrant, 
  (B) the time at which the registrant gives to the consignee sufficient documentation to enable the consignee to require the bailee to transfer physical possession of the property to the consignee, 
  (C) the time at which the registrant directs the bailee in writing to transfer physical possession of the property to the consignee, 
  (D) the time at which the bailee transfers physical possession of the property to the consignee, and 
  (E) if the bailee is acquiring physical possession of the property for the purpose of storing the property, the time at which the bailee gives to the registrant a certificate that contains the information set out in paragraph (2)(d) in respect of the property, and 
  (ii) if the other time referred to in subparagraph (i) is 
  (A) described in any of clauses (i)(B) to (D), 
  (I) the registrant is deemed to have caused physical possession of the property to be transferred to the consignee at the other time and at the place where physical possession of the property is transferred to the consignee by the bailee, 
  (II) the consignee is deemed to have acquired physical possession of the property from the registrant for the purpose for which the consignee is acquiring physical possession of the property from the bailee, and 
  (III) that acquisition of physical possession of the property is deemed to have occurred at the other time and at the place where physical possession of the property is transferred to the consignee by the bailee, or 
  (B) described in clause (i)(E), 
  (I) the transfer of physical possession of the property by the registrant to the bailee, and the acquisition of physical possession of the property by the bailee from the registrant, are deemed to have occurred at the other time and not at the particular time, and 
  (II) the certificate referred to in that clause is deemed to be a certificate described in paragraph (2)(d) in respect of that transfer and that acquisition. 
  
  ### Goods transferred to bailee by non-resident
  
  (7) For the purposes of this section, section 180 and the definition imported taxable supply in section 217, if a non-resident person that is not registered under Subdivision D of Division V transfers physical possession of tangible personal property to a bailee that is a registrant for the sole purpose of storing or shipping the property and if the bailee either is a carrier that is acquiring physical possession of the property for the sole purpose of shipping the property or does not claim an input tax credit in respect of the property, the bailee is deemed not to have acquired physical possession of the property.  
  
  ### Fungible property
  
  (7.1) For the purposes of this section, substitute tangible personal property is deemed to be the original tangible personal property if 
  (a) one of the following conditions is met: 
  (i) a registrant acquires physical possession of the original tangible personal property for the purpose of making a supply of a service of manufacturing or producing tangible personal property (in this subparagraph referred to as the “manufactured property”) and the substitute tangible personal property is used or consumed by being 
  (A) incorporated or transformed into, attached to, or combined or assembled with, the manufactured property in the manufacture or production of the manufactured property, or 
  (B) directly consumed or expended in the manufacture or production of the manufactured property, 
  (ii) the following conditions are met: 
  (A) a registrant acquires physical possession of the original tangible personal property for the purpose of making a supply of a commercial service in respect of that property, 
  (B) if the commercial service is not a storage service, a service identical to the commercial service is performed in respect of the substitute tangible personal property, 
  (C) the registrant causes physical possession of the substitute tangible personal property to be transferred to another person under the agreement for the supply, and 
  (D) if the substitute property is a continuous transmission commodity, the substitute tangible personal property is not being transferred to the other person by means of a wire, pipeline or other conduit, or 
  (iii) a registrant acquires physical possession of the original tangible personal property for the purpose of making a supply of a commercial service in respect of tangible personal property (in this subparagraph referred to as the “serviced property”) that is neither the original tangible personal property nor the substitute tangible personal property and the substitute tangible personal property is used or consumed by being 
  (A) incorporated into, attached to, or combined or assembled with, the serviced property in the provision of the commercial service, or 
  (B) directly consumed or expended in the provision of the commercial service; and 
  (b) the properties of the original tangible personal property are essentially identical to the properties of the substitute tangible personal property and the original tangible personal property and the substitute tangible personal property 
  (i) are of the same class or kind of property, 
  (ii) are in the same measure and state, and 
  (iii) are interchangeable for commercial purposes. 
  
  ### Beginning of lease from unregistered non-resident
  
  (8) For the purposes of this section and the definition imported taxable supply in section 217, if  
  (a) a registrant (in this subsection referred to as the “lessee”) 
  (i) is the recipient of a particular taxable supply of tangible personal property made by way of lease, licence or similar arrangement by a particular non-resident person that is not registered under Subdivision D of Division V, and 
  (ii) is not deemed under clause (9)(c)(ii)(A) or subparagraph (9)(d)(ii) to have acquired physical possession of the property as the recipient of the particular taxable supply, 
  (b) either 
  (i) immediately before the particular time at which the property is delivered or made available to the lessee under the agreement for the particular taxable supply, another registrant has possession or use of the property as the recipient of another taxable supply of the property made by way of lease, licence or similar arrangement by the particular non-resident person or by another non-resident person that is not registered under Subdivision D of Division V, or 
  (ii) the following conditions are met: 
  (A) subparagraph (i) does not apply, 
  (B) another registrant has physical possession of the property immediately after the particular time, and 
  (C) the lessee did not have possession or use of the property immediately before the particular time as the recipient of another taxable supply of the property made by way of lease, licence or similar arrangement by the particular non-resident person or by another non-resident person that is not registered under Subdivision D of Division V, and 
  (c) it is not the case that a person that is a registrant acquired physical possession of the property before the particular time for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the particular non-resident person or to another non-resident person that is not registered under Subdivision D of Division V and continues to retain physical possession of the property until a time that is after the particular time, the following rules apply: 
  (d) the other registrant referred to in subparagraph (b)(i) or (ii), as the case may be, is deemed to have caused physical possession of the property to be transferred to the lessee at the particular time and at the place where the property is delivered or made available to the lessee under the agreement for the particular taxable supply, 
  (e) the lessee is deemed to have acquired physical possession of the property from the other registrant as the recipient of the particular taxable supply, and 
  (f) that acquisition of physical possession of the property is deemed to have occurred at the particular time and at the place where the property is delivered or made available to the lessee under the agreement for the particular taxable supply. 
  
  ### Lease subsequent to sale
  
  (9) If 
  (a) a particular registrant makes a particular taxable supply in Canada of tangible personal property by way of sale to a particular non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the property, and 
  (b) at the particular time at which the property is delivered or made available to the particular non-resident person under the agreement for the particular taxable supply, the particular registrant or another registrant is, or is intended to be, the recipient of another supply of the property made by way of lease, licence or similar arrangement by the particular non-resident person or by another non-resident person that is not registered under Subdivision D of Division V, the following rules apply: 
  (c) if the particular registrant is, or is intended to be, at the particular time the recipient of the other supply, 
  (i) for the purposes of this Part, the particular taxable supply is deemed to have been made outside of Canada, 
  (ii) for the purposes of this section and the definition imported taxable supply in section 217,  
  (A) the particular registrant is deemed to have acquired physical possession of the property, as the recipient of the other supply, from another person that is a registrant, 
  (B) that acquisition of physical possession of the property is deemed to have occurred at the time when, and at the place where, the property is delivered or made available to the particular registrant under the agreement for the other supply, and 
  (C) the particular registrant is deemed to have given to the other person referred to in clause (A) a certificate described in paragraph (2)(d) in respect of that acquisition of physical possession of the property, and 
  (d) if another registrant is, or is intended to be, at the particular time the recipient of the other supply, for the purposes of this section and the definition imported taxable supply in section 217,  
  (i) the particular registrant is deemed to have caused physical possession of the property to be transferred to the other registrant, 
  (ii) the other registrant is deemed to have acquired physical possession of the property, as the recipient of the other supply, from the particular registrant, and 
  (iii) the particular registrant is deemed to have caused that transfer, and the other registrant is deemed to have so acquired physical possession of the property, at the time when, and at the place where, the property is delivered or made available to the other registrant under the agreement for the other supply. 
  
  ### Deemed possession during lease
  
  (10) For the purposes of this section and the definition imported taxable supply in section 217, if a registrant (in this subsection referred to as the “lessee”) acquires — as the recipient of a particular taxable supply of tangible personal property made by way of lease, licence or similar arrangement by a particular non-resident person that is not registered under Subdivision D of Division V — physical possession of the property at a particular time and either  
  (a) gives a certificate described in paragraph (2)(d) in respect of that acquisition of physical possession of the property, or 
  (b) claims an input tax credit in respect of tax that is deemed to have been paid or payable by the lessee under subsection 178.8(2) or paragraph 180(d) in respect of the property, the lessee is deemed to retain physical possession of the property at all times throughout the period that begins at the particular time and ends at the earliest of 
  (c) the time at which the lessee causes physical possession of the property to be transferred to another registrant that 
  (i) is acquiring physical possession of the property for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the particular non-resident person or to another non-resident person that is not registered under Subdivision D of Division V, and 
  (ii) retains physical possession of the property during a part of the period during which possession or use of the property is provided to the lessee under the arrangement, 
  (d) the time at which the lessee causes physical possession of the property to be transferred to the particular non-resident person or to another non-resident person that is not registered under Subdivision D of Division V, and 
  (e) the time at which the lessee causes physical possession of the property to be transferred to a person that is not referred to in paragraph (c) or (d), if that time is not included in 
  (i) the period during which possession or use of the property is provided to the lessee under the arrangement, or 
  (ii) another period during which the lessee has possession or use of the property as the recipient of another taxable supply of the property made by way of lease, licence or similar arrangement by the particular non-resident person or by another non-resident person that is not registered under Subdivision D of Division V. 
  
  ### Possession by service provider during lease
  
  (11) For the purposes of this section and the definition imported taxable supply in section 217, if  
  (a) a registrant (in this subsection referred to as the “lessee”) is the recipient of a particular taxable supply of tangible personal property made by way of lease, licence or similar arrangement by a particular non-resident person that is not registered under Subdivision D of Division V, 
  (b) another registrant acquires physical possession of the property at a particular time for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the particular non-resident person or to another non-resident person that is not registered under Subdivision D of Division V, and 
  (c) the other registrant retains physical possession of the property during a part of the particular period during which possession or use of the property is provided to the lessee under the arrangement, the following rules apply: 
  (d) if a third person other than the lessee causes physical possession of the property to be transferred to the other registrant at the particular time, if the particular time is during the particular period and if the third person is not a registrant that acquires and retains physical possession of the property in the circumstances described in paragraphs (b) and (c), 
  (i) the third person is deemed not to have caused that transfer of physical possession of the property, and 
  (ii) the lessee is deemed to have caused, at the particular time, physical possession of the property to be transferred to the other registrant at the place where the other registrant acquires physical possession of the property, and 
  (e) if the other registrant causes, at a later time that is after the particular time but during the particular period, physical possession of the property to be transferred at a particular place to a third person other than the lessee and the third person is not a registrant that acquires and retains physical possession of the property in the circumstances described in paragraphs (b) and (c), 
  (i) the other registrant is deemed to have caused, at the later time, physical possession of the property to be transferred to the lessee at the particular place, 
  (ii) the lessee is deemed to have acquired physical possession of the property as the recipient of the particular taxable supply at the later time and at the place where the property is delivered or made available to the lessee under the arrangement, and 
  (iii) the other registrant is deemed not to have caused physical possession of the property to be transferred to the third person, and the third person is deemed not to have acquired physical possession of the property. 
  
  ### End of lease period
  
  (12) For the purposes of this section and the definition imported taxable supply in section 217, if  
  (a) a registrant (in this subsection referred to as the “lessee”) is the recipient of a particular taxable supply of tangible personal property made by way of lease, licence or similar arrangement by a particular non-resident person that is not registered under Subdivision D of Division V, 
  (b) a particular person other than the lessee has physical possession of the property immediately after the particular time that is at the end of the period during which possession or use of the property is provided to the lessee under the arrangement, 
  (c) if the particular person is a registrant, the particular person did not acquire physical possession of the property before the particular time for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the particular non-resident person or to another non-resident person that is not registered under Subdivision D of Division V, 
  (d) the lessee does not retain possession or use of the property after the particular time as the recipient of a taxable supply of the property made by way of lease, licence or similar arrangement by the particular non-resident person or by another non-resident person that is not registered under Subdivision D of Division V, and 
  (e) another registrant does not have possession or use of the property immediately after the particular time as the recipient of a taxable supply of the property made by way of lease, licence or similar arrangement by the particular non-resident person or by another non-resident person that is not registered under Subdivision D of Division V, the following rules apply: 
  (f) the lessee is deemed to have caused, at the particular time, physical possession of the property to be transferred to the particular person at the place where the particular person has physical possession of the property immediately after the particular time, 
  (g) if the particular person is a registrant and has physical possession of the property immediately after the particular time as the recipient of a supply referred to in subparagraph (2)(c)(i), the particular person is deemed to have acquired, at the particular time and at the place referred to in paragraph (f), physical possession of the property as the recipient of that supply, and 
  (h) if the particular person is a registrant and has physical possession of the property immediately after the particular time for the purpose of making a supply referred to in any of subparagraphs (2)(c)(ii) to (iv), the particular person is deemed to have acquired, at the particular time and at the place referred to in paragraph (f), physical possession of the property for that purpose. 
  
  ### Use of railway rolling stock
  
  (13) For the purpose of clause (4)(b)(ii)(C), if the only use of railway rolling stock after physical possession of it is transferred as described in that clause and before it is next exported is for the purpose of transporting tangible personal property or passengers in the course of that exportation and that exportation occurs within 60 days after the day on which the transfer takes place, that use of the rolling stock is deemed to take place entirely outside Canada. 
  
  ### Receipt of property from non-resident
  
  180 For the purposes of determining an input tax credit of, or the amount of a rebate payable under section 259 or 260 to, a particular person, where a non-resident person who is not registered under Subdivision D of Division V 
  (a) either 
  (i) makes a supply of tangible personal property to the particular person and delivers the property, or makes it available, in Canada to the particular person before the property is used in Canada by or on behalf of the non-resident person, or 
  (ii) if the particular person is a registrant, causes physical possession of tangible personal property (other than property of a person that is resident in Canada) to be transferred in Canada to the particular person in circumstances in which the particular person is acquiring physical possession of the property for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the non-resident person, 
  (b) has paid tax under Division III in respect of the importation of the property or has paid tax in respect of a supply of the property deemed under subsection 179(1) to have been made by a registrant, and 
  (c) provides to the particular person evidence, satisfactory to the Minister, that the tax has been paid, the particular person shall be deemed 
  (d) to have paid, at the time the non-resident person paid that tax, tax in respect of a supply of the property to the particular person equal to that tax, and 
  (e) in a case described in subparagraph (a)(ii), to have acquired the property for use exclusively in commercial activities of the particular person. 
  
  ### Restriction on recovery
  
  180.01 If, under paragraph 180(d), a particular person is deemed to have paid tax equal to the tax paid by a non-resident person, the following rules apply: 
  (a) subsection 232(3) does not apply in respect of the tax paid by the non-resident person; and 
  (b) no portion of the tax paid by the non-resident person shall be rebated, refunded or remitted to the non-resident person, or shall otherwise be recovered by the non-resident person, under this or any other Act of Parliament. 
  
  ## International Travel 
  
  ### Definitions
  
  180.1 (1) The definitions in this subsection apply in this section.  
  *international flight* means any flight (other than a flight originating and terminating in Canada) of an aircraft that is operated by a person in the course of a business of supplying passenger transportation services. (vol international)   
  *international voyage* means any voyage (other than a voyage originating and terminating in Canada) of a vessel that is operated by a person in the course of a business of supplying passenger transportation services. (voyage international)  
  
  ### Delivery while on international travel
  
  (2) For the purposes of this Part, where a supply of tangible personal property or a service (other than a passenger transportation service) is made to an individual on board an aircraft on an international flight or a vessel on an international voyage and physical possession of the property is transferred to the individual, or the service is wholly performed, on board the aircraft or vessel, the supply is deemed to have been made outside Canada. 
  
  ## Coupons and Rebates 
  
  ### Definitions
  
  181 (1) The definitions in this subsection apply in this section.  
  *coupon* includes a voucher, receipt, ticket or other device but does not include a gift certificate or a barter unit (within the meaning of section 181.3). (bon)   
  *tax fraction* of a coupon value or of the discount or exchange value of a coupon means  
  (a) where the coupon is accepted in full or partial consideration for a supply made in a participating province, the fraction is the total of the rate set out in subsection 165(1) and the tax rate for that participating province, and is the total of 100% and the percentage determined for A; and 
  (b) in any other case, the fraction is the rate set out in subsection 165(1), and is the total of 100% and the percentage determined for C. ( fraction de taxe)  
  
  ### Acceptance of reimbursable coupon
  
  (2) For the purposes of this Part, other than subsection 223(1), where at any time a registrant accepts, in full or partial consideration for a taxable supply of property or a service (other than a zero-rated supply), a coupon that entitles the recipient of the supply to a reduction of the price of the property or service equal to a fixed dollar amount specified in the coupon (in this subsection referred to as the “coupon value”) and the registrant can reasonably expect to be paid an amount for the redemption of the coupon by another person, the following rules apply: 
  (a) the tax collectible by the registrant in respect of the supply shall be deemed to be the tax that would be collectible if the coupon were not accepted; 
  (b) the registrant shall be deemed to have collected, at that time, a portion of the tax collectible equal to the tax fraction of the coupon value; and 
  (c) the tax payable by the recipient in respect of the supply shall be deemed to be the amount determined by the formula is the tax collectible by the registrant in respect of the supply, and is the tax fraction of the coupon value. 
  
  ### Acceptance of non-reimbursable coupon
  
  (3) Where at any time a registrant accepts, in full or partial consideration for a taxable supply of property or a service (other than a zero-rated supply), a coupon that entitles the recipient of the supply to a reduction of the price of the property or service equal to a fixed dollar amount specified in the coupon or a fixed percentage, specified in the coupon, of the price (the amount of which reduction is, in each case, referred to in this subsection as the “coupon value”) and the registrant can reasonably expect not to be paid an amount for the redemption of the coupon by another person, 
  (a) the registrant shall, for the purposes of this Part, treat the coupon as 
  (i) reducing the value of the consideration for the supply as provided for in subsection (4), or 
  (ii) a partial cash payment that does not reduce the value of the consideration for the supply; and 
  (b) where the registrant treats the coupon as a partial cash payment that does not reduce the value of the consideration for the supply, paragraphs (2)(a) to (c) apply in respect of the supply and the coupon and the registrant may claim an input tax credit for the registrant’s reporting period that includes that time equal to the tax fraction of the coupon value. 
  
  ### Acceptance of other coupons
  
  (4) For the purposes of this Part, if a registrant accepts, in full or partial consideration for a supply of property or a service, a coupon that may be exchanged for the property or service or that entitles the recipient of the supply to a reduction of, or a discount on, the price of the property or service and paragraphs (2)(a) to (c) do not apply in respect of the coupon, the value of the consideration for the supply is deemed to be the amount, if any, by which the value of the consideration for the supply as otherwise determined for the purposes of this Part exceeds the discount or exchange value of the coupon. 
  
  ### Redemption of coupon
  
  (5) For the purposes of this Part, where, in full or partial consideration for a taxable supply of property or a service, a supplier who is a registrant accepts a coupon that may be exchanged for the property or service or that entitles the recipient of the supply to a reduction of, or a discount on, the price of the property or service and a particular person at any time pays, in the course of a commercial activity of the particular person, an amount to the supplier for the redemption of the coupon, the following rules apply: 
  (a) the amount shall be deemed not to be consideration for a supply; 
  (b) the payment and receipt of the amount shall be deemed not to be a financial service; and 
  (c) if the supply is not a zero-rated supply and the coupon entitled the recipient to a reduction of the price of the property or service equal to a fixed dollar amount specified in the coupon (in this paragraph referred to as the “coupon value”), the particular person, if a registrant (other than a registrant who is a prescribed registrant for the purposes of subsection 188(5)) at that time, may claim an input tax credit for the reporting period of the particular person that includes that time equal to the tax fraction of the coupon value, unless all or part of that coupon value is an amount of an adjustment, refund or credit to which subsection 232(3) applies. 
  
  ### Rebates
  
  181.1 Where 
  (a) a registrant makes a taxable supply in Canada of property or a service (other than a zero-rated supply), 
  (b) a particular person acquires the property or service, either from the registrant or from another person, 
  (c) the registrant pays, at any time, a rebate in respect of the property or service to the particular person and therewith provides written indication that a portion of the rebate is an amount on account of tax, and 
  (d) subsection 232(3) does not apply to the rebate, the following rules apply: 
  (e) the registrant may claim an input tax credit for the reporting period of the registrant that includes that time equal to the product obtained when the amount of the rebate is multiplied by the fraction (in this section referred to as the “tax fraction in respect of the rebate”) is 
  (i) if tax under subsection 165(2) was payable in respect of the supply of the property or service to the particular person, the total of the rate set out in subsection 165(1) and the tax rate of the participating province in which that supply was made, and 
  (ii) in any other case, the rate set out in subsection 165(1), and is the total of 100% and the percentage determined for A, and 
  (f) where the particular person is a registrant who was entitled to claim an input tax credit, or a rebate under Division VI, in respect of the acquisition of the property or service, the particular person shall be deemed, for the purposes of this Part, to have made a taxable supply and to have collected, at that time, tax in respect of the supply equal to the amount determined by the formula is the tax fraction in respect of the rebate, is the input tax credit or rebate under Division VI that the particular person was entitled to claim in respect of the acquisition of the property or service, is the tax payable by the particular person in respect of the acquisition of the property or service, and is the amount of the rebate paid to the particular person by the registrant. 
  
  ### Gift certificates
  
  181.2 For the purposes of this Part, the issuance or sale of a gift certificate for consideration shall be deemed not to be a supply and, when given as consideration for a supply of property or a service, the gift certificate shall be deemed to be money. 
  
  ### Definitions
  
  181.3 (1) The definitions in this subsection apply in this section.  
  *administrator* of a barter exchange network means the person who is responsible for administering, maintaining or operating a system of accounts, to which barter units may be credited, of members of the network. (administrateur)   
  *barter exchange network* means a group of persons each member of which has agreed in writing to accept as full or partial consideration for the supply of property or services by that particular member to any other member of that group one or more credits (in this section referred to as “barter units”) on an account of the particular member maintained or operated by a single administrator of all such accounts of the members, which credits can be used as full or partial consideration for supplies of property or services between members of that group. (réseau de troc)  
  
  ### Application for designation
  
  (2) The administrator of a barter exchange network may make an application to the Minister, in prescribed form containing prescribed information and filed in prescribed manner, to have the network designated for the purposes of subsection (5). 
  
  ### Designation of barter exchange network
  
  (3) On application by an administrator of a barter exchange network under subsection (2), the Minister may designate the barter exchange network for the purposes of subsection (5), in which case the Minister shall notify the administrator in writing of the designation and its effective date. 
  
  ### Notification by administrator
  
  (4) On receipt of a notification by the Minister of a designation of a barter exchange network, the administrator of the network shall, within a reasonable time, notify each member of the network in writing of the designation and its effective date. 
  
  ### Exchange of barter unit
  
  (5) If a member of a barter exchange network or the administrator of a barter exchange network gives, while a designation of the network under subsection (3) is in effect, property, a service or money in exchange for a barter unit, the value of that property, service or money as consideration for the barter unit is, for the purposes of this Part and despite section 155, deemed to be nil. 
  
  ### Deemed non-financial services
  
  (6) For the purposes of this Part, each of the following is deemed not to be a financial service: 
  (a) the operation, maintenance or administration of a system of accounts, to which barter units can be credited, of members of a barter exchange network; 
  (b) the crediting of a barter unit to such an account; 
  (c) the supply, receipt or redemption of a barter unit; and 
  (d) the agreeing to provide, or the arranging for, anything referred to in any of paragraphs (a) to (c). 
  
  ### Forfeiture, extinguished debt, etc.
  
  182 (1) For the purposes of this Part, where at any time, as a consequence of the breach, modification or termination after 1990 of an agreement for the making of a taxable supply (other than a zero-rated supply) of property or a service in Canada by a registrant to a person, an amount is paid or forfeited to the registrant otherwise than as consideration for the supply, or a debt or other obligation of the registrant is reduced or extinguished without payment on account of the debt or obligation, 
  (a) the person is deemed to have paid, at that time, an amount of consideration for the supply equal to the amount determined by the formula is 100%, is 
  (i) if tax under subsection 165(2) was payable in respect of the supply, the total of 100%, the rate set out in subsection 165(1) and the tax rate for the participating province in which the supply was made, and 
  (ii) in any other case, the total of 100% and the rate set out in subsection 165(1), and is the amount paid, forfeited or extinguished, or by which the debt or obligation was reduced, as the case may be; and 
  (b) the registrant is deemed to have collected, and the person is deemed to have paid, at that time, all tax in respect of the supply that is calculated on that consideration, which is deemed to be equal to 
  (i) where tax under subsection 165(2) was payable in respect of the supply, the total of the tax under that subsection and under subsection 165(1) calculated on that consideration, and 
  (ii) in any other case, tax under subsection 165(1) calculated on that consideration. 
  
  ### Transitional
  
  (2) Paragraph (1)(b) does not apply in respect of amounts paid or forfeited, and debts or other obligations reduced or extinguished, as a consequence of a breach, modification or termination of an agreement where 
  (a) the agreement was entered into in writing before 1991; 
  (b) the amount is paid or forfeited, or the debt or other obligation is reduced or extinguished, as the case may be, after 1992; and 
  (c) tax in respect of the amount paid, forfeited or extinguished, or by which the debt or obligation was reduced, as the case may be, was not contemplated in the agreement. 
  
  ### Application of Division IX
  
  (2.1) Division IX does not apply for the purposes of subsection (1). 
  
  ### Exception
  
  (3) Subsection (1) does not apply to that part of any amount paid or forfeited in respect of the breach, modification or termination of an agreement for the making of a supply where that part is 
  (a) an additional amount that is charged to a person because the consideration for the supply is not paid within a reasonable period and is such an amount referred to in section 161; 
  (b) an amount paid by one railway corporation to another railway corporation as or on account of a penalty for failure to return rolling stock within a stipulated time; or 
  (c) an amount paid as or on account of demurrage. 
  
  ### Seizure and repossession
  
  183 (1) Where at any time after 1990 property of a person is, for the purpose of satisfying in whole or in part a debt or obligation owing by the person to another person (in this section referred to as the “creditor”), seized or repossessed by the creditor under a right or power exercisable by the creditor (other than a right or power that the creditor has under, or because of being a party to, a lease, licence or similar arrangement by which the person acquired the property), 
  (a) for the purposes of this Part, the person shall be deemed to have made, and the creditor shall be deemed to have received, at that time, a supply by way of sale of the property; 
  (b) for the purposes of this Part (other than sections 193 and 257), that supply shall be deemed to have been made for no consideration; 
  (c) where the supply referred to in paragraph (a) is a taxable supply of real property, for the purposes of sections 193 and 257, the tax payable in respect of the supply shall be deemed to be equal to tax calculated on the fair market value of the property at that time; and 
  (d) where the supply referred to in paragraph (a) is a supply of real property included in section 9 of Part I of Schedule V, in section 1 of Part V.1 of that Schedule or in section 25 of Part VI of that Schedule, for the purposes of sections 193 and 257, the supply is deemed to be a taxable supply and the tax payable in respect of the supply is deemed to be equal to tax calculated on the fair market value of the property at that time. 
  
  ### Supply in commercial activity
  
  (2) Subject to subsection (3), where at any time a creditor who has seized or repossessed property, in circumstances in which subsection (1) applies, makes a particular supply (other than an exempt supply) of the property, except where any of subsections (4) to (6) applied at an earlier time in respect of the use of the property by the creditor, the creditor shall be deemed, for the purposes of this Part, to have made the particular supply in the course of a commercial activity of the creditor and anything done by the creditor in the course of, or in connection with, the making of the supply and not in connection with the seizure or repossession shall be deemed to have been done in the course of the commercial activity. 
  
  ### Court seizures
  
  (3) Where a court, for the purposes of satisfying an amount owing under a judgment of the court, orders a sheriff, bailiff or other officer of the court to seize property of the judgment debtor and subsequently makes a supply of the property, the supply of the property by the court shall be deemed, for the purposes of this Part, to be a supply made otherwise than in the course of a commercial activity. 
  
  ### Use of real property
  
  (4) For the purposes of this Part, where a creditor who has seized or repossessed real property in circumstances in which subsection (1) applies or would, but for subsection (11), apply, begins at any time to use the property otherwise than in the making of a supply of the property, the creditor shall be deemed to have made a supply of the property at that time and, except where the supply is an exempt supply, 
  (a) to have collected, at that time, tax in respect of the supply equal to the amount determined by the formula is 
  (i) if the supply is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for that province, and 
  (ii) in any other case, the rate set out in subsection 165(1), is the total of 100% and the percentage determined for A, and is the fair market value of the property at that time; and 
  (b) to have acquired the property and paid that tax at that time. 
  
  ### Use of personal property seized before 1994
  
  (5) For the purposes of this Part, where a creditor who has seized or repossessed personal property from a person before 1994, in circumstances in which subsection (1) applies or would, but for subsection (11), apply, begins at a particular time to use the property otherwise than in the making of a supply of the property, the following rules apply: 
  (a) the creditor is deemed to have received, immediately after the particular time, a particular supply by way of sale of the property; and 
  (b) where tax would have been payable had the property been purchased in Canada from the person at the time it was seized or repossessed, the creditor shall be deemed 
  (i) to have made, at the particular time, a taxable supply of the property and to have collected, at the particular time, tax in respect of that supply equal to the amount determined by the formula is 
  (A) if the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, and 
  (B) in any other case, the rate set out in subsection 165(1), is the total of 100% and the percentage determined for A, and is the fair market value of the property at the time it was seized or repossessed, and 
  (ii) to have paid, immediately after the particular time, tax in respect of the particular supply equal to the amount determined under subparagraph (i). 
  
  ### Use of personal property seized after 1993
  
  (6) For the purposes of this Part, where a creditor who has seized or repossessed personal property from a person after 1993, in circumstances in which subsection (1) applies or would, but for subsection (11), apply, begins at a particular time to use the property otherwise than in the making of a supply of the property, 
  (a) the creditor is deemed 
  (i) to have received, immediately after the particular time, a supply by way of sale of the property, and 
  (ii) except where 
  (A) that supply is a zero-rated supply, or 
  (B) in the case of property that was, at the time it was seized or repossessed, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property, tax would not have been payable had the property been purchased in Canada from the person at that time, to have paid, immediately after the particular time, all tax payable in respect of the supply, which is deemed to be equal to the amount determined by the formula is 
  (I) the rate set out in subsection 165(1) if 
  1 the property is situated in a participating province at the particular time, it was seized or repossessed before the day that is three years after the harmonization date for that province and tax would not have been payable had the property been purchased in Canada from the person at the time it was seized or repossessed, or 
  2 the property is situated in a non-participating province at the particular time, and 
  (II) in any other case, the total of the rate set out in subsection 165(1) and the tax rate for the participating province in which the property is situated at the particular time, is the total of 100% and the percentage determined for A, and is the fair market value of the property at the time it was seized or repossessed; and 
  (b) where tax would have been payable had the property been purchased in Canada from the person at the time it was seized or repossessed, the creditor is deemed to have made, at the particular time, a taxable supply of the property and to have collected, at the particular time, all tax payable in respect of that supply, which is deemed to be equal to the amount determined by the formula is 
  (i) if the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, and 
  (ii) in any other case, the rate set out in subsection 165(1), is the total of 100% and the percentage determined for A, and is the fair market value of the property at the time it was seized or repossessed. 
  
  ### Sale of personal property
  
  (7) For the purposes of this Part, where a creditor who has seized or repossessed personal property from a person in circumstances in which subsection (1) applies makes at any time a particular taxable supply of the property by way of sale (other than a supply deemed under this Part to have been made), the creditor was not deemed under subsection (5), (6) or (8) to have received a supply of the property at an earlier time and no tax would have been payable by the creditor had the creditor purchased the property from the person in Canada at the time it was seized or repossessed, except where 
  (a) the particular supply is made outside Canada or is a zero-rated supply, and 
  (b) the property was seized or repossessed by the creditor before 1994 or was, at the time of the seizure or repossession, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property, the creditor shall be deemed 
  (c) to have received a supply by way of sale of the property immediately before that time for consideration equal to the consideration for the particular supply, and 
  (d) except if the supply deemed under paragraph (c) to have been received is a zero-rated supply, to have paid, immediately before that time, all tax payable in respect of the supply deemed to have been received, which is deemed to be equal to the amount determined by the formula is 
  (i) if 
  (A) the property was seized or repossessed in a participating province by the creditor before the day that is three years after the harmonization date for that province and the particular supply is either made outside Canada or is a zero-rated supply, or 
  (B) either the property was seized or repossessed in a non-participating province or the particular supply is a supply (other than a zero-rated supply) made in a non-participating province, tax under subsection 165(1) calculated on that consideration, and 
  (ii) in any other case, the total of 
  (A) tax under subsection 165(1) calculated on that consideration, and 
  (B) tax under subsection 165(2) calculated on that consideration at the lesser of the tax rate for the participating province in which the particular supply is made and the tax rate for the participating province in which the property was seized or repossessed, and is the total of all amounts each of which is an input tax credit or a rebate under this Part that the creditor was entitled to claim in respect of the property or an improvement thereto. 
  
  ### Lease of personal property
  
  (8) For the purposes of this Part, if at a particular time a creditor who has seized or repossessed personal property from a person in circumstances in which subsection (1) applies makes a particular taxable supply of the property by way of lease, licence or similar arrangement for the first lease interval (within the meaning of subsection 136.1(1)) in respect of the arrangement, the creditor was not deemed under subsection (5) or (6) to have received a supply of the property at an earlier time and no tax would have been payable had the property been purchased in Canada from the person at the time it was seized or repossessed, except if 
  (a) the particular supply is made outside Canada or is a zero-rated supply, and 
  (b) the property was seized or repossessed by the creditor before 1994 or was, at the time it was seized or repossessed, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property, the creditor shall be deemed 
  (c) to have received a supply by way of sale of the property immediately before the particular time, and 
  (d) except if that supply is a zero-rated supply, to have paid, immediately before the particular time, all tax payable in respect of that supply, which is deemed to be equal to 
  (i) if 
  (A) the property was seized or repossessed in a participating province by the creditor before the day that is three years after the harmonization date for that province and the particular supply is either made outside Canada or is a zero-rated supply, or 
  (B) either the property was seized or repossessed in a non-participating province or the particular supply is a supply (other than a zero-rated supply) made in a non-participating province, tax under subsection 165(1) calculated on the fair market value of the property at the time it was seized or repossessed, and 
  (ii) in any other case, the total of 
  (A) tax under subsection 165(1) calculated on that fair market value, and 
  (B) tax under subsection 165(2) calculated on that fair market value at the lesser of the tax rate for the participating province in which the particular supply is made and the tax rate for the participating province in which the property was seized or repossessed. 
  
  ### Voluntary transfer
  
  (9) For the purposes of this section, where property is at any time voluntarily transferred by a particular person to another person for the purpose of satisfying in whole or in part a debt or obligation in respect of which the particular person is in default, the other person shall be deemed to have seized or repossessed the property from the particular person at that time in circumstances in which subsection (1) applies. 
  
  ### Debt security, etc.
  
  (10) For the purposes of this Part, where 
  (a) for the purposes of satisfying in whole or in part a debt or obligation owing by a person, a creditor exercises a right under an Act of Parliament or the legislature of a province or an agreement relating to a debt security to cause the supply of property, 
  (b) subsection (3) does not apply to the supply, and 
  (c) a receiver (within the meaning assigned by subsection 266(1)) does not have authority in respect of the property, the creditor shall be deemed to have seized the property immediately before that supply and that supply shall be deemed to have been made by the creditor and not by the person. 
  
  ### Redemption of property
  
  (10.1) For the purposes of this Part, where 
  (a) for the purposes of satisfying in whole or in part a debt or obligation owing by a person (in this subsection referred to as the “debtor”), a creditor exercises a right under an Act of Parliament or the legislature of a province or an agreement relating to a debt security to cause the supply of property (in this subsection referred to as the “first supply”), 
  (b) the recipient of the first supply has paid an amount (in this subsection referred to as the “tax amount”) as or on account of tax with respect to that supply, and 
  (c) under the Act or the agreement, the debtor has a right to redeem the property and the debtor exercises that right, the following rules apply: 
  (d) the redemption of the property is deemed to be a supply of the property made by way of sale by the recipient of the first supply to the debtor for no consideration, and 
  (e) where the property was redeemed from the recipient of the first supply and an amount has been reimbursed by the debtor to the creditor or that recipient on account of the tax amount, 
  (i) except for the purposes of this section, the debtor is deemed not to have supplied the property to the creditor under subsection (1) or to have received a supply of the property at the time of the redemption, 
  (ii) the debtor is deemed, for the purposes of section 261, to have paid tax in error at the time of the redemption equal to the amount so reimbursed, 
  (iii) where the tax amount has been included in determining a rebate or an input tax credit claimed by that recipient in an application or return, the amount of the rebate or the input tax credit shall be added in determining the net tax of that recipient for the reporting period in which the property was redeemed, and 
  (iv) the tax amount shall not be included in determining a rebate or an input tax credit claimed by that recipient in an application or a return filed after the redemption of the property. 
  
  ### Application of s. 266
  
  (11) Where a creditor 
  (a) exercises a right or power to seize or repossess property for the purpose of satisfying in whole or in part a debt or obligation owing by a person and is, in respect of the property, a receiver (within the meaning assigned by subsection 266(1)), or 
  (b) appoints an agent to exercise a right or power to seize or repossess property for the purpose of satisfying in whole or in part a debt or obligation owing by a person and the agent is, in respect of the property, a receiver (within the meaning assigned by subsection 266(1)), subsections (1), (2) and (7) to (9) do not apply and section 266 applies. 
  
  ## Property Acquired by Insurers on Settlement of Claim 
  
  ### Supply to insurer on settlement of claim
  
  184 (1) For the purposes of this Part, where at any time after 1990 property of a person is transferred to an insurer in the course of settling an insurance claim, the following rules apply: 
  (a) for the purposes of this Part, the person shall be deemed to have made, and the insurer shall be deemed to have received, at that time, a supply by way of sale of the property; 
  (b) for the purposes of this Part (other than sections 193 and 257), that supply shall be deemed to have been made for no consideration; 
  (c) in the case of a taxable supply of real property, for the purposes of sections 193 and 257, the tax payable in respect of the supply shall be deemed to be equal to tax calculated on the fair market value of the property at that time; and 
  (d) in the case of a supply of real property included in section 9 of Part I of Schedule V, in section 1 of Part V.1 of that Schedule or in section 25 of Part VI of that Schedule, for the purposes of sections 193 and 257, the supply is deemed to be a taxable supply and the tax payable in respect of the supply is deemed to be equal to tax calculated on the fair market value of the property at that time. 
  
  ### Supply in commercial activity
  
  (2) Where at any time an insurer makes a particular supply (other than an exempt supply) of property transferred to the insurer in circumstances in which subsection (1) applies, except where any of subsections (3) to (5) applied at an earlier time in respect of the use of the property by the insurer, the insurer shall be deemed, for the purposes of this Part, to have made the particular supply in the course of a commercial activity of the insurer and anything done by the insurer in the course of, or in connection with, the making of the supply and not in connection with the transfer of the property shall be deemed to have been done in the course of the commercial activity. 
  
  ### Use of real property
  
  (3) For the purposes of this Part, where at any time an insurer to whom real property has been transferred, in circumstances in which subsection (1) applies, begins to use the property otherwise than in the making of a supply of the property, the insurer shall be deemed to have made a supply of the property at that time and, except where the supply is an exempt supply, 
  (a) to have collected, at that time, tax in respect of the supply equal to the amount determined by the formula is 
  (i) if the supply is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for that province, and 
  (ii) in any other case, the rate set out in subsection 165(1), is the total of 100% and the percentage determined for A, and is the fair market value of the property at that time; and 
  (b) to have acquired the property and paid that tax at that time. 
  
  ### Use of personal property transferred before 1994
  
  (4) For the purposes of this Part, where an insurer to whom personal property has been transferred from a person before 1994, in circumstances in which subsection (1) applies, begins at a particular time to use the property otherwise than in the making of a supply of the property, the following rules apply: 
  (a) the insurer is deemed to have received, immediately after the particular time, a particular supply by way of sale of the property; and 
  (b) where tax would have been payable had the property been purchased in Canada from the person for consideration at the time it was transferred, the insurer shall be deemed 
  (i) to have made, at the particular time, a taxable supply of the property and to have collected, at the particular time, tax in respect of that supply equal to the amount determined by the formula is 
  (A) if the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, and 
  (B) in any other case, the rate set out in subsection 165(1), is the total of 100% and the percentage determined for A, and is the fair market value of the property at the time it was transferred, and 
  (ii) to have paid, immediately after the particular time, tax in respect of the particular supply equal to the amount determined under subparagraph (i). 
  
  ### Use of personal property transferred after 1993
  
  (5) For the purposes of this Part, where an insurer to whom personal property has been transferred from a person after 1993, in circumstances in which subsection (1) applies, begins at a particular time to use the property otherwise than in the making of a supply of the property, 
  (a) the insurer is deemed 
  (i) to have received, immediately after the particular time, a supply by way of sale of the property, and 
  (ii) except where 
  (A) that supply is a zero-rated supply, or 
  (B) in the case of property that was, at the time it was transferred, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property, tax would not have been payable had the property been purchased in Canada from the person at that time, to have paid, immediately after the particular time, all tax payable in respect of that supply, which is deemed to be equal to the amount determined by the formula is 
  (A) the rate set out in subsection 165(1) if 
  (I) the property is situated in a participating province at the particular time, it was transferred before the day that is three years after the harmonization date for that province and tax would not have been payable had the property been purchased in Canada from the person at the time it was transferred, or 
  (II) the property is situated in a non-participating province at the particular time, and 
  (B) in any other case, the total of the rate set out in subsection 165(1) and the tax rate for the participating province in which the property is situated at the particular time, is the total of 100% and the percentage determined for A, and is the fair market value of the property at the time it was transferred; and 
  (b) where tax would have been payable had the property been purchased in Canada from the person at the time it was transferred, the insurer is deemed to have made, at the particular time, a taxable supply of the property and to have collected, at the particular time, all tax payable in respect of that supply, which is deemed to be equal to the amount determined by the formula is 
  (i) if the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, and 
  (ii) in any other case, the rate set out in subsection 165(1), is the total of 100% and the percentage determined for A, and is the fair market value of the property at the time it was transferred. 
  
  ### Sale of personal property
  
  (6) For the purposes of this Part, where an insurer to whom personal property has been transferred from a person in circumstances in which subsection (1) applies makes at any time a particular taxable supply of the property by way of sale (other than a supply deemed under this Part to have been made), the insurer was not deemed under subsection (4), (5) or (7) to have received a supply of the property at an earlier time and no tax would have been payable by the insurer had the insurer purchased the property from the person in Canada at the time it was transferred, except where 
  (a) the particular supply is made outside Canada or is a zero-rated supply, and 
  (b) the property was transferred to the insurer before 1994 or was, at the time of the transfer, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property, the insurer shall be deemed 
  (c) to have received a supply by way of sale of the property immediately before that time for consideration equal to the consideration for the particular supply, and 
  (d) except if the supply deemed under paragraph (c) to have been received is a zero-rated supply, to have paid, immediately before that time, all tax payable in respect of the supply deemed to have been received, which is deemed to be equal to the amount determined by the formula is 
  (i) if 
  (A) the property was last held by the person in a participating province before being transferred to the insurer, the property was so transferred before the day that is three years after the harmonization date for that province and the particular supply is either made outside Canada or is a zero-rated supply, or 
  (B) either the property was last held by the person in a non-participating province before being transferred or the particular supply is a supply (other than a zero-rated supply) made in a non-participating province, tax under subsection 165(1) calculated on that consideration, and 
  (ii) in any other case, the total of 
  (A) tax under subsection 165(1) calculated on that consideration, and 
  (B) tax under subsection 165(2) calculated on that consideration at the lesser of the tax rate for the participating province in which the particular supply is made and the tax rate for the participating province in which the property was last held by the person before being transferred, and is the total of all amounts each of which is an input tax credit or a rebate under this Part that the insurer was entitled to claim in respect of the property or an improvement thereto. 
  
  ### Lease of personal property
  
  (7) For the purposes of this Part, if, at a particular time, an insurer to whom personal property has been transferred from a person in circumstances in which subsection (1) applies makes a particular taxable supply of the property by way of lease, licence or similar arrangement for the first lease interval (within the meaning of subsection 136.1(1)) in respect of the arrangement, the insurer was not deemed under subsection (4) or (5) to have received a supply of the property at an earlier time and no tax would have been payable had the property been purchased in Canada from the person at the time the property was transferred, except if 
  (a) the particular supply is made outside Canada or is a zero-rated supply, and 
  (b) the property was transferred to the insurer before 1994 or was, at the time it was transferred, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property, the insurer shall be deemed 
  (c) to have received a supply by way of sale of the property immediately before the particular time, and 
  (d) except if that supply is a zero-rated supply, to have paid, immediately before the particular time, all tax payable in respect of that supply, which is deemed to be equal to 
  (i) if 
  (A) the property was last held by the person in a participating province before being transferred to the insurer, the property was so transferred before the day that is three years after the harmonization date for that province and the particular supply is either made outside Canada or is a zero-rated supply, or 
  (B) either the property was last held by the person in a non-participating province before being transferred or the particular supply is a supply (other than a zero-rated supply) made in a non-participating province, tax under subsection 165(1) calculated on the fair market value of the property at the time it was transferred, and 
  (ii) in any other case, the total of 
  (A) tax under subsection 165(1) calculated on that fair market value, and 
  (B) tax under subsection 165(2) calculated on that fair market value at the lesser of the tax rate for the participating province in which the particular supply is made and the tax rate for the participating province in which the property was last held by the person before being transferred. 
  
  ### Carrying on construction
  
  184.1 (1) In this section, a reference to a particular person carrying on construction includes a reference to the particular person engaging another person, by way of acquiring services from the other person, to carry on construction for the particular person. 
  
  ### Performance bonds
  
  (2) If a person (in this subsection referred to as the “surety”) acting as a surety under a performance bond in respect of a contract for a particular taxable supply of construction services relating to real property situated in Canada carries on the particular construction that is undertaken in full or partial satisfaction of the surety’s obligations under the bond, 
  (a) for the purposes of this Part, other than those described in paragraph (b), if the surety is entitled to receive at any time from the obligee, by reason of carrying on the particular construction, an amount (in this subsection referred to as a “contract payment”) that is not an amount the tax in respect of which was or will be required to be included in determining the net tax of the principal under the bond and is not an amount paid or payable as or on account of either tax under this Part or a tax, duty or fee payable by the obligee that is prescribed for the purposes of section 154, 
  (i) in carrying on the particular construction, the surety is deemed to be making, at the place where the particular supply was made, a taxable supply, 
  (ii) sections 150, 156 and 166 do not apply to that supply, and 
  (iii) the contract payment is deemed to be consideration for that supply; 
  (b) for the purposes of determining the extent to which property or a service is acquired, imported or brought into a participating province by the surety for consumption, use or supply in the course of commercial activities and the extent to which the property or service is consumed, used or supplied by the surety in the course of commercial activities, the carrying on of the particular construction is deemed not to be for the purpose of making a taxable supply and not to be a commercial activity of the surety; 
  (c) despite paragraph (b), if paragraph (a) deems a surety to be making a taxable supply, any property or service (each of which is, in this section, referred to as a “direct input”) that the surety acquires, imports or brings into a participating province for consumption, use or supply exclusively and directly in the course of carrying on the particular construction and not for use as capital property of the surety or in improving capital property of the surety is deemed, for the purposes of this Part other than sections 155 and 156 and Divisions IV and IV.1, to have been acquired, imported or brought in by the surety for consumption, use or supply exclusively in the course of commercial activities of the surety; and 
  (d) the total amount of all input tax credits in respect of direct inputs that the surety is entitled to claim is equal to the lesser of that total determined without reference to this paragraph and 
  (i) if 
  (A) the amount determined by the formula is 
  (I) if the supply deemed under subparagraph (a)(i) to be made by the surety is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for the participating province, and 
  (II) in any other case, the rate set out in subsection 165(1), and is the total of all contract payments (other than contract payments that are not in respect of the particular construction) exceeds 
  (B) the total of all amounts, each of which would be an input tax credit of the surety in respect of a direct input but for the fact that tax is not payable by the surety in respect of the acquisition, importation or bringing into a participating province of the direct input because of section 150 or 167 or because of the fact that the surety is deemed to have acquired or imported it, or brought it in, for consumption, use or supply exclusively in the course of commercial activities, that excess, and 
  (ii) in any other case, zero. 
  
  ### Determining credit for construction inputs
  
  (3) If a person acquires, imports or brings into a participating province property or a service for consumption, use or supply exclusively and directly in the course of carrying on construction that includes the particular construction that is undertaken in full or partial satisfaction of the person’s obligations as a surety under a performance bond and other construction, for the purposes of this section and of determining an input tax credit of the person and the total amount of all input tax credits of the person in respect of direct inputs that the person is entitled to claim, 
  (a) despite section 138, that part (in this subsection referred to as the “particular construction input”) of the property or service that is for consumption, use or supply in the course of carrying on the particular construction and the remaining part (in this subsection referred to as the “additional construction input”) of the property or service are each deemed to be a separate property or service that does not form part of the other; 
  (b) the particular construction input is deemed to have been acquired, imported or brought in, as the case may be, exclusively and directly for use in the course of carrying on the particular construction; 
  (c) the additional construction input is deemed not to have been acquired, imported or brought in, as the case may be, for consumption, use or supply in the course of carrying on the particular construction; 
  (d) the tax payable in respect of the supply, importation or bringing in, as the case may be, of the particular construction input is deemed to be equal to the amount determined by the formula is the tax payable (in this subsection referred to as the “total tax payable”) by the person in respect of the supply, importation or bringing in, as the case may be, of the property or service, determined without reference to this subsection, and is the extent (expressed as a percentage) to which the property or service was acquired, imported or brought in, as the case may be, for consumption, use or supply in the course of carrying on the particular construction; and 
  (e) the tax payable in respect of the additional construction input is deemed to be equal to the difference between the total tax payable and the amount determined under paragraph (d). 
  
  ## Property and Services for Financial Services 
  
  ### Financial services – input tax credits
  
  185 (1) If tax in respect of property or a service acquired, imported or brought into a participating province by a registrant becomes payable by the registrant at a time when the registrant is neither a listed financial institution nor a person that is a financial institution because of paragraph 149(1)(b), for the purpose of determining an input tax credit of the registrant in respect of the property or service and for the purposes of Subdivision D, to the extent (determined in accordance with subsections 141.01(2) and 141.02(6)) that the property or service was acquired, imported or brought into the province, as the case may be, for consumption, use or supply in the course of making supplies of financial services that relate to commercial activities of the registrant, 
  (a) if the registrant is a financial institution because of paragraph 149(1)(c), the property or service is deemed, despite subsections 141.01(2) and 141.02(6), to have been so acquired, imported or brought into the province for consumption, use or supply in the course of those commercial activities except to the extent that the property or service was so acquired, imported or brought into the province for consumption, use or supply in the course of activities of the registrant that relate to 
  (i) credit cards or charge cards issued by the registrant, or 
  (ii) the making of any advance, the lending of money or the granting of any credit; and 
  (b) in any other case, the property or service is deemed, despite subsections 141.01(2) and 141.02(6), to have been so acquired, imported or brought into the province for consumption, use or supply in the course of those commercial activities. 
  
  ### Financial service relating to commercial activity
  
  (2) For the purposes of subsection (1), financial services shall be deemed not to be related to commercial activities of an individual, except to the extent that the revenues and expenses relating to the services are taken into account in determining the individual’s income from a business for the purposes of the Income Tax Act.  
  
  ### Definition of unit 
  
  186 (0.1) In this section, 
  *unit* means  
  (a) in respect of a corporation, a share of the capital stock of the corporation; 
  (b) in respect of a partnership, an interest of a person in the partnership; and 
  (c) in respect of a trust, a unit of the trust. 
  
  ### Operating corporations
  
  (0.2) For the purposes of this section, a particular corporation is at a particular time an operating corporation of another person that is a corporation, partnership or trust if, at the particular time, all or substantially all of the property of the particular corporation is property that was last manufactured, produced, acquired or imported by the particular corporation for consumption, use or supply by the particular corporation exclusively in the course of its commercial activities and 
  (a) if the other person is a corporation or a trust, the particular corporation is, at the particular time, related to the other person; or 
  (b) if the other person is a partnership, the particular corporation is, at the particular time, controlled by 
  (i) the other person, 
  (ii) a corporation that is controlled by the other person, 
  (iii) a corporation that is related to a corporation described in subparagraph (ii), or 
  (iv) a combination of persons described in subparagraphs (i) to (iii). 
  
  ### Input tax credit
  
  (1) Unless subsection (2) applies, if at a particular time a registrant (in this subsection referred to as the “parent”) that is resident in Canada and that is a corporation, partnership or trust acquires, imports or brings into a participating province a particular property or service and if at the particular time a particular corporation is an operating corporation of the parent, the parent is deemed, for the purpose of determining an input tax credit of the parent, to have acquired or imported the particular property or service or brought it into the participating province, as the case may be, for use in the course of commercial activities of the parent to the extent that 
  (a) the parent acquired or imported the particular property or service or brought it into the participating province, as the case may be, for the purpose of 
  (i) selling or otherwise disposing of, purchasing or otherwise obtaining, or holding units or indebtedness of the particular corporation by the parent, or 
  (ii) redeeming, issuing or converting or otherwise modifying units or indebtedness of the particular corporation by the particular corporation; 
  (b) the parent acquired or imported the particular property or service or brought it into the participating province, as the case may be, for the purpose of issuing or selling units or indebtedness of the parent, the parent transfers to the particular corporation the proceeds from the issuance or sale by lending money to the particular corporation or by purchasing or otherwise obtaining from the particular corporation units or indebtedness of the particular corporation, and the proceeds that are transferred to the particular corporation are for use in the course of its commercial activities; or 
  (c) if at the particular time all or substantially all of the property of the parent is property that was manufactured, produced, acquired or imported by the parent for consumption, use or supply exclusively in the course of its commercial activities, property that is units or indebtedness of operating corporations of the parent or a combination of such property, the parent acquired or imported the particular property or service or brought it into the participating province, as the case may be, for the purpose of carrying on, engaging in or conducting an activity of the parent other than 
  (i) an activity that is primarily in respect of units or indebtedness of a person that is neither the parent nor an operating corporation of the parent, or 
  (ii) an activity that is carried on, engaged in or conducted in the course of making an exempt supply by the parent unless the activity is a financial service that is 
  (A) the lending or borrowing of units or indebtedness of an operating corporation of the parent, 
  (B) the issue, granting, allotment, acceptance, endorsement, renewal, processing, variation, transfer of ownership or repayment of units or indebtedness of the parent or an operating corporation of the parent, 
  (C) the provision, variation, release or receipt of a guarantee, acceptance or indemnity in respect of units or indebtedness of the parent or an operating corporation of the parent, 
  (D) the payment or receipt of money as dividends (other than patronage dividends), interest, principal, benefits, or similar receipt or payment of money in respect of units or indebtedness of the parent or an operating corporation of the parent, or 
  (E) the underwriting of units or indebtedness of an operating corporation of the parent. 
  
  ### Takeover fees
  
  (2) For the purposes of this Part, if 
  (a) a registrant that is a corporation resident in Canada (in this subsection referred to as the “purchaser”) acquires, imports or brings into a participating province a particular property or service relating to the acquisition or proposed acquisition by it of all or substantially all of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of another corporation, and 
  (b) throughout the period beginning when the performance of the particular service began or when the purchaser acquired, imported or brought into the participating province, as the case may be, the particular property and ending at the later of the times referred to in paragraph (c), all or substantially all of the property of the other corporation was property that was last manufactured, produced, acquired or imported for consumption, use or supply exclusively in the course of commercial activities, the particular property or service is deemed to have been acquired, imported or brought into the participating province for use exclusively in the course of commercial activities of the purchaser and, for the purpose of claiming an input tax credit, any tax in respect of the supply of the particular property or service to the purchaser, or the importation or bringing in of the particular property by the purchaser, is deemed to have become payable and been paid by the purchaser on the later of 
  (c) the later of the day the purchaser acquired all or substantially all of the shares and the day the intention to acquire the shares was abandoned, and 
  (d) the day the tax became payable or was paid by the purchaser. 
  
  ### Shares, etc., held by corporation
  
  (3) If at a particular time a particular corporation is an operating corporation of another corporation, all units of the particular corporation owned by, and all indebtedness of the particular corporation owed to, the other corporation are, for the purposes of this section, deemed to be, at the particular time, property that was acquired by the other corporation for use exclusively in the course of its commercial activities. 
  
  ## Bets and Games of Chance 
  
  ### Bets and games of chance
  
  187 For the purposes of this Part, where a particular person bets an amount on a game of chance, a race or other event or occurrence, the following rules apply: 
  (a) the person with whom the bet is placed is deemed to have made a supply of a service to the particular person; 
  (b) where the bet is placed in a participating province, that supply is deemed to have been made in that province; and 
  (c) the consideration for that supply is deemed to be equal to the amount determined by the formula is 100%, is 
  (i) if that supply is made in a participating province, the total of 100%, the rate set out in subsection 165(1) and the tax rate for that province, and 
  (ii) in any other case, the total of 100% and the rate set out in subsection 165(1), is the total amount in respect of the bet that is given by the particular person to the person with whom the bet is placed, including any amount given as or on account of tax imposed on the particular person under an Act of the legislature of a province or under this Part, and is the amount of any tax imposed under an Act of the legislature of a province on the particular person in respect of the amount that is bet. 
  
  ## Prizes 
  
  ### Prizes
  
  188 (1) If a commercial activity of a registrant (other than a registrant to whom subsection (5) applies) consists of taking bets or conducting games of chance and, in the course of that activity, the registrant pays an amount of money at any time in a reporting period as a prize or winnings to a bettor or a person playing or participating in the games, for the purpose of determining an input tax credit of the registrant, the registrant shall be deemed to have received at that time a taxable supply of a service for use exclusively in the activity and to have paid, at that time, tax in respect of the supply equal to the amount determined by the formula is 
  (a) if the supply is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for that province, and 
  (b) in any other case, the rate set out in subsection 165(1), is the total of 100% and the percentage determined for A, and is the amount of money paid as the prize or winnings. 
  
  ### Prizes in competitive events
  
  (2) Where, in the course of an activity that involves the organization, promotion hosting or other staging of a competitive event, a person gives a prize to a competitor in the event, 
  (a) the giving of the prize shall be deemed, for the purposes of this Part, not to be a supply; 
  (b) the prize shall be deemed, for the purposes of this Part, not to be consideration for a supply by the competitor to the person; and 
  (c) tax payable by the person in respect of any property given as the prize shall not be included in determining any input tax credit of the person for any reporting period. 
  
  ### Contributions by competitors
  
  (3) For the purposes of this Part, where a competitor in a competitive event contributes an amount to the prizes to be given to competitors in the event, the contribution shall be deemed not to be consideration for a supply. 
  
  ### Application of subsection (3)
  
  (4) Subsection (3) does not apply in respect of a contribution that is made as part of a fee or charge paid by a competitor in a competitive event for the right or privilege of participating in the event and that is not separately identified as a contribution to the prizes. 
  
  ### Net tax of prescribed registrant
  
  (5) Where a registrant is a prescribed registrant at any time in a reporting period, the registrant’s net tax for the period shall be determined in a prescribed manner. 
  
  ### Definitions
  
  188.1 (1) In this section,  
  *distributor* of an issuer means a person who  
  (a) as agent of the issuer, supplies rights of the issuer on behalf of the issuer, 
  (b) on the person’s own behalf supplies rights of the issuer, 
  (c) accepts, on behalf of the issuer, a bet on a game of chance conducted by the issuer, or 
  (d) makes a specified gaming machine supply to the issuer; ( distributeur)   
  *gaming machine* means a machine by the operation of which by a person, the person plays a game of chance in which the element of chance is provided by means of the machine, but does not include a machine that dispenses a ticket, token or other device evidencing the right to play or participate in, or receive a prize or winnings in, one or more games of chance unless the device is, for each of those games, sufficient evidence, and in the case of a printed device, contains sufficient information, to ascertain whether the holder of the device is entitled to receive a prize or winnings without reference to any other information; (appareil de jeu)   
  *issuer* means a registrant who is a prescribed registrant for the purposes of subsection 188(5); (émetteur)   
  *right* of an issuer means a right to play or participate in a game of chance conducted by the issuer; (droit)   
  *specified gaming machine supply* means a supply in respect of a gaming machine made to an issuer if  
  (a) the supply is 
  (i) of the machine, or a site at which the machine is operated, made by way of lease, licence or similar arrangement, or 
  (ii) of a service of repairing or maintaining the machine, performing functions necessary to ensure its proper operation or awarding, paying or delivering prizes won in the games of chance played by its operation, and 
  (b) under the agreement for the supply, all or part of the consideration for the supply is determined as a percentage of the proceeds of the issuer from conducting those games. ( fourniture reliée aux appareils de jeu)  
  
  ### Supply by issuer
  
  (2) For the purposes of this Part, where an issuer makes a supply of a right of the issuer to a distributor of the issuer, 
  (a) tax shall be deemed not to be payable by the distributor in respect of the supply; and 
  (b) the distributor is not entitled to any rebate under section 261 in respect of the supply. 
  
  ### Supply by distributor
  
  (3) Where a particular distributor of an issuer makes a supply of a right of the issuer, 
  (a) if the recipient of the supply is another distributor of the issuer, the supply shall be deemed, for the purposes of this Part except this section, not to have been made by the particular distributor and not to have been received by the other distributor; 
  (b) if the recipient of the supply is the issuer, the supply shall be deemed, for the purposes of this Part except this section, not to have been made by the particular distributor; and 
  (c) if the recipient of the supply is any other person, 
  (i) the supply shall be deemed, for the purposes of this Part, to be a supply made by the issuer and not by the particular distributor, and 
  (ii) any tax in respect of the supply that is collected by the particular distributor shall be deemed, for the purposes of this Part, to have been collected by the issuer, and not by the particular distributor. 
  
  ### Deemed non-supplies
  
  (4) For the purposes of this Part, 
  (a) supplies made to an issuer by a distributor of the issuer of a service in respect of 
  (i) the supply of rights of the issuer, 
  (ii) the awarding, payment or delivery of prizes won in games of chance conducted by the issuer, or 
  (iii) the maintenance or repair of equipment used by the distributor in the supplying of rights of the issuer, 
  (a.1) supplies made to an issuer by a distributor of the issuer of a service in respect of the acceptance, on behalf of the issuer, of bets on games of chance conducted by the issuer, including supplies of a service of managing, administering and carrying on the day-to-day operations of the issuer’s gaming activities that are connected with a casino of the issuer, 
  (a.2) specified gaming machine supplies made to an issuer by a distributor of the issuer, and 
  (b) supplies made by an issuer to a distributor of the issuer of a service in respect of 
  (i) the supply of rights of the issuer, or 
  (ii) the awarding, payment or delivery of prizes won in games of chance conducted by the issuer, shall be deemed not to be supplies. 
  
  ### Deemed non-consideration
  
  (5) For the purposes of this Act, 
  (a) promotional bonuses and prizes given by an issuer to a distributor of the issuer for or in respect of the supply by the distributor of rights of the issuer, and 
  (b) amounts paid to an issuer by a distributor of the issuer for or on account of damages to property of the issuer, shall be deemed not to be consideration for a supply. 
  
  ## Cryptoassets 
  
  ### Definitions
  
  188.2 (1) The following definitions apply in this section.  
  *cryptoasset* means property (other than prescribed property) that is a digital representation of value and that only exists at a digital address of a publicly distributed ledger. (cryptoactif)   
  *mining activity* means an activity of  
  (a) validating transactions in respect of a cryptoasset and adding them to a publicly distributed ledger on which the cryptoasset exists at a digital address; 
  (b) maintaining and permitting access to a publicly distributed ledger on which a cryptoasset exists at a digital address; or 
  (c) allowing computing resources to be used for the purpose of, or in connection with, performing activities described in paragraph (a) or (b) in respect of a cryptoasset. ( activité de minage)   
  *mining group* means a group of persons that, under an agreement,  
  (a) pool property or services for the performance of mining activities; and 
  (b) share mining payments in respect of the mining activities among members of the group. ( groupe de minage)   
  *mining group operator*, in respect of a mining group, means a person that coordinates, oversees or manages the mining activities of the mining group. (exploitant d’un groupe de minage)   
  *mining payment*, in respect of a mining activity, means money, property or a service that is a fee, reward or other form of payment and that is received or generated as a consequence of the mining activity being performed. (paiement de minage)  
  
  ### Acquisition, etc., for mining activities
  
  (2) For the purposes of this Part, to the extent that a person acquires, imports or brings into a participating province property or a service for consumption, use or supply in the course of, or in connection with, mining activities, the person is deemed to have acquired, imported or brought into the participating province, as the case may be, the property or service for consumption, use or supply otherwise than in the course of commercial activities of the person. 
  
  ### Use, etc., for mining activities
  
  (3) For the purposes of this Part, if a person consumes, uses or supplies property or a service in the course of, or in connection with, mining activities, that consumption, use or supply is deemed to be otherwise than in the course of commercial activities of the person. 
  
  ### Mining payment
  
  (4) For the purposes of this Part, if a person receives a mining payment in respect of a mining activity, 
  (a) the provision of the mining activity is deemed not to be a supply; 
  (b) the provision of the mining payment is deemed not to be a supply; and 
  (c) in determining an input tax credit of another person that provides the mining payment, no amount is to be included in respect of tax that becomes payable, or is paid without having become payable, by the other person in respect of any property or service acquired, imported or brought into a participating province for consumption, use or supply in the course of, or in connection with, the provision of the mining payment by the other person. 
  
  ### Exception
  
  (5) Subsections (2) to (4) do not apply in respect of a mining activity to the extent that the mining activity is performed by a particular person for another person if 
  (a) the identity of the other person is known to the particular person; 
  (b) where the mining activity is in respect of a mining group that includes the particular person, the other person is not a mining group operator in respect of the mining group; and 
  (c) where the other person is a non-resident person and is not dealing at arm’s length with the particular person, each property or service — being property or a service that is received by the other person from the particular person as a consequence of the performance of the mining activity — is supplied, or is used or consumed in the course of making a supply, by the other person to one or more persons each of which 
  (i) is a person whose identity is known to the other person, 
  (ii) deals at arm’s length with the other person, and 
  (iii) is not a mining group operator in respect of a mining group that includes the other person if the mining activity is in respect of that mining group. 
  
  ## Dues 
  
  ### Dues in respect of employment
  
  189 For the purposes of this Part, where an amount is paid by a person to an organization as 
  (a) a membership due paid to a trade union as defined 
  (i) in section 3 of the Canada Labour Code, or  
  (ii) in any Act of the legislature of a province providing for the investigation, conciliation or settlement of industrial disputes, or to an association of public servants the primary object of which is to promote the improvement of the members’ conditions of employment or work, 
  (b) a due that was, pursuant to the provisions of a collective agreement, retained by the person from an individual’s remuneration and paid to a trade union or association referred to in paragraph (a) of which the individual was not a member, or 
  (c) a due to a parity or advisory committee or similar body, the payment of which was required under the laws of a province in respect of an individual’s employment, the organization shall be deemed to have made an exempt supply to the person and the amount shall be deemed to be consideration for the supply. 
  
  ## Fees 
  
  ### Government fees
  
  189.1 For the purposes of this Part, where a person who is the holder of, or an applicant for, a right the supply of which is an exempt supply described by paragraph 20(c) of Part VI of Schedule V is required to pay to a government or municipality or a board, commission or other body established by a government or municipality an amount that is levied for the purposes of recovering the costs of administration of a regulatory program relating to the right and a failure to pay the amount would result in a denial or loss of, a restriction in the exercise of, or a change in the person’s entitlements under, the right, the government, municipality or body, as the case may be, shall be deemed to have made an exempt supply to the person and the amount shall be deemed to be consideration for that supply. 
  
  ## Foreign Conventions 
  
  ### Foreign conventions
  
  189.2 Where a sponsor of a foreign convention 
  (a) makes a supply of an admission to the convention, 
  (b) makes a supply by way of lease, licence or similar arrangement of real property for use by the recipient of the supply exclusively as the site for the promotion, at the convention, of property or services supplied by, or a business of, the recipient, or 
  (c) makes a supply of related convention supplies to a recipient of a supply referred to in paragraph (b), the supply shall be deemed to have been made otherwise than in the course of a commercial activity of the sponsor. 
  
  ## Real Property 
  
  ### Conversion to residential use
  
  190 (1) Where at any time a person begins to hold or use real property as a residential complex and 
  (a) the property was 
  (i) last acquired by the person to hold or use as a residential complex, or 
  (ii) immediately before that time, held for supply, or used or held for use as capital property, in a business or commercial activity of the person, 
  (b) immediately before that time, the property was not a residential complex, and 
  (c) the person did not engage in the construction or substantial renovation of, and is not, but for this section, a builder of, the complex, for the purposes of this Part, 
  (d) the person shall be deemed to have substantially renovated the complex, 
  (e) the renovation shall be deemed to have begun at that time and to have been substantially completed at the earlier of the time the complex is occupied by any individual as a place of residence or lodging and the time the person transfers ownership of the complex to another person, and 
  (f) except where the person is 
  (i) a particular individual who acquires the property at that time to hold or use exclusively as a place of residence of the particular individual or another individual who is related to the particular individual or who is a former spouse or common-law partner of the particular individual, or 
  (ii) a personal trust that acquires the property at that time to hold or use exclusively as a place of residence of an individual who is a beneficiary of the trust, the person shall be deemed to be a builder of the complex. 
  
  ### Idem
  
  (2) Where at any time an individual appropriates real property for the personal use or enjoyment of the individual, another individual related to the individual or a former spouse or common-law partner of the individual and, immediately before that time, the property 
  (a) was held for supply, or was used or held for use as capital property, in a business or commercial activity of the individual, and 
  (b) was not a residential complex, the individual shall, for the purposes of this Part, be deemed 
  (c) to have made and received a taxable supply by way of sale of the property immediately before that time, and 
  (d) to have paid as a recipient and to have collected as a supplier, at that time, tax in respect of the supply, calculated on the fair market value of the property at that time. 
  
  ### Lease of land for residential use
  
  (3) Where 
  (a) a person who has an interest in land makes a supply of the land by way of lease, licence or similar arrangement and the supply is an exempt supply described by section 6.1 or paragraph 7(a) of Part I of Schedule V, 
  (b) the person at any time gives possession of the land to the recipient of the supply under the arrangement, 
  (c) the last use of the land by the person before that time was not under an arrangement for a supply referred to in paragraph (a), 
  (d) the person was not deemed under subsection 200(2), 206(4) or 207(1) to have made a supply of the land at or immediately before that time, and 
  (e) the recipient of the supply is not acquiring possession of the land for the purpose of 
  (i) constructing a residential complex thereon in the course of a commercial activity, or 
  (ii) making an exempt supply of the land described by section 6.1 of Part I of Schedule V, the person shall, for the purposes of this Part, be deemed 
  (f) to have made, immediately before that time, a taxable supply by way of sale of the land and to have collected, at that time, tax in respect of the supply calculated on the fair market value of the land at that time, and 
  (g) to have received, at that time, a taxable supply by way of sale of the land and to have paid, at that time, tax in respect of that supply calculated on the fair market value of the land at that time. 
  
  ### First use of residential trailer park
  
  (4) Where 
  (a) a person makes a supply of a site in a residential trailer park of the person by way of lease, licence or similar arrangement and the supply is an exempt supply described by paragraph 7(b) of Part I of Schedule V, 
  (b) the person at any time gives possession or occupancy of the site to the recipient of the supply under the arrangement, 
  (c) none of the sites in the park were occupied immediately before that time under an arrangement for a supply referred to in paragraph (a), and 
  (d) either 
  (i) the last acquisition of the park by the person was not under an exempt supply described by section 5.3 of Part I of Schedule V and the person was not deemed 
  (A) under this subsection to have made before that time, or 
  (B) under subsection 200(2), 206(4) or 207(1) to have made at or immediately before that time a supply of land included in the park as a consequence of using the land for purposes of the park, or 
  (ii) the person was entitled, after the park or land was last acquired or deemed to have been supplied by the person, to claim an input tax credit in respect of the acquisition thereof or an improvement thereto, the person shall, for the purposes of this Part, be deemed 
  (e) to have made, immediately before that time, a taxable supply by way of sale of the park and to have collected, at that time, tax in respect of the supply calculated on the fair market value of the park at that time, and 
  (f) to have received, at that time, a taxable supply by way of sale of the park and to have paid, at that time, tax in respect of the supply calculated on the fair market value of the park at that time. 
  
  ### First use of additional area
  
  (5) Where 
  (a) a person increases the area of land included in a residential trailer park of the person, 
  (b) the person makes a supply of a site in the area of land by which the park was increased (in this subsection referred to as the “additional area”) by way of lease, licence or similar arrangement and the supply is an exempt supply described by paragraph 7(b) of Part I of Schedule V, 
  (c) the person at any time gives possession or occupancy of the site to the recipient of the supply under the arrangement, 
  (d) none of the sites in the additional area were occupied immediately before that time under an arrangement for a supply referred to in paragraph (b), and 
  (e) either 
  (i) the last acquisition of the additional area by the person was not under an exempt supply described by section 5.3 of Part I of Schedule V and the person was not deemed 
  (A) under this section to have made before that time, or 
  (B) under subsection 200(2), 206(4) or 207(1) to have made at or before that time a supply of the additional area as a consequence of using the additional area for purposes of the park, or 
  (ii) the person was entitled, after the additional area was last acquired or deemed to have been supplied by the person, to claim an input tax credit in respect of the acquisition thereof or an improvement thereto, the person shall, for the purposes of this Part, be deemed 
  (f) to have made, immediately before that time, a taxable supply by way of sale of the additional area and to have collected, at that time, tax in respect of the supply calculated on the fair market value of the additional area at that time, and 
  (g) to have received, at that time, a taxable supply by way of sale of the additional area and to have paid, at that time, tax in respect of the supply calculated on the fair market value of the additional area at that time. 
  
  ### Construction of mobile or floating home
  
  190.1 (1) For the purposes of this Part, any person who makes a supply of a mobile home or a floating home before it has been used or occupied by any individual as a place of residence or lodging shall be deemed to have engaged in the construction of the home and to have substantially completed the construction at the earlier of the time ownership of the home is transferred to the recipient of the supply and the time possession of the home is transferred to the recipient under the agreement for the supply. 
  
  ### Substantial renovation of mobile or floating home
  
  (2) For the purposes of this Part, where a person engages in the substantial renovation of a mobile home or a floating home, the home shall be deemed not to have been used or occupied, at any time before the person began to substantially renovate the home, by any individual as a place of residence or lodging. 
  
  ### Self-supply of single unit residential complex or residential condominium unit
  
  191 (1) For the purposes of this Part, where 
  (a) the construction or substantial renovation of a residential complex that is a single unit residential complex or a residential condominium unit is substantially completed, 
  (b) the builder of the complex 
  (i) gives possession or use of the complex to a particular person under a lease, licence or similar arrangement (other than an arrangement, under or arising as a consequence of an agreement of purchase and sale of the complex, for the possession or occupancy of the complex until ownership of the complex is transferred to the purchaser under the agreement) entered into for the purpose of its occupancy by an individual as a place of residence, 
  (ii) gives possession or use of the complex to a particular person under an agreement for 
  (A) the supply by way of sale of the building or part thereof in which the residential unit forming part of the complex is located, and 
  (B) the supply by way of lease of the land forming part of the complex or the supply of such a lease by way of assignment, other than an agreement for the supply of a mobile home and a site for the home in a residential trailer park, or 
  (iii) where the builder is an individual, occupies the complex as a place of residence, and 
  (c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of the complex with the particular person, is the first individual to occupy the complex as a place of residence after substantial completion of the construction or renovation, the builder shall be deemed 
  (d) to have made and received, at the later of the time the construction or substantial renovation is substantially completed and the time possession or use of the complex is so given to the particular person or the complex is so occupied by the builder, a taxable supply by way of sale of the complex, and 
  (e) to have paid as a recipient and to have collected as a supplier, at the later of those times, tax in respect of the supply calculated on the fair market value of the complex at the later of those times. 
  
  ### Self-supply of residential condominium unit
  
  (2) For the purposes of this Part, where 
  (a) the construction or substantial renovation of a residential condominium unit is substantially completed, 
  (b) the builder of the unit gives possession of the unit to a particular person who is the purchaser under an agreement of purchase and sale of the unit at a time when the condominium complex in which the unit is situated is not registered as a condominium, 
  (c) the particular person or an individual who is a tenant or licensee of the particular person is the first individual to occupy the unit as a place of residence after substantial completion of the construction or renovation, and 
  (d) the agreement of purchase and sale is at any time terminated (otherwise than by performance of the agreement) and another agreement of purchase and sale of the unit between the builder and the particular person is not entered into at that time, the builder shall be deemed 
  (e) to have made and received, at the time the agreement is terminated, a taxable supply by way of sale of the unit, and 
  (f) except where possession of the unit was transferred to the particular person before 1991, to have paid as a recipient and to have collected as a supplier, at that time, tax in respect of the supply calculated on the fair market value of the unit at that time. 
  
  ### Self-supply of multiple unit residential complex
  
  (3) For the purposes of this Part, where 
  (a) the construction or substantial renovation of a multiple unit residential complex is substantially completed, 
  (b) the builder of the complex 
  (i) gives, to a particular person who is not a purchaser under an agreement of purchase and sale of the complex, possession or use of any residential unit in the complex under a lease, licence or similar arrangement entered into for the purpose of the occupancy of the unit by an individual as a place of residence, 
  (i.1) gives possession or use of any residential unit in the complex to a particular person under an agreement for 
  (A) the supply by way of sale of the building or part thereof forming part of the complex, and 
  (B) the supply by way of lease of the land forming part of the complex or the supply of such a lease by way of assignment, or 
  (ii) where the builder is an individual, occupies any residential unit in the complex as a place of residence, and 
  (c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of a residential unit in the complex with the particular person, is the first individual to occupy a residential unit in the complex as a place of residence after substantial completion of the construction or renovation, the builder shall be deemed 
  (d) to have made and received, at the later of the time the construction or substantial renovation is substantially completed and the time possession or use of the unit is so given to the particular person or the unit is so occupied by the builder, a taxable supply by way of sale of the complex, and 
  (e) to have paid as a recipient and to have collected as a supplier, at the later of those times, tax in respect of the supply calculated on the fair market value of the complex at the later of those times. 
  
  ### Self-supply of addition to multiple unit residential complex
  
  (4) For the purposes of this Part, where 
  (a) the construction of an addition to a multiple unit residential complex is substantially completed, 
  (b) the builder of the addition 
  (i) gives, to a particular person who is not a purchaser under an agreement of purchase and sale of the complex, possession or use of any residential unit in the addition under a lease, licence or similar arrangement entered into for the purpose of the occupancy of the unit by an individual as a place of residence, 
  (i.1) gives possession or use of any residential unit in the addition to a particular person under an agreement for 
  (A) the supply by way of sale of the building or part thereof forming part of the complex, and 
  (B) the supply by way of lease of the land forming part of the complex or the supply of such a lease by way of assignment, or 
  (ii) where the builder is an individual, occupies any residential unit in the addition as a place of residence, and 
  (c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of a residential unit in the addition with the particular person, is the first individual to occupy a residential unit in the addition as a place of residence after substantial completion of the construction of the addition, the builder shall be deemed 
  (d) to have made and received, at the later of the time the construction of the addition is substantially completed and the time possession or use of the unit is so given to the particular person or the unit is so occupied by the builder, a taxable supply by way of sale of the addition, and 
  (e) to have paid as a recipient and to have collected as a supplier, at the later of those times, tax in respect of the supply calculated on the fair market value of the addition at the later of those times. 
  
  ### Reference to lease
  
  (4.1) A reference in this section to a “lease” in respect of land shall be read as a reference to a “lease, licence or similar arrangement”. 
  
  ### Exception for personal use
  
  (5) Subsections (1) to (4) do not apply to a builder of a residential complex or an addition to a residential complex where 
  (a) the builder is an individual; 
  (b) at any time after the construction or renovation of the complex or addition is substantially completed, the complex is used primarily as a place of residence for the individual, an individual related to the individual or a former spouse or common-law partner of the individual; 
  (c) the complex is not used primarily for any other purpose between the time the construction or renovation is substantially completed and that time; and 
  (d) the individual has not claimed an input tax credit in respect of the acquisition of or an improvement to the complex. 
  
  ### Exception for student residence
  
  (6) Subsections (1) to (4) do not apply to a builder of a residential complex or an addition to a residential complex where 
  (a) the builder is a university, public college or school authority; and 
  (b) the construction or renovation of the complex or addition is carried out, or the complex is acquired, primarily for the purpose of providing a place of residence for students attending the university or college or a school of the school authority. 
  
  ### Exception for communal organizations
  
  (6.1) Subsections (1) to (4) do not apply to a builder of a residential complex or an addition to a residential complex where 
  (a) the builder is a community, society or body of individuals to which section 143 of the Income Tax Act applies; and  
  (b) the construction or substantial renovation of the complex or addition is carried out exclusively for the purpose of providing a place of residence for members of the community, society or body. 
  
  ### Remote work site
  
  (7) For the purposes of this Part, where 
  (a) the builder of a residential complex or an addition to a residential complex is a registrant, 
  (b) the construction or substantial renovation of the complex or addition is carried out, or the complex is acquired, for the purpose of providing a place of residence or lodging for an individual at a location 
  (i) at which the individual is required to be in the performance of the individual’s duties as 
  (A) an employee of the registrant, 
  (B) a contractor, or an employee of the contractor, engaged by the registrant to render services to the registrant at that location, or 
  (C) a subcontractor, or an employee of the subcontractor, engaged by a contractor referred to in clause (B) to render services at that location that are acquired by the contractor for the purpose of supplying services to the registrant, and 
  (ii) at which, because of its remoteness from any established community, the individual could not reasonably be expected to establish and maintain a self-contained domestic establishment, and 
  (c) the registrant makes, under this subsection, an election in prescribed form containing prescribed information in respect of the complex or addition, until the complex is supplied by way of sale, or is supplied by way of lease, licence or similar arrangement primarily to persons who are not employees, contractors or subcontractors referred to in subparagraph (b)(i) who are acquiring the complex or residential units therein in the circumstances described in that subparagraph or individuals who are related to such employees, contractors or subcontractors, the supply of the complex or a residential unit in the complex as a place of residence or lodging is deemed not be a supply and any occupation of the complex or unit as a place of residence or lodging is deemed not to be occupation as a place of residence or lodging. 
  (8)  [Repealed, 1993, c. 27, s. 56]  
  
  ### Substantial completion
  
  (9) For the purposes of this section, the construction or substantial renovation of a multiple unit residential complex or a condominium complex, or the construction of an addition to a multiple unit residential complex, shall be deemed to be substantially completed not later than the day all or substantially all of the residential units in the complex or addition are occupied after the construction or substantial renovation is begun. 
  
  ### Transfer of possession attributed to builder
  
  (10) For the purposes of this section, if 
  (a) a builder of a residential complex or an addition to a multiple unit residential complex makes a supply of the complex or a residential unit in the complex or addition by way of lease, licence or similar arrangement and the supply is an exempt supply included in section 6.1 or 6.11 of Part I of Schedule V, 
  (b) the recipient of the supply is acquiring the complex or unit for use or supply in the course of making exempt supplies and, as part of an exempt supply, possession or use of the complex, unit or residential units in the complex is given by the recipient under a lease, licence or similar arrangement under which occupancy of the complex or unit is given to an individual as a place of residence or lodging, and 
  (c) the builder at any time gives possession of the complex or unit to the recipient under the arrangement, the builder shall be deemed to have at that time given possession of the complex or unit to an individual under a lease, licence or similar arrangement entered into for the purpose of its occupancy by an individual as a place of residence. 
  
  ### Definitions
  
  191.1 (1) The definitions in this subsection apply in this section.  
  *government funding*, in respect of a residential complex, means an amount of money (including a forgivable loan but not including any other loan or a refund or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) paid or payable by  
  (a) a grantor, or 
  (b) an organization that received the amount from a grantor or another organization that received the amount from a grantor, to a builder of the complex or of an addition thereto for the purpose of making residential units in the complex available to individuals referred to in paragraph (2)(b). ( subvention)   
  *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 band (within the meaning assigned by section 2 of the Indian Act);  
  (c) a corporation that is controlled by a government, a municipality or a band referred to in paragraph (b) and one of the main purposes of which is to fund charitable or non-profit endeavours; and 
  (d) a trust, board, commission or other body that is established by a government, municipality, band referred to in paragraph (b) or corporation described in paragraph (c) and one of the main purposes of which is to fund charitable or non-profit endeavours. ( subventionneur)  
  
  ### Subsidized residential complexes
  
  (2) For the purposes of subsections 191(1) to (4), where 
  (a) a builder of a residential complex or an addition thereto is deemed under any of subsections 191(1) to (4) to have, at any time, made and received a supply of the complex or addition, 
  (b) possession or use of at least 10% of the residential units in the complex is intended to be given for the purpose of their occupancy as a place of residence or lodging by 
  (i) seniors, 
  (ii) youths, 
  (iii) students, 
  (iv) individuals with a disability, 
  (v) individuals in distress or individuals in need of assistance, 
  (vi) individuals whose eligibility for occupancy of the units as a place of residence or lodging, or for reduced payments in respect of their occupancy as a place of residence or lodging, is dependent on a means or income test, 
  (vii) individuals for whose benefit no other persons (other than public sector bodies) pay consideration for supplies that include giving possession or use of the units for occupancy by the individuals as a place of residence or lodging 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 
  (viii) any combination of individuals described in any of subparagraphs (i) to (vii), and 
  (c) except where the builder is a government or a municipality, the builder, at or before that time, has received or can reasonably expect to receive government funding in respect of the complex, the amount of tax in respect of the supply calculated on the fair market value of the complex or addition, as the case may be, is deemed to be equal to the greater of 
  (d) the amount that would, but for this subsection, be the tax calculated on that fair market value, and 
  (e) the amount determined by the formula is the total of all amounts each of which is an amount determined by the formula is an amount of tax, calculated at a particular rate, that was payable under subsection 165(1) or section 212, 218 or 218.01 by the builder in respect of an acquisition of real property that forms part of the complex or addition or in respect of an acquisition or importation of an improvement to real property that forms part of the complex or addition, is the rate set out in subsection 165(1) at the time referred to in paragraph (a), and is the particular rate, is the total of all amounts each of which is an amount determined by the formula is an amount (other than an amount referred to in the description of E) that would have been payable as tax, calculated at a particular rate, under subsection 165(1) or section 212, 218 or 218.01 by the builder in respect of an acquisition or importation of an improvement to real property that forms part of the complex or addition but for the fact that the improvement was acquired or imported for consumption, use or supply exclusively in the course of commercial activities of the builder, is the rate set out in subsection 165(1) at the time referred to in paragraph (a), and is the particular rate, is 
  (i) if the complex or addition is situated in a participating province, the total of all amounts each of which is an amount determined by the formula is an amount of tax, calculated at a particular rate, that was payable under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 by the builder in respect of an acquisition of real property that forms part of the complex or addition or in respect of an acquisition, importation or bringing into the participating province of an improvement to real property that forms part of the complex or addition, is the tax rate for the participating province at the time referred to in paragraph (a), and is the particular rate, and 
  (ii) in any other case, zero, and is 
  (i) if the complex or addition is situated in a participating province, the total of all amounts each of which is an amount determined by the formula is an amount (other than an amount referred to in the description of K) that would have been payable as tax, calculated at a particular rate, under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 by the builder in respect of an acquisition, importation or bringing into the participating province of an improvement to real property that forms part of the complex or addition but for the fact that the improvement was acquired, imported or brought into the participating province for consumption, use or supply exclusively in the course of commercial activities of the builder, is the tax rate for the participating province at the time referred to in paragraph (a), and is the particular rate, and 
  (ii) in any other case, zero. 
  
  ### Non-substantial renovation
  
  192 For the purposes of this Part, where in the course of a business of making supplies of real property a person renovates or alters a residential complex of the person and the renovation or alteration is not a substantial renovation, the person shall be deemed 
  (a) to have made and received a taxable supply, in the province in which the complex is situated and at the earlier of the time the renovation is substantially completed and the time ownership of the complex is transferred, for consideration equal to the total of all amounts each of which is an amount in respect of the renovation or alteration (other than an amount of consideration paid or payable by the person for a financial service or for any property or service in respect of which the person is required to pay tax) that would be included in determining the adjusted cost base to the person of the complex for the purposes of the Income Tax Act if the complex were capital property of the person and the person were a taxpayer under that Act; and  
  (b) to have paid as a recipient and to have collected as a supplier, at that time, tax in respect of the supply, calculated on the total determined under paragraph (a). 
  
  ### New housing — assignment of agreement
  
  192.1 If a taxable supply by way of sale of a single unit residential complex (as defined in subsection 254(1)) or of a residential condominium unit is made in Canada under an agreement of purchase and sale (in this section referred to as the “purchase agreement”) entered into with a builder of the single unit residential complex or of the residential condominium unit and if another supply by way of assignment of the purchase agreement is made by a person (other than the builder) under another agreement, then the following rules apply for the purposes of this Part:  
  (a) the other supply is deemed to be a taxable supply, by way of sale, of real property that is an interest in the single unit residential complex or residential condominium unit; and 
  (b) the consideration for the other supply is deemed to be equal to the amount determined by the formula is the consideration for the other supply as otherwise determined for the purposes of this Part, and is 
  (i) if the other agreement indicates in writing that a part of the consideration for the other supply is attributable to the reimbursement of a deposit paid under the purchase agreement, the part of the consideration for the other supply, as otherwise determined for the purposes of this Part, that is solely attributable to the reimbursement of the deposit paid under the purchase agreement, and 
  (ii) in any other case, zero. 
  
  ## Real Property Credits 
  
  ### Sale of real property
  
  193 (1) Subject to subsection (2.1), if at a particular time a registrant makes a particular taxable supply of real property by way of sale, other than 
  (a) a supply deemed under subsection 206(5) or 207(2) to have been made, or 
  (b) a supply made by a public sector body (other than a financial institution) of property in respect of which an election by the body under section 211 is not in effect at the particular time, the registrant may, notwithstanding section 170 and Subdivision D, claim an input tax credit for the reporting period in which tax in respect of the particular taxable supply becomes payable or is deemed to have been collected, as the case may be, equal to the amount determined by the formula is the lesser of 
  (a) the basic tax content of the property at the particular time; and 
  (b) the tax that is or would, in the absence of section 167 or 167.11, be payable in respect of the particular taxable supply, and is the percentage that, immediately before the particular time, the use of the property otherwise than in commercial activities of the registrant was of the total use of the property. 
  
  ### Sale by public sector bodies
  
  (2) Subject to subsection (2.1), if at a particular time a registrant that is a public sector body (other than a financial institution) makes a particular taxable supply of real property by way of sale (other than a supply that is deemed under subsection 200(2) or 206(5) to have been made) and, immediately before the time tax becomes payable in respect of the particular taxable supply, the property was not used by the registrant primarily in commercial activities of the registrant, except where subsection (1) applies, the registrant may, despite section 170 and Subdivision D, claim an input tax credit for the reporting period in which tax in respect of the particular taxable supply became payable or is deemed to have been collected, as the case may be, equal to the lesser of 
  (a) the basic tax content of the property at the particular time; and 
  (b) the tax that is or would, but for section 167, be payable in respect of the particular taxable supply. 
  
  ### Limitation
  
  (2.1) If the particular taxable supply of property referred to in subsection (1) or (2) is made at a particular time by a public sector body to another person with whom the public sector body is not dealing at arm’s length, the value of A in subsection (1) and the input tax credit under subsection (2) shall not exceed the lesser of 
  (a) the basic tax content of the property at the particular time, and 
  (b) the amount determined by the formula is the basic tax content of the property at the particular time, is the amount that would be the basic tax content of the property at that time if that amount were determined without reference to the description of B in paragraph (a) and the description of K in paragraph (b) of the definition 
  *basic tax content* in subsection 123(1), and  is the tax that is or would, in the absence of section 167, be payable in respect of the particular taxable supply. 
  
  ### Redemption of real property
  
  (3) Where 
  (a) for the purposes of satisfying in whole or in part a debt or obligation owing by a person (in this subsection referred to as the “debtor”), a creditor exercises a right under an Act of Parliament or the legislature of a province or an agreement relating to a debt security to cause the supply of real property, and 
  (b) under the Act or the agreement, the debtor has a right to redeem the property, the following rules apply: 
  (c) the debtor is not entitled to claim an input tax credit under this section in respect of the property unless the time limit for redeeming the property has expired and the debtor has not redeemed the property, and 
  (d) where the debtor is entitled to claim the input tax credit, that input tax credit is for the reporting period in which the time limit for redeeming the property expires. 
  
  ## Statement as to Use of Real Property 
  
  ### Incorrect statement
  
  194 For the purposes of this Part, where a supplier makes a taxable supply by way of sale of real property and incorrectly states or certifies in writing to the recipient of the supply that the supply is an exempt supply described in any of sections 2 to 5.3, 8 and 9 of Part I of Schedule V, except where the recipient knows or ought to know that the supply is not an exempt supply, 
  (a) the tax payable in respect of the supply is deemed to be equal to the amount determined by the formula is 
  (i) if tax under subsection 165(2) was payable in respect of the supply, the total of the rate set out in subsection 165(1) and the tax rate for the participating province in which the supply was made, and 
  (ii) in any other case, the rate set out in subsection 165(1), is the total of 100% and the percentage determined for A, and is the consideration for the supply; and 
  (b) the supplier shall be deemed to have collected, and the recipient shall be deemed to have paid, that tax on the earlier of the day ownership of the property was transferred to the recipient and the day possession of the property was transferred to the recipient under the agreement for the supply. 
  
  # SUBDIVISION D 
  
  ## Capital Property 
  
  ### Prescribed property
  
  195 For the purposes of this Part, where a person acquires or imports prescribed property or brings it into a participating province for use as capital property of the person, the property is deemed to be personal property and not real property. 
  
  ### Residential complex not capital property
  
  195.1 (1) For the purposes of this Part, other than sections 148 and 249, a residential complex shall be deemed not to be, at a particular time, capital property of a builder of the complex unless 
  (a) at or before the particular time, the construction or substantial renovation of the complex was substantially completed; and 
  (b) at or after the time the construction or substantial renovation of the complex was substantially completed and at or before the particular time, the builder received an exempt supply of the complex or was deemed under section 191 to have received a taxable supply of the complex. 
  
  ### Addition not capital property
  
  (2) For the purposes of this Part, other than sections 148 and 249, an addition to a multiple unit residential complex shall be deemed not to be, at a particular time, capital property of a builder of the addition unless 
  (a) at or before the particular time, the construction of the addition was substantially completed; and 
  (b) at or after the time the construction of the addition was substantially completed and at or before the particular time, the builder received an exempt supply of the complex or was deemed under subsection 191(4) to have received a taxable supply of the addition. 
  
  ### Last acquisition or importation
  
  195.2 (1) For the purposes of this Part (other than Division III and Schedule VII), an importation of property shall not be considered in determining the last acquisition or importation of the property 
  (a) where tax under Division III was not paid on the property in respect of that importation because the property was included in section 1 or 9 of Schedule VII or the property was included in section 8 of that Schedule and was classified under heading 98.13 or 98.14 of Schedule I to the Customs Tariff, or would have been so classified but for Note 11(a) to Chapter 98 of that Schedule;  
  (b) where tax under Division III on the property in respect of that importation was calculated on a value determined under the Value of Imported Goods (GST/HST) Regulations, other than section 8 or 12 or a prescribed section of those Regulations; or  
  (c) in prescribed circumstances. 
  
  ### Importation of improvement
  
  (2) For the purposes of this Part (other than Division III and Schedule VII), where a person imports capital property of the person that was improved outside Canada and tax under Division III is payable on a value, determined under the Value of Imported Goods (GST/HST) Regulations, that does not exceed the value of the improvement, the importation shall be deemed to be an importation of the improvement.  
  
  ### Application before 1991
  
  (3) For the purposes of determining the last acquisition or importation of property, this Part shall be deemed to have been in force at all times before 1991. 
  
  ### Intended and actual use
  
  196 (1) For the purposes of this Part, where a person at any time acquires or imports property for use to a particular extent in a particular way, the person shall be deemed to use the property immediately after that time to the particular extent in the particular way. 
  
  ### Intended and actual use
  
  (2) For the purposes of this Part, if a person at any time brings capital property of the person into a particular participating province from another province and the person was using the property to a particular extent in a particular way immediately after the property or a portion of the property was last acquired, imported or brought into a participating province by the person, the person is deemed to bring it into the particular participating province for use to the particular extent in the particular way. 
  
  ### Appropriation to use as capital property
  
  196.1 For the purposes of this Part, where a registrant, at a particular time, appropriates property of the registrant for use as capital property of the registrant or in improving capital property of the registrant and, immediately before the particular time, the property was not capital property of the registrant or an improvement to capital property of the registrant, 
  (a) the registrant shall be deemed 
  (i) to have made, immediately before the particular time, a supply of the property by way of sale, and 
  (ii) where the property was last acquired or imported by the registrant before the particular time for consumption, use or supply, or was consumed or used before the particular time, in the course of commercial activities of the registrant, to have collected, at the particular time, tax in respect of the supply calculated on the fair market value of the property at the particular time; and 
  (b) the registrant shall be deemed to have received, at the particular time, a supply of the property by way of sale and to have paid, at the particular time, tax in respect of the supply equal to 
  (i) where the property was last acquired or imported by the registrant before the particular time for consumption, use or supply, or was consumed or used before the particular time, in the course of commercial activities of the registrant and the supply is not an exempt supply, tax calculated on the fair market value of the property at the particular time, and 
  (ii) in any other case, the basic tax content of the property at the particular time. 
  
  ### Insignificant changes in use
  
  197 For the purposes of subsections 206(2), (3) and (5), 207(2) and 208(2) and (3), where in any period 
  (a) beginning on the later of 
  (i) the day a registrant last acquired or imported property for use as capital property of the registrant, and 
  (ii) the day subsection 206(3) or (5), 207(2) or 208(3) last applied to the property, and 
  (b) ending at any time after that day, the extent to which the registrant changed the use of the property in commercial activities of the registrant is less than 10% of the total use of the property, the registrant shall be deemed to have used the property throughout that period to the same extent and in the same way as the registrant used the property at the beginning of that period, unless the registrant is an individual who began in that period to use the property primarily for the personal use and enjoyment of the individual or a related individual. 
  
  ### Use in supply of financial services
  
  198 For the purposes of this Part, to the extent that a registrant who is neither a listed financial institution nor a person who is a financial institution because of paragraph 149(1)(b) uses property as capital property of the registrant in the making of supplies of financial services that relate to commercial activities of the registrant, 
  (a) where the registrant is a financial institution because of paragraph 149(1)(c), the registrant is deemed to use the property in those commercial activities only to the extent that the registrant does not use the property in activities of the registrant that relate to 
  (i) credit cards or charge cards issued by the registrant, or 
  (ii) the making of any advance, the lending of money or the granting of any credit; and 
  (b) in any other case, the registrant is deemed to use the property in those commercial activities. 
  
  ### Basic tax content of property of a municipality
  
  198.1 (1) In the case of property of a municipality that is not a listed financial institution, the basic tax content of the property at any time after January 30, 2004 shall be determined by applying the following rules: 
  (a) in determining the value of A in paragraph (a) of the definition 
  *basic tax content* in subsection 123(1), an amount of tax described by any of subparagraphs (i) to (v) of the description of A may be included only if the tax  
  (i) became payable, or would have become payable in the absence of the circumstances described in subparagraph (iii) or (iv) of that description, after January 2004 under subsection 165(1) or section 212 or 218 in respect of the property, or 
  (ii) was payable, or would have been payable in the absence of the circumstances described in subparagraph (iii) or (iv) of that description, under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 in respect of the property; 
  (b) in determining the value of B in paragraph (a) of the definition 
  *basic tax content* in subsection 123(1), any reference in the description of B to tax referred to in a subparagraph of the description of A shall be read to include an amount of tax only if the tax is included in the determination of the value of A in accordance with paragraph (a) of this subsection;  
  (c) in determining the value of J in paragraph (b) of the definition 
  *basic tax content* in subsection 123(1),  
  (i) paragraphs (a) and (b) of this subsection shall be applied in determining the basic tax content referred to in subparagraph (i) of the description of J, and 
  (ii) an amount of tax described by any of subparagraphs (iii) to (vi) of the description of J may be included only if the tax 
  (A) became payable, or would have become payable in the absence of the circumstances described in subparagraph (iv) or (v) of that description, after January 2004 under subsection 165(1) or section 212 or 218 in respect of the improvements to the property, or 
  (B) was payable, or would have been payable in the absence of the circumstances described in subparagraph (iv) or (v) of that description, under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 in respect of improvements to the property; and 
  (d) in determining the value of K in paragraph (b) of the definition 
  *basic tax content* in subsection 123(1), any reference in the description of K to tax referred to in a subparagraph of the description of J shall be read to include an amount of tax only if the tax is included in the determination of the value of J in accordance with paragraph (c) of this subsection.  
  
  ### Application to designated municipality
  
  (2) In subsection (1), 
  *municipality* includes a person designated to be a municipality for the purposes of section 259 and, in the case of a person so designated, 
  *property* means property that, on January 31, 2004, was property of the person and was consumed, used or supplied by the person otherwise than exclusively in the course of activities that are not activities specified in the designation.  
  198.2  [Repealed, 1997, c. 10, s. 188]  
  
  ## Capital Personal Property 
  
  ### Application
  
  199 (1) This section does not apply in respect of 
  (a) property of a registrant that is a financial institution or a prescribed registrant; or 
  (b) a passenger vehicle or an aircraft of a registrant who is an individual or a partnership. 
  
  ### Acquisition of capital personal property
  
  (2) Where a registrant acquires or imports personal property or brings it into a participating province for use as capital property, 
  (a) the tax payable by the registrant in respect of the acquisition, importation or bringing in of the property shall not be included in determining an input tax credit of the registrant for any reporting period unless the property was acquired, imported or brought in, as the case may be, for use primarily in commercial activities of the registrant; and 
  (b) where the registrant acquires, imports or brings in the property for use primarily in commercial activities of the registrant, the registrant is deemed, for the purposes of this Part, to have acquired, imported or brought in the property, as the case may be, for use exclusively in commercial activities of the registrant. 
  
  ### Beginning use of personal property
  
  (3) For the purposes of this Part, where a registrant last acquired or imported personal property for use as capital property of the registrant but not for use primarily in commercial activities of the registrant and the registrant begins, at a particular time, to use the property as capital property primarily in commercial activities of the registrant, except where the registrant becomes a registrant at the particular time, the registrant shall be deemed 
  (a) to have received, at the particular time, a supply of the property by way of sale; and 
  (b) except where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the basic tax content of the property at the particular time. 
  
  ### Improvement to capital personal property
  
  (4) Where a registrant acquires, imports or brings into a participating province an improvement to personal property that is capital property of the registrant, tax payable by the registrant in respect of the acquisition, importation or bringing in shall not be included in determining an input tax credit of the registrant unless, at the time that tax becomes payable or is paid without having become payable, the capital property is used primarily in commercial activities of the registrant. 
  
  ### Use of musical instrument
  
  (5) For the purposes of subsections (2) and (3) and 200(2) and (3), where an individual who is a registrant uses a musical instrument that is capital property of the individual in an employment of the individual or in a business carried on by a partnership of which the individual is a member, that use is deemed to be use in commercial activities of the individual. 
  
  ### Application
  
  200 (1) This section does not apply in respect of 
  (a) property of a registrant that is a financial institution or a prescribed registrant; or 
  (b) a passenger vehicle or an aircraft of a registrant who is an individual or a partnership. 
  
  ### Ceasing use of personal property
  
  (2) For the purposes of this Part, where a registrant last acquired or imported personal property for use as capital property primarily in commercial activities of the registrant and the registrant begins, at a particular time, to use the property primarily for other purposes, the registrant shall be deemed 
  (a) to have made, immediately before the particular time, a supply of the property by way of sale and to have collected, at the particular time, tax in respect of the supply equal to the basic tax content of the property at the particular time; and 
  (b) to have received, at the particular time, a supply of the property by way of sale and to have paid, at the particular time, tax in respect of the supply equal to the basic tax content of the property at the particular time. 
  
  ### Sale of personal property
  
  (3) Despite paragraph 141.1(1)(a) but subject to section 141.2, for the purposes of this Part, if a registrant (other than a government) makes a supply by way of sale of personal property that is capital property of the registrant and, before the earlier of the time that ownership of the property is transferred to the recipient and the time that possession of the property is transferred to the recipient under the agreement for the supply, the registrant was last using the property otherwise than primarily in commercial activities of the registrant, the supply is deemed to have been made in the course of activities of the registrant that are not commercial activities. 
  
  ### Sale of personal property of a government
  
  (4) Despite subsection 141.1(1) but subject to section 141.2, for the purposes of this Part, if a supplier that is a government makes a supply by way of sale of particular personal property that is capital property of the supplier, 
  (a) if 
  (i) it is the case that 
  (A) the supplier is an agent of Her Majesty in right of Canada that is prescribed for the purposes of the definition 
  *specified Crown agent* in subsection 123(1),  
  (B) the supplier is an agent of Her Majesty in right of a province that is prescribed for the purposes of that definition and the particular property is prescribed property, or 
  (C) the supplier is an agent of Her Majesty in right of a province and, if the particular property was last acquired or imported by the supplier after 1990 for consumption, use or supply in the course of particular activities of the supplier, the particular property was so acquired or imported in a period during which, because of an agreement under section 32 of the Federal-Provincial Fiscal Arrangements Act entered into by the government of the province, the supplier generally paid tax in respect of property or services acquired or imported for consumption, use or supply in the course of the particular activities and did not recover that tax pursuant to any entitlement under that Act or the Constitution Act, 1867,  
  (ii) the supplier is a registrant, and 
  (iii) before the earlier of the time that ownership of the particular property is transferred to the recipient of the supply and the time possession of the particular property is transferred to the recipient under the agreement for the supply, the supplier was last using the particular property otherwise than primarily in commercial activities of the supplier, the supply is deemed to have been made in the course of activities of the supplier that are not commercial activities; and 
  (b) if none of clauses (a)(i)(A) to (C) apply, the supply is deemed to have been made in the course of commercial activities of the supplier. 
  
  ### Credit on sale of personal property of a municipality
  
  200.1 If a registrant is a municipality or a person designated to be a municipality for the purposes of section 259, subsection 193(2) applies, with any modifications that the circumstances require, to personal property (other than a passenger vehicle, an aircraft of a registrant who is an individual or a partnership and property of a person designated to be a municipality for the purposes of section 259 that is not designated municipal property of the person) acquired or imported by the registrant for use as capital property of the registrant as if the personal property were real property. 
  
  ### Value of passenger vehicle
  
  201 For the purpose of determining an input tax credit of a registrant in respect of a passenger vehicle that the registrant at a particular time acquires, imports or brings into a participating province for use as capital property in commercial activities of the registrant, the tax payable by the registrant in respect of the acquisition, importation or bringing in, as the case may be, of the vehicle is deemed to be the lesser of 
  (a) the tax that was payable by the registrant in respect of the acquisition, importation or bringing in, as the case may be, of the vehicle; and 
  (b) the amount determined by the formula is the tax that would be payable by the registrant in respect of the vehicle if the registrant acquired the vehicle at the particular time 
  (i) where the registrant is bringing the vehicle into a participating province at the particular time, in that province, and 
  (ii) in any other case, in Canada for consideration equal to the amount that would, under whichever of paragraphs 13(7)(g) to (i) of the Income Tax Act is applicable in respect of the vehicle, be deemed to be, for the purposes of section 13 of that Act, the capital cost to a taxpayer of a passenger vehicle in respect of which that paragraph applies if the formulae in paragraph 7307(1)(b) and subsection 7307(1.1) of the Income Tax Regulations were read without reference to the description of B,  is 
  (i) if the registrant is deemed under subsection 199(3) or 206(2) or (3) to have acquired the vehicle or a portion of it at the particular time, or the registrant is bringing the vehicle into a participating province at the particular time, and the registrant was previously entitled to claim a rebate under section 259 in respect of the vehicle or any improvement to it, the difference between 100% and the specified percentage (within the meaning of that section) that applied in determining the amount of that rebate, and 
  (ii) in any other case, 100%; and is 
  (i) where the registrant is bringing the vehicle into a participating province at the particular time, the total of all input tax credits that the registrant was entitled to claim in respect of the last acquisition or importation of the vehicle by the registrant or in respect of any improvement to it acquired or imported by the registrant after the vehicle was last so acquired or imported, and 
  (ii) in any other case, zero. 
  
  ### Improvement to passenger vehicle
  
  202 (1) If the consideration paid or payable by a registrant for an improvement to a passenger vehicle of the registrant increases the cost to the registrant of the vehicle to an amount that exceeds the amount that would, under whichever of paragraphs 13(7)(g) to (i) of the Income Tax Act is applicable in respect of the vehicle, be deemed to be, for the purposes of section 13 of that Act, the capital cost to a taxpayer of a passenger vehicle in respect of which that paragraph applies if the formulae in paragraph 7307(1)(b) and subsection 7307(1.1) of the Income Tax Regulations were read without reference to the description of B, the tax calculated on that excess shall not be included in determining an input tax credit of the registrant for any reporting period of the registrant.  
  
  ### Input tax credit on passenger vehicle or aircraft
  
  (2) Where a registrant who is an individual or a partnership acquires or imports a passenger vehicle or aircraft or brings it into a participating province for use as capital property of the registrant, the tax payable (other than tax deemed to be payable under subsection (4)) by the registrant in respect of that acquisition, importation or bringing in, as the case may be, shall not be included in determining an input tax credit of the registrant unless the vehicle or aircraft was acquired or imported, or brought in, as the case may be, by the registrant for use exclusively in commercial activities of the registrant. 
  
  ### Improvement to passenger vehicle or aircraft
  
  (3) Where a registrant who is an individual or a partnership acquires, imports or brings into a participating province an improvement to a passenger vehicle or aircraft that is capital property of the registrant, the tax payable by the registrant in respect of the improvement shall not be included in determining an input tax credit of the registrant unless, throughout the period 
  (a) beginning on the later of the day the vehicle or aircraft, as the case may be, was originally acquired or imported by the registrant and the day the individual or partnership becomes a registrant, and 
  (b) ending on the day tax in respect of the improvement becomes payable or is paid without having become payable, the vehicle or aircraft was used exclusively in commercial activities of the registrant. 
  
  ### Non-exclusive use of passenger vehicle or aircraft
  
  (4) Notwithstanding subsections (2) and (3), where a registrant who is an individual or a partnership at any time acquires or imports a passenger vehicle or aircraft, or brings it into a participating province, for use as capital property of the registrant but not for use exclusively in commercial activities of the registrant and tax is payable by the registrant in respect of the acquisition, importation or bringing in, as the case may require, for the purpose of determining an input tax credit of the registrant, the registrant is deemed 
  (a) to have acquired the vehicle or aircraft on the last day of each taxation year of the registrant ending after that time; and 
  (b) to have paid, on that day, tax in respect of the acquisition of the vehicle or aircraft equal to the amount determined by the formula is 
  (i) in the case of an acquisition or importation in respect of which tax is payable only under subsection 165(1) or section 212 or 218, as the case may require, and in the case of an acquisition deemed to have been made under subsection (5) of a vehicle or aircraft in respect of which no tax under subsection 165(2) was payable by the registrant, the amount determined by the formula is the rate set out in subsection 165(1), and is the total of 100% and the percentage determined for C, 
  (ii) in the case of the bringing into a participating province of the vehicle or aircraft from a non-participating prov­ince and in the case of an acquisition in respect of which tax under section 220.06 is payable, the amount determined by the formula is the tax rate for the participating province, and is the total of 100% and the percentage determined for E, 
  (iii) in the case of an acquisition or importation in respect of which tax is payable under subsection 165(2), section 212.1 or subsection 218.1(1) calculated at the tax rate for a participating province, the amount determined by the formula is the total of the rate set out in subsection 165(1) and the tax rate for the participating province, and is the total of 100% and the percentage determined for G, and 
  (iv) in any other case, the amount determined by the formula is the rate determined in prescribed manner, and is the total of 100% and the percentage determined for I, and is 
  (i) where an amount in respect of the vehicle or aircraft is required by paragraph 6(1)(e) or subsection 15(1) of the Income Tax Act to be included in computing the income of an individual for a taxation year of the individual ending in that taxation year of the registrant, nil, and  
  (ii) in any other case, the capital cost allowance in respect of the vehicle or aircraft that was deducted under the Income Tax Act in computing the income of the registrant from those commercial activities for that taxation year of the registrant.  
  
  ### Deemed acquisition
  
  (5) For the purpose of subsection (4), where at any time a registrant is deemed under section 203 to have made a taxable supply of a passenger vehicle or aircraft, 
  (a) the registrant shall be deemed to have acquired the vehicle or aircraft at that time; and 
  (b) tax shall be deemed to be payable at that time by the registrant in respect of the vehicle or aircraft. 
  
  ### Sale of passenger vehicle
  
  203 (1) If a registrant (other than a municipality), at a particular time in a reporting period of the registrant, makes a taxable supply by way of sale of a passenger vehicle (other than a vehicle that is designated municipal property of a person designated at the particular time to be a municipality for the purposes of section 259) that, immediately before the particular time, was used as capital property in commercial activities of the registrant, the registrant may, despite section 170, paragraph 199(2)(a) and subsections 199(4) and 202(1), claim an input tax credit for that period equal to the amount determined by the formula is the basic tax content of the vehicle at the particular time; is the total of 
  (a) the tax that was payable by the registrant in respect of the last acquisition or importation of the vehicle by the registrant, 
  (b) where the registrant brought the vehicle into a participating province after it was last acquired or imported by the registrant, the tax that was payable by the registrant in respect of bringing it into that province, and 
  (c) the tax that was payable by the registrant in respect of improvements to the vehicle acquired, imported or brought into a participating province by the registrant after the property was last acquired or imported; and is the total of all input tax credits that the registrant was entitled to claim in respect of any tax included in the total for B. 
  
  ### Ceasing to use passenger vehicle, etc.
  
  (2) For the purposes of this Part, where a registrant who is an individual or a partnership acquired or imported a passenger vehicle or an aircraft for use as capital property exclusively in commercial activities of the registrant and the registrant begins, at any time, to use the vehicle or aircraft otherwise than exclusively in commercial activities of the registrant, the registrant shall be deemed to have 
  (a) made, immediately before that time, a taxable supply by way of sale of the vehicle or aircraft; and 
  (b) collected, at that time, tax in respect of the supply equal to the basic tax content of the vehicle or aircraft immediately before that time. 
  
  ### Sale of passenger vehicle, etc.
  
  (3) Despite paragraph 141.1(1)(a), for the purposes of this Part, a supply shall be deemed not to be a taxable supply if 
  (a) an individual or a partnership (other than a municipality) who is a registrant makes, at a particular time, the supply by way of sale of a passenger vehicle or an aircraft (other than a vehicle or an aircraft that is designated municipal property of a person designated at the particular time to be a municipality for the purposes of section 259) that is capital property of the registrant; and 
  (b) at any time after the individual or partnership became a registrant and before the particular time, the registrant did not use the vehicle or aircraft exclusively in commercial activities of the registrant. 
  
  ### Sale of passenger vehicle by a municipality
  
  (4) If a registrant (other than an individual or a partnership) that is a municipality or a person designated to be a municipality for the purposes of section 259, at a particular time in a reporting period of the registrant, makes a taxable supply by way of sale of a passenger vehicle (other than a vehicle of a person designated to be a municipality for the purposes of section 259 that is not designated municipal property of the person) that, immediately before the particular time, was capital property of the registrant, the registrant may, despite section 170, paragraph 199(2)(a) and subsections 199(4) and 202(1), claim an input tax credit for that period equal to the lesser of 
  (a) the amount determined by the formula is the basic tax content of the vehicle at the particular time, is the total of 
  (i) the tax that was payable by the registrant in respect of the last acquisition or importation of the vehicle by the registrant, 
  (ii) if the registrant brought the vehicle into a participating province after it was last acquired or imported by the registrant, the tax that was payable by the registrant in respect of bringing it into that province, and 
  (iii) the tax that was payable by the registrant in respect of improvements to the vehicle acquired, imported or brought into a participating province by the registrant after the property was last acquired or imported, and is the total of all input tax credits that the registrant was entitled to claim in respect of any tax included in the total for B, and 
  (b) the tax that is or would, in the absence of section 167, be payable in respect of the taxable supply. 
  
  ### Application
  
  204 (1) This section does not apply to personal property of a financial institution having a cost to the institution of $50,000 or less. 
  
  ### Personal property of a financial institution
  
  (2) Where a financial institution is a registrant, subsections 206(2) to (5) apply, with such modifications as the circumstances require, to personal property acquired or imported by the institution for use as capital property of the institution, and to improvements to personal property that is capital property of the institution, as if the personal property were real property. 
  
  ### Credit on sale
  
  (3) Where a financial institution is a registrant, subsection 193(1) applies, with such modifications as the circumstances require, to personal property (other than a passenger vehicle) acquired or imported by the institution for use as capital property of the institution, as if the personal property were real property. 
  
  ### Financial institution making election for exempt supplies
  
  205 (1) Where an election made by a registrant under subsection 150(1) becomes effective at a particular time, the registrant was a financial institution immediately before the particular time and, as a result of the election becoming effective, the registrant reduces at the particular time the extent to which personal property of the registrant is used as capital property in commercial activities of the registrant, subsections 193(1) and 206(4) and (5) apply, with such modifications as the circumstances require, to the reduction in use, as if the property were real property. 
  
  ### Registrant becoming financial institution
  
  (2) Where a registrant at any time becomes a financial institution and, immediately before that time, the registrant was using personal property of the registrant as capital property of the registrant, the following rules apply: 
  (a) where, immediately before that time, the registrant was not using the property primarily in commercial activities of the registrant and, immediately after that time, the property is for use in commercial activities of the registrant, the registrant shall be deemed, for the purposes of this Part, to have changed at that time the extent to which the property is used in commercial activities of the registrant, and subsection 206(2) applies, with such modifications as the circumstances require, to the change in use as if the property were real property that was not used immediately before that time in commercial activities of the registrant; and 
  (b) where, immediately before that time, the registrant was using the property primarily in commercial activities of the registrant and, immediately after that time, the property is not for use exclusively in commercial activities of the registrant, the registrant shall be deemed, for the purposes of this Part, to have changed at that time the extent to which the property is used in commercial activities of the registrant, and subsections 193(1) and 206(4) and (5) apply, with such modifications as the circumstances require, to the change in use as if the property were real property used immediately before that time exclusively in commercial activities of the registrant. 
  
  ### Registrant ceasing to be financial institution
  
  (3) Where a registrant at any time ceases to be a financial institution and, immediately before that time, the registrant was using personal property of the registrant as capital property of the registrant, the following rules apply: 
  (a) where, immediately before that time, the registrant was using the property as capital property but not exclusively in commercial activities of the registrant and, immediately after that time, the property is for use primarily in commercial activities of the registrant, the registrant shall be deemed, for the purposes of this Part, to have begun at that time to use the property exclusively in commercial activities of the registrant, and subsections 206(2) and (3) apply, with such modifications as the circumstances require, to the change in use as if the property were real property; and 
  (b) where, immediately before that time, the registrant was using the property as capital property in commercial activities of the registrant and, immediately after that time, the property is not for use primarily in commercial activities of the registrant, the registrant shall be deemed, for the purposes of this Part, to have ceased at that time to use the property in commercial activities of the registrant, and subsections 193(1) and 206(4) apply, with such modifications as the circumstances require, to the change in use as if the property were real property. 
  
  ### Acquisition of a business
  
  (4) Notwithstanding section 197, where 
  (a) in acquiring a business or part of a business from a registrant, a financial institution that is a registrant is deemed under subsection 167(1) to have acquired property for use exclusively in commercial activities of the institution, and 
  (b) immediately after the time possession of the property is transferred to the institution under the agreement for the supply of the business or part, the property is for use by the institution as capital property of the institution but not exclusively in commercial activities of the institution, subsections 193(1) and 206(4) and (5) apply, with such modifications as the circumstances require, to the change in use of the property as if the property were real property. 
  
  ### Acquisition of asset
  
  (4.1) Despite section 197, subsection 193(1) applies to the supplier of a supply of capital personal property that is made under an agreement for a qualifying supply (as defined in subsection 167.11(1)), and subsections 206(4) and (5) apply to the recipient of the supply of capital personal property, with any modifications that the circumstances require, as if the property were real property if 
  (a) the supplier and the recipient are both registrants at the time the qualifying supply is made and they make a joint election referred to in subsection 167.11(2) in respect of the qualifying supply; 
  (b) in acquiring the property, the recipient is deemed under subsection 167.11(3) to have acquired the property for use exclusively in commercial activities of the recipient; and 
  (c) immediately after the earlier of the time the ownership of the property and the time the possession of the property is transferred to the recipient under the agreement for the qualifying supply, the property is for use by the recipient as capital property of the recipient but not exclusively in commercial activities of the recipient. 
  
  ### Idem
  
  (5) Notwithstanding section 197, where 
  (a) in acquiring a business or part of a business from a registrant, a financial institution that is a registrant is deemed under subsection 167(1) to have acquired property but not for use in commercial activities of the institution, 
  (b) possession of the property is transferred to the institution under the agreement for the supply of the business or part after 1993, and 
  (c) immediately after the transfer, the property is for use by the institution as capital property of the institution in commercial activities of the institution, subsection 206(2) applies, with such modifications as the circumstances require, to the change in use of the property as if the property were real property. 
  
  ### Acquisition of asset
  
  (5.1) Despite section 197, subsection 206(2) applies to the recipient of a supply of capital personal property that is made under an agreement for a qualifying supply (as defined in subsection 167.11(1)), with any modifications that the circumstances require, as if the property were real property if 
  (a) the supplier and the recipient of the capital personal property are both registrants at the time the qualifying supply is made and they make a joint election referred to in subsection 167.11(2) in respect of the qualifying supply; 
  (b) in acquiring the property, the recipient is deemed under subsection 167.11(3) to have acquired the property for use exclusively in activities of the recipient that are not commercial activities; and 
  (c) immediately after the earlier of the time the ownership of the property and the time the possession of the property is transferred to the recipient under the agreement for the qualifying supply, the property is for use by the recipient as capital property of the recipient in commercial activities of the recipient. 
  
  ### Amalgamation
  
  (6) Where 
  (a) a particular corporation that is not a financial institution is merged or amalgamated with one or more other corporations to form a corporation (in this subsection referred to as the “new corporation”) that is a financial institution in circumstances to which section 271 applies, 
  (b) the new corporation is a registrant, and 
  (c) personal property that was capital property of the particular corporation becomes at any time the property of the new corporation as a consequence of the merger or amalgamation, subsection (2) applies to the property as if the new corporation became a financial institution at that time. 
  
  ### Winding-up
  
  (7) Where 
  (a) a particular corporation that is not a financial institution is wound up at a particular time in circumstances to which section 272 applies, 
  (b) not less than 90% of the issued shares of each class of the capital stock of the corporation were, immediately before the particular time, owned by another corporation (in this subsection referred to as the “new corporation”) that is a financial institution, 
  (c) the new corporation is a registrant, and 
  (d) personal property that was capital property of the particular corporation becomes at any time the property of the new corporation as a consequence of the winding-up, subsection (2) applies to the property as if the new corporation became a financial institution at the particular time. 
  
  ## Capital Real Property 
  
  ### Application
  
  206 (1) Subject to subsection 211(1), this section does not apply in respect of property acquired by a registrant who is 
  (a) an individual; 
  (b) a public sector body that is not a financial institution; or 
  (c) a prescribed registrant. 
  
  ### Beginning use in commercial activities
  
  (2) For the purposes of this Part, where a registrant last acquired real property for use as capital property of the registrant but not for use in commercial activities of the registrant and the registrant begins, at a particular time, to use the property as capital property in commercial activities of the registrant, except where the registrant becomes a registrant at the particular time, the registrant shall be deemed 
  (a) to have received, at the particular time, a supply of the property by way of sale; and 
  (b) except where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the basic tax content of the property at the particular time. 
  
  ### Increasing use in commercial activities
  
  (3) Where a registrant last acquired real property for use as capital property in commercial activities of the registrant and the registrant increases, at a particular time, the extent to which the property is used in commercial activities of the registrant, for the purposes of determining an input tax credit of the registrant, the registrant shall be deemed 
  (a) to have received, immediately before the particular time, a supply of a portion of the property for use as capital property exclusively in commercial activities of the registrant; and 
  (b) except where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the amount determined by the formula is the basic tax content of the property at the particular time, and is the extent (expressed as a percentage of the total use of the property by the registrant at the particular time) to which the registrant increased the use of the property in commercial activities of the registrant at the particular time. 
  
  ### Ceasing use in commercial activities
  
  (4) For the purposes of this Part, where a registrant last acquired real property for use as capital property in commercial activities of the registrant and the registrant begins, at a particular time, to use the property exclusively for other purposes, the registrant shall be deemed 
  (a) to have made, immediately before the particular time, a supply of the property by way of sale and, except where the supply is an exempt supply, to have collected, at the particular time, tax in respect of the supply equal to the basic tax content of the property at the particular time; and 
  (b) to have received, at the particular time, a supply of the property by way of sale and, except where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the amount determined under paragraph (a). 
  
  ### Reducing use in commercial activities
  
  (5) Except where subsection (4) applies, where a registrant last acquired real property for use as capital property in commercial activities of the registrant and the registrant reduces, at a particular time, the extent to which the property is used in commercial activities of the registrant, for the purposes of determining the net tax of the registrant for the reporting period of the registrant that includes the particular time, the registrant shall be deemed 
  (a) to have made, immediately before the particular time, a supply of a portion of the property; and 
  (b) except where the supply is an exempt supply, to have collected, at the particular time, tax in respect of the supply equal to the amount determined by the formula is the basic tax content of the property at the particular time, and is the extent (expressed as a percentage of the total use of the property by the registrant at the particular time) to which the registrant reduced the use of the property in commercial activities of the registrant at the particular time. 
  
  ### Individual ceasing use in commercial activities
  
  207 (1) For the purposes of this Part, where an individual who is a registrant last acquired real property for use as capital property in commercial activities of the individual, and not primarily for the personal use and enjoyment of the individual or a related individual, and the individual begins, at a particular time, to use the property exclusively for other purposes, or primarily for the personal use and enjoyment of the individual or a related individual, the individual shall be deemed 
  (a) to have made, immediately before the particular time, a supply of the property by way of sale and, except where the supply is an exempt supply, to have collected, at the particular time, tax in respect of the supply equal to the amount determined by the formula is the basic tax content of the property at the particular time, and is the tax, if any, that the individual is deemed under section 190 to have collected at the particular time in respect of the property; and 
  (b) to have received, at the particular time, a supply of the property by way of sale and, except where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the amount determined under paragraph (a). 
  
  ### Individual reducing use in commercial activities
  
  (2) Except where subsection (1) applies, where an individual who is a registrant last acquired real property for use as capital property in commercial activities of the individual, and not primarily for the personal use and enjoyment of the individual or a related individual, and the individual reduces, at a particular time, the extent to which the property is used in commercial activities of the individual without beginning to use the property primarily for the personal use and enjoyment of the individual or a related individual, for the purposes of determining the net tax of the individual, the individual shall be deemed 
  (a) to have made, immediately before the particular time, a supply by way of sale of a portion of the property; and 
  (b) except where the supply is an exempt supply, to have collected, at the particular time, tax in respect of the supply equal to the amount determined by the formula is the basic tax content of the property at the particular time, is the extent (expressed as a percentage of the total use of the property by the individual at the particular time) to which the individual reduced the use of the property in commercial activities of the individual at the particular time, and is the tax, if any, that the individual is deemed under section 190 to have collected at the particular time in respect of the property. 
  
  ### Acquisition of capital real property by individual
  
  208 (1) Subject to this section, where an individual who is a registrant acquires real property for use as capital property of the individual but primarily for the personal use and enjoyment of the individual or a related individual, the tax payable by the individual in respect of the acquisition of the property shall not be included in determining an input tax credit of the individual. 
  
  ### Individual beginning use in commercial activities
  
  (2) For the purposes of this Part, where an individual who is a registrant last acquired real property for use as capital property of the individual and 
  (a) primarily for the personal use and enjoyment of the individual or a related individual, or 
  (b) not for use in commercial activities of the individual, and the individual begins, at a particular time, to use the property as capital property in commercial activities of the individual and not primarily for the personal use and enjoyment of the individual or a related individual, the individual is deemed 
  (c) to have received, at the particular time, a supply by way of sale of the property; and 
  (d) except where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the basic tax content of the property at the particular time. 
  
  ### Individual increasing use in commercial activities
  
  (3) Where an individual who is a registrant last acquired real property for use as capital property in commercial activities of the individual and not primarily for the personal use and enjoyment of the individual or a related individual, and the individual increases, at a particular time, the extent to which the property is used in commercial activities of the individual without beginning to use the property primarily for the personal use and enjoyment of the individual or a related individual, for the purposes of determining an input tax credit of the individual, the individual shall be deemed 
  (a) to have received, at the particular time, a supply by way of sale of a portion of the property for use as capital property exclusively in commercial activities of the individual; and 
  (b) except where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the amount determined by the formula is the basic tax content of the property at the particular time, and is the extent (expressed as a percentage of the total use of the property by the individual at the particular time) to which the individual increased the use of the property in commercial activities of the individual at the particular time. 
  
  ### Improvement to capital real property by individual
  
  (4) Where an individual who is a registrant acquires, imports or brings into a participating province an improvement to real property that is capital property of the individual, the tax payable by the individual in respect of the improvement shall not be included in determining an input tax credit of the individual if, at the time that tax becomes payable or is paid without having become payable, the property is primarily for the personal use and enjoyment of the individual or a related individual. 
  
  ### Real property of certain public service bodies
  
  209 (1) If a registrant (other than a financial institution or a government) is a public service body, section 141.2 and subsections 199(2) to (4) and 200(2) and (3) apply, with any modifications that the circumstances require, to real property acquired by the registrant for use as capital property of the registrant or, in the case of subsection 199(4), to improvements to real property that is capital property of the registrant, as if the real property were personal property. 
  
  ### Real property of certain Crown agents
  
  (2) If a registrant (other than a financial institution) is a specified Crown agent, section 141.2 and subsections 199(2) to (4) and 200(2) and (4) apply, with any modifications that the circumstances require, to real property acquired by the registrant for use as capital property of the registrant or, in the case of subsection 199(4), to improvements to real property that is capital property of the registrant, as if the real property were personal property. 
  
  ### Exception
  
  (3) Despite subsections (1) and (2), section 141.2 and subsections 200(3) and (4) do not apply to 
  (a) a supply of a residential complex or an interest in one made by way of sale; or 
  (b) a supply of real property made by way of sale to an individual. 
  210  [Repealed, 1993, c. 27, s. 75]  
  
  ### Election for real property of a public service body
  
  211 (1) Where a public service body files an election made under this subsection in respect of 
  (a) real property that is capital property of the body, 
  (b) real property of the body that is held by the body in inventory for the purpose of supply, or 
  (c) real property acquired by the body by way of lease, licence or similar arrangement for the purpose of making a supply of the property by way of lease, licence or similar arrangement or making a supply of the arrangement by way of assignment, throughout the period the election is in effect, subsection 193(1) and section 206 apply, and section 209 does not apply, to the property. 
  
  ### Deemed sale where election
  
  (2) For the purposes of this Part, where a public service body has filed an election made under subsection (1) in respect of real property described in paragraph (1)(a) or (b) that takes effect on a particular day and the body does not acquire the property on the particular day or become a registrant on the particular day, the body shall be deemed 
  (a) to have made, immediately before the particular day, a taxable supply of the property by way of sale and to have collected, on the particular day, tax in respect of the supply equal to the basic tax content of the property on the particular day; and 
  (b) to have received, on the particular day, a taxable supply of the property by way of sale and to have paid, on the particular day, tax in respect of the supply equal to the amount determined under paragraph (a). 
  
  ### Effect of election
  
  (3) An election under subsection (1) in respect of real property of a person is effective for the period beginning on the day specified in the election and ending on the day that the person specifies in a notice of revocation of the election filed under this section. 
  
  ### Deemed sale where revocation
  
  (4) For the purposes of this Part, where an election made under subsection (1) by a public service body in respect of real property described in paragraph (1)(a) or (b) is revoked and ceases to be effective on a day and the body does not cease to be a registrant on that day, the body shall be deemed 
  (a) to have made, immediately before that day, a taxable supply of the property by way of sale and to have collected, on that day, tax in respect of the supply equal to the basic tax content of the property on that day; and 
  (b) to have received, on that day, a taxable supply of the property by way of sale and to have paid, on that day, tax in respect of the supply equal to the basic tax content of the property on that day. 
  
  ### Manner and form of election or revocation
  
  (5) An election made under subsection (1) by a person and a notice of revocation of such an election shall 
  (a) be made in prescribed form containing prescribed information; 
  (b) specify the real property in respect of which the election or notice applies and the day the election becomes effective or, in the case of a notice of revocation, ceases to be effective; and 
  (c) be filed with the Minister in prescribed manner within one month after the end of the reporting period of the person in which the election becomes effective or, in the case of a notice of revocation, ceases to be effective. 
  
  # SUBDIVISION E 
  
  ## Electronic Commerce 
  
  ## Interpretation 
  
  ### Definitions
  
  211.1 (1) The following definitions apply in this Subdivision.  
  *accommodation platform* means a digital platform through which a person facilitates the making of supplies of short-term accommodation situated in Canada by another person that is not registered under Subdivision D of Division V. (plateforme de logements)   
  *accommodation platform operator*, in respect of a supply of short-term accommodation made through an accommodation platform, means a person (other than the supplier or an excluded operator in respect of the supply) that  
  (a) controls or sets the essential elements of the transaction between the supplier and the recipient; 
  (b) if paragraph (a) does not apply to any person, is involved, directly or through arrangements with third parties, in collecting, receiving or charging the consideration for the supply and transmitting all or part of the consideration to the supplier; or 
  (c) is a prescribed person. ( exploitant de plateforme de logements)   
  *Canadian accommodation related supply* means a taxable supply of a service  
  (a) that is made to a person in connection with a supply of short-term accommodation situated in Canada made to the person; and 
  (b) the consideration for which represents a booking fee, administration fee or other similar charge. ( fourniture liée à un logement au Canada)   
  *digital platform* includes a website, an electronic portal, gateway, store or distribution platform or any other similar electronic interface but does not include  
  (a) an electronic interface that solely processes payments; or 
  (b) a prescribed platform or interface. ( plateforme numérique)   
  *distribution platform operator*, in respect of a supply of property or a service made through a specified distribution platform, means a person (other than the supplier or an excluded operator in respect of the supply) that  
  (a) controls or sets the essential elements of the transaction between the supplier and the recipient; 
  (b) if paragraph (a) does not apply to any person, is involved, directly or through arrangements with third parties, in collecting, receiving or charging the consideration for the supply and transmitting all or part of the consideration to the supplier; or 
  (c) is a prescribed person. ( exploitant de plateforme de distribution)   
  *electronic filing* means using electronic media in a manner specified by the Minister. (transmission électronique)   
  *excluded operator* means a person that, in respect of a supply of property or a service,  
  (a) meets all of the following conditions: 
  (i) the person does not set, directly or indirectly, any of the terms and conditions under which the supply is made, 
  (ii) the person is not involved, directly or indirectly, in authorizing the charge to the recipient of the supply in respect of the payment of the consideration for the supply, and 
  (iii) the person is not involved, directly or indirectly, in the ordering or delivery of the property or in the ordering or rendering of the service; 
  (b) solely provides for the listing or advertising of the property or service or for the redirecting or transferring to a digital platform on which the property or service is offered; 
  (c) is solely a payment processor; or 
  (d) is a prescribed person. ( exploitant exclu)   
  *false statement* includes a statement that is misleading because of an omission from the statement. (faux énoncé)   
  *qualifying tangible personal property supply* means a supply made by way of sale of tangible personal property that is, under the agreement for the supply, to be delivered or made available to the recipient in Canada, other than  
  (a) an exempt or zero-rated supply; 
  (b) a supply of tangible personal property sent by mail or courier to the recipient at an address in Canada from an address outside Canada by the supplier or by another person acting on behalf of the supplier, if the supplier maintains evidence satisfactory to the Minister that the property was so sent; 
  (c) a supply that is deemed under subsection 180.1(2) to have been made outside Canada; and 
  (d) a prescribed supply. ( fourniture admissible d’un bien meuble corporel)   
  *specified Canadian recipient* means a recipient of a supply in respect of which the following conditions are met:  
  (a) the recipient has not provided to the supplier, or to a distribution platform operator in respect of the supply, evidence satisfactory to the Minister that the recipient is registered under Subdivision D of Division V; and 
  (b) the usual place of residence of the recipient is situated in Canada. ( acquéreur canadien déterminé)   
  *specified distribution platform* means a digital platform through which a person facilitates the making of specified supplies by another person that is a specified non-resident supplier or facilitates the making of qualifying tangible personal property supplies by another person that is not registered under Subdivision D of Division V. (plateforme de distribution déterminée)   
  *specified non-resident supplier* means a non-resident person that does not make supplies in the course of a business carried on in Canada and that is not registered under Subdivision D of Division V. (fournisseur non-résident déterminé)   
  *specified supply* means a taxable supply of intangible personal property or a service other than  
  (a) a supply of intangible personal property that 
  (i) may not be used in Canada, 
  (ii) relates to real property situated outside Canada, or 
  (iii) relates to tangible personal property ordinarily situated outside Canada; 
  (b) a supply of a service that 
  (i) may only be consumed or used outside Canada, 
  (ii) is in relation to real property situated outside Canada, or 
  (iii) is rendered in connection with criminal, civil or administrative litigation (other than a service rendered before the commencement of such litigation) that is under the jurisdiction of a court or other tribunal established under the laws of a country other than Canada or that is in the nature of an appeal from a decision of a court or other tribunal established under the laws of a country other than Canada; 
  (c) a supply of a service that is deemed under subsection 180.1(2) to have been made outside Canada; 
  (d) a supply of a service 
  (i) that is made to a person in connection with a supply of short-term accommodation made to the person, and 
  (ii) the consideration for which represents a booking fee, administration fee or other similar charge; and 
  (e) a prescribed supply. ( fourniture déterminée)  
  
  ### Registration
  
  (2) For greater certainty, in this Part (other than this Subdivision) and in Schedules V to X, a reference to registration does not include registration under this Subdivision. 
  
  ## Accommodations, Intangible Personal Property and Services 
  
  ### Residence indicators
  
  211.11 (1) For the purposes of this Subdivision, the following are indicators in respect of the usual place of residence of a recipient of a supply: 
  (a) the home address of the recipient; 
  (b) the business address of the recipient; 
  (c) the billing address of the recipient; 
  (d) the Internet Protocol address of the device used by the recipient or similar data obtained through a geolocation method; 
  (e) payment-related information in respect of the recipient or other information used by the payment system; 
  (f) the information from a subscriber identity module, or other similar module, used by the recipient; 
  (g) the place at which a landline communication service is supplied to the recipient; and 
  (h) any other relevant information that the Minister may specify. 
  
  ### Indicator — Canada and provinces
  
  (2) For the purposes of this section, 
  (a) a Canadian indicator in respect of the recipient of a supply is an indicator obtained in connection with the supply that reasonably supports the conclusion that the usual place of residence of the recipient is situated in Canada; 
  (b) a foreign indicator in respect of the recipient of a supply is an indicator obtained in connection with the supply that reasonably supports the conclusion that the usual place of residence of the recipient is situated outside Canada; 
  (c) a participating province indicator in respect of the recipient of a supply is an indicator obtained in connection with the supply that reasonably supports the conclusion that the usual place of residence of the recipient is situated in a participating province; and 
  (d) a non-participating province indicator in respect of the recipient of a supply is an indicator obtained in connection with the supply that reasonably supports the conclusion that the usual place of residence of the recipient is situated in a non-participating province. 
  
  ### Usual place of residence — Canada
  
  (3) For the purposes of this Subdivision, the usual place of residence of the recipient of a supply is situated in Canada if a person that is the supplier or a distribution platform operator in respect of the supply, 
  (a) in the ordinary course of the person’s operations, has obtained two or more Canadian indicators in respect of the recipient and has not obtained more than one foreign indicator in respect of the recipient; 
  (b) in the ordinary course of the person’s operations, has obtained two or more Canadian indicators in respect of the recipient and two or more foreign indicators in respect of the recipient, but the Canadian indicators are, in the circumstances, reasonably considered to be more reliable in determining a place of residence; or 
  (c) if paragraphs (a) and (b) do not apply, has determined that the usual place of residence of the recipient is situated in Canada based on any method that the Minister may allow. 
  
  ### Usual place of residence — participating province address
  
  (4) For the purposes of this Subdivision, if the usual place of residence of the recipient of a supply is situated in Canada and if a person that is the supplier or a distribution platform operator in respect of the supply has obtained in the ordinary course of the person’s operations one or more addresses that are a home or business address of the recipient in a participating province and has not obtained in the ordinary course of the person’s operations the same number or a greater number of addresses that are a home or business address of the recipient in a non-participating province, the usual place of residence of the recipient is situated in the following participating province: 
  (a) if those addresses of the recipient that are in a participating province are all in the same participating province, that participating province; and 
  (b) if those addresses of the recipient that are in a participating province are in two or more participating provinces and if the tax rates for those participating provinces are the same, the participating province among those participating provinces that has the largest population. 
  
  ### Usual place of residence — participating province indicators
  
  (5) For the purposes of this Subdivision, if the usual place of residence of the recipient of a supply is situated in Canada but is not determined under subsection (4) to be in a participating province and if a person that is the supplier or a distribution platform operator in respect of the supply has obtained in the ordinary course of the person’s operations one or more participating province indicators in respect of the recipient and has not obtained in the ordinary course of the person’s operations the same number or a greater number of non-participating province indicators in respect of the recipient that could reasonably be considered to be as reliable in determining a place of residence as those participating province indicators, the usual place of residence of the recipient is situated in the following participating province: 
  (a) if those participating province indicators are in respect of the same participating province, that participating province; 
  (b) if those participating province indicators are in respect of two or more participating provinces and the participating province indicators in respect of one of those participating provinces are, in the circumstances, reasonably considered to be more reliable in determining a place of residence, that participating province; 
  (c) if the usual place of residence of the recipient is not determined under paragraph (a) or (b) and if the person has determined that the usual place of residence of the recipient is situated in one of the participating provinces based on any method that the Minister may allow, that participating province; or 
  (d) if the usual place of residence of the recipient is not determined under any of paragraphs (a) to (c) and if those participating province indicators are in respect of two or more participating provinces, the participating province among those participating provinces for which the tax rate is the lowest or, if the tax rates for those participating provinces are the same, the participating province among those participating provinces that has the largest population. 
  
  ### Usual place of residence — participating province
  
  (6) For the purposes of this Subdivision, if, in respect of a supply, the usual place of residence of the recipient is situated in Canada but is not determined under subsection (4) or (5) to be in a participating province and if a person that is the supplier or a distribution platform operator in respect of the supply has determined that the usual place of residence of the recipient is situated in a participating province based on any method that the Minister may allow, then the usual place of residence of the recipient is situated in that participating province. 
  
  ### Threshold amount
  
  211.12 (1) For the purposes of this section, the threshold amount of a particular person for a period is the total of all amounts each of which is an amount that is, or that could reasonably be expected to be, the value of the consideration for a supply that is, or that could reasonably be expected to be, 
  (a) a specified supply made during that period by the particular person to a specified Canadian recipient (other than a zero-rated supply or a supply that is deemed to have been made by the particular person under paragraph 211.13(1)(a) or subparagraph 211.13(2)(a)(i)); 
  (b) a Canadian accommodation related supply made during that period by the particular person to another person that is not registered under Subdivision D of Division V; 
  (c) if the particular person is a distribution platform operator in respect of a specified supply (other than a zero-rated supply) made during that period through a specified distribution platform by a specified non-resident supplier to a specified Canadian recipient, a specified supply (other than a zero-rated supply) that is made during that period through the specified distribution platform by a specified non-resident supplier to a specified Canadian recipient and in respect of which any person is a distribution platform operator; or 
  (d) if the particular person is an accommodation platform operator in respect of an accommodation supply — being a taxable supply of short-term accommodation situated in Canada made by any person that is not registered under Subdivision D of Division V to a recipient that is not registered under that Subdivision — that is made during that period through an accommodation platform, an accommodation supply that is made during that period through the accommodation platform and in respect of which any person is an accommodation platform operator. 
  
  ### Registration required
  
  (2) Every person (other than a registrant or a person that carries on a business in Canada) that is a specified non-resident supplier at any time, a distribution platform operator in respect of a supply made at any time or an accommodation platform operator in respect of a supply made at any time is required at that time to be registered under this Subdivision if the threshold amount of the person for any period of 12 months (other than a period that begins before July 2021) that includes that time exceeds $30,000. 
  
  ### Application
  
  (3) A person required under subsection (2) to be registered under this Subdivision shall apply to the Minister for registration. The application is to be made in prescribed form containing prescribed information and is to be filed with the Minister by way of electronic filing on or before the first day on which the person is required to be registered under this Subdivision. 
  
  ### Registration
  
  (4) The Minister may register any person that applies for registration under subsection (3) and, upon doing so, the Minister shall assign a registration number to the person and notify the person of the registration number and the effective date of the registration. 
  
  ### Notice of intent
  
  (5) If the Minister has reason to believe that a person that is not registered under this Subdivision is required to be registered under subsection (2) and has failed to apply for registration under subsection (3) as and when required, the Minister may send a notice in writing (in this section referred to as a “notice of intent”) to the person that the Minister proposes to register the person under subsection (7). 
  
  ### Representations to Minister
  
  (6) Upon receipt of a notice of intent, a person shall apply for registration under subsection (3) or establish to the satisfaction of the Minister that the person is not required to be registered under subsection (2). 
  
  ### Registration by Minister
  
  (7) If, after 60 days after the particular day on which a notice of intent was sent by the Minister to a person, the person has not applied for registration under subsection (3) and the Minister is not satisfied that the person is not required to be registered under subsection (2), the Minister may register the person under this Subdivision and, upon doing so, shall assign a registration number to the person and notify the person in writing of the registration number and the effective date of the registration, which effective date is not to be earlier than 60 days after the particular day. 
  
  ### Cessation of registration
  
  (8) If a person is registered under this Subdivision and if the person becomes registered under Subdivision D of Division V on a particular day, the person ceases to be registered under this Subdivision effective on the particular day. 
  
  ### Cancellation on notice
  
  (9) The Minister may, after giving a person that is registered under this Subdivision reasonable written notice, cancel the registration of the person if the Minister is satisfied that the registration is not required under this Subdivision. 
  
  ### Cancellation on request
  
  (10) On request from a person, the Minister shall cancel the registration of the person under this Subdivision if the Minister is satisfied that the registration is not required under this Subdivision. 
  
  ### Cancellation — notification
  
  (11) If the Minister cancels the registration of a person under subsection (9) or (10), the Minister shall notify the person of the cancellation and its effective date. 
  
  ### Public disclosure
  
  (12) Despite section 295, the Minister may make available to the public, in any manner that the Minister considers appropriate, the names of persons registered under this Subdivision (including any trade name or other name used by those persons), the registration numbers assigned to those persons under this section, the effective date of the registration and, if a person ceases to be registered under this Subdivision, the date on which the person ceases to be registered. 
  
  ### Specified supply — operator
  
  211.13 (1) If a specified supply is made through a specified distribution platform by a specified non-resident supplier to a specified Canadian recipient and if another person registered under this Subdivision is a distribution platform operator in respect of the specified supply, then, for the purposes of this Part (other than section 211.1, paragraph 211.12(1)(c) and section 240) 
  (a) the specified supply is deemed to have been made by the other person and not by the specified non-resident supplier; and 
  (b) the other person is deemed not to have made a supply to the specified non-resident supplier of services relating to the specified supply. 
  
  ### Specified supply — registered operator
  
  (2) If a specified supply is made through a specified distribution platform by a specified non-resident supplier, if another person that is registered under Subdivision D of Division V, or that carries on a business in Canada, is a distribution platform operator in respect of the specified supply and if, in the absence of section 143, the specified supply would have been a supply made in Canada, the following rules apply: 
  (a) if the other person is registered under Subdivision D of Division V, for the purposes of this Part (other than section 211.1, paragraph 211.12(1)(c) and section 240) 
  (i) the specified supply is deemed to have been made by the other person and not by the specified non-resident supplier, and 
  (ii) the other person is deemed not to have made a supply to the specified non-resident supplier of services relating to the specified supply; and 
  (b) in any other case, for the purposes of sections 148 and 249, the specified supply is deemed to have been made by the other person and not by the specified non-resident supplier. 
  
  ### Accommodation — operator
  
  (3) If a particular supply that is a taxable supply of short-term accommodation situated in Canada is made through an accommodation platform by a particular person that is not registered under Subdivision D of Division V, if another person that is registered under this Subdivision is an accommodation platform operator in respect of the particular supply and if the recipient has not provided to the other person evidence satisfactory to the Minister that the recipient is registered under Subdivision D of Division V, then, for the purposes of this Part (other than sections 148 and 211.1, paragraph 211.12(1)(d) and sections 240 and 249) 
  (a) the particular supply is deemed to have been made by the other person and not by the particular person; and 
  (b) the other person is deemed not to have made a supply to the particular person of services relating to the particular supply. 
  
  ### Accommodation — registered operator
  
  (4) If a particular supply that is a taxable supply of short-term accommodation situated in Canada is made through an accommodation platform by a particular person that is not registered under Subdivision D of Division V and if another person that is registered under that Subdivision, or that carries on a business in Canada, is an accommodation platform operator in respect of the particular supply, then, for the purposes of this Part (other than for the purposes of applying sections 148 and 249 in respect of the particular person and other than for the purposes of section 211.1, paragraph 211.12(1)(d) and section 240) 
  (a) the particular supply is deemed to have been made by the other person and not by the particular person; and 
  (b) the other person is deemed not to have made a supply to the particular person of services relating to the particular supply. 
  
  ### Joint and several, or solidary, liability
  
  (5) If a particular person that is deemed under paragraph (1)(a), subparagraph (2)(a)(i) or paragraph (3)(a) or (4)(a) not to have made a supply made a false statement to another person that is deemed under paragraph (1)(a), subparagraph (2)(a)(i) or paragraph (3)(a) or (4)(a), as the case may be, to have made the supply and if the false statement is relevant to the determination of whether the other person is required to collect tax in respect of the supply or the determination of the amount of tax that the other person is required to collect in respect of the supply, the following rules apply: 
  (a) the particular person and the other person are jointly and severally, or solidarily, liable for all obligations under this Part (in this subsection referred to as the “obligations in respect of the supply”) that arise upon or as a consequence of 
  (i) the tax in respect of the supply becoming collectible by the other person, and 
  (ii) a failure to account for or pay as and when required under this Part an amount of net tax of the other person, or an amount required under section 230.1 to be paid by the other person, that is reasonably attributable to the supply; 
  (b) the Minister may assess the particular person for any amount for which the particular person is liable under this subsection and sections 296 to 311 apply with any modifications that the circumstances require; and 
  (c) if the other person did not know and could not reasonably be expected to have known that the particular person made a false statement and if the other person relied in good faith on the false statement and, because of such reliance, did not charge, collect or remit all the tax in respect of the supply that the other person was required to charge, collect or remit, despite section 296, the Minister is not to assess the other person for any obligations in respect of the supply in excess of the obligations in respect of the supply that arise upon or as a consequence of the other person having charged, collected or remitted an amount of tax in respect of the supply. 
  
  ### Supply — Canada
  
  211.14 (1) For the purposes of this Part and despite paragraphs 136.1(1)(d) and (2)(d), subsection 142(2) and section 143, if a person registered under this Subdivision makes a specified supply to a specified Canadian recipient, or makes a Canadian accommodation related supply to a recipient that has not provided to the person evidence satisfactory to the Minister that the recipient is registered under Subdivision D of Division V, the supply is deemed to be made in Canada and, in the case of a Canadian accommodation related supply that is included in Schedule VI, the supply is deemed not to be included in that Schedule. 
  
  ### Supply — Canada
  
  (2) For the purposes of this Part and despite paragraph 136.1(2)(d), subsection 142(2) and section 143, if a person registered under Subdivision D of Division V or carrying on a business in Canada makes a Canadian accommodation related supply, the supply is deemed to be made in Canada and, if the supply is included in Schedule VI, the supply is deemed not to be included in that Schedule. 
  
  ### Specified supply — participating province
  
  (3) For the purposes of this Part and despite section 144.1, if a specified supply (other than a supply of intangible personal property, or a service, that relates to real property) is deemed to be made in Canada under subsection (1), the following rules apply: 
  (a) if the usual place of residence of the specified Canadian recipient is situated in a participating province, the supply is deemed to be made in the participating province; and 
  (b) in any other case, the supply is deemed to be made in a non-participating province. 
  
  ### Canadian accommodation related supply — participating province
  
  (4) For the purposes of this Part and despite section 144.1, if a Canadian accommodation related supply is deemed to be made in Canada under subsection (1) or (2), the supply is deemed to be made in the province in which the accommodation is situated. 
  
  ### Billing agent
  
  211.15 For the purposes of this Part, if a particular person that is registered under this Subdivision makes an election in respect of a supply under subsection 177(1.1) with a registrant described in subsection 177(1.11), the registrant is deemed not to have made a supply to the particular person of services of acting as an agent described in subsection 177(1.11) in respect of the supply. 
  
  ### Disclosure of tax
  
  211.16 A person registered under this Subdivision that is required under section 221 to collect tax in respect of a supply shall indicate to the recipient, in a manner satisfactory to the Minister, 
  (a) the consideration paid or payable by the recipient for the supply and the tax payable in respect of the supply; or 
  (b) that the amount paid or payable by the recipient for the supply includes the tax payable in respect of the supply. 
  
  ### Restrictions
  
  211.17 (1) No amount of an input tax credit, rebate, refund or remission under this or any other Act of Parliament shall be credited, paid, granted or allowed to the extent that it can reasonably be regarded that the amount is determined, directly or indirectly, in relation to an amount that is collected as or on account of tax, or in relation to an amount of tax that is required to be collected, by a person that is registered or required to be registered under this Subdivision. 
  
  ### Exception
  
  (2) Subsection (1) does not apply 
  (a) to a rebate, refund or remission in relation to an amount that a person may 
  (i) deduct under subsection 231(1), 232(3) or 234(3) in determining the net tax of the person for a reporting period of the person, 
  (ii) claim as a rebate under section 259 or 259.1, or 
  (iii) claim as a rebate under section 261 in respect of an amount that is collected as or on account of tax from the person at a time when the person is not registered under Subdivision D of Division V; 
  (b) for the purposes of subsections 232(1) and (2); and 
  (c) for prescribed purposes. 
  
  ### Return
  
  211.18 (1) Despite subsection 238(2), every person registered under this Subdivision shall file a return with the Minister by way of electronic filing for each reporting period of the person within one month after the end of the reporting period. 
  
  ### Reporting period
  
  (2) Despite sections 245 and 251 and subject to subsections (3) and (4), the reporting period of a person registered under this Subdivision is a calendar quarter. 
  
  ### Becoming registered
  
  (3) If a person becomes registered under this Subdivision on a particular day, the following periods are deemed to be separate reporting periods of the person: 
  (a) the period beginning on the first day of the reporting period of the person, otherwise determined under section 245, that includes the particular day and ending on the day immediately preceding the particular day; and 
  (b) the period beginning on the particular day and ending on the last day of the calendar quarter that includes the particular day. 
  
  ### Cessation of registration
  
  (4) If a person ceases to be registered under this Subdivision on a particular day, the following periods are deemed to be separate reporting periods of the person: 
  (a) the period beginning on the first day of the calendar quarter that includes the particular day and ending on the day immediately preceding the particular day; and 
  (b) the period beginning on the particular day and ending on the last day of the reporting period of the person, otherwise determined under section 245, that includes the particular day. 
  
  ### Definition of qualifying foreign currency 
  
  211.19 (1) In this section, 
  *qualifying foreign currency* means the U.S. dollar, the euro or another foreign currency that the Minister may specify.  
  
  ### Manner of payment
  
  (2) Every person that is registered or required to be registered under this Subdivision and that is required under subsection 278(2) to pay or remit an amount to the Receiver General shall pay or remit that amount in the manner determined by the Minister. 
  
  ### Non application — subsection 278(3)
  
  (3) Subsection 278(3) does not apply in respect of an amount that a person that is registered or required to be registered under this Subdivision is required under this Part to pay or remit to the Receiver General. 
  
  ### Foreign currency — no designation
  
  (4) Despite section 159 and subject to subsection (7), if tax is collected, or required to be collected, in respect of a supply made by a person that is registered or required to be registered under this Subdivision and if the value of the consideration for the supply is expressed in a foreign currency, the consideration is to be converted into Canadian currency using the exchange rate applicable on the last day of the reporting period in which the tax is collected or required to be collected, as the case may be, or using any other conversion method that the Minister may allow. 
  
  ### Foreign currency — application
  
  (5) A person registered under this Subdivision may apply to the Minister, in prescribed form containing prescribed information and filed in prescribed manner with the Minister, to be designated as a person eligible to determine the net tax for a reporting period of the person in a qualifying foreign currency. The Minister may require that the application be filed by way of electronic filing. 
  
  ### Foreign currency — authorization
  
  (6) If the Minister receives an application of a person under subsection (5), the Minister may, subject to such conditions as the Minister may at any time impose, designate the person as a person eligible to determine the net tax for a reporting period of the person in the qualifying foreign currency indicated by the Minister. 
  
  ### Foreign currency — designated persons
  
  (7) Despite section 159, if a person is designated under subsection (6) in respect of a reporting period of the person, the following rules apply in respect of the reporting period: 
  (a) the net tax for the reporting period is to be determined in the return for that reporting period in the qualifying foreign currency indicated by the Minister; 
  (b) any amount to be remitted or paid by the person to the Receiver General in respect of the reporting period is to be remitted or paid in the qualifying foreign currency indicated by the Minister; and 
  (c) any amount that is required to be converted into the qualifying foreign currency indicated by the Minister for the purposes of determining the net tax for the reporting period, or for the purposes of determining any other amount to be remitted or paid to the Receiver General in respect of the reporting period, is to be converted into that qualifying foreign currency using the exchange rate applicable on the last day of the reporting period or using any other conversion method that the Minister may allow. 
  
  ### Prohibition
  
  211.2 No person shall, in respect of a supply of property or a service made to a particular person who is a consumer of the property or service, provide to another person that is registered or required to be registered under this Subdivision evidence that the particular person is registered under Subdivision D of Division V. 
  
  ### Information return — accommodation platform operator
  
  211.21 A person (other than a prescribed person) that, at any time during a calendar year, is registered or required to be registered under this Subdivision or is a registrant and that is an accommodation platform operator in respect of a supply of short-term accommodation situated in Canada made in the calendar year shall file with the Minister an information return for the calendar year, in prescribed form containing prescribed information, before July of the following calendar year. The Minister may require that the information return be filed by way of electronic filing. 
  
  ## Tangible Personal Property 
  
  ### Definition of specified recipient 
  
  211.22 (1) In this section, 
  *specified recipient*, in respect of a supply of property, means a person (other than a non-resident person that is not a consumer of the property) that is the recipient of the supply and that is not registered under Subdivision D of Division V.  
  
  ### Registration required
  
  (2) Every person that is a non-resident person that does not at any time make supplies in the course of a business carried on in Canada or a distribution platform operator in respect of a supply made at any time is required at that time to be registered under Subdivision D of Division V if, for any period of 12 months (other than a period that begins before July 2021) that includes that time, the amount determined by the following formula is greater than $30,000: is the total of all amounts, each of which is an amount that is, or that could reasonably be expected to be, the value of the consideration for a taxable supply that is, or that could reasonably be expected to be, a qualifying tangible personal property supply made during that period by the person to a specified recipient (other than a supply deemed to have been made by the person under subparagraph 211.23(1)(a)(i)); and is 
  (a) if the person is a distribution platform operator in respect of a qualifying tangible personal property supply made during that period through a specified distribution platform, the total of all amounts, each of which is an amount that is, or that could reasonably be expected to be, the value of the consideration for a supply that is, or that could reasonably be expected to be, a qualifying tangible personal property supply made during that period through the specified distribution platform to a specified recipient and in respect of which any person is a distribution platform operator, and 
  (b) in any other case, zero. 
  
  ### Qualifying supply — operator
  
  211.23 (1) If a particular supply that is a qualifying tangible personal property supply is made through a specified distribution platform by a particular person that is not registered under Subdivision D of Division V and if another person that is registered under Subdivision D of Division V, or is carrying on a business in Canada, is a distribution platform operator in respect of the particular supply, the following rules apply: 
  (a) for the purposes of this Part (other than for the purposes of applying sections 148 and 249 in respect of the particular person and other than for the purposes of section 211.1, paragraph (a) of the description of B in subsection 211.22(2) and section 240) 
  (i) the particular supply is deemed to have been made by the other person and not by the particular person, and 
  (ii) the particular supply is deemed to be a taxable supply; 
  (b) for the purposes of this Part (other than sections 179 and 180), the other person is deemed not to have made a supply to the particular person of services relating to the particular supply; and 
  (c) if the other person is registered under Subdivision D of Division V, if the particular person has paid tax under Division III in respect of the importation of the tangible personal property, if no person is entitled to claim an input tax credit or a rebate under this Part in respect of the tax in respect of the importation, if no person is deemed under section 180 to have paid tax in respect of a supply of the tangible personal property that is equal to the tax in respect of the importation and if the particular person provides to the other person evidence satisfactory to the Minister that the tax in respect of the importation has been paid, 
  (i) for the purposes of determining an input tax credit of the other person, the other person is deemed 
  (A) to have paid, at the time the particular person paid the tax in respect of the importation, tax in respect of a supply made to the other person of the tangible personal property equal to the tax in respect of the importation, and 
  (B) to have acquired the tangible personal property for use exclusively in commercial activities of the other person, and 
  (ii) no portion of the tax in respect of the importation paid by the particular person shall be rebated, refunded or remitted to the particular person, or shall otherwise be recovered by the particular person, under this or any other Act of Parliament. 
  
  ### Joint and several, or solidary, liability
  
  (2) If a particular person that is deemed under subparagraph (1)(a)(i) not to have made a supply made a false statement to another person that is deemed under that subparagraph to have made the supply and if the false statement is relevant to the determination of whether the other person is required to collect tax in respect of the supply or the determination of the amount of tax that the other person is required to collect in respect of the supply, the following rules apply: 
  (a) the particular person and the other person are jointly and severally, or solidarily, liable for all obligations under this Part (in this subsection referred to as the “obligations in respect of the supply”) that arise upon or as a consequence of 
  (i) the tax in respect of the supply becoming collectible by the other person, and 
  (ii) a failure to account for or pay as and when required under this Part an amount of net tax of the other person, or an amount required under section 230.1 to be paid by the other person, that is reasonably attributable to the supply; 
  (b) the Minister may assess the particular person for any amount for which the particular person is liable under this subsection and sections 296 to 311 apply with any modifications that the circumstances require; and 
  (c) if the other person did not know and could not reasonably be expected to have known that the particular person made a false statement and if the other person relied in good faith on the false statement and, because of such reliance, did not charge, collect or remit all the tax in respect of the supply that the other person was required to charge, collect or remit, despite section 296, the Minister is not to assess the other person for any obligations in respect of the supply in excess of the obligations in respect of the supply that arise upon or as a consequence of the other person having charged, collected or remitted an amount of tax in respect of the supply. 
  
  ### Joint and several, or solidary, liability
  
  (3) If a particular person provides to another person evidence that tax in respect of an importation has been paid, if the particular person made a false statement to the other person, if the false statement is relevant to the determination of whether paragraph (1)(c) is applicable in respect of the importation and if the other person claimed an input tax credit (in this subsection referred to as the “non-allowable input tax credit”) to which the other person was not entitled but to which the other person would have been entitled if paragraph (1)(c) were applicable in respect of the importation, the following rules apply: 
  (a) the particular person and the other person are jointly and severally, or solidarily, liable for all obligations under this Part that arise upon or as a consequence of the other person having claimed the non-allowable input tax credit; 
  (b) the Minister may assess the particular person for any amount for which the particular person is liable under this subsection and sections 296 to 311 apply with any modifications that the circumstances require; and 
  (c) if the other person did not know and could not reasonably be expected to have known that the particular person made a false statement and if the other person relied in good faith on the false statement and, because of such reliance, claimed the non-allowable input tax credit, despite section 296, the Minister is not to assess the other person for any obligations under this Part that arose upon or as a consequence of the other person having claimed the non-allowable input tax credit. 
  
  ### Notification and records — warehouse
  
  211.24 A particular person (other than a prescribed person) that in the course of a business makes one or more particular supplies of a service of storing in Canada tangible personal property (other than a service that is incidental to the supply by the particular person of a freight transportation service, as defined in section 1 of Part VII of Schedule VI) offered for sale by another person that is a non-resident person shall  
  (a) notify the Minister of this fact, in prescribed form containing prescribed information and filed with the Minister in prescribed manner, on or before 
  (i) the day that is 
  (A) if the particular person makes those particular supplies in the course of a business carried on as of July 1, 2021, January 1, 2022, and 
  (B) in any other case, six months after the day on which the particular person last began making those particular supplies in the course of a business, or 
  (ii) any later day that the Minister may allow; and 
  (b) in respect of those particular supplies, maintain records containing information specified by the Minister. 
  
  ### Information return — operator
  
  211.25 A person (other than a prescribed person) that is a registrant at any time during a calendar year and that is a distribution platform operator in respect of a qualifying tangible personal property supply made in the calendar year shall file with the Minister an information return for the calendar year, in prescribed form containing prescribed information, before July of the following calendar year. The Minister may require that the information return be filed by way of electronic filing. 
  
  # DIVISION III 
  
  ## Tax on Importation of Goods 
  
  ### Imposition of goods and services tax
  
  212 Subject to this Part, every person who is liable under the Customs Act to pay duty on imported goods, or who would be so liable if the goods were subject to duty, shall pay to Her Majesty in right of Canada tax on the goods calculated at the rate of 5% on the value of the goods.  
  
  ### Meaning of 
  *commercial goods* 
  
  212.1 (1) In this section, 
  *commercial goods* means goods that are imported for sale or for any commercial, industrial, occupational, institutional or other like use.  
  
  ### Tax in participating province
  
  (2) Subject to this Part, every person that is liable under the Customs Act to pay duty on imported goods, or would be so liable if the goods were subject to duty, shall pay to Her Majesty in right of Canada, in addition to the tax imposed by section 212, a tax on the goods calculated at the tax rate for a participating province on the value of the goods if  
  (a) the goods are prescribed goods imported at a place in the participating province; or 
  (b) the goods are not prescribed for the purposes of paragraph (a) and the person is resident in the participating province. 
  
  ### Exception
  
  (3) Paragraph (2)(b) does not apply to goods that are accounted for as commercial goods under section 32 of the Customs Act, specified motor vehicles or a mobile home or a floating home that has been used or occupied in Canada by any individual.  
  
  ### Application in offshore areas
  
  (4) Paragraph (2)(b) does not apply to goods imported by or on behalf of a person that is resident in the Nova Scotia offshore area or the Newfoundland offshore area unless the goods are imported for consumption, use or supply in the course of an offshore activity or the person is also resident in a participating province that is not an offshore area. 
  
  ### Exception
  
  213 No tax under this Division is payable in respect of goods included in Schedule VII. 
  
  ### Security
  
  213.1 For the purposes of this Division, the Minister may require a person mentioned in section 212 or 212.1 who imports goods to provide security, in an amount determined by the Minister and subject to such terms and conditions as the Minister may specify, for the payment of any amount that is or may become payable by the person under this Division, where provisions of the Customs Act, the Customs Tariff or any other laws relating to customs under which security may be required do not apply to the payment of that amount.  
  
  ### Import certificate
  
  213.2 (1) The Minister may, on the request of a registrant who imports goods, issue to the registrant, subject to such conditions as the Minister may specify, a written authorization (in this section referred to as an “import certificate”) for the purpose of applying, on and after the effective date specified in the authorization, section 8.1 of Schedule VII in respect of goods of a particular class imported by the registrant, in which event the Minister shall assign to the registrant a number to be disclosed when the goods are accounted for under section 32 of the Customs Act.  
  
  ### Application
  
  (2) A request for an import certificate shall contain prescribed information and be filed with the Minister in prescribed manner. 
  
  ### Cancellation
  
  (3) The Minister may, after giving a person to whom an import certificate has been issued reasonable written notice, cancel the import certificate of the person if 
  (a) the person fails to comply with any condition attached to the certificate or any provision of this Division, 
  (b) the Minister determines that it is no longer required for the purposes for which it was issued, or generally for the purposes of this Division, or 
  (c) it can reasonably be expected that the person will no longer be importing goods of a class in respect of which the certificate was issued in circumstances in which the goods would be included in Schedule VII, and, where the Minister cancels the import certificate of a person, the Minister shall notify the person in writing of the cancellation and the effective date of the cancellation. 
  
  ### Application after cancellation
  
  (4) Where the Minister has cancelled the import certificate of a person in circumstances described in paragraph (3)(a), the Minister shall not issue a new certificate under subsection (1) before the day that is two years after the day on which the cancellation is effective. 
  
  ### Cessation
  
  (5) An import certificate issued under this section ceases to have effect on the earlier of 
  (a) the effective date of the cancellation of the certificate under subsection (3), and 
  (b) the day that is three years after the effective date of the certificate. 
  
  ### Payment of taxes
  
  214 Tax on goods under this Division shall be paid and collected under the Customs Act, and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the tax were a customs duty levied on the goods under the Customs Tariff and, for those purposes, the Customs Act, with such modifications as the circumstances require, applies subject to this Division.  
  
  ### Deduction
  
  214.1 Where tax under section 212.1 is payable by a person and all or any portion of that tax is an amount that is prescribed for the purposes of subsection 234(3), that amount shall be deducted from that tax in determining the amount required to be paid and collected under section 214. 
  
  ### Value of goods
  
  215 (1) For the purposes of this Division, the value of goods shall be deemed to be equal to the total of 
  (a) the value of the goods, as it would be determined under the Customs Act for the purpose of calculating duties imposed on the goods at a percentage rate, whether the goods are in fact subject to duty, and  
  (b) the amount of all duties and taxes, if any, payable on the goods under the Customs Tariff, the Excise Act, 2001, the Special Import Measures Act, this Act (other than this Part) or any other law relating to customs.  
  
  ### Idem
  
  (2) Notwithstanding subsection (1), for the purposes of this Division, the value of goods imported in prescribed circumstances shall be determined in prescribed manner. 
  
  ### Value of goods re-imported after processing
  
  (3) The value of goods that are being imported for the first time after having been processed (as defined in subsection 2(1) of the Value of Imported Goods (GST/HST) Regulations) outside Canada shall be determined for the purposes of this Division without regard to section 13 of those Regulations if  
  (a) the value of the goods would, but for this subsection, be determined for the purposes of this Division under that section; and 
  (b) they are the same goods, in their processed state, as other goods, or incorporate, as a result of their processing, other goods, that were last imported in circumstances in which no tax was payable under this Division because of section 8.1 or 11 of Schedule VII. 
  
  ### Rebate for returned goods
  
  215.1 (1) Where 
  (a) a person paid tax under this Division on goods that were acquired by the person on consignment, approval, sale-or-return basis or other similar terms, 
  (b) the goods are, within sixty days after their release and before they are used or consumed otherwise than on a trial basis, exported by the person for the purpose of returning them to the supplier and are not damaged after their release and before the exportation, and 
  (c) within two years after the day the tax was paid, the person files with the Minister an application, in prescribed form containing prescribed information, for a rebate of the tax, the Minister shall, subject to section 263, pay a rebate to the person equal to the amount of the tax paid on the goods. 
  
  ### Rebate for goods damaged, etc.
  
  (2) Where 
  (a) a person paid an amount as tax under this Division on goods that were imported 
  (i) for consumption, use or supply otherwise than exclusively in the course of a commercial activity of the person, or 
  (ii) for consumption, use or supply in the course of a commercial activity of the person and the person was, at the time of the release of the goods, a small supplier who was not registered under Subdivision D of Division V, 
  (b) the Minister of Public Safety and Emergency Preparedness has, under any of sections 73, 74 and 76 of the Customs Act, granted an abatement or refund of all or part of the duties paid on the goods,  
  (c) the person has not been and is not entitled to be compensated under a warranty for loss suffered because of any of the circumstances described in those sections by receiving a supply of replacement parts, or replacement property, that are goods included in section 5 of Schedule VII, and 
  (d) within two years after the day the amount was paid as tax under this Division, the person files with the Minister an application, in prescribed form containing prescribed information, for a rebate of the amount, the Minister shall, subject to section 263, pay a rebate to the person equal to the amount determined by the formula is the total of the rate of tax imposed under section 212 at the time the goods were accounted for under subsection 32(1), (2) or (5) of the Customs Act and, where an amount was paid as tax under section 212.1, the rate of tax imposed under that section at that time;  is the amount of the abatement or refund granted under the Customs Act,  is the amount of the duties that were the subject of the abatement or refund, and is the value for duty of the goods under that Act. 
  
  ### Abatement or refund of tax as if it were duty
  
  (3) Subject to section 263, sections 73, 74 and 76 of the Customs Act apply, with any modifications that the circumstances require, to an amount paid by a person as tax under this Division as though the amount were duties paid under that Act, where  
  (a) the amount was paid as tax on goods that were imported 
  (i) for consumption, use or supply otherwise than exclusively in the course of a commercial activity of the person, or 
  (ii) for consumption, use or supply in the course of a commercial activity of the person and the person was, at the time of the release of the goods, a small supplier who was not registered under Subdivision D of Division V; 
  (b) if the goods had been subject to duties paid under that Act, an abatement or refund of the whole or part of the duties could have been granted under section 73, 74 or 76 of that Act because of circumstances 
  (i) described in paragraph 73(a) or (b), any of paragraphs 74(1)(a) to (c) or subsection 76(1) of that Act, or 
  (ii) in which an error was made in the determination under subsection 58(2) of that Act of the value of the goods and the determination has not been the subject of a decision under any of sections 59 to 61 of that Act; 
  (c) the person has not been and is not entitled to be compensated under a warranty for loss suffered because of any of those circumstances by receiving a supply of replacement parts, or replacement property, that are goods included in section 5 of Schedule VII; and 
  (d) within two years after the day on which the amount was paid as tax under this Division, the person files with the Minister an application, in prescribed form containing prescribed information, for a rebate of the amount. 
  
  ### Meaning of 
  *determination of the tax status* 
  
  216 (1) In this section, 
  *determination of the tax status* of goods means a determination, re-determination or further re-determination that the goods are, or are not, included in Schedule VII.  
  
  ### Application of Customs Act 
  
  (2) Subject to subsections (4) to (6), the Customs Act (other than subsections 67(2) and (3) and sections 68 and 70) and the regulations made under that Act apply, with such modifications as the circumstances require, to the determination of the tax status of goods for the purposes of this Division as if it were the determination, re-determination or further re-determination, as the case requires, of the tariff classification of the goods.  
  
  ### Idem
  
  (3) The Customs Act and the regulations made under that Act apply, with such modifications as the circumstances require, to the appraisal, re-appraisal or further re-appraisal of the value of goods for the purposes of this Division as if it were the appraisal, re-appraisal or further re-appraisal, as the case requires, of the value for duty of the goods.  
  
  ### Appeals of determination of tax status
  
  (4) In applying the Customs Act to a determination of the tax status of goods, the references in that Act to the “Canadian International Trade Tribunal” shall be read as references to the “Tax Court of Canada”.  
  
  ### Application of Part IX and Tax Court of Canada Act 
  
  (5) The provisions of this Part and of the Tax Court of Canada Act that apply to an appeal taken under section 302 apply, with any modifications that the circumstances require, to an appeal taken under subsection 67(1) of the Customs Act from a decision of the President of the Canada Border Services Agency made under section 60 or 61 of that Act in a determination of the tax status of goods as if the decision of the President were a confirmation of an assessment or a reassessment made by the Minister under subsection 301(3) or (4) as a consequence of a notice of objection filed under subsection 301(1.1) by the person to whom the President is required to give notice under section 60 or 61 of the Customs Act, as the case may be, of the decision.  
  
  ### Rebate resulting from appraisal or re-appraisal
  
  (6) If, because of an appraisal, a re-appraisal or a further re-appraisal of the value of goods or a determination of the tax status of goods, it is determined that the amount that was paid as tax under this Division on the goods exceeds the amount of tax that is required under this Division to be paid on the goods and a refund of the excess would be given under paragraph 59(3)(b) or 65(1)(b) of the Customs Act if the tax under this Division on the goods were a customs duty on the goods levied under the Customs Tariff, a rebate of the excess shall, subject to section 263, be paid to the person who paid the excess, and the provisions of the Customs Act that relate to the payment of such refunds and interest on such refunds apply, with any modifications that the circumstances require, as if the rebate of the excess were a refund of duty.  
  
  ### Application of s. 69 of Customs Act 
  
  (7) Subject to section 263, section 69 of the Customs Act applies, with such modifications as the circumstances require, where an appeal in respect of the value of goods or a determination of the tax status of goods is taken for the purpose of determining whether tax under this Division on the goods is payable or of determining the amount of such tax.  
  
  # DIVISION IV 
  
  ## Tax on Imported Taxable Supplies 
  
  ### Definitions
  
  217 The following definitions apply in this Division.  
  *Canadian activity* of a person means an activity of the person carried on, engaged in or conducted in Canada. (activité au Canada)   
  *ceding commission* means an amount that is paid to a particular insurer by another insurer under an agreement for the supply of a financial service that includes the issuance, renewal, variation or transfer of ownership of a policy of reinsurance issued by the other insurer in respect of one or more particular insurance policies issued by the particular insurer and that compensates the particular insurer for property acquired, manufactured or produced, and for services acquired or performed, exclusively in Canada by the particular insurer in order to issue and administer the particular insurance policies. (commission de réassurance)   
  *duty* means anything done by an employee in the course of, or in relation to, the office or employment of the employee. (tâche)   
  *employee* includes an individual who agrees to become an employee. (salarié)   
  *external charge* for a specified year of a qualifying taxpayer in respect of an outlay or expense described in any of paragraphs 217.1(2)(a) to (c) means the amount in respect of the outlay or expense determined by the formula  is the amount of the outlay or expense that 
  (a) is allowed as a deduction, an allowance or an allocation for a reserve under the Income Tax Act in computing the qualifying taxpayer’s income for the specified year, or would be so allowed if  
  (i) the qualifying taxpayer’s income were computed in accordance with that Act, 
  (ii) the qualifying taxpayer carried on a business in Canada, and 
  (iii) that Act applied to the qualifying taxpayer, and 
  (b) may reasonably be regarded as being applicable to a Canadian activity of the qualifying taxpayer; and is the total of all amounts, each of which is included in the amount determined under the description of A and is 
  (a) a permitted deduction for the specified year or a preceding specified year of the qualifying taxpayer, other than a returned commission included in paragraph (b), or 
  (b) if a particular amount, included in the amount determined under the description of A, is any part of the value of the consideration for a supply made to the qualifying taxpayer of a financial service that includes the issuance, renewal, variation or transfer of ownership of a policy of reinsurance in respect of one or more particular insurance policies issued by the qualifying taxpayer, an amount (in this description referred to as a 
  *returned commission*) included in the particular amount that  
  (i) is attributable to expenses incurred exclusively in Canada by the qualifying taxpayer to issue and administer the particular insurance policies, 
  (ii) is returned to the qualifying taxpayer as a ceding commission in respect of the particular insurance policies, and 
  (iii) is required to be included under the Income Tax Act in computing the qualifying taxpayer’s income for the specified year or for another specified year of the qualifying taxpayer, or would be so required to be included if the conditions set out in subparagraphs (a)(i) to (iii) of the description of A applied to the qualifying taxpayer. (frais externes)   
  *imported taxable supply* means  
  (a) a taxable supply (other than a zero-rated or prescribed supply) of a service made outside Canada to a person who is resident in Canada, other than a supply of a service that is 
  (i) acquired for consumption, use or supply exclusively in the course of commercial activities of the person or activities that are engaged in exclusively outside Canada by the person and that are not part of a business or an adventure or concern in the nature of trade engaged in by the person in Canada, 
  (ii) consumed by an individual exclusively outside Canada (other than a training service the supply of which is made to a person who is not a consumer), 
  (iii) in respect of real property situated outside Canada, 
  (iv) a service (other than a custodial or nominee service in respect of securities or precious metals of the person) in respect of tangible personal property that is 
  (A) situated outside Canada at the time the service is performed, or 
  (B) exported as soon after the service is performed as is reasonable having regard to the circumstances surrounding the exportation and is not consumed, used or supplied in Canada after the service is performed and before the exportation of the property, 
  (v) a transportation service, or 
  (vi) a service rendered in connection with criminal, civil or administrative litigation outside Canada, other than a service rendered before the commencement of such litigation, 
  (b) a taxable supply (other than a zero-rated or prescribed supply) of tangible personal property made by a non-resident person that is not registered under Subdivision D of Division V to a recipient that is a registrant if 
  (i) the recipient gives to another registrant a certificate described in paragraph 179(2)(d) in respect of an acquisition of physical possession of the property by the recipient, and 
  (ii) the recipient is not acquiring the property for consumption, use or supply exclusively in the course of its commercial activities or the property is a passenger vehicle that the recipient is acquiring for use in Canada as capital property in its commercial activities and that has a capital cost to the recipient exceeding the amount deemed under any of paragraphs 13(7)(g) to (i) of the Income Tax Act to be the capital cost of the vehicle to the recipient for the purposes of section 13 of that Act;  
  (b.01) a taxable supply (other than a zero-rated or prescribed supply) of tangible personal property made by way of sale by a non-resident person that is not registered under Subdivision D of Division V to a recipient that is a registrant if 
  (i) the recipient gives to another registrant a certificate described in subparagraph 179(3)(c)(i) in respect of an acquisition of physical possession of the property by a third person, and 
  (ii) the recipient is not acquiring the property for consumption, use or supply exclusively in the course of its commercial activities or the property is a passenger vehicle that the recipient is acquiring for use in Canada as capital property in its commercial activities and that has a capital cost to the recipient exceeding the amount deemed under any of paragraphs 13(7)(g) to (i) of the Income Tax Act to be the capital cost of the vehicle to the recipient for the purposes of section 13 of that Act;  
  (b.1) a taxable supply (other than a zero-rated or prescribed supply) of tangible personal property made by way of sale at a particular time by a non-resident person that is not registered under Subdivision D of Division V to a recipient that is a registrant if 
  (i) the recipient acquires physical possession of the property as the recipient of another supply of the property made by way of lease, licence or similar arrangement and either 
  (A) gives to another registrant a certificate described in paragraph 179(2)(d) in respect of that acquisition of physical possession of the property, or 
  (B) claims an input tax credit in respect of tax that is deemed to have been paid or payable by the recipient under subsection 178.8(2) or paragraph 180(d) in respect of the property, and 
  (ii) the recipient is not acquiring, as the recipient of the taxable supply, the property for consumption, use or supply exclusively in the course of its commercial activities or the property is a passenger vehicle that the recipient is acquiring for use in Canada as capital property in its commercial activities and that has a capital cost to the recipient exceeding the amount deemed under any of paragraphs 13(7)(g) to (i) of the Income Tax Act to be the capital cost of the vehicle to the recipient for the purposes of section 13 of that Act;  
  (b.11) a particular taxable supply (other than a zero-rated supply) of property by way of lease, licence or similar arrangement that is deemed under subsection 143(1) to be made outside Canada to a recipient (in this paragraph referred to as the “lessee”) who is resident in Canada, if 
  (i) a previous supply of the property to the lessee was made by way of lease, licence or similar arrangement (in this paragraph referred to as the “first lease”) that was deemed under subsection 178.8(4) to be made in Canada, 
  (ii) the agreement for the particular taxable supply is an agreement (in this subparagraph referred to as a “subsequent lease”) that results from the assignment of, or that succeeds, upon the renewal or variation of, the first lease or a subsequent lease, and 
  (iii) the lessee is not a registrant who is acquiring the property for consumption, use or supply exclusively in the course of commercial activities of the lessee; 
  (b.2) a taxable supply of a continuous transmission commodity, if the supply is deemed under section 143 to be made outside Canada to a registrant by a person who was the recipient of a supply of the commodity that was a zero-rated supply included in section 15.1 of Part V of Schedule VI or that would, but for subparagraph (a)(v) of that section, have been included in that section, and the registrant is not acquiring the commodity for consumption, use or supply exclusively in the course of commercial activities of the registrant, 
  (b.3) a supply, included in section 15.2 of Part V of Schedule VI, of a continuous transmission commodity that is neither exported, as described in paragraph (a) of that section, nor supplied, as described in paragraph (b) of that section, by the recipient and the recipient is not acquiring the commodity for consumption, use or supply exclusively in the course of commercial activities of the recipient, 
  (c) a taxable supply (other than a zero-rated or prescribed supply) of intangible personal property made outside Canada to a person who is resident in Canada, other than a supply of property that 
  (i) is acquired for consumption, use or supply exclusively in the course of commercial activities of the person or activities that are engaged in exclusively outside Canada by the person and that are not part of a business or an adventure or concern in the nature of trade engaged in by the person in Canada, 
  (ii) may not be used in Canada, or 
  (iii) relates to real property situated outside Canada, to a service to be performed wholly outside Canada or to tangible personal property situated outside Canada, 
  (c.1) a taxable supply made in Canada of intangible personal property that is a zero-rated supply only because it is included in section 10 or 10.1 of Part V of Schedule VI, other than 
  (i) a supply that is made to a consumer of the property, or 
  (ii) a supply of intangible personal property that is acquired for consumption, use or supply exclusively in the course of commercial activities of the recipient of the supply or activities that are engaged in exclusively outside Canada by the recipient of the supply and that are not part of a business or adventure or concern in the nature of trade engaged in by that recipient in Canada, 
  (d) a supply of property that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, if the recipient is not acquiring the property for consumption, use or supply exclusively in the course of commercial activities of the recipient and 
  (i) an authorization of the recipient to use the certificate referred to in that section is not in effect at the time the supply is made, or 
  (ii) the recipient does not export the property in the circumstances described in paragraphs 1(b) to (d) of that Part; or 
  (e) a supply of property that is a zero-rated supply only because it is included in section 1.2 of Part V of Schedule VI, if the recipient is not acquiring the property for consumption, use or supply exclusively in the course of commercial activities of the recipient and 
  (i) an authorization of the recipient to use the certificate referred to in that section is not in effect at the time the supply is made, or 
  (ii) the recipient is not acquiring the property for use or supply as domestic inventory or as added property (as those expressions are defined in subsection 273.1(1)). ( fourniture taxable importée)   
  *loading* means any part of the value of the consideration for a supply of a financial service that is attributable to administrative expenses, an error or profit margin, business handling costs, commissions, communications expenses, claims handling costs, employee compensation or benefits, execution or clearing costs, management fees, marketing or advertising costs, occupancy or equipment expenses, operating expenses, acquisition costs, premium collection costs, processing costs or any other costs or expenses of a person that makes the supply, other than commissions for a specified financial service or the part of the value of the consideration that is equal to  
  (a) if the financial service includes the issuance, renewal, variation or transfer of ownership of an insurance policy but not of any other qualifying instrument, the total of 
  (i) the estimate of the net premium of the insurance policy, and 
  (ii) if the insurance policy is a policy of reinsurance, the margin for risk transfer of the insurance policy; 
  (b) if the financial service includes the issuance, renewal, variation or transfer of ownership of a qualifying instrument (other than an insurance policy), the estimate of the default risk premium that is directly associated with the qualifying instrument; and 
  (c) if the financial service includes the issuance, renewal, variation or transfer of ownership of an insurance policy and a qualifying instrument (other than an insurance policy), the amount determined by the formula is the total of 
  (i) the estimate of the net premium of the insurance policy, and 
  (ii) if the insurance policy is a policy of reinsurance, the margin for risk transfer of the insurance policy, and is the estimate of the default risk premium that is directly associated with the qualifying instrument. ( chargement)   
  *margin for risk transfer* means an amount payable to a particular insurer by another insurer under an agreement for the supply of a financial service, which includes the issuance, renewal, variation or transfer of ownership of a policy of reinsurance issued by the particular insurer, that exclusively represents compensation for the assumption, by the particular insurer, of the risk of potential future claims under particular insurance policies issued by the other insurer and that is in addition to the estimate of the net premium of the policy of reinsurance. (marge de transfert de risques)   
  *permitted deduction* for a specified year of a qualifying taxpayer means an amount that is  
  (a) consideration for a supply of property or a service, or the value of imported goods, upon which tax under this Part (other than section 218.01 or subsection 218.1(1.2)) became payable during the specified year by the qualifying taxpayer; 
  (b) tax referred to in paragraph (a) in respect of a supply or importation referred to in that paragraph; 
  (c) a provincial levy that is prescribed for the purposes of section 154 and is in respect of a supply referred to in paragraph (a); 
  (d) an amount that is deemed, under subsection 248(18) or (18.1) of the Income Tax Act, to be assistance repaid by the qualifying taxpayer in respect of property or a service referred to in paragraph (a);  
  (e) consideration for a supply of property or a service (other than a financial service) made to the qualifying taxpayer as part of a transaction or series of transactions in which all participants deal at arm’s length with the qualifying taxpayer, unless 
  (i) that consideration is included in paragraph (a), or 
  (ii) an activity carried on, engaged in or conducted outside Canada, through a qualifying establishment of the qualifying taxpayer or of a person related to the qualifying taxpayer, relates in any manner to the supply; 
  (f) qualifying compensation of an employee of the qualifying taxpayer that is paid in the specified year by the qualifying taxpayer if the employee was primarily in Canada while performing the employee’s duties during the specified year; 
  (g) interest that is paid or payable by the qualifying taxpayer as the consideration for a supply of a financial service made to the qualifying taxpayer (other than an amount paid or credited by the qualifying taxpayer, or deemed by Part I of the Income Tax Act to have been paid or credited in the specified year by the qualifying taxpayer, to a person as, on account or in lieu of payment of, or in satisfaction of, a management or administration fee or charge (within the meaning of subsection 212(4) of that Act));  
  (h) dividends; 
  (i) consideration (other than interest referred to in paragraph (g) or dividends referred to in paragraph (h)) for a specified arm’s length supply made to the qualifying taxpayer; 
  (j) consideration (other than interest referred to in paragraph (g) or dividends referred to in paragraph (h)) for a supply (other than a specified derivative supply) of a specified financial service made to the qualifying taxpayer; 
  (k) consideration (other than interest referred to in paragraph (g), dividends referred to in paragraph (h) or consideration referred to in paragraph (k.1)) for a specified non-arm’s length supply made to the qualifying taxpayer less the total of all amounts, each of which is a part of the value of the consideration and is loading; 
  (k.1) consideration (other than interest referred to in paragraph (g) or dividends referred to in paragraph (h)) for a specified non-arm’s length supply made to the qualifying taxpayer of a financial service of issuing, renewing, varying or transferring the ownership of a policy of reinsurance, issued by an insurer to the qualifying taxpayer, in respect of one or more particular insurance policies issued by the qualifying taxpayer, if 
  (i) the policy of reinsurance is in accordance with all applicable guidelines with respect to sound reinsurance practices and procedures, as amended from time to time, that are issued by the Superintendent or a provincial regulatory authority having powers similar to those of the Superintendent, 
  (ii) the qualifying taxpayer pays to the insurer, or to persons related to the insurer (each of which is referred to in this paragraph as an 
  *affiliate*), amounts (each of which is referred to in this paragraph as a 
  *fee*) under one or more agreements in writing, each of which is not the policy of reinsurance and is between the qualifying taxpayer and the insurer or an affiliate,  
  (iii) the fees include 99% or more of the total of all amounts, each of which 
  (A) is payable to the insurer or to an affiliate for property acquired, manufactured or produced, or for a service acquired or performed, in whole or in part outside Canada in respect of the policy of reinsurance, and 
  (B) does not represent 
  (I) the estimate of the net premium of the policy of reinsurance, 
  (II) the margin for risk transfer of the policy of reinsurance, or 
  (III) expenses incurred exclusively in Canada by the qualifying taxpayer to issue and administer the particular insurance policies, 
  (iv) each fee paid by the qualifying taxpayer to the insurer or an affiliate 
  (A) is commensurate with the 
  *arm’s length transfer price*, as defined in subsection 247(1) of the Income Tax Act, for the provision of the property and services to which the fee relates, and  
  (B) is allowed as a deduction, an allowance or an allocation for a reserve under the Income Tax Act in computing the qualifying taxpayer’s income for a specified year, or would be so allowed if the conditions set out in subparagraphs (a)(i) to (iii) of the description of A in the definition 
  *qualifying consideration* applied to the qualifying taxpayer, and  
  (v) the qualifying taxpayer pays or remits any amount that is payable or remittable under this Part by the qualifying taxpayer in respect of each fee paid by the qualifying taxpayer to the insurer or an affiliate; 
  (l) consideration (other than interest referred to in paragraph (g) or dividends referred to in paragraph (h)) for a specified derivative supply made to the qualifying taxpayer; or 
  (m) a prescribed amount. ( déduction autorisée)   
  *qualifying compensation* of an employee means any salary, wages and other remuneration of the employee and any other amount that is required to be included as income from an office or employment in computing the income of the employee for the purposes of the Income Tax Act. (rétribution admissible)   
  *qualifying consideration* for a specified year of a qualifying taxpayer in respect of an outlay made, or expense incurred, outside Canada means the amount in respect of the outlay or expense determined by the formula  is the amount of the outlay or expense that 
  (a) is allowed as a deduction, an allowance or an allocation for a reserve under the Income Tax Act in computing the qualifying taxpayer’s income for the specified year, or would be so allowed if  
  (i) the qualifying taxpayer’s income were computed in accordance with that Act, 
  (ii) the qualifying taxpayer carried on a business in Canada, and 
  (iii) that Act applied to the qualifying taxpayer, and 
  (b) may reasonably be regarded as being applicable to a Canadian activity of the qualifying taxpayer; and is the total of all amounts each of which is included in the amount determined under the description of A and is 
  (a) an amount that is a permitted deduction for the specified year or a preceding specified year of the qualifying taxpayer, other than an amount that is included in paragraph (b) or that is a returned commission included in paragraph (c), 
  (b) an amount that represents a cost to a qualifying establishment of the qualifying taxpayer in a country other than Canada, or a share of a profit of the qualifying taxpayer that is redistributed from a qualifying establishment of the qualifying taxpayer in Canada to a qualifying establishment of the qualifying taxpayer in a country other than Canada, that is solely attributable to the issuance, renewal, variance or transfer of ownership by the qualifying taxpayer of a financial instrument that is a derivative, provided that all or substantially all of the amount is 
  (i) an error or profit margin, or employee compensation or benefits, that is reasonably attributable to the issuance, renewal, variance or transfer of ownership, or 
  (ii) the estimate of the default risk premium that is directly associated with the derivative, or 
  (c) if a particular amount, included in the amount determined under the description of A, is any part of the value of the consideration for a supply made to the qualifying taxpayer of a financial service that includes the issuance, renewal, variation or transfer of ownership of a policy of reinsurance in respect of one or more particular insurance policies issued by the qualifying taxpayer, an amount (in this description referred to as a 
  *returned commission*) included in the particular amount that  
  (i) is attributable to expenses incurred exclusively in Canada by the qualifying taxpayer to issue and administer the particular insurance policies, 
  (ii) is returned to the qualifying taxpayer as a ceding commission in respect of the particular insurance policies, and 
  (iii) is required to be included under the Income Tax Act in computing the qualifying taxpayer’s income for the specified year or for another specified year of the qualifying taxpayer, or would be so required to be included if the conditions set out in subparagraphs (a)(i) to (iii) of the description of A applied to the qualifying taxpayer. (contrepartie admissible)   
  *qualifying establishment* means a permanent establishment as defined in subsection 123(1) or a permanent establishment as defined in subsection 132.1(2). (établissement admissible)   
  *qualifying instrument* means money, a credit card voucher, a charge card voucher or a financial instrument. (instrument admissible)   
  *qualifying service* means a service or duty. (service admissible)   
  *reporting period* [Repealed, 1997, c. 10, s. 42]   
  *specified arm’s length supply* means a supply (other than a specified derivative supply) of a financial service (other than a specified financial service) made to a qualifying taxpayer as part of a transaction or series of transactions in which all participants deal at arm’s length with the qualifying taxpayer. (fourniture déterminée entre personnes sans lien de dépendance)   
  *specified derivative supply* means a supply  
  (a) that is a supply of a financial service of issuing, renewing, varying or transferring the ownership of a financial instrument that is a derivative, or that is a supply made by an agent, salesperson or broker of arranging for the issuance, renewal, variance or transfer of ownership of a financial instrument that is a derivative; and 
  (b) for which all or substantially all of the value of the consideration is attributable to 
  (i) any error or profit margin, or employee compensation or benefits, reasonably attributable to the supply, and 
  (ii) amounts that are not loading. ( fourniture déterminée d’instrument dérivé)   
  *specified financial service* means a financial service supplied to a qualifying taxpayer by an agent, salesperson or broker of arranging for the issuance, renewal, variation or transfer of ownership of a financial instrument that is property of a person other than the agent, salesperson or broker. (service financier déterminé)   
  *specified non-arm’s length supply* means a supply (other than a specified derivative supply) of a financial service (other than a specified financial service) that includes the issuance, renewal, variation or transfer of ownership of a qualifying instrument, made to a qualifying taxpayer as part of a transaction or series of transactions in which any participant does not deal at arm’s length with the qualifying taxpayer. (fourniture déterminée entre personnes ayant un lien de dépendance)   
  *specified year* of a person means  
  (a) in the case of a person that is described in paragraph (a) or (b) of the definition 
  *taxation year* in subsection 123(1), the taxation year of the person;  
  (b) in the case of a person that is a registrant but is not described in paragraph (a) or (b) of the definition 
  *taxation year* in subsection 123(1), the fiscal year of the person; and  
  (c) in any other case, the calendar year. ( année déterminée)   
  *taxing statute* of a country means a statute of the country, or of a state, province or other political subdivision of the country, that imposes a levy or charge of general application that is an income or profits tax. (loi fiscale)   
  *transaction* includes an arrangement or event. (opération)  
  
  ### Qualifying taxpayer
  
  217.1 (1) For the purposes of this Division, a person is a qualifying taxpayer throughout a specified year of the person if 
  (a) the person is a financial institution at any time in the specified year; and 
  (b) the person, at any time in the specified year 
  (i) is resident in Canada, 
  (ii) has a qualifying establishment in Canada, 
  (iii) where a majority of the persons having beneficial ownership of the person’s property in Canada are resident in Canada, carries on, engages in or conducts an activity in Canada, or 
  (iv) is a prescribed person or a person of a prescribed class. 
  
  ### Outlay made, or expense incurred, outside Canada
  
  (2) For the purposes of this Division, an outlay made, or expense incurred, outside Canada includes any amount representing 
  (a) an outlay made, or expense incurred, by a qualifying taxpayer in respect of 
  (i) property that is, in whole or in part, transferred outside Canada to the qualifying taxpayer, 
  (ii) property, the possession or use of which is, in whole or in part, given or made available outside Canada to the qualifying taxpayer, or 
  (iii) a service that is performed, in whole or in part, outside Canada for the benefit of the qualifying taxpayer or is rendered, in whole or in part, outside Canada to the qualifying taxpayer; 
  (b) an adjustment (within the meaning of subsection 247(2) of the Income Tax Act) to an outlay or expense described in paragraph (a);  
  (c) an expenditure or purchase in respect of a reportable transaction (as defined in section 233.1 of the Income Tax Act) in respect of which a qualifying taxpayer is required under that section to file with the Minister a return in prescribed form containing prescribed information, or would be so required if the qualifying taxpayer carried on a business in Canada and that Act applied to the qualifying taxpayer;  
  (d) in the case of a qualifying taxpayer that is resident in Canada, qualifying compensation of an employee paid in a specified year by the qualifying taxpayer if 
  (i) in the specified year, a duty is performed by the employee outside Canada (in this subsection referred to as a “duty performed outside Canada”) at a qualifying establishment of the qualifying taxpayer or of a person related to the qualifying taxpayer, and 
  (ii) it is not the case that all or substantially all of the duties performed outside Canada by the employee in the specified year are performed elsewhere than at such qualifying establishments; and 
  (e) in the case of a qualifying taxpayer that is not resident in Canada, 
  (i) an allocation by the qualifying taxpayer of an outlay or expense as an amount in respect of a business carried on in Canada by the qualifying taxpayer for the purpose of computing the qualifying taxpayer’s income under the Income Tax Act, or an amount that would be such an allocation if  
  (A) the qualifying taxpayer’s income were computed in accordance with that Act, 
  (B) anything done by the qualifying taxpayer through a qualifying establishment in Canada of the qualifying taxpayer were the carrying on of a business in Canada by the qualifying taxpayer, and 
  (C) that Act applied to the qualifying taxpayer, 
  (ii) an outlay or expense that may reasonably be regarded under the Income Tax Act as an amount that is applicable to a qualifying establishment in Canada of the qualifying taxpayer, or that would reasonably be so regarded if the qualifying establishment were a permanent establishment for purposes of that Act, the qualifying taxpayer carried on a business in Canada and that Act applied to the qualifying taxpayer, and  
  (iii) qualifying compensation of an employee paid in a specified year by the qualifying taxpayer. 
  
  ### Series of transactions
  
  (3) For the purposes of this Division, if there is a reference to a series of transactions, the series is deemed to include any related transactions completed in contemplation of the series. 
  
  ### Internal charge
  
  (4) For the purposes of this Division, any part of an amount in respect of a transaction or dealing between a particular qualifying establishment of a qualifying taxpayer in Canada and another qualifying establishment of the qualifying taxpayer in a particular country other than Canada is an internal charge for a specified year of the qualifying taxpayer if 
  (a) the amount meets the following criteria: 
  (i) the amount would be allowed as a deduction, an allowance or an allocation for a reserve under the Income Tax Act in computing the income of the particular qualifying establishment for the specified year if  
  (A) that Act applied to the particular qualifying establishment, 
  (B) the income of the particular qualifying establishment were computed in accordance with that Act, and 
  (C) for the purposes of that Act, 
  (I) anything done by the qualifying taxpayer through the particular qualifying establishment were the carrying on of a business in Canada, 
  (II) the particular qualifying establishment were a permanent establishment, and 
  (III) the specified year were the particular qualifying establishment’s taxation year, 
  (ii) where the qualifying taxpayer has not specified pursuant to paragraph 217.2(2)(c) that subparagraph (iii) is to apply in all cases in determining the internal charges for the specified year and the particular country is a taxing country (as defined in subsection 126(7) of the Income Tax Act) that has a tax treaty (as defined in subsection 248(1) of that Act) with Canada, the amount would be required to be included in computing, under a taxing statute of the particular country that applies to the qualifying taxpayer, or that would apply if the other qualifying establishment were a permanent establishment for the purposes of that statute, the other qualifying establishment’s income or profits for any period (in this paragraph referred to as a “taxing period”) that ends during the specified year if  
  (A) the taxing statute applied to the other qualifying establishment, 
  (B) the other qualifying establishment’s income or profits were computed in accordance with the taxing statute, and 
  (C) for the purposes of the taxing statute, 
  (I) anything done by the qualifying taxpayer through the other qualifying establishment were the carrying on of a business in the particular country, and 
  (II) the other qualifying establishment were a permanent establishment and had the same taxing periods that the qualifying taxpayer would have under the taxing statute, and 
  (iii) where subparagraph (ii) does not apply, the amount would be required to be included in computing under the Income Tax Act the other qualifying establishment’s income for the specified year if  
  (A) the laws of Canada, and not the laws of the particular country, applied, with any modifications that the circumstances require, in the particular country, 
  (B) that Act applied to the other qualifying establishment, 
  (C) the other qualifying establishment’s income were computed in accordance with that Act, and 
  (D) for the purposes of that Act, 
  (I) anything done by the qualifying taxpayer through the other qualifying establishment were the carrying on of a business in the particular country, 
  (II) the other qualifying establishment were a permanent establishment, and 
  (III) the specified year were the other qualifying establishment’s taxation year; and 
  (b) the part of the amount is not 
  (i) an amount determined under the description of A in the formula in the definition 
  *external charge* in section 217 in calculating an external charge of the qualifying taxpayer for the specified year or a preceding specified year of the qualifying taxpayer,  
  (ii) a permitted deduction of the qualifying taxpayer for the specified year or a preceding specified year of the qualifying taxpayer, other than a permitted deduction of the qualifying taxpayer that is included under paragraph (a) of the description of B in the definition 
  *external charge* in section 217 in calculating an external charge of the qualifying taxpayer for the specified year or a preceding specified year of the qualifying taxpayer,  
  (iii) an amount that represents a cost to the other qualifying establishment, or a share of a profit of the qualifying taxpayer that is redistributed from the particular qualifying establishment to the other qualifying establishment, that is solely attributable to the issuance, renewal, variance or transfer of ownership by the qualifying taxpayer of a financial instrument that is a derivative, provided that all or substantially all of the amount is 
  (A) an error or profit margin, or employee compensation or benefits, that is reasonably attributable to the issuance, renewal, variance or transfer of ownership, or 
  (B) the estimate of the default risk premium that is directly associated with the derivative, or 
  (iv) a prescribed amount. 
  
  ### Separate entities
  
  (5) For the purposes of applying paragraph (4)(a) in respect of a particular qualifying establishment of a qualifying taxpayer in a country other than Canada and another qualifying establishment of the qualifying taxpayer in Canada, the following rules apply: 
  (a) the particular qualifying establishment is deemed to be a distinct and separate enterprise from the qualifying taxpayer, engaged in the same or similar activities under the same or similar conditions as the particular qualifying establishment and dealing wholly independently with the other qualifying establishment and with the part (in this subsection referred to as the “remainder of the qualifying taxpayer”) of the qualifying taxpayer, if any, that is neither the particular qualifying establishment nor the other qualifying establishment; 
  (b) the other qualifying establishment is deemed to be a distinct and separate enterprise from the qualifying taxpayer, engaged in the same or similar activities under the same or similar conditions as the other qualifying establishment and dealing wholly independently with the particular qualifying establishment and with the remainder of the qualifying taxpayer; and 
  (c) any transactions or dealings between any of the particular qualifying establishment, the other qualifying establishment and the remainder of the qualifying taxpayer are deemed to be supplies made on such terms as would have been agreed upon between parties dealing at arm’s length. 
  
  ### Qualifying rule for credits and rebates
  
  (6) If an amount (in this subsection referred to as a “qualifying expenditure”) of qualifying consideration, or of an external charge, of a qualifying taxpayer in respect of an outlay made, or expense incurred, outside Canada is greater than zero and, during a reporting period of the qualifying taxpayer during which the qualifying taxpayer is a registrant, tax under section 218.01 or subsection 218.1(1.2) in respect of the qualifying expenditure becomes payable by the qualifying taxpayer or is paid by the qualifying taxpayer without having become payable, the following rules apply for the purpose of determining an input tax credit or an eligible amount, as defined in subsection 261.01(1), of the qualifying taxpayer:  
  (a) the whole or part of property (in this subsection and subsection (8) referred to as “attributable property”) or of a qualifying service (in this subsection and subsection (8) referred to as an “attributable service”) to which the qualifying expenditure is attributable is deemed to have been acquired by the qualifying taxpayer at the time at which the outlay was made or the expense was incurred; 
  (b) the tax is deemed to be tax in respect of a supply of the attributable property or attributable service; and 
  (c) the extent to which the qualifying taxpayer acquired the attributable property or attributable service for consumption, use or supply in the course of commercial activities of the qualifying taxpayer is deemed to be the same extent as that to which the whole or part of the outlay or expense, which corresponds to the qualifying expenditure, was made or incurred to consume, use or supply the attributable property or attributable service in the course of commercial activities of the qualifying taxpayer. 
  
  ### Qualifying rule for credits and rebates — internal charge
  
  (7) If tax (in this subsection referred to as “internal tax”) under section 218.01 or subsection 218.1(1.2) in respect of an internal charge becomes payable by a qualifying taxpayer, or is paid by the qualifying taxpayer without having become payable, and the internal charge is determined based in whole or in part on the inclusion of an outlay made, or an expense incurred, outside Canada by the qualifying taxpayer, the following rules apply for the purpose of determining an input tax credit or an eligible amount, as defined in subsection 261.01(1), of the qualifying taxpayer:  
  (a) the whole or part of property (in this subsection and subsection (8) referred to as “internal property”) or of a qualifying service (in this subsection and subsection (8) referred to as an “internal service”) to which the outlay or expense is attributable is deemed to have been supplied to the qualifying taxpayer at the time the outlay was made or the expense was incurred; 
  (b) the amount of the internal tax that can reasonably be attributed to the outlay or expense is deemed to be tax (in this paragraph referred to as “attributed tax”) in respect of the supply of the internal property or the internal service, and the attributed tax is deemed to have become payable at the time the internal tax becomes payable by the qualifying taxpayer or is paid by the qualifying taxpayer without having become payable; and 
  (c) the extent to which the qualifying taxpayer acquired the internal property or internal service for consumption, use or supply in the course of commercial activities of the qualifying taxpayer is deemed to be the same extent as that to which the outlay or expense was made or incurred to consume, use or supply the internal property or internal service in the course of commercial activities of the qualifying taxpayer. 
  
  ### Input tax credits
  
  (8) For the purpose of determining an input tax credit of a qualifying taxpayer under section 169 
  (a) in respect of attributable property or an attributable service, the reference in that section to “property or a service” is to be read as a reference to “attributable property or an attributable service, within the meaning of those terms in paragraph 217.1(6)(a)”; and 
  (b) in respect of internal property or an internal service, the reference in that section to “property or a service” is to be read as a reference to “internal property or an internal service, within the meaning of those terms in paragraph 217.1(7)(a)”. 
  
  ### Election
  
  217.2 (1) A qualifying taxpayer that is resident in Canada may elect to determine tax under section 218.01 in accordance with paragraph 218.01(a) and tax under subsection 218.1(1.2) in accordance with paragraph 218.1(1.2)(a) for each specified year of the qualifying taxpayer during which the election is in effect. 
  
  ### Form and contents of election
  
  (2) An election made under subsection (1) by a qualifying taxpayer shall 
  (a) be made in prescribed form containing prescribed information; 
  (b) set out the first specified year of the qualifying taxpayer during which the election is to be in effect; 
  (c) specify if subparagraph 217.1(4)(a)(iii) is to apply in all cases in determining the internal charges for all specified years of the qualifying taxpayer during which the election is to be in effect; and 
  (d) be filed with the Minister in prescribed manner on or before the day on or before which the qualifying taxpayer’s return under section 219 in respect of tax under section 218.01 or subsection 218.1(1.2) for the first specified year is required to be filed. 
  
  ### Effective date
  
  (3) An election made under subsection (1) by a qualifying taxpayer shall become effective on the first day of the specified year set out in the form. 
  
  ### Cessation
  
  (4) An election made under subsection (1) by a qualifying taxpayer ceases to have effect on the earlier of 
  (a) the first day of the specified year of the qualifying taxpayer in which the qualifying taxpayer ceases to be resident in Canada; and 
  (b) the day on which a revocation of the election becomes effective. 
  
  ### Revocation
  
  (5) A qualifying taxpayer that has made an election under subsection (1) may revoke the election, effective on the first day of a specified year of the qualifying taxpayer that begins at least two years after the election became effective, by filing in prescribed manner with the Minister a notice of revocation in prescribed form containing prescribed information not later than the day on which the revocation is to become effective. 
  
  ### Restriction
  
  (6) If a revocation of an election made under subsection (1) becomes effective on a particular date, any subsequent election under that subsection is not a valid election unless the first day of the specified year set out in the subsequent election is at least two years after the day on which the revocation became effective. 
  
  ### Imposition of goods and services tax
  
  218 Subject to this Part, every recipient of an imported taxable supply shall pay to Her Majesty in right of Canada tax calculated at the rate of 5% on the value of the consideration for the imported taxable supply. 
  
  ### Imposition of goods and services tax
  
  218.01 Subject to this Part, every qualifying taxpayer shall, for each specified year of the qualifying taxpayer, pay to Her Majesty in right of Canada tax calculated at the rate of 5% on 
  (a) if an election under subsection 217.2(1) is in effect for the specified year, the amount determined by the formula is the total of all amounts, each of which is an internal charge for the specified year that is greater than zero, and is the total of all amounts, each of which is an external charge for the specified year that is greater than zero; and 
  (b) in any other case, the total of all amounts, each of which is qualifying consideration for the specified year that is greater than zero. 
  
  ### Tax in participating province
  
  218.1 (1) Subject to this Part, 
  (a) every person that is resident in a participating province and is the recipient of an imported taxable supply that is a supply of intangible personal property or a service that is acquired by the person for consumption, use or supply in participating provinces to an extent that is prescribed must, for each time an amount of consideration for the supply becomes due or is paid without having become due and for each participating province, pay to Her Majesty in right of Canada, in addition to the tax imposed by section 218, tax equal to the amount determined by the formula is the tax rate for the participating province, is the value of that consideration that is paid or becomes due at that time, and is the extent (expressed as a percentage) to which the person acquired the property or service for consumption, use or supply in the participating province; and 
  (b) every person that 
  (i) is a registrant and is the recipient of a supply, included in paragraph (b) of the definition 
  *imported taxable supply* in section 217, of property the physical possession of which is transferred to the registrant in a particular participating province,  
  (ii) is the recipient of a supply, included in any of paragraphs (b.01) to (b.3) of the definition imported taxable supply in section 217, of property that is delivered or made available to the person in a particular participating province and is either resident in that province or is a registrant, or  
  (iii) is the recipient of a supply that is included in paragraph (c.1), (d) or (e) of the definition 
  *imported taxable supply* in section 217 and that is made in a particular participating province  shall pay to Her Majesty in right of Canada, each time an amount of consideration for the supply becomes due or is paid without having become due, in addition to the tax imposed by section 218, tax equal to the amount determined by the formula is the tax rate for the particular participating province, is the value of that consideration that is paid or becomes due at that time, and is 
  (A) in the case of an imported taxable supply of tangible personal property, 100%, and 
  (B) in any other case, the extent (expressed as a percentage) to which the person acquired the property for consumption, use or supply in the particular participating province. 
  
  ### Delivery in a province
  
  (1.1) Section 3 of Part II of Schedule IX applies for the purpose of subparagraph (1)(b)(ii). 
  
  ### Tax in a participating province
  
  (1.2) Subject to this Part, every qualifying taxpayer that is resident in a participating province shall, for each specified year of the qualifying taxpayer and for each particular participating province, pay to Her Majesty in right of Canada, in addition to the tax payable under section 218.01, tax calculated at the tax rate for the particular participating province on 
  (a) if an election under subsection 217.2(1) is in effect for the specified year, the amount determined by the formula is the total of all amounts, each of which is an amount in respect of an internal charge for the specified year that is greater than zero determined by the formula is the internal charge, and is the extent (expressed as a percentage) to which the internal charge is attributable to outlays or expenses that were made or incurred to consume, use or supply the whole or part of property or of a qualifying service, in respect of which the internal charge is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in the particular participating province, and is the total of all amounts, each of which is an amount in respect of an external charge for the specified year that is greater than zero determined by the formula is the external charge, and is the extent (expressed as a percentage) to which the whole or part of the outlay or expense, which corresponds to the external charge, was made or incurred to consume, use or supply the whole or part of property or of a qualifying service, in respect of which the external charge is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in the particular participating province; and 
  (b) in any other case, the total of all amounts, each of which is an amount in respect of qualifying consideration for the specified year that is greater than zero determined by the formula is the qualifying consideration, and is the extent (expressed as a percentage) to which the whole or part of the outlay or expense, which corresponds to the qualifying consideration, was made or incurred to consume, use or supply the whole or part of property or of a qualifying service, in respect of which the qualifying consideration is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in the particular participating province. 
  
  ### Qualifying taxpayer resident in a province
  
  (1.3) Despite section 132.1 and for the purposes of subsection (1.2), a qualifying taxpayer is deemed to be resident in a province at any time if, at that time, 
  (a) the qualifying taxpayer has a qualifying establishment in the province; or 
  (b) in the case of a qualifying taxpayer that is resident in Canada, the qualifying taxpayer is 
  (i) a corporation incorporated or continued under the laws of the province and not continued elsewhere, 
  (ii) an entity that is a partnership, an unincorporated society, a club, an association or an organization, or a branch of such an entity, in respect of which a majority of the members having management and control of the entity or branch are resident in the province, or 
  (iii) a trust, carrying on activities as a trust in the province, that has a local office or branch in the province. 
  
  ### Selected listed financial institutions
  
  (2) If tax under subsection (1) or (1.2) would, in the absence of this subsection, become payable by a person when the person is a selected listed financial institution, that tax is not payable unless it is an amount of tax that 
  (a) is prescribed for the purposes of paragraph (a) of the description of F in subsection 225.2(2); 
  (b) is in respect of an imported taxable supply of property or a service acquired otherwise than for consumption, use or supply in the course of an endeavour (as defined in subsection 141.01(1)) of the person; or 
  (c) is a prescribed amount. 
  
  ### Application in offshore areas
  
  (3) Subsection (1) does not apply to 
  (a) an imported taxable supply of intangible personal property or a service made to a person who is resident in the Nova Scotia offshore area or the Newfoundland offshore area unless the property or service is acquired by the person for consumption, use or supply in the course of an offshore activity or the person is also resident in a participating province that is not an offshore area; or 
  (b) an imported taxable supply of tangible personal property the physical possession of which is transferred, or that is delivered or made available, to the recipient of the supply in the Nova Scotia offshore area or the Newfoundland offshore area unless the property is acquired by the recipient for consumption, use or supply in the course of an offshore activity. 
  
  ### Use in offshore areas
  
  (4) For the purposes of subsection (1), a person that acquires property or a service for consumption, use or supply in the Nova Scotia offshore area or the Newfoundland offshore area is deemed to acquire the property or service for consumption, use or supply in that area only to the extent that it is acquired for consumption, use or supply in that area in the course of an offshore activity. 
  
  ### When tax payable
  
  218.2 Tax under this Division (other than tax under section 218.01 or subsection 218.1(1.2)) that is calculated on an amount of consideration for a supply that becomes due at any time, or is paid at any time without having become due, becomes payable at that time. 
  
  ### When tax payable
  
  218.3 Tax under section 218.01 and subsection 218.1(1.2) that is determined for a specified year of a qualifying taxpayer becomes payable by the qualifying taxpayer on 
  (a) if the specified year is a taxation year of the qualifying taxpayer for the purposes of the Income Tax Act and the qualifying taxpayer is required under Division I of that Act to file a return of income for the specified year, the filing-due date for the specified year for the purposes of that Act; and  
  (b) in any other case, the day that is six months after the end of the specified year. 
  
  ### Filing of returns and payment of tax
  
  219 Where tax under this Division is payable by a person, 
  (a) if the person is a registrant, the person shall, on or before the day on or before which the person’s return under section 238 for the reporting period in which the tax became payable is required to be filed, pay the tax to the Receiver General and 
  (i) if the person is not a qualifying taxpayer, report the tax in that return, or 
  (ii) if the person is a qualifying taxpayer, file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information; and 
  (b) in any other case, the person shall, on or before the last day of the month following the calendar month in which the tax became payable, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information. 
  
  ### Definitions
  
  220 (1) The following definitions apply in this section.  
  *intangible capital* of a specified person means any of the following that is consumed or used by the specified person in the process of creating, developing or bringing into existence intangible personal property:  
  (a) all or part of a labour activity of the specified person; 
  (b) all or part of property (other than intangible personal property described in paragraph (a) of the definition 
  *intangible resource*); or  
  (c) all or part of a service. ( capital incorporel)   
  *intangible resource* of a specified person means  
  (a) all or part of intangible personal property supplied to, or created, developed or brought into existence by, the specified person that is not support capital of the specified person; 
  (b) intangible capital of the specified person; or 
  (c) any combination of the items referred to in paragraphs (a) and (b). ( ressource incorporelle)   
  *labour activity* of a specified person means anything done by an employee of the specified person in the course of, or in relation to, the office or employment of the employee. (activité de main-d’oeuvre)   
  *support capital* of a specified person means all or part of intangible personal property that is consumed or used by the specified person in the process of creating, developing or bringing into existence property (other than intangible personal property) or in supporting, assisting or furthering a labour activity of the specified person. (capital d’appui)   
  *support resource* of a specified person means  
  (a) all or part of property (other than intangible personal property) supplied to, or created, developed or brought into existence by, the specified person that is not intangible capital of the specified person; 
  (b) all or part of a service supplied to the specified person that is not intangible capital of the specified person; 
  (c) all or part of a labour activity of the specified person that is not intangible capital of the specified person; 
  (d) support capital of the specified person; or 
  (e) any combination of the items referred to in paragraphs (a) to (d). ( ressource d’appui)  
  
  ### Specified person and specified business
  
  (2) For the purposes of this section, 
  (a) a person (other than a financial institution) is a specified person throughout a taxation year of the person if the person 
  (i) carries on, at any time in the taxation year, a business through a permanent establishment of the person outside Canada, and 
  (ii) carries on, at any time in the taxation year, a business through a permanent establishment of the person in Canada; and 
  (b) a business of a person is a specified business of the person throughout a taxation year of the person if the business is carried on, at any time in the taxation year, in Canada through a permanent establishment of the person. 
  
  ### Internal use
  
  (3) For the purposes of this section, internal use of a support resource, or of an intangible resource, of a specified person occurs during a taxation year of the specified person if 
  (a) the specified person at any time in the taxation year uses outside Canada any part of the resource in relation to the carrying on of a specified business of the specified person; or 
  (b) the specified person is permitted under the Income Tax Act, or would be so permitted if that Act applied to the specified person, to allocate for the taxation year, as an amount in respect of a specified business of the specified person,  
  (i) any part of an outlay made, or expense incurred, by the specified person in respect of any part of the resource, or 
  (ii) any part of an allowance, or allocation for a reserve, in respect of any part of such an outlay or expense. 
  
  ### Dealings between permanent establishments
  
  (4) If internal use of a support resource of a specified person occurs during a taxation year of the specified person, the following rules apply: 
  (a) for the purposes of this Division, the specified person is deemed 
  (i) to have rendered, during the taxation year, a service of internally using the support resource at a permanent establishment of the specified person outside Canada in the course of carrying on a specified business of the specified person, and to be the person to which the service was rendered, 
  (ii) to be the recipient of a supply made outside Canada of the service, and 
  (iii) to be, in the case of a non-resident specified person, resident in Canada; 
  (b) for the purposes of this Division, the supply is deemed not to be a supply of a service that is in respect of 
  (i) real property situated outside Canada, or 
  (ii) tangible personal property that is situated outside Canada at the time the service is performed; 
  (c) for the purposes of this Division, the value of the consideration for the supply is deemed to be the total of all amounts, each of which is the fair market value of a part, or of the use of a part, as the case may be, of the support resource referred to in subsection (3) 
  (i) if the part is only referred to in paragraph (3)(a), at the time referred to in that paragraph, and 
  (ii) otherwise, on the last day of the taxation year; 
  (d) for the purposes of this Division, the consideration for the supply is deemed to have become due and to have been paid, on the last day of the taxation year, by the specified person; and 
  (e) for the purposes of section 217 and of determining an input tax credit of the specified person under this Part, the specified person is deemed to have acquired the service for the same purpose as that for which the part of the support resource referred to in subsection (3) was acquired, consumed or used by the specified person. 
  
  ### Dealings between permanent establishments
  
  (5) If internal use of an intangible resource of a specified person occurs during a taxation year of the specified person, the following rules apply: 
  (a) for the purposes of this Division, the specified person is deemed 
  (i) to have made available, during the taxation year, at a permanent establishment of the specified person outside Canada intangible personal property in the course of carrying on a specified business of the specified person and to be the person to which the property was made available, 
  (ii) to be the recipient of a supply made outside Canada of the property, and 
  (iii) to be, in the case of a non-resident specified person, resident in Canada; 
  (b) for the purposes of this Division, the supply is deemed not to be a supply of property that relates to real property situated outside Canada, to a service to be performed wholly outside Canada or to tangible personal property situated outside Canada; 
  (c) for the purposes of this Division, the value of the consideration for the supply is deemed to be the total of all amounts, each of which is the fair market value of a part, or of the use of a part, as the case may be, of the intangible resource referred to in subsection (3) 
  (i) if the part is only referred to in paragraph (3)(a), at the time referred to in that paragraph, and 
  (ii) otherwise, on the last day of the taxation year; 
  (d) for the purposes of this Division, the consideration for the supply is deemed to have become due and to have been paid, on the last day of the taxation year, by the specified person; and 
  (e) for the purposes section 217 and of determining an input tax credit of the specified person under this Part, the specified person is deemed to have acquired the property for the same purpose as that for which the part of the intangible resource referred to in subsection (3) was acquired, consumed or used by the specified person. 
  
  # DIVISION IV.1 
  
  ## Tax on Property and Services Brought Into a Participating Province 
  
  ### Definitions
  
  220.01 The following definitions apply in this Division.  
  *provincial authority* means any department or agency of a province that is empowered under the laws of that province to collect, at the time when a specified motor vehicle is registered in the province, any specified provincial tax imposed in respect of the specified motor vehicle. (autorité provinciale)   
  *specified provincial tax* means  
  (a) in the case of a vehicle registered in the province of Nova Scotia, the tax imposed under Part IIA of the Revenue Act, S.N.S. 1995-96, c. 17, as amended from time to time;  
  (b) in the case of a vehicle registered in the province of New Brunswick, the tax imposed under Part V of the Harmonized Sales Tax Act, S.N.B. 1997, c. H-1.01, as amended from time to time;  
  (c) in the case of a vehicle registered in the province of Newfoundland and Labrador, the tax imposed under the Retail Sales Tax Act, R.S.N.L. 1990, c. R-15, as amended from time to time; and  
  (d) in the case of a vehicle registered in any other participating province, a prescribed tax. ( taxe provinciale déterminée)   
  *specified value*, in respect of a specified motor vehicle that a person is required to register under the laws of a participating province relating to the registration of motor vehicles, means the value that would be attributed to the specified motor vehicle by the provincial authority for that province for the purpose of calculating the specified provincial tax payable if, at the time of registration, that tax were payable in respect of the specified motor vehicle. (valeur déterminée)   
  *tangible personal property* includes a mobile home that is not affixed to land and a floating home. (bien meuble corporel)  
  
  ### Carriers
  
  220.02 Where a particular person brings property into a province on behalf of another person, for the purposes of this Division, the other person and not the particular person is deemed to have brought the property into the province. 
  
  ### In transit
  
  220.03 Where at any time a person brings tangible personal property into a province in the course of transporting property from a place outside the province to another place outside the province, and the property is not stored in the province for purposes that are not incidental to the transportation, the person is deemed for the purposes of this Division not to have brought the property into the province at that time. 
  
  ### Selected listed financial institutions
  
  220.04 If tax under this Division would, in the absence of this section, become payable by a person when the person is a selected listed financial institution, that tax is not payable unless it is a prescribed amount of tax. 
  
  # SUBDIVISION A 
  
  ## Tax on Tangible Personal Property 
  
  ### Tax in participating province
  
  220.05 (1) Subject to this Part, if at a particular time a person brings tangible personal property into a participating province from another province, the person shall pay tax to Her Majesty in right of Canada equal to the amount determined in prescribed manner. 
  
  ### When tax payable
  
  (2) Tax under subsection (1) on property brought into a participating province by a person becomes payable 
  (a) in the case of a specified motor vehicle that the person is required to register under the laws of the province relating to the registration of motor vehicles, on the earlier of the day the person so registers the vehicle and the day on or before which the person is required to register the vehicle; and 
  (b) in any other case, on the day the property is brought into the province. 
  
  ### Non-taxable property
  
  (3) No tax is payable under subsection (1) 
  (a) in respect of property that is included in Part I of Schedule X and is not prescribed property; or 
  (b) in prescribed circumstances. 
  
  ### Pension entities
  
  (3.1) No tax is payable under subsection (1) in respect of property if a person that is a pension entity of a pension plan is the recipient of a particular supply of the property made by a participating employer of the pension plan and 
  (a) the amount determined for B in the formula in paragraph 172.1(5)(c) in respect of a supply of the same property that is deemed to have been made by the participating employer under paragraph 172.1(5)(a) is greater than zero; 
  (b) the amount determined for the pension plan under the description of B in paragraph 172.1(5.1)(c) in respect of a supply of the same property that is deemed to have been made by the participating employer under paragraph 172.1(5.1)(a) is greater than zero; 
  (c) the amount determined for B in paragraph 172.1(6)(c) in respect of every supply deemed to have been made under paragraph 172.1(6)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero; or  
  (d) the amount determined for the pension plan under the description of B in paragraph 172.1(6.1)(c) in respect of every supply deemed to have been made under paragraph 172.1(6.1)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero.  
  
  ### Application in offshore areas
  
  (4) Subsection (1) does not apply to property brought into the Nova Scotia offshore area or the Newfoundland offshore area by a person unless the property is brought into the area for consumption, use or supply in the course of an offshore activity. 
  
  ### Supply by unregistered non-resident
  
  220.06 (1) Subject to this Part, where a person is the recipient of a taxable supply (other than a zero-rated or prescribed supply) of tangible personal property that is, at a particular time, delivered or made available to the person in a participating province, or sent by mail or courier to an address in the participating province, by a non-resident supplier who is not registered under Subdivision D of Division V, the person shall pay tax to Her Majesty in right of Canada equal to the amount determined by the formula is the tax rate for the participating province; and is 
  (a) where the supply of the property was made to the person by way of sale by a non-resident person with whom the person dealt at arm’s length, the lesser of the value of the consideration paid or payable in respect of the supply and the fair market value of the property at the particular time, 
  (b) notwithstanding paragraph (a), in the case of prescribed property supplied in prescribed circumstances, the value determined in the prescribed manner, and 
  (c) in any other case, the fair market value of the property at the particular time. 
  
  ### When tax payable
  
  (2) Tax under subsection (1) in respect of property supplied to a person in a participating province becomes payable on the day the property is delivered or made available to the person in the province. 
  
  ### Non-taxable property
  
  (3) No tax is payable under subsection (1) 
  (a) in respect of property that is a specified motor vehicle that is required to be registered under the laws of a participating province relating to the registration of motor vehicles, or that is included in Part I of Schedule X and is not prescribed property; or 
  (b) in prescribed circumstances. 
  
  ### Application in offshore areas
  
  (4) Subsection (1) does not apply to a supply of property that is delivered or made available to the recipient in the Nova Scotia offshore area or the Newfoundland offshore area, or that is sent to the recipient at an address in the Nova Scotia offshore area or the Newfoundland offshore area, unless the property is acquired by the recipient for consumption, use or supply in the course of an offshore activity. 
  
  ### Imported commercial goods
  
  220.07 (1) Subject to this Part, every person who brings into a participating province from a place outside Canada 
  (a) a specified motor vehicle, or 
  (b) goods that are accounted for as commercial goods (within the meaning assigned by subsection 212.1(1)) under section 32 of the Customs Act  and who is liable under that Act to pay duties on the vehicle or goods, or would be so liable if they were subject to duty, shall pay, in addition to the tax imposed under section 212, tax calculated at the tax rate for that participating province on the value of the vehicle or goods. 
  
  ### Exception
  
  (2) Tax under subsection (1) does not apply to 
  (a) goods, other than a specified motor vehicle, brought into a participating province from a place outside Canada by a registrant (other than a registrant whose net tax is determined under section 225.1 or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations) for consumption, use or supply exclusively in the course of commercial activities of the registrant;  
  (b) a mobile home or a floating home that has been used or occupied in Canada as a place of residence for individuals; or 
  (c) goods included in Schedule VII. 
  
  ### Value of goods
  
  (3) For the purposes of this section, the value of goods brought into a province is equal to 
  (a) in the case of a specified motor vehicle that a person is required to register under the laws of the province relating to the registration of motor vehicles, the specified value; 
  (b) in the case of prescribed property brought into a province in prescribed circumstances, the value determined in prescribed manner; and 
  (c) in any other case, the value of the goods determined in accordance with section 215. 
  
  ### When tax payable
  
  (4) Tax under subsection (1) on goods brought into a participating province by a person becomes payable by that person 
  (a) in the case of a specified motor vehicle that the person is required to register under the laws of the province relating to the registration of motor vehicles, on the earlier of the day the person so registers the vehicle and the day on or before which the person is required to register the vehicle; and 
  (b) in any other case, on the day on which the goods are brought into the province. 
  
  ### Use in offshore areas
  
  (5) Subsection (1) does not apply to goods brought into the Nova Scotia offshore area or the Newfoundland offshore area by a person unless the goods are brought into the area for consumption, use or supply in the course of an offshore activity. 
  
  # SUBDIVISION B 
  
  ## Tax on Intangible Property and Services 
  
  ### Tax in participating province
  
  220.08 (1) Subject to this Part, every person that is resident in a participating province and is the recipient of a taxable supply made in a particular province of intangible personal property or a service that is acquired by the person for consumption, use or supply in whole or in part in any participating province that is not the particular province must pay to Her Majesty in right of Canada, each time an amount of consideration for the supply becomes due or is paid without having become due, tax equal to the amount determined in prescribed manner. 
  
  ### When tax payable
  
  (2) Tax under subsection (1) that is calculated on an amount of consideration for a supply that becomes due at any time, or is paid at any time without having become due, becomes payable at that time. 
  
  ### Non-taxable supplies
  
  (3) No tax is payable under subsection (1) 
  (a) in respect of a supply of intangible personal property or a service that is included in Part II of Schedule X and is not a prescribed supply; or 
  (b) in prescribed circumstances. 
  
  ### Pension entities
  
  (3.1) No tax is payable under subsection (1) in respect of a particular supply of property or a service made by a participating employer of a pension plan to a person that is a pension entity of the pension plan if 
  (a) the amount determined for B in the formula in paragraph 172.1(5)(c) in respect of a supply of the same property or service that is deemed to have been made by the participating employer under paragraph 172.1(5)(a) is greater than zero; 
  (b) the amount determined for the pension plan under the description of B in paragraph 172.1(5.1)(c) in respect of a supply of the same property or service that is deemed to have been made by the participating employer under paragraph 172.1(5.1)(a) is greater than zero; 
  (c) the amount determined for B in paragraph 172.1(6)(c) in respect of every supply deemed to have been made under paragraph 172.1(6)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero; or  
  (d) the amount determined for the pension plan under the description of B in paragraph 172.1(6.1)(c) in respect of every supply deemed to have been made under paragraph 172.1(6.1)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero.  
  
  ### Application in offshore areas
  
  (4) Subsection (1) does not apply to a supply of property or a service made to a person who is resident in the Nova Scotia offshore area or the Newfoundland offshore area unless the property or service is acquired for consumption, use or supply in the course of an offshore activity or the person is also resident in a participating province that is not an offshore area. 
  
  ### Use in offshore areas
  
  (5) For the purposes of subsection (1), a person that acquires property or a service for consumption, use or supply in the Nova Scotia offshore area or the Newfoundland offshore area is deemed to acquire the property or service for consumption, use or supply in that area only to the extent that it is acquired for consumption, use or supply in that area in the course of an offshore activity. 
  
  # SUBDIVISION C 
  
  ## Returns and Payment of Tax 
  
  ### Returns and payment
  
  220.09 (1) Where tax under this Division becomes payable by a person, 
  (a) where the person is a registrant, the person shall, on or before the day on or before which the person’s return under section 238 for the reporting period in which the tax became payable is required to be filed, pay the tax to the Receiver General and report the tax in that return; and 
  (b) in any other case, the person shall, on or before the last day of the month following the calendar month in which the tax became payable, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information. 
  
  ### Exception
  
  (2) Despite subsection (1), if the tax under section 220.05, 220.06 or 220.07 is payable to Her Majesty in right of Canada by a person in respect of a specified motor vehicle that the person is required to register under the laws of a participating province relating to the registration of motor vehicles, the person shall pay the tax to the provincial authority in its capacity as agent of Her Majesty in right of Canada at the earlier of the time at which the person registers the vehicle and the time at or before which the person is required to register it, and 
  (a) if the person is a registrant, the person is not required to report the tax in a return; and 
  (b) if the person is not a registrant, the person is not required to file a return in respect of the tax. 
  
  ### Deduction for prescribed amount
  
  (3) Where tax under this Division becomes payable by a person and all or any portion of that tax is an amount that is prescribed for the purpose of subsection 234(3), that amount shall be deducted from the tax payable in determining the amount required under subsection (1) to be paid. 
  
  ### No return required
  
  (4) Where the amount that a person is required to pay to the Receiver General under subsection (1) is nil, the person is not required to file a return under this Division. 
  
  # DIVISION V 
  
  ## Collection and Remittance of Division II Tax 
  
  # SUBDIVISION A 
  
  ## Collection 
  
  ### Collection of tax
  
  221 (1) Every person who makes a taxable supply shall, as agent of Her Majesty in right of Canada, collect the tax under Division II payable by the recipient in respect of the supply. 
  
  ### Exception
  
  (2) A supplier (other than a prescribed supplier) who makes a taxable supply of real property by way of sale is not required to collect tax under Division II payable by the recipient in respect of the supply where 
  (a) the supplier is a non-resident person or is resident in Canada by reason only of subsection 132(2); 
  (b) the recipient is registered under Subdivision D and, in the case of a recipient who is an individual, the property is neither a residential complex nor supplied as a cemetery plot or place of burial, entombment or deposit of human remains or ashes; 
  (b.1) the supplier and the recipient have made an election under section 2 of Part I of Schedule V in respect of the supply; or 
  (c) the recipient is a prescribed recipient. 
  
  ### Exception — emission allowance
  
  (2.1) A supplier (other than a prescribed supplier) that makes a taxable supply of an emission allowance is not required to collect tax under Division II payable by the recipient in respect of the supply. 
  
  ### Idem
  
  (3) Where a carrier who makes a particular taxable supply of a service of transporting tangible personal property 
  (a) is provided with a declaration referred to in section 7 of Part VII of Schedule VI by the shipper, and 
  (b) at or before the time the tax in respect of the particular supply becomes payable the carrier did not know and could not reasonably be expected to know that 
  (i) the property was not being shipped for export, 
  (ii) the transportation by the carrier was not part of a continuous outbound freight movement in respect of the property, and 
  (iii) there was or was to be any diversion of the property to a final destination in Canada, the carrier is not required to collect tax in respect of the particular supply or any supply that is incidental to the particular supply. 
  (3.1)  [Repealed, 2001, c. 15, s. 9]  
  
  ### Definitions
  
  (4) In subsection (3), 
  *continuous outbound freight movement* and 
  *shipper* have the same meanings as in Part VII of Schedule VI.  
  
  ### Meaning of 
  *inventory* 
  
  221.1 (1) In this section, 
  *inventory* of a person means tangible personal property of the person acquired in Canada or imported by the person for supply by way of sale in the ordinary course of a business carried on by the person in Canada.  
  
  ### Export certificate
  
  (2) The Minister may, on the application of a person who is registered under Subdivision D, authorize the person to use, beginning on a particular day in a fiscal year of the person and subject to such conditions as the Minister may from time to time specify, a certificate (in this section referred to as an “export certificate”) for the purpose of section 1.1 of Part V of Schedule VI, if it can reasonably be expected 
  (a) that at least 90% of the total of all consideration for supplies to the person of items of inventory acquired in Canada by the person in the 12-month period commencing immediately after the particular day will be attributable to supplies that would be included in section 1 of that Part if it were read without reference to paragraph (e) of that section; and 
  (b) that the total of all consideration, included in determining the income of a business of the person for the year, for supplies made outside Canada by the person of items of inventory of the person that are not consumed, used, processed, transformed or altered after having been acquired in Canada or imported by the person and before being so supplied by the person will equal or exceed 90% of the total of all consideration, included in determining that income, for supplies made by the person of items of inventory of the person. 
  
  ### Application
  
  (3) An application for authority to use an export certificate shall be made in prescribed form containing prescribed information and be filed with the Minister in prescribed manner. 
  
  ### Notice of authorization
  
  (4) If the Minister authorizes a registrant to use an export certificate, the Minister shall notify the registrant in writing of the authorization, its effective date and its expiry date and the number assigned by the Minister that identifies the registrant or the authorization and that must be disclosed by the registrant when providing the certificate for the purpose of section 1.1 of Part V of Schedule VI. 
  
  ### Revocation
  
  (5) The Minister may revoke, as of a particular day, an authorization granted under subsection (2) to a registrant where 
  (a) the registrant fails to comply with any condition attached to the authorization or any provision of this Part, or 
  (b) it can reasonably be expected that the requirements of paragraphs (2)(a) and (b) would not be met if the period referred to in paragraph (2)(a) were the twelve month period commencing on the particular day, and, where the Minister revokes the authorization, the Minister shall notify the registrant in writing of the revocation and the effective date of the revocation. 
  
  ### Deemed revocation
  
  (6) An authorization granted to a registrant at any time under subsection (2) shall be deemed to have been revoked, effective after the last day of a fiscal year of the registrant ending after that time, where 
  (a) the fraction determined by the formula is the total of all consideration paid or payable by the registrant for items of inventory that were acquired in Canada by the registrant in the year in the course of a business of the registrant and in respect of which the registrant provided to the suppliers thereof an export certificate, and is the total of all consideration paid or payable by the registrant for items of inventory acquired in Canada by the registrant in the year in the course of that business, exceeds 
  (b) the fraction determined by the formula is the total of all consideration, included in determining the income from that business for the year, for supplies made outside Canada by the registrant of items of inventory of the registrant that were not consumed, used, processed, transformed or altered after having been acquired in Canada or imported by the registrant and before being so supplied by the registrant, and is the total of all consideration, included in determining that income, for supplies made by the registrant of items of inventory of the registrant. 
  
  ### Cessation
  
  (7) An authorization granted under subsection (2) to a registrant ceases to have effect on the earlier of 
  (a) the day on which a revocation of the authorization becomes effective, and 
  (b) the day that is three years after the day on which the authorization, or its renewal, became effective. 
  
  ### Application after revocation
  
  (8) Where an authorization granted to a registrant under subsection (2) is revoked, effective on a particular day, the Minister shall not grant to the registrant another authorization under that subsection that becomes effective before 
  (a) where the authorization was revoked in circumstances described in paragraph (5)(a), the day that is two years after the particular day; and 
  (b) in any other case, the first day of the second fiscal year of the registrant commencing after the particular day. 
  
  ### Trust for amounts collected
  
  222 (1) Subject to subsection (1.1), every person who collects an amount as or on account of tax under Division II is deemed, for all purposes and despite any security interest in the amount, to hold the amount in trust for Her Majesty in right of Canada, separate and apart from the property of the person and from property held by any secured creditor of the person that, but for a security interest, would be property of the person, until the amount is remitted to the Receiver General or withdrawn under subsection (2). 
  
  ### Amounts collected before bankruptcy
  
  (1.1) Subsection (1) does not apply, at or after the time a person becomes a bankrupt (within the meaning of the Bankruptcy and Insolvency Act), to any amounts that, before that time, were collected or became collectible by the person as or on account of tax under Division II.  
  
  ### Withdrawal from trust
  
  (2) A person who holds tax or amounts in trust by reason of subsection (1) may withdraw from the aggregate of the moneys so held in trust 
  (a) the amount of any input tax credit claimed by the person in a return under this Division filed by the person in respect of a reporting period of the person, and 
  (b) any amount that may be deducted by the person in determining the net tax of the person for a reporting period of the person, as and when the return under this Division for the reporting period in which the input tax credit is claimed or the deduction is made is filed with the Minister. 
  
  ### Extension of trust
  
  (3) Despite any other provision of this Act (except subsection (4)), any other enactment of Canada (except the Bankruptcy and Insolvency Act), any enactment of a province or any other law, if at any time an amount deemed by subsection (1) to be held by a person in trust for Her Majesty is not remitted to the Receiver General or withdrawn in the manner and at the time provided under this Part, property of the person and property held by any secured creditor of the person that, but for a security interest, would be property of the person, equal in value to the amount so deemed to be held in trust, is deemed  
  (a) to be held, from the time the amount was collected by the person, in trust for Her Majesty, separate and apart from the property of the person, whether or not the property is subject to a security interest, and 
  (b) to form no part of the estate or property of the person from the time the amount was collected, whether or not the property has in fact been kept separate and apart from the estate or property of the person and whether or not the property is subject to a security interest and is property beneficially owned by Her Majesty in right of Canada despite any security interest in the property or in the proceeds thereof and the proceeds of the property shall be paid to the Receiver General in priority to all security interests. 
  
  ### Meaning of security interest
  
  (4) For the purposes of subsections (1) and (3), a security interest does not include a prescribed security interest. 
  
  ### Sale of account receivable
  
  222.1 If a person makes a taxable supply that gives rise to an account receivable and at any time the person supplies by way of sale or assignment the debt, for the purposes of sections 222, 225, 225.1 and 227, 
  (a) the person is deemed to have collected, at that time, the amount, if any, of the tax in respect of the taxable supply that was not collected by the person before that time; and 
  (b) any amount collected by any person after that time on account of the tax payable in respect of the taxable supply is deemed not to be an amount collected as or on account of tax. 
  
  ### Disclosure of tax
  
  223 (1) If a registrant makes a taxable supply, other than a zero-rated supply, the registrant shall indicate to the recipient, either in prescribed manner or in the invoice or receipt issued to, or in an agreement in writing entered into with, the recipient in respect of the supply, 
  (a) the consideration paid or payable by the recipient for the supply and the tax payable in respect of the supply in a manner that clearly indicates the amount of the tax; or 
  (b) that the amount paid or payable by the recipient for the supply includes the tax payable in respect of the supply. 
  
  ### Indication of total
  
  (1.1) If a registrant makes a taxable supply, other than a zero-rated supply, and, in an invoice or a receipt in respect of the supply issued to the recipient or in an agreement in writing in respect of the supply, the registrant indicates the tax payable or the rate or rates at which tax is payable in respect of the supply, the registrant shall indicate in that invoice, receipt or agreement 
  (a) the total tax payable in respect of the supply in a manner that clearly indicates the amount of that total; or 
  (b) the total of the rates at which tax is payable in respect of the supply. 
  
  ### Exception
  
  (1.2) If a registrant makes a taxable supply in a participating province and is entitled under subsection 234(3) to deduct an amount in respect of the supply in determining the net tax of the registrant, the registrant is not required to include under subsection (1) or (1.1) tax under subsection 165(2), or the rate of that tax, in the total tax payable or the total of the rates of tax payable in respect of the supply. 
  
  ### Exception
  
  (1.3) Subsection (1) does not apply to a registrant when the registrant is not required to collect the tax payable in respect of the taxable supply made by the registrant. 
  
  ### Particulars
  
  (2) A person who makes a taxable supply to another person shall, on the request of the other person, forthwith furnish to the other person in writing such particulars of the supply as may be required for the purposes of this Part to substantiate a claim by the other person for an input tax credit or rebate in respect of the supply. 
  
  ### Right of supplier to sue for tax remitted
  
  224 Where a supplier has made a taxable supply to a recipient, is required under this Part to collect tax from the recipient in respect of the supply, has complied with subsection 223(1) in respect of the supply and has accounted for or remitted the tax payable by the recipient in respect of the supply to the Receiver General but has not collected the tax from the recipient, the supplier may bring an action in a court of competent jurisdiction to recover the tax from the recipient as though it were a debt due by the recipient to the supplier. 
  
  ### No action for collection of tax
  
  224.1 No person, other than Her Majesty in right of Canada, may bring an action or proceeding against any person for acting in compliance or intended compliance with this Part by collecting an amount as or on account of tax. 
  
  # SUBDIVISION B 
  
  ## Remittance of Tax 
  
  ### Net tax
  
  225 (1) Subject to this Subdivision, the net tax for a particular reporting period of a person is the positive or negative amount determined by the formula is the total of 
  (a) all amounts that became collectible and all other amounts collected by the person in the particular reporting period as or on account of tax under Division II, and 
  (b) all amounts that are required under this Part to be added in determining the net tax of the person for the particular reporting period; and is the total of 
  (a) all amounts each of which is an input tax credit for the particular reporting period or a preceding reporting period of the person claimed by the person in the return under this Division filed by the person for the particular reporting period, and 
  (b) all amounts each of which is an amount that may be deducted by the person under this Part in determining the net tax of the person for the particular reporting period and that is claimed by the person in the return under this Division filed by the person for the particular reporting period. 
  
  ### Restriction
  
  (2) An amount shall not be included in the total for A in the formula set out in subsection (1) for a reporting period of a person to the extent that that amount was included in that total for a preceding reporting period of the person. 
  
  ### Restriction
  
  (3) An amount shall not be included in the total for B in the formula set out in subsection (1) for a particular reporting period of a person to the extent that the amount was claimed or included as an input tax credit or deduction in determining the net tax for a preceding reporting period of the person unless 
  (a) the person was not entitled to claim the amount in determining the net tax for the preceding period only because the person did not satisfy the requirements of subsection 169(4) in respect of the amount before the return for that preceding period was filed; and 
  (b) where the person is claiming the amount in a return for the particular reporting period and the Minister has not disallowed the amount as an input tax credit in assessing the net tax of the person for that preceding reporting period, 
  (i) the person reports in writing to the Minister, at or before the time the return for the particular reporting period is filed, that the person made an error in claiming that amount in determining the net tax of the person for that preceding period, and 
  (ii) if the person does not report the error to the Minister at least three months before the time limited by subsection 298(1) for assessing the net tax of the person for that preceding period expires, the person pays, at or before the time the return for the particular reporting period is filed, the amount and any applicable interest to the Receiver General. 
  
  ### Restriction
  
  (3.1) An amount shall not be included in the total for B in the formula set out in subsection (1) for a reporting period of a person to the extent that, before the end of the period, the amount 
  (a) is included in an adjustment, refund or credit for which a credit note referred to in subsection 232(3) has been received by the person or a debit note referred to in that subsection has been issued by the person; or 
  (b) was otherwise rebated, refunded or remitted to the person, or was otherwise recovered by the person, under this or any other Act of Parliament. 
  
  ### Limitation
  
  (4) An input tax credit of a person for a particular reporting period of the person shall not be claimed by the person unless it is claimed in a return under this Division filed by the person on or before the day that is 
  (a) where the person is a specified person during the particular reporting period, 
  (i) if the input tax credit is in respect of property or a service supplied to the person by a supplier who did not, before the end of the particular reporting period, charge the tax in respect of the supply that became payable during the particular reporting period and the person pays that tax after the end of the particular reporting period and before the input tax credit is claimed, the earlier of 
  (A) the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within two years after the end of the person’s fiscal year in which the supplier charges that tax to the person, and 
  (B) the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within four years after the end of the particular reporting period, 
  (ii) if the input tax credit was claimed in a return under this Division filed, on or before the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within two years after the end of the person’s fiscal year that includes the particular reporting period, by another person who was not entitled to claim it and the person has paid the tax payable in respect of the acquisition or importation of the property or service, the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within four years after the end of the particular reporting period, and 
  (iii) in any other case, the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within two years after the end of the person’s fiscal year that includes the particular reporting period; 
  (b) where the person is not a specified person during the particular reporting period, the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within four years after the end of the particular reporting period; or 
  (c) where 
  (i) the input tax credit is in respect of property or a service supplied to the person by a supplier who did not, before the end of the last reporting period of the person that ends within four years after the end of the particular reporting period, charge the tax in respect of the supply that became payable during the particular reporting period and the supplier discloses in writing to the person that the Minister has assessed the supplier for that tax, and 
  (ii) the person pays that tax after the end of that last reporting period and before the input tax credit is claimed by the person, the day on or before which the return under this Division is required to be filed for the reporting period of the person in which the person pays that tax. 
  
  ### Meaning of 
  *specified person* 
  
  (4.1) For the purposes of subsection (4), a person is a 
  *specified person* during a reporting period of the person if  
  (a) the person is a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) during the reporting period, or 
  (b) the person’s threshold amounts, determined in accordance with subsection 249(1), exceed $6 million for both the particular fiscal year of the person that includes the reporting period and the person’s previous fiscal year, unless, in the case of a person who is not a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) during the reporting period, the person is a charity during the reporting period or all or substantially all of the supplies made by the person during either of the person’s two fiscal years immediately preceding the particular fiscal year (other than supplies of financial services) are taxable supplies. 
  
  ### Idem
  
  (5) Where a registrant makes an exempt supply by way of sale of a residential complex, the registrant shall not claim an input tax credit in respect of 
  (a) the last acquisition by the registrant of the complex, or 
  (b) an improvement to the complex acquired, imported or brought into a participating province by the registrant after the complex was last acquired by the registrant, in a return filed on or after the day the registrant transfers ownership or possession of the complex to the recipient of the supply. 
  
  ### Idem
  
  (6) Where a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate of a registrant who is a bankrupt,  
  (a) the total of all input tax credits claimed, and all amounts deducted, in a return filed after the appointment for a reporting period of the registrant ending before the appointment shall not exceed the total of 
  (i) the amount that would be the net tax for the period if no input tax credits were claimed, and no amounts were deducted, in determining the net tax for that period, and 
  (ii) all amounts required under this Part to be remitted by the registrant in respect of reporting periods ending before that period and all amounts payable under this Part by the registrant as penalty, interest, an instalment of tax or a repayment in respect of those reporting periods, and 
  (b) an input tax credit, or an amount that may be deducted in determining net tax, for a reporting period of the registrant ending before the appointment shall not be claimed or deducted in a return for a reporting period of the registrant ending after the appointment, unless, on or before the day that return is filed, all returns required under this Part to be filed for, or in respect of acquisitions of real property made in, reporting periods of the registrant ending before the appointment have been filed and all amounts required under this Part to be remitted by the registrant in respect of those reporting periods and all amounts payable under this Part by the registrant as penalty, interest, an instalment of tax or a repayment in respect of those reporting periods have been remitted or paid, as the case may be. 
  
  ### Meaning of specified supply 
  
  225.1 (1) In this section, 
  *specified supply* means a taxable supply other than  
  (a) a supply by way of sale of real property or capital property; 
  (b) a supply deemed under section 175.1 or 181.1 or subsection 183(5) or (6) to have been made; 
  (c) a supply to which subsection 172(2) or 173(1) applies; and 
  (d) a supply deemed under subsection 177(1) or (1.2) to have been made by an agent. 
  
  ### Net tax
  
  (2) Subject to subsection (7), the net tax for a particular reporting period of a charity that is a registrant is equal to the positive or negative amount determined by the formula is the total of 
  (a) 60% of the total of all amounts, each of which is an amount collectible by the charity that, in the particular reporting period, became collectible or was collected before having become collectible, by the charity as or on account of tax in respect of specified supplies made by the charity, 
  (b) the total of all amounts that became collectible and all other amounts collected by the charity in the particular reporting period as or on account of tax in respect of 
  (i) supplies by way of sale of capital property or real property made by the charity, 
  (ii) supplies by the charity to which subsection 172(2) or 173(1) applies, and 
  (iii) supplies made on behalf of another person for whom the charity acts as agent and 
  (A) that are deemed under subsection 177(1) or (1.2) to have been made by the charity and not by the other person, or 
  (B) in respect of which the charity has made an election under subsection 177(1.1), 
  (b.1) the total of all amounts each of which is an amount not included in paragraph (b) that was collected from a person by the charity in the particular reporting period as or on account of tax in circumstances in which the amount was not payable by the person, whether the amount was paid by the person by mistake or otherwise, 
  (c) the total of all amounts each of which is an amount in respect of supplies of real property or capital property made by way of sale by or to the charity that is required under subsection 231(3) or 232(3) to be added in determining the net tax for the particular reporting period, and 
  (d) the amount required under subsection 238.1(4) to be added in determining the net tax for the particular reporting period; and is the total of 
  (a) all input tax credits of the charity for the particular reporting period and preceding reporting periods in respect of 
  (i) real property acquired by the charity by way of purchase, 
  (ii) personal property acquired, imported or brought into a participating province by the charity for use as capital property of the charity, 
  (iii) improvements to real property or capital property of the charity, 
  (iv) tangible personal property (other than property referred to in subparagraph (ii) or (iii)) that is acquired, imported or brought into a participating province by the charity for the purpose of supply by way of sale and is 
  (A) supplied by a person acting as agent for the charity in circumstances in which subsection 177(1.1) applies, or 
  (B) deemed by subsection 177(1.2) to have been supplied by an auctioneer acting as agent for the charity, and 
  (v) tangible personal property (other than property referred to in subparagraph (ii) or (iii)) deemed under paragraph 180(e) to have been acquired by the charity and under subsection 177(1) or (1.2) to have been supplied by the charity that are claimed in the return under this Division filed for the particular reporting period, 
  (b) 60% of the total of all amounts in respect of specified supplies that may be deducted under subsection 232(3) in respect of adjustments, refunds or credits given by the charity under subsection 232(2), or that may be deducted under subsection 234(2) or (3), in determining the net tax for the particular reporting period and that are claimed in the return under this Division filed for that reporting period, 
  (b.1) 60% of the total of all amounts that may be deducted by the charity under paragraph 232.01(5)(a) or 232.02(4)(a) in determining the net tax for the particular reporting period and that are claimed in the return under this Division filed for that reporting period, 
  (b.2) the total of all amounts that may, in determining the net tax for the particular reporting period, be deducted under subsection 232(3) in respect of adjustments, refunds or credits given by the charity under subsection 232(1) in respect of specified supplies and that are claimed in the return under this Division filed for that reporting period, 
  (c) the total of all amounts in respect of supplies of real property or capital property made by way of sale by the charity that may be deducted by the charity under subsection 231(1) or 232(3) or section 234 in determining the net tax for the particular reporting period and are claimed in the return under this Division filed for that reporting period, and 
  (d) the total of all amounts each of which is an input tax credit (other than an input tax credit referred to in paragraph (a)) of the charity, for a preceding reporting period in respect of which this subsection did not apply for the purpose of determining the net tax of the charity, that the charity was entitled to include in determining its net tax for that preceding reporting period and that is claimed in the return under this Division filed for the particular reporting period. 
  
  ### Restriction
  
  (3) An amount shall not be included in determining a total under the description of A in subsection (2) for a reporting period of a charity to the extent that that amount was included in that total for a preceding reporting period of the charity. 
  
  ### Restriction
  
  (4) An amount shall not be included in the total for B in the formula set out in subsection (2) for a particular reporting period of a charity to the extent that the amount was claimed or included as an input tax credit or deduction in determining the net tax for a preceding reporting period of the charity unless 
  (a) the charity was not entitled to claim the amount in determining the net tax for that preceding period only because the charity did not satisfy the requirements of subsection 169(4) in respect of the amount before the return for that preceding period was filed; and 
  (b) where the charity is claiming the amount in a return for the particular reporting period and the Minister has not disallowed the amount as an input tax credit in assessing the net tax of the charity for that preceding reporting period, 
  (i) the charity reports in writing to the Minister, at or before the time the return for the particular reporting period is filed, that the charity made an error in claiming that amount in determining the net tax of the charity for that preceding period, and 
  (ii) if the charity does not report the error to the Minister at least three months before the time limited by subsection 298(1) for assessing the net tax of the charity for that preceding period expires, the charity pays, at or before the time the return for the particular reporting period is filed, the amount and any applicable interest to the Receiver General. 
  
  ### Restriction
  
  (4.1) An amount is not to be included in the total for B in the formula set out in subsection (2) for a reporting period of a charity to the extent that, before the end of the period, the amount 
  (a) is included in an adjustment, refund or credit for which a credit note referred to in subsection 232(3) has been received by the charity or a debit note referred to in that subsection has been issued by the charity; or 
  (b) was otherwise rebated, refunded or remitted to the charity, or was otherwise recovered by the charity, under this or any other Act of Parliament. 
  
  ### Application
  
  (5) Sections 231 to 236 do not apply for the purpose of determining the net tax of a charity in accordance with subsection (2) except as otherwise provided in this section. 
  
  ### Election
  
  (6) Where a charity that makes supplies outside Canada, or zero-rated supplies, in the ordinary course of a business or all or substantially all of whose supplies are taxable supplies elects not to determine its net tax in accordance with subsection (2), that subsection does not apply in respect of any reporting period of the charity during which the election is in effect. 
  
  ### Form and content of election
  
  (7) An election under subsection (6) by a charity shall 
  (a) be filed in prescribed manner with the Minister in prescribed form containing prescribed information; 
  (b) set out the day the election is to become effective, which day shall be the first day of a reporting period of the charity; 
  (c) remain in effect until a revocation of the election becomes effective; and 
  (d) be filed 
  (i) where the first reporting period of the charity in which the election is in effect is a fiscal year of the charity, on or before the first day of the second fiscal quarter of that year or such later day as the Minister may determine on application of the charity, and 
  (ii) in any other case, on or before the day on or before which the return of the charity is required to be filed under this Division for the first reporting period of the charity in which the election is in effect or on such later day as the Minister may determine on application of the charity. 
  
  ### Revocation
  
  (8) An election under subsection (6) by a charity may be revoked, effective on the first day of a reporting period of the charity, provided that that day is not earlier than one year after the election became effective and a notice of revocation of the election in prescribed form containing prescribed information is filed in prescribed manner with the Minister on or before the day on or before which the return under this Division is required to be filed for the last reporting period of the charity in which the election is in effect. 
  
  ### Restriction on input tax credits
  
  (9) Where an election under subsection (6) by a charity becomes effective on a day, an amount 
  (a) that is an input tax credit of the charity, or 
  (b) that is in respect of a specified supply and may be deducted by the charity under subsection 232(3) or 234(2) in determining the net tax of the charity, for a reporting period ending before that day and that is not claimed in a return for any reporting period ending before that day shall not be claimed by the charity in a return for a reporting period ending after that day except to the extent that the charity was entitled to include the amount in the total determined for B in the formula in subsection (2) for any reporting period ending before that day. 
  
  ### Streamlined input tax credit calculation
  
  (10) Where a charity is a prescribed person for the purposes of subsection 259(12) during a reporting period of the charity, any input tax credit that the charity is entitled to claim in a return for that reporting period may be determined in accordance with Part V.1 of the Streamlined Accounting (GST/HST) Regulations as if the charity had made a valid election under section 227 that is in effect at all times while the charity is a prescribed person.  
  
  ### Exception
  
  (11) This section does not apply to a charity that is designated under section 178.7. 
  
  ### Selected listed financial institutions
  
  225.2 (1) For the purposes of this Part, a financial institution is a selected listed financial institution throughout a reporting period in a fiscal year that ends in a taxation year of the financial institution if the financial institution is 
  (a) a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) during the taxation year; and 
  (b) a prescribed financial institution throughout the reporting period. 
  
  ### Adjustment to net tax
  
  (2) In determining the net tax for a particular reporting period in a fiscal year that ends in a taxation year of a selected listed financial institution of a prescribed class, the financial institution shall add all positive amounts, and may deduct all negative amounts, each of which is determined, for a participating province, by the formula is the total of 
  (a) all tax (other than a prescribed amount of tax) that became payable under any of subsection 165(1) and sections 212, 218 and 218.01 by the financial institution during the particular reporting period or that was paid by the financial institution during the particular reporting period without having become payable, 
  (b) all amounts each of which is tax under subsection 165(1) in respect of a supply (other than a supply to which paragraph (c) applies) made by a person (other than a prescribed person or a person of a prescribed class) to the financial institution that would, in the absence of an election made under section 150, have become payable by the financial institution during the particular reporting period, and 
  (c) all amounts each of which is an amount — in respect of a supply of property or a service that is made during the particular reporting period by another person to the financial institution and to which the financial institution has elected to have this paragraph apply — equal to tax calculated at the rate set out in subsection 165(1) on the cost to the other person of supplying the property or service to the financial institution excluding any remuneration to employees of the other person, the cost of financial services and tax under this Part; is the total of 
  (a) all input tax credits (other than input tax credits in respect of an amount of tax that is prescribed for the purposes of paragraph (a) of the description of A) of the financial institution for the particular reporting period or preceding reporting periods of the financial institution claimed by the financial institution in the return under this Division filed by the financial institution for the particular reporting period, and 
  (b) all amounts each of which would be an input tax credit of the financial institution for the particular reporting period of the financial institution in respect of property or a service if tax became payable during the particular reporting period in respect of the supply of the property or service equal to the amount included for the particular reporting period under paragraph (b) or (c) of the description of A in respect of the supply; is the financial institution’s percentage for the participating province for the taxation year, determined in accordance with the prescribed rules that apply to financial institutions of that class; is the tax rate for the participating province; is the rate set out in subsection 165(1); is the total of 
  (a) all amounts of tax (other than a prescribed amount of tax) under subsection 165(2) in respect of supplies made in the participating province to the financial institution, or under section 212.1 calculated at the tax rate for the participating province, that 
  (i) became payable, or were paid without having become payable, by the financial institution during 
  (A) the particular reporting period, or 
  (B) any other reporting period of the financial institution that precedes the particular reporting period, provided that 
  (I) the particular reporting period ends within two years after the end of the financial institution’s fiscal year that includes the other reporting period, and 
  (II) the financial institution was a selected listed financial institution throughout the other reporting period, 
  (ii) were not included in determining the positive or negative amounts that the financial institution is required to add, or may deduct, under this subsection in determining its net tax for any reporting period of the financial institution other than the particular reporting period, and 
  (iii) are claimed by the financial institution in a return under this Division filed by the financial institution for the particular reporting period, and 
  (b) all amounts each of which is an amount — in respect of a supply of property or a service that is made during the particular reporting period by another person to the financial institution and to which the financial institution has elected to have paragraph (c) of the description of A apply — equal to tax payable by the other person under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 that is included in the cost to the other person of supplying the property or service to the financial institution; and is the total of all amounts each of which is a positive or negative prescribed amount. 
  
  ### Exclusions from adjustment
  
  (3) In determining an amount that a selected listed financial institution is required to add or may deduct under subsection (2) in determining its net tax, 
  (a) tax that the financial institution is deemed to have paid under any of subsections 171(1), 171.1(2), 206(2) and (3) and 208(2) and (3) shall be excluded from the totals for A and F in the formula in subsection (2); 
  (b) input tax credits in respect of tax referred to in paragraph (a) and input tax credits that the financial institution is permitted to claim under subsection 193(1) or (2) shall be excluded from the total for B in that formula; and 
  (c) no amount of tax paid or payable by the financial institution in respect of property or services acquired, imported or brought into a participating province otherwise than for consumption, use or supply in the course of an endeavour (as defined in subsection 141.01(1)) of the financial institution shall be included. 
  
  ### Election
  
  (4) If a person, other than a prescribed person or a person of a prescribed class, and a selected listed financial institution have made jointly an election under section 150, the financial institution may make an election, in prescribed form containing prescribed information, to have paragraph (c) of the description of A in subsection (2) apply to every supply to which subsection 150(1) applies that is made by the person to the financial institution at a time the election made under this subsection is in effect. 
  (5)  [Repealed, 2017, c. 33, s. 131]  
  
  ### Effective period of election
  
  (6) An election made under subsection (4) by a selected listed financial institution in respect of supplies made by a person to the financial institution shall be effective for the period beginning on the day specified in the election and ending on the earliest of 
  (a) the day the election made jointly by the person and the financial institution under section 150 ceases to be effective, 
  (b) the day specified in a revocation of the election made under subsection (6.1), 
  (c) the day the person becomes a prescribed person, or a person of a prescribed class, for the purposes of subsection (4), and 
  (d) the day the financial institution ceases to be a selected listed financial institution. 
  
  ### Revocation
  
  (6.1) A selected listed financial institution that has made an election under subsection (4) may revoke the election, in prescribed form containing prescribed information, effective on the day specified in the revocation, which day is at least 365 days after the day on which the election becomes effective. 
  
  ### Notice of election
  
  (6.2) If a particular selected listed financial institution has made an election under subsection (4) in respect of supplies made by another selected listed financial institution to the particular financial institution, the particular financial institution shall, in a manner satisfactory to the Minister, 
  (a) notify the other financial institution of the election and of the day it becomes effective on or before that day or any later day that the Minister may allow; and 
  (b) if the election ceases to be effective, notify the other financial institution of the day that the election ceases to be effective on or before that day or any later day that the Minister may allow. 
  
  ### Information requirements
  
  (7) For the purposes of this section, subsections 169(4) and (5) and 223(2) apply with respect to any amount that is included in the description of F in subsection (2) as if that amount were an input tax credit. 
  (8)  [Repealed, 2012, c. 31, s. 79]  
  
  ### Regulations — selected listed financial institutions
  
  (9) The Governor in Council may make regulations 
  (a) requiring any person or any class of persons to provide to a person any information that is required to allow a selected listed financial institution to determine the value of an element of a formula in subsection (2) or 237(5) or in any other provision of this Part or of a regulation made under this Part, specifying what information is to be provided, prescribing compliance measures in respect of that provision of information, and prescribing joint and several, or solidary, liability or penalties for failing to provide that information when and as required; 
  (b) allowing a person and a selected listed financial institution to make an election in respect of the filing of the returns of the person or the financial institution, specifying the circumstances in which that election may be revoked, prescribing compliance measures or other requirements in respect of that filing, and prescribing joint and several, or solidary, liability or penalties in respect of that filing; or 
  (c) requiring any selected listed financial institution to register under Subdivision D for the purposes of this Part or deeming any selected listed financial institution to be a registrant for the purposes of this Part. 
  
  ### Definitions
  
  225.3 (1) In this section, 
  *exchange-traded fund*, 
  *exchange-traded series*, 
  *non-stratified investment plan* and 
  *stratified investment plan* have the meaning prescribed by regulation.  
  
  ### Application to Minister
  
  (2) A selected listed financial institution that is an exchange-traded fund may apply to the Minister to use particular methods, for a fiscal year that ends in a taxation year of the financial institution, to determine 
  (a) if the financial institution is a stratified investment plan, the financial institution’s percentages for the purposes of subsection 225.2(2) for each exchange-traded series of the financial institution, for each participating province and for the taxation year; and 
  (b) if the financial institution is a non-stratified investment plan, the financial institution’s percentages for the purposes of subsection 225.2(2) for each participating province and for the taxation year. 
  
  ### Form and manner of application
  
  (3) An application made by a selected listed financial institution under subsection (2) is to be 
  (a) made in prescribed form containing prescribed information, including 
  (i) if the financial institution is a stratified investment plan, the particular methods to be used for each exchange-traded series of the financial institution, and 
  (ii) if the financial institution is a non-stratified investment plan, the particular methods to be used for the financial institution; and 
  (b) filed by the financial institution with the Minister in prescribed manner on or before 
  (i) the day that is 180 days before the first day of the fiscal year for which the application is made, or 
  (ii) any later day that the Minister may allow. 
  
  ### Authorization
  
  (4) On receipt of an application made under subsection (2), the Minister must 
  (a) consider the application and authorize or deny the use of the particular methods; and 
  (b) notify the selected listed financial institution in writing of the decision on or before 
  (i) the later of 
  (A) the day that is 180 days after the receipt of the application, and 
  (B) the day that is 180 days before the first day of the fiscal year for which the application is made, or 
  (ii) any later day that the Minister may specify, if the day is set out in a written application filed by the financial institution with the Minister. 
  
  ### Effect of authorization
  
  (5) If the Minister authorizes under subsection (4) the use of particular methods for a fiscal year of the selected listed financial institution, 
  (a) despite Part 2 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,  
  (i) the financial institution’s percentages for any participating province and for the taxation year in which the fiscal year ends that would, in the absence of this section, be determined under that Part are to be determined in accordance with those particular methods, and 
  (ii) the financial institution’s percentages for any exchange-traded series of the financial institution, for any participating province and for the taxation year in which the fiscal year ends that would, in the absence of this section, be determined under that Part are to be determined in accordance with those particular methods; and 
  (b) the financial institution must consistently, throughout the fiscal year, use those particular methods as indicated in the application to determine the percentages referred to in paragraph (a). 
  
  ### Revocation
  
  (6) An authorization granted under subsection (4) to a selected listed financial institution in respect of a fiscal year of the financial institution ceases to have effect on the first day of the fiscal year and, for the purposes of this Part, is deemed never to have been granted, if 
  (a) the Minister revokes the authorization and sends a notice of revocation to the financial institution at least 60 days before the first day of the fiscal year; or 
  (b) the financial institution files with the Minister in prescribed manner a notice of revocation in prescribed form containing prescribed information on or before the first day of the fiscal year. 
  
  ### Definitions
  
  225.4 (1) The following definitions apply in this section.  
  *business input* has the same meaning as in subsection 141.02(1). (intrant d’entreprise)   
  *Canadian activity* has the same meaning as in section 217. (activité au Canada)   
  *exclusive input* of a person means property or a service that is acquired or imported by the person for consumption or use directly and exclusively for the purpose of making taxable supplies for consideration or directly and exclusively for purposes other than making taxable supplies for consideration. (intrant exclusif)  
  
  ### Prescribed definitions
  
  (2) In this section, 
  *exchange-traded fund*, 
  *exchange-traded series*, 
  *individual*, 
  *investment plan*, 
  *non-stratified investment plan*, 
  *plan member*, 
  *private investment plan*, 
  *series*, 
  *specified investor*, 
  *stratified investment plan* and 
  *unit* have the meaning prescribed by regulation.  
  
  ### Stratified investment plans
  
  (3) If a selected listed financial institution is a stratified investment plan and no election under subsection (6) in respect of a series of the financial institution is in effect throughout a fiscal year of the financial institution that ends in a calendar year, the following rules apply: 
  (a) for the purposes of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,  
  (i) if the series is an exchange-traded series, all units of the series that are held, at a particular time in the fiscal year, by a person that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province, 
  (ii) if the series is not an exchange-traded series, all units of the series that are held, at a particular time in the fiscal year, by an individual, or a specified investor in the financial institution, that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province, and 
  (iii) the financial institution is deemed to know, on December 31 of the calendar year, the province in which the particular individual referred to in subparagraph (i) or (ii) is resident; 
  (b) for the purposes of determining an input tax credit of the financial institution, any supply made during the fiscal year by the financial institution in respect of units of the series that are held by a person that is not resident in Canada is deemed to have been made to a person resident in Canada; 
  (c) for the purposes of the definitions 
  *external charge* and 
  *qualifying consideration* in section 217, any outlay made, or expense incurred, by the financial institution during the fiscal year in respect of units of the series that are held by a person that is not resident in Canada is deemed to be applicable to a Canadian activity of the financial institution; and  
  (d) no amount of tax in respect of a business input of the financial institution that becomes payable by the financial institution during the fiscal year or that is paid by the financial institution during the fiscal year without having become payable is to be included in determining an input tax credit of the financial institution if the business input 
  (i) is acquired or imported for consumption, use or supply in the course of any activity relating to the series, or 
  (ii) is not an exclusive input of the financial institution. 
  
  ### Non-stratified investment plans
  
  (4) If a selected listed financial institution is a non-stratified investment plan and no election under subsection (7) made by the financial institution is in effect throughout a fiscal year of the financial institution that ends in a calendar year, the following rules apply: 
  (a) for the purposes of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,  
  (i) if the financial institution is an exchange-traded fund, all units of the financial institution that are held, at a particular time in the fiscal year, by a person that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province, 
  (ii) if the financial institution is not an exchange-traded fund, all units of the financial institution that are held, at a particular time in the fiscal year, by an individual, or a specified investor in the financial institution, that the financial institution knows, on December 31 of the calendar year, is not resident in Canada at the particular time are deemed to be held at the particular time by a particular individual that is resident in Canada but not resident in any participating province, and 
  (iii) the financial institution is deemed to know, on December 31 of the calendar year, the province in which the particular individual referred to in subparagraph (i) or (ii) is resident; 
  (b) for the purposes of determining an input tax credit of the financial institution, any supply made during the fiscal year by the financial institution in respect of units of the financial institution that are held by a person that is not resident in Canada is deemed to have been made to a person resident in Canada; 
  (c) for the purposes of the definitions 
  *external charge* and 
  *qualifying consideration* in section 217, any outlay made, or expense incurred, by the financial institution during the fiscal year in respect of units of the financial institution that are held by a person that is not resident in Canada is deemed to be applicable to a Canadian activity of the financial institution; and  
  (d) no amount of tax in respect of a business input of the financial institution that becomes payable by the financial institution during the fiscal year or that is paid by the financial institution during the fiscal year without having become payable is to be included in determining an input tax credit of the financial institution if the business input is not an exclusive input of the financial institution. 
  
  ### Pension entities and private investment plans
  
  (5) If a selected listed financial institution is an investment plan that is a pension entity of a pension plan or a private investment plan and no election under subsection (7) made by the financial institution is in effect throughout a fiscal year of the financial institution that ends in a calendar year, the following rules apply: 
  (a) for the purposes of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,  
  (i) all plan members of the financial institution that the financial institution knows, on December 31 of the calendar year, are not resident in Canada at a particular time in the fiscal year are deemed to be resident in Canada at the particular time but not resident in any participating province, and 
  (ii) the financial institution is deemed to know, on December 31 of the calendar year, the province in which each of the plan members referred to in subparagraph (i) is resident; 
  (b) for the purposes of determining an input tax credit of the financial institution, any supply made during the fiscal year by the financial institution in respect of plan members of the financial institution that are not resident in Canada is deemed to have been made to a person resident in Canada; 
  (c) for the purposes of the definitions 
  *external charge* and 
  *qualifying consideration* in section 217, any outlay made, or expense incurred, by the financial institution during the fiscal year in respect of plan members of the financial institution that are not resident in Canada is deemed to be applicable to a Canadian activity of the financial institution; and  
  (d) no amount of tax in respect of a business input of the financial institution that becomes payable by the financial institution during the fiscal year or that is paid by the financial institution during the fiscal year without having become payable is to be included in determining an input tax credit of the financial institution if the business input is not an exclusive input of the financial institution. 
  
  ### Election — stratified investment plans
  
  (6) A stratified investment plan may make an election in respect of a series of the investment plan to have subsection (3) not apply to the series, and that election is to be effective from the first day of a fiscal year of the investment plan. 
  
  ### Election — other investment plans
  
  (7) A person that is a non-stratified investment plan, a pension entity or a private investment plan may make an election to have subsection (4) or (5), as the case may be, not apply to the person, and that election is to be effective from the first day of a fiscal year of the person. 
  
  ### Form of election
  
  (8) An election made under subsection (6) or (7) by a person is to 
  (a) be made in prescribed form containing prescribed information; 
  (b) set out the first fiscal year of the person during which the election is to be in effect; and 
  (c) be filed with the Minister in prescribed manner on or before the first day of that first fiscal year or any later day that the Minister may allow. 
  
  ### Cessation
  
  (9) An election made under subsection (6) or (7) by a person ceases to have effect on the earliest of 
  (a) the first day of the fiscal year of the person in which the person ceases to be a selected listed financial institution, 
  (b) in the case of an election made under subsection (6), the first day of the fiscal year of the person in which the person ceases to be a stratified investment plan, 
  (c) in the case of an election made under subsection (7), the first day of the fiscal year of the person in which the person ceases to be a non-stratified investment plan, a pension entity or a private investment plan, as the case may be, and 
  (d) the day on which a revocation of the election becomes effective. 
  
  ### Revocation
  
  (10) A person that has made an election under subsection (6) or (7) may revoke the election, effective on the first day of a fiscal year of the person that begins at least five years after the election becomes effective, or on the first day of any earlier fiscal year as the Minister may allow on application by the person, by filing with the Minister in prescribed manner a notice of revocation in prescribed form containing prescribed information no later than the day on which the revocation is to become effective. 
  
  ### Restriction
  
  (11) If a revocation of an election made under subsection (6) or (7) by a person becomes effective on a particular day, any subsequent election under that subsection is not a valid election unless the first day of the fiscal year of the person set out in the subsequent election is a day that is at least five years after the particular day or any earlier day as the Minister may allow on application by the person. 
  
  ### Definitions
  
  226 (1) The following definitions apply in this section.  
  *applicable legislated amount* in a province for a returnable container of a particular class means  
  (a) except if paragraph (b) applies, the legislated consumers’ refund in the province for a returnable container of that class; or 
  (b) if, under an Act of the legislature of the province in respect of recycling, a legislated consumers’ refund for a returnable container of that class is specified and another amount (in this paragraph referred to as the “recycler’s reimbursement”) is specified as the amount to be paid, otherwise than specifically in respect of the handling of the container, for a used and empty returnable container of that class when supplied by a person who, on acquiring it used and empty, paid an amount as the legislated consumers’ refund for the container, but no amount is specified as the amount, or the minimum amount, to be charged by a distributor in respect of the supply of a filled and sealed returnable container of that class, the recycler’s reimbursement. ( montant obligatoire applicable)   
  *consumers’ recycler*, in respect of a returnable container of a particular class in a province, means a person who, in the ordinary course of their business, acquires in the province used and empty returnable containers of that class from consumers for consideration. (récupérateur)   
  *distributor* of a returnable container of a particular class in a province means a person who supplies beverages in filled and sealed returnable containers of that class in the province and charges a returnable container charge in respect of the returnable containers. (distributeur)   
  *legislated consumers’ refund* in a province for a returnable container of a particular class means the amount, or the minimum amount, that, under an Act of the legislature of the province in respect of recycling, must be paid in certain circumstances for a used and empty returnable container of that class to a person of a class that includes consumers. (remboursement obligatoire aux consomma­teurs)   
  *recycler* of returnable containers of a particular class in a province means  
  (a) a person who, in the ordinary course of their business, acquires used and empty returnable containers of that class (or the material resulting from their compaction) in the province for consideration; or 
  (b) a person who, in the ordinary course of their business, pays consideration to a person referred to in paragraph (a) in compensation for that person acquiring used and empty returnable containers of that class and paying consideration for those containers. ( recycleur)   
  *recycling*, in respect of a province, means  
  (a) the return, redemption, reuse, destruction or disposal of 
  (i) returnable containers in the province, or 
  (ii) returnable containers in the province and other goods; or 
  (b) the control or prevention of waste or the protection of the environment. ( recyclage)   
  *refund*, at any time in a province, means  
  (a) in relation to a returnable container of a particular class that is supplied used and empty, or that is filled with a beverage that is supplied, at that time in the province, 
  (i) the greatest of 
  (A) if there is an applicable legislated amount in the province for returnable containers of that class, that amount, 
  (B) if the supplier is a consumers’ recycler who, in the ordinary course of their business, sells the beverage in returnable containers of that class in the province and the usual returnable container charge that is charged by the supplier when so selling the beverage is not less than the amount (in this clause referred to as the “usual refund”) that is, at that time, the usual consideration that the supplier pays for supplies in the province of used and empty returnable containers of that class from consumers, the usual refund, 
  (C) if the supplier is a consumers’ recycler who does not, in the ordinary course of their business, sell the beverage in returnable containers of that class in the province, the amount that is, at that time, the usual consideration that the supplier pays for supplies in the province of used and empty returnable containers of that class from consumers, and 
  (D) if, at that time, 
  (I) in accordance with established industry practice, suppliers charge a common amount as the usual returnable container charge when selling the beverage in returnable containers of that class in the province, and 
  (II) it is not exceptional for the usual amount paid to consumers by consumers’ recyclers as consideration for supplies in the province of used and empty returnable containers of that class to vary among consumers’ recyclers, the greatest of those usual amounts paid to consumers not exceeding the usual returnable container charge, and 
  (ii) if none of clauses (i)(A) to (D) applies, the portion of the amount that is, at that time, the consideration paid, in the greatest number of cases, by consumers’ recyclers for supplies in the province of used and empty returnable containers of that class from consumers that does not exceed the amount that is, at that time, the returnable container charge charged in the greatest number of cases by suppliers when selling the beverage in returnable containers of that class in the province; and 
  (b) in relation to a returnable container of a particular class in respect of which a supply is made at that time in the province of a service to which subsection (7) applies, 
  (i) if the supplier is a consumers’ recycler, the amount that is, at that time, the usual consideration that the supplier pays for supplies in the province of used and empty returnable containers of that class from consumers, and 
  (ii) in any other case, the amount that is, at that time, the consideration paid, in the greatest number of cases, by consumers’ recyclers for supplies in the province of used and empty returnable containers of that class from consumers. ( montant remboursé)   
  *returnable container* in a province means a beverage container of a class of containers that  
  (a) are ordinarily acquired by consumers; 
  (b) when acquired by consumers, are ordinarily filled and sealed; and 
  (c) are ordinarily supplied in the province used and empty by consumers for consideration. ( contenant consigné)   
  *returnable container charge*, at any time, means  
  (a) in relation to a returnable container of a particular class containing a beverage that is supplied at that time in a province, the total of all amounts, each of which is charged by the supplier 
  (i) as an amount in respect of recycling in the province, 
  (ii) for the purpose of recovering an amount equivalent to the amount referred to in subparagraph (i) that was charged to the supplier, or 
  (iii) for the purpose of recovering an amount equivalent to the amount that was charged to the supplier by another supplier for the purpose referred to in subparagraph (ii) or for the purpose referred to in this subparagraph; 
  (b) in relation to a filled and sealed returnable container containing a beverage that is held by a person at that time for consumption, use or supply in a province, 
  (i) if the beverage is held at that time by the person for the purpose of making a supply in the province of the beverage in the container, the amount that the person can reasonably expect will be determined under paragraph (a) in respect of the container when the beverage is so supplied, and 
  (ii) in any other case, the amount in respect of the container that would reasonably be expected to be determined under paragraph (a) if the beverage were supplied at that time to the person in the province; and 
  (c) in relation to a returnable container of a particular class in respect of which a recycler of returnable containers of that class makes at that time a supply in a province of a service in respect of recycling to a distributor, or a recycler, of returnable containers of that class, 
  (i) if an Act of the legislature of the province in respect of recycling specifies an amount, or a minimum amount, that must be collected from, or paid by, a recipient in certain circumstances for the supply of a beverage in a returnable container of that class, that amount, and 
  (ii) in any other case, the amount in respect of the container that would reasonably be expected to be determined under paragraph (a) if the container were filled and sealed and contained a beverage that was being supplied at that time in the province. ( droit sur contenant consigné)   
  *specified beverage retailer*, in respect of a returnable container of a particular class, means a registrant  
  (a) who, in the ordinary course of the registrant’s business, makes supplies (in this definition referred to as 
  *specified supplies*) of beverages in returnable containers of that class to consumers in circumstances in which the registrant typically does not unseal the containers; and  
  (b) whose circumstance is not that all or substantially all of the supplies of used and empty returnable containers of that class that are gathered by the registrant at establishments at which the registrant makes specified supplies are of containers that the registrant acquired used and empty for consideration. ( vendeur au détail déterminé)  
  
  ### Taxable supply of beverage in returnable container
  
  (2) Subject to subsection (3), for the purposes of this Part, if a supplier makes a particular taxable supply (other than a zero-rated supply) in a province of a beverage in a filled and sealed returnable container of a particular class in circumstances in which the supplier typically does not unseal the container, and the supplier charges the recipient a returnable container charge in respect of the container, 
  (a) the consideration for the particular supply is deemed to be equal to the amount determined by the formula is the consideration for the particular supply as otherwise determined for the purposes of this Part, and is the returnable container charge; 
  (b) if the returnable container charge exceeds the refund for the container, the supplier is deemed to have made to the recipient, at the time at which the consideration for the particular supply becomes due or would, in the absence of section 156, have become due, a taxable supply in the province of a service in respect of the container for consideration, separate from the consideration for the beverage, that becomes due at that time and that is, subject to that section, equal to 
  (i) except if subparagraph (ii) applies, the amount by which the returnable container charge exceeds the refund for the container, or 
  (ii) if an Act of the legislature of the province is prescribed for the purposes of this paragraph, 
  (A) if that province is a participating province and that Act, or regulations made under it, specify an amount in respect of a returnable container of that class that must be equal to or not less than the total (in this clause referred to as the “tax-included charge”) of the returnable container charge to be charged in respect of the particular supply or a previous supply of the beverage in the container and any applicable tax under this Part, the amount determined by the formula is the amount by which the tax-included charge exceeds the refund for the container, and is the total of the rate of tax under subsection 165(1) and the tax rate for the province, and 
  (B) in any other case, the amount determined in prescribed manner; and 
  (c) the recipient is deemed to have acquired that service for the same purpose as that for which the recipient acquired the beverage. 
  
  ### Exception for specified beverage retailer
  
  (3) Subsection (2) does not apply to a supply by a registrant of a beverage in a returnable container in respect of which the registrant is a specified beverage retailer if the registrant elects not to deduct the amount of the returnable container charge in respect of the container in determining the consideration for the supply for the purposes of this Part. 
  
  ### Supply of used container
  
  (4) If a person makes a particular supply in a province of a used and empty returnable container (or the material resulting from its compaction), 
  (a) the value of the consideration for the particular supply is deemed, for the purposes of this Part other than this section, to be nil; and 
  (b) if the consideration exceeds the refund for the container, the supplier is deemed, for the purposes of this Part, to have made to the recipient, at the time at which the consideration for the particular supply becomes due or would, in the absence of section 156, have become due, a taxable supply in the province of a service in respect of the container for consideration, that is separate from the consideration for the particular supply, equal to the excess amount. 
  
  ### Exception
  
  (5) Subsection (4) does not apply 
  (a) for the purposes of section 5 of Part V.1 of Schedule V or section 10 of Part VI of that Schedule; or 
  (b) to a supply made in a province of a used and empty returnable container of a particular class (or the material resulting from its compaction) if the usual business practice of the recipient is to pay consideration for supplies in the province of used and empty returnable containers of that class (or the material resulting from their compaction) that is determined based on the value of the material from which the containers are made or is otherwise determined based neither on the amount of the refund for the returnable containers nor on the amount of the returnable container charge in respect of filled and sealed returnable containers of that class containing beverages that are supplied in the province. 
  
  ### Supply of recycling service to distributor
  
  (6) For the purposes of this Part (other than section 5 of Part V.1 of Schedule V and section 10 of Part VI of that Schedule), if 
  (a) a recycler of returnable containers of a particular class makes a particular taxable supply in a province of a service in respect of the recycling of returnable containers of that class to a distributor of returnable containers of that class who is not a recycler who supplies such services to other distributors of returnable containers of that class, 
  (b) the recycler does not supply the containers to the distributor, and 
  (c) the consideration for the particular supply is based in whole or in part on the amount in that province of the returnable container charge in respect of returnable containers of that class or on an amount that a consumer could reasonably expect to receive for a used and empty returnable container of that class, the value of the consideration for the particular supply is deemed to be equal to the amount determined by the formula is the consideration for the particular supply as otherwise determined for the purposes of this Part; and is the total of all amounts each of which is the returnable container charge in that province for a returnable container in respect of which that consideration is paid or payable. 
  
  ### Supply between recyclers
  
  (7) For the purposes of this Part, if a recycler of returnable containers of a particular class makes a particular taxable supply in a province of a service in respect of the recycling of returnable containers of that class to another recycler of returnable containers of that class without supplying the containers to the other recycler and the consideration for the particular supply is based in whole or in part on the amount in that province of the refund, or the returnable container charge, in respect of returnable containers of that class, the value of the consideration for the particular supply is deemed to be equal to the amount determined by the formula is the consideration for the particular supply as otherwise determined for the purposes of this Part; and is the total of all amounts each of which is the refund in that province for a returnable container in respect of which that consideration is paid or payable. 
  
  ### Special rules in the case of prescribed provincial Act
  
  (8) Subject to subsection (9), if a registrant acquires, in a province in which an Act prescribed for the purposes of paragraph (2)(b) applies, a beverage in a returnable container for the purpose of making in that province a taxable supply of the beverage in the container in circumstances in which the registrant will charge a returnable container charge in respect of the container and be required to collect tax in respect of the supply, 
  (a) if a supply of a service in respect of the container is deemed under that paragraph to have been made to the registrant, the tax in respect of the supply of the service shall not be included in determining an input tax credit of the registrant; and 
  (b) if the registrant makes a supply in that province of the beverage in circumstances in which the registrant is deemed under that paragraph to have made a supply of a service in respect of the container, neither the consideration for the supply of that service nor any tax in respect of that supply shall be included in determining the net tax of the registrant. 
  
  ### Non-application of special rules
  
  (9) If a registrant is deemed under paragraph (2)(b) to have received or made at any time a supply in a province of a service in respect of a returnable container of a particular class containing a particular beverage, paragraph (8)(a) or (b), as the case may be, does not apply in respect of the supply if 
  (a) the usual business practice of the registrant at that time is to charge, when making supplies in the province of the particular beverage contained in returnable containers of that class, a returnable container charge that is not equal to the returnable container charge that the registrant pays in respect of returnable containers of that class containing the particular beverage when supplies of the beverage are made to the registrant in the province; or 
  (b) the registrant is a specified beverage retailer in respect of the container and elects under subsection (3) not to deduct the amount of the returnable container charge charged by the registrant in determining the consideration for the supply by the registrant of the particular beverage in the returnable container. 
  
  ### Change in practice — beginning to apply special rules
  
  (10) If, after changing their usual business practice with respect to supplies of a particular beverage in returnable containers of a particular class from the practice described in subsection (9), a registrant makes, at a particular time, in a province in which an Act prescribed for the purposes of paragraph (2)(b) applies, a supply of the particular beverage in a returnable container of that class in circumstances in which the registrant is deemed under that paragraph to have made a supply of a service in respect of the container and that supply of the beverage is the first supply by the registrant of the particular beverage in a returnable container of that class in respect of which paragraph (8)(b) applies since the change in practice, the registrant is deemed, for the purposes of this Part, 
  (a) to have made, at the particular time, a taxable supply of a service in respect of each filled and sealed returnable container of that class containing the particular beverage 
  (i) that was, immediately before the particular time, held by the registrant for the purpose of making a taxable supply of the particular beverage in the province in circumstances in which the registrant would be deemed under paragraph (2)(b) to have made a supply of a service in respect of the container, and 
  (ii) that was last supplied to the registrant in the province in circumstances in which the registrant was deemed under that paragraph to have received a supply of a service in respect of which the registrant was entitled to claim an input tax credit or would have been so entitled if tax would, in the absence of section 156 or 167, have been payable in respect of that supply of the service; and 
  (b) to have collected, at the particular time, tax in respect of each supply of a service in respect of a returnable container that is deemed under paragraph (a) to have been made by the registrant equal to the tax that was payable or would, in the absence of section 156 or 167, have been payable by the registrant in respect of the supply to the registrant of the service referred to in subparagraph (a)(ii) in respect of that container. 
  
  ### Change in practice — ceasing to apply special rules
  
  (11) If, after changing their usual business practice with respect to supplies of a particular beverage in returnable containers of a particular class to the practice described in subsection (9), a registrant makes, at a particular time, in a province in which an Act prescribed for the purposes of paragraph (2)(b) applies, a supply of the particular beverage in a returnable container of that class in circumstances in which the registrant is deemed under that paragraph to have made a supply of a service in respect of the container and the supply is the first supply by the registrant of the particular beverage in a returnable container of that class in respect of which paragraph (8)(b) would have applied but for the change in practice, the registrant is deemed, for the purposes of this Part, 
  (a) to have received, at the particular time, for use exclusively in a commercial activity of the registrant, a taxable supply of a service in respect of each filled and sealed returnable container of that class containing the particular beverage 
  (i) that was, immediately before the particular time, held by the registrant for the purpose of making a taxable supply of the particular beverage in the province in circumstances in which the registrant would be deemed under paragraph (2)(b) to have made a supply of a service in respect of the container, and 
  (ii) that was last supplied to the registrant in the province in circumstances in which the registrant was deemed under that paragraph to have received a supply of a service in respect of which, owing solely to paragraph (8)(a), the registrant was not entitled to claim an input tax credit or would not have been so entitled if tax would, in the absence of section 156 or 167, have been payable in respect of that supply of the service; and 
  (b) to have paid, at the particular time, tax in respect of each supply of a service in respect of a returnable container that is deemed under paragraph (a) to have been received by the registrant equal to the tax that was or would, in the absence of section 156 or 167, have been payable by the registrant in respect of the supply to the registrant of the service referred to in subparagraph (a)(ii) in respect of that container. 
  
  ### Ceasing to be registrant while special rules apply
  
  (12) If a person who makes supplies of a particular beverage in filled and sealed returnable containers of a particular class in a province in which an Act prescribed for the purposes of paragraph (2)(b) applies ceases at any time to be a registrant, the person is deemed, for the purposes of this Part, 
  (a) to have received, immediately before that time, a supply of a service in respect of each filled and sealed returnable container of that class containing the particular beverage that was held by the person immediately before that time and in respect of which paragraph (8)(b) would have applied if the particular beverage in the container had been supplied by the person immediately before that time in circumstances in which the person would have been deemed under paragraph (2)(b) to have made a supply of a service in respect of the container; and 
  (b) to have paid, immediately before that time, tax in respect of each supply of a service in respect of a returnable container that is deemed under paragraph (a) to have been received by the person equal to the tax that was payable or would, in the absence of section 156 or 167, have been payable by the person in respect of the supply to the person of the service that was deemed under paragraph (2)(b) to have been made to the person when the person acquired the partic­ular beverage. 
  
  ### Supplies under s. 167
  
  (13) For the purposes of this Part, if a registrant makes a taxable supply of a beverage in a filled and sealed returnable container under an agreement for the supply of a business or part of a business in circumstances in which subsection 167(1.1) applies to the supply and the registrant is deemed under subsection (2) to have made a supply of a service in respect of the container, the supply of the service is deemed to have been made under the agreement and not to be a service referred to in subparagraph 167(1.1)(a)(i). 
  
  ### Deemed tax collected where s. 156 or 167 applies
  
  (14) For the purposes of this Part, if 
  (a) a supplier makes a supply in a province of a beverage in a filled and sealed returnable container to a registrant and is deemed under paragraph (2)(b) to have made at any time a supply to the registrant of a service in respect of the container, 
  (b) because of section 156 or 167, no tax is payable in respect of the supplies to the registrant of the beverage and of the service, 
  (c) by reason only of paragraph (8)(a), the registrant would not have been entitled to claim an input tax credit in respect of the tax that would, in the absence of section 156 or 167, have been payable in respect of the supply of the service, and 
  (d) paragraph (8)(b) does not apply in respect of the supplies to the registrant of the beverage and the service in determining the net tax of the supplier, the registrant is deemed to have made, at that time, a particular taxable supply in the province of a service in respect of the container for consideration equal to the amount that would, without reference to section 156, be the value of the consideration for the supply of the service that is deemed under paragraph (2)(b) to have been made to the registrant in respect of the container and the registrant is deemed to have collected at that time tax in respect of the particular supply calculated on that consideration. 
  
  ### Deemed tax paid where s. 156 or 167 applies
  
  (15) For the purposes of this Part, if 
  (a) a supplier makes a supply in a province of a beverage in a filled and sealed returnable container to a registrant and is deemed under paragraph (2)(b) to have made at any time a supply to the registrant of a service in respect of the container, 
  (b) because of section 156 or 167, no tax is payable in respect of the supplies to the registrant of the beverage and of the service, 
  (c) paragraph (8)(a) would not have applied to the registrant in respect of the tax that would, in the absence of section 156 or 167, have been payable in respect of the supply of the service, and 
  (d) paragraph (8)(b) applies in respect of the supplies by the supplier to the registrant of the beverage and the service in determining the net tax of the supplier, the registrant is deemed to have received, at that time, a particular taxable supply in the province of a service in respect of the container for consideration equal to the amount that would, without reference to section 156, be the value of the consideration for the supply of the service that is deemed under paragraph (2)(b) to have been made to the registrant in respect of the container, the registrant is deemed to have paid, at that time, tax in respect of the particular supply calculated on that consideration and the registrant is deemed to have acquired that service for the same purpose as that for which the registrant acquired the beverage. 
  
  ### Fair market value of beverage in filled and sealed container
  
  (16) For the purposes of this Part, if a beverage in a filled and sealed returnable container in respect of which there is a returnable container charge is held at any time by a person for consumption, use or supply in a province in the course of commercial activities of the person, the fair market value of the beverage at that time is deemed not to include the amount that would be determined as the refund for the container if the beverage were supplied in the province by the person at that time in the filled and sealed container. 
  
  ### Basic tax content of beverage in filled and sealed container
  
  (17) The basic tax content at any time of a beverage in a filled and sealed returnable container that is held at that time by a person shall be determined as if the tax payable, if any, in respect of the last supply of a service in respect of the container that was deemed under subsection (2) or (15) to have been made to the person, and the tax payable, if any, in respect of the last supply of a service in respect of the container that was deemed under subsection (14) to have been made by the person, were additional tax payable by the person in respect of the last acquisition of the beverage by the person. 
  
  ### Addition to net tax
  
  (18) If 
  (a) a registrant makes a supply in a province of a beverage in a returnable container of a particular class in respect of which the registrant is a specified beverage retailer, 
  (b) paragraph (2)(a) applies in determining, for the purposes of this Part, the consideration for the supply, and 
  (c) the registrant makes at any time a supply in the province of that container used and empty for consideration without having acquired it used and empty for consideration, the registrant shall, in determining the net tax of the registrant for the reporting period that includes that time, add the amount determined by the formula is 
  (i) if the province is a participating province, the total of the rate of tax under subsection 165(1) and the tax rate for the province, and 
  (ii) in any other case, the rate of tax under subsection 165(1); and is the refund for a returnable container of that class in the province. 
  226.01  [Repealed, 2007, c. 18, s. 29]  
  226.1  [Repealed, 2007, c. 18, s. 30]  
  
  ### Election for streamlined accounting
  
  227 (1) A registrant (other than a charity that is not designated under section 178.7) who is a prescribed registrant or a member of a prescribed class of registrants may elect to determine the net tax of the registrant for a reporting period during which the election is in effect by a prescribed method. 
  
  ### Form and contents of election
  
  (2) An election made under subsection (1) by a registrant shall 
  (a) be filed in prescribed manner with the Minister in prescribed form containing prescribed information; 
  (b) set out the day the election is to become effective, which day shall be the first day of a reporting period of the registrant; and 
  (c) be filed 
  (i) where the first reporting period of the registrant in which the election is in effect is a fiscal year of the registrant, on or before the first day of the second fiscal quarter of that year or such later day as the Minister may determine on application of the registrant, and 
  (ii) in any other case, on or before the day on or before which the return of the registrant is required to be filed under this Division for the first reporting period of the registrant in which the election is in effect or on such later day as the Minister may determine on application of the registrant. 
  
  ### Cessation
  
  (3) An election made under this section by a registrant ceases to have effect on the earlier of 
  (a) the first day of the reporting period of the registrant in which the registrant ceases to be a prescribed registrant or a member of a prescribed class of registrants, and 
  (b) the day on which a revocation of the election becomes effective. 
  
  ### Revocation
  
  (4) An election made under subsection (1) by a registrant may be revoked by the registrant. 
  
  ### Effective date and notice of revocation
  
  (4.1) A revocation of an election made under subsection (1) by a registrant 
  (a) shall become effective on the first day of a reporting period of the registrant but not earlier than one year after the election became effective; and 
  (b) is not a valid revocation unless a notice of revocation of the election in prescribed form containing prescribed information is filed in prescribed manner with the Minister on or before the day on or before which the return under this Division is required to be filed for the last reporting period of the registrant in which the election is effective. 
  
  ### Exception
  
  (4.2) Where a registrant makes an election under subsection (1) to determine the net tax of the registrant in accordance with a prescribed Part of the Streamlined Accounting (GST/HST) Regulations,  
  (a) paragraph (2)(a) does not apply to the election; 
  (b) notwithstanding subsection (2), the election shall be made before a return under this Division is filed for the reporting period of the registrant in which the election becomes effective; and 
  (c) paragraph (4.1)(b) does not apply to a revocation of the election. 
  
  ### Restriction on input tax credits
  
  (5) Where an election made under this section by a registrant ceases to have effect, an input tax credit (other than a prescribed input tax credit) of the registrant for a reporting period of the registrant during which the election was in effect shall not be claimed by the registrant in a reporting period that begins after the election ceased to have effect. 
  
  ### Restriction on input tax credits
  
  (6) Sections 231 to 236 do not apply for the purpose of determining the net tax of a registrant for a reporting period during which an election made by the registrant under subsection (1) is in effect, except as otherwise provided in the Streamlined Accounting (GST/HST) Regulations.  
  
  ### Calculation of net tax
  
  228 (1) Every person who is required to file a return under this Division shall, in the return, calculate the net tax of the person for the reporting period for which the return is required to be filed, except where subsection (2.1) or (2.3) applies in respect of the reporting period. 
  
  ### Remittance
  
  (2) Where the net tax for a reporting period of a person is a positive amount, the person shall, except where subsection (2.1) or (2.3) applies in respect of the reporting period, remit that amount to the Receiver General, 
  (a) where the person is an individual to whom subparagraph 238(1)(a)(ii) applies in respect of the reporting period, on or before April 30 of the year following the end of the reporting period; and 
  (b) in any other case, on or before the day on or before which the return for that period is required to be filed. 
  
  ### Selected listed financial institutions — interim return and remittance
  
  (2.1) Where a person who is a selected listed financial institution is required to file an interim return for a reporting period under subsection 238(2.1), 
  (a) subject to subsection (2.2), the person shall calculate in the interim return the amount (in this Part referred to as the “interim net tax”) that would be the net tax of the person for the reporting period if the description of C in the formula in subsection 225.2(2) were read as “is the lesser of the financial institution’s percentage for the participating province for the taxation year and the financial institution’s percentage for the participating province for the immediately preceding taxation year, each determined in accordance with the prescribed rules that apply to financial institutions of that class”; and 
  (b) where the interim net tax for the reporting period is a positive amount, the person shall pay that amount, on account of the person’s net tax for the reporting period that the person is required to remit under paragraph (2.3)(b), to the Receiver General on or before the day on or before which that interim return is required to be filed. 
  
  ### Selected listed financial institutions — interim returns in the first fiscal year
  
  (2.2) For the purposes of paragraph (2.1)(a), where a person becomes a selected listed financial institution during a reporting period of the person that ends in a fiscal year of the person that begins on or after April 1, 1997, the interim net tax for each reporting period in the fiscal year is the amount that would be the net tax of the person for the reporting period if the description of C in the formula in subsection 225.2(2) read “is the financial institution’s percentage for the participating province for the immediately preceding reporting period, determined in accordance with the prescribed rules that apply to financial institutions of that class”. 
  
  ### Selected listed financial institutions — final return
  
  (2.3) Where a person who is a selected listed financial institution is required to file a final return under subsection 238(2.1) for a reporting period, 
  (a) the person shall calculate in the final return the net tax of the person for the reporting period; 
  (b) where the net tax of the person for the reporting period is a positive amount, the person shall remit that amount to the Receiver General on or before the day on or before which the final return for the reporting period is required to be filed; 
  (c) the person shall report in the final return the positive amount, if any, that the person paid on account of the person’s net tax for the period under subsection (2.1) or the negative amount, if any, that the person claimed in the interim return for the period as an interim net tax refund for the period under subsection (2.4); and 
  (d) where the person claimed an interim net tax refund for the reporting period under subsection (2.4), 
  (i) if the interim net tax refund exceeds the amount that would be the net tax refund for the period payable to the person under subsection (3) if the person had not claimed that interim net tax refund, the person shall pay an amount equal to the excess to the Receiver General on or before the day on or before which the final return for the reporting period is required to be filed, and 
  (ii) if the person’s net tax for the period is a positive amount, the person shall pay an amount equal to the interim net tax refund to the Receiver General on or before the day on or before which the final return for the reporting period is required to be filed. 
  
  ### Interim refund for selected listed financial institutions
  
  (2.4) Where the amount determined in accordance with paragraph (2.1)(a) for a reporting period of a person who is a selected listed financial institution is a negative amount, the person may claim that amount, in the interim return for that reporting period filed before the day on or before which the final return for the period is required to be filed, as an interim net tax refund for the period payable to the person by the Minister. 
  
  ### Net tax refund
  
  (3) Where the net tax for a reporting period of a person is a negative amount, 
  (a) where the person is a selected listed financial institution that is required to file a final return for the reporting period under subsection 238(2.1), the person may claim, in the final return for that reporting period as a net tax refund for the period payable to the person by the Minister, the amount, if any, determined by the formula is the absolute value of that net tax, and is the amount, if any, that the person claimed as an interim net tax refund for the period under subsection (2.4); and 
  (b) in any other case, the person may claim in the return for that reporting period the amount of that net tax as a net tax refund for the period, payable to the person by the Minister. 
  
  ### Real property and emission allowance — self-assessment
  
  (4) If tax under Division II is payable by a person in respect of a supply of property that is real property or an emission allowance and the supplier is not required to collect the tax and is not deemed to have collected the tax, 
  (a) where the person is a registrant and acquired the property for use or supply primarily in the course of commercial activities of the person, the person shall, on or before the day on or before which the person’s return for the reporting period in which the tax became payable is required to be filed, pay the tax to the Receiver General and report the tax in that return; and 
  (b) in any other case, the person shall, on or before the last day of the month following the calendar month in which the tax became payable, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information. 
  (5)  [Repealed, 1993, c. 27, s. 91]  
  
  ### Set-off of refunds or rebates
  
  (6) Where at any time a person files a particular return under this Part in which the person reports an amount (in this subsection referred to as the “remittance amount”) that is required to be remitted under subsection (2) or (2.3) or paid under subsection (2.1) or (4) or Division IV or IV.1 by the person and the person claims a refund or rebate payable to the person at that time under this Part (other than Division III) in the particular return or in another return, or in an application, filed under this Part with the particular return, the person is deemed to have remitted at that time on account of the person’s remittance amount, and the Minister is deemed to have paid at that time on account of the refund or rebate, an amount equal to the lesser of the remittance amount and the amount of the refund or rebate. 
  
  ### Refunds and rebates of another person
  
  (7) A person may, in prescribed circumstances and subject to prescribed conditions and rules, reduce or offset the tax that is required to be remitted under subsection (2) or (2.3) or paid under subsection (2.1) or (4) or Division IV or IV.1 by that person at any time by the amount of any refund or rebate to which another person may at that time be entitled under this Part. 
  
  ### Payment of net tax refund
  
  229 (1) Where a net tax refund payable to a person is claimed in a return filed under this Division by the person, the Minister shall pay the refund to the person with all due dispatch after the return is filed. 
  
  ### Restriction
  
  (2) A net tax refund for a reporting period of a person shall not be paid to the person under subsection (1) at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act and the Select Luxury Items Tax Act have been filed with the Minister.  
  
  ### Restriction
  
  (2.1) The Minister is not required to pay a net tax refund under subsection (1) to a person that is a registrant unless the Minister is satisfied that all information, that is contact information or that is information relating to the identification and business activities of the person, to be given by the person on the application for registration made by the person under section 240 has been provided and is accurate. 
  
  ### Interest on refund
  
  (3) If a net tax refund for a reporting period of a person is paid to the person under subsection (1), interest at the prescribed rate shall be paid to the person on the net tax refund for the period beginning on the day that is 30 days after the later of the day the return in which the refund is claimed is filed with the Minister and the day following the last day of the reporting period and ending on the day the refund is paid. 
  (4)  [Repealed, 2006, c. 4, s. 139]  
  
  ### Refund of payment
  
  230 (1) Where a person has paid instalments or interim net tax for a reporting period of the person, or any other amounts on account of the person’s net tax for the period, that exceed the amount of the net tax remittable by the person for the period and the person claims a refund of the excess in a return (other than an interim return) for the period filed under this Division by the person, the Minister shall refund the excess to the person with all due dispatch after the return is filed. 
  
  ### Restriction
  
  (2) An amount paid on account of net tax for a reporting period of a person shall not be refunded to the person under subsection (1) at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act and the Select Luxury Items Tax Act have been filed with the Minister.  
  
  ### Interest on refund
  
  (3) If a refund of an amount that was paid on account of net tax for a reporting period of a person is paid to the person under subsection (1), interest at the prescribed rate shall be paid to the person on the refund for the period beginning on the day that is 30 days after the later of the day the return for the reporting period is filed with the Minister and the day following the last day of the reporting period and ending on the day the refund is paid. 
  (4)  [Repealed, 2006, c. 4, s. 140]  
  
  ### Overpayment of refund or interest
  
  230.1 Where an amount is paid to, or applied to a liability of, a person as a refund, or as interest, under this Division and the person is not entitled to the refund or interest, as the case may be, or the amount paid or applied exceeds the refund or interest, as the case may be, to which the person is entitled, the person shall pay to the Receiver General an amount equal to the refund, interest or excess, as the case may be, on the day the refund, interest or excess, as the case may be, is paid to, or applied to a liability of, the person. 
  
  ### Definitions
  
  230.2 (1) In this section,  
  *certified institution* has the meaning assigned by section 2 of Part XIV of Schedule III; (institution agréée)   
  *specified property* means goods described in section 1 of Part XIV of Schedule III. (biens déterminés)  
  
  ### Deduction from net tax
  
  (2) Where a registrant is a certified institution in a particular reporting period of the registrant, the registrant may, in determining the net tax for the particular reporting period or for a reporting period that ends within four years after the end of the particular period, deduct 
  (a) the total of all amounts that became collectible, or were collected without having become collectible, by the registrant in the particular period and in 1991 as or on account of tax under Division II in respect of specified property; 
  (b) 75% of the total of all amounts that became collectible, or were collected without having become collectible, by the registrant in the particular period and in 1992 as or on account of tax under Division II in respect of specified property; 
  (c) 50% of the total of all amounts that became collectible, or were collected without having become collectible, by the registrant in the particular period and in 1993 as or on account of tax under Division II in respect of specified property; and 
  (d) 25% of the total of all amounts that became collectible, or were collected without having become collectible, by the registrant in the particular period and in 1994 or 1995 as or on account of tax under Division II in respect of specified property. 
  
  ### Bad debt — deduction from net tax
  
  231 (1) If a supplier has made a taxable supply (other than a zero-rated supply) for consideration to a recipient with whom the supplier was dealing at arm’s length, it is established that all or a part of the total of the consideration and tax payable in respect of the supply has become a bad debt and the supplier at any time writes off the bad debt in the supplier’s books of account, the reporting entity for the supply may, in determining the reporting entity’s net tax for the reporting period that includes that time or for a subsequent reporting period, deduct the amount determined by the formula is the tax in respect of the supply; is the total of the consideration, tax and applicable provincial tax remaining unpaid in respect of the supply that was written off at that time as a bad debt; and is the total of the consideration, tax and applicable provincial tax in respect of the supply. 
  
  ### Reporting and remittance conditions
  
  (1.1) A reporting entity is not entitled to deduct an amount under subsection (1) in respect of a supply unless 
  (a) the tax collectible in respect of the supply is included in determining the amount of net tax reported in the reporting entity’s return under this Division for the reporting period in which the tax became collectible; and 
  (b) all net tax remittable, if any, as reported in that return is remitted. 
  (2)  [Repealed, 2000, c. 30, s. 58]  
  
  ### Recovery of bad debt
  
  (3) If all or part of a bad debt in respect of which a person has made a deduction under this section is recovered at any time, the person shall, in determining the person’s net tax for the reporting period that includes that time, add the amount determined by the formula is the amount of the bad debt recovered at that time; is the tax in respect of the supply to which the bad debt relates; and is the total of the consideration, tax and applicable provincial tax in respect of the supply. 
  
  ### Limitation period
  
  (4) A person may not claim a deduction under this section in respect of a bad debt relating to a supply unless the deduction is claimed in a return under this Division filed within four years after the day on or before which a return of the person was required to be filed for the reporting period in which the supplier has written off the bad debt in its books of account. 
  
  ### Definitions
  
  (5) The following definitions apply in this section.  
  *applicable provincial tax*, in respect of a supply, means any amount that can reasonably be attributed to a tax, duty or fee imposed under an Act of the legislature of a province in respect of the supply that is a prescribed tax, duty or fee for the purposes of section 154. (taxe provinciale applicable)   
  *reporting entity* for a supply means  
  (a) if an election has been made under subsection 177(1.1) in respect of the supply, the person who is required, under that subsection, to include the tax collectible in respect of the supply in determining the person’s net tax; and 
  (b) in any other case, the supplier. ( déclarant)  
  
  ### No adjustment of provincial component of tax
  
  231.1 The amount of tax under subsection 165(2) in respect of a supply that is equal to the amount in respect of the supply that may be deducted under subsection 234(3) by a person shall not be included in determining the amount that may be deducted or that is required to be added, as the case may be, under section 231 or 232 in determining the net tax of the person for any reporting period of the person. 
  
  ### Refund or adjustment of tax
  
  232 (1) Where a particular person has charged to, or collected from, another person an amount as or on account of tax under Division II in excess of the tax under that Division that was collectible by the particular person from the other person, the particular person may, within two years after the day the amount was so charged or collected, 
  (a) where the excess amount was charged but not collected, adjust the amount of tax charged; and 
  (b) where the excess amount was collected, refund or credit the excess amount to that other person. 
  
  ### Adjustment
  
  (2) Where a particular person has charged to, or collected from, another person tax under Division II calculated on the consideration or a part thereof for a supply and, for any reason, the consideration or part is subsequently reduced, the particular person may, in or within four years after the end of the reporting period of the particular person in which the consideration was so reduced, 
  (a) where tax calculated on the consideration or part was charged but not collected, adjust the amount of tax charged by subtracting the portion of the tax that was calculated on the amount by which the consideration or part was so reduced; and 
  (b) where the tax calculated on the consideration or part was collected, refund or credit to that other person the portion of the tax that was calculated on the amount by which the consideration or part was so reduced. 
  
  ### Credit or debit notes
  
  (3) Where a particular person adjusts, refunds or credits an amount in favour of, or to, another person in accordance with subsection (1) or (2), the following rules apply: 
  (a) the particular person shall, within a reasonable time, issue to the other person a credit note, containing prescribed information, for the amount of the adjustment, refund or credit, unless the other person issues a debit note, containing prescribed information, for the amount; 
  (b) the amount may be deducted in determining the net tax of the particular person for the reporting period of the particular person in which the credit note is issued to the other person or the debit note is received by the particular person, to the extent that the amount has been included in determining the net tax for the reporting period or a preceding reporting period of the particular person; 
  (c) the amount shall be added in determining the net tax of the other person for the reporting period of the other person in which the debit note is issued to the particular person or the credit note is received by the other person, to the extent that the amount has been included in determining an input tax credit claimed by the other person in a return filed for a preceding reporting period of the other person; and 
  (d) if all or part of the amount has been included in determining a rebate under Division VI paid to, or applied to a liability of, the other person before the particular day on which the credit note is received, or the debit note is issued, by the other person and the rebate so paid or applied exceeds the rebate to which the other person would have been entitled if the amount adjusted, refunded or credited by the particular person had never been charged to or collected from the other person, the other person shall pay to the Receiver General under section 264 the excess as if it were an excess amount of that rebate paid to the other person 
  (i) if the other person is a registrant, on the day on or before which the other person’s return for the reporting period that includes the particular day is required to be filed, and 
  (ii) in any other case, on the last day of the calendar month immediately following the calendar month that includes the particular day. 
  
  ### Application
  
  (4) This section does not apply in circumstances in which section 161 or 176 applies. 
  
  ### Definitions
  
  232.01 (1) In this section and in section 232.02, 
  (a)  employer resource and specified resource have the same meanings as in section 172.1;  
  (b)  claim period has the meaning assigned by subsection 259(1); and  
  (c)  eligible amount, non-qualifying pension entity, pension rebate amount, provincial pension rebate amount, qualifying employer and qualifying pension entity have the same meanings as in section 261.01.  
  
  ###  Total tax amount 
  
  (2) In this section, 
  *total tax amount* of a tax adjustment note issued under subsection (3) means the total of the federal component amount and the provincial component amount of the tax adjustment note.  
  
  ### Tax adjustment note — subsections 172.1(5) and (5.1)
  
  (3) A person may, on a particular day, issue to a pension entity of a pension plan a note (in this section referred to as a “tax adjustment note”) in respect of all or part of a specified resource, specifying an amount determined in accordance with paragraph (4)(a) (in this section referred to as the “federal component amount” of the tax adjustment note) and an amount determined in accordance with paragraph (4)(b) (in this section referred to as the “provincial component amount” of the tax adjustment note), if 
  (a) the person is deemed under paragraph 172.1(5)(b) or (5.1)(b) to have collected tax, on or before the particular day, in respect of a taxable supply of the specified resource or part deemed to have been made by the person under paragraph 172.1(5)(a) or (5.1)(a); 
  (b) a supply of the specified resource or part is deemed to have been received by the pension entity under subparagraph 172.1(5)(d)(i) or (5.1)(d)(i) and tax in respect of that supply is deemed to have been paid under subparagraph 172.1(5)(d)(ii) or (5.1)(d)(ii) by the pension entity; and 
  (c) an amount of tax becomes payable, or is paid without having become payable, on or before the particular day to the person (otherwise than by the operation of section 172.1) in respect of a taxable supply of the specified resource or part 
  (i) by the pension entity, if the taxable supply referred to in paragraph (a) is deemed to have been made under paragraph 172.1(5)(a), or 
  (ii) by a master pension entity of the pension plan, if the taxable supply referred to in paragraph (a) is deemed to have been made under paragraph 172.1(5.1)(a). 
  
  ### Federal and provincial component amounts
  
  (4) For a tax adjustment note issued under subsection (3) on a particular day in respect of a specified resource or part, 
  (a) the federal component amount shall not exceed the amount determined by the formula is 
  (i) if the taxable supply referred to in paragraph (3)(a) is deemed to have been made under paragraph 172.1(5)(a), the lesser of 
  (A) the amount determined for A in paragraph 172.1(5)(c) in respect of the specified resource or part, and 
  (B) the total of all amounts, each of which is an amount of tax under subsection 165(1) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the pension entity in respect of a taxable supply of the specified resource or part on or before the particular day, and 
  (ii) if the taxable supply referred to in paragraph (3)(a) is deemed to have been made under paragraph 172.1(5.1)(a), the lesser of 
  (A) the amount determined for the pension plan under the description of A in paragraph 172.1(5.1)(c) in respect of the specified resource or part, and 
  (B) the amount determined by the formula is the total of all amounts, each of which is an amount of tax under subsection 165(1) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the master pension entity referred to in subparagraph (3)(c)(ii) in respect of a taxable supply of the specified resource or part on or before the particular day, and is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes the particular day, and is the total of all amounts, each of which is the federal component amount of another tax adjustment note issued under subsection (3) on or before the particular day in respect of the specified resource or part; and 
  (b) the provincial component amount shall not exceed the amount determined by the formula is 
  (i) if the taxable supply referred to in paragraph (3)(a) is deemed to have been made under paragraph 172.1(5)(a), the lesser of 
  (A) the amount determined for B in paragraph 172.1(5)(c) in respect of the specified resource or part, and 
  (B) the total of all amounts, each of which is an amount of tax under subsection 165(2) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the pension entity in respect of a taxable supply of the specified resource or part on or before the particular day, and 
  (ii) if the taxable supply referred to in paragraph (3)(a) is deemed to have been made under paragraph 172.1(5.1)(a), the lesser of 
  (A) the amount determined for the pension plan under the description of B in paragraph 172.1(5.1)(c) in respect of the specified resource or part, and 
  (B) the amount determined by the formula and is the total of all amounts, each of which is an amount of tax under subsection 165(2) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the master pension entity referred to in subparagraph (3)(c)(ii) in respect of a taxable supply of the specified resource or part on or before the particular day, and is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes the particular day, and is the total of all amounts, each of which is the provincial component amount of another tax adjustment note issued under subsection (3) on or before the particular day in respect of the specified resource or part. 
  
  ### Effect of tax adjustment note
  
  (5) If a person issues a tax adjustment note to a pension entity under subsection (3) in respect of all or part of a specified resource, a supply of the specified resource or part is deemed to have been received by the pension entity under subparagraph 172.1(5)(d)(i) or (5.1)(d)(i) and tax (in this subsection referred to as “deemed tax”) in respect of that supply is deemed to have been paid on a particular day under subparagraph 172.1(5)(d)(ii) or (5.1)(d)(ii) or paragraph 172.1(8.01)(b) by the pension entity, the following rules apply: 
  (a) the total tax amount of the tax adjustment note may be deducted in determining the net tax of the person for its reporting period that includes the day on which the tax adjustment note is issued; 
  (b) the pension entity shall add, in determining its net tax for its reporting period that includes the day on which the tax adjustment note is issued, the amount determined by the formula is the total of all input tax credits that the pension entity is entitled to claim in respect of the deemed tax, is 
  (i) if the pension entity was a selected listed financial institution on the particular day, the federal component amount of the tax adjustment note, and 
  (ii) in any other case, the total tax amount of the tax adjustment note, and is the amount of the deemed tax; 
  (c) if any part of the amount of the deemed tax is included in the determination of the pension rebate amount of the pension entity for a particular claim period of the pension entity, the pension entity shall pay to the Receiver General — on or before the day that is the later of the day on which the application for the rebate is filed and the day that is the last day of its claim period that immediately follows its claim period that includes the day on which the tax adjustment note is issued — the amount determined by the formula is that part of the amount of the deemed tax, is 33%, is 
  (i) if the pension entity was a selected listed financial institution on the particular day, the federal component amount of the tax adjustment note, and 
  (ii) in any other case, the total tax amount of the tax adjustment note, is the amount of the deemed tax, is the amount of the rebate determined for the pension entity under subsection 261.01(2) for the particular claim period, and is the pension rebate amount of the pension entity for the particular claim period; and 
  (d) if any part of the amount of the deemed tax is included in the determination of the pension rebate amount of the pension entity for a claim period of the pension entity and if the pension entity makes an election for the claim period under any of subsections 261.01(5), (6) or (9) jointly with all participating employers of the pension plan that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan, each of those participating employers shall add, in determining its net tax for its reporting period that includes the day that is the later of the day on which the tax adjustment note is issued and the day on which the election is filed with the Minister, the amount determined by the formula is that part of the amount of the deemed tax, is 33%, is 
  (i) if the pension entity was a selected listed financial institution on the particular day, the federal component amount of the tax adjustment note, and 
  (ii) in any other case, the total tax amount of the tax adjustment note, is the amount of the deemed tax, is the amount of the deduction determined for the participating employer under subsection 261.01(5), paragraph 261.01(6)(b) or subsection 261.01(9), as the case may be, for the claim period, and is the pension rebate amount of the pension entity for the claim period. 
  
  ### Prescribed form and manner
  
  (6) A tax adjustment note issued under subsection (3) shall be issued in prescribed form containing prescribed information and in a manner satisfactory to the Minister. 
  
  ### Notification
  
  (7) If a tax adjustment note is issued under subsection (3) to a pension entity of a pension plan and, as a consequence of that issuance, paragraph (5)(d) applies to a participating employer of the pension plan, the pension entity shall, in prescribed form containing prescribed information and in a manner satisfactory to the Minister, forthwith notify the participating employer of that issuance. 
  
  ### Joint and several liability
  
  (8) If a participating employer of a pension plan is required to add an amount to its net tax under paragraph (5)(d) as a consequence of the issuance of a tax adjustment note under subsection (3) to a pension entity of the pension plan, the participating employer and the pension entity are jointly and severally, or solidarily, liable to pay the amount to the Receiver General. 
  
  ### Assessment
  
  (9) The Minister may assess a person for any amount for which the person is liable under subsection (8) and, if the Minister sends a notice of assessment, sections 296 to 311 apply, with such modifications as the circumstances require. 
  
  ### Liability where participating employer ceases to exist
  
  (10) If a participating employer of a pension plan has ceased to exist on or before the day on which a tax adjustment note is issued under subsection (3) to a pension entity of the pension plan and the participating employer would have been required, had it not ceased to exist, to add an amount to its net tax under paragraph (5)(d) as a consequence of that issuance, the pension entity shall pay the amount to the Receiver General on or before the last day of its claim period that immediately follows its claim period that includes the day on which the tax adjustment note is issued. 
  
  ### Requirement to maintain records
  
  (11) Despite section 286, every person that issues a tax adjustment note under subsection (3) shall maintain, for a period of six years from the day on which the tax adjustment note was issued, evidence satisfactory to the Minister that the person was entitled to issue the tax adjustment note for the amount for which it was issued. 
  
  ###  
  *Total tax amount* 
  
  232.02 (1) In this section, 
  *total tax amount* of a tax adjustment note issued under subsection (2) means the total of the federal component amount and the provincial component amount of the tax adjustment note.  
  
  ### Tax adjustment note — subsections 172.1(6) and (6.1)
  
  (2) A person may, on a particular day, issue to a pension entity of a pension plan a note (in this section referred to as a “tax adjustment note“) in respect of employer resources consumed or used for the purpose of making a supply (in this section referred to as the “actual pension supply”) of property or a service to the pension entity or to a master pension entity of the pension plan, specifying an amount determined in accordance with paragraph (3)(a) (in this section referred to as the “federal component amount” of the tax adjustment note) and an amount determined in accordance with paragraph (3)(b) (in this section referred to as the “provincial component amount” of the tax adjustment note), if 
  (a) the person is deemed under paragraph 172.1(6)(b) or (6.1)(b) to have collected tax, on or before the particular day, in respect of one or more taxable supplies, deemed to have been made by the person under paragraph 172.1(6)(a) or (6.1)(a), of the employer resources; 
  (b) a supply of each of those employer resources is deemed to have been received by the pension entity under subparagraph 172.1(6)(d)(i) or (6.1)(d)(i) and tax in respect of each of those supplies is deemed to have been paid under subparagraph 172.1(6)(d)(ii) or (6.1)(d)(ii) by the pension entity; and 
  (c) an amount of tax becomes payable, or is paid without having become payable, on or before the particular day, to the person (otherwise than by the operation of section 172.1) in respect of the actual pension supply 
  (i) by the pension entity, if the taxable supplies referred to in paragraph (a) are deemed to have been made under paragraph 172.1(6)(a), or, 
  (ii) by the master pension entity, if the taxable supplies referred to in paragraph (a) are deemed to have been made under paragraph 172.1(6.1)(a). 
  
  ### Federal and provincial component amounts
  
  (3) For a tax adjustment note issued under subsection (2) on a particular day in respect of employer resources consumed or used for the purpose of making an actual pension supply, 
  (a) the federal component amount shall not exceed the amount determined by the formula is 
  (i) if the taxable supplies referred to in paragraph (2)(a) are deemed to have been made under paragraph 172.1(6)(a), the lesser of 
  (A) the total of all amounts, each of which is an amount determined for A in paragraph 172.1(6)(c) in determining an amount of tax that is in respect of one of those employer resources and that is deemed under paragraph 172.1(6)(b) to have become payable and to have been collected on or before the particular day, and 
  (B) the total of all amounts, each of which is an amount of tax under subsection 165(1) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the pension entity in respect of the actual pension supply on or before the particular day, and 
  (ii) if the taxable supplies referred to in paragraph (2)(a) are deemed to have been made under paragraph 172.1(6.1)(a), the lesser of 
  (A) the total of all amounts, each of which is an amount determined for the pension plan under the description of A in paragraph 172.1(6.1)(c) in determining an amount of tax that is in respect of one of those employer resources and that is deemed under paragraph 172.1(6.1)(b) to have become payable and to have been collected on or before the particular day, and 
  (B) the amount determined by the formula is the total of all amounts, each of which is an amount of tax under subsection 165(1) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the master pension entity referred to in subsection (2) in respect of the actual pension supply on or before the particular day, and is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes the particular day, and is the total of all amounts, each of which is the federal component amount of another tax adjustment note issued under subsection (2) on or before the particular day in respect of employer resources consumed or used for the purpose of making the actual pension supply; and 
  (b) the provincial component amount shall not exceed the amount determined by the formula is 
  (i) if the taxable supplies referred to in paragraph (2)(a) are deemed to have been made under paragraph 172.1(6)(a), the lesser of 
  (A) the total of all amounts, each of which is an amount determined for B in paragraph 172.1(6)(c) in determining an amount of tax that is in respect of one of those employer resources and that is deemed under paragraph 172.1(6)(b) to have become payable and to have been collected on or before the particular day, and 
  (B) the total of all amounts, each of which is an amount of tax under subsection 165(2) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the pension entity in respect of the actual pension supply on or before the particular day, and 
  (ii) if the taxable supplies referred to in paragraph (2)(a) are deemed to have been made under paragraph 172.1(6.1)(a), the lesser of 
  (A) the total of all amounts, each of which is an amount determined for the pension plan under the description of B in paragraph 172.1(6.1)(c) in determining an amount of tax that is in respect of one of those employer resources and that is deemed under paragraph 172.1(6.1)(b) to have become payable and to have been collected on or before the particular day, and 
  (B) the amount determined by the formula is the total of all amounts, each of which is an amount of tax under subsection 165(2) that became payable, or was paid without having become payable, to the person (otherwise than by the operation of section 172.1) by the master pension entity referred to in subsection (2) in respect of the actual pension supply on or before the particular day, and is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes the particular day, and is the total of all amounts, each of which is the provincial component amount of another tax adjustment note issued under subsection (2) on or before the particular day in respect of employer resources consumed or used for the purpose of making the actual pension supply. 
  
  ### Effect of tax adjustment note
  
  (4) If a person issues a tax adjustment note to a pension entity under subsection (2) in respect of particular employer resources consumed or used for the purpose of making an actual pension supply, a supply of each of those particular employer resources (each of which in this subsection is referred to as a “particular supply”) is deemed to have been received by the pension entity under subparagraph 172.1(6)(d)(i) or (6.1)(d)(i) and tax (in this subsection referred to as “deemed tax”) in respect of each of the particular supplies is deemed to have been paid under subparagraph 172.1(6)(d)(ii) or (6.1)(d)(ii) or paragraph 172.1(8.01)(b) by the pension entity, the following rules apply: 
  (a) the total tax amount of the tax adjustment note may be deducted in determining the net tax of the person for its reporting period that includes the day on which the tax adjustment note is issued; 
  (b) the pension entity shall add, in determining its net tax for its reporting period that includes the day on which the tax adjustment note is issued, the amount determined by the formula is the total of all amounts, each of which is the total of all input tax credits that the pension entity is entitled to claim in respect of deemed tax in respect of a particular supply, is 
  (i) if the pension entity was a selected listed financial institution on the particular day that is the first day on which an amount of deemed tax is deemed to have been paid, the federal component amount of the tax adjustment note, and 
  (ii) in any other case, the total tax amount of the tax adjustment note, and is the total of all amounts, each of which is an amount of deemed tax in respect of a particular supply; 
  (c) for each particular claim period of the pension entity for which any part of an amount of deemed tax in respect of a particular supply is included in the determination of the pension rebate amount of the pension entity, the pension entity shall pay to the Receiver General — on or before the day that is the later of the day on which the application for the rebate is filed and the day that is the last day of its claim period that immediately follows its claim period that includes the day on which the tax adjustment note is issued — the amount determined by the formula is the total of all amounts, each of which is the part of an amount of deemed tax in respect of a particular supply that is an eligible amount of the pension entity for the particular claim period, is 33%, is 
  (i) if the pension entity was a selected listed financial institution on the particular day referred to in paragraph (b), the federal component amount of the tax adjustment note, and 
  (ii) in any other case, the total tax amount of the tax adjustment note, is the total of all amounts, each of which is an amount of deemed tax in respect of a particular supply, is the amount of the rebate determined for the pension entity under subsection 261.01(2) for the particular claim period, and is the pension rebate amount of the pension entity for the particular claim period; and 
  (d) for each claim period of the pension entity for which any part of an amount of deemed tax in respect of a particular supply is included in the determination of the pension rebate amount of the pension entity and for which an election under any of subsections 261.01(5), (6) or (9) is made jointly by the pension entity and all participating employers of the pension plan that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan, each of those participating employers shall add, in determining its net tax for its reporting period that includes the day that is the later of the day on which the tax adjustment note is issued and the day on which the election is filed with the Minister, the amount determined by the formula is the total of all amounts, each of which is the part of an amount of deemed tax in respect of a particular supply that is an eligible amount of the pension entity for the claim period, is 33%, is 
  (i) if the pension entity was a selected listed financial institution on the particular day referred to in paragraph (b), the federal component amount of the tax adjustment note, and 
  (ii) in any other case, the total tax amount of the tax adjustment note, is the total of all amounts, each of which is an amount of deemed tax in respect of a particular supply, is the amount of the deduction determined for the participating employer under subsection 261.01(5), paragraph 261.01(6)(b) or subsection 261.01(9), as the case may be, for the claim period, and is the pension rebate amount of the pension entity for the claim period. 
  
  ### Prescribed form and manner
  
  (5) A tax adjustment note issued under subsection (2) shall be issued in prescribed form containing prescribed information and in a manner satisfactory to the Minister. 
  
  ### Notification
  
  (6) If a tax adjustment note is issued under subsection (2) to a pension entity of a pension plan and, as a consequence of that issuance, paragraph (4)(d) applies to a participating employer of the pension plan, the pension entity shall, in prescribed form containing prescribed information and in a manner satisfactory to the Minister, forthwith notify the participating employer of that issuance. 
  
  ### Joint and several liability
  
  (7) If a participating employer of a pension plan is required to add an amount to its net tax under paragraph (4)(d) as a consequence of the issuance of a tax adjustment note under subsection (2) to a pension entity of the pension plan, the participating employer and the pension entity are jointly and severally, or solidarily, liable to pay the amount to the Receiver General. 
  
  ### Assessment
  
  (8) The Minister may assess a person for any amount for which the person is liable under subsection (7) and, if the Minister sends a notice of assessment, sections 296 to 311 apply, with such modifications as the circumstances require. 
  
  ### Liability where participating employer ceases to exist
  
  (9) If a participating employer of a pension plan has ceased to exist on or before the day on which a tax adjustment note is issued under subsection (2) to a pension entity of the pension plan and the participating employer would have been required, had it not ceased to exist, to add an amount to its net tax under paragraph (4)(d) as a consequence of that issuance, the pension entity shall pay the amount to the Receiver General on or before the last day of its claim period that immediately follows its claim period that includes the day on which the tax adjustment note is issued. 
  
  ### Requirement to maintain records
  
  (10) Despite section 286, every person that issues a tax adjustment note under subsection (2) shall maintain, for a period of six years from the day on which the tax adjustment note was issued, evidence satisfactory to the Minister that the person was entitled to issue the tax adjustment note for the amount for which it was issued. 
  
  ### Promotional allowances
  
  232.1 For the purposes of this Part, if 
  (a) a particular registrant acquires particular tangible personal property exclusively for supply by way of sale for a price in money in the course of commercial activities of the particular registrant, and 
  (b) another registrant, who has made taxable supplies of the particular property by way of sale, whether to the particular registrant or another person, 
  (i) pays to or credits in favour of the particular registrant, or 
  (ii) allows as a discount on or credit against the price of any property or service (in this section referred to as the “discounted property or service”) supplied by the other registrant to the particular registrant, an amount in return for the promotion of the particular property by the particular registrant, the following rules apply: 
  (c) the amount is deemed not to be consideration for a supply by the particular registrant to the other registrant, 
  (d) where the amount is allowed as a discount on or credit against the price of the discounted property or service, 
  (i) if the other registrant has previously charged to or collected from the particular registrant tax under Division II calculated on the consideration or part of it for the supply of the discounted property or service, the amount of the discount or credit is deemed to be a reduction in the consideration for that supply for the purposes of subsection 232(2), and 
  (ii) in any other case, the value of the consideration for the supply of the discounted property or service is deemed to be the amount, if any, by which the value of the consideration as otherwise determined for the purposes of this Part exceeds the amount of the discount or credit, and 
  (e) if the amount is not allowed as a discount on or credit against the price of any discounted property or service supplied to the particular registrant, the amount is deemed to be a rebate in respect of the particular property for the purposes of section 181.1. 
  
  ### Meaning of 
  *specified amount* 
  
  233 (1) In this section, 
  *specified amount*, in respect of a patronage dividend paid by a person in a fiscal year of the person, means the amount determined by the formula  is the amount of the patronage dividend; is the total value of all consideration that became due, or was paid without having become due, in the immediately preceding fiscal year of the person while the person was a registrant for taxable supplies (other than supplies by way of sale of capital property of the person and zero-rated supplies) made in Canada by the person; is the total value of all consideration that became due, or was paid without having become due, in the immediately preceding fiscal year of the person for taxable supplies (other than supplies by way of sale of capital property of the person) made in Canada by the person; and is the total of all tax that became payable, or was paid without having become payable, in the immediately preceding fiscal year of the person in respect of taxable supplies (other than supplies by way of sale of capital property of the person) made by the person. 
  
  ### Patronage dividends
  
  (2) For the purposes of this Part, if, at any time in a fiscal year of a particular person, the particular person pays to another person a patronage dividend all or part of which is in respect of supplies (in this subsection referred to as “specified supplies”) that are taxable supplies (other than zero-rated supplies) made by the particular person to the other person, the particular person is deemed 
  (a) to have reduced, at that time, 
  (i) the total consideration for all supplies (in this subparagraph referred to as the “participating province’s supplies”) that are specified supplies made in a participating province and to which subsection 165(2) applied by the amount determined by the formula is the total of 100%, the rate set out in subsection 165(1) and the tax rate for that province, and is 
  (A) if the particular person has made an election under this subsection that is in effect for that fiscal year, the part of the dividend that is in respect of the participating province’s supplies, and 
  (B) in any other case, the amount determined by the formula is the portion of the total of the values determined, in computing the specified amount in respect of the dividend, for B and D in subsection (1) that is attributable to supplies made in that province, is the total referred to in the description of C, and is the specified amount in respect of the dividend, and 
  (ii) the total consideration for all supplies (in this subparagraph referred to as the “non-participating provinces’ supplies”) that are specified supplies to which subsection 165(2) did not apply by the amount determined by the formula is the total of 100% and the rate set out in subsection 165(1), is 
  (A) if the particular person has made an election under this subsection that is in effect for that fiscal year, the part of the dividend that is in respect of the non-participating province’s supplies, and 
  (B) in any other case, the amount determined by the formula is the portion of the total of the values determined, in computing the specified amount in respect of the dividend, for B and D in subsection (1) that is attributable to supplies made in non-participating provinces, is the total referred to in the description of C, and is the specified amount in respect of the dividend; and 
  (b) to have made, at that time, the appropriate adjustment, refund or credit in favour of, or to, the other person under subsection 232(2). 
  
  ### Exception
  
  (3) Subsection (2) does not apply to a patronage dividend paid by a person in a fiscal year of the person for which an election made by the person under this subsection is in effect, in which event the dividend shall be deemed not to be a reduction of the consideration for any supplies. 
  
  ### Time for election
  
  (4) An election made under subsection (2) or (3) by a person shall be made before any patronage dividend is paid by the person in the fiscal year of the person in which the election is to take effect. 
  
  ### Revocation of election
  
  (5) An election made under subsection (2) or (3) by a person may be revoked by the person in a fiscal year of the person if the revocation is to take effect before any patronage dividend is paid by the person in that year. 
  
  ### Date of payment of dividend
  
  (6) For the purposes of this section, a dividend shall be deemed to be paid on the day that it is declared. 
  
  ### Deduction for rebate
  
  234 (1) If, in the circumstances described in subsection 252.41(2), 254(4), 254.1(4) or 258.1(3) or in circumstances prescribed for the purposes of subsection 256.21(3), a particular person pays to or credits in favour of another person an amount on account of a rebate and transmits the application of the other person for the rebate to the Minister in accordance with subsection 252.41(2), 254(5), 254.1(5), 256.21(4) or 258.1(4), as the case requires, the particular person may deduct the amount in determining the net tax of the particular person for the reporting period in which the amount is paid or credited. 
  
  ### Deduction for rebate in respect of supplies to non-residents
  
  (2) If, in the circumstances described in subsection 252(3) or 252.4(2) or (4), a registrant pays to, or credits in favour of, a person an amount on account of a rebate referred to therein, the registrant may deduct the amount in determining the net tax of the registrant for 
  (a) the reporting period of the registrant that includes the particular day that is the later of the last day on which any tax to which the rebate relates became payable and the day on which the amount is paid or credited; or 
  (b) any subsequent reporting period of the registrant for which a return is filed within one year after the particular day. 
  
  ### Late filing of information and adjustment for failure to file
  
  (2.1) If a registrant is required to file prescribed information in accordance with subsection 252.4(5) in respect of an amount claimed as a deduction under subsection (2) in respect of an amount paid or credited on account of a rebate, 
  (a) in the case where the registrant files the information on a day (in this subsection referred to as the “filing day”) that is after the day on or before which the registrant is required to file its return under Division V for the reporting period in which the registrant claimed the deduction under subsection (2) in respect of the amount paid or credited and before the particular day that is the earlier of 
  (i) the day that is four years after the day on or before which the registrant was required under section 238 to file a return for the period, and 
  (ii) the day stipulated by the Minister in a demand to file the information, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the filing day, add an amount equal to interest, at the prescribed rate, on the amount claimed as a deduction under subsection (2) computed for the period beginning on the day on or before which the registrant was required to file the prescribed information under subsection 252.4(5) and ending on the filing day; and 
  (b) in the case where the registrant fails to file the information before the particular day, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the particular day, add an amount equal to the total of the amount claimed as a deduction under subsection (2) and interest, at the prescribed rate, on that amount computed for the period beginning on the day on or before which the registrant was required to file the information under subsection 252.4(5) and ending on the day on or before which the registrant is required under section 238 to file a return for the reporting period of the registrant that includes the particular day. 
  
  ### Deduction in respect of supply in a participating province
  
  (3) Where a registrant makes a supply in a participating province and the registrant pays to, or credits in favour of, the recipient of the supply a prescribed amount in respect of the supply, the registrant may deduct that amount in determining the net tax of the registrant for the reporting period of the registrant in which the amount was paid or credited. 
  
  ### Restriction on input tax credits etc. for amounts paid or credited
  
  (4) No amount of tax under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 shall be included in determining any input tax credit, rebate, refund or remission under this or any other Act of Parliament where the amount is prescribed for the purposes of subsection (3). 
  
  ### Deduction for rebate payable to segregated fund
  
  (5) Where, in the circumstances described in subsection 261.31(5), an insurer pays to, or credits in favour of, a segregated fund of the insurer an amount on account of a rebate referred to therein and transmits the application of the segregated fund for the rebate to the Minister in accordance with subsection 261.31(6), the insurer may deduct the amount in determining the net tax of the insurer for the reporting period of the insurer in which the amount was paid or credited. 
  
  ### Net tax where passenger vehicle leased
  
  235 (1) If, in a taxation year of a registrant, tax becomes payable, or is paid without having become payable, by the registrant in respect of supplies of a passenger vehicle made under a lease and 
  (a) the total of the consideration for the supplies that would be deductible in computing the registrant’s income for the year for the purposes of the Income Tax Act, if the registrant were a taxpayer under that Act and that Act were read without reference to section 67.3,  exceeds 
  (b) the amount in respect of that consideration that would be deductible in computing the registrant’s income for the year for the purposes of the Income Tax Act, if the registrant were a taxpayer under that Act and the formulae in paragraph 7307(1)(b), subsection 7307(1.1) and paragraph 7307(3)(b) of the Income Tax Regulations were read without reference to the description of B,  there shall be added in determining the net tax for the appropriate reporting period of the registrant an amount determined by the formula is the ratio obtained by dividing that excess by that consideration, is 
  (a) if the registrant is a selected listed financial institution in the appropriate reporting period, the tax paid or payable under any of subsection 165(1) and sections 212 and 218 in respect of that consideration (other than tax that, by reason of section 170, may not be included in determining an input tax credit of the registrant), and 
  (b) in any other case, the tax paid or payable in respect of that consideration (other than tax that, by reason of section 170, may not be included in determining an input tax credit of the registrant), and is the proportion of the total use of the vehicle that is use in commercial activities of the registrant. 
  
  ### Appropriate reporting periods
  
  (2) For the purposes of subsection (1), the appropriate reporting period of a registrant in respect of a supply by way of lease to the registrant of a passenger vehicle in a taxation year of the registrant is 
  (a) where the registrant ceases in or at the end of that taxation year to be registered under Subdivision D, the last reporting period of the registrant in that year; 
  (b) where the reporting period of the registrant in that taxation year is that taxation year, that reporting period; and 
  (c) in any other case, the reporting period of the registrant that begins immediately after that taxation year. 
  
  ### Food, beverages and entertainment
  
  236 (1) If 
  (a) an amount (in this subsection referred to as the “composite amount”) 
  (i) becomes due from a person, or is a payment made by a person without having become due, in respect of a supply of property or a service made to the person, or 
  (ii) is paid by a person as an allowance or reimbursement in respect of which the person is deemed under section 174 or 175 to have received a supply of property or a service, 
  (b) one or both of the following situations apply: 
  (i) subsection 67.1(1) of the Income Tax Act applies, or would apply, if the person were a taxpayer under that Act, to all of the composite amount or that part of it that is, for the purposes of that Act, an amount (other than an amount to which subsection 67.1(1.1) of that Act applies) paid or payable in respect of the human consumption of food or beverages or the enjoyment of entertainment and section 67.1 of that Act deems the composite amount or that part to be 50% of a particular amount,  
  (ii) subsection 67.1(1.1) of that Act applies, or would apply, if the person were a taxpayer under that Act, to all of the composite amount or that part of it that is, for the purposes of that Act, an amount paid or payable in respect of the consumption of food or beverages by a long-haul truck driver during the driver’s eligible travel period (as those terms are defined in section 67.1 of that Act), and section 67.1 of that Act deems the composite amount or that part to be a percentage of a specified particular amount, and 
  (c) tax included in the composite amount or deemed under section 174 or 175 to have been paid by the person is included in determining an input tax credit in respect of the property or service that is claimed by the person in a return for a reporting period in a fiscal year of the person, the person shall, in determining the net tax for the appropriate reporting period of the person, add the amount determined by the formula is 
  (i) in the case where subparagraph (b)(i) applies, the particular amount, and 
  (ii) in any other case, zero, is the composite amount, is the input tax credit, and is 
  (i) in the case where subparagraph (b)(ii) applies, the specified particular amount, and 
  (ii) in any other case, zero. 
  
  ### Appropriate reporting period
  
  (1.1) Where a person is required under subsection (1) to add, in determining the person’s net tax, an amount determined by reference to an input tax credit claimed by the person in a return for a reporting period in a fiscal year of the person, for the purposes of that subsection, the appropriate reporting period of the person is 
  (a) if the person ceases to be registered under Subdivision D in a reporting period ending in that fiscal year, that reporting period; 
  (b) if that fiscal year is the person’s reporting period, that reporting period; and 
  (c) in any other case, the person’s reporting period that begins immediately after that fiscal year. 
  
  ### Unreasonable amounts
  
  (1.2) If tax calculated on an amount (in this subsection referred to as the “unreasonable consideration”) that is all or part of the total amount that becomes due from a person, or is paid by a person without having become due, in respect of a supply of property or a service made to the person is, because of subsection 170(2), not to be included in determining an input tax credit, for the purposes of subsection (1), that total amount is deemed to be the amount, if any, by which it exceeds the total of the unreasonable consideration and all gratuities, and taxes, duties or fees under this Part or under an Act of the legislature of a province, that are paid or payable in respect of the unreasonable consideration. 
  
  ### Exception
  
  (2) Subsection (1) does not apply to a charity or a public institution. 
  
  ### Definitions
  
  236.01 (1) The following definitions apply in this section.  
  *large business* means a prescribed person or a person of a prescribed class. (grande entreprise)   
  *specified property or service* means a prescribed property or service, or property or a service of a prescribed class. (bien ou service déterminé)   
  *specified provincial input tax credit* means  
  (a) the portion of an input tax credit of a large business in respect of a specified property or service that is attributable to tax under subsection 165(2), section 212.1 or 218.1 or Division IV.1 in respect of the acquisition, importation or bringing into a participating province of the specified property or service; and 
  (b) a prescribed amount in respect of an input tax credit of a large business that is attributable to tax under subsection 165(2), section 212.1 or 218.1 or Division IV.1 or in respect of an amount that would be such an input tax credit if prescribed conditions were satisfied in prescribed circumstances. ( crédit de taxe sur les intrants provincial déterminé)  
  
  ### Recapture of specified provincial input tax credits
  
  (2) If a sales tax harmonization agreement with the government of a participating province relating to the new harmonized value-added tax system allows for the recapture of input tax credits, in determining the net tax for the reporting period of a large business that includes a prescribed time, the large business shall add all or part, as determined in prescribed manner, of a specified provincial input tax credit of the large business. 
  
  ### Deduction of amounts
  
  (3) If a sales tax harmonization agreement with the government of a participating province relating to the new harmonized value-added tax system allows for the recapture of input tax credits, in determining the net tax for the reporting period of a large business that includes a prescribed time, the large business may deduct in prescribed circumstances an amount determined in prescribed manner. 
  
  ### Simplified method
  
  (4) The Governor in Council may make regulations respecting 
  (a) the methods that may be used by a large business to determine the amount that is required to be added under subsection (2) to, or that may be deducted under subsection (3) from, the net tax for a reporting period of the large business, including any conditions for the use of those methods; 
  (b) the reporting and accounting for such an amount; and 
  (c) compliance measures, including penalties, or other measures and requirements in respect of such an amount. 
  
  ### Adjustment if property not exported or supplied
  
  236.1 If a registrant has received a zero-rated supply of a continuous transmission commodity included in section 15.2 of Part V of Schedule VI and the commodity is neither exported, as described in paragraph (a) of that section, nor supplied, as described in paragraph (b) of that section, by the registrant, the registrant shall, in determining the net tax of the registrant for the reporting period that includes the earliest day on which tax, calculated at the rate set out in subsection 165(1), would, in the absence of that section, have become payable in respect of the supply, add an amount equal to interest, at the prescribed rate, on the total amount of tax that would have been payable in respect of the supply if it were not a zero-rated supply, computed for the period beginning on that earliest day and ending on the day on or before which the return under section 238 for that reporting period is required to be filed. 
  
  ### Adjustment if invalid use of export certificate
  
  236.2 (1) If a registrant has received a supply of property (other than a supply that is included in any provision of Schedule VI other than section 1.1 of Part V of that Schedule) from a supplier to whom the registrant has provided an export certificate (within the meaning of section 221.1) for the purpose of that supply and an authorization of the registrant to use the certificate was not in effect at the time the supply was made or the registrant does not export the property in the circumstances described in paragraphs 1(b) to (d) of that Part, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the earliest day on which tax in respect of the supply became payable or would have become payable if the supply were not a zero-rated supply, add an amount equal to interest at the prescribed rate on the total amount of tax in respect of the supply that was payable or would have been payable if the supply were not a zero-rated supply, computed for the period beginning on that earliest day and ending on the day on or before which the return under section 238 for that reporting period is required to be filed. 
  
  ### Adjustment if deemed revocation of export certificate
  
  (2) If a registrant’s authorization to use an export certificate (within the meaning of section 221.1) is deemed to have been revoked under subsection 221.1(6) effective immediately after the last day of a fiscal year of the registrant, the registrant shall, in determining the net tax for the first reporting period of the registrant following that year, add the amount determined by the formula is the total of 
  (a) the product obtained when the rate set out in subsection 165(1) is multiplied by the total of all amounts each of which is consideration paid or payable by the registrant for a supply made in a non-participating province of an item of inventory acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, and 
  (b) the total of all amounts each of which is the product obtained when the consideration paid or payable by the registrant for a supply made in a participating province of an item of inventory acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, is multiplied by the total of the rate set out in subsection 165(1) and the tax rate for that participating province, and is the prescribed rate of interest that is in effect on the last day of that first reporting period following the year. 
  
  ### Adjustment if invalid use of export distribution centre certificate
  
  236.3 (1) If a registrant has received a supply of property (other than a supply that is included in any provision of Schedule VI other than section 1.2 of Part V of that Schedule) from a supplier to whom the registrant has provided an export distribution centre certificate (within the meaning of section 273.1) for the purpose of that supply and an authorization of the registrant to use the certificate was not in effect at the time the supply was made or the property was not acquired by the registrant for use or supply as domestic inventory or as added property (as those expressions are defined in subsection 273.1(1)) in the course of commercial activities of the registrant, the registrant shall, in determining the net tax for the reporting period of the registrant that includes the earliest day on which tax in respect of the supply became payable or would have become payable if the supply were not a zero-rated supply, add an amount equal to interest, at the prescribed rate, on the total amount of tax in respect of the supply that was payable or that would have been payable in respect of the supply if the supply were not a zero-rated supply, computed for the period beginning on that earliest day and ending on the day on or before which the return under section 238 for that reporting period is required to be filed. 
  
  ### Adjustment if export distribution centre conditions not met
  
  (2) If an authorization granted to a registrant under subsection 273.1(7) is in effect at any time in a fiscal year of the registrant and the export revenue percentage of the registrant (as defined in subsection 273.1(1)) for that year is less than 90% or the circumstances described in paragraph 273.1(11)(a) or (b) exist with respect to the year, the registrant shall, in determining the net tax for the first reporting period of the registrant following the year, add the amount determined by the formula is the total of 
  (a) the product obtained when the rate set out in subsection 165(1) is multiplied by the total of all amounts each of which is consideration paid or payable by the registrant for a supply made in a non-participating province of property acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.2 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, 
  (b) the total of all amounts each of which is the product obtained when the consideration paid or payable by the registrant for a supply made in a participating province of property acquired by the registrant in the year that is a zero-rated supply only because it is included in section 1.2 of Part V of Schedule VI, other than a supply in respect of which the registrant is required under subsection (1) to add an amount in determining net tax for any reporting period, is multiplied by the total of the rate set out in subsection 165(1) and the tax rate for that participating province, and 
  (c) the product obtained when the rate set out in subsection 165(1) is multiplied by the total of all amounts each of which is the value that is or would be, but for subsection 215(2), deemed under subsection 215(1) to be the value, for the purposes of Division III, of a good that was imported by the registrant in the year and in respect of which, by reason only of section 11 of Schedule VII, tax under that Division did not apply, and is the prescribed rate of interest that is in effect on the last day of that first reporting period following the year. 
  
  ### Election for residential complex
  
  236.4 (1) A person may make an election in respect of a residential complex, or in respect of an addition to a multiple unit residential complex, for a particular reporting period of the person if 
  (a) the person is the builder of the residential complex or addition; 
  (b) the person is deemed under subsection 191(1), (3) or (4) to have made and received, at a particular time that is on or before February 26, 2008, a taxable supply by way of sale of the residential complex or addition and to have paid as a recipient and to have collected as a supplier a particular amount of tax in respect of that supply; 
  (c) the person has not reported an amount as or on account of tax in respect of the taxable supply in the person’s return under this Division for any reporting period the return for which is filed on or before February 26, 2008 or is required under this Division to be filed on or before a day that is on or before February 26, 2008; 
  (d) the person would be entitled to claim a rebate under subsection 256.2(3) in respect of the residential complex or addition that is determined based on the particular amount of tax if 
  (i) section 256.2 were read without reference to subsection (7), and 
  (ii) the amount determined for B in the first formula in subsection 256.2(3) for a qualifying residential unit, as defined in subsection 256.2(1), that forms part of the residential complex or addition were less than $450,000; 
  (e) the person did not supply to another person by way of sale the residential complex or addition on or before February 26, 2008; 
  (f) the particular reporting period ends on or before February 26, 2010; 
  (g) the election is filed in prescribed form containing prescribed information not later than the day on or before which the return under this Division is required to be filed for the particular reporting period; and 
  (h) the person has not made another election under this subsection in respect of the residential complex or addition. 
  
  ### Adjustment to net tax
  
  (2) If a person makes an election under subsection (1) in respect of a residential complex, or in respect of an addition to a multiple unit residential complex, for a reporting period of the person, the person shall, in determining the net tax for that period, add the positive amount or deduct the negative amount determined by the formula is the particular amount of tax referred to in paragraph (1)(b); is the amount of the rebate that the person would be entitled, if section 256.2 were read without reference to subsection (7), to claim under subsection 256.2(3) in respect of the residential complex or addition that is determined based on the particular amount of tax; and is the amount determined by the formula is the total of all amounts each of which is an input tax credit of the person 
  (i) that is in respect of property or a service acquired, imported or brought into a participating province before the particular time referred to in paragraph (1)(b) for consumption or use for the purpose of making the supply referred to in that paragraph, and 
  (ii) in respect of which the person satisfies the requirements of subsection 169(4) at the time the election under subsection (1) is filed, and is the total of all amounts each of which is an amount included in the determination of C 1, but only to the extent that the amount can reasonably be regarded as an amount that  
  (i) was claimed or included as an input tax credit or deduction in determining the net tax for the reporting period or a preceding reporting period of the person, 
  (ii) has previously been rebated, refunded or remitted to the person, or that the person is entitled to obtain as a rebate, refund or remission, under this or any other Act of Parliament, or 
  (iii) is included in an adjustment, refund or credit for which a credit note referred to in subsection 232(3) has been received by the person or a debit note referred to in that subsection has been issued by the person. 
  
  ### Consequences of election
  
  (3) For the purposes of this Part, if a person makes an election under subsection (1) in respect of a residential complex, or in respect of an addition to a multiple unit residential complex, for a reporting period of the person, the person is deemed 
  (a) to have been deemed to have made and received, at the particular time referred to in paragraph (1)(b), a taxable supply of the residential complex or addition by way of sale and to have paid as a recipient and to have collected as a supplier tax in respect of the supply equal to the particular amount of tax referred to in that paragraph under 
  (i) in the case of a single unit residential complex or a residential condominium unit, subsection 191(1), 
  (ii) in the case of a multiple unit residential complex, subsection 191(3), and 
  (iii) in the case of an addition, subsection 191(4); 
  (b) to have claimed each amount that is included in the determination of C 1 in the second formula in subsection (2) as an input tax credit in determining the net tax for the reporting period, but only to the extent that the amount is not included in the determination of C 2 in the same formula;  
  (c) to have claimed and received a rebate under subsection 256.2(3), in respect of the complex or addition, equal to the amount determined for B in the first formula in subsection (2); and 
  (d) not to be required to include the particular amount of tax deemed to have been collected under paragraph (a) for the purpose of determining the net tax of the person for the reporting period that includes the particular time, other than for the purpose of including the particular amount in the determination of A in the first formula in subsection (2). 
  
  ### Input tax credit
  
  (4) For the purposes of subsection 225(4), if a person makes an election under subsection (1), any input tax credit of the person in respect of the complex or addition that the person is deemed to have received under paragraph (3)(a) is deemed to be an input tax credit of the person for the reporting period of the person that includes February 26, 2008 and not an input tax credit of the person for any other period. 
  
  ### Limitation period if election
  
  (5) If a person makes an election under subsection (1) in respect of a residential complex, or in respect of an addition to a multiple unit residential complex, section 298 applies to any assessment, reassessment or additional assessment of an amount added to, or deducted from, net tax by the person in respect of the residential complex or addition, but the Minister has until the day that is four years after the day on or before which the election under subsection (1) is required to be filed with the Minister to make any assessment, reassessment or additional assessment for the purpose of taking into account any amount that is, or is required to be, added or subtracted in determining the amount determined under the first formula in subsection (2). 
  
  ### Residential complex separate from addition
  
  (6) For the purposes of this section, if a person is the builder of an addition to a residential complex and is eligible to make an election under subsection (1) in respect of the addition or the remainder of the residential complex, the addition and the remainder of the residential complex are each deemed to be a separate property. 
  
  ### First and second variant years
  
  236.5 (1) For the purposes of this section, a fiscal year of a network seller in respect of which an approval granted under 178(5) is in effect is 
  (a) the first variant year of the network seller if the network seller 
  (i) fails to meet the condition referred to in paragraph 178(2)(c) in respect of the fiscal year, and 
  (ii) meets the condition referred to in paragraph 178(2)(c) for each fiscal year of the network seller, in respect of which an approval granted under 178(5) is in effect, preceding the fiscal year; and 
  (b) the second variant year of the network seller if 
  (i) the fiscal year is after the first variant year of the network seller, 
  (ii) the network seller fails to meet the condition referred to in paragraph 178(2)(c) in respect of the fiscal year, and 
  (iii) the network seller meets the condition referred to in paragraph 178(2)(c) for each fiscal year (other than the first variant year) of the network seller, in respect of which an approval granted under 178(5) is in effect, preceding the fiscal year. 
  
  ### Adjustment by network seller if conditions not met
  
  (2) Subject to subsections (3) and (4), if a network seller fails to satisfy any condition referred to in paragraphs 178(2)(a) to (c) for a fiscal year of the network seller in respect of which an approval granted under subsection 178(5) is in effect and, at any time during the fiscal year, a network commission would, if this Part were read without reference to subsection 178(7), become payable by the network seller to a sales representative of the network seller as consideration for a taxable supply (other than a zero-rated supply) made in Canada by the sales representative, the network seller shall, in determining the net tax for the first reporting period of the network seller following the fiscal year, add an amount equal to interest, at the prescribed rate, on the total amount of tax that would be payable in respect of the taxable supply if tax were payable in respect of the taxable supply, computed for the period beginning on the earliest day on which consideration for the taxable supply is paid or becomes due and ending on the day on or before which the network seller is required to file a return for the reporting period that includes that earliest day. 
  
  ### No adjustment for first variant year
  
  (3) In determining the net tax for the first reporting period of a network seller following the first variant year of the network seller, the network seller is not required to add an amount in accordance with subsection (2) if 
  (a) the network seller satisfies the conditions referred to in paragraphs 178(2)(a) and (b) for the first variant year and for each fiscal year, in respect of which an approval granted under subsection 178(5) is in effect, preceding the first variant year; and 
  (b) the network seller would meet the condition referred to in paragraph 178(2)(c) for the first variant year if the reference in that paragraph to “all or substantially all” were read as a reference to “at least 80%”. 
  
  ### No adjustment for second variant year
  
  (4) In determining the net tax for the first reporting period of the network seller following the second variant year of the network seller, the network seller is not required to add an amount in accordance with subsection (2) if 
  (a) the network seller satisfies the conditions referred to in paragraphs 178(2)(a) and (b) for the second variant year and for each fiscal year, in respect of which an approval granted under subsection 178(5) is in effect, preceding the second variant year; 
  (b) the network seller would meet the condition referred to in paragraph 178(2)(c) for each of the first variant year and the second variant year if the reference in that paragraph to “all or substantially all” were read as a reference to “at least 80%”; and 
  (c) within 180 days after the beginning of the second variant year, the network seller requests in writing that the Minister revoke the approval. 
  
  ### Adjustment by network seller due to notification failure
  
  (5) If, at any time after an approval granted under subsection 178(5) in respect of a network seller and each of its sales representatives ceases to have effect as a consequence of a revocation under subsection 178(11) or (12), a network commission would, if this Part were read without reference to subsection 178(7), become payable as consideration for a taxable supply (other than a zero-rated supply) made in Canada by a sales representative of the network seller that has not been notified, as required under paragraph 178(13)(b), of the revocation and an amount is not charged or collected as, or on account of, tax in respect of the taxable supply, the network seller shall, in determining the net tax for the particular reporting period of the network seller that includes the earliest day on which consideration for the taxable supply is paid or becomes due, add an amount equal to interest, at the prescribed rate, on the total amount of tax that would be payable in respect of the taxable supply if tax were payable in respect of the taxable supply, computed for the period beginning on that earliest day and ending on the day on or before which the network seller is required to file a return for the particular reporting period. 
  
  ### Instalments
  
  237 (1) Where the reporting period of a registrant is a fiscal year or a period determined under subsection 248(3), the registrant shall, within one month after the end of each fiscal quarter of the registrant ending in the reporting period, pay to the Receiver General an instalment equal to 
  (a) except where paragraph (b) applies, 1/4 of the registrant’s instalment base for that reporting period; or 
  (b) the amount determined under subsection (5). 
  
  ### Instalment base
  
  (2) A registrant’s instalment base for a particular reporting period of the registrant is the lesser of 
  (a) an amount equal to 
  (i) in the case of a reporting period determined under subsection 248(3), the amount determined by the formula is the net tax for the particular reporting period, and is the number of days in the particular reporting period, and 
  (ii) in any other case, the net tax for the particular reporting period, and 
  (b) the amount determined by the formula is the total of all amounts each of which is the net tax for a reporting period of the registrant ending in the twelve month period immediately preceding the particular reporting period, and is the number of days in the period commencing on the first day of the first of those preceding reporting periods and ending on the last day of the last of those preceding reporting periods. 
  
  ### Minimum instalment base
  
  (3) For the purposes of subsection (1), if a registrant’s instalment base for a reporting period is less than $3,000, it is deemed to be nil. 
  (4)  [Repealed, 1993, c. 27, s. 98]  
  
  ### Selected listed financial institution — Instalments in first fiscal year
  
  (5) For the purposes of subsection (1), where a person becomes a selected listed financial institution during a reporting period of the person that begins on or after April 1, 1997, the instalment to be paid within one month after the end of each fiscal quarter in the reporting period is 
  (a) where the fiscal quarter is the first fiscal quarter in the reporting period, 1/4 of the amount determined under subsection (2); and 
  (b) in any other case, the lesser of 
  (i) 1/4 of the amount determined under paragraph (2)(a), and 
  (ii) the amount determined by the formula is 1/4 of the financial institution’s instalment base for the reporting period determined under paragraph (2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1, and is the total of all amounts, each of which is determined, for a participating province, by the formula is the amount determined for A in this subparagraph, and is the financial institution’s percentage for the participating province for the immediately preceding fiscal quarter, determined in accordance with the prescribed rules that apply to that financial institution. 
  
  # SUBDIVISION C 
  
  ## Returns 
  
  ### Filing required
  
  238 (1) Every registrant shall file a return with the Minister for each reporting period of the registrant 
  (a) where the registrant’s reporting period is or would, in the absence of subsection 251(1), be the fiscal year, 
  (i) if the registrant is a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x), within six months after the end of the year, 
  (ii) if subparagraph (i) does not apply, the registrant is an individual, the fiscal year is a calendar year and, for the purposes of the Income Tax Act, the individual carried on a business in the year and the filing-due date of the individual for the year is June 15 of the following year, on or before that day, and  
  (iii) in any other case, within three months after the end of the year; and 
  (b) in every other case, within one month after the end of the reporting period of the registrant. 
  
  ### Idem
  
  (2) Every person who is not a registrant shall file a return with the Minister for each reporting period of the person for which net tax is remittable by the person within one month after the end of the reporting period. 
  
  ### Filing by certain selected listed financial institutions
  
  (2.1) Despite paragraph (1)(b) and subsection (2), if a selected listed financial institution’s reporting period is a fiscal month or fiscal quarter, the financial institution shall 
  (a) file an interim return for the period with the Minister within one month after the end of the period; and 
  (b) file a final return for the period with the Minister within six months after the end of the fiscal year in which the period ends. 
  
  ### Non-resident performers, etc.
  
  (3) Notwithstanding subsection (1), where, in a reporting period of a non-resident person, the person makes a taxable supply in Canada of an admission in respect of a place of amusement, a seminar, an activity or an event, the person shall 
  (a) file with the Minister a return for that period on or before the earlier of 
  (i) the day on or before which a return for that period is required to be filed under subsection (1), and 
  (ii) the day the person, or one or more employees of the person who are involved in the commercial activity in which the supply was made, leaves Canada; and 
  (b) on or before that earlier day, remit all amounts that became collectible, and all other amounts collected by the person, in the period as or on an account of tax under Division II. 
  
  ### Form and content
  
  (4) Every return under this Subdivision shall be made in prescribed form containing prescribed information and shall be filed in prescribed manner. 
  
  ### Definitions
  
  238.1 (1) In this section,  
  *cumulative amount* for a reporting period of a registrant means the total of  
  (a) the amount that would be the registrant’s net tax for the period if it were determined without reference to subsection (4) and if no input tax credits were claimed, and no amounts were deducted, in determining that net tax, and 
  (b) the amount required under subsection (4) to be added in determining the net tax for the period; ( montant cumulatif)   
  *designated reporting period* of a person means a reporting period of the person in respect of which a designation under subsection (2) is in effect, but does not include a reporting period in which the person ceases to be a registrant. (période désignée)  
  
  ### Designation by Minister
  
  (2) The Minister may, on the application of a registrant and by notice in writing, designate, as an eligible reporting period for the purposes of this section, a particular reporting period (other than a fiscal year) of the registrant specified in the application and ending in a fiscal year of the registrant if 
  (a) the Minister is satisfied that it can reasonably be expected that the cumulative amount for the particular reporting period will not exceed $1000; 
  (b) the registrant’s application in respect of the particular reporting period is made in prescribed form, contains prescribed information and is filed with the Minister in prescribed manner before the beginning of the particular reporting period; and 
  (c) at the time the application is made, 
  (i) no designation under this subsection of a reporting period of the registrant ending in the fiscal year has been revoked, 
  (ii) all amounts required under this Part to be remitted before that time by the registrant in respect of reporting periods of the registrant or supplies of real property made to the registrant and all amounts payable under this Part before that time by the registrant as penalty, interest, an instalment of tax or a repayment in respect of reporting periods of the registrant have been remitted or paid, 
  (iii) all amounts required under this Act (other than this Part), sections 21 and 33 of the Canada Pension Plan, the Excise Act, the Customs Act, the Income Tax Act, section 82 and Part VII of the Employment Insurance Act, the Customs Tariff, the Excise Act, 2001, the Underused Housing Tax Act and the Select Luxury Items Tax Act to be remitted or paid before that time by the registrant have been remitted or paid, and  
  (iv) all returns required under this Part to be filed with the Minister before that time by the registrant have been filed. 
  
  ### No return
  
  (3) Subject to section 282, a registrant is not required to file a return under section 238 for a designated reporting period of the registrant if the cumulative amount for the period does not exceed $1000. 
  
  ### Determination of net tax
  
  (4) Where the cumulative amount for a designated reporting period of a registrant does not exceed $1000, that amount 
  (a) shall be added in determining the registrant’s net tax for the reporting period of the registrant immediately following the designated reporting period; and 
  (b) notwithstanding any other provision of this Part, shall not be included in determining the registrant’s net tax for the designated reporting period. 
  
  ### Revocation by Minister
  
  (5) Where the Minister has made a designation under subsection (2) in respect of a reporting period of a registrant and 
  (a) the condition described in paragraph (2)(a) is no longer met in respect of the period, or 
  (b) the conditions described in paragraph (2)(c) would not be met if an application for such a designation were made at the beginning of the period, the Minister may revoke the designation. 
  
  ### Notice of revocation
  
  (6) Where, under subsection (5), the Minister revokes a designation of a reporting period of a registrant, the Minister shall send a notice in writing of the revocation to the registrant. 
  
  ### Automatic revocation
  
  (7) Where 
  (a) a registrant files, or is required to file, a return under section 238 or 282 for a designated reporting period of the registrant ending in a fiscal year of the registrant, or 
  (b) the Minister revokes a designation of a reporting period of a registrant ending in a fiscal year of the registrant, the designations under subsection (2) of all subsequent reporting periods of the registrant ending in the fiscal year are revoked. 
  
  ### Filing deadlines
  
  (8) In this Part (other than this section), any reference to the day on or before which a person is required to file a return shall, where the person is, because of subsection (3), not required to file the return, be read as a reference to the day on or before which the person would, but for that subsection, be required to file the return. 
  
  ### Authority for separate returns
  
  239 (1) A registrant who engages in one or more commercial activities in separate branches or divisions may file with the Minister in prescribed manner an application, in prescribed form containing prescribed information, for authority to file separate returns under this Division in respect of a branch or division specified in the application. 
  
  ### Authorization by Minister
  
  (2) Where the Minister receives an application under subsection (1) in respect of a branch or division of a registrant and is satisfied that 
  (a) the branch or division can be separately identified by reference to the location thereof or the nature of the activities engaged in by it, and 
  (b) separate records, books of account and accounting systems are maintained in respect of the branch or division, the Minister may, in writing, authorize the registrant to file separate returns in relation to the specified branch or division, subject to such conditions as the Minister may at any time impose. 
  
  ### Revocation of authorization
  
  (3) The Minister may, in writing, revoke an authorization granted under subsection (2) where 
  (a) the registrant fails to comply with any condition attached thereto or any provision of this Part; 
  (b) the Minister considers that the authorization is no longer required for the purposes for which it was originally granted, or generally for the purposes of this Part; 
  (c) the Minister is no longer satisfied that the requirements of paragraphs (2)(a) and (b) in respect of the registrant are met; or 
  (d) the registrant, in writing, requests the Minister to revoke the authorization. 
  
  ### Notice of revocation
  
  (4) Where under subsection (3) the Minister revokes an authorization, the Minister shall send a notice in writing of the revocation to the registrant and shall specify therein the effective date thereof. 
  
  # SUBDIVISION D 
  
  ## Registration 
  
  ### Registration required
  
  240 (1) Every person who makes a taxable supply in Canada in the course of a commercial activity engaged in by the person in Canada is required to be registered for the purposes of this Part, except where 
  (a) the person is a small supplier; 
  (b) the only commercial activity of the person is the making of supplies of real property by way of sale otherwise than in the course of a business; or 
  (c) the person is a non-resident person who does not carry on any business in Canada. 
  
  ### Taxi business
  
  (1.1) Notwithstanding subsection (1), every small supplier who carries on a taxi business is required to be registered for the purposes of this Part in respect of that business. 
  
  ### Prescribed selected listed financial institutions
  
  (1.2) Every selected listed financial institution that is prescribed is required to be registered for the purposes of this Part. 
  
  ### Group registration of selected listed financial institutions
  
  (1.3) The following rules apply in respect of a prescribed group of selected listed financial institutions: 
  (a) the group is required to be registered for the purposes of this Part; 
  (b) a person that is prescribed in respect of the group must apply to the Minister for registration of the group before the day that is prescribed; 
  (c) each member of the group is deemed to be a registrant for the purposes of this Part; and 
  (d) despite subsections (1) to (1.2), each member of the group is not required to be separately registered. 
  
  ### Additional member of group
  
  (1.4) If a selected listed financial institution becomes, on a particular day, a member of an existing group that is required to be registered for the purposes of this Part or that is registered under this Subdivision, the following rules apply: 
  (a) if the group is required to be registered, the application for the registration of the group under paragraph (1.3)(b) must list the financial institution as a member of the group; 
  (b) if the group is registered, the financial institution or the person that is prescribed in respect of the group for the purpose of paragraph (1.3)(b) must, before the day that is 30 days after the particular day, apply to the Minister to add the financial institution to the registration of the group; 
  (c) the financial institution is deemed to be a registrant for the purposes of this Part as of the particular day; and 
  (d) despite subsections (1) to (1.2), the financial institution is not required to be separately registered as of the particular day. 
  
  ### Non-resident supplier — tangible personal property
  
  (1.5) Despite subsection (1), every person that is required under section 211.22 to be registered under this Subdivision is required to be registered for the purposes of this Part. 
  
  ### Non-resident performers, etc.
  
  (2) Every person (other than a person registered under Subdivision E of Division II) that enters Canada for the purpose of making taxable supplies of admissions in respect of a place of amusement, a seminar, an activity or an event is required to be registered for the purposes of this Part and shall, before making any such supply, apply to the Minister for registration. 
  
  ### Application
  
  (2.1) A person required under any of subsections (1) to (1.2) and (1.5) to be registered must apply to the Minister for registration before the day that is 30 days after 
  (a) in the case of a person required under subsection (1.1) to be registered in respect of a taxi business, the day the person first makes a taxable supply in Canada in the course of that business; 
  (a.1) in the case of a selected listed financial institution required under subsection (1.2) to be registered, the day that is prescribed; 
  (a.2) in the case of a person required under subsection (1.5) to be registered, the first day on which the person is required under section 211.22 to be registered under this Subdivision; and 
  (b) in any other case, the day the person first makes a taxable supply in Canada, otherwise than as a small supplier, in the course of a commercial activity engaged in by the person in Canada. 
  
  ### Registration permitted
  
  (3) An application for registration for the purposes of this Part may be made to the Minister by any person that is not required under subsection (1), (1.1), (1.2), (1.5), (2) or (4) to be registered, that is not required to be included in, or added to, the registration of a group under subsection (1.3) or (1.4) and that 
  (a) is engaged in a commercial activity in Canada; 
  (b) is a non-resident person who in the ordinary course of carrying on business outside Canada 
  (i) regularly solicits orders for the supply by the person of tangible personal property for export to, or delivery in, Canada, or 
  (ii) has entered into an agreement for the supply by the person of 
  (A) services to be performed in Canada, or 
  (B) intangible personal property to be used in Canada or that relates to 
  (I) real property situated in Canada, 
  (II) tangible personal property ordinarily situated in Canada, or 
  (III) services to be performed in Canada; 
  (c) is a listed financial institution resident in Canada; 
  (d) is resident in Canada and is 
  (i) a particular corporation, partnership or trust that owns units (as defined in subsection 186(0.1)) or holds indebtedness of a corporation that is, for the purposes of section 186, an operating corporation of the particular corporation, partnership or trust, or  
  (ii) a particular corporation that is acquiring, or proposes to acquire, all or substantially all of the issued and outstanding shares of the capital stock of another corporation, having full voting rights under all circumstances, if all or substantially all of the property of the other corporation is, for the purposes of section 186, property that was last manufactured, produced, acquired or imported by the other corporation for consumption, use or supply exclusively in the course of its commercial activities, 
  (e) is the recipient of a qualifying supply (as defined in subsection 167.11(1)), or of a supply that would be a qualifying supply if the recipient were a registrant, and the recipient files an election referred to in subsection 167.11(2) with the Minister in respect of the qualifying supply before the particular day that is referred to in paragraph 167.11(7)(a); or 
  (f) a corporation that would be a temporary member, as defined in subsection 156(1), in the absence of paragraph (a) of that definition. 
  
  ### Extended registration permitted for taxi business
  
  (3.1) Where a person who is a small supplier carrying on a taxi business files with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to have the registration of the person apply in respect of all commercial activities engaged in by the person in Canada, the Minister may approve the request and shall thereupon notify the person in writing of the date from which the registration so applies. 
  
  ### Suppliers of prescribed property
  
  (4) Every person (other than a small supplier), whether or not resident in Canada, who, in Canada, whether through an employee or agent or by means of advertising directed at the Canadian market, solicits orders for the supply by the person of, or offers to supply, property that is prescribed property for the purposes of section 143.1 and that is to be sent by mail or courier to the recipient at an address in Canada 
  (a) shall be deemed, for the purposes of this Part, to be carrying on business in Canada; and 
  (b) is required to be registered for the purposes of this Part. 
  
  ### Form and contents of application
  
  (5) An application for registration, or an application to be added to the registration of a group, is to be filed with the Minister in prescribed manner and is to be made in prescribed form containing prescribed information. 
  
  ### Security
  
  (6) Every person who 
  (a) is not resident in Canada or would not, but for subsection 132(2), be resident in Canada, 
  (b) does not have a permanent establishment in Canada or would not, but for paragraph (b) of the definition 
  *permanent establishment* in subsection 123(1), have such an establishment, and  
  (c) applies or is required to be registered for the purposes of this Part shall give and thereafter maintain security, in an amount and a form satisfactory to the Minister, that the person will pay or remit all amounts payable or remittable by the person under this Part. 
  
  ### Failure to comply
  
  (7) Where, at any time, a person referred to in subsection (6) fails to give or maintain, as required under that subsection, security in an amount satisfactory to the Minister, the Minister may retain as security, out of any amount that may be or may become payable under this Part to the person, an amount not exceeding the amount by which 
  (a) the amount of security that would, at that time, be satisfactory to the Minister if it were given by the person in accordance with that subsection exceeds 
  (b) the amount of security, if any, given and maintained by the person in accordance with that subsection, and the amount so retained is deemed 
  (c) to have been paid, at that time, by the Minister to the person, and 
  (d) to have been given, immediately after that time, by the person as security in accordance with subsection (6). 
  
  ### Registration
  
  241 (1) The Minister may register any person that applies for registration and, upon doing so, must assign a registration number to the person and notify the person in writing of the registration number and the effective date of the registration. 
  
  ### Group registration
  
  (1.1) If a person applies to register a group of selected listed financial institutions that is prescribed for the purposes of subsection 240(1.3), the Minister may register the group and, upon doing so, the following rules apply: 
  (a) the Minister must assign a registration number to the group and notify in writing the person that is prescribed in respect of the group for the purpose of paragraph 240(1.3)(b) and each financial institution listed on the application of the registration number and the effective date of the registration of the group; 
  (b) for each member of the group that is registered under this Subdivision on the day preceding the effective date, that registration is cancelled as of the effective date of the registration of the group; and 
  (c) each member of the group is deemed, for the purposes of this Part other than section 242, to be registered under this Subdivision as of the effective date of the registration of the group and to have a registration number that is the same as the registration number of the group. 
  
  ### Addition of new member to group registration
  
  (1.2) If an application is made to add a selected listed financial institution to the registration of a group under paragraph 240(1.4)(b), the Minister may add the financial institution to the registration and, upon doing so, the following rules apply: 
  (a) the Minister must notify in writing the person that is prescribed in respect of the group for the purpose of paragraph 240(1.3)(b) and the financial institution of the effective date of the addition to the registration; 
  (b) if the financial institution is registered under this Subdivision on the day preceding the effective date, that registration of the financial institution is cancelled as of the effective date; and 
  (c) the financial institution is deemed, for the purposes of this Part other than section 242, to be registered under this Subdivision as of the effective date and to have a registration number that is the same as the registration number of the group. 
  
  ### Notice of intent
  
  (1.3) If the Minister has reason to believe that a person that is not registered under this Subdivision is required to be registered for the purposes of this Part and has failed to apply for registration under this Subdivision as and when required, the Minister may send a notice in writing (in this section referred to as a “notice of intent”) to the person that the Minister proposes to register the person under subsection (1.5). 
  
  ### Representations to Minister
  
  (1.4) Upon receipt of a notice of intent, a person shall apply for registration under this Subdivision or establish to the satisfaction of the Minister that the person is not required to be registered for the purposes of this Part. 
  
  ### Registration by Minister
  
  (1.5) If, after 60 days after the particular day on which a notice of intent was sent by the Minister to a person, the person has not applied for registration under this Subdivision and the Minister is not satisfied that the person is not required to be registered for the purposes of this Part, the Minister may register the person and, upon doing so, shall assign a registration number to the person and notify the person in writing of the registration number and the effective date of the registration, which effective date is not to be earlier than 60 days after the particular day. 
  
  ### Taxi business
  
  (2) Where, on the day on which the registration under subsection (1) of a person becomes effective or is varied under subsection 242(2.1), the person is a small supplier carrying on a taxi business and an approval under subsection 240(3.1) in respect of the registration does not become effective on that day, the registration does not apply to any other commercial activity engaged in by the person in Canada throughout the period commencing on that day and ending on the earlier of the first day thereafter that the person ceases to be a small supplier and the day, specified in a notice issued under subsection 240(3.1) in respect of that registration or varied registration, as the case may be, from which the registration is to apply to all commercial activities engaged in by the person in Canada. 
  
  ### Cancellation
  
  242 (1) The Minister may, after giving a person who is registered under this Subdivision reasonable written notice, cancel the registration of the person if the Minister is satisfied that the registration is not required for the purposes of this Part. 
  
  ### Cancellation of group registration
  
  (1.1) The Minister may, after giving reasonable written notice to each member of a group that is registered under this Subdivision and to the person that is prescribed in respect of the group for the purposes of paragraph 240(1.3)(b), cancel the registration of the group if the Minister is satisfied that the registration is not required for the purposes of this Part. 
  
  ### Cancellation of group registration
  
  (1.2) The Minister must cancel the registration of a group in prescribed circumstances. 
  
  ### Removal from group registration
  
  (1.3) The Minister may, after giving reasonable written notice to a particular person that is a member of a group that is registered under this Subdivision and to the person that is prescribed in respect of the group for the purposes of paragraph 240(1.3)(b), remove the particular person from the registration of the group if the Minister is satisfied that the particular person is not required to be included in the registration for the purposes of this Part. 
  
  ### Removal from group registration
  
  (1.4) The Minister must remove a person from the registration of a group in prescribed circumstances. 
  
  ### Request for cancellation
  
  (2) The Minister shall cancel the registration of a person who is not carrying on a taxi business, effective after the last day of a fiscal year of the person, where 
  (a) the person is a small supplier and has filed with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to do so; and 
  (b) the person has been registered for a period of not less than one year ending on that day. 
  
  ### Request for variation
  
  (2.1) Where a small supplier carrying on a taxi business files with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to have the registration of the person varied to apply only to that business, the Minister shall so vary the registration, effective on a day that is the first day of a fiscal year of the person and that is at least one year after the registration of the person last became applicable to all commercial activities engaged in by the person in Canada. 
  
  ### Request for cancellation
  
  (2.2) Where at any time that an approval granted under subsection 178.2(3) in respect of a direct seller is in effect, an independent sales contractor (within the meaning assigned by section 178.1) of the direct seller would be a small supplier if the approval had been in effect at all times before that time and the contractor files with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to have the registration of the contractor cancelled, the Minister shall cancel the registration of the contractor. 
  
  ### Request for cancellation
  
  (2.3) If, at any time when an approval granted under subsection 178(5) in respect of a network seller (as defined in subsection 178(1)) and each of its sales representatives (as defined in that subsection) is in effect, a sales representative of the network seller would be a small supplier if the approval had been in effect at all times before that time and the sales representative files with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to have the registration of the sales representative cancelled, the Minister shall cancel the registration of the sales representative. 
  
  ### Notice of cancellation or variation
  
  (3) If the Minister cancels or varies the registration of a person, the Minister must notify the person in writing of the cancellation or variation and its effective date. 
  
  ### Group registration — notice of cancellation
  
  (4) If the Minister cancels the registration of a group, 
  (a) the Minister must notify in writing each member of the group and the person that is prescribed in respect of the group for the purposes of paragraph 240(1.3)(b) of the cancellation and its effective date; and 
  (b) each member of the group is deemed, for the purposes of this Part, to no longer be registered under this Subdivision as of the effective date of the cancellation. 
  
  ### Group registration — notice of removal
  
  (5) If the Minister removes a particular person from the registration of a group, 
  (a) the Minister must notify in writing the particular person and the person that is prescribed in respect of the group for the purposes of paragraph 240(1.3)(b) of the removal and its effective date; and 
  (b) the particular person is deemed, for the purposes of this Part, to no longer be registered under this Subdivision as of the effective date of the removal. 
  
  # SUBDIVISION E 
  
  ## Fiscal Periods and Reporting Periods 
  
  ## Fiscal Periods 
  
  ### Determination of fiscal quarters
  
  243 (1) For the purposes of this Part, the fiscal quarters in a fiscal year of a person shall be determined in accordance with the following rules: 
  (a) there shall not be more than four fiscal quarters in the year; 
  (b) the first fiscal quarter in the year shall begin on the first day of that year, and the last fiscal quarter in the year shall end on the last day of that year; 
  (c) each fiscal quarter shall be shorter than one hundred and twenty days; and 
  (d) except for the first and last fiscal quarters in the year, each fiscal quarter shall be longer than eighty-three days. 
  
  ### Determination of fiscal months
  
  (2) For the purposes of this Part, the fiscal months in a fiscal year of a person shall be determined in accordance with the following rules: 
  (a) the first fiscal month in each fiscal quarter in the year shall begin on the first day of that fiscal quarter, and the last fiscal month in each fiscal quarter shall end on the last day of that fiscal quarter; 
  (b) each fiscal month shall be shorter than thirty-six days except that the Minister may, on request in writing made in prescribed form containing prescribed information and filed with the Minister in prescribed manner, allow the person to have one fiscal month that is longer than thirty-five days in a fiscal quarter; and 
  (c) each fiscal month shall be longer than twenty-seven days unless 
  (i) that fiscal month is the first or last fiscal month in a fiscal quarter, or 
  (ii) the Minister, on request in writing made in prescribed form containing prescribed information and filed with the Minister in prescribed manner, allows the person to have that fiscal month shorter than twenty-eight days. 
  
  ### Notice by registrant
  
  (3) Where a person is a registrant at any time in a fiscal year of the person, the person shall specify the first and last day of each of the fiscal quarters and fiscal months in the year in prescribed form containing prescribed information and filed with the Minister in prescribed manner on or before the day that is 
  (a) where the person becomes a registrant in that fiscal year, the later of 
  (i) the day the person files an application for registration under section 240 or, where the person was required under subsection 240(2.1) to file that application on or before an earlier day, that earlier day, and 
  (ii) the effective date of the registration; and 
  (b) in any other case, the first day of that fiscal year. 
  
  ### Determination by Minister
  
  (4) Where a person fails to determine the fiscal quarters or fiscal months in a fiscal year of the person in accordance with subsection (1) or (2), or fails to satisfy the requirements of subsection (3), for the purposes of this Part, the Minister may determine those fiscal quarters or fiscal months and shall notify the person in writing of the determination. 
  
  ### Election for fiscal year
  
  244 (1) Where the taxation year of a person is not a calendar year, the person may elect to have fiscal years that are calendar years, effective on the first day of a calendar year. 
  
  ### Idem
  
  (2) Where the taxation year of an individual or a trust is not a period that is, for the purposes of the Income Tax Act, the fiscal period of a business carried on by the individual or trust, or by a partnership of which the individual or trust is a member, the individual or trust may elect to have the fiscal year of the individual or trust be that fiscal period, effective on the first day of one of those fiscal periods.  
  
  ### Revocation of election
  
  (3) A person who has made an election under this section may revoke the election, effective on the first day of a taxation year of the person that begins more than one year after the day the election became effective. 
  
  ### Form and contents of election, etc.
  
  (4) An election made under this section or a revocation of an election made under this section shall 
  (a) be made in prescribed form containing prescribed information; 
  (b) specify the day the election or revocation is to become effective; and 
  (c) be filed with the Minister not later than the day the election or revocation is to become effective. 
  
  ### Fiscal year — selected listed financial institution
  
  244.1 (1) If a person is a financial institution described in subparagraph 149(1)(a)(vi) or (ix) that is a selected listed financial institution throughout a particular reporting period in a particular fiscal year of the person that begins in a particular calendar year and the person was not a selected listed financial institution throughout the reporting period immediately before the particular reporting period, the following rules apply: 
  (a) the particular fiscal year ends on the last day of the particular calendar year; and 
  (b) as of the beginning of the first day of the calendar year that is immediately after the particular calendar year, the fiscal years of the person are calendar years and any election made by the person under section 244 ceases to have effect. 
  
  ### Fiscal year — selected listed financial institution
  
  (2) Despite subsection (1), if a person is a financial institution described in subparagraph 149(1)(a)(vi) or (ix) that is a selected listed financial institution throughout a particular reporting period in a particular fiscal year of the person, the following rules apply in prescribed circumstances to determine the fiscal year of the person: 
  (a) the particular fiscal year ends on the day immediately before the prescribed day referred to in paragraph (b); and 
  (b) the following fiscal year of the person begins on a prescribed day. 
  
  ### Ceasing to be selected listed financial institution
  
  (3) If a person is a financial institution described in subparagraph 149(1)(a)(vi) or (ix) that is a selected listed financial institution throughout a reporting period in a particular fiscal year and the person is not a selected listed financial institution throughout a reporting period in the following fiscal year of the person, that following fiscal year ends on the day on which it would end in the absence of this section. 
  
  ### Fiscal year — investment limited partnership
  
  (4) If a particular fiscal year of an investment limited partnership begins in 2018 and includes January 1, 2019 and the investment limited partnership would be a selected listed financial institution throughout a reporting period in the particular fiscal year if the particular fiscal year began on January 1, 2019 and ended on December 31, 2019, the following rules apply: 
  (a) the particular fiscal year ends on December 31, 2018; 
  (b) subject to subsection (2), the fiscal years of the investment limited partnership are calendar years as of January 1, 2019; 
  (c) any election made by the investment limited partnership under section 244 ceases to have effect as of January 1, 2019; and 
  (d) if the first taxation year of the investment limited partnership that begins after 2018 does not begin on January 1, 2019, for the purposes of this Part (other than section 149) the investment limited partnership is deemed, for the period beginning on January 1, 2019 and ending on the day preceding the first day of that taxation year, to be a financial institution, a listed financial institution and a person referred to in subparagraph 149(1)(a)(ix). 
  
  ## Reporting Periods 
  
  ### Reporting period of non-registrant
  
  245 (1) Subject to section 251, the reporting period of a person who is not a registrant is a calendar month. 
  
  ### Reporting period of registrant
  
  (2) Subject to subsection 248(3) and sections 251, 265 to 267 and 322.1, the reporting period of a registrant at a particular time in a fiscal year of the registrant is 
  (a) where 
  (i) the registrant has made an election under section 248 that is effective at that time, 
  (ii) the registrant has not made an election under section 246 or 247 that is effective at that time, an election under section 248 by the registrant would be effective at that time if the registrant had made such an election at the beginning of the fiscal year of the registrant that includes that time and, except where the reporting period of the registrant that includes that time is deemed under subsection 251(1) or any of sections 265 to 267 to be a separate reporting period, the last reporting period of the registrant ending before that time was a fiscal year of the registrant, 
  (iii) the registrant is a charity and has not made an election under section 246 or 247 that is effective at that time, or 
  (iv) the registrant is a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) and has not made an election under section 246 or 247 that is effective at that time, the fiscal year of the registrant that includes that time; 
  (b) where 
  (i) the threshold amount of the registrant for the fiscal year or fiscal quarter of the registrant that includes that time exceeds $6,000,000 and the registrant is neither a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) nor a charity, 
  (ii) the last reporting period of the registrant ending before that time was the fiscal month of the registrant and the registrant has not made an election under section 247 or 248 that is effective at that time, or 
  (iii) the registrant has made an election under section 246 that is effective at that time, the fiscal month of the registrant that includes that time; and 
  (c) in all other cases, the fiscal quarter of the registrant that includes that time. 
  (d)  [Repealed, 1997, c. 10, s. 55]  
  
  ### Election for fiscal months
  
  246 (1) Any person may make an election to have reporting periods that are fiscal months of the person, to take effect 
  (a) where the person is a registrant, on the first day of a fiscal year of the person; or 
  (b) on the day the person becomes a registrant. 
  
  ### Idem
  
  (2) Where a person has made an election under section 248 and the election ceases to have effect on the beginning of a fiscal quarter of the person specified in paragraph 248(2)(b), the person may make an election, to take effect on the first day of that fiscal quarter, to have reporting periods that are fiscal months of the person. 
  
  ### Duration of election
  
  (3) An election made under this section by a person is to remain in effect until the earlier of 
  (a) the beginning of the day on which an election by the person under section 247 or 248 takes effect, and 
  (b) the day on which a revocation of the election by the person under subsection (4) becomes effective. 
  
  ### Revocation of election
  
  (4) A listed financial institution that has made an election under this section may revoke the election, effective on the first day of a fiscal year of the financial institution, by filing in prescribed manner with the Minister a notice of revocation in prescribed form containing prescribed information not later than the day on which the revocation is to become effective or any later day that the Minister may allow. 
  
  ### Election for fiscal quarters
  
  247 (1) A person that is a charity on the first day of a fiscal year of the person or whose threshold amount for a fiscal year does not exceed $6,000,000 may make an election to have reporting periods that are fiscal quarters of the person, to take effect 
  (a) where the person is a registrant on the first day of that fiscal year, that day; or 
  (b) on the day in that fiscal year that the person becomes a registrant. 
  
  ### Duration of election
  
  (2) An election made under this section by a person shall remain in effect until the earliest of 
  (a) the beginning of the day an election by the person under section 246 or 248 takes effect, 
  (b) where the person is not a charity, the beginning of the first fiscal quarter of the person for which the threshold amount of the person exceeds $6,000,000, 
  (c) where the person is not a charity, the beginning of the first fiscal year of the person for which the threshold amount of the person exceeds $6,000,000, and 
  (d) the day on which a revocation of the election by the person under subsection (3) becomes effective. 
  
  ### Revocation of election
  
  (3) A listed financial institution that has made an election under this section may revoke the election, effective on the first day of a fiscal year of the financial institution, by filing in prescribed manner with the Minister a notice of revocation in prescribed form containing prescribed information not later than the day on which the revocation is to become effective or any later day that the Minister may allow. 
  
  ### Election for fiscal years
  
  248 (1) A registrant that is a charity on the first day of a fiscal year of the registrant or whose threshold amount for a fiscal year does not exceed $1,500,000 may make an election to have reporting periods that are fiscal years of the registrant, to take effect on the first day of that fiscal year. 
  
  ### Duration of election
  
  (2) An election made under this section by a person shall remain in effect until the earliest of 
  (a) the beginning of the day an election by the person under section 246 or 247 takes effect, 
  (b) if the person is not a charity and the threshold amount of the person for the second or third fiscal quarter of the person in a fiscal year of the person exceeds $1,500,000, the beginning of the first fiscal quarter of the person for which the threshold amount exceeds that amount, and 
  (c) if the person is not a charity and the threshold amount of the person for a fiscal year of the person exceeds $1,500,000, the beginning of that fiscal year. 
  
  ### New reporting period
  
  (3) For the purposes of this Part, if a person ceases to have reporting periods that are fiscal years with effect from the beginning of a fiscal month in a fiscal year of the person and that fiscal month is not the first fiscal month in that fiscal year, the period beginning on the first day of that fiscal year and ending immediately before the beginning of that fiscal month is deemed to be a reporting period of the person. 
  
  ### Threshold amount for fiscal year
  
  249 (1) For the purposes of sections 245, 247 and 248, the threshold amount of a particular person for a fiscal year of the person is an amount equal to the total of 
  (a) the amount determined by the formula is the total of all consideration (other than consideration referred to in section 167.1 that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services, supplies by way of sale of real property that is capital property of the person and supplies included in Part V of Schedule VI) made in Canada by the person that became due to the person in the immediately preceding fiscal year (in this subsection referred to as the “base year”) of the person or that was paid to the person in the base year without having become due, and is the number of days in the base year, and 
  (b) the total of all amounts each of which is an amount in respect of a person (in this paragraph referred to as the “associate”) who was associated with the particular person at the end of the particular fiscal year of the associate that is the last such year ending at the same time as, or at any time in, the base year, determined by the formula is the total of all consideration (other than consideration referred to in section 167.1 that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services, supplies by way of sale of real property that is capital property of the associate and supplies included in Part V of Schedule VI) made in Canada by the associate that became due to the associate in the particular fiscal year of the associate or that was paid to the associate in that year without having become due, and is the number of days in the particular fiscal year of the associate. 
  
  ### Threshold amount for fiscal quarter
  
  (2) For the purposes of sections 245, 247 and 248, the threshold amount of a particular person for a particular fiscal quarter of the person at any time in a fiscal year of the person is an amount equal to the total of 
  (a) the total of all consideration (other than consideration referred to in section 167.1 that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services, supplies by way of sale of real property that is capital property of the person and supplies included in Part V of Schedule VI) made in Canada by the person that became due to the person in the preceding fiscal quarters of the person ending in that year or that was paid to the person in those preceding fiscal quarters without having become due; and 
  (b) the total of all amounts each of which is an amount in respect of a person (in this paragraph referred to as the “associate”) who was associated with the particular person at the beginning of the particular fiscal quarter equal to the total of all consideration (other than consideration referred to in section 167.1 that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services, supplies by way of sale of real property that is capital property of the associate and supplies included in Part V of Schedule VI), made in Canada by the associate that became due to the associate in the fiscal quarters of the associate that end in that fiscal year of the particular person and before the beginning of the particular fiscal quarter or that was paid to the associate in those fiscal quarters of the associate without having become due. 
  
  ### Form and filing of election
  
  250 An election made under section 246, 247 or 248 by a person shall 
  (a) be made in prescribed form containing prescribed information; 
  (b) be filed with the Minister in prescribed manner; 
  (c) specify the first fiscal year in respect of which it applies; and 
  (d) be filed 
  (i) where the election is to take effect on the day the person becomes a registrant, at the time the person applies to be registered under this Part or, where the effective date of the person’s registration is after that time, at any time between that time and that effective date, 
  (ii) where the election is made under section 248 and the reporting period of the person ending immediately before the day the election is to take effect is a fiscal quarter of the person, within three months after that day, and 
  (iii) in all other cases, within two months after the day the election is to take effect. 
  
  ### On becoming registrant
  
  251 (1) For the purposes of this Part, where a person becomes a registrant on a particular day, 
  (a) the period beginning on the first day of the calendar month that includes the particular day and ending on the day immediately preceding the particular day, and 
  (b) the period beginning on the particular day and ending on the last day of the reporting period of the person, otherwise determined under subsection 245(2), that includes the particular day, shall each be deemed to be a separate reporting period of the person. 
  
  ### On ceasing to be registrant
  
  (2) For the purposes of this Part, where a person ceases to be a registrant on a particular day, 
  (a) the period beginning on the first day of the reporting period of the person, otherwise determined under subsection 245(2), that includes the particular day and ending on the day immediately preceding the particular day, and 
  (b) the period beginning on the particular day and ending on the last day of the calendar month that includes the particular day, shall each be deemed to be a separate reporting period of the person. 
  
  # DIVISION VI 
  
  ## Rebates 
  
  ### Non-resident rebate in respect of exported goods
  
  252 (1) If a non-resident person is the recipient of a supply of tangible personal property acquired by the person for use primarily outside Canada, the person is not a consumer of the property, the property is not 
  (a) excisable goods, or 
  (b)  [Repealed, 2002, c. 22, s. 389]  
  (c) gasoline, diesel fuel or other motive fuel, other than such fuel that 
  (i) is being transported in a vehicle designed for transporting gasoline, diesel fuel or other motive fuel in bulk, and 
  (ii) is for use otherwise than in the vehicle in which or with which it is being transported, 
  (d)  [Repealed, 1997, c. 10, s. 58]  and the person exports the property within sixty days after it is delivered to the person, the Minister shall, subject to section 252.2, pay a rebate to the person equal to the tax paid by the person in respect of the supply. 
  
  ### Rebate for artistic works produced for export
  
  (2) Where a non-resident person who is not a registrant 
  (a) acquires particular property or a particular service (other than a service of storing or shipping property) for consumption or use exclusively in the manufacture or production of an original literary, musical, artistic, motion picture or other work in which copyright protection subsists and copies, if any, of that work, 
  (b) is not a consumer of the particular property or service, and 
  (c) is manufacturing or producing the work and all copies of it for export by the non-resident person, the Minister shall, subject to subsection (3) and section 252.2, pay a rebate to the non-resident person equal to the tax paid by the non-resident person in respect of the acquisition of the particular property or service. 
  
  ### Assignment of rebate
  
  (3) Where the recipient of a supply assigns, in prescribed form containing prescribed information, to the supplier the right to a rebate under subsection (2) to which the recipient would be entitled in respect of the supply if the recipient paid the tax in respect of the supply and satisfied the conditions of section 252.2, and the supplier pays to, or credits in favour of, the recipient the amount of that tax, 
  (a) the supplier may claim a deduction under subsection 234(2) in respect of the supply equal to that amount; and 
  (b) the recipient is not entitled to any rebate, refund or remission of tax in respect of the supply. 
  (4) to (6)  [Repealed, 1993, c. 27, s. 107]  
  252.1  [Repealed, 2017, c. 20, s. 37]  
  
  ### Restriction
  
  252.2 A rebate shall not be paid under section 252 to a person unless 
  (a) the person files an application for the rebate within one year after 
  (i) in the case of a rebate under subsection 252(1), the day the person exports the property to which the rebate relates, and 
  (ii) in the case of a rebate under subsection 252(2), the day the tax to which the rebate relates became payable; 
  (iii)  [Repealed, 2017, c. 20, s. 38]  
  (b) and (c)  [Repealed, 2000, c. 30, s. 69]  
  (d) at the time the application is made, the person is non-resident; 
  (d.1) in the case of a rebate under subsection 252(1), the rebate is substantiated by a receipt for an amount that includes consideration, totalling at least $50, for taxable supplies (other than zero-rated supplies) in respect of which the person is otherwise eligible for a rebate under that subsection; and 
  (e) the total of all amounts, each of which is consideration for a taxable supply (other than a zero-rated supply) in respect of which the rebate application is made, is at least $200. 
  (f)  [Repealed, 2007, c. 29, s. 48]  
  (g)  [Repealed, 2017, c. 20, s. 38]  
  
  ### Rebate for non-resident exhibitors
  
  252.3 Where a non-resident person who is not registered under Subdivision D of Division V is the recipient of a supply by way of lease, licence or similar arrangement of real property that is acquired by the person exclusively for use as a site for the promotion, at a convention, of property or services supplied by, or a business of, the person, the Minister shall, on the application of the person filed within one year after the day the convention ends, pay to the person 
  (a) a rebate equal to the tax paid by the person in respect of that supply; and 
  (b) a rebate equal to the tax paid by the person in respect of a supply to the person of related convention supplies in respect of the convention. 
  
  ### Definitions
  
  252.4 (0.1) The following definitions apply in this section.  
  *camping accommodation* means a campsite at a recreational trailer park or campground (other than a campsite included in the definition short-term accommodation in subsection 123(1) or included in that part of a tour package that is not the taxable portion, as defined in subsection 163(3), of the tour package) that is supplied by way of lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence or lodging, if the period throughout which the individual is given continuous occupancy of the campsite is less than one month. It includes water, electricity and waste disposal services, or the right to their use, if they are accessed by means of an outlet or hook-up at the campsite and are supplied with the campsite. (emplacement de camping)   
  *tour package* has the same meaning as in subsection 163(3), but does not include a tour package that includes a convention facility or related convention supplies. (voyage organisé)  
  
  ### Rebate in respect of foreign convention
  
  (1) Where a sponsor of a foreign convention pays tax in respect of 
  (a) a supply of property or services relating to the convention made by a registrant who is the organizer of the convention, 
  (b) a supply, made by a registrant who is not the organizer of the convention, of property or services that are acquired for consumption, use or supply by the sponsor as related convention supplies or of the convention facility, or 
  (c) property that is imported or brought into a participating province by the sponsor, or an imported taxable supply (as defined in section 217) of property or services that are acquired by the sponsor, for consumption, use or supply by the sponsor as related convention supplies, the Minister shall, subject to subsection (2) and on the application of the sponsor filed within one year after the day the convention ends, pay a rebate to the sponsor equal to 
  (d) in the case of a supply made by the organizer, the total of 
  (i) the tax paid by the sponsor calculated on that part of the consideration for the supply that is reasonably attributable to the convention facility or related convention supplies other than property or services that are food or beverages or are supplied under a contract for catering, and 
  (ii) 50% of the tax paid by the sponsor calculated on that part of the consideration for the supply that is reasonably attributable to related convention supplies that are food or beverages or are supplied under a contract for catering, and 
  (e) in any other case, 
  (i) if the property or service is food or beverages or is supplied under a contract for catering, 50% of the tax paid by the sponsor in respect of the supply or importation of the property or service, or the bringing into a participating province of the property, and 
  (ii) in any other case, the tax paid by the sponsor in respect of the supply or importation of the property or service, or the bringing into a participating province of the property. 
  
  ### Rebate paid by organizer
  
  (2) Where a registrant who is the organizer of a foreign convention pays to, or credits in favour of, the sponsor of the convention an amount on account of a rebate under subsection (1) to which the sponsor would be entitled in respect of a supply made by the registrant to the sponsor if the sponsor had paid the tax in respect of the supply and had applied for the rebate in accordance with that subsection, the registrant may claim a deduction under subsection 234(2) in respect of the amount paid or credited, and the sponsor is not entitled to any rebate, refund or remission in respect of the tax to which the amount relates. 
  
  ### Rebate to organizer
  
  (3) If an organizer of a foreign convention who is not registered under Subdivision D of Division V pays tax in respect of a supply of the convention facility or a supply, importation or bringing into a participating province of related convention supplies, the Minister shall, on the application of the organizer filed within one year after the convention ends, pay a rebate to the organizer equal to the total of 
  (a) the tax paid by the organizer calculated on that part of the consideration for the supply or on that part of the value of property that is reasonably attributable to the convention facility or related convention supplies other than property or services that are food or beverages or are supplied under a contract for catering, and 
  (b) 50% of the tax paid by the organizer calculated on that part of the consideration for the supply or on that part of the value of property that is reasonably attributable to related convention supplies that are food or beverages or are supplied under a contract for catering. 
  
  ### Rebate paid by supplier
  
  (4) Where 
  (a) a person who is 
  (i) the organizer of a foreign convention and who is not registered under Subdivision D of Division V, or 
  (ii) the sponsor of a foreign convention is the recipient of 
  (iii) a taxable supply of the convention facility, or related convention supplies, made by the operator of the facility who is not the organizer of the convention, or 
  (iv) a taxable supply, made by a registrant other than the organizer of the convention, of short-term accommodation or camping accommodation that is acquired by the person exclusively for supply in connection with the convention, and 
  (b) the operator of the facility or supplier of accommodation pays to, or credits in favour of, the person an amount on account of a rebate to which the person would be entitled under subsection (1) or (3) in respect of the supply of the facility or accommodation, as the case may be, if the person had paid the tax in respect of the supply and had applied for the rebate in accordance with that subsection, the operator or supplier of accommodation, as the case may be, may claim a deduction under subsection 234(2) in respect of the amount paid or credited, and the person is not entitled to any rebate, refund or remission in respect of the tax to which the amount relates. 
  
  ### Filing of information
  
  (5) If, in accordance with subsection (2) or (4), a registrant 
  (a) pays to, or credits in favour of, a person an amount on account of a rebate, and 
  (b) in determining the registrant’s net tax for a reporting period, claims a deduction under subsection 234(2) in respect of the amount paid or credited, the registrant shall file with the Minister prescribed information in respect of the amount in prescribed form and in prescribed manner on or before the day on or before which the registrant’s return under Division V for the reporting period in which the amount is deducted is required to be filed. 
  
  ### Non-resident rebate respecting installation services
  
  252.41 (1) Where tangible personal property is supplied on an installed basis by a non-resident supplier who is not registered under Subdivision D of Division V to a particular person who is so registered and the supplier or another non-resident person who is not so registered is the recipient of a taxable supply in Canada of a service of installing, in real property located in Canada, the tangible personal property so that it can be used by the particular person, 
  (a) the Minister shall, on the application of the non-resident recipient of the service filed within one year after the completion of the service, pay a rebate to the non-resident recipient equal to the tax paid by the non-resident recipient in respect of the supply of the service to the non-resident recipient; and 
  (b) the particular person is deemed, for the purposes of this Part, to have received from the non-resident supplier of the tangible personal property a taxable supply of the service that is separate from and not incidental to the supply of the property and is for consideration equal to that part of the total consideration paid or payable by the particular person for the property and the installation of the property that can reasonably be attributed to the installation. 
  
  ### Application to supplier
  
  (2) Where a non-resident person submits to a supplier an application for a rebate under subsection (1) to which the non-resident person would be entitled in respect of a supply made by the supplier to the non-resident person if the non-resident person had paid the tax in respect of the supply and had applied for the rebate in accordance with that subsection, the supplier may pay to, or credit in favour of, the non-resident person the amount of the rebate in which event the supplier shall transmit the application to the Minister with the supplier’s return filed under Division V for the reporting period in which the rebate is paid or credited and interest under subsection 297(4) is not payable in respect of the rebate. 
  
  ### Joint and several liability
  
  (3) If, under subsection (2), a supplier pays to, or credits in favour of, a person an amount on account of a rebate and the supplier knows or ought to know that the person is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the person is entitled, the supplier and the person are jointly and severally, or solidarily, liable to pay to the Receiver General under section 264 the amount that was paid or credited on account of the rebate or the excess amount, as the case may be. 
  
  ### Liability for amount paid or credited
  
  252.5 If, under section 252 or 252.4, a registrant at a particular time pays to, or credits in favour of, a person an amount on account of a rebate and 
  (a) the person does not satisfy the condition (in this section referred to as the “eligibility condition”) that the person would have been entitled to the rebate if the person had paid the tax to which the amount relates and had satisfied the conditions of section 252.2 or, in the case of a rebate under subsection 252.4(1), had applied for the rebate within the time limited by that subsection for filing an application for the rebate, or 
  (b) the amount paid or credited exceeds the rebate to which the person would have been so entitled, which excess is referred to in this section as the “excess amount”, the following rules apply: 
  (c) if, at the particular time, the registrant knows or ought to know that the person does not satisfy the eligibility condition or that the amount paid or credited exceeds the rebate to which the person is entitled, the registrant and the person are jointly and severally, or solidarily, liable to pay to the Receiver General under section 264 the amount or excess amount, as the case may be, as if it had been paid at the particular time as a rebate under this Division to the registrant and the person, and 
  (d) in any other case, the person is liable to pay to the Receiver General under section 264 the amount or excess amount, as the case may be, as if it had been paid at the particular time to the person as a rebate under this Division. 
  
  ### Employees and partners
  
  253 (1) Where 
  (a) a musical instrument, motor vehicle, aircraft or any other property or a service is or would, but for subsection 272.1(1), be regarded as having been acquired, imported or brought into a participating province by an individual who is 
  (i) a member of a partnership that is a registrant, or 
  (ii) an employee of a registrant (other than a listed financial institution), 
  (a.1) in the case of an individual who is a member of a partnership, the instrument, vehicle, aircraft or other property or service acquired, imported or brought into a participating province was not acquired or imported by the individual on the account of the partnership, 
  (b) the individual has paid the tax (in this subsection referred to as the “tax paid by the individual”) payable in respect of the acquisition or importation of the property or service, or the bringing into a participating province of the property, as the case may be, and 
  (c) in the case of an acquisition, importation or bringing into a participating province, of a musical instrument, the individual is not entitled to claim an input tax credit in respect of the instrument, the Minister shall, subject to subsections (2) and (3), pay a rebate in respect of the property or service to the individual for each calendar year equal to the amount determined by the formula is 
  (a) where the tax paid by the individual includes only tax imposed under subsection 165(1) or section 212 or 218, the amount determined by the formula is the rate set out in subsection 165(1), and is the total of 100% and the percent­age determined for D, 
  (b) where the tax paid by the individual does not include any tax imposed under any of those provisions, the amount determined by the formula is the percentage determined in prescribed manner, and is the total of 100% and the percent­age determined for F, and 
  (c) in any other case, the amount determined by the formula is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and is the total of 100% and the percent­age determined for H, is an amount equal to 
  (a) the capital cost allowance in respect of the instrument, vehicle or aircraft, 
  (b) the amount in respect of the acquisition and importation of the other property imported by the individual (not exceeding the total of the value of that property determined under section 215 and the tax calculated on it), or 
  (c) the amount in respect of 
  (i) the supply by way of lease, licence or similar arrangement of the instrument, vehicle or aircraft, 
  (ii) the supply of the service, or 
  (iii) the supply in Canada of the other property, as the case may be, that was deducted under the Income Tax Act in computing the individual’s income for the year from an office or employment or from the partnership, as the case may be, and in respect of which the individual did not receive an allowance from a person, other than an allowance in respect of which the person certifies, in prescribed form containing prescribed information, that, at the time the allowance was paid, the person did not consider  
  (d) the allowance to be a reasonable allowance for the purposes of subparagraph 6(1)(b)(v), (vi), (vii) or (vii.1) of that Act, or 
  (e) where that person is a partnership of which the individual is a member, that the allowance would be a reasonable allowance for the purposes of subparagraph 6(1)(b)(v), (vi), (vii) or (vii.1) of that Act if the individual were an employee of that partnership at that time, and is the total of all amounts that the individual received or is entitled to receive from the individual’s employer or the partnership, as the case may be, as a reimbursement in respect of the amount that was so deducted. 
  
  ### Restriction on rebate to partner
  
  (2) The rebate in respect of property or a service payable under subsection (1) for a calendar year to an individual who is a member of a partnership shall not exceed the amount that would be an input tax credit of the partnership in respect of the property or service for the last reporting period of the partnership in its last fiscal year ending in that calendar year if 
  (a) in the case of a musical instrument that is capital property of the individual, the partnership had, in that reporting period, 
  (i) acquired the instrument by way of lease exclusively for use in activities of the partnership and for use in commercial activities thereof to the same extent that the individual’s consumption or use of the instrument during that calendar year in activities of the partnership was in commercial activities thereof, and 
  (ii) paid tax in respect of the instrument equal to the amount determined by the formula is 
  (A) where the tax paid by the individual includes only tax imposed under subsection 165(1) or section 212 or 218, the amount determined by the formula is the rate set out in subsection 165(1), and is the total of 100% and the percentage determined for C, 
  (B) where the tax paid by the individual does not include any tax imposed under any of those provisions, the amount determined by the formula is the percentage determined in prescribed manner, and is the total of 100% and the percentage determined for E, and 
  (C) in any other case, the amount determined by the formula is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and is the total of 100% and the percentage determined for G, and is the capital cost allowance in respect of that instrument that was deductible under the Income Tax Act in computing the individual’s income from the partnership for that calendar year;  
  (b) in the case of a motor vehicle or aircraft that is capital property of the individual, 
  (i) the partnership had acquired the vehicle or aircraft in that reporting period in circumstances in which subsection 202(4) applies and had used the vehicle or aircraft during that last fiscal year of the partnership in commercial activities of the partnership to the same extent that the individual’s use of the vehicle or aircraft during that calendar year in activities of the partnership was in commercial activities thereof, and 
  (ii) the capital cost allowance deductible in respect of that vehicle or aircraft under the Income Tax Act in computing the individual’s income from the partnership for that calendar year were the capital cost allowance so deductible in computing the income of the partnership for that last fiscal year of the partnership; and  
  (c) in any other case, the partnership had 
  (i) acquired the property or service exclusively for use in activities of the partnership and for use in commercial activities thereof to the same extent that the individual’s consumption or use of the property or service during that calendar year in activities of the partnership was in commercial activities thereof, and 
  (ii) paid, in that reporting period, tax in respect of that acquisition equal to the amount determined by the formula is 
  (A) where the tax paid by the individual includes only tax imposed under subsection 165(1) or section 212 or 218, the amount determined by the formula is the rate set out in subsection 165(1), and is the total of 100% and the percentage determined for C, 
  (B) where the tax paid by the individual does not include any tax imposed under any of those provisions, the amount determined by the formula is the percentage determined in prescribed manner, and is the total of 100% and the percentage determined for E, and 
  (C) in any other case, the amount determined by the formula is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and is the total of 100% and the percentage determined for G, and is 
  (A) in the case of property imported by the individual, the amount (not exceeding the total of the value of the property determined under section 215 and the tax calculated on it) in respect of the acquisition and importation of the property by the individual that was deductible under the Income Tax Act in computing the individual’s income from the partnership for that calendar year, and  
  (B) in any other case, the amount in respect of the acquisition of the property or service by the individual that was so deductible in computing that income. 
  
  ### Application for rebate
  
  (3) A rebate for a calendar year shall not be paid under subsection (1) to an individual unless, within four years after the end of the year or on or before such later day as the Minister may allow, the individual files an application for the rebate in prescribed form containing prescribed information with the Minister with a return of the individual’s income under Part I of the Income Tax Act.  
  
  ### One application for any year
  
  (4) An individual shall not make more than one application under this section for a calendar year. 
  
  ### Administration of rebates
  
  (5) Where an individual files an application for a rebate under this section, 
  (a) subsections 160.1(1) and 164(3), (3.1) and (4) of the Income Tax Act apply, with such modifications as the circumstances require, for the purposes of calculating interest on the rebate or any overpayment of the rebate as if the rebate or the overpayment were a refund of tax paid under Part I of that Act or an overpayment of such a refund, as the case may be, and, for those purposes, subsection 280(1) does not apply to the rebate; and  
  (b) sections 165 to 167 and Division J of Part I of the Income Tax Act apply, with such modifications as the circumstances require, to objections to and appeals from an assessment of the amount of the rebate as if it were an assessment of tax payable under Part I of that Act, and sections 301 to 311 do not apply to the assessment.  
  
  ### Reassessments
  
  (6) Despite subsection 298(2), if the Minister has assessed the amount of a rebate of a person payable under subsection (1), the Minister may at any time reassess or make an additional assessment of the amount of the rebate if application for the reassessment or additional assessment has been made by the person. 
  
  ### Interest on amount reassessed
  
  (7) If the Minister pays or applies an amount in respect of a rebate as a result of a reassessment or additional assessment made under subsection (6), subsection 164(3.2) of the Income Tax Act applies, with any modifications that the circumstances require, for the purpose of calculating interest in respect of the amount as if it were an overpayment determined as a result of an assessment made under subsection 152(4.2) of that Act.  
  
  ### Definitions
  
  254 (1) In this section,  
  *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* 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)  
  
  ### New housing rebate
  
  (2) Where 
  (a) a builder of a single unit residential complex or a residential condominium unit makes a taxable supply by way of sale of the complex or unit to a particular individual, 
  (b) at the time the particular individual becomes liable or assumes liability under an agreement of purchase and sale of the complex or unit entered into between the builder and the particular individual, the particular individual is acquiring the complex or unit for use as the primary place of residence of the particular individual or a relation of the particular individual, 
  (c) the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the complex or unit or for any other taxable supply to the particular individual of an interest in the complex or unit, is less than $450,000, 
  (d) the particular individual has paid all of the tax under Division II payable in respect of the supply of the complex or unit and in respect of any other supply to the individual of an interest in the complex or unit (the total of which tax under subsection 165(1) is referred to in this subsection as the “total tax paid by the particular individual”), 
  (e) ownership of the complex or unit is transferred to the particular individual after the construction or substantial renovation thereof is substantially completed, 
  (f) after the construction or substantial renovation is substantially completed and before possession of the complex or unit is given to the particular individual under the agreement of purchase and sale of the complex or unit 
  (i) in the case of a single unit residential complex, the complex was not occupied by any individual as a place of residence or lodging, and 
  (ii) in the case of a residential condominium unit, the unit was not occupied by an individual as a place of residence or lodging unless, throughout the time the complex or unit was so occupied, it was occupied as a place of residence by an individual, or a relation of an individual, who was at the time of that occupancy a purchaser of the unit under an agreement of purchase and sale of the unit, and 
  (g) either 
  (i) the first individual to occupy the complex or unit as a place of residence at any time after substantial completion of the construction or renovation is 
  (A) in the case of a single unit residential complex, the particular individual or a relation of the particular individual, and 
  (B) in the case of a residential condominium unit, an individual, or a relation of an individual, who was at that time a purchaser of the unit under an agreement of purchase and sale of the unit, or 
  (ii) the particular individual makes an exempt supply by way of sale of the complex or unit and ownership thereof is transferred to the recipient of the supply before the complex or unit 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) where the total consideration is not more than $350,000, an amount equal to the lesser of $6,300 and 36% of the total tax paid by the particular individual, and 
  (i) where the total consideration is more than $350,000 but less than $450,000, the amount determined by the formula is the lesser of $6,300 and 36% of the total tax paid by the particular individual, and is the total consideration. 
  
  ### 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. 
  
  ### Relevant transfer date
  
  (2.02) For the purpose of subsection (2.1), the relevant transfer date in respect of a residential complex that is supplied to the particular individual referred to in that subsection is the earlier of the day on which ownership of the complex is transferred to the particular individual and the day on which possession of the complex is transferred to the particular individual under the agreement for the supply. 
  
  ### 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 that is a single unit residential complex, or a residential condominium unit, for use, in Nova Scotia, as the primary place of residence of the particular individual or of a relation of the particular individual, or the particular individual would be so entitled if the total consideration (within the meaning of paragraph (2)(c)) in respect of the complex were less than $450,000, 
  (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 on which 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 the amount determined by the formula is 18.75%; and is the total of all tax under subsection 165(2) payable in respect of the supply of the complex to the particular individual and in respect of any other supply to the particular individual of an interest in the complex. 
  
  ### Application for rebate
  
  (3) A rebate under this section in respect of a residential complex or residential condominium unit shall not be paid to an individual unless the individual files an application for the rebate within two years after the day ownership of the complex or unit is transferred to the individual. 
  
  ### Application to builder
  
  (4) Where 
  (a) the builder of a single unit residential complex or a residential condominium unit has made a taxable supply of the complex or unit by way of sale to an individual and has transferred ownership of the complex or unit to the individual under the agreement for the supply, 
  (b) tax under Division II has been paid, or is payable, by the individual in respect of the supply, 
  (c) the individual, within two years after the day ownership of the complex or unit 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 or unit if the individual applied therefor within the time allowed for such an application, 
  (d) the builder agrees to pay or credit to or in favour of the individual any rebate under this section that is payable to the individual in respect of the complex, and 
  (e) the tax payable in respect of the supply has not been paid at the time the individual submits an application to the builder for the rebate and, if the individual had paid the tax and made application for the rebate, the rebate would have been payable to the individual under subsection (2) or (2.1), as the case may be, the builder may pay or credit the amount of the rebate, if any, to or in favour of the individual. 
  
  ### Forwarding of application by builder
  
  (5) Notwithstanding subsections (2) to (3), where an application of an individual for a rebate under this section in respect of a single unit residential complex or a residential condominium unit is submitted under subsection (4) to the builder of the complex or unit, 
  (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. 
  
  ### Joint and several liability
  
  (6) If the builder of a single unit residential complex or a residential condominium unit pays or credits a rebate to or in favour of an individual 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. 
  
  ### Definitions
  
  254.1 (1) In this section,  
  *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* 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* 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)  
  
  ### 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 is the lesser of $6,300 and 1.71% of the total consideration, and is the fair market value referred to in paragraph (c). 
  
  ### 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. 
  
  ### 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. 
  
  ### 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. 
  
  ### 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. 
  
  ### 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. 
  
  ### 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. 
  
  ### 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. 
  
  ### 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. 
  
  ### Meaning of 
  *relation* 
  
  255 (1) In this section, 
  *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.  
  
  ### Cooperative housing rebate
  
  (2) Where 
  (a) a cooperative housing corporation has paid tax in respect of a taxable supply to the corporation of a residential complex, 
  (b) the corporation makes a supply of a share of the capital stock of the corporation to a particular individual and transfers ownership of the share to the particular individual, 
  (c) at the time the particular individual becomes liable or assumes liability under an agreement of purchase and sale of the share entered into between the corporation and the particular individual, the particular individual is acquiring the share for the purpose of using a residential unit in the complex as the primary place of residence of the particular individual or a relation of the particular individual, 
  (d) the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the share or an interest in the corporation, complex or unit, is less than $472,500, 
  (e) after the construction or substantial renovation of the complex is substantially completed and before possession of the unit is given to the particular individual as an incidence of ownership of the share, the unit was not occupied by any individual as a place of residence or lodging, and 
  (f) either 
  (i) the first individual to occupy the unit as a place of residence after possession of the unit is given to the particular individual is the particular individual or a relation of the particular individual, or 
  (ii) the particular individual makes a supply by way of sale of the share and ownership of the share is transferred to the recipient of that supply before the unit 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 
  (g) if the total consideration is not more than $367,500, an amount equal to 1.71% of the total consideration, and 
  (h) if the total consideration is more than $367,500 but less than $472,500, the amount determined by the formula is the lesser of $6,300 and 1.71% of the total consideration, and is the total consideration. 
  
  ### 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. 
  
  ### Relevant transfer date
  
  (2.02) For the purpose of subsection (2.1), the relevant transfer date in respect of a share of the capital stock of a cooperative housing corporation that is supplied to the particular individual referred to in that subsection is the day on which ownership of the share is transferred to the particular individual. 
  
  ### Rebate in Nova Scotia
  
  (2.1) If 
  (a) a particular individual has acquired a share of the capital stock of a cooperative housing corporation for the purpose of using a residential unit in a residential complex of the corporation that is situated in Nova Scotia as the primary place of residence of the particular individual or of a relation of the particular individual, 
  (b) the corporation has paid tax under subsection 165(2) in respect of a taxable supply to the corporation of the complex, 
  (c) the particular individual is entitled to a rebate under subsection (2) in respect of the share or would be so entitled if the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the share or an interest in the corporation, complex or unit, were less than $472,500, 
  (d) 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 
  (e) if, at the time referred to in paragraph (2)(c), the particular individual is acquiring the share for the purpose of using a residential unit in the complex 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 (d)(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. 
  
  ### Application for rebate
  
  (3) A rebate under this section in respect of a share of the capital stock of a cooperative housing corporation shall not be paid to an individual unless the individual files an application for the rebate within two years after the day ownership of the share is transferred to the individual. 
  
  ### Definitions
  
  256 (1) In this section,  
  *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* 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)  
  
  ### Rebate for owner-built homes
  
  (2) Where 
  (a) a particular individual constructs or substantially renovates, or engages another person to construct or substantially renovate for the particular individual, a residential complex that is a single unit residential complex or a residential condominium unit for use as the primary place of residence of the particular individual or a relation of the particular individual, 
  (b) the fair market value of the complex, at the time the construction or substantial renovation thereof is substantially completed, is less than $450,000, 
  (c) the particular individual has paid tax in respect of the supply by way of sale to the individual of the land that forms part of the complex or an interest therein or in respect of the supply to, or importation by, the individual of any improvement thereto or, in the case of a mobile home or floating home, of the complex (the total of which tax under subsection 165(1) and sections 212 and 218 is referred to in this subsection as the “total tax paid by the particular individual”), 
  (d) either 
  (i) the first individual to occupy the complex after the construction or substantial renovation is begun is the particular individual or a relation of the particular individual, or 
  (ii) the particular individual makes an exempt supply by way of sale of the complex and ownership of the complex is transferred to the recipient 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 the amount determined by the formula is the lesser of 36% of the total tax paid by the particular individual before an application for the rebate is filed with the Minister in accordance with subsection (3), and 
  (i) if all or substantially all of that tax was paid at the rate of 5%, $6,300, 
  (ii) if all or substantially all of that tax was paid at the rate of 6%, $7,560, and 
  (iii) in any other case, the lesser of $8,750 and the amount determined by the formula is the extent (expressed as a percentage) to which that tax was paid at the rate of 7%, and is the extent (expressed as a percentage) to which that tax was paid at the rate of 6%, and is the greater of $350,000 and the fair market value of the complex referred to in paragraph (b). 
  
  ### Homes occupied before substantial completion
  
  (2.01) Where an individual acquires an improvement in respect of a residential complex that the individual is constructing or substantially renovating and tax in respect of the improvement becomes payable by the individual more than two years after the day the complex is first occupied as described in subparagraph (2)(d)(i), that tax shall not be included under paragraph (2)(c) in determining the total tax paid by the individual. 
  
  ### Owner-occupant of a residential unit
  
  (2.02) 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. 
  
  ### Relevant completion date
  
  (2.03) For the purpose of subsection (2.1), the relevant completion date of a residential complex that the particular individual referred to in that subsection has constructed or has engaged another person to construct is the day on which that construction is substantially completed. 
  
  ### Rebate in Nova Scotia
  
  (2.1) If 
  (a) a particular individual is entitled to a rebate under subsection (2) in respect of a residential complex that the particular individual has constructed or has engaged another person to construct and that is for use, in Nova Scotia, as the primary place of residence of the particular individual or a relation of the particular individual, or the particular individual would be so entitled if the fair market value of the complex, at the time the construction of the complex is substantially completed, were less than $450,000, 
  (b) the particular individual has paid all of the tax payable by the particular individual in respect of the supply by way of sale to the particular individual of the land that forms part of the complex or an interest in the land or in respect of the supply to, importation by, or bringing into Nova Scotia by, the particular individual of any improvement to the land or, in the case of a mobile home or floating home, of the complex (the total of which tax under subsection 165(2) and sections 212.1, 218.1 and 220.05 to 220.07 is referred to in this subsection as the “total tax in respect of the province paid by the particular individual”), 
  (c) 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 completion 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 completion date and that ends on the relevant completion 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 
  (d) if the particular individual has constructed or has engaged another person to construct 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 (c)(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 amount determined in prescribed manner or, if no manner is prescribed, the lesser of $1,500 and 18.75% of the total tax in respect of the province paid by the particular individual. 
  
  ### Mobile homes and floating homes
  
  (2.2) For the purposes of this section, where 
  (a) a particular individual purchases, imports or brings into Nova Scotia a mobile home or floating home that has never been used or occupied by any individual as a place of residence or lodging and does not file with the Minister, or submit to the supplier, an application for a rebate in respect of the home under section 254 or 254.1, 
  (b) the particular individual is acquiring, importing or bringing into Nova Scotia the mobile home or floating home for use as the primary place of residence of the particular individual or of a relation of the particular individual, and 
  (c) the first individual to occupy the mobile home or floating home at any time is the particular individual or a relation referred to in paragraph (b), or the particular individual at any time transfers ownership of the home under an agreement for an exempt supply by way of sale of the home, the particular individual is deemed to have constructed the mobile home or floating home and to have substantially completed the construction immediately before the earlier of the times referred to in paragraph (c) and, in the case of a mobile home or floating home imported by the individual, any use or occupation of the home outside Canada is deemed not to be use or occupation of the home. 
  
  ### 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 on or before 
  (a) the day (in this subsection referred to as the “due date”) that is two years after the earliest of 
  (i) the day that is two years after the day on which the complex is first occupied as described in subparagraph (2)(d)(i), 
  (ii) the day on which ownership is transferred as described in subparagraph (2)(d)(ii), and 
  (iii) the day on which construction or substantial renovation of the complex is substantially completed; or 
  (b) any day after the due date that the Minister may allow. 
  
  ### Rebate to owner of land leased for residential purposes
  
  256.1 (1) If an exempt supply of land described by section 6.1 or 6.11 of Part I of Schedule V is made to a particular lessee who is acquiring the land for the purpose of making a particular supply of property or a service that includes the land or a particular supply of a lease, licence or similar arrangement in respect of property that includes the land, and the particular supply 
  (a) is an exempt supply of property or a service, other than a supply that is exempt only by virtue of paragraph 6(b) of Part I of Schedule V, that 
  (i) includes giving possession or use of a residential complex, or of a residential unit forming part of a residential complex, to another person under a lease, licence or similar arrangement entered into for the purpose of its occupancy by an individual as a place of residence or lodging, or 
  (ii) is described by section 7 of Part I of Schedule V, other than an exempt supply described by paragraph 7(a) of that Part made to a person described in subparagraph 7(a)(ii) of that Part, and 
  (b) will result in the particular lessee being deemed under any of subsections 190(3) to (5) and section 191 to have made a supply of property that includes the land at a particular time, the Minister shall, subject to subsection (2), pay a rebate, to each person (in this subsection referred to as the “landlord”) who is an owner or lessee of the land and who is not the particular lessee, equal to the amount determined by the formula is the total of all tax that, before the particular time, became or would, but for section 167, have become payable by the landlord in respect of the last acquisition of the land by the landlord and the tax that was payable by the landlord in respect of improvements to the land that were acquired, imported or brought into a participating province by the landlord after that last acquisition and that were used before the particular time in the course of improving the property that includes the land, and is the total of all other rebates and input tax credits that the landlord was entitled to claim in respect of any amount included in the total for A. 
  
  ### Application for rebate
  
  (2) A rebate shall not be paid under subsection (1) to an owner or lessee of land in respect of a supply of the land made to a person who will be deemed under any of subsections 190(3) to (5) and section 191 to have made on a particular day another supply of the property that includes the land, unless the owner or lessee, as the case may be, files an application for the rebate on or before the day that is two years after the particular day. 
  
  ### Definitions
  
  256.2 (1) The definitions in this subsection apply in this section.  
  *first use*, in respect of a residential unit, means the first use of the unit after the construction or last substantial renovation of the unit or, in the case of a unit that is situated in a multiple unit residential complex, of the complex or addition to the complex in which the residential unit is situated is substantially completed. (première utilisation)   
  *percentage of total floor space*, in respect of a residential unit forming part of a residential complex or part of an addition to a multiple unit residential complex, means the proportion (expressed as a percentage) that the total square metres of floor space occupied by the unit is of the total square metres of floor space occupied by all of the residential units in the residential complex or addition, as the case may be. (pourcentage de superficie totale)   
  *qualifying portion of basic tax content*, at a particular time, of property of a person means the amount that would be the basic tax content of the property at that time if that amount were determined without reference to subparagraph (v) of the description of A in the definition 
  *basic tax content* in subsection 123(1) and if no amount of tax under any of subsections 165(2), 212.1(2) and 218.1(1) and Division IV.1 were included in determining that basic tax content. (fraction admissible de teneur en taxe)   
  *qualifying residential unit* of a person, at a particular time, means  
  (a) a residential unit of which, at or immediately before the particular time, the person is the owner, a co-owner, a lessee or a sub-lessee or has possession as purchaser under an agreement of purchase and sale, or a residential unit that is situated in a residential complex of which the person is, at or immediately before the particular time, a lessee or a sub-lessee, where 
  (i) at the particular time, the unit is a self-contained residence, 
  (ii) the person holds the unit 
  (A) for the purpose of making exempt supplies of the unit that are included in section 5.1, 6.1, 6.11 or 7 of Part I of Schedule V, 
  (A.1) for the purpose of making exempt supplies of property or a service that includes giving possession or use of the unit to a person under a lease to be entered into for the purpose of its occupancy by an individual as a place of residence, or 
  (B) if the complex in which the unit is situated includes one or more other residential units that would be qualifying residential units of the person without regard to this clause, for use as the primary place of residence of the person, 
  (iii) it is the case, or can reasonably be expected by the person at the particular time to be the case, that the first use of the unit is or will be 
  (A) as the primary place of residence of the person or a relation of the person, or of a lessor of the complex or a relation of that lessor, for a period of at least one year or for a shorter period where the next use of the unit after that shorter period is as described in clause (B), or 
  (B) as a place of residence of individuals, each of whom is given continuous occupancy of the unit, under one or more leases, for a period, throughout which the unit is used as the primary place of residence of that individual, of at least one year or for a shorter period ending when 
  (I) the unit is sold to a recipient who acquires the unit for use as the primary place of residence of the recipient or of a relation of the recipient, or 
  (II) the unit is taken for use as the primary place of residence of the person or a relation of the person or of a lessor of the complex or a relation of that lessor, and 
  (iv) except where subclause (iii)(B)(II) applies, if, at the particular time, the person intends that, after the unit is used as described in subparagraph (iii), the person will occupy it for the person’s own use or the person will supply it by way of lease as a place of residence or lodging for an individual who is a relation, shareholder, member or partner of, or not dealing at arm’s length with, the person, the person can reasonably expect that the unit will be the primary place of residence of the person or of that individual; or 
  (b) a prescribed residential unit of the person. ( habitation admissible)   
  *relation* has the meaning assigned by subsection 256(1). (proche)   
  *self-contained residence* means a residential unit  
  (a) that is a suite or room in a hotel, a motel, an inn, a boarding house or a lodging house or in a residence for students, seniors, individuals with a disability or other individuals; or 
  (b) that contains private kitchen facilities, a private bath and a private living area. ( résidence autonome)  
  
  ### Reference to “lease”
  
  (2) In this section, a reference to a “lease” shall be read as a reference to a “lease, licence or similar arrangement”. 
  
  ### Rebate in respect of land and building for residential rental accommodation
  
  (3) If 
  (a) a particular person, other than a cooperative housing corporation, 
  (i) is the recipient of a taxable supply by way of sale (in this subsection referred to as the “purchase from the supplier”) from another person of a residential complex or of an interest in a residential complex and is not a builder of the complex, or 
  (ii) is a builder of a residential complex, or of an addition to a multiple unit residential complex, that gives possession or use of a residential unit in the complex or addition to another person under a lease entered into for the purpose of its occupancy by an individual as a place of residence that results in the particular person being deemed under section 191 to have made and received a taxable supply by way of sale (in this subsection referred to as the “deemed purchase”) of the complex or addition, 
  (b) at a particular time, tax first becomes payable in respect of the purchase from the supplier or tax in respect of the deemed purchase is deemed to have been paid by the person, 
  (c) at the particular time, the complex or addition, as the case may be, is a qualifying residential unit of the person or includes one or more qualifying residential units of the person, and 
  (d) the person is not entitled to include the tax in respect of the purchase from the supplier, or the tax in respect of the deemed purchase, in determining an input tax credit of the person, the Minister shall, subject to subsections (3.1), (7) and (8), pay a rebate to the person equal to the total of all amounts each of which is an amount, in respect of a residential unit that forms part of the residential complex or addition, as the case may be, and is a qualifying residential unit of the person at the particular time, determined by the formula is the lesser of $6,300 and the amount determined by the formula is 36% of the total tax under subsection 165(1) that is payable in respect of the purchase from the supplier or is deemed to have been paid in respect of the deemed purchase, and is 
  (i) if the unit is a single unit residential complex or a residential condominium unit, 1, and 
  (ii) in any other case, the unit’s percentage of total floor space, and is the greater of $350,000 and 
  (i) if the unit is a single unit residential complex or a residential condominium unit, the fair market value of the unit at the particular time, and 
  (ii) in any other case, the amount determined by the formula is the unit’s percentage of total floor space, and is the fair market value at the particular time of the residential complex or addition, as the case may be. 
  
  ### Rebate for purpose-built rental housing
  
  (3.1) The amount of a rebate under subsection (3) in respect of a taxable supply of purpose-built rental housing — being prescribed property — is determined in accordance with subsection (3.2) if prescribed conditions are met and if 
  (a) the taxable supply is a supply by way of sale of a residential complex or an interest in a residential complex to a person that is not a builder of the residential complex, or of a residential complex or an addition to a residential complex to a person that is, otherwise than by reason of subsection 190(1), a builder of the residential complex or addition, as the case may be, and the construction or last substantial renovation of the residential complex or addition, as the case may be, begins after September 13, 2023 but before 2031 and is substantially completed before 2036; or 
  (b) the taxable supply is a supply by way of sale of a residential complex that is deemed to be made to a person that has converted real property for use as the residential complex and is, as a result, deemed under subsection 190(1) to be a builder of the residential complex and the construction or alteration necessary to effect the conversion begins after September 13, 2023 but before 2031 and is substantially completed before 2036. 
  
  ### Amount of rebate — purpose-built rental housing
  
  (3.2) If subsection (3.1) applies, the amount of the rebate under subsection (3) is equal to the amount determined as if the first formula in subsection (3) and the descriptions for that formula were read as follows: is the total tax under subsection 165(1) that is payable in respect of the purchase from the supplier or is deemed to have been paid in respect of the deemed purchase, and is 
  (i) if the unit is a residential condominium unit, 1, and 
  (ii) in any other case, the unit’s percentage of total floor space. 
  
  ### Rebate in respect of sale of building and lease of land
  
  (4) If 
  (a) a person, other than a cooperative housing corporation, is a builder of a residential complex or of an addition to a multiple unit residential complex and the person makes 
  (i) an exempt supply by way of sale, included in section 5.1 of Part I of Schedule V, of a building or part of a building, and 
  (ii) an exempt supply, included in section 7 of that Part, of land by way of lease or an exempt supply, included in that section, by way of assignment of a lease in respect of land, 
  (b) the lease provides for continuous possession or use of the land for a period of at least twenty years or it contains an option to purchase the land, 
  (c) those supplies result in the person being deemed under section 191 to have made and received a taxable supply by way of sale of the complex or addition and to have paid tax at a particular time in respect of that supply, 
  (d) in the case of a multiple unit residential complex or an addition to such a complex, the complex or addition, as the case may be, includes, at the particular time, one or more qualifying residential units of the person, 
  (e) the person is not entitled to include the tax deemed to have been paid by the person in determining an input tax credit of the person, and 
  (f) in the case of an exempt supply by way of sale of a single unit residential complex or a residential condominium unit, the recipient of that supply is entitled to claim a rebate under subsection 254.1(2) in respect of the complex or unit, the Minister shall, subject to subsections (7) and (8), pay a rebate to the person equal to the total of all amounts each of which is an amount, in respect of a residential unit that forms part of the complex or addition, as the case may be, and is, in the case of a multiple unit residential complex or an addition to such a complex, a qualifying residential unit of the person at the particular time, determined by the formula is the lesser of $6,300 and the amount determined by the formula is 36% of the tax under subsection 165(1) that is deemed to have been paid by the person at the particular time, and is 
  (i) if the unit is a single unit residential complex or a residential condominium unit, 1, and 
  (ii) in any other case, the unit’s percentage of total floor space, is the greater of $350,000 and 
  (i) if the unit is a single unit residential complex or a residential condominium unit, the fair market value of the unit at the particular time, and 
  (ii) in any other case, the amount determined by the formula is the unit’s percentage of total floor space, and is the fair market value at the particular time of the residential complex or addition, as the case may be, and is the amount of the rebate, if any, under subsection 254.1(2) that the recipient of the exempt supply by way of sale is entitled to claim in respect of the complex or unit. 
  
  ### Rebate for cooperative housing corporation
  
  (5) If 
  (a) a cooperative housing corporation (in this subsection referred to as the “cooperative”) 
  (i) is the recipient of a taxable supply by way of sale (in this subsection referred to as the “purchase from the supplier”) from another person of a residential complex or of an interest in a residential complex and is not a builder of the complex, or 
  (ii) is a builder of a residential complex, or of an addition to a multiple unit residential complex, who makes an exempt supply by way of lease included in section 6 of Part I of Schedule V that results in the cooperative being deemed under section 191 to have made and received a taxable supply by way of sale (in this subsection referred to as the “deemed purchase”) of the complex or addition and to have paid tax in respect of that supply, 
  (b) the cooperative is not entitled to include the tax in respect of the purchase from the supplier, or the tax in respect of the deemed purchase, in determining an input tax credit of the cooperative, and 
  (c) at any time at which a residential unit included in the complex is a qualifying residential unit of the cooperative, the cooperative first gives occupancy of the unit after its construction or last substantial renovation under an agreement for a supply of that unit that is an exempt supply included in section 6 of Part I of Schedule V, the Minister shall, subject to subsections (7) and (8), pay a rebate to the cooperative in respect of that unit equal to the amount determined by the formula is the lesser of $6,300 and the amount determined by the formula is 36% of the total tax under subsection 165(1) that is payable in respect of the purchase from the supplier or is deemed to have been paid in respect of the deemed purchase, and is 
  (i) if the unit is a single unit residential complex, 1, and 
  (ii) in any other case, the unit’s percentage of total floor space, is the greater of $350,000 and 
  (i) if the unit is a single unit residential complex or a residential condominium unit, the fair market value of the unit at the particular time at which tax first becomes payable in respect of the purchase from the supplier or tax in respect of the deemed purchase is deemed to have been paid by the cooperative, and 
  (ii) in any other case, the amount determined by the formula is the unit’s percentage of total floor space, and is the fair market value of the complex at the particular time, and is the amount of the rebate, if any, under subsection 255(2) that the recipient of the exempt supply of the unit was entitled to claim in respect of the unit. 
  
  ### Rebate for land leased for residential purposes
  
  (6) If 
  (a) a person makes an exempt supply of land 
  (i) that is a supply included in paragraph 7(a) of Part I of Schedule V made to a person described in subparagraph (i) of that paragraph, or that is a supply, included in paragraph 7(b) of that Part, of a site in a residential trailer park, and 
  (ii) that results in the person being deemed under any of subsections 190(3) to (5), 200(2), 206(4) and 207(1) to have made and received a taxable supply by way of sale of the land and to have paid tax, at a particular time, in respect of that supply, 
  (b) in the case of an exempt supply of land described in paragraph 7(a) of Part I of Schedule V, the residential unit that is or is to be affixed to the land is or will be so affixed for the purpose of its use and enjoyment as a primary place of residence for individuals, and 
  (c) the person is not entitled to include the tax deemed to have been paid by the person in determining an input tax credit of the person, the Minister shall, subject to subsections (7) and (8), pay a rebate to the person equal to the amount determined by the formula is 
  (i) in the case of a taxable supply in respect of which the person is deemed to have paid tax calculated on the fair market value of the land, 36% of the tax under subsection 165(1) that is deemed to have been paid in respect of that supply, and 
  (ii) in the case of a taxable supply in respect of which the person is deemed to have paid tax equal to the basic tax content of the land, 36% of the qualifying portion of the basic tax content of the land at the particular time, and is the greater of $87,500 and 
  (i) in the case of a supply of land included in paragraph 7(a) of Part I of Schedule V, the fair market value of the land at the particular time, and 
  (ii) in the case of a supply of a site in a residential trailer park or in an addition to a residential trailer park, the fair market value, at the particular time, of the park or addition, as the case may be, divided by the total number of sites in the park or addition, as the case may be, at the particular time. 
  
  ### Adjustment for transitional rebate
  
  (6.1) For the purposes of determining the amount of a particular rebate in respect of a residential complex, an interest in a residential complex or an addition to a multiple unit residential complex payable to a person under any of subsections (3) to (5), the amount of the total tax under subsection 165(1) included in the calculation made under the formulae in subsections (3) to (5) shall be reduced by the total of all rebates payable to the person under any of sections 256.3 to 256.77 in respect of the residential complex, interest or addition, as the case may be, if the person 
  (a) was not entitled to the particular rebate under this section as it read immediately after it was last amended by an Act of Parliament that was assented to before February 26, 2008; and 
  (b) is entitled to the particular rebate under this section as it reads immediately after the Budget Implementation Act, 2008 has been assented to.  
  
  ### Application for rebate and payment of tax
  
  (7) A rebate shall not be paid to a person under this section unless 
  (a) the person files an application for the rebate within two years after 
  (i) in the case of a rebate under subsection (5), the end of the month in which the person makes the exempt supply referred to in subparagraph (5)(a)(ii), 
  (ii) in the case of a rebate under subsection (6), the end of the month in which the tax referred to in that subsection is deemed to have been paid by the person, and 
  (iii) in any other case of a rebate in respect of a residential unit, the end of the month in which tax first becomes payable by the person, or is deemed to have been paid by the person, in respect of the unit or interest in the unit or in respect of the residential complex or addition, or interest therein, in which the unit is situated; 
  (b) if the rebate is in respect of a taxable supply received by the person from another person, the person has paid all of the tax payable in respect of that supply; and 
  (c) if the rebate is in respect of a taxable supply in respect of which the person is deemed to have collected tax in a reporting period of the person, the person has reported the tax in the person’s return under Division V for the reporting period and has remitted all net tax remittable, if any, as reported in that return. 
  
  ### Special rules
  
  (8) For the purposes of this section, 
  (a) if, at any time, substantially all of the residential units in a multiple unit residential complex containing ten or more residential units are residential units in respect of which the condition set out in subparagraph (a)(iii) of the definition 
  *qualifying residential unit* in subsection (1) is satisfied, all of the residential units in the complex are deemed to be residential units in respect of which that condition is satisfied at that time; and  
  (b) except in the case of residential units referred to in paragraph (a) of the definition 
  *self-contained residence* in subsection (1),  
  (i) the two residential units that are located in a multiple unit residential complex containing only those two residential units are deemed to together form a single residential unit, and the complex is deemed to be a single unit residential complex and not to be a multiple unit residential complex, and 
  (ii) if a residential unit (in this subparagraph referred to as a “specified unit”) in a building affords direct internal access (with or without the use of a key or similar device) to another area of the building that is all or part of the living area of a particular residential unit, the specified unit is deemed to be part of the particular residential unit and not to be a separate residential unit. 
  
  ### Restrictions
  
  (9) No rebate shall be paid to a person under this section if all or part of the tax included in determining the rebate would otherwise be included in determining a rebate of the person under any of sections 254, 256, 256.1 and 259 and, in determining the rebate of a person under this section, there shall not be included any amount of tax that the person is, under an Act of Parliament (other than this Act) or any other law, 
  (a) not required to pay or remit; or 
  (b) entitled to recover by way of a rebate, refund or remission. 
  
  ### Public service bodies — purpose-built rental housing
  
  (9.1) If a person that is a public service body is entitled to a rebate under section 259 in respect of the tax under subsection 165(1) that is payable in respect of a purchase from the supplier (within the meaning of subparagraph (3)(a)(i)) or a deemed purchase (within the meaning of subparagraph (3)(a)(ii)), if subsection (3.1) applies in respect of the purchase from the supplier or the deemed purchase and if the person files in accordance with subsection (7) an application for a rebate under subsection (3) in respect of the purchase from the supplier or the deemed purchase, the following rules apply: 
  (a) the reference in subsection (9) to “sections 254, 256, 256.1 and 259” is to be read as a reference to “sections 254, 256 and 256.1” in applying subsection (9) in respect of the tax included in determining the rebate under subsection (3); and 
  (b) no amount of the tax included in determining the rebate under subsection (3) may be included in determining a rebate of the person under section 259. 
  
  ### Repayment of rebate
  
  (10) If a person was entitled to claim a rebate under subsection (3) in respect of a qualifying residential unit (other than a unit located in a multiple unit residential complex) and, within one year after the unit is first occupied as a place of residence after the construction or last substantial renovation of the unit was substantially completed, the person makes a supply by way of sale (other than a supply deemed under section 183 or 184 to have been made) of the unit to a purchaser who is not acquiring the unit for use as the primary place of residence of the purchaser or of a relation of the purchaser, the person shall pay to the Receiver General an amount equal to the rebate plus interest at the prescribed rate less 2% per year, calculated on that amount for the period beginning on the day the rebate was paid or applied to a liability of the person and ending on the day the amount of the rebate is paid by the person to the Receiver General. 
  
  ### Housing rebates — participating provinces
  
  256.21 (1) If a sales tax harmonization agreement with the government of a participating province allows for rebates in respect of residential property relating to the new harmonized value-added tax system in respect of that participating province, the Minister shall pay in prescribed circumstances a rebate in respect of prescribed property to a prescribed person, or a person of a prescribed class, equal to an amount determined in prescribed manner. 
  
  ### Application for rebate
  
  (2) A rebate in respect of an amount shall not be paid under subsection (1) to a person unless the person files an application for the rebate within the prescribed time. 
  
  ### Payment or credit of rebates
  
  (3) In the case of a rebate under subsection (1) (other than a rebate prescribed under subsection (6)), in prescribed circumstances, a prescribed person, or a person of a prescribed class, may pay or credit the amount of a rebate under subsection (1) to an individual of a prescribed class if the individual submits to the person in prescribed manner an application in prescribed form containing prescribed information. 
  
  ### Forwarding of application
  
  (4) If an application in respect of a rebate is submitted to a person under subsection (3) 
  (a) the person shall transmit the application to the Minister in prescribed manner on or before the day on or before which the person’s return under Division V for the reporting period in which the rebate is paid or credited is required to be filed; and 
  (b) interest under subsection 297(4) is not payable in respect of the rebate. 
  
  ### Joint and several liability — subsection (3)
  
  (5) If a particular person pays or credits an amount of a rebate to another person under subsection (3), and the particular person knows or ought to know that the other person is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the other person is entitled, the particular person and the other person are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264. 
  
  ### Assignment
  
  (6) In the case of a rebate that is payable under subsection (1) in relation to the transition of a province to the new harmonized value-added tax system and that is prescribed for the purposes of this subsection, a person that is prescribed for the purposes of subsection (1) may, despite section 67 of the Financial Administration Act and any other provision of a law of Canada or a province, assign the rebate in prescribed circumstances to a prescribed person or a person of a prescribed class.  
  
  ### Form and manner of assignment
  
  (7) An assignment made under subsection (6) of a rebate in respect of a participating province shall be made in prescribed form containing prescribed information and the form shall be filed with the Minister in prescribed manner on or before the day that is four years after the harmonization date for the participating province. 
  
  ### Effect of assignment
  
  (8) An assignment made under subsection (6) is not binding on Her Majesty in right of Canada and, without limiting the generality of the foregoing, 
  (a) the Minister is not required to pay to the assignee the assigned amount; 
  (b) the assignment does not create any liability of Her Majesty in right of Canada to the assignee; and 
  (c) the rights of the assignee are subject to all equitable and statutory rights of set-off in favour of Her Majesty in right of Canada. 
  
  ### Joint and several liability — subsection (6)
  
  (9) If an amount of a rebate is assigned to a particular person by another person under subsection (6) and the particular person knows or ought to know that the other person is not entitled to the rebate or that the amount assigned exceeds the rebate to which the other person is entitled, the particular person and the other person are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264. 
  
  ### Assessment
  
  (10) The Minister may at any time assess an assignee in respect of any amount payable by reason of subsection (9) and sections 296 to 311 apply with any modifications that the circumstances may require. 
  
  ### Transitional rebate
  
  256.3 (1) If a particular person, other than a cooperative housing corporation, 
  (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after July 1, 2006, 
  (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and 
  (c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection, in respect of the tax referred to in paragraph (b), the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to 1% of the value of the consideration for the supply. 
  
  ### Transitional rebate
  
  (2) If a particular person, other than a cooperative housing corporation, 
  (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after July 1, 2006, 
  (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and 
  (c) is entitled to claim a rebate under subsection 256.2(3) in respect of any residential unit situated in the complex, the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to the amount determined by the formula is the consideration payable for the supply to the particular person of the complex, and is the amount of the rebate under subsection 256.2(3) that the particular person is entitled to claim in respect of the complex. 
  
  ### Transitional rebate
  
  (3) If a particular person, other than a cooperative housing corporation, 
  (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after July 1, 2006, 
  (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and 
  (c) is entitled to claim a rebate under section 259 in respect of the tax referred to in paragraph (b) and is not entitled to claim any input tax credit or any other rebate, other than a rebate under this subsection, in respect of that tax, the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to the amount determined by the formula is the consideration payable for the supply to the particular person of the complex, and is 
  (i) in the case where the complex is situated in a participating province, the amount of the rebate under section 259 that the particular person would have been entitled to claim if no tax under subsection 165(2) would have been payable or paid in respect of the complex, and 
  (ii) in any other case, the amount of the rebate under section 259 that the partic­ular person is entitled to claim in respect of the complex. 
  
  ### Transitional rebate
  
  (4) If a cooperative housing corporation 
  (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the corporation on or after July 1, 2006, 
  (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and 
  (c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under section 256.2 or 259, in respect of the tax referred to in paragraph (b), the Minister shall, subject to subsection (7), pay a rebate to the corporation equal to the amount determined by the formula is the consideration payable for the supply, and is 
  (i) if the corporation is entitled to claim a rebate under section 259 in respect of the complex, 
  (A) in the case where the complex is situated in a participating province, the amount of the rebate under section 259 that the corporation would have been entitled to claim if no tax under subsection 165(2) would have been payable or paid in respect of the complex, and 
  (B) in any other case, the amount of the rebate under section 259 that the corporation is entitled to claim in respect of the complex, 
  (ii) 36% of the tax paid under subsection 165(1) by the corporation in respect of the supply if the corporation is not entitled to claim a rebate under section 259 in respect of the complex, and 
  (A) the corporation is entitled to, or can reasonably expect to be entitled to, claim a rebate under section 256.2 in respect of any residential unit situated in the complex, or 
  (B) it is the case that, or it can reasonably be expected that, a share of the capital stock of the corporation is or will be sold to an individual for the purpose of using a residential unit in the complex as the primary place of residence of the individual, or of a relation (as defined in subsection 255(1)) of the individual, and that the individual is or will be entitled to claim a rebate under section 255 in respect of the share, and 
  (iii) in any other case, zero. 
  
  ### Transitional rebate
  
  (5) If a particular individual 
  (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular individual on or after July 1, 2006, 
  (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and 
  (c) is entitled to claim a rebate under subsection 254(2) in respect of the complex, the Minister shall, subject to subsection (7), pay a rebate to the particular individual equal to the amount determined by the formula is the total of all amounts, each of which is the consideration payable for the supply to the particular individual of the complex or for any other taxable supply to the particular individual of an interest in the complex in respect of which the particular individual has paid tax under subsection 165(1) calculated at the rate of 7%, and is the amount of the rebate under subsection 254(2) that the particular individual is entitled to claim in respect of the complex. 
  
  ### Group of individuals
  
  (6) If a supply of a residential complex is made to two or more individuals, the references in subsection (5) to a particular individual shall be read as references to all of those individuals as a group, but only the particular individual that applied for the rebate under section 254 may apply for the rebate under subsection (5). 
  
  ### Application for rebate
  
  (7) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after the day on which ownership of the complex is transferred to the person. 
  
  ### Transitional rebate where section 254.1 applies
  
  256.4 (1) If 
  (a) under an agreement, evidenced in writing, entered into on or before May 2, 2006, between a particular person and a builder of a residential complex that is a single unit residential complex or a residential condominium unit, the particular person is the recipient of 
  (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and 
  (ii) an exempt supply by way of sale of the building or part of it in which the residential unit forming part of the complex is situated, 
  (b) possession of the complex is given to the particular person under the agreement on or after July 1, 2006, 
  (c) the builder is deemed under subsection 191(1) to have made and received a supply of the complex as a consequence of giving possession of the complex to the particular person under the agreement and to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and 
  (d) the particular person is entitled to claim a rebate under subsection 254.1(2) in respect of the complex, the Minister shall, subject to subsection (4), 
  (e) pay a rebate to the particular person equal to the amount determined by the formula is the amount determined by the formula is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) 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 is 
  (i) if the complex is situated in a participating province, 115, and 
  (ii) in any other case, 107, and is the amount of the rebate under subsection 254.1(2) that the particular person is entitled to claim in respect of the complex, and 
  (f) if the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.2(4), in respect of the tax referred to in paragraph (c), pay a rebate to the builder equal to the amount determined by the formula is the fair market value of the complex at the time that the builder is deemed to have made the supply referred to in paragraph (c), is the amount determined for A under paragraph (e), and is the amount of the rebate, if any, that the builder is entitled to claim under subsection 256.2(4). 
  
  ### Transitional rebate where section 254.1 does not apply
  
  (2) If 
  (a) under an agreement, evidenced in writing, entered into on or before May 2, 2006, between a particular person and a builder of a residential complex that is a single unit residential complex or a residential condominium unit, the particular person is the recipient of 
  (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and 
  (ii) an exempt supply by way of sale of the building or part of it in which the residential unit forming part of the complex is situated, 
  (b) possession of the complex is given to the particular person under the agreement on or after July 1, 2006, 
  (c) the builder is deemed under subsection 191(1) to have made and received a supply of the complex as a consequence of giving possession of the complex to the particular person under the agreement and to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and 
  (d) the particular person is not entitled to claim a rebate under subsection 254.1(2) in respect of the complex, the Minister shall, subject to subsection (4), 
  (e) pay a rebate to the particular person equal to the amount determined by the formula is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) 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 is 
  (i) if the complex is situated in a participating province, 115, and 
  (ii) in any other case, 107, and 
  (f) if the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection, in respect of the tax referred to in paragraph (c), pay a rebate to the builder equal to the amount determined by the formula is the fair market value of the complex at the time the builder is deemed to have made the supply referred to in paragraph (c), is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) 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 is 
  (i) if the complex is situated in a participating province, 115, and 
  (ii) in any other case, 107. 
  
  ### Group of individuals
  
  (3) If the supplies described in subsection (1) or (2) are made to two or more individuals, the references in that subsection to a particular person shall be read as references to all of those individuals as a group, but, in the case of a rebate where paragraph (1)(e) applies, only the individual that applied for the rebate under section 254.1 may apply for the rebate under subsection (1). 
  
  ### Application for rebate
  
  (4) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after 
  (a) in the case of a rebate to a person other than the builder of the complex, the day on which possession of the complex is transferred to the person, and 
  (b) in the case of a rebate to the builder of the complex, the end of the month in which the tax referred to in paragraph (1)(c) or (2)(c) is deemed to have been paid by the builder. 
  
  ### Transitional rebate for purchaser
  
  256.5 (1) Where 
  (a) under an agreement, evidenced in writing, entered into between a particular person and a builder of a residential complex, other than a single unit residential complex or a residential condominium unit, or an addition to it, the particular person is the recipient of 
  (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and 
  (ii) an exempt supply by way of sale of the building or part of it in which a residential unit forming part of the complex or the addition is situated, 
  (b) possession of a residential unit forming part of the complex or the addition is given to the particular person under the agreement on or after July 1, 2006, 
  (c) the builder is deemed under subsection 191(3) or (4) to have made and received a supply of the complex or the addition as a consequence of giving possession 
  (i) of the residential unit to the particular person under the agreement, or 
  (ii) of a residential unit forming part of the complex or the addition to another person under an agreement described in paragraph (a) entered into between the other person and the builder, 
  (d) the builder is deemed to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and 
  (e) if the builder is deemed to have paid the tax referred to in paragraph (d) on or after July 1, 2006, it is the case that the builder and 
  (i) the particular person entered into the agreement on or before May 2, 2006, or 
  (ii) a person, other than the particular person, on or before May 2, 2006, entered into an agreement described in paragraph (a) in respect of a residential unit situated in the residential complex or in the addition that the builder is deemed to have supplied (as described in paragraph (c)) and that agreement was not terminated before July 1, 2006, the Minister shall, subject to subsection (3), 
  (f) if the particular person is entitled to claim a rebate under subsection 254.1(2) in respect of the complex, pay a rebate to the particular person equal to the amount determined by the formula is the amount determined by the formula is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex or the addition, 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 is 
  (i) if the complex is situated in a participating province, 115, and 
  (ii) in any other case, 107, and is the amount of the rebate under subsection 254.1 that the particular person is entitled to claim in respect of the complex, and 
  (g) if the particular person is not entitled to claim a rebate under subsection 254.1(2) in respect of the complex, pay a rebate to the particular person equal to the amount determined by the formula is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of a building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex or the addition, 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 is 
  (i) if the complex is situated in a participating province, 115, and 
  (ii) in any other case, 107. 
  
  ### Group of individuals
  
  (2) If the supplies described in subsection (1) are made to two or more individuals, the references in that subsection to a particular person shall be read as references to all of those individuals as a group, but, in the case of a rebate under paragraph (1)(f), only the individ­ual that applied for the rebate under section 254.1 may apply for the rebate under that paragraph. 
  
  ### Application for rebate
  
  (3) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after the day on which possession of the unit referred to in paragraph (1)(b) is transferred to the person. 
  
  ### Transitional rebate for builder
  
  256.6 (1) If 
  (a) under an agreement, evidenced in writing, entered into between a particular person and a builder of a residential complex, other than a single unit residential complex or a residential condominium unit, or an addition to it the particular person is the recipient of 
  (i) an exempt supply by way of lease of the land forming part of the complex or a supply of such a lease by way of assignment, and 
  (ii) an exempt supply by way of sale of the building or part of it in which a residential unit forming part of the complex or the addition is situated, 
  (b) the builder is deemed under subsection 191(3) or (4) to have made and received on or after July 1, 2006, a supply of the complex or the addition as a consequence of giving possession 
  (i) of the residential unit to the particular person under the agreement, or 
  (ii) of a residential unit forming part of the complex or the addition to another person under an agreement described in paragraph (a) entered into between the other person and the builder, 
  (c) the builder and 
  (i) the particular person entered into the agreement on or before May 2, 2006, or 
  (ii) a person, other than the particular person, on or before May 2, 2006, entered into an agreement described in paragraph (a) in respect of a residential unit situated in the residential complex or in the addition that the builder is deemed to have supplied (as described in paragraph (b)) and that agreement was not terminated before July 1, 2006, 
  (d) the builder is deemed to have paid tax under subsection 165(1) in respect of the supply referred to in paragraph (b) calculated at the rate of 7%, and 
  (e) the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.2(4), in respect of the tax referred to in paragraph (d), the Minister shall, subject to subsection (2), pay a rebate to the builder equal to the amount determined by the formula is the amount determined by the formula is the fair market value of the complex or, if the builder is deemed to have made a supply of an addition, of the addition, at the time the builder is deemed to have made the supply referred to in paragraph (b), is 
  (i) if the builder is deemed to have made a supply of a complex, the total of all amounts, each of which is the consideration payable by a person to the builder for the supply by way of sale to the person of the building or part of it forming part of the complex or of any other structure that forms part of the complex, or 
  (ii) if the builder is deemed to have made a supply of an addition, the total of all amounts, each of which is the consideration payable by a person to the builder for the supply by way of sale to the person of the building or part of it forming part of the addition or of any other structure that forms part of the addition, and is 
  (i) if the complex is situated in a participating province, 115, and 
  (ii) in any other case, 107, and is the rebate, if any, under subsection 256.2(4) that the builder is entitled to claim in respect of the complex or, if the builder is deemed to have made a supply of an addition, the addition. 
  
  ### Application for rebate
  
  (2) A rebate under this section in respect of a residential complex or an addition to it shall not be paid to a builder, unless the builder files an application for the rebate within two years after the end of the month in which tax referred to in subsection (1) is deemed to have been paid by the builder. 
  
  ### Transitional rebate — 2008 rate reduction
  
  256.7 (1) If a particular person, other than a cooperative housing corporation, 
  (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008, 
  (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and 
  (c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.3(1), in respect of the tax referred to in paragraph (b), the Minister shall, subject to subsection (7), pay a rebate to the particular person, in addition to the rebate payable under subsection 256.3(1), equal to 1% of the value of the consideration for the supply. 
  
  ### Transitional rebate — 2008 rate reduction
  
  (2) If a particular person, other than a cooperative housing corporation, 
  (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008, 
  (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and 
  (c) is entitled to claim a rebate under subsection 256.2(3) in respect of any residential unit situated in the complex, the Minister shall, subject to subsection (7), pay a rebate to the particular person, in addition to the rebate payable under subsection 256.3(2), equal to the amount determined by the formula is the consideration payable for the supply to the particular person of the complex, and is the amount of the rebate under subsection 256.2(3) that the particular person is entitled to claim in respect of the complex. 
  
  ### Transitional rebate — 2008 rate reduction
  
  (3) If a particular person, other than a cooperative housing corporation, 
  (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008, 
  (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and 
  (c) is entitled to claim a rebate under section 259 in respect of the tax referred to in paragraph (b) and is not entitled to claim any input tax credit or any other rebate, other than a rebate under this subsection or under subsection 256.3(3), in respect of that tax, the Minister shall, subject to subsection (7), pay a rebate to the particular person, in addition to the rebate payable under subsection 256.3(3), equal to the amount determined by the formula is the consideration payable for the supply to the particular person of the complex, and is 
  (i) in the case where the complex is situated in a participating province, the amount of the rebate under section 259 that the particular person would have been entitled to claim if no tax under subsection 165(2) would have been payable or paid in respect of the complex, and 
  (ii) in any other case, the amount of the rebate under section 259 that the particular person is entitled to claim in respect of the complex. 
  
  ### Transitional rebate — 2008 rate reduction
  
  (4) If a cooperative housing corporation 
  (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the corporation on or after January 1, 2008, 
  (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and 
  (c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection, section 256.2, subsection 256.3(4) or section 259 in respect of the tax referred to in paragraph (b), the Minister shall, subject to subsection (7), pay a rebate to the corporation, in addition to the rebate payable under subsection 256.3(4), equal to the amount determined by the formula is the consideration payable for the supply, and is 
  (i) if the corporation is entitled to claim a rebate under section 259 in respect of the complex, 
  (A) in the case where the complex is situated in a participating province, the amount of the rebate under section 259 that the corporation would have been entitled to claim if no tax under subsection 165(2) would have been payable or paid in respect of the complex, and 
  (B) in any other case, the amount of the rebate under section 259 that the corporation is entitled to claim in respect of the complex, 
  (ii) 36% of the tax paid under subsection 165(1) by the corporation in respect of the supply if the corporation is not entitled to claim a rebate under section 259 in respect of the complex, and 
  (A) the corporation is entitled to, or can reasonably expect to be entitled to, claim a rebate under section 256.2 in respect of any residential unit situated in the complex, or 
  (B) it is the case that, or it can reasonably be expected that, a share of the capital stock of the corporation is or will be sold to an individual for the purpose of using a residential unit in the complex as the primary place of residence of the individual, or of a relation (as defined in subsection 255(1)) of the individual, and that the individual is or will be entitled to claim a rebate under section 255 in respect of the share, and 
  (iii) in any other case, zero. 
  
  ### Transitional rebate — 2008 rate reduction
  
  (5) If a particular individual 
  (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into on or before May 2, 2006, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular individual on or after January 1, 2008, 
  (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and 
  (c) is entitled to claim a rebate under subsection 254(2) in respect of the complex, the Minister shall, subject to subsection (7), pay a rebate to the particular individual, in addition to the rebate payable under subsection 256.3(5), equal to the amount determined by the formula is the total of all amounts, each of which is the consideration payable for the supply to the particular individual of the complex or for any other taxable supply to the particular individual of an interest in the complex in respect of which the particular individual has paid tax under subsection 165(1) calculated at the rate of 7%, and is the amount of the rebate under subsection 254(2) that the particular individual is entitled to claim in respect of the complex. 
  
  ### Group of individuals
  
  (6) If a supply of a residential complex is made to two or more individuals, the references in subsection (5) to a particular individual shall be read as references to all of those individuals as a group, but only the particular individual that applied for the rebate under section 254 may apply for the rebate under subsection (5). 
  
  ### Application for rebate
  
  (7) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after the day on which ownership of the complex is transferred to the person. 
  
  ### Transitional rebate where section 254.1 applies — 2008 rate reduction
  
  256.71 (1) If 
  (a) under an agreement, evidenced in writing, entered into on or before May 2, 2006, between a particular person and a builder of a residential complex that is a single unit residential complex or a residential condominium unit, the particular person is the recipient of 
  (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and 
  (ii) an exempt supply by way of sale of the building or part of it in which the residential unit forming part of the complex is situated, 
  (b) possession of the complex is given to the particular person under the agreement on or after January 1, 2008, 
  (c) the builder is deemed under subsection 191(1) to have made and received a supply of the complex as a consequence of giving possession of the complex to the particular person under the agreement and to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and 
  (d) the particular person is entitled to claim a rebate under subsection 254.1(2) in respect of the complex, the Minister shall, subject to subsection (4), 
  (e) pay a rebate to the particular person, in addition to the rebate payable under subsection 256.4(1), equal to the amount determined by the formula is the amount determined by the formula is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) 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 is 
  (i) if the complex is situated in a participating province, 115, and 
  (ii) in any other case, 107, and is the amount of the rebate under subsection 254.1(2) that the particular person is entitled to claim in respect of the complex, and 
  (f) if the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.2(4) or 256.4(1), in respect of the tax referred to in paragraph (c), pay a rebate to the builder, in addition to the rebate payable under subsection 256.4(1), equal to the amount determined by the formula is the fair market value of the complex at the time that the builder is deemed to have made the supply referred to in paragraph (c), is the amount determined for A under paragraph (e), and is the amount of the rebate, if any, that the builder is entitled to claim under subsection 256.2(4). 
  
  ### Transitional rebate where section 254.1 does not apply — 2008 rate reduction
  
  (2) If 
  (a) under an agreement, evidenced in writing, entered into on or before May 2, 2006, between a particular person and a builder of a residential complex that is a single unit residential complex or a residential condominium unit, the particular person is the recipient of 
  (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and 
  (ii) an exempt supply by way of sale of the building or part of it in which the residential unit forming part of the complex is situated, 
  (b) possession of the complex is given to the particular person under the agreement on or after January 1, 2008, 
  (c) the builder is deemed under subsection 191(1) to have made and received a supply of the complex as a consequence of giving possession of the complex to the particular person under the agreement and to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and 
  (d) the particular person is not entitled to claim a rebate under subsection 254.1(2) in respect of the complex, the Minister shall, subject to subsection (4), 
  (e) pay a rebate to the particular person, in addition to the rebate payable under subsection 256.4(2), equal to the amount determined by the formula is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) 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 is 
  (i) if the complex is situated in a participating province, 115, and 
  (ii) in any other case, 107, and 
  (f) if the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.4(2), in respect of the tax referred to in paragraph (c), pay a rebate to the builder, in addition to the rebate payable under subsection 256.4(2), equal to the amount determined by the formula is the fair market value of the complex at the time the builder is deemed to have made the supply referred to in paragraph (c), is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) 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 is 
  (i) if the complex is situated in a participating province, 115, and 
  (ii) in any other case, 107. 
  
  ### Group of individuals
  
  (3) If the supplies described in subsection (1) or (2) are made to two or more individuals, the references in that subsection to a particular person shall be read as references to all of those individuals as a group, but, in the case of a rebate where paragraph (1)(e) applies, only the individual that applied for the rebate under section 254.1 may apply for the rebate under subsection (1). 
  
  ### Application for rebate
  
  (4) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after 
  (a) in the case of a rebate to a person other than the builder of the complex, the day on which possession of the complex is transferred to the person; and 
  (b) in the case of a rebate to the builder of the complex, the end of the month in which the tax referred to in paragraph (1)(c) or (2)(c) is deemed to have been paid by the builder. 
  
  ### Transitional rebate for purchaser — 2008 rate reduction
  
  256.72 (1) Where 
  (a) under an agreement, evidenced in writing, entered into between a particular person and a builder of a residential complex, other than a single unit residential complex or a residential condominium unit, or an addition to it, the particular person is the recipient of 
  (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and 
  (ii) an exempt supply by way of sale of the building or part of it in which a residential unit forming part of the complex or the addition is situated, 
  (b) possession of a residential unit forming part of the complex or the addition is given to the particular person under the agreement on or after January 1, 2008, 
  (c) the builder is deemed under subsection 191(3) or (4) to have made and received a supply of the complex or the addition as a consequence of giving possession 
  (i) of the residential unit to the particular person under the agreement, or 
  (ii) of a residential unit forming part of the complex or the addition to another person under an agreement described in paragraph (a) entered into between the other person and the builder, 
  (d) the builder is deemed to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 7%, and 
  (e) if the builder is deemed to have paid the tax referred to in paragraph (d) on or after January 1, 2008, it is the case that the builder and 
  (i) the particular person entered into the agreement on or before May 2, 2006, or 
  (ii) a person, other than the particular person, on or before May 2, 2006, entered into an agreement described in paragraph (a) in respect of a residential unit situated in the residential complex or in the addition that the builder is deemed to have supplied (as described in paragraph (c)) and that agreement was not terminated before July 1, 2006, the Minister shall, subject to subsection (3), 
  (f) if the particular person is entitled to claim a rebate under subsection 254.1(2) in respect of the complex, pay a rebate to the particular person, in addition to the rebate payable under subsection 256.5(1), equal to the amount determined by the formula is the amount determined by the formula is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex or the addition, 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 is 
  (i) if the complex is situated in a participating province, 115, and 
  (ii) in any other case, 107, and is the amount of the rebate under subsection 254.1 that the particular person is entitled to claim in respect of the complex, and 
  (g) if the particular person is not entitled to claim a rebate under subsection 254.1(2) in respect of the complex, pay a rebate to the particular person, in addition to the rebate payable under subsection 256.5(1), equal to the amount determined by the formula is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of a building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex or the addition, 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 is 
  (i) if the complex is situated in a participating province, 115, and 
  (ii) in any other case, 107. 
  
  ### Group of individuals
  
  (2) If the supplies described in subsection (1) are made to two or more individuals, the references in that subsection to a particular person shall be read as references to all of those individuals as a group, but, in the case of a rebate under paragraph (1)(f), only the individual that applied for the rebate under section 254.1 may apply for the rebate under that paragraph. 
  
  ### Application for rebate
  
  (3) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after the day on which possession of the unit referred to in paragraph (1)(b) is transferred to the person. 
  
  ### Transitional rebate for builder — 2008 rate reduction
  
  256.73 (1) If 
  (a) under an agreement, evidenced in writing, entered into between a particular person and a builder of a residential complex, other than a single unit residential complex or a residential condominium unit, or an addition to it, the particular person is the recipient of 
  (i) an exempt supply by way of lease of the land forming part of the complex or a supply of such a lease by way of assignment, and 
  (ii) an exempt supply by way of sale of the building or part of it in which a residential unit forming part of the complex or the addition is situated, 
  (b) the builder is deemed under subsection 191(3) or (4) to have made and received on or after January 1, 2008, a supply of the complex or the addition as a consequence of giving possession 
  (i) of the residential unit to the particular person under the agreement, or 
  (ii) of a residential unit forming part of the complex or the addition to another person under an agreement described in paragraph (a) entered into between the other person and the builder, 
  (c) the builder and 
  (i) the particular person entered into the agreement on or before May 2, 2006, or 
  (ii) a person, other than the particular person, on or before May 2, 2006, entered into an agreement described in paragraph (a) in respect of a residential unit situated in the residential complex or in the addition that the builder is deemed to have supplied (as described in paragraph (b)) and that agreement was not terminated before July 1, 2006, 
  (d) the builder is deemed to have paid tax under subsection 165(1) in respect of the supply referred to in paragraph (b) calculated at the rate of 7%, and 
  (e) the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.2(4) or 256.6(1), in respect of the tax referred to in paragraph (d), the Minister shall, subject to subsection (2), pay a rebate to the builder, in addition to the rebate payable under subsection 256.6(1), equal to the amount determined by the formula is the amount determined by the formula is the fair market value of the complex or, if the builder is deemed to have made a supply of an addition, of the addition, at the time the builder is deemed to have made the supply referred to in paragraph (b), is 
  (i) if the builder is deemed to have made a supply of a complex, the total of all amounts, each of which is the consideration payable by a person to the builder for the supply by way of sale to the person of the building or part of it forming part of the complex or of any other structure that forms part of the complex, or 
  (ii) if the builder is deemed to have made a supply of an addition, the total of all amounts, each of which is the consideration payable by a person to the builder for the supply by way of sale to the person of the building or part of it forming part of the addition or of any other structure that forms part of the addition, and is 
  (i) if the complex is situated in a participating province, 115, and 
  (ii) in any other case, 107, and is the rebate, if any, under subsection 256.2(4) that the builder is entitled to claim in respect of the complex or, if the builder is deemed to have made a supply of an addition, the addition. 
  
  ### Application for rebate
  
  (2) A rebate under this section in respect of a residential complex or an addition to it shall not be paid to a builder, unless the builder files an application for the rebate within two years after the end of the month in which tax referred to in subsection (1) is deemed to have been paid by the builder. 
  
  ### Transitional rebate — 2008 rate reduction
  
  256.74 (1) If a particular person, other than a cooperative housing corporation, 
  (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into after May 2, 2006, but on or before October 30, 2007, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008, 
  (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and 
  (c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection, in respect of the tax referred to in paragraph (b), the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to 1% of the value of the consideration for the supply. 
  
  ### Transitional rebate — 2008 rate reduction
  
  (2) If a particular person, other than a cooperative housing corporation, 
  (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into after May 2, 2006, but on or before October 30, 2007, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008, 
  (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and 
  (c) is entitled to claim a rebate under subsection 256.2(3) in respect of any residential unit situated in the complex, the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to the amount determined by the formula is the consideration payable for the supply to the particular person of the complex, and is the amount of the rebate under subsection 256.2(3) that the particular person is entitled to claim in respect of the complex. 
  
  ### Transitional rebate — 2008 rate reduction
  
  (3) If a particular person, other than a cooperative housing corporation, 
  (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into after May 2, 2006, but on or before October 30, 2007, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular person on or after January 1, 2008, 
  (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and 
  (c) is entitled to claim a rebate under section 259 in respect of the tax referred to in paragraph (b) and is not entitled to claim any input tax credit or any other rebate, other than a rebate under this subsection, in respect of that tax, the Minister shall, subject to subsection (7), pay a rebate to the particular person equal to the amount determined by the formula is the consideration payable for the supply to the particular person of the complex, and is 
  (i) in the case where the complex is situated in a participating province, the amount of the rebate under section 259 that the particular person would have been entitled to claim if no tax under subsection 165(2) would have been payable or paid in respect of the complex, and 
  (ii) in any other case, the amount of the rebate under section 259 that the particular person is entitled to claim in respect of the complex. 
  
  ### Transitional rebate — 2008 rate reduction
  
  (4) If a cooperative housing corporation 
  (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into after May 2, 2006, but on or before October 30, 2007, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the corporation on or after January 1, 2008, 
  (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and 
  (c) is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under section 256.2 or 259, in respect of the tax referred to in paragraph (b), the Minister shall, subject to subsection (7), pay a rebate to the corporation equal to the amount determined by the formula is the consideration payable for the supply, and is 
  (i) if the corporation is entitled to claim a rebate under section 259 in respect of the complex, 
  (A) in the case where the complex is situated in a participating province, the amount of the rebate under section 259 that the corporation would have been entitled to claim if no tax under subsection 165(2) would have been payable or paid in respect of the complex, and 
  (B) in any other case, the amount of the rebate under section 259 that the corporation is entitled to claim in respect of the complex, 
  (ii) 36% of the tax paid under subsection 165(1) by the corporation in respect of the supply if the corporation is not entitled to claim a rebate under section 259 in respect of the complex, and 
  (A) the corporation is entitled to, or can reasonably expect to be entitled to, claim a rebate under section 256.2 in respect of any residential unit situated in the complex, or 
  (B) it is the case that, or it can reasonably be expected that, a share of the capital stock of the corporation is or will be sold to an individual for the purpose of using a residential unit in the complex as the primary place of residence of the individual, or of a relation (as defined in subsection 255(1)) of the individual, and that the individual is or will be entitled to claim a rebate under section 255 in respect of the share, and 
  (iii) in any other case, zero. 
  
  ### Transitional rebate — 2008 rate reduction
  
  (5) If a particular individual 
  (a) pursuant to an agreement of purchase and sale, evidenced in writing, entered into after May 2, 2006, but on or before October 30, 2007, is the recipient of a taxable supply by way of sale from another person of a residential complex in respect of which ownership and possession under the agreement are transferred to the particular individual on or after January 1, 2008, 
  (b) has paid all of the tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and 
  (c) is entitled to claim a rebate under subsection 254(2) in respect of the complex, the Minister shall, subject to subsection (7), pay a rebate to the particular individual equal to the amount determined by the formula is the total of all amounts, each of which is the consideration payable for the supply to the particular individual of the complex or for any other taxable supply to the particular individual of an interest in the complex in respect of which the particular individual has paid tax under subsection 165(1) calculated at the rate of 6%, and is the amount of the rebate under subsection 254(2) that the particular individual is entitled to claim in respect of the complex. 
  
  ### Group of individuals
  
  (6) If a supply of a residential complex is made to two or more individuals, the references in subsection (5) to a particular individual shall be read as references to all of those individuals as a group, but only the particular individual that applied for the rebate under section 254 may apply for the rebate under subsection (5). 
  
  ### Application for rebate
  
  (7) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after the day on which ownership of the complex is transferred to the person. 
  
  ### Transitional rebate where section 254.1 applies — 2008 rate reduction
  
  256.75 (1) If 
  (a) under an agreement, evidenced in writing, entered into after May 2, 2006, but on or before October 30, 2007, between a particular person and a builder of a residential complex that is a single unit residential complex or a residential condominium unit, the particular person is the recipient of 
  (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and 
  (ii) an exempt supply by way of sale of the building or part of it in which the residential unit forming part of the complex is situated, 
  (b) possession of the complex is given to the particular person under the agreement on or after January 1, 2008, 
  (c) the builder is deemed under subsection 191(1) to have made and received a supply of the complex as a consequence of giving possession of the complex to the particular person under the agreement and to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and 
  (d) the particular person is entitled to claim a rebate under subsection 254.1(2) in respect of the complex, the Minister shall, subject to subsection (4), 
  (e) pay a rebate to the particular person equal to the amount determined by the formula is the amount determined by the formula is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) 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 is 
  (i) if the complex is situated in a participating province, 114, and 
  (ii) in any other case, 106, and is the amount of the rebate under subsection 254.1(2) that the particular person is entitled to claim in respect of the complex, and 
  (f) if the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.2(4), in respect of the tax referred to in paragraph (c), pay a rebate to the builder equal to the amount determined by the formula is the fair market value of the complex at the time that the builder is deemed to have made the supply referred to in paragraph (c), is the amount determined for A under paragraph (e), and is the amount of the rebate, if any, that the builder is entitled to claim under subsection 256.2(4). 
  
  ### Transitional rebate where section 254.1 does not apply — 2008 rate reduction
  
  (2) If 
  (a) under an agreement, evidenced in writing, entered into after May 2, 2006, but on or before October 30, 2007, between a particular person and a builder of a residential complex that is a single unit residential complex or a residential condominium unit, the particular person is the recipient of 
  (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and 
  (ii) an exempt supply by way of sale of the building or part of it in which the residential unit forming part of the complex is situated, 
  (b) possession of the complex is given to the particular person under the agreement on or after January 1, 2008, 
  (c) the builder is deemed under subsection 191(1) to have made and received a supply of the complex as a consequence of giving possession of the complex to the particular person under the agreement and to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and 
  (d) the particular person is not entitled to claim a rebate under subsection 254.1(2) in respect of the complex, the Minister shall, subject to subsection (4), 
  (e) pay a rebate to the particular person equal to the amount determined by the formula is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) 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 is 
  (i) if the complex is situated in a participating province, 114, and 
  (ii) in any other case, 106, and 
  (f) if the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection, in respect of the tax referred to in paragraph (c), pay a rebate to the builder equal to the amount determined by the formula is the fair market value of the complex at the time the builder is deemed to have made the supply referred to in paragraph (c), is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) 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 is 
  (i) if the complex is situated in a participating province, 114, and 
  (ii) in any other case, 106. 
  
  ### Group of individuals
  
  (3) If the supplies described in subsection (1) or (2) are made to two or more individuals, the references in that subsection to a particular person shall be read as references to all of those individuals as a group, but, in the case of a rebate where paragraph (1)(e) applies, only the individual that applied for the rebate under section 254.1 may apply for the rebate under subsection (1). 
  
  ### Application for rebate
  
  (4) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after 
  (a) in the case of a rebate to a person other than the builder of the complex, the day on which possession of the complex is transferred to the person; and 
  (b) in the case of a rebate to the builder of the complex, the end of the month in which the tax referred to in paragraph (1)(c) or (2)(c) is deemed to have been paid by the builder. 
  
  ### Transitional rebate for purchaser — 2008 rate reduction
  
  256.76 (1) Where 
  (a) under an agreement, evidenced in writing, entered into between a particular person and a builder of a residential complex, other than a single unit residential complex or a residential condominium unit, or an addition to it, the particular person is the recipient of 
  (i) an exempt supply by way of lease of the land forming part of the complex or an exempt supply of such a lease by way of assignment, and 
  (ii) an exempt supply by way of sale of the building or part of it in which a residential unit forming part of the complex or the addition is situated, 
  (b) possession of a residential unit forming part of the complex or the addition is given to the particular person under the agreement on or after January 1, 2008, 
  (c) the builder is deemed under subsection 191(3) or (4) to have made and received a supply of the complex or the addition as a consequence of giving possession 
  (i) of the residential unit to the particular person under the agreement, or 
  (ii) of a residential unit forming part of the complex or the addition to another person under an agreement described in paragraph (a) entered into between the other person and the builder, 
  (d) the builder is deemed to have paid tax under subsection 165(1) in respect of the supply calculated at the rate of 6%, and 
  (e) if the builder is deemed to have paid the tax referred to in paragraph (d) on or after January 1, 2008, it is the case that the builder and 
  (i) the particular person entered into the agreement after May 2, 2006, but on or before October 30, 2007, or 
  (ii) a person, other than the particular person, after May 2, 2006, but on or before October 30, 2007, entered into an agreement described in paragraph (a) in respect of a residential unit situated in the residential complex or in the addition that the builder is deemed to have supplied (as described in paragraph (c)) and that agreement was not terminated before January 1, 2008, the Minister shall, subject to subsection (3), 
  (f) if the particular person is entitled to claim a rebate under subsection 254.1(2) in respect of the complex, pay a rebate to the particular person equal to the amount determined by the formula is the amount determined by the formula is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of the building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex or the addition, 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 is 
  (i) if the complex is situated in a participating province, 114, and 
  (ii) in any other case, 106, and is the amount of the rebate under section 254.1 that the particular person is entitled to claim in respect of the complex, and 
  (g) if the particular person is not entitled to claim a rebate under subsection 254.1(2) in respect of the complex, pay a rebate to the particular person equal to the amount determined by the formula is the total of all amounts, each of which is the consideration payable by the particular person to the builder for the supply by way of sale to the particular person of the building or part of a building referred to in subparagraph (a)(ii) or of any other structure that forms part of the complex or the addition, 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 is 
  (i) if the complex is situated in a participating province, 114, and 
  (ii) in any other case, 106. 
  
  ### Group of individuals
  
  (2) If the supplies described in subsection (1) are made to two or more individuals, the references in that subsection to a particular person shall be read as references to all of those individuals as a group, but, in the case of a rebate under paragraph (1)(f), only the individual that applied for the rebate under section 254.1 may apply for the rebate under that paragraph. 
  
  ### Application for rebate
  
  (3) A rebate under this section in respect of a residential complex shall not be paid to a person, unless the person files an application for the rebate within two years after the day on which possession of the unit referred to in paragraph (1)(b) is transferred to the person. 
  
  ### Transitional rebate for builder — 2008 rate reduction
  
  256.77 (1) If 
  (a) under an agreement, evidenced in writing, entered into between a particular person and a builder of a residential complex, other than a single unit residential complex or a residential condominium unit, or an addition to it, the particular person is the recipient of 
  (i) an exempt supply by way of lease of the land forming part of the complex or a supply of such a lease by way of assignment, and 
  (ii) an exempt supply by way of sale of the building or part of it in which a residential unit forming part of the complex or the addition is situated, 
  (b) the builder is deemed under subsection 191(3) or (4) to have made and received on or after January 1, 2008, a supply of the complex or the addition as a consequence of giving possession 
  (i) of the residential unit to the particular person under the agreement, or 
  (ii) of a residential unit forming part of the complex or the addition to another person under an agreement described in paragraph (a) entered into between the other person and the builder, 
  (c) the builder and 
  (i) the particular person entered into the agreement after May 2, 2006, but on or before October 30, 2007, or 
  (ii) a person, other than the particular person, after May 2, 2006, but on or before October 30, 2007, entered into an agreement described in paragraph (a) in respect of a residential unit situated in the residential complex or in the addition that the builder is deemed to have supplied (as described in paragraph (b)) and that agreement was not terminated before January 1, 2008, 
  (d) the builder is deemed to have paid tax under subsection 165(1) in respect of the supply referred to in paragraph (b) calculated at the rate of 6%, and 
  (e) the builder is not entitled to claim an input tax credit or a rebate, other than a rebate under this subsection or under subsection 256.2(4), in respect of the tax referred to in paragraph (d), the Minister shall, subject to subsection (2), pay a rebate to the builder equal to the amount determined by the formula is the amount determined by the formula is the fair market value of the complex or, if the builder is deemed to have made a supply of an addition, of the addition, at the time the builder is deemed to have made the supply referred to in paragraph (b), is 
  (i) if the builder is deemed to have made a supply of a complex, the total of all amounts, each of which is the consideration payable by a person to the builder for the supply by way of sale to the person of the building or part of it forming part of the complex or of any other structure that forms part of the complex, or 
  (ii) if the builder is deemed to have made a supply of an addition, the total of all amounts, each of which is the consideration payable by a person to the builder for the supply by way of sale to the person of the building or part of it forming part of the addition or of any other structure that forms part of the addition, and is 
  (i) if the complex is situated in a participating province, 114, and 
  (ii) in any other case, 106, and is the rebate, if any, under subsection 256.2(4) that the builder is entitled to claim in respect of the complex or, if the builder is deemed to have made a supply of an addition, the addition. 
  
  ### Application for rebate
  
  (2) A rebate under this section in respect of a residential complex or an addition to it shall not be paid to a builder, unless the builder files an application for the rebate within two years after the end of the month in which tax referred to in subsection (1) is deemed to have been paid by the builder. 
  
  ### Non-registrant sale of real property
  
  257 (1) If a person who is not a registrant makes a particular taxable supply of real property by way of sale, the Minister shall, subject to subsections (1.1) and (2), pay a rebate to the person equal to the lesser of 
  (a) the basic tax content of the property at the particular time, and 
  (b) the tax that is or would, in the absence of section 167 or 167.11, be payable in respect of the particular supply. 
  
  ### Limitation
  
  (1.1) If the particular taxable supply referred to in subsection (1) is made at a particular time by a public sector body to another person with whom the public sector body is not dealing at arm’s length, the rebate under subsection (1) shall not exceed the lesser of 
  (a) the basic tax content of the property at the particular time, and 
  (b) the amount determined by the formula is the basic tax content of the property at the particular time, is the amount that would be the basic tax content of the property at that time if that amount were determined without reference to the description of B in paragraph (a) and the description of K in paragraph (b) of the definition 
  *basic tax content* in subsection 123(1), and  is the tax that is or would, in the absence of section 167, be payable in respect of the particular taxable supply. 
  
  ### Application for rebate
  
  (2) A rebate shall not be paid under subsection (1) to a person in respect of the supply by way of sale of real property by the person unless the person files an application for the rebate within two years after the day the consideration for the supply became due or was paid without having become due. 
  
  ### Redemption of real property
  
  (3) Where 
  (a) for the purposes of satisfying in whole or in part a debt or obligation owing by a person (in this subsection referred to as the “debtor”), a creditor exercises a right under an Act of Parliament or the legislature of a province or an agreement relating to a debt security to cause the supply of real property, and 
  (b) under the Act or the agreement, the debtor has a right to redeem the property, the following rules apply: 
  (c) the debtor is not entitled to claim a rebate under subsection (1) with respect to the property unless the time limit for redeeming the property has expired and the debtor has not redeemed the property, and 
  (d) where the debtor is entitled to claim the rebate, consideration for the supply is deemed, for the purposes of subsection (2), to have become due on the day on which the time limit for redeeming the property expires. 
  
  ### Sale of personal property by non-registrant municipality
  
  257.1 (1) If a person that is a municipality, or is designated to be a municipality for the purposes of section 259, and that is not a registrant makes, at any time, a taxable supply by way of sale of personal property that is capital property of the person (other than property of a person designated to be a municipality for the purposes of section 259 that is not designated municipal property of the person), the Minister shall, subject to subsection (2), pay a rebate to the person equal to the lesser of 
  (a) the basic tax content of the property at that time, and 
  (b) the tax that is or would, in the absence of section 167, be payable in respect of the taxable supply. 
  
  ### Application for rebate
  
  (2) A rebate shall not be paid to a person under subsection (1) unless the person files an application for the rebate within two years after the day on which the consideration for the supply became due or was paid without having become due. 
  
  ### Redemption of personal property
  
  (3) If, for the purposes of satisfying in whole or in part a debt or obligation owing by a person (in this subsection referred to as the “debtor”), a creditor exercises a right under an Act of Parliament or the legislature of a province or an agreement relating to a debt security to cause the supply of personal property and the debtor has a right to redeem the property under the Act or the agreement, the following rules apply: 
  (a) the debtor is not entitled to claim a rebate under subsection (1) with respect to the property unless the time limit for redeeming the property has expired and the debtor has not redeemed the property; and 
  (b) if the debtor is entitled to claim the rebate, consideration for the supply is deemed, for the purposes of subsection (2), to have become due on the day on which the time limit for redeeming the property expires. 
  
  ### Definition of 
  *legal aid plan* 
  
  258 (1) In this section, 
  *legal aid plan* means a legal aid plan administered under the authority of the government of a province.  
  
  ### Legal aid
  
  (2) Where a person responsible for the administration of a legal aid plan in a particular province pays tax in respect of a taxable supply of legal services under a legal aid plan, the following rules apply: 
  (a) the Minister shall pay to the person a rebate equal to the amount of tax payable by the person in respect of the supply; and 
  (b) the person shall not be entitled to any other rebate in respect of tax on that supply. 
  
  ### Application for rebate
  
  (3) A rebate under this section in respect of tax payable by a person shall not be paid to the person unless the person files an application for the rebate within four years after the end of the reporting period of the person in which the tax became payable. 
  
  ### Definition of 
  *qualifying motor vehicle* 
  
  258.1 (1) In this section, 
  *qualifying motor vehicle* means a motor vehicle that is equipped with a device designed exclusively to assist in placing a wheelchair in the vehicle without having to collapse the wheelchair or with an auxiliary driving control to facilitate the operation of the vehicle by an individual with a disability.  
  
  ### Qualifying motor vehicle purchased in Canada
  
  (2) If 
  (a) a registrant makes a taxable supply by way of sale of a qualifying motor vehicle, 
  (b) the recipient has paid all tax payable in respect of the supply, and 
  (c) the supplier identifies in writing to the recipient a portion (in this subsection referred to as the “certified amount of the purchase price”) of the consideration for the supply that can reasonably be attributed to special features that have been incorporated into, or adaptations that have been made to, the vehicle 
  (i) for the purpose of its use by or in transporting an individual using a wheelchair, or 
  (ii) to equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability, the Minister shall, on application by the recipient filed within four years after the first day on which any tax in respect of the supply becomes payable, pay to the recipient a rebate of that portion of the total tax payable in respect of the supply that is equal to tax calculated on the certified amount of the purchase price. 
  
  ### Application to supplier
  
  (3) If 
  (a) a registrant has made a taxable supply by way of sale of a qualifying motor vehicle, 
  (b) tax has been paid or become payable in respect of the supply, and 
  (c) the recipient submits to the registrant, within four years after the first day on which any tax in respect of the supply becomes payable, an application for the rebate to which the recipient would be entitled under subsection (2) in respect of the vehicle if the recipient had paid all the tax payable in respect of the supply and applied for the rebate in accordance with that subsection, the registrant may pay to or credit in favour of the recipient the amount of the rebate. 
  
  ### Forwarding of application by supplier
  
  (4) If an application of a recipient for a rebate under subsection (2) is submitted to a registrant in the circumstances described in subsection (3), 
  (a) the registrant shall transmit the application to the Minister with the registrant’s return filed under Division V for the reporting period in which an amount on account of the rebate is paid or credited by the registrant to or in favour of the recipient; 
  (b) interest under subsection 297(4) is not payable in respect of the rebate; and 
  (c) the recipient is not entitled to claim any input tax credit in respect of the tax to which the amount of the rebate paid or credited by the registrant relates. 
  
  ### Joint and several liability
  
  (5) If, under subsection (3), a registrant pays to or credits in favour of a recipient an amount on account of a rebate and the registrant knows or ought to know that the recipient is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the recipient is entitled, the registrant and the recipient are jointly and severally or solidarily liable to pay to the Receiver General under section 264 the amount that was paid or credited on account of the rebate or the excess amount, as the case may be. 
  
  ### Qualifying motor vehicle purchased outside Canada or a participating province
  
  (6) If 
  (a) a supply by way of sale of a qualifying motor vehicle is made outside Canada or a participating province, 
  (b) the supplier identifies in writing to the recipient a portion (in this subsection referred to as the “certified amount of the purchase price”) of the consideration for the supply that can reasonably be attributed to special features that have been incorporated into, or adaptations that have been made to, the vehicle 
  (i) for the purpose of its use by or in transporting an individual using a wheelchair, or 
  (ii) to equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability, 
  (c) the recipient imports the vehicle or brings it into the participating province, and 
  (d)  [Repealed, 2007, c. 18, s. 42]  
  (e) the recipient has paid all tax payable in respect of the importation or bringing in, as the case may be, the Minister shall, on application by the recipient filed within four years after the recipient imports the vehicle or brings it into the participating province, as the case may be, pay to the recipient a rebate of 
  (f) if the vehicle is imported, that portion of the total tax payable under Division III in respect of the vehicle that is calculated on the total of 
  (i) the portion of the certified amount of the purchase price that is included in determining the value of the vehicle under section 215, and 
  (ii) the amount of all duties and taxes, if any, payable under the Customs Tariff, the Special Import Measures Act or any other law relating to customs in respect of the importation and calculated on the portion of the certified amount of the purchase price that is included in determining the value of the vehicle under that section, and  
  (g) if the vehicle is brought into the participating province, that portion of the total tax payable under Division IV.1 in respect of the vehicle that is calculated on the portion of the certified amount of the purchase price that is included in determining the value of the vehicle to which the tax rate for the participating province applies. 
  
  ### Lease of qualifying motor vehicle
  
  (7) If, at any time after April 3, 1998, a registrant enters into a particular agreement in writing with a recipient for the taxable supply by way of lease of a motor vehicle that is, at that time, a qualifying motor vehicle, 
  (a) there shall not be included, in determining the tax payable in respect of any supply to that recipient by way of lease of the vehicle made under the particular agreement or under any agreement for the variation or renewal of that lease, the portion of the consideration for that supply that is identified in writing to the recipient by the supplier and can reasonably be attributed to special features that have been incorporated into, or adaptations that have been made to, the vehicle 
  (i) for the purpose of its use by or in transporting an individual using a wheelchair, or 
  (ii) to equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability; and 
  (b) if, at a later time, the recipient exercises an option under the particular agreement, or under an agreement for the variation or renewal of that lease, to purchase the vehicle, the vehicle is deemed, for the purposes of subsections (2) and (6), to be a qualifying motor vehicle at that later time. 
  
  ### Rebate for modification service
  
  258.2 If 
  (a) a person acquires a service (in this section referred to as the “modification service”), performed on a motor vehicle of the person outside Canada or a participating province, of specially equipping or adapting the vehicle for its use by or in transporting an individual using a wheelchair or specially equipping the vehicle with an auxiliary driving control to facilitate the operation of the vehicle by an individual with a disability, 
  (b) the person imports the vehicle or brings it into the participating province, as the case may be, after the modification service is performed, and 
  (c) the person has paid all tax payable in respect of the importation or bringing in, as the case may be, the Minister shall, on application by the person filed within four years after the day the person imports the vehicle or brings it into the participating province, as the case may be, pay to the person a rebate of 
  (d) if the vehicle is imported, that portion of the total tax payable under Division III in respect of the vehicle that is calculated on the total of 
  (i) the portion of the value of the vehicle under section 215 that is attributable to the modification service and any property (other than the vehicle) supplied in conjunction with, and because of, the supply of the service, and 
  (ii) the amount of all duties and taxes, if any, payable under the Customs Tariff, the Special Import Measures Act or any other law relating to customs in respect of the importation and calculated on the portion referred to in subparagraph (i), and  
  (e) if the vehicle is brought into the participating province, that portion of the total tax payable under Division IV.1 in respect of the vehicle that is calculated on the portion of the value of the vehicle that is attributable to the modification service and any property (other than the vehicle) supplied in conjunction with, and because of, the supply of the service and that is included in determining the value of the vehicle to which the tax rate for the participating province applies. 
  
  ### Definitions
  
  259 (1) In this section,  
  *ancillary supply* means  
  (a) an exempt supply of a service of organizing or coordinating the making of facility supplies or home medical supplies in respect of which supply an amount, other than a nominal amount, is paid or payable to the supplier as medical funding, or 
  (b) the portion of an exempt supply (other than a facility supply, a home medical supply or a prescribed supply) of property or a service (other than a financial service) that represents the extent to which the property or service is, or is reasonably expected to be, consumed or used for making a facility supply and in respect of which portion an amount, other than a nominal amount, is paid or payable to the supplier as medical funding; ( fourniture connexe)   
  *charity* includes a non-profit organization that operates, otherwise than for profit, a health care facility within the meaning of paragraph (c) of the definition of that expression in section 1 of Part II of Schedule V; (organisme de bienfaisance)   
  *claim period* of a person at any time means  
  (a) where the person is at that time a registrant, the reporting period of the person that includes that time, and 
  (b) in any other case, the period that includes that time and consists of either 
  (i) the first and second fiscal quarters in a fiscal year of the person, or 
  (ii) the third and fourth fiscal quarters in a fiscal year of the person; ( période de demande)   
  *external supplier* means a charity, a public institution or a qualifying non-profit organization (other than a hospital authority or a facility operator), that makes ancillary supplies, facility supplies or home medical supplies; (fournisseur externe)   
  *facility operator* means a charity, a public institution or a qualifying non-profit organization (other than a hospital authority), that operates a qualifying facility; (exploitant d’établissement)   
  *facility supply* means an exempt supply (other than a prescribed supply) of property or a service in respect of which  
  (a) the property is made available, or the service is rendered, to an individual at a public hospital or qualifying facility as part of a medically necessary process of health care for the individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative health care, which process 
  (i) is undertaken in whole or in part at the public hospital or qualifying facility, 
  (ii) is reasonably expected to take place under the active direction or supervision, or with the active involvement, of 
  (A) a physician acting in the course of the practise of medicine, 
  (B) a midwife acting in the course of the practise of midwifery, 
  (C) a nurse practitioner acting in the course of the practise of a nurse practitioner, or 
  (D) a prescribed person acting in prescribed circumstances, and 
  (iii) in the case of chronic care that requires the individual to stay overnight at the public hospital or qualifying facility, requires or is reasonably expected to require that 
  (A) a registered nurse be at the public hospital or qualifying facility at all times when the individual is at the public hospital or qualifying facility, 
  (B) a physician or nurse practitioner be at, or be on-call to attend at, the public hospital or qualifying facility at all times when the individual is at the public hospital or qualifying facility, 
  (C) throughout the process, the individual be subject to medical management and receive a range of therapeutic health care services that includes registered nursing care, and 
  (D) it not be the case that all or substantially all of each calendar day or part during which the individual stays at the public hospital or qualifying facility is time during which the individual does not receive therapeutic health care services referred to in clause (C), and 
  (b) if the supplier does not operate the public hospital or qualifying facility, an amount, other than a nominal amount, is paid or payable as medical funding to the supplier; ( fourniture en établissement)   
  *home medical supply* means an exempt supply (other than a facility supply or a prescribed supply) of property or a service  
  (a) that is made 
  (i) as part of a medically necessary process of health care for an individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative health care, and 
  (ii) after a physician acting in the course of the practise of medicine, a nurse practitioner acting in the course of the practise of a nurse practitioner or a prescribed person acting in prescribed circumstances has identified or confirmed that it is appropriate for the process to take place at the individual’s place of residence or lodging (other than a public hospital or a qualifying facility), 
  (b) in respect of which the property is made available, or the service is rendered, to the individual at the individual’s place of residence or lodging (other than a public hospital or a qualifying facility), on the authorization of a person who is responsible for coordinating the process and under circumstances in which it is reasonable to expect that the person will carry out that responsibility in consultation with, or with ongoing reference to instructions for the process given by, a physician acting in the course of the practise of medicine, a nurse practitioner acting in the course of the practise of a nurse practitioner or a prescribed person acting in prescribed circumstances, 
  (c) all or substantially all of which is of property or a service other than meals, accommodation, domestic services of an ordinary household nature, assistance with the activities of daily living and social, recreational and other related services to meet the psycho-social needs of the individual, and 
  (d) in respect of which an amount, other than a nominal amount, is paid or payable as medical funding to the supplier; ( fourniture de biens ou services médicaux à domicile)   
  *medical funding* of a supplier in respect of a supply means an amount of money (including a forgivable loan but not including any other loan or a refund, remission or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) that is paid or payable to the supplier in respect of health care services for the purpose of financially assisting the supplier in making the supply or as consideration for the supply by  
  (a) a government, or 
  (b) a person that is a charity, a public institution or a qualifying non-profit organization 
  (i) one of the purposes of which is organizing or coordinating the delivery of health care services to the public, and 
  (ii) in respect of which it is reasonable to expect that a government will be the primary source of funding for the activities of the person that are in respect of the delivery of health care services to the public during the fiscal year of the person in which the supply is made; ( subvention médicale)   
  *midwife* means a person who is entitled under the laws of a province to practise the profession of midwifery; (sage-femme)   
  *municipality* includes a person designated by the Minister, for the purposes of this section, to be a municipality, but only in respect of activities, specified in the designation, that involve the making of supplies (other than taxable supplies) by the person of municipal services; (municipalité)   
  *non-creditable tax charged*, in respect of property or a service for a claim period of a person, means the amount, if any, by which  
  (a) the total (in this section referred to as “the total tax charged in respect of the property or service”) of all amounts each of which is 
  (i) tax in respect of the supply, importation or bringing into a participating province of the property or service that became payable by the person during the period or that was paid by the person during the period without having become payable (other than tax deemed to have been paid by the person or in respect of which the person is, by reason only of section 226, not entitled to claim an input tax credit), 
  (ii) tax deemed under subsection 129(6), 129.1(4), 171(3) or 183(4) or section 191 to have been collected during the period by the person in respect of the property or service, 
  (ii.1) where the person is not a charity to which subsection 225.1(2) applies, tax deemed under subsection 183(5) or (6) to have been collected during the period by the person in respect of the property or service, 
  (iii) tax, calculated on the amount of an allowance in respect of the property or service, that is deemed under section 174 to have been paid during the period by the person, 
  (iv) tax deemed under section 175 or 180 to have been paid during the period by the person in respect of the property or service, or 
  (v) an amount in respect of the property or service that is required under subsection 129(7) or paragraph 171(4)(b) to be added in determining the net tax of the person for the period, exceeds 
  (b) the total of all amounts each of which is included in the total determined under paragraph (a) and 
  (i) is included in determining an input tax credit of the person in respect of the property or service for the period, 
  (ii) for which it can reasonably be regarded the person has obtained or is entitled to obtain a rebate, refund or remission under any other section of this Act or under any other Act of Parliament, or 
  (iii) is 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) has been received by the person or a debit note referred to in that subsection has been issued by the person; ( taxe exigée non admise au crédit)   
  *non-profit organization* includes a prescribed government organization; (organisme à but non lucratif)   
  *percentage of government funding* of a person for a fiscal year of the person means the percentage determined in prescribed manner; (pourcentage de financement public)   
  *physician* means a person who is entitled under the laws of a province to practise the profession of medicine; (médecin)   
  *qualifying funding* of the operator of a facility for all or part of a fiscal year of the operator means a readily ascertainable amount of money (including a forgivable loan but not including any other loan or a refund, remission or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) that is paid or payable to the operator in respect of the delivery of health care services to the public for the purpose of financially assisting in operating the facility during the fiscal year or part, as consideration for an exempt supply of making the facility available for use in making facility supplies at the facility during the fiscal year or part or as consideration for facility supplies of property that are made available, or services that are rendered, at the facility during the fiscal year or part and is paid or payable by  
  (a) a government, or 
  (b) a person that is a charity, a public institution or a qualifying non-profit organization 
  (i) one of the purposes of which is organizing or coordinating the delivery of health care services to the public, and 
  (ii) in respect of which it is reasonable to expect that a government will be the primary source of funding for the activities of the person that are in respect of the delivery of health care services to the public during the fiscal year of the person in which the supply is made; ( subvention admissible)   
  *selected public service body* means  
  (a) a hospital authority, 
  (b) a school authority that is established and operated otherwise than for profit, 
  (c) a university that is established and operated otherwise than for profit, 
  (d) a public college that is established and operated otherwise than for profit, 
  (e) a municipality, 
  (f) a facility operator, or 
  (g) an external supplier; ( organisme déterminé de services publics)   
  *specified activities* means activities referred to in any of clauses (4.1)(b)(iii)(B) to (D), other than the operation of a public hospital; (activités déterminées)   
  *specified percentage* means  
  (a) in the case of a charity or a qualifying non-profit organization that is not a selected public service body, 50%, 
  (b) in the case of a hospital authority, a facility operator or an external supplier, 83%, 
  (c) in the case of a school authority, 68%, 
  (d) in the case of a university or public college, 67%, and 
  (e) in the case of a municipality, 100%; ( pourcentage établi)   
  *specified provincial percentage* means  
  (a) in the case of a charity, or a qualifying non-profit organization, that is not a selected public service body and that is resident in a participating province, 50%, 
  (b) in the case of a hospital authority resident in Nova Scotia, 83%, 
  (c) in the case of a school authority resident in Nova Scotia, 68%, 
  (d) in the case of a university or public college resident in Nova Scotia, 67%, 
  (e) in the case of a municipality resident in Nova Scotia or New Brunswick, 57.14%, 
  (f) despite any of paragraphs (a) to (e), if there is a sales tax harmonization agreement with the government of a participating province that allows for rebates in respect of public service bodies relating to the new harmonized value-added tax system in respect of the participating province and if the participating province is prescribed for the purposes of this paragraph, in the case of a person of a prescribed class resident in the participating province, the prescribed percentage for that class in respect of the participating province, and 
  (g) in any other case, 0%; ( pourcentage provincial établi)   
  *specified supply* of property of a person means  
  (a) a taxable supply made to the person at any time after December 31, 2004, of property that was owned on that day by the person or by another person who is related to the person at that time, or 
  (b) a taxable supply that the person is deemed under subsection 211(4) to have made after December 30, 2004, of property that was, on that day, owned by the person, or by another person who last supplied the property to the person by way of sale and who was related to the person on the day the supply by way of sale was made. ( fourniture déterminée)  
  
  ### Qualifying non-profit organization
  
  (2) For the purposes of this section, a person is a qualifying non-profit organization at any time in a fiscal year of the person if, at that time, the person is a non-profit organization and the percentage of government funding of the person for the year is at least 40%. 
  
  ### Qualifying facilities
  
  (2.1) For the purposes of this section, a facility, or part of a facility, other than a public hospital, is a qualifying facility for a fiscal year, or any part of a fiscal year, of the operator of the facility or part, if 
  (a) supplies of services that are ordinarily rendered during that fiscal year or part to the public at the facility or part would be facility supplies if the references in the definition 
  *facility supply* in subsection (1) to “public hospital or qualifying facility” were references to the facility or part;  
  (b) an amount, other than a nominal amount, is paid or payable to the operator as qualifying funding in respect of the facility or part for the fiscal year or part; and 
  (c) an accreditation, licence or other authorization that is recognized or provided for under a law of Canada or a province in respect of facilities for the provision of health care services applies to the facility or part during that fiscal year or part. 
  
  ### Rebate for persons other than designated municipalities
  
  (3) If a person (other than a listed financial institution, a registrant prescribed for the purposes of subsection 188(5) and a person designated to be a municipality for the purposes of this section) is, on the last day of a claim period of the person or of the person’s fiscal year that includes that claim period, a selected public service body, charity or qualifying non-profit organization, the Minister shall, subject to subsections (4.1) to (4.21) and (5), pay a rebate to the person equal to the total of 
  (a) the amount equal to the specified percentage of the non-creditable tax charged in respect of property or a service (other than a prescribed property or service) for the claim period, and 
  (b) in the case of a person of a prescribed class resident in a participating province, the amount determined in prescribed manner for the purpose of the new harmonized value-added tax system or, in any other case, the amount equal to the specified provincial percentage of the non-creditable tax charged in respect of property or a service (other than a prescribed property or service) for the claim period. 
  
  ### Rebate for designated municipalities
  
  (4) If a person is, on the last day of a claim period of the person or of the person’s fiscal year that includes that claim period, designated to be a municipality for the purposes of this section in respect of activities (in this subsection referred to as the “designated activities”) specified in the designation, the Minister shall, subject to subsections (4.01) to (5), pay a rebate to the person in respect of property or a service (other than a prescribed property or service) equal to the total of 
  (a) all amounts, each of which is an amount determined by the formula is the specified percentage, is an amount that is included in the total tax charged in respect of the property or service for the claim period and is an amount of tax in respect of a supply made to, or the importation or bringing into a participating province of the property by, the person at any time, an amount deemed to have been paid or collected at any time by the person, an amount required to be added under subsection 129(7) in determining the person’s net tax as a result of a branch or division of the person becoming a small supplier division at any time, or an amount required to be added under paragraph 171(4)(b) in determining the person’s net tax as a result of the person ceasing, at any time, to be a registrant, and is the extent (expressed as a percentage) to which the person intended, at that time, to consume, use or supply the property or service in the course of the designated activities, and 
  (b) in the case of a person of a prescribed class resident in a participating province, the amount determined in prescribed manner for the purpose of the new harmonized value-added tax system or, in any other case, all amounts, each of which is an amount determined by the formula is the specified provincial percentage, is an amount that is included in the total tax charged in respect of the property or service for the claim period and is an amount of tax in respect of a supply made to, or the importation or bringing into a participating province of the property by, the person at any time, an amount deemed to have been paid or collected at any time by the person, an amount required to be added under subsection 129(7) in determining the person’s net tax as a result of a branch or division of the person becoming a small supplier division at any time, or an amount required to be added under paragraph 171(4)(b) in determining the person’s net tax as a result of the person ceasing, at any time, to be a registrant, and is the extent (expressed as a percentage) to which the person intended, at that time, to consume, use or supply the property or service in the course of the designated activities. 
  
  ### Restriction
  
  (4.01) An amount shall not be included in determining the value of B or E in subsection (4) in respect of a claim period of a person to the extent that 
  (a) the amount is included in determining an input tax credit of the person; 
  (b) it can reasonably be regarded that the person has obtained or is entitled to obtain a rebate, refund or remission of the amount under any other section of this Act or under any other Act of Parliament; or 
  (c) the amount is 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) has been received by the person or a debit note referred to in that subsection has been issued by the person. 
  
  ### Apportionment of rebate
  
  (4.1) Subject to subsections (4.2) and (4.21), if a person is a charity, a public institution or a qualifying non-profit organization, and is a selected public service body, the rebate, if any, payable to the person under subsection (3) or (4) in respect of property or a service for a claim period is equal to, in the case of a person of a prescribed class resident in a participating province, the amount determined in prescribed manner for the purpose of the new harmonized value-added tax system and, in any other case, the total of 
  (a) 50% of the non-creditable tax charged in respect of the property or service for the claim period, and 
  (b) the total of all amounts, each of which is an amount that would be determined under paragraph (4)(a) or (b) in respect of the property or service for the claim period if subsection (4) applied to the person and if 
  (i) the reference in subsection (4) to “specified percentage” were read as a reference to “specified percentage applicable to a selected public service body described in whichever of paragraphs (a) to (g) of the definition of that expression in subsection (1) applies to the person minus 50%”, 
  (ii) the reference in subsection (4) to “specified provincial percentage” were read as a reference to the greater of “specified provincial percentage applicable to a selected public service body described in whichever of paragraphs (a) to (e) of the definition of that expression in subsection (1) applies to the person minus 50%” and “0%”, 
  (iii) in the case of a person who is not designated to be a municipality for the purposes of this section, the reference in the description of C in subsection (4) to “designated activities” were read as a reference to 
  (A) in the case of a person determined to be a municipality under paragraph (b) of the definition 
  *municipality* in subsection 123(1), activities engaged in by the person in the course of fulfilling the person’s responsibilities as a local authority,  
  (B) in the case of a person acting in the person’s capacity as a hospital authority, activities engaged in by the person in the course of operating a public hospital, operating a qualifying facility for use in making facility supplies, or of making facility supplies, ancillary supplies or home medical supplies, 
  (C) in the case of a person acting in the person’s capacity as a facility operator, activities engaged in by the person in the course of operating a qualifying facility for use in making facility supplies, or of making facility supplies, ancillary supplies or home medical supplies, 
  (D) in the case of a person acting in the person’s capacity as an external supplier, activities engaged in by the person in the course of making ancillary supplies, facility supplies or home medical supplies, or 
  (E) in any other case, activities engaged in by the person in the course of operating a recognized degree-granting institution, a college affiliated with, or research body of, such an institution, an elementary or secondary school or a post-secondary college or technical institute, as the case may be, and 
  (iv) in the case of a person who is not designated to be a municipality for the purposes of this section, the reference in the description of F in subsection (4) to “designated activities” were read as a reference to 
  (A) in the case of a person determined to be a municipality under paragraph (b) of the definition 
  *municipality* in subsection 123(1), activities engaged in by the person in the course of fulfilling the person’s responsibilities as a local authority, or  
  (B) in any other case, activities engaged in by the person in the course of operating a recognized degree-granting institution, a college affiliated with, or research body of, such an institution, a public hospital, an elementary or secondary school or a post-secondary college or technical institute, as the case may be. 
  
  ### Rebate for health care facility
  
  (4.11) Despite subsections (3), (4) and (4.1), if a person (other than a person that is a qualifying non-profit organization or a selected public service body described in any of paragraphs (a) to (d) of the definition 
  *selected public service body* in subsection (1)) is a charity for the purposes of this section only because the person is a non-profit organization that operates, otherwise than for profit, one or more health care facilities within the meaning of paragraph (c) of the definition of that expression in section 1 of Part II of Schedule V, no amount in respect of property or a service is to be included in determining a rebate to be paid under this section to the person in respect of the property or service except to the extent to which the person intended, at the relevant time, to consume, use or supply the property or service  
  (a) in the course of activities engaged in by the person in the course of operating those health care facilities; or 
  (b) if the person is designated to be a municipality for the purposes of this section in respect of activities specified in the designation, in the course of those activities. 
  
  ### Extent of consumption, use or supply — relevant time
  
  (4.12) Where reference is made to a relevant time in subsection (4.11) for the purposes of determining the extent to which a person intended to consume, use or supply property or a service in the course of certain activities in relation to an amount in respect of the property or service, the relevant time is 
  (a) in the case of an amount of tax in respect of a supply made to, or an importation or bringing into a participating province by, the person at any time, that time; 
  (b) in the case of an amount deemed to have been paid or collected at any time by the person, that time; 
  (c) in the case of an amount required to be added under subsection 129(7) in determining the person’s net tax as a result of a branch or division of the person becoming a small supplier division at any time, that time; and 
  (d) in the case of an amount required to be added under paragraph 171(4)(b) in determining the person’s net tax as a result of the person ceasing, at any time, to be a registrant, that time. 
  
  ### Exclusions
  
  (4.2) For the purposes of determining a rebate payable to a person, in determining an amount under paragraphs (3)(a) and (4)(a), or under paragraph (4.1)(a) if the applicable specified provincial percentage is 0% and the person is a selected public service body described in any of paragraphs (a) to (e) of the definition 
  *selected public service body* in subsection (1) or in paragraph (f) or (g) of that definition if the person is resident in Newfoundland and Labrador, no tax under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 payable or deemed to have been paid or collected by the person shall be included  
  (a) in any amount referred to in any of subparagraphs (a)(i) to (iv) of the definition 
  *non-creditable tax charged* in subsection (1);  
  (b) in any amount referred to in subparagraph (a)(v) of that definition that is required under subsection 129(7) to be added in determining the person’s net tax; or 
  (c) in determining any amount referred to in subparagraph (a)(v) of that definition that is an input tax credit required under paragraph 171(4)(b) to be added in determining the person’s net tax. 
  
  ### Exclusions
  
  (4.21) In determining an amount under paragraphs (3)(b) and (4)(b) for the purpose of determining a rebate payable to a person, no tax under any of subsection 165(1) and sections 212 and 218 payable or deemed to have been paid or collected by the person shall be included 
  (a) in any amount referred to in any of subparagraphs (a)(i) to (iv) of the definition 
  *non-creditable tax charged* in subsection (1);  
  (b) in any amount referred to in subparagraph (a)(v) of that definition that is required under subsection 129(7) to be added in determining the person’s net tax; or 
  (c) in determining any amount referred to in subparagraph (a)(v) of that definition that is an input tax credit required under paragraph 171(4)(b) to be added in determining the person’s net tax. 
  
  ### Rebate to certain selected public service bodies in Newfoundland
  
  (4.3) Despite subsection (4.1), if a rebate under this section in respect of property or a service for a claim period is payable to a person that 
  (a) is a selected public service body resident in Newfoundland, 
  (b) is a charity, a public institution or a qualifying non-profit organization, and 
  (c) has activities (in this subsection referred to as its “other activities”) 
  (i) in the case of a person that is designated to be a municipality for the purposes of this section, that are not designated activities (within the meaning of subsection (4)), and 
  (ii) in any other case, that it engages in otherwise than in the course of 
  (A) fulfilling its responsibilities as a local authority, 
  (B) operating a public hospital, an elementary or secondary school, a post-secondary college or technical institute, a recognized degree-granting institution or a college affiliated with or research body of such a degree-granting institution, or 
  (C) making facility supplies, ancillary supplies or home medical supplies or operating a qualifying facility for use in making facility supplies, the amount of the rebate is equal to the total of 
  (d) the amount of the rebate as otherwise determined under subsection (4.1), and 
  (e) the total of all amounts each of which is an amount that would be determined under paragraph (4)(a) or (b) in respect of the property or service for the claim period if 
  (i) the specified percentage for the purposes of subsection (4) were 0%, 
  (ii) the specified provincial percentage for the purposes of that subsection were 50%, and 
  (iii) the reference to designated activities in the description of F in that subsection were a reference to the person’s other activities. 
  
  ### Application for rebate
  
  (5) A rebate under this section in respect of a claim period in a fiscal year of a person shall not be paid to the person unless the person files an application for the rebate after the first day in that year that the person is a selected public service body, charity or qualifying non-profit organization and within four years after the day that is 
  (a) where the person is a registrant, the day on or before which the person is required to file the return under Division V for the period; and 
  (b) where the person is not a registrant, the last day of the period. 
  
  ### Exception to limitation period
  
  (5.1) If 
  (a) tax in respect of a supply of property or a service became payable by a person in a particular claim period of the person, 
  (b) the supplier did not, before the end of the last claim period of the person that ends within four years after the end of the particular claim period, charge the tax in respect of the supply, 
  (c) the supplier discloses in writing to the person that the Minister has assessed the supplier for that tax, and 
  (d) the person pays that tax after the end of that last claim period and before that tax is included in determining a rebate under this section claimed by the person, the following rules apply: 
  (e) for the purposes of this section, that tax is deemed to have become payable by the person in the person’s claim period in which the person pays that tax and not to have become payable in the particular claim period, 
  (f) the portion of the rebate of the person under this section in respect of the property or service for the person’s claim period in which the person pays that tax that is in excess of the amount of that rebate that would be determined without reference to this subsection 
  (i) may, despite subsection (6), be claimed in an application separate from the person’s application for other rebates under this section for that claim period, and 
  (ii) shall not be paid to the person unless that portion is claimed in an application filed by the person on a day that is after the beginning of the person’s fiscal year that includes that claim period and after the first day in that year that the person is a selected public service body, charity or qualifying non-profit organization and 
  (A) if the person is a registrant, not later than the day on or before which the person is required to file the return under Division V for that claim period, or 
  (B) if the person is not a registrant, within one month after the end of that claim period, and 
  (g) subsection (5) applies to the remaining portion of that rebate as if that remaining portion were in respect of a separate property or service. 
  
  ### Limitation
  
  (6) Except where subsection (10) or (11) applies, a person shall not make more than one application for rebates under this section for any claim period of the person. 
  
  ### Application for rebate — subsequent claim period
  
  (6.1) If a rebate under this section in respect of property or a service for a particular claim period of a person is not claimed in an application for the particular claim period, the rebate may be claimed by the person in an application for a subsequent claim period of the person if the following conditions are met: 
  (a) the rebate has not been claimed in any application for any claim period of the person; 
  (b) the application for the subsequent claim period is filed by the person within two years after 
  (i) if the person is a registrant, the day on or before which the person is required to file the return under Division V for the particular claim period, and 
  (ii) if the person is not a registrant, the day that is three months after the last day of the particular claim period; 
  (c) the person does not, at any time throughout the period (in this subsection referred to as the “specified period”) beginning on the first day of the particular claim period and ending on the last day of the subsequent claim period, become or cease to be 
  (i) a charity, 
  (ii) a public institution, 
  (iii) a qualifying non-profit organization, 
  (iv) a person designated to be a municipality, or 
  (v) one of the bodies described in paragraphs (a) to (g) of the definition selected public service body in subsection (1); and  
  (d) throughout the specified period, the percentages — being the specified percentage, the specified provincial percentage or any other percentage specified in this section or in a regulation made under this Part that applies for the purposes of this section — that would be applicable in determining the amount of a rebate under this section in respect of the property or service, if tax in respect of the property or service had become payable and had been paid by the person on each day in the specified period, remain constant. 
  
  ### Selected public service bodies
  
  (7) If a selected public service body acquires or imports property or a service primarily for consumption, use or supply in the course of activities engaged in by another selected public service body, for the purpose of determining the amount of a rebate under this section to the body in respect of the non-creditable tax charged in respect of the property or service for any claim period of the body, the body is deemed to be engaged in those activities. 
  
  ### Selected public service bodies
  
  (8) If a person acquires or imports property or a service primarily for consumption, use or supply in the course of activities engaged in by the person acting in the capacity of a selected public service body described in any of paragraphs (a) to (g) of the definition 
  *selected public service body* in subsection (1), the amount of any rebate under this section to the person in respect of the non-creditable tax charged in respect of the property or service for a claim period shall be determined as if the person were not a selected public service body described in any other of those paragraphs.  
  (9)  [Repealed, 2004, c. 22, s. 39]  
  
  ### Application by branches or divisions
  
  (10) Where a person who is entitled to a rebate under subsection (3) or (4) is engaged in one or more activities in separate branches or divisions and is authorized under subsection 239(2) to file separate returns under Division V in relation to a branch or division, the person 
  (a) shall file separate applications under this section in respect of the branch or division; and 
  (b) shall not make more than one such application in respect of the branch or division for any claim period of the person. 
  
  ### Application of section 239
  
  (11) Where a person who has not made an application under section 239 is entitled to a rebate under subsection (3) or (4) and is engaged in one or more activities in separate branches or divisions, 
  (a) section 239 applies to the person as if the references therein to “commercial activities” were references to “activities”, as if the references therein to “returns under this Division” and “returns” were references to “applications under section 259”, and as if the references therein to “registrant” were references to “person”; 
  (b) where, because of this subsection, a branch or division of the person is authorized under section 239 to file separate applications for rebates under this section, the person shall not make more than one such application in respect of the branch or division for any claim period of the person; and 
  (c) where, because of this subsection, the person is authorized under section 239 to file separate applications for rebates under this section in relation to a branch or division and the person is required to file returns under Division V, the person shall file separate returns under that Division in respect of the branch or division. 
  
  ### Prescribed method
  
  (12) A prescribed person may determine the rebates payable to the person under this section in accordance with prescribed rules. 
  
  ### Disclosure of municipal rebate information
  
  (13) If the amount of a rebate under subsection (3) or (4) that is approved by the Minister for payment to a municipality is increased as a result of the application to the municipality of the specified percentage instead of 57.14% in respect of any period, the Minister may, despite section 295, release for publication by the Government of Canada information as to the amount of the increase and any information necessary to identify the municipality. On publication, the information is not confidential information for the purposes of section 295. 
  
  ### Application
  
  (14) For the purposes of this section, if a person incurs all or substantially all of the tax that is included in determining the amount of the non-creditable tax charged in respect of property or a service for a claim period of the person acting in the person’s capacity as a hospital authority, a facility operator or an external supplier, the person is deemed to have incurred all of the tax that is included in determining that amount in the course of fulfilling the person’s responsibilities as a hospital authority, a facility operator or an external supplier, as the case may be. 
  
  ### Rules for specified supplies
  
  (15) Despite subsections (3), (4) and (4.1), for the purpose of applying subsection (4.1) to determine a rebate payable under subsection (3) or (4) to a person that is a hospital authority, a facility operator or an external supplier, for a claim period of the person, if the person is required to determine under paragraph (4.1)(b) a particular amount, in respect of a specified supply of property of the person made at any time, that would, if subsection (4) applied to the person, be determined by the formula in paragraph (4)(a) for the claim period and the value of C in that paragraph is the extent to which the person intended, at that time, to consume, use or supply the property in the course of specified activities, the particular amount shall be determined by the formula is the amount that would, in the absence of this subsection, be determined to be the particular amount; and is the amount determined by the formula is the fair market value of the property at the time of the supply, and is the fair market value of the property on January 1, 2005. 
  (16)  [Repealed, 1993, c. 27, s. 115]  
  
  ### Definitions
  
  259.1 (1) The definitions in this subsection apply in this section.  
  *claim period* has the meaning assigned by subsection 259(1). (période de demande)   
  *printed book* does not include anything that is or the main component of which is  
  (a) a newspaper; 
  (b) a magazine or periodical acquired otherwise than by way of subscription; 
  (c) a magazine or periodical in which the printed space devoted to advertising is more than 5% of the total printed space; 
  (d) a brochure or pamphlet; 
  (e) a sales catalogue, a price list or advertising material; 
  (f) a warranty booklet or an owner’s manual; 
  (g) a book designed primarily for writing on; 
  (h) a colouring book or a book designed primarily for drawing on or affixing thereto, or inserting therein, items such as clippings, pictures, coins, stamps or stickers; 
  (i) a cut-out book or a press-out book; 
  (j) a program relating to an event or performance; 
  (k) an agenda, calendar, syllabus or timetable; 
  (l) a directory, an assemblage of charts or an assemblage of street or road maps, but not including 
  (i) a guidebook, or 
  (ii) an atlas that consists in whole or in part of maps other than street or road maps; 
  (m) a rate book; 
  (n) an assemblage of blueprints, patterns or stencils; 
  (o) prescribed property; or 
  (p) an assemblage or collection of, or any item similar to, items included in any of paragraphs (a) to (o). ( livre imprimé)   
  *qualifying non-profit organization* has the meaning assigned by subsection 259(2). (organisme à but non lucratif admissible)   
  *specified person* means  
  (a) a municipality; 
  (b) a school authority; 
  (c) a university; 
  (d) an organization that operates a post-secondary college or post-secondary technical institute 
  (i) that receives from a government or municipality funds that are paid for the purpose of assisting the organization in the ongoing provision of educational services to the general public, and 
  (ii) the primary purpose of which is to provide programs of instruction in one or more fields of vocational, technical or general education; 
  (e) a charity, public institution or qualifying non-profit organization that operates a public lending library; or 
  (f) a prescribed charity, or a prescribed qualifying non-profit organization, the primary purpose of which is the promotion of literacy. ( personne déterminée)   
  *specified property* means  
  (a) a printed book or an update of such a book; 
  (b) an audio recording all or substantially all of which is a spoken reading of a printed book; or 
  (c) a bound or unbound printed version of scripture of any religion. ( bien déterminé)  
  
  ### Rebate for printed books, etc.
  
  (2) The Minister shall, subject to subsection (3), pay a rebate to a person that is, on the last day of a claim period of the person or of the person’s fiscal year that includes that claim period, a specified person equal to the amount of tax under subsection 165(1) or section 212 that became payable in the claim period by the person in respect of the acquisition or importation of specified property if 
  (a) in the case of a specified person described in paragraph (f) of the definition specified person in subsection (1), the person does not acquire or import the specified property for  
  (i) the purpose of making a supply by way of sale of the specified property for consideration, or 
  (ii) the purpose of transferring ownership of the specified property to another person in the course of supplying another property or a service for consideration; and 
  (b) in any other case, the person does not acquire or import the specified property for 
  (i) the purpose of making a supply by way of sale of the specified property, or 
  (ii) the purpose of transferring ownership of the specified property to another person in the course of supplying another property or a service. 
  
  ### Application for rebate
  
  (3) A rebate shall not be paid under subsection (2) to a specified person in respect of tax payable by the person unless the person files an application for the rebate within four years after the end of the claim period of the person in which the tax became payable. 
  
  ### Limitation
  
  (4) Except where subsection (5) applies, a person shall not make more than one application for rebates under this section for any claim period of the person. 
  
  ### Application by branches or divisions
  
  (5) Where a person that is entitled to a rebate under subsection (2) is engaged in one or more activities in separate branches or divisions and is required under subsection 259(10) to file separate applications for rebates under section 259 in respect of a branch or division, the person 
  (a) shall file separate applications under this section in respect of the branch or division; and 
  (b) shall not make more than one such application in respect of the branch or division for any claim period of the person. 
  (6)  [Repealed, 2009, c. 32, s. 30]  
  
  ### Definitions
  
  259.2 (1) The following definitions apply in this section.  
  *claim period* has the same meaning as in subsection 259(1). (période de demande)   
  *Legion entity* means the Dominion Command or any provincial command or branch of the Royal Canadian Legion. (entité de la Légion)  
  
  ### Rebate for poppies and wreaths
  
  (2) If a Legion entity acquires, imports or brings into a participating province property that is a poppy or wreath, the Minister shall, subject to subsection (3), pay a rebate to the Legion entity equal to the amount of tax that becomes payable, or is paid without having become payable, by the Legion entity during a claim period of the Legion entity in respect of the acquisition, importation or bringing in. 
  
  ### Application for rebate
  
  (3) A rebate shall not be paid under subsection (2) in respect of tax that becomes payable, or is paid without having become payable, by a Legion entity during a claim period of the Legion entity unless the Legion entity files an application for the rebate within four years after the last day of the claim period. 
  
  ### Limitation
  
  (4) A Legion entity must not make more than one application for rebates under this section for any claim period of the Legion entity. 
  
  ### Exports by a charity or a public institution
  
  260 (1) Where a person that is a charity or a public institution is the recipient of a supply of property or a service, has paid tax in respect of the supply and has exported the property or service, subject to subsection (2), the Minister shall pay a rebate to the person equal to the amount of tax paid in respect of the supply. 
  
  ### Application for rebate
  
  (2) A rebate shall not be paid under subsection (1) to a person in respect of a supply unless the person files an application for the rebate within four years after the end of the fiscal year of the person in which tax in respect of the supply became payable. 
  
  ### Rebate of payment made in error
  
  261 (1) Where a person has paid an amount 
  (a) as or on account of, or 
  (b) that was taken into account as, tax, net tax, penalty, interest or other obligation under this Part in circumstances where the amount was not payable or remittable by the person, whether the amount was paid by mistake or otherwise, the Minister shall, subject to subsections (2) to (3), pay a rebate of that amount to the person. 
  
  ### Restriction
  
  (2) A rebate in respect of an amount shall not be paid under subsection (1) to a person to the extent that 
  (a) the amount was taken into account as tax or net tax for a reporting period of the person and the Minister has assessed the person for the period under section 296; 
  (b) the amount paid was tax, net tax, penalty, interest or any other amount assessed under section 296; or 
  (c) a rebate of the amount is payable under subsection 215.1(1) or (2) or 216(6) or a refund of the amount is payable under section 69, 73, 74 or 76 of the Customs Act because of subsection 215.1(3) or 216(7).  
  
  ### Restriction — emission allowance
  
  (2.1) A rebate in respect of an amount paid in respect of a supply of an emission allowance is not to be paid under subsection (1) to a person unless 
  (a) the person paid the amount to the Receiver General; or 
  (b) prescribed circumstances exist or prescribed conditions are met. 
  
  ### Application for rebate
  
  (3) A rebate in respect of an amount shall not be paid under subsection (1) to a person unless the person files an application for the rebate within two years after the day the amount was paid or remitted by the person. 
  
  ### One application per month
  
  (4) Subject to subsections (5) and (6), not more than one application for a rebate under this section may be made by a person in any calendar month. 
  
  ### Application by branches and divisions
  
  (5) Where a person who is entitled to a rebate under this section is engaged in one or more activities in separate branches or divisions and is authorized under subsection 239(2) to file separate returns under Division V in relation to a branch or division, 
  (a) the person may file separate applications under this section in respect of the branch or division; and 
  (b) not more than one application for a rebate under this section in respect of the branch or division may be made by the person in any calendar month. 
  
  ### Application of s. 239
  
  (6) Where a person who has not made an application under section 239 is entitled to a rebate under this section and is engaged in one or more activities in separate branches or divisions, 
  (a) section 239 applies to the person as if the references therein to “commercial activities” were references to “activities”, as if the references therein to “returns under this Division” and “returns” were references to “applications under section 261”, and as if the references therein to “registrant” were references to “person”; and 
  (b) where, because of this subsection, the person is authorized under section 239 to file separate applications for rebates under this section in relation to a branch or division, not more than one application for a rebate under this section in respect of the branch or division may be made by the person in any calendar month. 
  
  ### Definitions
  
  261.01 (1) The definitions in this subsection apply in this section.  
  *active member* has the meaning assigned by subsection 8500(1) of the Income Tax Regulations. (participant actif)   
  *claim period* has the meaning assigned by subsection 259(1). (période de demande)   
  *eligible amount* of a pension entity for a claim period of the pension entity means an amount of tax, other than a recoverable amount in respect of the claim period, that  
  (a) became payable by the pension entity during the claim period, or was paid by the pension entity during the claim period without having become payable, in respect of a supply, importation or bringing into a participating province of property or a service that the pension entity acquired, imported or brought into the participating province, as the case may be, for consumption, use or supply in respect of a pension plan, other than an amount of tax that 
  (i) is deemed to have been paid by the pension entity under this Part (other than section 191), 
  (ii) became payable, or was paid without having become payable, by the pension entity at a time when it was entitled to claim a rebate under section 259, 
  (iii) was payable under subsection 165(1), or is deemed under section 191 to have been paid, by the pension entity in respect of a taxable supply to the pension entity of a residential complex, an addition to a residential complex or land if, in respect of that supply, the pension entity was entitled to claim a rebate under section 256.2 or would be so entitled after paying the tax payable in respect of that supply, or 
  (iv) if the pension entity is a selected listed financial institution throughout the claim period, was payable under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1; or 
  (b) is deemed to have been paid by the pension entity under section 172.1 or 172.2 during the claim period. ( montant admissible)   
  *employee PRPP contribution* means a contribution by an employee of an employer to a pooled registered pension plan that  
  (a) may be deducted by the employee under paragraph 60(i) of the Income Tax Act in computing their income; and  
  (b) is remitted by the employer to the PRPP administrator of the plan under a contract with the PRPP administrator in respect of all or a class of the employees of the employer. ( cotisation RPAC de salarié)   
  *employer contribution* means a contribution by an employer to a pension plan that may be deducted by the employer under paragraph 20(1)(q) of the Income Tax Act in computing its income. (cotisation d’employeur)   
  *multi-employer plan* [Repealed, 2010, c. 12, s. 75]   
  *non-qualifying pension entity* means a pension entity that is not a qualifying pension entity. (entité de gestion non admissible)   
  *participating employer* [Repealed, 2012, c. 31, s. 88]   
  *pension contribution* [Repealed, 2014, c. 39, s. 97]   
  *pension entity* [Repealed, 2012, c. 31, s. 88]   
  *pension plan* [Repealed, 2012, c. 31, s. 88]   
  *pension rebate amount* of a pension entity of a pension plan for a claim period of the pension entity means the amount determined by the formula  is 
  (a) if the pension plan is a registered pension plan, 33%, 
  (b) if the pension plan is a pooled registered pension plan and either employer contributions or employee PRPP contributions were made to the pension plan in the particular calendar year that is the last calendar year ending on or before the last day of the claim period, the amount (expressed as a percentage) determined by the formula is the total of all amounts, each of which is determined for an employer that made employer contributions to the pension plan in the particular calendar year by the formula is the total of all amounts, each of which is an employer contribution made by the employer to the pension plan in the particular calendar year, and is the total of all amounts, each of which is an employee PRPP contribution made by an employee of the employer to the pension plan in the particular calendar year, and is the total of all amounts contributed to the pension plan in the particular calendar year, 
  (c) if the pension plan is a pooled registered pension plan, neither employer contributions nor employee PRPP contributions were made to the pension plan in the particular calendar year that is the last calendar year ending on or before the last day of the claim period and it is reasonable to expect that employer contributions will be made to the pension plan in a following calendar year, the amount (expressed as a percentage) determined for the first calendar year in which employer contributions are reasonably expected to be made to the pension plan following the particular calendar year by the formula is the total of all amounts, each of which is determined for an employer reasonably expected to make employer contributions to the pension plan in that first calendar year by the formula is the total of all amounts, each of which is an employer contribution reasonably expected to be made by the employer to the pension plan in that first calendar year, and is the total of all amounts, each of which is an employee PRPP contribution reasonably expected to be made by an employee of the employer to the pension plan in that first calendar year, and is the total of all amounts reasonably expected to be contributed to the pension plan in that first calendar year, or 
  (d) if the pension plan is a pooled registered pension plan and paragraphs (b) and (c) do not apply, 0%; and is the amount determined by the formula is the total of all amounts, each of which is an eligible amount of the pension entity for the claim period that is described in paragraph (a) of the definition eligible amount, and  is 
  (i) if an application for a rebate under subsection (2) for the claim period is filed in accordance with subsection (3), the total of 
  (A) the total amount indicated on the application under subsection (3.1), and 
  (B) the total of all amounts, each of which is an eligible amount of the pension entity for the claim period that is described in paragraph (b) of the definition eligible amount and in respect of which a portion of the rebate is claimed by the pension entity in accordance with paragraph (3.2)(a),  
  (ii) if an election made under subsection (9) for the claim period is filed in accordance with subsection (10), the total amount indicated on the election in accordance with paragraph (10)(c), or 
  (iii) in any other case, zero. ( montant de remboursement de pension)   
  *provincial pension rebate amount* of a pension entity for a claim period of the pension entity in a fiscal year that ends in a taxation year of the pension entity means the amount equal to  
  (a) if the pension entity is a selected listed financial institution throughout the claim period, the total of all amounts, each of which is determined for a participating province by the formula is the pension rebate amount of the pension entity for the claim period, is the pension entity’s percentage for the participating province for the taxation year for the purposes of C in the formula in subsection 225.2(2), is the tax rate for the participating province, and is the rate set out in subsection 165(1); and 
  (b) in any other case, zero. ( montant de remboursement de pension provincial)   
  *qualifying employer* of a pension plan for a calendar year means a participating employer of the pension plan that is a registrant and that  
  (a) if employer contributions were made to the pension plan in the immediately preceding calendar year, made employer contributions to the pension plan in that year; and 
  (b) in any other case, was the employer of one or more active members of the pension plan in the immediately preceding calendar year. ( employeur admissible)   
  *qualifying pension entity* means a pension entity of a pension plan other than a pension plan in respect of which  
  (a) listed financial institutions made 10% or more of the total employer contributions to the pension plan in the last preceding calendar year in which employer contributions were made to the pension plan; or 
  (b) it can reasonably be expected that listed financial institutions will make 10% or more of the total employer contributions to the pension plan in the next calendar year in which employer contributions will be required to be made to the pension plan. ( entité de gestion admissible)   
  *recoverable amount* in respect of a claim period of a person means an amount of tax  
  (a) that is included in determining an input tax credit of the person for the claim period; 
  (b) for which it can reasonably be regarded that the person has obtained or is entitled to obtain a rebate, refund or remission under any other section of this Act or under any other Act of Parliament; or 
  (c) that can reasonably be regarded as having been 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) has been received by the person or a debit note referred to in that subsection has been issued by the person. ( montant recouvrable)   
  *tax recovery rate* of a person for a fiscal year of the person means the lesser of  
  (a) 100%; and 
  (b) the amount (expressed as a percentage) determined by the formula is the total of all amounts, each of which is 
  (i) if the person is a selected listed financial institution at any time in the fiscal year, an input tax credit of the person, in respect of an amount of tax under any of subsection 165(1) and sections 212, 218 and 218.01, for a reporting period of the person included in the fiscal year, and 
  (ii) in any other case, an input tax credit of the person for a reporting period of the person included in the fiscal year, is the total of all amounts, each of which is 
  (i) if the person is a selected listed financial institution at any time in the fiscal year, a rebate to which the person is entitled under section 259, in respect of an amount of tax under any of subsection 165(1) and sections 212, 218 and 218.01, for a claim period of the person included in the fiscal year, and 
  (ii) in any other case, a rebate to which the person is entitled under section 259 for a claim period of the person included in the fiscal year, and is the total of all amounts, each of which is 
  (i) if the person is a selected listed financial institution at any time in the fiscal year, an amount of tax under any of subsection 165(1) and sections 212, 218 and 218.01 that became payable, or was paid without having become payable, by the person during the fiscal year, and 
  (ii) in any other case, an amount of tax that became payable, or was paid without having become payable, by the person during the fiscal year. ( taux de recouvrement de taxe)  
  
  ### Rebate for qualifying pension entities
  
  (2) If a pension entity is a qualifying pension entity on the last day of a claim period of the pension entity, the Minister shall pay a rebate to the pension entity for the claim period equal to the amount determined by the formula is the pension rebate amount of the pension entity for the claim period; and is the total of all amounts, each of which is an amount 
  (a) determined by the formula is an amount determined for A in the formula in subsection (5) for a qualifying employer as a consequence of an election made under that subsection for the claim period, and is the percentage specified for the qualifying employer in the election, or 
  (b) determined under paragraph (6)(a) in respect of a qualifying employer as a consequence of an election made under subsection (6) for the claim period. 
  
  ### Application for rebate
  
  (3) A rebate under subsection (2) shall not be paid for a claim period of a pension entity, unless the pension entity files an application for the rebate within two years after the day that is 
  (a) if the pension entity is a registrant, the day on or before which the pension entity is required to file a return under Division V for the claim period; and 
  (b) in any other case, the last day of the claim period. 
  
  ### Application for rebate — pension rebate amount election
  
  (3.1) An application for a rebate under subsection (2) for a claim period of a pension entity shall indicate the total of all amounts, each of which is an eligible amount of the pension entity for the claim period (other than an eligible amount in respect of which a portion of the rebate is claimed by the pension entity in accordance with paragraph (3.2)(a)) 
  (a) that is described in paragraph (b) of the definition eligible amount in subsection (1); and  
  (b) that the pension entity elects to include in the determination of the pension rebate amount of the pension entity for the claim period. 
  
  ### Separate claims for a claim period
  
  (3.2) If an eligible amount of a pension entity for a claim period of the pension entity is an amount of tax that is deemed to have been paid under subparagraph 172.1(8.01)(b)(i), or to have become payable under section 172.11, the following rules apply: 
  (a) the portion of the rebate under subsection (2) for the claim period that is in respect of the excess pension rebate amount for the claim period in respect of the eligible amount may, despite subsection (4), be claimed in an application separate from the pension entity’s application for the portion of that rebate that is in respect of the remaining pension rebate amount for the claim period provided that the application for the portion of that rebate that is in respect of that excess pension rebate amount is filed by the pension entity after the beginning of the pension entity’s fiscal year that includes the claim period and not later than 
  (i) if the pension entity is a registrant, the day on or before which the pension entity is required to file the return under Division V for the claim period, or 
  (ii) in any other case, the last day of the claim period; and 
  (b) a particular election under subsection (5) or (6) for the claim period that is in respect of the excess pension rebate amount for the claim period in respect of the eligible amount may be made separately from an election under subsection (5) or (6), as the case may be, that is in respect of the remaining pension rebate amount for the claim period provided that the portion of the rebate under subsection (2) for the claim period that is in respect of that excess pension rebate amount is claimed by the pension entity in a separate application that is filed in accordance with paragraph (a) and the particular election is filed at the same time that the application is filed. 
  
  ### Definitions
  
  (3.3) The following definitions apply in this subsection and subsection (3.2).  
  *excess pension rebate amount* for a claim period of a pension entity means, in respect of an amount of tax deemed to have been paid under subparagraph 172.1(8.01)(b)(i), or to have become payable under section 172.11, by the pension entity during the claim period, the amount that would be the pension rebate amount of the pension entity for the claim period if the amount of tax were the only eligible amount of the pension entity for the claim period. (excédent du montant de remboursement de pension)   
  *remaining pension rebate amount* for a claim period of a pension entity means the amount determined by the formula  is the pension rebate amount of the pension entity for the claim period; and is the total of all amounts, each of which is an excess pension rebate amount for the claim period in respect of which a portion of the rebate under subsection (2) for the claim period is claimed by the pension entity in accordance with paragraph (3.2)(a). ( solde du montant de remboursement de pension)  
  
  ### Limitation
  
  (4) A pension entity shall not make more than one application for a rebate under subsection (2) for any claim period of the pension entity. 
  
  ### Election to share rebate — engaged exclusively in commercial activities
  
  (5) If a pension entity of a pension plan is a qualifying pension entity on the last day of a claim period of the pension entity, the pension entity makes an election for the claim period jointly with all persons that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan and each of those qualifying employers is engaged exclusively in commercial activities throughout the claim period, each of those qualifying employers may deduct in determining its net tax for the reporting period that includes the day on which the election is filed with the Minister an amount determined by the formula is the pension rebate amount of the pension entity for the claim period; is the provincial pension rebate amount of the pension entity for the claim period; and is the percentage specified for the qualifying employer in the election. 
  
  ### Election to share rebate — not engaged exclusively in commercial activities
  
  (6) If a pension entity of a pension plan is a qualifying pension entity on the last day of a claim period of the pension entity, the pension entity makes an election for the claim period jointly with all persons that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan and any of those qualifying employers is not engaged exclusively in commercial activities throughout the claim period, the following rules apply: 
  (a) an amount (in this subsection referred to as a “shared portion”) shall be determined for the purposes of this section in respect of each of those qualifying employers by the formula is the pension rebate amount of the pension entity for the claim period, is the percentage specified for the qualifying employer in the election, and is 
  (i) in the case where employer contributions were made to the pension plan in the calendar year that immediately precedes the calendar year that includes the last day of the claim period (in this paragraph referred to as the “preceding calendar year”), the amount determined by the formula is the total of all amounts, each of which is 
  (A) an employer contribution made by the qualifying employer to the pension plan in the preceding calendar year, or 
  (B) an employee PRPP contribution made by an employee of the qualifying employer to the pension plan in the preceding calendar year, if the qualifying employer made employer contributions to the pension plan in the preceding calendar year, and is the total of all amounts, each of which is 
  (A) if the pension plan is a registered pension plan, an employer contribution made to the pension plan in the preceding calendar year, or 
  (B) if the pension plan is a pooled registered pension plan, an amount contributed to the pension plan in the preceding calendar year, 
  (ii) in the case where subparagraph (i) does not apply and one or more qualifying employers of the pension plan was the employer of one or more active members of the pension plan in the preceding calendar year, the amount determined by the formula is the total number of employees of the qualifying employer in the preceding calendar year who were active members of the pension plan in that year, and is the sum of the total number of employees of each of those qualifying employers in the preceding calendar year who were active members of the pension plan in that year, and 
  (iii) in any other case, zero; and 
  (b) each of those qualifying employers may deduct in determining its net tax for the reporting period that includes the day on which the election is filed with the Minister an amount determined by the formula is the shared portion in respect of the qualifying employer as determined under paragraph (a), is the amount determined by the formula is the provincial pension rebate amount of the pension entity for the claim period, is the percentage specified for the qualifying employer in the election, and is the amount determined for C in the formula in paragraph (a), and is the tax recovery rate of the qualifying employer for the fiscal year of the qualifying employer that ended on or before the last day of the claim period. 
  
  ### Engaged exclusively in commercial activities
  
  (7) For the purposes of subsections (5) and (6), a qualifying employer of a pension plan is engaged exclusively in commercial activities throughout a claim period of a pension entity of the pension plan if 
  (a) in the case of a qualifying employer that is a financial institution at any time in the claim period, all of the activities of the qualifying employer for the claim period are commercial activities; and 
  (b) in any other case, all or substantially all of the activities of the qualifying employer for the claim period are commercial activities. 
  
  ### Form and manner of filing
  
  (8) An election made under subsection (5) or (6) by a pension entity of a pension plan and the qualifying employers of the pension plan shall 
  (a) be made in prescribed form containing prescribed information; 
  (b) be filed by the pension entity with the Minister in prescribed manner 
  (i) at the same time the application for the rebate under subsection (2) for the claim period is filed by the pension entity, and 
  (ii) within two years after the day that is 
  (A) if the pension entity is a registrant, the day on or before which the pension entity is required to file a return under Division V for the claim period, and 
  (B) in any other case, the last day of the claim period; 
  (c) in the case of an election under subsection (5), indicate the percentage specified for each qualifying employer, the total of which for all qualifying employers shall not exceed 100%; and 
  (d) in the case of an election under subsection (6), indicate for each qualifying employer the percentage specified for the qualifying employer, which shall not exceed 100%. 
  
  ### Non-qualifying pension entities
  
  (9) If a pension entity of a pension plan is a non-qualifying pension entity on the last day of a claim period of the pension entity and the pension entity makes an election for the claim period jointly with all persons that are, for the calendar year that includes the last day of the claim period, qualifying employers of the pension plan, each of those qualifying employers may deduct in determining its net tax for the reporting period that includes the day on which the election is filed with the Minister the amount determined by the formula is the pension rebate amount of the pension entity for the claim period; is the provincial pension rebate amount of the pension entity for the claim period; is 
  (a) in the case where employer contributions were made to the pension plan in the calendar year (in this subsection referred to as the “preceding calendar year”) that immediately precedes the calendar year that includes the last day of the claim period, the amount determined by the formula is the total of all amounts, each of which is 
  (A) an employer contribution made by the qualifying employer to the pension plan in the preceding calendar year, or 
  (B) an employee PRPP contribution made by an employee of the qualifying employer to the pension plan in the preceding calendar year, if the qualifying employer made employer contributions to the pension plan in the preceding calendar year, and is the total of all amounts, each of which is 
  (A) if the pension plan is a registered pension plan, an employer contribution made to the pension plan in the preceding calendar year, or 
  (B) if the pension plan is a pooled registered pension plan, an amount contributed to the pension plan in the preceding calendar year, 
  (b) in the case where subparagraph (a) does not apply and one or more qualifying employers of the pension plan was the employer of one or more active members of the pension plan in the preceding calendar year, the amount determined by the formula is the total number of employees of the qualifying employer in the preceding calendar year who were active members of the pension plan in that year, and is the sum of the total number of employees of each of those qualifying employers in the preceding calendar year who were active members of the pension plan in that year, and 
  (c) in any other case, zero; and is the tax recovery rate of the qualifying employer for the fiscal year of the qualifying employer that ended on or before the last day of the claim period. 
  
  ### Form and manner of filing
  
  (10) An election made under subsection (9) for a claim period of a pension entity shall 
  (a) be made in prescribed form containing prescribed information; 
  (b) be filed by the pension entity with the Minister in prescribed manner within two years after the day that is 
  (i) if the pension entity is a registrant, the day on or before which the pension entity is required to file a return under Division V for the claim period, and 
  (ii) in any other case, the last day of the claim period; and 
  (c) indicate the total of all amounts, each of which is an eligible amount of the pension entity for the claim period 
  (i) that is described in paragraph (b) of the definition eligible amount in subsection (1), and  
  (ii) that the pension entity elects to include in the determination of the pension rebate amount of the pension entity for the claim period. 
  
  ### Limitation
  
  (11) Not more than one election under subsection (9) shall be filed for a claim period of a pension entity. 
  
  ### Joint and several liability
  
  (12) If, in determining the net tax for a reporting period of a qualifying employer of a pension plan, the qualifying employer deducts an amount under subsection (5), paragraph (6)(b) or subsection (9) and either the qualifying employer or the pension entity of the pension plan knows or ought to know that the qualifying employer is not entitled to the amount or that the amount exceeds the amount to which the qualifying employer is entitled, the qualifying employer and the pension entity are jointly and severally, or solidarily, liable to pay the amount or excess to the Receiver General. 
  
  ### Rebate in respect of goods removed from a participating province
  
  261.1 (1) If a supply by way of sale of property that is tangible personal property (other than property included in paragraph 252(1)(a) or (c)), a mobile home or a floating home is made in a particular participating province to a person that is resident in Canada, if the person removes the property from the participating province to another province within thirty days after it is delivered to the person and if prescribed conditions are satisfied, the Minister shall, subject to section 261.4, pay a rebate to the person equal to the amount determined in prescribed manner. 
  
  ### Stored goods
  
  (2) For the purposes of subsection (1), where a person places property in storage after it is delivered to the person in a participating province, the period during which the person holds the property in storage shall not be taken into account in determining whether the person removes the property from the province within thirty days after delivery. 
  
  ### Rebate in respect of goods imported at a place in a province
  
  261.2 If a person that is resident in a particular participating province pays tax under subsection 212.1(2) in respect of property described in paragraph 212.1(2)(b) that the person imports at a place in another province for consumption or use exclusively in any province (other than the particular participating province) and if prescribed conditions are satisfied, the Minister shall, subject to section 261.4, pay a rebate to the person equal to the amount determined in prescribed manner. 
  
  ### Rebate in respect of intangible personal property or services supplied in a participating province
  
  261.3 (1) If a person that is resident in Canada is the recipient of a supply made in a participating province of intangible personal property or a service that is acquired by the person for consumption, use or supply in whole or in part outside the participating province and if prescribed conditions are satisfied, the Minister shall, subject to section 261.4, pay a rebate to the person equal to the amount determined in prescribed manner. 
  (2)  [Repealed, 2012, c. 31, s. 89]  
  261.31 (1)  [Repealed, 2012, c. 31, s. 90]  
  
  ### Rebate for tax payable by investment plans
  
  (2) If tax under subsection 165(2), sections 212.1 or 218.1 or Division IV.1 is payable by a listed financial institution described in subparagraph 149(1)(a)(vi) or (ix), other than a selected listed financial institution, or by a prescribed person and prescribed conditions are satisfied, the Minister must, subject to section 261.4, pay a rebate to the financial institution or person equal to the amount determined in prescribed manner. 
  
  ### Election by segregated fund and insurer
  
  (3) An insurer and a segregated fund of the insurer may elect, in prescribed form containing prescribed information, to have the insurer pay to, or credit in favour of, the segregated fund the amount of any rebates payable to the segregated fund under subsection (2) in respect of supplies made by the insurer to the segregated fund. 
  
  ### Filing of election
  
  (4) An election made under subsection (3) by an insurer and a segregated fund of the insurer shall be filed with the Minister in prescribed manner on or before the day the insurer files a return of the insurer under Division V for a reporting period of the insurer in which the insurer pays or credits a rebate under subsection (2) to or in favour of the segregated fund. 
  
  ### Application to insurer
  
  (5) An insurer may pay or credit to or in favour of a segregated fund of the insurer the amount of a rebate under subsection (2) in respect of a taxable supply made by the insurer to the segregated fund that, if the segregated fund complied with section 261.4 in relation to the supply, would be payable to the segregated fund if 
  (a) the insurer and the segregated fund have filed an election made under subsection (3) that is in effect when tax in respect of the supply becomes payable; and 
  (b) the segregated fund, within one year after the day on which tax becomes payable in respect of the supply, submits to the insurer an application for the rebate in prescribed form containing prescribed information. 
  
  ### Forwarding of application by insurer
  
  (6) Where an application of a segregated fund of an insurer for a rebate under subsection (2) is submitted to the insurer in the circumstances described in subsection (5), 
  (a) the insurer shall transmit the application to the Minister with the insurer’s return filed under Division V for the reporting period of the insurer in which the rebate was paid or credited to the segregated fund; and 
  (b) interest under subsection 297(4) is not payable in respect of the rebate. 
  
  ### Joint and several liability
  
  (7) If an insurer, in determining its net tax for a reporting period, deducts an amount under subsection 234(5) that the insurer paid or credited to a segregated fund of the insurer on account of a rebate under subsection (2) and the insurer knows or ought to know that the segregated fund is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the segregated fund is entitled, the insurer and the segregated fund are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264. 
  
  ### Restriction
  
  261.4 (1) A rebate shall not be paid under any of sections 261.1 to 261.31 unless 
  (a) the person files an application for the rebate within one year after 
  (i) in the case of a rebate under section 261.1 in respect of property supplied in a participating province, the day the person removes the property from the participating province, and 
  (ii) in the case of a rebate under any of sections 261.2 to 261.31 in respect of tax payable by the person, the day that tax became payable; 
  (b) except where the application is a prescribed application, where the person is an individual, the individual has not made another application under this section in the calendar quarter in which the application is made; 
  (c) where the person is not an individual, the person has not made another application under this section in the calendar month in which the application is made; and 
  (d) prescribed circumstances, if any, exist. 
  (e)  [Repealed, 2009, c. 32, s. 35]  
  
  ### Exception for investment plans, etc.
  
  (2) A rebate under any of sections 261.1 to 261.3 in respect of tax paid or payable by a listed financial institution described in subparagraph 149(1)(a)(vi) or (ix) must not be paid. 
  261.5  [Repealed, 2000, c. 30, s. 78]  
  
  ### Form and filing of application
  
  262 (1) An application for a rebate under this Division (other than section 253) shall be made in prescribed form containing prescribed information and shall be filed with the Minister in prescribed manner. 
  
  ### Single application
  
  (2) Only one application may be made under this Division for a rebate with respect to any matter. 
  
  ### Group of individuals
  
  (3) 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 254 to 256 to a particular individual shall be read as references to all of those individuals as a group; 
  (b) the references in paragraphs 254(2)(b), 254.1(2)(b) and 255(2)(c) and 256(2)(a) and (2.2)(b) to the primary place of residence of the particular individual or a relation of the particular 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 references in clause 254(2)(g)(i)(A), subparagraphs 254.1(2)(g)(i), 255(2)(f)(i) and 256(2)(d)(i) and paragraph 256(2.2)(c) to the particular individual or a relation of the particular individual are to be read as references to any of those individuals or a relation of any of those individuals; and 
  (d) only one of those individuals may apply for the rebate under section 254, 254.1, 255 or 256, as the case may be, in respect of the complex or share. 
  
  ### Restriction on rebate
  
  263 A rebate of an amount under subsection 215.1(1) or (2) or 216(6) or any of sections 252 to 261.31, or a refund or abatement of an amount that, because of subsection 215.1(3) or 216(7), may be granted under section 69, 73, 74 or 76 of the Customs Act, shall not be paid or granted to a person to the extent that it can reasonably be regarded that  
  (a) the amount has previously been rebated, refunded or remitted to that person under this or any other Act of Parliament; 
  (b) the person has claimed or is entitled to claim an input tax credit in respect of the amount; 
  (c) the person has obtained or is entitled to obtain a rebate, refund or remission of the amount under any other section of this Act or under any other Act of Parliament; or 
  (d) a credit note referred to in subsection 232(3) has been received by the person, or a debit note referred to in that subsection has been issued by the person, for an adjustment, refund or credit that includes the amount. 
  
  ### Restriction on rebate, etc.
  
  263.01 (1) A rebate of an amount under any provision of this Act (other than sections 252.4 and 252.41) or a refund or abatement of an amount that, because of subsection 215.1(3) or 216(7), may be granted under section 69, 73, 74 or 76 of the Customs Act shall not be paid or granted to a person to the extent that it can reasonably be regarded that the amount is in respect of tax under subsection 165(2) or section 212.1 that became payable by the person at a time when the person was a selected listed financial institution, or that was paid by the person at that time without having become payable, in respect of property or a service acquired or imported by the person for consumption, use or supply in the course of a business of the person or an adventure or concern in the nature of trade of the person.  
  
  ### Exception — insurer
  
  (2) Subsection (1) does not apply to an amount of tax that became payable by an insurer or that was paid by the insurer without having become payable in respect of property or a service acquired or imported exclusively and directly for consumption, use or supply in the course of investigating, settling or defending a claim under an insurance policy that is not in the nature of accident and sickness or life insurance. 
  
  ### Exception — surety
  
  (3) Subsection (1) does not apply to an amount of tax that became payable by a surety (within the meaning of subsection 184.1(2)) or that was paid by the surety without having become payable in respect of property or a service acquired or imported 
  (a) exclusively and directly for consumption, use or supply in the course of carrying on, or engaging another person to carry on, the construction of real property in Canada that is undertaken in full or partial satisfaction of the surety’s obligations under a performance bond; and 
  (b) otherwise than for use as capital property of the surety or in improving capital property of the surety. 
  
  ### Exception — prescribed person
  
  (4) Despite subsection (1), a rebate under section 261.31 in respect of a prescribed amount of tax may be paid to a person that is prescribed for the purpose of subsection 261.31(2). 
  
  ### Restriction on rebate
  
  263.02 A rebate under this Part shall not be paid to a person at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act and the Select Luxury Items Tax Act have been filed with the Minister.  
  
  ### Idem
  
  263.1 Where a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate of a bankrupt, a rebate under this Part that the bankrupt was entitled to claim before the appointment shall not be paid to the bankrupt after the appointment unless all returns required under this Part to be filed for, or in respect of acquisitions of real property made in, reporting periods of the bankrupt ending before the appointment have been filed and all amounts required under this Part to be remitted by the bankrupt and all amounts payable under this Part by the bankrupt as penalty, interest, an instalment or a repayment in respect of those reporting periods have been remitted or paid, as the case may be.  
  
  ### Rebates in respect of beverages in returnable containers
  
  263.2 For the purposes of sections 252, 260 and 261.1, if a person is the recipient of a supply of a beverage in a filled and sealed returnable container or of a used and empty returnable container (or the material resulting from its compaction) and the supplier is deemed under paragraph 226(2)(b) or (4)(b) to have made to the person a taxable supply of a service in respect of the returnable container, tax paid in respect of the supply of the service is deemed to have been paid in respect of the supply of the beverage, empty returnable container or material, as the case may be. 
  
  ### Overpayment of rebate or interest
  
  264 (1) Where an amount is paid to, or applied to a liability of, a person as a rebate under section 215.1, subsection 216(6) or this Division (other than section 253) or as interest under section 297 and the person is not entitled to the rebate or interest, as the case may be, or the amount paid or applied exceeds the rebate or interest, as the case may be, to which the person is entitled, the person shall pay to the Receiver General an amount equal to the rebate, interest or excess, as the case may be, on the day the amount is paid to, or applied to a liability of, the person. 
  
  ### Effect of reduction of rebate
  
  (2) For the purposes of subsection (1), to the extent that a rebate has been paid to a person in excess of the amount to which the person was entitled and the amount of the excess has, by reason of section 263, reduced the amount of any other rebate to which the person would, but for the payment of the excess, be entitled, the person shall be deemed to have paid the amount of the excess to the Receiver General. 
  
  # DIVISION VII 
  
  ## Miscellaneous 
  
  # SUBDIVISION A 
  
  ## Trustees, Receivers and Personal Representatives 
  
  ### Bankruptcies
  
  265 (1) For the purposes of this Part, where on a particular day a person becomes a bankrupt, 
  (a) the trustee in bankruptcy is deemed to supply a service to the bankrupt of acting as trustee in bankruptcy and any amount to which the trustee is entitled for acting in that capacity is deemed to be consideration payable for that supply, but in every other respect, the trustee in bankruptcy is deemed to be the agent of the bankrupt and any supply made or received and any act performed by the trustee in the administration of the estate of the bankrupt or in the carrying on of any business of the bankrupt is deemed to have been made, received or performed, as the case may be, by the trustee as agent of the bankrupt; 
  (b) the estate of the bankrupt shall be deemed not to be a trust or an estate; 
  (c) the property and money of the person immediately before the particular day shall be deemed not to pass to and be vested in the trustee in bankruptcy on the bankruptcy order being made or the assignment in bankruptcy being filed but to remain vested in the bankrupt; 
  (d) the trustee in bankruptcy, and not the person, is liable for the payment or remittance of all amounts (other than amounts that relate solely to activities in which the person begins to engage on or after the particular day and to which the bankruptcy does not relate) that become payable or remittable by the person under this Part during the period beginning on the day immediately after the day the trustee became the trustee in bankruptcy of the person and ending on the day the discharge of the trustee is granted under the Bankruptcy and Insolvency Act, except that  
  (i) the trustee is liable for the payment or remittance of amounts that became payable or remittable by the person after the particular day in respect of periods that ended on or before the particular day, or of amounts that became payable or remittable by the person after the particular day in respect of supplies of real property made to the person on or before the particular day, only to the extent of the property and money of the person in possession of the trustee available to satisfy the liability, 
  (ii) the trustee is not liable for the payment or remittance of any amount for which a receiver (within the meaning assigned by subsection 266(1)) is liable under section 266, and 
  (iii) the payment or remittance by the person of an amount in respect of the liability shall discharge the liability of the trustee to the extent of that amount; 
  (e) where, on the particular day the person is registered under Subdivision D of Division V, the registration continues in relation to the activities of the person to which the bankruptcy relates as though the trustee in bankruptcy were the registrant in respect of those activities and ceases to apply to the activities of the person in which the person begins to engage on or after the particular day and to which the bankruptcy does not relate; 
  (f) where, on or after the particular day the person begins to engage in particular activities to which the bankruptcy does not relate, the particular activities shall be deemed to be separate from the activities of the person to which the bankruptcy relates as though the particular activities were activities of a separate person, and the person may 
  (i) apply for, and be granted, registration under Subdivision D of Division V, and 
  (ii) establish fiscal periods and establish and make elections respecting reporting periods, in relation to the particular activities as though they were the only activities of the person; 
  (g) the reporting periods of the person begin and end on the days on which they would have begun and ended if the bankruptcy had not occurred, except that 
  (i) the reporting period of the person during which the person becomes a bankrupt shall end on the particular day and a new reporting period of the person in relation to the activities of the person to which the bankruptcy relates shall begin on the day immediately after the particular day, and 
  (ii) the reporting period of the person, in relation to the activities of the person to which the bankruptcy relates, during which the trustee in bankruptcy is discharged under the Bankruptcy and Insolvency Act shall end on the day the discharge is granted;  
  (h) subject to paragraph (j), the trustee in bankruptcy shall file with the Minister in prescribed form containing prescribed information all returns in respect of 
  (i) the activities of the person to which the bankruptcy relates for, or 
  (ii) supplies of real property to which the bankruptcy relates and that are made to the person in, reporting periods of the person ending in the period beginning on the day immediately after the particular day and ending on the day the discharge of the trustee is granted under the Bankruptcy and Insolvency Act and that are required under this Part to be filed by the person, as if those activities were the only activities of the person;  
  (i) subject to paragraph (j), if the person has not on or before the particular day filed a return required under this Part to be filed by the person for, or in respect of a supply of real property made to the person in, a reporting period of the person ending 
  (i) on or before the particular day, and 
  (ii) in, or immediately before, the fiscal year of the person that included the particular day, the trustee in bankruptcy shall, unless the Minister waives in writing the requirement for the trustee to file the return, file with the Minister in prescribed form containing prescribed information a return for that reporting period of the person or in respect of that supply, as the case may be; 
  (j) where there is a receiver (within the meaning assigned by subsection 266(1)) with authority in respect of a business, a property, affairs or assets of the person, the trustee in bankruptcy is not required 
  (i) to include in any return any information that the receiver is required under section 266 to include in a return, or 
  (ii) to file a return in respect of any supply of real property made to the person in respect of which the receiver is required under section 266 to file a return; and 
  (k) the property and money held by the trustee in bankruptcy for the person on the day an order of absolute discharge of the person is granted under the Bankruptcy and Insolvency Act shall be deemed not to pass to the person on the order being granted but to have been held by and vested in the person continuously since the day it was acquired by the person or the trustee, as the case may be.  
  
  ### Definitions
  
  (2) In this section, 
  *bankrupt* and 
  *estate of the bankrupt* have the same meanings as in the Bankruptcy and Insolvency Act.  
  
  ### Definitions
  
  266 (1) In this section,  
  *business* includes a part of a business; (entreprise)   
  *receiver* means a person who  
  (a) under the authority of a debenture, bond or other debt security, of a court order or of an Act of Parliament or of the legislature of a province, is empowered to operate or manage a business or a property of another person, 
  (b) is appointed by a trustee under a trust deed in respect of a debt security to exercise the authority of the trustee to manage or operate a business or a property of the debtor under the debt security, 
  (c) is appointed by a bank to act as agent of the bank in the exercise of the authority of the bank under subsection 426(3) of the Bank Act in respect of property of another person,  
  (d) is appointed as a liquidator to liquidate the assets of a corporation or to wind up the affairs of a corporation, or 
  (e) is appointed as a committee, guardian or curator with authority to manage and care for the affairs and assets of an individual who is incapable of managing those affairs and assets, and includes a person who is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to operate or manage a business or a property of another person but, where a person is appointed to exercise the authority of a creditor under a debenture, bond or other debt security to operate or manage a business or a property of another person, does not include that creditor; ( séquestre)   
  *relevant assets* of a receiver means  
  (a) where the receiver’s authority relates to all the properties, businesses, affairs and assets of a person, all those properties, businesses, affairs and assets, and 
  (b) where the receiver’s authority relates to only part of the properties, businesses, affairs or assets of a person, that part of the properties, businesses, affairs or assets, as the case may be. ( actif pertinent)  
  
  ### Receivers
  
  (2) For the purposes of this Part, where on a particular day a receiver is vested with authority to manage, operate, liquidate, or wind up any business or property, or to manage and care for the affairs and assets, of a person, 
  (a) the receiver shall be deemed to be an agent of the person and any supply made or received and any act performed by the receiver in respect of the relevant assets of the receiver shall be deemed to have been made, received or performed, as the case may be, by the receiver as agent on behalf of the person; 
  (b) the receiver shall be deemed not to be a trustee of the estate of the person or any part of the estate of the person; 
  (c) where the relevant assets of the receiver are a part and not all of the person’s businesses, properties, affairs or assets, the relevant assets of the receiver shall be deemed to be, throughout the period during which the receiver is acting as receiver of the person, separate from the remainder of the businesses, properties, affairs or assets of the person as though the relevant assets were businesses, properties, affairs or assets, as the case may be, of a separate person; 
  (d) the person and the receiver are jointly and severally, or solidarily, liable for the payment or remittance of all amounts that become payable or remittable by the person under this Part before or during the period during which the receiver is acting as receiver of the person to the extent that the amounts can reasonably be considered to relate to the relevant assets of the receiver or to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person at the time the amounts became payable or remittable, as the case may be, except that 
  (i) the receiver is liable for the payment or remittance of amounts that became payable or remittable before that period only to the extent of the property and money of the person in possession or under the control and management of the receiver after 
  (A) satisfying the claims of creditors whose claims ranked, on the particular day, in priority to the claim of the Crown in respect of the amounts, and 
  (B) paying any amounts that the receiver is required to pay to a trustee in bankruptcy of the person, 
  (ii) the person is not liable for the remittance of any tax collected or collectible by the receiver, and 
  (iii) the payment or remittance by the person or the receiver of an amount in respect of the liability shall discharge their liability to the extent of that amount; 
  (e) the reporting periods of the person begin and end on the days on which they would have begun and ended if the vesting had not occurred, except that 
  (i) the reporting period of the person, in relation to the relevant assets of the receiver, during which the receiver begins to act as receiver of the person, shall end on the particular day and a new reporting period of the person in relation to the relevant assets shall begin on the day immediately after the particular day, and 
  (ii) the reporting period of the person, in relation to the relevant assets, during which the receiver ceases to act as receiver of the person, shall end on the day the receiver ceases to act as receiver of the person; 
  (f) the receiver shall file with the Minister in prescribed form containing prescribed information all returns in respect of the relevant assets of the receiver for, or in respect of supplies of real property that can reasonably be considered to relate to the relevant assets and that were made to the person in, reporting periods ending in the period during which the receiver is acting as receiver and that are required under this Part to be made by the person, as if the relevant assets were the only properties, businesses, affairs and assets of the person; 
  (g) if the person has not on or before the particular day filed a return required under this Part to be filed by the person for a reporting period of the person ending 
  (i) on or before the particular day, and 
  (ii) in, or immediately before, the fiscal year of the person that included the particular day, the receiver shall, unless the Minister waives in writing the requirement for the receiver to file the return, file with the Minister in prescribed form containing prescribed information a return for that reporting period that relates to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person during that reporting period; and 
  (h) if the person has not on or before the particular day filed a return required under this Part to be filed by the person in respect of a supply of real property made to the person in a reporting period of the person ending 
  (i) on or before the particular day, and 
  (ii) in, or immediately before, the fiscal year of the person that included the particular day, and that can reasonably be considered to relate to the businesses, properties, affairs or assets of the person that would have been the relevant assets of the receiver if the receiver had been acting as receiver of the person during that reporting period, the receiver shall, unless the Minister waives in writing the requirement for the receiver to file the return, file with the Minister in prescribed form containing prescribed information a return in respect of the supply. 
  
  ### Estate of a deceased individual
  
  267 Subject to sections 267.1, 269 and 270, if an individual dies, this Part (other than section 279) applies as though the estate of the individual were the individual and the individual had not died, except that 
  (a) the reporting period of the individual during which the individual died ends on the day the individual died; and 
  (b) a reporting period of the estate begins on the day after the individual died and ends on the day the reporting period of the individual would have ended if the individual had not died. 
  
  ### Definitions
  
  267.1 (1) The definitions in this subsection apply in this section and in sections 268 to 270.  
  *trust* includes the estate of a deceased individual. (fiducie)   
  *trustee* includes the personal representative of a deceased individual, but does not include a receiver (within the meaning assigned by subsection 266(1)). (fiduciaire)  
  
  ### Trustee’s liability
  
  (2) Subject to subsection (3), each trustee of a trust is liable to satisfy every obligation imposed on the trust under this Part, whether the obligation was imposed during or before the period during which the trustee acts as trustee of the trust, but the satisfaction of an obligation of a trust by one of the trustees of the trust discharges the liability of all other trustees of the trust to satisfy that obligation. 
  
  ### Joint and several liability
  
  (3) A trustee of a trust is jointly and severally, or solidarily, liable with the trust and each of the other trustees, if any, for the payment or remittance of all amounts that become payable or remittable by the trust under this Part before or during the period during which the trustee acts as trustee of the trust except that 
  (a) the trustee is liable for the payment or remittance of amounts that became payable or remittable before the period only to the extent of the property and money of the trust under the control of the trustee; and 
  (b) the payment or remittance by the trust or the trustee of an amount in respect of the liability discharges their liability to the extent of that amount. 
  
  ### Waiver
  
  (4) The Minister may, in writing, waive the requirement for the personal representative of a deceased individual to file a return for a reporting period of the individual ending on or before the day the individual died. 
  
  ### Activities of a trustee
  
  (5) For the purposes of this Part, where a person acts as trustee of a trust, 
  (a) anything done by the person in the person’s capacity as trustee of the trust is deemed to have been done by the trust and not by the person; and 
  (b) notwithstanding paragraph (a), where the person is not an officer of the trust, the person is deemed to supply a service to the trust of acting as a trustee of the trust and any amount to which the person is entitled for acting in that capacity that is included in computing, for the purposes of the Income Tax Act, the person’s income or, where the person is an individual, the person’s income from a business, is deemed to be consideration for that supply.  
  
  ###  Inter vivos trust 
  
  268 For the purposes of this Part, where a person settles property on an inter vivos trust,  
  (a) the person is deemed to have made and the trust is deemed to have received a supply by way of sale of the property; and 
  (b) the supply is deemed to have been made for consideration equal to the amount determined under the Income Tax Act to be the proceeds of disposition of the property.  
  
  ### Distribution by trust
  
  269 For the purposes of this Part, where a trustee of a trust distributes property of the trust to one or more persons, the distribution of the property is deemed to be a supply of the property made by the trust at the place at which the property is delivered or made available to the persons and for consideration equal to the amount determined under the Income Tax Act to be the proceeds of disposition of the property.  
  
  ### Definitions
  
  270 (1) In this section,  
  *receiver* means a person who is a receiver within the meaning assigned by subsection 266(1); (séquestre)   
  *representative* means  
  (a) a person, other than a trustee in bankruptcy or a receiver, who is administering, winding up, controlling or otherwise dealing with any property, business, commercial activity or estate of a registrant, and 
  (b) a trustee of a trust that is a registrant. ( représentant)  
  
  ### Certificates for receivers
  
  (2) Every receiver shall, before distributing to any person any property or money under the control of the receiver in the receiver’s capacity as receiver, obtain a certificate from the Minister certifying that all amounts that are, or can reasonably be expected to become, payable or remittable under this Part by the receiver in that capacity in respect of the reporting period during which the distribution is made, or any previous reporting period, have been paid or that security for the payment or remittance of the amounts has, in accordance with this Part, been accepted by the Minister. 
  
  ### Certificates for representatives
  
  (3) Every representative of a registrant shall, before distributing to any person any property or money under the control of the representative in the representative’s capacity as the representative, obtain a certificate from the Minister certifying that 
  (a) all amounts that are payable or remittable by the registrant under this Part in respect of the reporting period during which the distribution is made, or any previous reporting period, and 
  (b) all amounts that are, or can reasonably be expected to become, payable or remittable under this Part by the representative in that capacity in respect of the reporting period during which the distribution is made, or any previous reporting period, have been paid or that security for the payment or remittance of the amounts has, in accordance with this Part, been accepted by the Minister. 
  
  ### Liability for failure to obtain certificate
  
  (4) Any 
  (a) receiver who distributes property or money without obtaining a certificate as required by subsection (2) in respect of the amounts referred to in that subsection, or 
  (b) representative who distributes property or money without obtaining a certificate as required by subsection (3) in respect of the amounts referred to in that subsection is personally liable for the payment or remittance of those amounts to the extent of the value of the property or money so distributed. 
  
  # SUBDIVISION B 
  
  ## Amalgamation and Winding-up 
  
  ### Amalgamations
  
  271 Where two or more corporations (each of which is referred to in this section as a “predecessor”) are merged or amalgamated to form one corporation (in this section referred to as the “new corporation”), otherwise than as the result of the acquisition of property of one corporation by another corporation pursuant to the purchase of the property by the other corporation or as the result of the distribution of the property to the other corporation on the winding-up of the corporation, 
  (a) except as otherwise provided in this Part, the new corporation shall, for the purposes of this Part, be deemed to be a separate person from each of the predecessors; 
  (b) for the purposes of applying the provisions of this Part in respect of property or a service acquired, imported or brought into a participating province by a predecessor, for the purposes of sections 231 and 249, and for prescribed purposes, the new corporation shall be deemed to be the same corporation as, and a continuation of, each predecessor; and 
  (c) for the purposes of this Part, the transfer of any property by a predecessor to the new corporation as a consequence of the merger or amalgamation shall be deemed not to be a supply. 
  
  ### Winding-up
  
  272 Where at any time a particular corporation is wound up and not less than 90% of the issued shares of each class of the capital stock of the particular corporation were, immediately before that time, owned by another corporation, 
  (a) for the purposes of applying the provisions of this Part in respect of property or a service acquired, imported or brought into a participating province by the other corporation as a consequence of the winding-up, for the purposes of sections 231 and 249, and for prescribed purposes, the other corporation shall be deemed to be the same corporation as, and a continuation of, the particular corporation; and 
  (b) for the purposes of this Part, the transfer of any property to the other corporation as a consequence of the winding-up shall be deemed not to be a supply. 
  
  # SUBDIVISION B.1 
  
  ## Partnerships and Joint Ventures 
  
  ### Partnerships
  
  272.1 (1) For the purposes of this Part, anything done by a person as a member of a partnership is deemed to have been done by the partnership in the course of the partnership’s activities and not to have been done by the person. 
  
  ### Acquisitions by member
  
  (2) Despite subsection (1), if property or a service is acquired, imported or brought into a participating province by a member of a partnership for consumption, use or supply in the course of activities of the partnership but not on the account of the partnership, the following rules apply: 
  (a) except as otherwise provided in subsection 175(1), the partnership is deemed 
  (i) not to have acquired or imported the property or service, and 
  (ii) where the property was brought by the member into a participating province, not to have so brought it into that province; 
  (b) where the member is not an individual, for the purpose of determining an input tax credit or rebate of the member in respect of the property or service and, in the case of property that is acquired or imported for use as capital property of the member, applying Subdivision D of Division II in relation to the property, subsection (1) does not apply to deem the member not to have acquired or imported the property or service and the member is deemed to be engaged in those activities of the partnership; and 
  (c) where the member is not an individual and the partnership at any time pays an amount to the member as a reimbursement and is entitled to claim an input tax credit in respect of the property or service in circumstances in which subsection 175(1) applies, any input tax credit in respect of the property or service that the member would, but for this paragraph, be entitled to claim in a return of the member that is filed with the Minister after that time shall be reduced by the amount of the input tax credit that the partnership is entitled to claim. 
  
  ### Supply to partnership
  
  (3) Where a person who is or agrees to become a member of a partnership supplies property or a service to the partnership otherwise than in the course of the partnership’s activities 
  (a) where the property or service is acquired by the partnership for consumption, use or supply exclusively in the course of commercial activities of the partnership, any amount that the partnership agrees to pay to or credit the person in respect of the property or service is deemed to be consideration for the supply that becomes due at the time the amount is paid or credited; 
  (b) in the case of management or administrative services that are rendered by a general partner of an investment limited partnership to the investment limited partnership under an agreement for the particular supply of those services, 
  (i) if subsection 136.1(2) applies in respect of the particular supply, for each separate supply of those services that is deemed under paragraph 136.1(2)(a) to be made by the general partner for a billing period (within the meaning of that subsection), the separate supply is deemed, despite paragraph 136.1(2)(c), to be made for consideration that becomes due on the last day of the billing period equal to the fair market value of the services rendered under the agreement by the general partner to the investment limited partnership during the billing period, determined as if the general partner were not a member of the investment limited partnership and were dealing at arm’s length with the investment limited partnership, and 
  (ii) in any other case, 
  (A) the general partner is deemed to have made, and the investment limited partnership is deemed to have received, a separate supply of those services for each reporting period of the general partner during which those services are, or are to be, rendered under the agreement, and 
  (B) each separate supply of those services that is deemed to be made under clause (A) for a reporting period of the general partner is deemed to be made on the first day of the reporting period for consideration that becomes due on the last day of the reporting period equal to the fair market value of the services rendered under the agreement by the general partner to the investment limited partnership during the reporting period, determined as if the general partner were not a member of the investment limited partnership and were dealing at arm’s length with the investment limited partnership; and 
  (c) in any other case, the supply is deemed to have been made for consideration that becomes due at the time the supply is made equal to the fair market value at that time of the property or service acquired by the partnership determined as if the person were not a member of the partnership and were dealing at arm’s length with the partnership. 
  
  ### Deemed supply to partner
  
  (4) Where a partnership disposes of property of the partnership 
  (a) to a person who, at the time the disposition is agreed to or otherwise arranged, is or has agreed to become a member of the partnership, or 
  (b) to a person as a consequence of that person ceasing to be a member of the partnership, the following rules apply: 
  (c) the partnership is deemed to have made to the person, and the person is deemed to have received from the partnership, a supply of the property for consideration that becomes due at the time the property is disposed of equal to the total fair market value of the property (including the fair market value of the person’s interest in the property) immediately before the time the property is disposed of, and 
  (d) subsection 172(2) does not apply in respect of the supply. 
  
  ### Joint and several liability
  
  (5) A partnership and each member or former member (each of which is referred to in this subsection as the “member”) of the partnership (other than a member who is a limited partner and is not a general partner) are jointly and severally, or solidarily, liable for 
  (a) the payment or remittance of all amounts that become payable or remittable by the partnership under this Part before or during the period during which the member is a member of the partnership or, where the member was a member of the partnership at the time the partnership was dissolved, after the dissolution of the partnership, except that 
  (i) the member is liable for the payment or remittance of amounts that become payable or remittable before the period only to the extent of the property and money that is regarded as property or money of the partnership under the relevant laws of general application in force in a province relating to partnerships, and 
  (ii) the payment or remittance by the partnership or by any member thereof of an amount in respect of the liability discharges their liability to the extent of that amount; and 
  (b) all other obligations under this Part that arose before or during that period for which the partnership is liable or, where the member was a member of the partnership at the time the partnership was dissolved, the obligations that arose upon or as a consequence of the dissolution. 
  
  ### Continuation of partnership
  
  (6) Where a partnership would, but for this subsection, be regarded as having ceased to exist, the partnership is deemed for the purposes of this Part not to have ceased to exist until the registration of the partnership is cancelled. 
  
  ### Continuation of predecessor partnership by new partnership
  
  (7) Where 
  (a) a partnership (in this subsection referred to as the “predecessor partnership”) would, but for this section, be regarded as having ceased at any time to exist, 
  (b) a majority of the members of the predecessor partnership that together had, at or immediately before that time, more than a 50% interest in the capital of the predecessor partnership become members of another partnership of which they comprise more than half of the members, and 
  (c) the members of the predecessor partnership who become members of the other partnership transfer to the other partnership all or substantially all of the property distributed to them in settlement of their capital interests in the predecessor partnership, except where the other partnership is registered or applies for registration under section 240, the other partnership is deemed to be a continuation of and the same person as the predecessor partnership. 
  
  ### Investment limited partnership — supply by general partner
  
  (8) For the purposes of this Part, if a general partner of an investment limited partnership renders a management or administrative service to the investment limited partnership, 
  (a) the rendering of the service is deemed not to be done by the general partner as a member of the investment limited partnership; and 
  (b) the supply by the general partner to the investment limited partnership that includes the service is deemed to have been made otherwise than in the course of the investment limited partnership’s activities. 
  
  ### Joint venture election
  
  273 (1) Where a registrant (in this section referred to as the “operator”) is a participant in a joint venture (other than a partnership) under an agreement, evidenced in writing, with another person (in this section referred to as the “co-venturer”) for the exploration or exploitation of mineral deposits or for a prescribed activity, and the operator and the co-venturer jointly make an election under this subsection, 
  (a) all properties and services that are, during the period the election is in effect, supplied, acquired, imported or brought into a participating province under the agreement by the operator on behalf of the co-venturer in the course of the activities for which the agreement was entered into shall, for the purposes of this Part, be deemed to be supplied, acquired, imported or brought into the province, as the case may be, by the operator and not by the co-venturer; 
  (b) section 177 does not apply in respect of a supply referred to in paragraph (a); and 
  (c) all supplies of property or services made, during the period the election is in effect, under the agreement by the operator to the co-venturer shall, for the purposes of this Part, be deemed not to be supplies to the extent that the property or services are, but for this section, acquired by the co-venturer for consumption, use or supply in the course of commercial activities for which the agreement was entered into. 
  
  ### Exception
  
  (1.1) Paragraph (1)(a) does not apply to the acquisition, importation or bringing into a participating province of property or a service by an operator on behalf of a co-venturer where the property or service is so acquired, imported or brought into the province for consumption, use or supply in the course of activities that are not commercial activities and the operator 
  (a) is a government other than a specified Crown agent; or 
  (b) would not be required, because of an Act of Parliament other than this Act, to pay tax in respect of the acquisition, importation or bringing into the province of the property or service if the operator acquired or, imported the property or service or brought it into the province for that purpose otherwise than on behalf of the co-venturer. 
  
  ### Assignee of interest in joint venture
  
  (2) For the purposes of this section, where a particular person has made an election under this section with respect to a joint venture and at any time during the period the election is in effect another person becomes a participant in the venture by acquiring an interest in it from the particular person, the other person shall be deemed to have made, at that time, an election under this section in accordance with subsection (4) with respect to the venture jointly with the operator of the venture. 
  
  ### Revocation
  
  (3) An operator and a co-venturer who have jointly made an election under this section may jointly revoke the election. 
  
  ### Form of election or revocation
  
  (4) An election or revocation under this section made jointly by an operator and a co-venturer is not a valid election or revocation unless it is made in prescribed form containing prescribed information and specifies the effective date of the election or revocation. 
  
  ### Joint and several liability
  
  (5) Where a registrant and another person make, or purport to make, an election under subsection (1) in respect of an agreement between the registrant and the person, the registrant and the other person are jointly and severally liable for all obligations under this Part that result from the activities for which the agreement was entered into and that are or would be, but for this section, engaged in by the registrant on behalf of the other person. 
  
  ### Joint venture beginning before 1991
  
  (6) Where an operator who is a participant in a joint venture (other than a partnership) under an agreement referred to in subsection (1) entered into before 1991 with a co-venturer files a return for the operator’s first reporting period beginning after 1990 in which all properties and services supplied, acquired or imported by the operator on behalf of the co-venturer in the course of the activities for which the agreement was entered into are reported as having been supplied, acquired or imported, as the case may be, by the operator and not by the co-venturer, the operator shall be deemed to have made jointly with the co-venturer an election under this section in accordance with subsection (4). 
  
  ### Application of subsection (6)
  
  (7) Subsection (6) applies as between an operator and a co-venturer, in respect of an agreement, only where 
  (a) the operator sends a notice in writing to the co-venturer not later than December 31, 1990 of the operator’s intention to file a return for the operator’s first reporting period beginning after 1990 reporting on the basis provided in subsection (6) with respect to all property and services supplied, acquired or imported by the operator on behalf of the co-venturer in the course of the activities for which the agreement was entered into; and 
  (b) the co-venturer has not, on or before the day that is the earlier of February 1, 1991 and the day that is 30 days after receipt of the notice from the operator, advised the operator in writing that all property and services supplied, acquired or imported by the operator on the co-venturer’s behalf in the course of the activities for which the agreement was entered into are not to be treated as having been supplied, acquired or imported by the operator. 
  
  # SUBDIVISION B.2 
  
  ## Export Distribution Centres 
  
  ### Definitions
  
  273.1 (1) The definitions in this subsection apply in this section.  
  *added property* that is in the possession of a person means tangible personal property (other than property that serves as evidence of the payment of postage) or software that the person incorporates into, attaches to, combines or assembles with, or uses to pack, other property that is not property of the person held otherwise than for sale by the person. (bien d’appoint)   
  *base value* of property that a particular person imports or obtains physical possession of in Canada from another person means  
  (a) if the particular person imports the property, the value that is or would be, but for subsection 215(2), deemed under subsection 215(1) to be the value of the property for the purposes of Division III; and 
  (b) in any other case, the fair market value of the property at the time the particular person obtains physical possession of it in Canada. ( valeur de base)   
  *basic service* means any of the following services performed at any time in respect of goods, to the extent that, if the goods were held in a bonded warehouse at that time, it would be feasible, given the stage of processing of the goods at that time, to perform that service in the bonded warehouse and it would be permissible to do so according to the Customs Bonded Warehouses Regulations :  
  (a) disassembling or reassembling, if the goods have been assembled or disassembled for packing, handling or transportation purposes; 
  (b) displaying; 
  (c) inspecting; 
  (d) labelling; 
  (e) packing; 
  (f) removing, for the sole purpose of soliciting orders for goods or services, a small quantity of material, or a portion, a piece or an individual object, that represents the goods; 
  (g) storing; 
  (h) testing; or 
  (i) any of the following that do not materially alter the characteristics of the goods: 
  (i) cleaning, 
  (ii) complying with any applicable law of Canada or of a province, 
  (iii) diluting, 
  (iv) normal maintenance and servicing, 
  (v) preserving, 
  (vi) separating defective goods from prime quality goods, 
  (vii) sorting or grading, and 
  (viii) trimming, filing, slitting or cutting. ( service de base)   
  *bonded warehouse* has the meaning assigned by subsection 2(1) of the Customs Act. (entrepôt de stockage)   
  *customer’s good*, in respect of a particular person, means tangible personal property of another person that the particular person imports, or obtains physical possession of in Canada, for the purpose of supplying a service or added property in respect of the tangible personal property. (produit de client)   
  *domestic inventory* of a person means tangible personal property that the person acquires in Canada, or acquires outside Canada and imports, for the purpose of selling the property separately for consideration in the ordinary course of a business carried on by the person. (stocks intérieurs)   
  *export revenue* of a particular person for a fiscal year means the total of all amounts each of which is consideration, included in determining the specified total revenue of the person for the year, for  
  (a) a supply by way of sale of an item of domestic inventory of the person that is made outside Canada or included in Part V of Schedule VI (other than sections 2.1, 3, 11, 14 and 15.1 of that Part); 
  (b) a supply by way of sale of added property acquired by the person for the purpose of processing in Canada particular property where the particular property, or all the products resulting from that processing, as the case may be, are exported, after that processing is complete, without being consumed, used, transformed or further processed, manufactured or produced in Canada by another person except to the extent reasonably necessary or incidental to the transportation of the particular property or those products; or 
  (c) a supply of a service of processing, storing or distributing tangible personal property of another person if the property, or all the products resulting from that processing, as the case may be, are exported, after the processing in Canada, if any, by the particular person is complete, without being consumed, used, transformed or further processed, manufactured or produced in Canada by any person other than the particular person except to the extent reasonably necessary or incidental to the transportation of that property or those products. ( recettes d’exportation)   
  *export revenue percentage* of a person for a year means the proportion (expressed as a percentage) that the person’s export revenue for the year is of the person’s specified total revenue for the year. (pourcentage de recettes d’exportation)   
  *finished inventory* of a person means property of the person (other than capital property) that is in the state at which it is intended to be sold by the person, or to be used by the person as added property, in the course of a business carried on by the person. (stocks finis)   
  *labelling* includes marking, tagging and ticketing. (étiquetage)   
  *packing* includes unpacking, repacking, packaging and repackaging. (emballage)   
  *processing* includes adjusting, altering, assembling and any basic service. (traitement)   
  *specified total revenue* of a person for a fiscal year of the person means the total of all amounts each of which is consideration, included in determining the income from a business of the person for the year, for a supply made by the person (or that would be made by the person but for any provision of this Part that deems the supply to be made by another person), other than  
  (a) a supply of a service in respect of property that the person neither imports nor obtains physical possession of in Canada for the purpose of providing the service; 
  (b) a supply by way of sale of particular property that the person acquires for the purpose of selling the particular property (or selling other property to which the particular property has been added or with which the particular property has been combined) for consideration but that is neither acquired in Canada nor imported by the person; 
  (c) a supply by way of sale of added property that the person acquires for the purpose of processing tangible personal property that the person neither imports nor obtains physical possession of in Canada; and 
  (d) a supply by way of sale of capital property of the person. ( recettes totales déterminées)   
  *substantial alteration of property* by a person, in respect of a fiscal year of the person, means  
  (a) manufacturing or producing, or engaging another person to manufacture or produce, property (other than capital property of the person) at any time in the year in the course of a business carried on by the person; or 
  (b) any processing undertaken by or for the person during the year to bring property of the person to a state at which the property or the product of that processing is finished inventory of the person, if 
  (i) the person’s percentage value added attributable to non-basic services in respect of finished inventory of the person for the year exceeds 10%, and 
  (ii) the person’s percentage total value added in respect of finished inventory of the person for the year exceeds 20%. ( modification sensible)  
  
  ### Value added attributable to non-basic services in respect of finished inventory
  
  (2) A person’s percentage value added attributable to non-basic services in respect of finished inventory of the person for a fiscal year of the person is the amount (expressed as a percentage) determined by the formula is the total of all amounts each of which 
  (a) is part of the total cost to the person of all property that was finished inventory of the person supplied, or used as added property, by the person during the year, and 
  (b) is reasonably attributable to 
  (i) salary, wages or other remuneration paid or payable to employees of the person, excluding any amounts that are reasonably attributable to the performance of basic services, or 
  (ii) consideration paid or payable by the person to engage other persons to perform processing, excluding any portion of such consideration that is reasonably attributed by the other persons to tangible personal property supplied in connection with that processing or that is reasonably attributable to the performance of basic services, and is the total cost to the person of the property. 
  
  ### Total value added in respect of finished inventory
  
  (3) The percentage total value added in respect of finished inventory of a person for a fiscal year of the person is the amount (expressed as a percentage) that would be determined for the year by the formula in subsection (2) if the total for A in that subsection did not exclude any amounts that are reasonably attributable to the performance of basic services. 
  
  ### Value added attributable to non-basic services in respect of customers’ goods
  
  (4) A person’s percentage value added attributable to non-basic services in respect of customers’ goods for a fiscal year of the person is the amount (expressed as a percentage) determined by the formula is the total of all consideration, included in determining the income from a business of the person for the year, for supplies of services, or of added property, in respect of customers’ goods, other than the portion of such consideration that is reasonably attributable to the performance of basic services or to the provision of added property used in the performance of basic services, and is the total of the base values of the customers’ goods. 
  
  ### Total value added in respect of customers’ goods
  
  (5) A person’s percentage total value added in respect of customers’ goods for a fiscal year of the person is the percentage that would be determined for the year by the formula in subsection (4) if the total for A in that subsection did not exclude any amounts that are reasonably attributable to the performance of basic services or the provision of added property used in the performance of basic services. 
  
  ### Non-arm’s length transactions
  
  (6) For the purpose of determining a particular person’s export revenue percentage or an amount under any of subsections (2) to (5) in respect of finished inventory of a particular person or customers’ goods in respect of a particular person, if a supply between the particular person and another person with whom the particular person is not dealing at arm’s length is made for no consideration or for less than fair market value and any consideration for the supply would be included in determining the income from a business of the particular person for a year, the supply is deemed to have been made for consideration equal to fair market value and that consideration is deemed to be included in determining that income. 
  
  ### Export distribution centre certificate
  
  (7) The Minister may, on the application of a person who is registered under Subdivision D of Division V and who is engaged exclusively in commercial activities, authorize the person to use, beginning on a particular day in a fiscal year of the person and subject to such conditions as the Minister may from time to time specify, a certificate (in this section referred to as an “export distribution centre certificate”) for the purposes of section 1.2 of Part V of Schedule VI and section 11 of Schedule VII, if it can reasonably be expected that 
  (a) the person will not engage in the substantial alteration of property in the year; 
  (b) either the person’s percentage value added attributable to non-basic services in respect of customers’ goods for the year will not exceed 10% or the person’s percentage total value added in respect of customers’ goods for the year will not exceed 20%; and 
  (c) the person’s export revenue percentage for the year will be at least 90%. 
  
  ### Application
  
  (8) An application for an authorization to use an export distribution centre certificate shall be made in prescribed form containing prescribed information and be filed with the Minister in prescribed manner. 
  
  ### Notice of authorization
  
  (9) If the Minister authorizes a person to use an export distribution centre certificate, the Minister shall notify the person in writing of the authorization, its effective date and its expiry date and the number assigned by the Minister that identifies the person or the authorization and that must be disclosed by the person when providing the certificate for the purpose of section 1.2 of Part V of Schedule VI or when accounting for imported goods in accordance with section 11 of Schedule VII. 
  
  ### Revocation
  
  (10) The Minister may, after giving a person to whom an authorization has been granted under subsection (7) reasonable written notice, revoke the authorization, effective on a day in a particular fiscal year of the person, if 
  (a) the person fails to comply with any condition attached to the authorization or with any provision of this Part; 
  (b) it can reasonably be expected that 
  (i) one or both of the conditions described in paragraphs (7)(a) and (b) would not be met if the fiscal year referred to in those paragraphs were the particular fiscal year, or 
  (ii) the person’s export revenue percentage for the particular fiscal year will be less than 80%; or 
  (c) the person has requested in writing that the authorization be revoked as of that day. 
  
  ### Deemed revocation
  
  (11) Subject to subsection (10), an authorization granted to a person under subsection (7) is deemed to have been revoked, effective immediately after a fiscal year of the person, if 
  (a) the person had engaged in the substantial alteration of property in that year; 
  (b) the person’s percentage value added attributable to non-basic services in respect of customers’ goods for the year exceeds 10% and the person’s percentage total value added in respect of customers’ goods for the year exceeds 20%; or 
  (c) the person’s export revenue percentage for the year is less than 80%. 
  
  ### Cessation
  
  (12) An authorization granted under subsection (7) to a person ceases to have effect immediately before the earlier of 
  (a) the day on which a revocation of the authorization becomes effective, and 
  (b) the day that is three years after the day on which the authorization became effective. 
  
  ### Application after revocation
  
  (13) If an authorization granted to a person under subsection (7) is revoked, effective on a particular day, the Minister shall not grant to the person another authorization under that subsection that becomes effective before 
  (a) if the authorization was revoked in circumstances described in paragraph (10)(a), the day that is two years after the particular day; and 
  (b) in any other case, the first day of the second fiscal year of the person beginning after the particular day. 
  
  # SUBDIVISION B.3 
  
  ## Information Returns 
  
  ### Definitions
  
  273.2 (1) The following definitions apply in this section and section 284.1.  
  *actual amount* means any amount that is required to be reported in an information return that a person is required to file under subsection (3) for a fiscal year of the person and that is  
  (a) a tax amount for the fiscal year or a previous fiscal year of the person; or 
  (b) an amount calculated using only tax amounts for the fiscal year or a previous fiscal year of the person, unless all of those tax amounts are required to be reported in the information return. ( montant réel)   
  *tax amount* for a fiscal year of a person means an amount that  
  (a) is tax paid or payable (other than tax paid or payable under Division II), or is tax that is deemed under this Part to have been paid or become payable, by the person at any time during the fiscal year; 
  (b) became collectible or was collected, or is deemed under this Part to have become collectible or to have been collected, by the person as or on account of tax under Division II in a reporting period of the person in the fiscal year; 
  (c) is an input tax credit for a reporting period of the person in the fiscal year; 
  (d) is an amount that is required to be added or that may be deducted in determining net tax for a reporting period of the person in the fiscal year; or 
  (e) is required under this Part to be used in calculating or determining any amount described in paragraph (b) or (d), other than 
  (i) an amount that is consideration for a supply, 
  (ii) an amount that is the value of property or a service, or 
  (iii) a percentage. ( montant de taxe)  
  
  ### Reporting institution
  
  (2) For the purposes of this section and section 284.1, a person, other than a prescribed person or a person of a prescribed class, is a reporting institution throughout a fiscal year of the person if 
  (a) the person is a financial institution at any time in the fiscal year; 
  (b) the person is a registrant at any time in the fiscal year; and 
  (c) the total of all amounts each of which is an amount included in computing, for the purposes of the Income Tax Act, the person’s income, or, if the person is an individual, the person’s income from a business, for the last taxation year of the person that ends in the fiscal year, exceeds the amount determined by the formula  is the number of days in the taxation year. 
  
  ### Information return for reporting institution
  
  (3) A reporting institution shall file an information return with the Minister for a fiscal year of the reporting institution in prescribed form containing prescribed information on or before the day that is six months after the end of the fiscal year. 
  
  ### Estimates
  
  (4) Every reporting institution that is required to report, in an information return filed under subsection (3), an amount (other than an actual amount) that is not reasonably ascertainable at the time on or before which the information return is required to be filed shall provide a reasonable estimate of the amount in the information return. 
  
  ### Ministerial exemption
  
  (5) The Minister may exempt any reporting institution or class of reporting institutions from the requirement, under subsection (3), to provide any prescribed information or may allow any reporting institution or class of reporting institutions to provide a reasonable estimate of any actual amount that is required to be reported in an information return under that subsection. 
  
  ### Electronic funds transfer
  
  273.3 For greater certainty, information obtained by the Minister under Part XV.1 of the Income Tax Act may be used for the purposes of this Part.  
  
  # SUBDIVISION C 
  
  ## Anti-avoidance 
  
  ### Definitions
  
  274 (1) In this section,  
  *tax benefit* means a reduction, an avoidance or a deferral of tax or other amount payable under this Part or an increase in a refund or rebate of tax or other amount under this Part; (avantage fiscal)   
  *tax consequences* to a person means the amount of tax, net tax, input tax credit, rebate or other amount payable by, or refundable to, the person under this Part, or any other amount that is relevant to the purposes of computing that amount; (attribut fiscal)   
  *transaction* includes an arrangement or event. (opération)  
  
  ### General anti-avoidance provision
  
  (2) Where a transaction is an avoidance transaction, the tax consequences to a person shall be determined as is reasonable in the circumstances in order to deny a tax benefit that, but for this section, would result, directly or indirectly, from that transaction or from a series of transactions that include that transaction. 
  
  ### Avoidance transaction
  
  (3) An avoidance transaction means any transaction 
  (a) that, but for this section, would result, directly or indirectly, in a tax benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the tax benefit; or 
  (b) that is part of a series of transactions, which series, but for this section, would result directly or indirectly in a tax benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the tax benefit. 
  
  ### Provision not applicable
  
  (4) For greater certainty, subsection (2) does not apply in respect of a transaction where it may reasonably be considered that the transaction would not result, directly or indirectly, in a misuse of the provisions of this Part or in an abuse having regard to the provisions of this Part (other than this section) read as a whole. 
  
  ### Determination of tax consequences
  
  (5) Without restricting the generality of subsection (2), 
  (a) any input tax credit or any deduction in computing tax or net tax payable may be allowed or disallowed, in whole or in part, 
  (b) any such credit or deduction or a part thereof may be allocated to any person, 
  (c) the nature of any payment or other amount may be recharacterized, and 
  (d) the tax effects that would otherwise result from the application of other provisions of this Part may be ignored, in determining the tax consequences to a person as is reasonable in the circumstances in order to deny a tax benefit that would, but for this section, result, directly or indirectly, from an avoidance transaction. 
  
  ### Request for adjustments
  
  (6) If, with respect to a transaction, a notice of assessment, reassessment or additional assessment involving the application of subsection (2) with respect to the transaction has been sent to a person, any person (other than a person to whom such a notice has been sent) is entitled, within 180 days after the day of sending of the notice, to request in writing that the Minister make an assessment, a reassessment or an additional assessment, applying subsection (2) with respect to that transaction. 
  
  ### Exception
  
  (7) Notwithstanding any other provision of this Part, the tax consequences to any person following the application of this section shall only be determined through a notice of assessment, reassessment or additional assessment involving the application of this section. 
  
  ### Duties of Minister
  
  (8) On receipt of a request by a person under subsection (6), the Minister shall, with all due dispatch, consider the request and, notwithstanding subsections 298(1) and (2), assess, reassess or make an additional assessment with respect to the person, except that an assessment, a reassessment or an additional assessment may be made under this subsection only to the extent that it may reasonably be regarded as relating to the transaction referred to in subsection (6). 
  
  ### Rate change — variation of agreement
  
  274.1 If 
  (a) at any time before July 1, 2006, a supplier and a recipient enter into an agreement for a taxable supply of property or a service, 
  (b) the supplier and the recipient at a later time either directly or indirectly 
  (i) vary or alter the agreement for the supply, or 
  (ii) terminate the agreement and enter into one or more new agreements with each other or with other persons and under one or more of those agreements the supplier supplies, and the recipient receives, one or more supplies that includes all or substantially all the property or service referred to in paragraph (a), 
  (c) the supplier, the recipient and, where applicable, the other persons are not dealing with each other at arm’s length at the time the agreement is entered into or at the later time, 
  (d) tax under subsection 165(1) or section 218 in respect of the supply referred to in paragraph (a) would have been calculated at the rate of 7% on all or part of the value of the consideration for the supply attributable to the property or service in the absence of the variation, alteration or termination of the agreement, 
  (e) tax under subsection 165(1) or section 218 in respect of the supply made under the varied or altered agreement or made under any of the new agreements would, in the absence of this section, be calculated at the rate of 6% on any part of the value of the consideration for the supply, attributable to any part of the property or service, on which tax, in respect of the supply referred to in paragraph (a), was initially calculated at the rate of 7%, and 
  (f) the variation or alteration of the agreement or the entering into of the new agreements may not reasonably be considered for both the supplier and the recipient to have been undertaken or arranged primarily for bona fide purposes other than to benefit in any manner from the rate change,  the following rule applies 
  (g) tax under subsection 165(1) or section 218 in respect of the supply made under the varied or altered agreement or made under any of the new agreements shall be calculated at the rate of 7% on any part of the value of the consideration, referred to in paragraph (e), attributable to any part of the property or service. 
  
  ### Variation of agreement — 2008 rate reduction
  
  274.11 If 
  (a) at any time before January 1, 2008, a supplier and a recipient enter into an agreement for a taxable supply of property or a service, 
  (b) the supplier and the recipient at a later time either directly or indirectly 
  (i) vary or alter the agreement for the supply, or 
  (ii) terminate the agreement and enter into one or more new agreements with each other or with other persons and under one or more of those agreements the supplier supplies, and the recipient receives, one or more supplies that includes all or substantially all the property or service referred to in paragraph (a), 
  (c) the supplier, the recipient and, where applicable, the other persons are not dealing with each other at arm’s length at the time the agreement is entered into or at the later time, 
  (d) tax under subsection 165(1) or section 218 in respect of the supply referred to in paragraph (a) would have been calculated at the rate of 6% or 7%, as the case may be, on all or part of the value of the consideration for the supply attributable to the property or service in the absence of the variation, alteration or termination of the agreement, 
  (e) tax under subsection 165(1) or section 218 in respect of the supply made under the varied or altered agreement or made under any of the new agreements would, in the absence of this section, be calculated at the rate of 5% on any part of the value of the consideration for the supply, attributable to any part of the property or service, on which tax, in respect of the supply referred to in paragraph (a), was initially calculated at the rate of 6% or 7%, as the case may be, and 
  (f) the variation or alteration of the agreement or the entering into of the new agreements may not reasonably be considered for both the supplier and the recipient to have been undertaken or arranged primarily for bona fide purposes other than to benefit in any manner from the rate change,  the following rule applies 
  (g) tax under subsection 165(1) or section 218 in respect of the supply made under the varied or altered agreement or made under any of the new agreements shall be calculated at the rate at which tax would have been calculated under paragraph (d) on any part of the value of the consideration, referred to in paragraph (e), attributable to any part of the property or service. 
  
  ### Definitions
  
  274.2 (1) The following definitions apply in this section.  
  *person* does not include a consumer. (personne)   
  *rate change* means any change in any rate of tax imposed under this Part. (modification de taux)   
  *tax benefit* means a reduction, an avoidance or a deferral of tax or other amount payable under this Part or an increase in a refund or rebate of tax or other amount under this Part. (avantage fiscal)   
  *transaction* has the meaning assigned by subsection 274(1). (opération)  
  
  ### Rate change — transactions
  
  (2) If 
  (a) a transaction, or a series of transactions, involving property is made between two or more persons, all of whom are not dealing with each other at arm’s length at the time any of those transactions are made, 
  (b) the transaction, any of the transactions in the series of transactions or the series of transactions would in the absence of this section result directly or indirectly in a tax benefit to one or more of the persons involved in the transaction or series of transactions, and 
  (c) it may not reasonably be considered that the transaction, or the series of transactions, has been undertaken or arranged primarily for bona fide purposes other than to obtain a tax benefit, arising from a rate change, for one or more of the persons involved in the transaction or series of transactions,  the amount of tax, net tax, input tax credit, rebate or other amount payable by, or refundable to, any of those persons under this Part, or any other amount that is relevant for the purposes of computing that amount shall be determined as is reasonable in the circumstances in order to deny the tax benefit to any of those persons. 
  
  ### Denying tax benefit on transactions
  
  (3) Despite any other provision of this Part, a tax benefit shall only be denied under subsection (2) through an assessment, reassessment or additional assessment. 
  
  ### Request for adjustments
  
  (4) If, with respect to a transaction, a notice of assessment, reassessment or additional assessment involving the application of subsection (2) with respect to the transaction has been sent to a person, any person (other than a person to whom such a notice has been sent) is entitled, within 180 days after the day on which the notice was sent, to request in writing that the Minister make an assessment, a reassessment or an additional assessment, applying subsection (2) with respect to that transaction. 
  
  ### Duties of Minister
  
  (5) On receipt of a request by a person under subsection (4), the Minister shall, with all due dispatch, consider the request and, despite subsections 298(1) and (2), assess, reassess or make an additional assessment with respect to the person, except that an assessment, a reassessment or an additional assessment may be made under this subsection only to the extent that it may reasonably be regarded as relating to the transaction referred to in subsection (4). 
  
  # DIVISION VIII 
  
  ## Administration and Enforcement 
  
  # SUBDIVISION A 
  
  ## Administration 
  
  ### Minister’s duty
  
  275 (1) The Minister shall administer and enforce this Part and the Commissioner may exercise all the powers and perform the duties of the Minister under this Part. 
  
  ### Officers and employees
  
  (2) Such officers, agents and employees as are necessary to administer and enforce this Part shall be appointed or employed in the manner authorized by law. 
  
  ### Delegation of powers
  
  (3) The Minister may authorize a designated officer or agent or a class of officers or agents to exercise powers or perform duties of the Minister under this Part. 
  
  ### Administration of oaths
  
  (4) Any officer or employee employed in connection with the administration or enforcement of this Part, if designated by the Minister for the purpose, may administer oaths and take and receive affidavits, declarations and affirmations for the purposes of or incidental to the administration or enforcement of this Part or regulations made under this Part, and every officer or employee so designated has for those purposes all the powers of a commissioner for administering oaths or taking affidavits. 
  
  ### Inquiry
  
  276 (1) The Minister may, for any purpose related to the administration or enforcement of this Part, authorize any person, whether or not the person is an officer of the Canada Revenue Agency, to make such inquiry as the Minister may deem necessary with reference to anything relating to the administration or enforcement of this Part. 
  
  ### Appointment of hearing officer
  
  (2) Where the Minister, under subsection (1), authorizes a person to make an inquiry, the Minister shall forthwith apply to the Tax Court for an order appointing a hearing officer before whom the inquiry will be held. 
  
  ### Powers of hearing officer
  
  (3) For the purposes of an inquiry authorized under subsection (1), a hearing officer appointed under subsection (2) in relation thereto has all the powers conferred on a commissioner by sections 4 and 5 of the Inquiries Act and that may be conferred on a commissioner under section 11 of that Act.  
  
  ### When powers to be exercised
  
  (4) A hearing officer appointed under subsection (2) in relation to an inquiry shall exercise the powers conferred on a commissioner by section 4 of the Inquiries Act in relation to such persons as the person authorized to make the inquiry considers appropriate for the conduct thereof, but the hearing officer shall not exercise the power to punish any person unless, on application by the hearing officer, a judge of a superior or county court certifies that the power may be exercised in the matter disclosed in the application and the applicant has given to the person in respect of whom the power is proposed to be exercised twenty-four hours notice of the hearing of the application, or such shorter notice as the judge considers reasonable.  
  
  ### Rights of witnesses
  
  (5) Any person who gives evidence in an inquiry authorized under subsection (1) is entitled to be represented by counsel and, on request made by the person to the Minister, to receive a transcript of that evidence. 
  
  ### Rights of person investigated
  
  (6) Any person whose affairs are investigated in the course of an inquiry authorized under subsection (1) is entitled to be present and to be represented by counsel throughout the inquiry unless the hearing officer appointed under subsection (2), on application by the Minister or a person giving evidence, orders otherwise in relation to the whole or any part of the inquiry, on the ground that the presence of the person and the person’s counsel, or either of them, would be prejudicial to the effective conduct of the inquiry. 
  
  ### Regulations
  
  277 (1) The Governor in Council may make regulations 
  (a) prescribing anything that, by this Part, is to be prescribed or is to be determined or regulated by regulation; 
  (b) requiring any class of persons to make returns respecting any class of information required in connection with the administration of this Part; 
  (c) requiring any person to provide any information, including the person’s name, address and registration number, to any class of persons required to make a return containing that information; 
  (d) requiring any person to provide the Minister with the person’s Social Insurance Number; 
  (e) requiring a person who is, by a regulation made under paragraph (b), required to make a return to supply a copy of the return or of a prescribed part thereof to the person to whom the return or part relates; 
  (f) providing for the retention by way of deduction or set-off of the amount of a person’s indebtedness under this Part out of any amount or amounts that may be or become payable by Her Majesty in right of Canada to the person in respect of salary or wages; and 
  (g) generally to carry out the purposes and provisions of this Part. 
  
  ### Effect
  
  (2) A regulation made under this Part shall have effect from the date it is published in the Canada Gazette or at such time thereafter as may be specified in the regulation, unless the regulation provides otherwise and  
  (a) has a relieving effect only; 
  (b) corrects an ambiguous or deficient enactment that was not in accordance with the objects of this Part or the regulations made under this Part; 
  (c) is consequential on an amendment to this Part that is applicable before the date the regulation is published in the Canada Gazette ; or  
  (d) gives effect to a budgetary or other public announcement, in which case the regulation shall not, except where paragraph (a), (b) or (c) applies, have effect before the date the announcement was made. 
  
  ### Definition of 
  *new harmonized value-added tax system* 
  
  277.1 (1) In this section, 
  *new harmonized value-added tax system* means the system under this Part and Schedules V to X providing for the payment, collection and remittance of tax imposed under any of subsection 165(2) and sections 212.1, 218.1 and 220.05 to 220.08 and of amounts paid as or on account of that tax and the provisions of this Part relating to tax under those provisions or to input tax credits, rebates or refunds in respect of any such tax, or any such amounts, paid or deemed to be paid.  
  
  ### New harmonized value-added tax system regulations — transition
  
  (2) The Governor in Council may make regulations, in relation to the transition by a province to the new harmonized value-added tax system, 
  (a) prescribing rules in respect of whether, how and when that system applies and rules in respect of other aspects relating to the application of that system in relation to the province, including 
  (i) rules that apply for the purpose of determining the amount of instalment payments under section 237, 
  (ii) circumstances in which an election under this Part may be made or revoked at an earlier time than would otherwise be permitted under this Part, and 
  (iii) rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when tax or consideration became due or was paid or collected, when property was delivered or made available, when a service was performed and when tax is required to be reported and accounted for; 
  (b) respecting information that must be included by a specified person in a written agreement or other document in respect of a specified supply of real property and prescribing tax consequences in respect of such a supply, and penalties, for failing to do so or for providing incorrect information; 
  (c) deeming, in specified circumstances, a specified person to have collected a specified amount of tax, or to have paid a specified amount of tax, for specified purposes, as a consequence of making a supply by way of sale in respect of a residential complex; 
  (d) prescribing rules under which a person of a specified class that is the recipient of a specified supply in respect of real property is required to report and account for tax that is payable under subsection 165(2) in respect of that supply; 
  (e) prescribing compliance measures, including anti-avoidance rules; and 
  (f) generally to effect the transition to, and implementation of, that system in relation to the province. 
  
  ### New harmonized value-added tax system regulations — provincial tax policy flexibility
  
  (3) The Governor in Council may make regulations 
  (a) prescribing rules in respect of whether, how and when a change in the tax rate for a participating province applies and rules in respect of a change to another parameter affecting the application of the new harmonized value-added tax system in relation to a participating province (in this subsection any such change in the tax rate or to another parameter is referred to as the “provincial tax policy flexibility”), including 
  (i) rules that apply for the purpose of determining the amount of instalment payments under section 237, 
  (ii) circumstances in which an election under this Part may be made or revoked at an earlier time than would otherwise be permitted under this Part, and 
  (iii) rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when tax or consideration became due or was paid or collected, when property was delivered or made available, when a service was performed and when tax is required to be reported and accounted for; 
  (b) if an amount is to be determined in prescribed manner in relation to the new harmonized value-added tax system, specifying the circumstances or conditions under which the manner applies; 
  (c) providing for rebates, refunds, adjustments or credits relating to the provincial tax policy flexibility; 
  (d) specifying circumstances and any terms or conditions that must be met for the payment of rebates in respect of the provincial tax policy flexibility; 
  (e) prescribing amounts and rates to be used to determine any rebate, refund, adjustment or credit that relates to, or is affected by, the new harmonized value-added tax system, excluding amounts that would otherwise be included in determining any such rebate, refund, adjustment or credit, and specifying circumstances under which any such rebate, refund, adjustment or credit shall not be paid or made; 
  (f) amending the definition 
  *basic tax content* in subsection 123(1) to take into account the provincial tax policy flexibility or the addition of a province to the new harmonized value-added tax system; and  
  (g) prescribing compliance measures, including anti-avoidance rules, in respect of the provincial tax policy flexibility. 
  
  ### New harmonized value-added tax system regulations — general
  
  (4) For the purpose of facilitating the implementation, application, administration and enforcement of the new harmonized value-added tax system or the transition by a province to the new harmonized value-added tax system, the Governor in Council may make regulations 
  (a) adapting any provision of this Part, of Schedules V to X or of the regulations made under this Part to the new harmonized value-added tax system or modifying any provision of this Part, Schedules V to X or those regulations to adapt it to the new harmonized value-added tax system; 
  (b) defining, for the purposes of this Part, Schedules V to X or the regulations made under this Part, or any provision of this Part, Schedules V to X or those regulations, in its application to the new harmonized value-added tax system, words or expressions used in this Part, Schedules V to X or those regulations including words or expressions defined in a provision of this Part, Schedules V to X or those regulations; and 
  (c) providing that a provision of this Part, of Schedules V to X or of the regulations made under this Part, or a part of such a provision, does not apply to the new harmonized value-added tax system. 
  
  ### Conflict
  
  (5) If a regulation made under this Part in respect of the new harmonized value-added tax system states that it applies despite any provision of this Part, in the event of a conflict between the regulation and this Part, the regulation prevails to the extent of the conflict. 
  
  # SUBDIVISION B 
  
  ## Returns, Penalties and Interest 
  
  ### Definition of electronic payment 
  
  278 (0.1) In this section, 
  *electronic payment* means any payment or remittance to the Receiver General that is made through electronic services offered by a person described in any of paragraphs (3)(a) to (d) or by any electronic means specified by the Minister.  
  
  ### Place of filing
  
  (1) Every person who is required under this Part to file a return shall file the return with the Minister in the prescribed manner. 
  
  ### Place of payment
  
  (2) Every person who is required under this Part to pay or remit an amount shall, except where the amount is required under section 221 to be collected by another person, pay or remit the amount to the Receiver General. 
  
  ### Electronic payment
  
  (3) Every person that is required under this Part to pay or remit an amount to the Receiver General shall, if the amount is $10,000 or more, make the payment or remittance by way of electronic payment, unless the person cannot reasonably pay or remit the amount in that manner, to the account of the Receiver General at or through 
  (a) a bank, other than an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2) of the Bank Act ;  
  (b) a credit union; 
  (c) a corporation authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; or 
  (d) a corporation authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real estate or investing in mortgages or hypothecary claims on real estate. 
  
  ### Meaning of 
  *electronic filing* 
  
  278.1 (1) For the purposes of this section, 
  *electronic filing* means using electronic media in a manner specified in writing by the Minister.  
  
  ### Filing of return by electronic filing
  
  (2) A person who is required to file with the Minister a return under this Part, and who meets the criteria specified in writing by the Minister for the purposes of this section, may file the return by way of electronic filing. 
  
  ### Mandatory filing of return by electronic transmission
  
  (2.1) If a person is, in respect of a reporting period of the person, a prescribed person or a person of a prescribed class, the person shall file its return for the reporting period by way of electronic filing in the manner specified by the Minister for the person. 
  
  ### Deemed filing
  
  (3) For the purposes of this Part, where a person files a return by way of electronic filing, it is deemed to be a return in prescribed form filed with the Minister on the day the Minister acknowledges acceptance of it. 
  (4)  [Repealed, 2001, c. 15, s. 20]  
  (5) [Renumbered as (3), 2001, c. 15, s. 20] 
  
  ### Execution of documents
  
  279 A return (other than a return filed by way of electronic filing under section 278.1), certificate or other document made by a person (other than an individual) under this Part or under a regulation made under this Part shall be signed on behalf of the person by an individual duly authorized to do so by the person or the governing body of the person and the following persons are deemed to be so duly authorized: 
  (a) if the person is a corporation or an association or organization that has duly elected or appointed officers, the president, vice-president, secretary, treasurer or other equivalent officers of the person; and 
  (b) if the person is the estate of a deceased individual, the personal representative of the estate. 
  
  ### Interest
  
  280 (1) Subject to this section and section 281, if a person fails to remit or pay an amount to the Receiver General when required under this Part, the person shall pay interest at the prescribed rate on the amount, computed for the period beginning on the first day following the day on or before which the amount was required to be remitted or paid and ending on the day the amount is remitted or paid. 
  
  ### Interest on net tax of selected listed financial institutions
  
  (1.1) Despite subsection (1), if a selected listed financial institution that is required to pay an amount under subsection 228(2.1) on account of the financial institution’s net tax for a reporting period fails to pay all of that amount within the time specified in that subsection, the financial institution shall pay, on the amount not paid, interest at the prescribed rate, computed for the period beginning on the first day following that time and ending on the earlier of 
  (a) the day the total of the amount and interest is paid, and 
  (b) the day on or before which the financial institution is required under subsection 238(2.1) to file a final return for that reporting period. 
  
  ### Interest on instalments
  
  (2) Despite subsection (1), if a person fails to pay all of an instalment payable by the person under subsection 237(1) within the time specified in that subsection, the person shall pay, on the amount of the instalment not paid, interest at the prescribed rate, computed for the period beginning on the first day following that time and ending on the earlier of 
  (a) the day the total of the amount and interest is paid, and 
  (b) the day on or before which the tax on account of which the instalment was payable is required to be remitted. 
  
  ### Interest on instalments
  
  (3) Despite subsection (2), the total interest payable by a person under that subsection for the period beginning on the first day of a reporting period for which an instalment on account of tax is payable and ending on the day on or before which the tax on account of which the instalment was payable is required to be remitted shall not exceed the amount, if any, by which 
  (a) the amount of interest that would be payable under subsection (2) for the period by the person if no amount were paid by the person on account of instalments payable in the period exceeds 
  (b) the total of all amounts each of which is an amount of interest at the prescribed rate that applies in the case of interest to be paid to the Receiver General, calculated on an instalment of tax paid for the period beginning on the day of that payment and ending on the day on or before which the tax on account of which the instalment was payable is required to be remitted. 
  
  ### Unpaid interest on instalments
  
  (4) If a person is required to pay interest under subsection (2) in respect of an instalment required under subsection 237(1) to be paid within the time specified in that subsection and the interest has not been paid on or before the day on or before which the tax on account of which the instalment was payable is required to be remitted, the interest is deemed, for the purposes of this Part, to be an amount required to be remitted by the person on or before that day that has not been remitted on or before that day. 
  
  ### Unpaid interest on net tax of selected listed financial institutions
  
  (4.01) If a selected listed financial institution is required to pay interest under subsection (1.1) in respect of an amount required under subsection 228(2.1) to be paid within the time specified in that paragraph and the interest has not been paid on or before the day on or before which the financial institution is required under subsection 238(2.1) to file a final return for that reporting period, the interest is deemed, for the purposes of this Part, to be an amount required to be remitted by the financial institution on or before that day that has not been remitted on or before that day. 
  
  ### Payment of interest
  
  (4.1) If interest is compounded on a partic­ular day on an amount that a person has failed to pay or remit when required under this Part, the interest so compounded is deemed, for the purposes of this section, to be required to be paid by the person to the Receiver General at the end of the particular day and, if the person has not paid the interest so computed by the end of the next following day, the interest shall be added to the amount at the end of the particular day. 
  (5) and (6)  [Repealed, 2006, c. 4, s. 146]  
  
  ### Payment before specified date
  
  (7) If the Minister has served a demand that a person pay or remit on or before a specified date all tax, net tax, instalments, amounts under section 264, penalties and interest payable by the person under this Part on the date of the demand, and the person pays the total on or before the specified date, the Minister may waive interest for the period beginning on the first day following the date of the demand and ending on the day of payment. 
  
  ### Failure to file a return
  
  280.1 Every person who fails to file a return for a reporting period as and when required under this Part is liable to pay a penalty equal to the sum of 
  (a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be remitted or paid for the reporting period and was not remitted or paid, as the case may be, on or before the day on or before which the return was required to be filed, and 
  (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on or before which the return was required to be filed to the day on which the return is filed. 
  
  ### Failure to file by electronic transmission
  
  280.11 In addition to any other penalty under this Part, every person that fails to file a return under Division V for a reporting period as required by subsection 278.1(2.1) is liable to a penalty equal to an amount determined in prescribed manner. 
  
  ### Penalty — electronic payment
  
  280.12 Every person that fails to comply with subsection 278(3) is liable to a penalty equal to $100 for each such failure. 
  
  ### Minimum interest and penalty
  
  280.2 If at any time a person pays or remits all tax, net tax, instalments and amounts under section 264 payable by the person under this Part for a reporting period of the person and, immediately before that time, the total, for the reporting period, of all interest payable by the person under section 280 and penalties payable under section 280.1 is not more than $25, the Minister may cancel the total of the penalties and interest. 
  
  ### Dishonoured instruments
  
  280.3 For the purposes of this Part and section 155.1 of the Financial Administration Act, any charge that becomes payable at any time by a person under that Act in respect of an instrument tendered in payment or settlement of an amount that is payable or remittable under this Part is deemed to be an amount that becomes payable by the person at that time under this Part. In addition, Part II of the Interest and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of that Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Part is paid.  
  
  ### Extension for returns
  
  281 (1) The Minister may at any time extend in writing the time for filing a return, or providing information, under this Part. 
  
  ### Effect of extension
  
  (2) If the Minister extends the time within which a return of a person is to be filed or information is to be provided by a person, 
  (a) the return shall be filed, or information shall be provided, within the time as so extended; 
  (b) any tax or net tax payable that the person is required to report in the return shall be paid or remitted within the time so extended; 
  (c) any interest payable under section 280 on any tax or net tax payable that the person is required to report in the return shall be calculated as though the tax or net tax were required to be paid on or before the day on which the extended time expires; and 
  (d) any penalty payable under section 280.1 in respect of the return shall be calculated as though the return were required to be filed on or before the day on which the extended time expires. 
  
  ### Waiving or cancelling interest
  
  281.1 (1) The Minister may, on or before the day that is 10 calendar years after the end of a reporting period of a person, or on application by the person on or before that day, waive or cancel interest payable by the person under section 280 on an amount that is required to be remitted or paid by the person under this Part in respect of the reporting period. 
  
  ### Waiving or cancelling penalties
  
  (2) The Minister may, on or before the day that is 10 calendar years after the end of a reporting period of a person, or on application by the person on or before that day, waive or cancel all or any portion of any 
  (a) penalty that became payable by the person under section 280 before April 1, 2007, in respect of the reporting period; and 
  (b) penalty payable by the person under section 280.1, 280.11 or 284.01 in respect of a return for the reporting period. 
  
  ### Demand for return
  
  282 The Minister may, on demand sent by the Minister, require any person to file, within any reasonable time stipulated in the demand, a return under this Part for any period or transaction designated in the demand. 
  
  ### Failure to answer demand
  
  283 Every person who fails to file a return when required pursuant to a demand issued under section 282 is liable to a penalty equal to $250. 
  
  ### Failure to provide information
  
  284 Every person who fails to provide any information or document when and as required under this Part or under a regulation made under this Part is, except where the Minister waives the penalty, liable to a penalty of $100 for every failure unless, in the case of information required in respect of another person, a reasonable effort was made by the person to obtain the information. 
  
  ### Failure to provide information
  
  284.01 Every person that fails to report an amount prescribed by regulation, or to provide information prescribed by regulation, as and when required in a return prescribed by regulation, or that misstates such an amount or such information in such a return, is liable to pay a penalty, in addition to any other penalty under this Part, equal to an amount determined in prescribed manner for each such failure or misstatement by the person. 
  
  ### Failure to report actual amounts
  
  284.1 (1) In addition to any other penalty under this Part, every reporting institution that fails to report an actual amount (other than an actual amount for which the reporting institution is allowed to provide a reasonable estimate pursuant to subsection 273.2(5)) when and as required in an information return required to be filed under subsection 273.2(3), or that misstates such an actual amount in the information return, and that does not exercise due diligence in attempting to report the actual amount is liable to a penalty, for each such failure or misstatement, equal to the lesser of $1,000 and 1% of the absolute value of the difference between the actual amount and 
  (a) if the reporting institution failed to report the actual amount when and as required, zero; or 
  (b) if the reporting institution misstated the actual amount, the amount reported by the reporting institution in the information return. 
  
  ### Failure to provide reasonable estimates
  
  (2) In addition to any other penalty under this Part, every reporting institution that fails to provide a reasonable estimate for an amount that is not an actual amount, or for an actual amount for which the reporting institution is allowed to provide a reasonable estimate pursuant to subsection 273.2(5), when and as required in an information return required to be filed under subsection 273.2(3) for a fiscal year and that does not exercise due diligence in attempting to report such a reasonable estimate is liable to a penalty, for each such failure, equal to the lesser of $1,000 and 1% of the total of 
  (a) all amounts, each of which is an amount that became collectible by the reporting institution, or that was collected by the reporting institution, as or on account of tax under Division II in a reporting period in the fiscal year; and 
  (b) all amounts, each of which is an amount that the reporting institution claimed as an input tax credit in a return under Division V filed by the reporting institution for a reporting period in the fiscal year. 
  
  ### Waiving or cancelling penalties
  
  (3) The Minister may waive or cancel all or any portion of a penalty payable under this section. 
  
  ### False statements or omissions
  
  285 Every person who knowingly, or under circumstances amounting to gross negligence, makes or participates in, assents to or acquiesces in the making of a false statement or omission in a return, application, form, certificate, statement, invoice or answer (each of which is in this section referred to as a “return”) made in respect of a reporting period or transaction is liable to a penalty of the greater of $250 and 25% of the total of 
  (a) if the false statement or omission is relevant to the determination of the net tax of the person for a reporting period, the amount determined by the formula is the net tax of the person for the period, and is the amount that would be the net tax of the person for the period if the net tax were determined on the basis of the information provided in the return, 
  (b) if the false statement or omission is relevant to the determination of an amount of tax payable by the person, the amount, if any, by which 
  (i) that tax payable exceeds 
  (ii) the amount that would be the tax payable by the person if the tax were determined on the basis of the information provided in the return, and 
  (c) if the false statement or omission is relevant to the determination of a rebate under this Part, the amount, if any, by which 
  (i) the amount that would be the rebate payable to the person if the rebate were determined on the basis of the information provided in the return exceeds 
  (ii) the amount of the rebate payable to the person. 
  
  ### Definitions
  
  285.01 (1) The following definitions apply in this section.  
  *electronic cash register* means a device that keeps a register or supporting documents through the means of an electronic device or computer system designed to record transaction data or any other electronic point-of-sale system. (caisse enregistreuse électronique)   
  *electronic suppression of sales device* means  
  (a) a software program that falsifies the records of electronic cash registers, including transaction data and transaction reports; or 
  (b) a hidden programming option, whether preinstalled or installed at a later time, embedded in the operating system of an electronic cash register or hardwired into the electronic cash register that 
  (i) may be used to create a virtual second till, or 
  (ii) may eliminate or manipulate transaction records, which may or may not be preserved in digital formats, in order to represent the actual or manipulated record of transactions in the electronic cash register. ( appareil de suppression électronique des ventes)  
  
  ### Penalty  —  use
  
  (2) Every person that uses, or that knowingly, or under circumstances attributable to neglect, carelessness or wilful default, participates in, assents to or acquiesces in the use of, an electronic suppression of sales device or a similar device or software in relation to records that are required to be kept by any person under section 286 is liable to a penalty of 
  (a) unless paragraph (b) applies, $5,000; or 
  (b) $50,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this section or section 163.3 of the Income Tax Act.  
  
  ### Penalty  — possession
  
  (3) Every person that acquires or possesses an electronic suppression of sales device or a right in respect of an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286 is liable to a penalty of 
  (a) unless paragraph (b) applies, $5,000; or 
  (b) $50,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this section or section 163.3 of the Income Tax Act.  
  
  ### Penalty  — manufacturing or making available
  
  (4) Every person that designs, develops, manufactures, possesses for sale, offers for sale, sells, transfers or otherwise makes available to another person, or that supplies installation, upgrade or maintenance services for, an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286 is liable to a penalty of 
  (a) unless paragraph (b) or (c) applies, $10,000; 
  (b) unless paragraph (c) applies, $50,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under subsection (2) or (3) or subsection 163.3(2) or (3) of the Income Tax Act ; or  
  (c) $100,000 if the action of the person occurs after the Minister has assessed a penalty payable by the person under this subsection or subsection 163.3(4) of the Income Tax Act.  
  
  ### Limitation
  
  (5) Despite section 296, if at any time the Minister assesses a penalty payable by a person under this section, the Minister is not to assess, at or after that time, another penalty payable by the person under this section that is in respect of an action of the person that occurred before that time. 
  
  ### Certain defences not available
  
  (6) Except as otherwise provided in subsection (7), a person does not have a defence in relation to a penalty assessed under this section by reason that the person exercised due diligence to prevent the action from occurring. 
  
  ### Diligence
  
  (7) A person is not liable for a penalty under subsection (3) or (4) in respect of an action of the person if the person exercised the degree of care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances to prevent the action from occurring. 
  
  ### Assessment vacated
  
  (8) For the purposes of this section, if an assessment of a penalty under this section is vacated, the penalty is deemed to have never been assessed. 
  
  ### Penalty
  
  285.02 In addition to any other penalty under this Part, the recipient of a supply of property or a service that evades or attempts to evade the payment or collection of tax payable by the recipient under Division II in respect of the supply by providing false information to a particular person that is registered or required to be registered under Subdivision E of Division II or, if the recipient is a consumer of the property or service, by providing to the particular person evidence that the recipient is registered under Subdivision D of Division V is liable to pay a penalty equal to the greater of $250 and 50% of the amount of tax that has been evaded or attempted to be evaded. 
  
  ### Definitions
  
  285.03 (1) The following definitions apply in this section.  
  *gross entitlements* of a person at any time, in respect of a planning activity of the person, means all amounts to which the person, or another person not dealing at arm’s length with the person, is entitled, either before or after that time and either absolutely or contingently, to receive or obtain in respect of the activity. (droits à paiement)   
  *planning activity* has the same meaning as in subsection 285.1(1). (activité de planification)   
  *section 325 avoidance planning*, by a person, means a planning activity in respect of a transaction or series of transactions that meets the following conditions:  
  (a) the transaction or series of transactions is, or is part of, a section 325 avoidance transaction; and 
  (b) one of the purposes of the transaction or series of transactions is to 
  (i) reduce a transferee’s joint and several, or solidary, liability under section 325 for an amount payable or remittable under this Part by a transferor or for an amount that would be payable or remittable by the transferor but for a transaction or series of transactions in which an amount, that is or may be relevant in determining any obligations or entitlements under this Part of a person that dealt at arm’s length with the transferor or transferee immediately before the transaction or series of transactions, is used directly or indirectly to provide a tax benefit for the transferor or transferee, or 
  (ii) reduce the person or another person’s ability to pay any amount payable or remittable, or that may become payable or remittable, under this Part. ( planification d’évitement de l’article 325)   
  *section 325 avoidance transaction* means a transaction or series of transactions in respect of which  
  (a) the conditions in paragraph 325(5)(a) or (b) are met; or 
  (b) if subsection 325(5) applied to the transaction or series of transactions, the amount determined under subparagraph 325(5)(c)(ii) would exceed the amount determined under subparagraph 325(5)(c)(i). ( opération d’évitement de l’article 325)   
  *tax benefit* has the same meaning as in subsection 285.1(1). (avantage fiscal)   
  *transaction* includes an arrangement or event. (opération)  
  
  ### Penalty
  
  (2) Every person that engages in, participates in, assents to or acquiesces in a planning activity that they know is section 325 avoidance planning, or would reasonably be expected to know is section 325 avoidance planning, but for circumstances amounting to gross negligence, is liable to a penalty equal to the lesser of 
  (a) 50% of the amount payable or remittable under this Part in respect of which the joint and several, or solidary, liability was sought to be avoided through the planning, and 
  (b) the total of $100,000 and the person’s gross entitlements in respect of the planning at the time at which the notice of assessment of the penalty is sent to the person in respect of the planning. 
  
  ### Clerical or secretarial services
  
  (3) Subsection (2) does not apply to a person solely because the person provided clerical services or secretarial services with respect to the planning. 
  
  ### Definitions
  
  285.1 (1) The definitions in this subsection apply in this section.  
  *culpable conduct* means conduct, whether an act or a failure to act, that  
  (a) is tantamount to intentional conduct; 
  (b) shows an indifference as to whether this Part is complied with; or 
  (c) shows a wilful, reckless or wanton disregard of the law. ( conduite coupable)   
  *entity* includes an association, a corporation, a fund, a joint venture, an organization, a partnership, a syndicate and a trust. (entité)   
  *excluded activity*, in respect of a false statement, means the activity of  
  (a) promoting or selling (whether as principal or agent or directly or indirectly) an arrangement, an entity, a plan, a property or a scheme (in this definition referred to as the “arrangement”) where it can reasonably be considered that one of the main purposes for a person’s participation in the arrangement is to obtain a tax benefit; or 
  (b) accepting (whether as principal or agent or directly or indirectly) consideration in respect of the promotion or sale of an arrangement. ( activité exclue)   
  *false statement* includes a statement that is misleading because of an omission from the statement. (faux énoncé)   
  *gross compensation* of a particular person at any time, in respect of a false statement that could be used by or on behalf of another person, means all amounts to which the particular person, or any person not dealing at arm’s length with the particular person, is entitled, either before or after that time and either absolutely or contingently, to receive or obtain in respect of that statement. (rétribution brute)   
  *gross entitlements* of a person at any time, in respect of a planning activity or a valuation activity of the person, means all amounts to which the person, or another person not dealing at arm’s length with the person, is entitled, either before or after that time and either absolutely or contingently, to receive or obtain in respect of the activity. (droits à paiement)   
  *participate* includes  
  (a) to cause a subordinate to act or to omit information; and 
  (b) to know of, and to not make a reasonable attempt to prevent, the participation by a subordinate in an act or an omission of information. ( participer)   
  *planning activity* includes  
  (a) organizing or creating, or assisting in the organization or creation of, an arrangement, an entity, a plan or a scheme; and 
  (b) participating, directly or indirectly, in the selling of an interest in, or in the promotion of, an arrangement, an entity, a plan, a property or a scheme. ( activité de planification)   
  *property* has the meaning assigned by subsection 248(1) of the Income Tax Act. (bien)   
  *subordinate*, in respect of a particular person, includes any other person over whose activities the particular person has direction, supervision or control whether or not the other person is an employee of the particular person or of another person, except that, if the particular person is a member of a partnership, the other person is not a subordinate of the particular person solely because the particular person is a member of the partnership. (subalterne)   
  *tax benefit* means a reduction, avoidance or deferral of tax, net tax or other amount payable under this Part or an increase in a refund or rebate under this Part. (avantage fiscal)   
  *valuation activity* of a person means anything done by the person in determining the value of a property or a service. (activité d’évaluation)  
  
  ### Penalty for misrepresentations in tax planning arrangements
  
  (2) Every person who makes or furnishes, participates in the making of or causes another person to make or furnish a statement that the person knows, or would reasonably be expected to know but for circumstances amounting to culpable conduct, is a false statement that could be used by another person (in subsections (6) and (15) referred to as the “other person”) for a purpose of this Part is liable to a penalty in respect of the false statement. 
  
  ### Amount of penalty
  
  (3) The penalty to which a person is liable under subsection (2) in respect of a false statement is 
  (a) if the statement is made in the course of a planning activity or a valuation activity, the greater of $1,000 and the total of the person’s gross entitlements, at the time at which the notice of assessment of the penalty is sent to the person, in respect of the planning activity and the valuation activity; and 
  (b) in any other case, $1,000. 
  
  ### Penalty for participating in a misrepresentation
  
  (4) Every person who makes, or participates in, assents to or acquiesces in the making of, a statement to, or by or on behalf of, another person (in this subsection, subsections (5) and (6), paragraph (12)(c) and subsection (15) referred to as the “other person”) that the person knows, or would reasonably be expected to know but for circumstances amounting to culpable conduct, is a false statement that could be used by or on behalf of the other person for a purpose of this Part is liable to a penalty in respect of the false statement. 
  
  ### Amount of penalty
  
  (5) The penalty to which a person is liable under subsection (4) in respect of a false statement is the greater of 
  (a) $1,000, and 
  (b) the lesser of 
  (i) the total of $100,000 and the person’s gross compensation, at the time at which the notice of assessment of the penalty is sent to the person, in respect of the false statement that could be used by or on behalf of the other person, and 
  (ii) 50% of the total of all amounts each of which is 
  (A) if the false statement is relevant to the determination of net tax of the other person for a reporting period, the amount determined by the formula is the net tax of the other person for the period, and is the amount that would be the net tax of the other person for the period if the statement were not a false statement, 
  (B) if the false statement is relevant to the determination of an amount of tax payable by the other person, the amount, if any, by which 
  (I) that tax payable exceeds 
  (II) the amount that would be the tax payable by the other person if the statement were not a false statement, and 
  (C) if the false statement is relevant to the determination of a rebate under this Part, the amount, if any, by which 
  (I) the amount that would be the rebate payable to the other person if the statement were not a false statement exceeds 
  (II) the amount of the rebate payable to the other person. 
  
  ### Reliance in good faith
  
  (6) For the purposes of subsections (2) and (4), a person (in this subsection and in subsection (7) referred to as the “advisor”) who acts on behalf of the other person is not considered to have acted in circumstances amounting to culpable conduct in respect of the false statement referred to in subsection (2) or (4) solely because the advisor relied, in good faith, on information provided to the advisor by or on behalf of the other person or, because of such reliance, failed to verify, investigate or correct the information. 
  
  ### Non-application of subsection (6)
  
  (7) Subsection (6) does not apply in respect of a statement that an advisor makes, or participates in, assents to or acquiesces in the making of, in the course of an excluded activity. 
  
  ### False statements in respect of a particular arrangement
  
  (8) For the purpose of applying this section (other than subsections (4) and (5)), 
  (a) where a person makes or furnishes, participates in the making of or causes another person to make or furnish two or more false statements, the false statements are deemed to be one false statement if the statements are made or furnished in the course of 
  (i) one or more planning activities that are in respect of a particular arrangement, entity, plan, property or scheme, or 
  (ii) a valuation activity that is in respect of a particular property or service; and 
  (b) for greater certainty, a particular arrangement, entity, plan, property or scheme includes an arrangement, an entity, a plan, a property or a scheme in respect of which one of the main purposes for a person’s participation in the arrangement, entity, plan or scheme, or a person’s acquisition of the property, is to obtain a tax benefit. 
  
  ### Clerical services
  
  (9) For the purposes of this section, a person is not considered to have made or furnished, or participated in, assented to or acquiesced in the making of, a false statement solely because the person provided clerical services (other than bookkeeping services) or secretarial services with respect to the statement. 
  
  ### Valuations
  
  (10) Despite subsection (6), a statement as to the value of a property or a service (which value is in this subsection referred to as the “stated value”), made by the person who opined on the stated value or by a person in the course of an excluded activity is deemed to be a statement that the person would reasonably be expected to know, but for circumstances amounting to culpable conduct, is a false statement if the stated value is 
  (a) less than the product obtained when the prescribed percentage for the property or service is multiplied by the fair market value of the property or service; or 
  (b) greater than the product obtained when the prescribed percentage for the property or service is multiplied by the fair market value of the property or service. 
  
  ### Exception
  
  (11) Subsection (10) does not apply to a person in respect of a statement as to the value of a property or service if the person establishes that the stated value was reasonable in the circumstances and that the statement was made in good faith and, where applicable, was not based on one or more assumptions that the person knew or would reasonably be expected to know, but for circumstances amounting to culpable conduct, were unreasonable or misleading in the circumstances. 
  
  ### Special rules
  
  (12) For the purpose of applying this section, 
  (a) where a person is assessed a penalty that is referred to in subsection (2) the amount of which is based on the person’s gross entitlements at any time in respect of a planning activity or a valuation activity and another assessment of the penalty is made at a later time, 
  (i) if the person’s gross entitlements in respect of the activity are greater at that later time, the assessment of the penalty made at that later time is deemed to be an assessment of a separate penalty, and 
  (ii) in any other case, the notice of assessment of the penalty sent before that later time is deemed not to have been sent; 
  (b) a person’s gross entitlements at any time in respect of a planning activity or a valuation activity, in the course of which the person makes or furnishes, participates in the making of or causes another person to make or furnish a false statement, shall exclude the total of all amounts each of which is the amount of a penalty (other than a penalty the assessment of which is void because of subsection (13)) determined under paragraph (3)(a) in respect of the false statement for which notice of the assessment was sent to the person before that time; and 
  (c) where a person is assessed a penalty that is referred to in subsection (4), the person’s gross compensation at any time in respect of the false statement that could be used by or on behalf of the other person shall exclude the total of all amounts each of which is the amount of a penalty (other than a penalty the assessment of which is void because of subsection (13)) determined under subsection (5) to the extent that the false statement was used by or on behalf of that other person and for which notice of the assessment was sent to the person before that time. 
  
  ### Assessment void
  
  (13) For the purposes of this Part, if an assessment of a penalty that is referred to in subsection (2) or (4) is vacated, the assessment is deemed to be void. 
  
  ### Maximum penalty
  
  (14) A person who is liable at any time to a penalty under both subsections (2) and (4) in respect of the same false statement is liable to pay a penalty that is not more than the greater of 
  (a) the total amount of the penalties to which the person is liable at that time under subsection (2) in respect of the statement, and 
  (b) the total amount of the penalties to which the person is liable at that time under subsection (4) in respect of the statement. 
  
  ### Employee
  
  (15) If an employee (other than a specified employee, as defined in subsection 248(1) of the Income Tax Act, or an employee engaged in an excluded activity) is employed by the other person referred to in subsections (2) and (4)  
  (a) subsections (2) to (5) do not apply to the employee to the extent that the false statement could be used by or on behalf of the other person for a purpose of this Part; and 
  (b) the conduct of the employee is deemed to be that of the other person for the purpose of applying section 285 to the other person. 
  
  ### Burden of proof in respect of penalties
  
  (16) If, in an appeal under this Part, a penalty assessed by the Minister under this section or section 285 is in issue, the burden of establishing the facts justifying the assessment of the penalty is on the Minister. 
  
  # SUBDIVISION C 
  
  ## General 
  
  ### Keeping books and records
  
  286 (1) Every person that carries on a business or is engaged in a commercial activity in Canada, every person that is required under this Part to file a return and every person that makes an application for a rebate or refund shall keep all records that are necessary to enable the determination of the person’s liabilities and obligations under this Part or the amount of any rebate or refund to which the person is entitled. 
  
  ### Minister may specify information
  
  (1.1) The Minister may specify the form a record is to take and any information that the record shall contain. 
  
  ### Language and location of record
  
  (1.2) Unless otherwise authorized by the Minister, a record shall be kept in Canada in English or in French. 
  
  ### Inadequate records
  
  (2) Where a person fails to keep adequate records for the purposes of this Part, the Minister may require the person to keep such records as the Minister may specify and the person shall thereafter keep the records so specified. 
  
  ### Period for retention
  
  (3) Every person required under this section to keep records shall retain them until the expiration of six years after the end of the year to which they relate or for such other period as may be prescribed. 
  
  ### Electronic records
  
  (3.1) Every person required by this section to keep records who does so electronically shall retain them in an electronically readable format for the retention period set out in subsection (3). 
  
  ### Exemptions
  
  (3.2) The Minister may, on such terms and conditions as are acceptable to the Minister, exempt a person or a class of persons from the requirement in subsection (3.1). 
  
  ### Objection or appeal
  
  (4) Where a person who is required under this section to keep records serves a notice of objection or is a party to an appeal or reference under this Part, the person shall retain, until the objection, appeal or reference and any appeal therefrom is finally disposed of, every record that pertains to the subject-matter of the objection, appeal or reference. 
  
  ### Demand by Minister
  
  (5) Where the Minister is of the opinion that it is necessary for the administration of this Part, the Minister may, by a demand served personally or by registered or certified mail, require any person required under this section to keep records to retain those records for such period as is specified in the demand. 
  
  ### Permission for earlier disposal
  
  (6) A person who is required under this section to keep records may dispose of the records before the expiration of the period in respect of which the records are required to be kept if written permission for their disposal is given by the Minister. 
  
  ### Definitions
  
  287 In sections 288 to 292,  
  *authorized person* means a person who is authorized by the Minister for the purposes of sections 288 to 292; (personne autorisée)   
  *dwelling-house* means the whole or any part of a building or structure that is kept or occupied as a permanent or temporary residence, and includes  
  (a) a building within the curtilage of a dwelling-house that is connected to it by a doorway or by a covered and enclosed passageway, and 
  (b) a unit that is designed to be mobile and to be used as a permanent or temporary residence and that is being used as such a residence; ( maison d’habitation)   
  *judge* means a judge of a superior court having jurisdiction in the province where the matter arises or a judge of the Federal Court. (juge)  
  
  ### Inspections
  
  288 (1) Subject to subsection (2), an authorized person may, at all reasonable times, for any purpose related to the administration or enforcement of this Part 
  (a) inspect, audit or examine any documents, property or processes of a person that may be relevant in determining the obligations or entitlements of that or any other person under this Part; 
  (b) enter any premises or place where any business or commercial activity is carried on, where any property is kept, where anything is done in connection with any business or commercial activity or where any documents are or should be kept; 
  (c) require any person to give the authorized person all reasonable assistance, to answer all proper questions relating to the administration and enforcement of this Part and 
  (i) to attend with the authorized person at a place designated by the authorized person, or by video-conference or by another form of electronic communication, and to answer the questions orally, and 
  (ii) to answer the questions in writing, in any form specified by the authorized person; and 
  (d) require the person or any other person to give the authorized person all reasonable assistance with anything the authorized person is authorized to do under this Part. 
  
  ### Prior authorization
  
  (2) If any premises or place referred to in subsection (1) is a dwelling-house, an authorized person may not enter that dwelling-house without the consent of the occupant, except under the authority of a warrant issued under subsection (3). 
  
  ### Application
  
  (3) Where, on ex parte application by the Minister, a judge is satisfied by information on oath that  
  (a) there are reasonable grounds to believe that a dwelling-house is a premises or place referred to in subsection (1), 
  (b) entry into the dwelling-house is necessary for any purpose relating to the administration or enforcement of this Part, and 
  (c) entry into the dwelling-house has been, or there are reasonable grounds to believe that entry will be, refused, the judge may issue a warrant authorizing an authorized person to enter the dwelling-house subject to such conditions as are specified in the warrant, but, where the judge is not satisfied that entry into the dwelling-house is necessary for any purpose related to the administration or enforcement of this Part, the judge may 
  (d) order the occupant of the dwelling-house to provide an authorized person with reasonable access to any document or property that is or should be kept in the dwelling-house, and 
  (e) make such other order as is appropriate in the circumstances to carry out the purposes of this Part, to the extent that access was or may be expected to be refused and that the document or property is or may be expected to be kept in the dwelling-house. 
  
  ### Requirement to provide documents or information
  
  289 (1) Despite any other provision of this Part, the Minister may, subject to subsection (2), for any purpose related to the administration or enforcement of a listed international agreement or this Part, including the collection of any amount payable or remittable under this Part by any person, by a notice served or sent in accordance with subsection (1.1), require that any person provide the Minister, within any reasonable time that is stipulated in the notice, with 
  (a) any information or additional information, including a return under this Part; or 
  (b) any document. 
  
  ### Notice
  
  (1.1) A notice referred to in subsection (1) may be 
  (a) served personally; 
  (b) sent by registered or certified mail; or 
  (c) sent electronically to a bank or credit union that has provided written consent to receive notices under subsection (1) electronically. 
  
  ### Unnamed persons
  
  (2) The Minister shall not impose on any person (in this section referred to as a “third party”) a requirement under subsection (1) to provide information or any document relating to one or more unnamed persons unless the Minister first obtains the authorization of a judge under subsection (3). 
  
  ### Judicial authorization
  
  (3) A judge of the Federal Court may, on application by the Minister and subject to any conditions that the judge considers appropriate, authorize the Minister to impose on a third party a requirement under subsection (1) relating to an unnamed person or more than one unnamed person (in this subsection referred to as the “group”) if the judge is satisfied by information on oath that 
  (a) the person or group is ascertainable; and 
  (b) the requirement is made to verify compliance by the person or persons in the group with any duty or obligation under this Part. 
  (4) to (6)  [Repealed, 2013, c. 33, s. 46]  
  
  ### Compliance order
  
  289.1 (1) On summary application by the Minister, a judge may, despite subsection 326(2), order a person to provide any access, assistance, information or document sought by the Minister under section 288 or 289 if the judge is satisfied that 
  (a) the person was required under section 288 or 289 to provide the access, assistance, information or document and did not do so; and 
  (b) in the case of information or a document, the information or document is not protected from disclosure by solicitor-client privilege (within the meaning of subsection 293(1)). 
  
  ### Notice required
  
  (2) An application under subsection (1) must not be heard before the end of five clear days from the day the notice of application is served on the person against whom the order is sought. 
  
  ### Judge may impose conditions
  
  (3) The judge making an order under subsection (1) may impose any conditions in respect of the order that the judge considers appropriate. 
  
  ### Contempt of court
  
  (4) If a person fails or refuses to comply with an order, a judge may find the person in contempt of court and the person is subject to the processes and the punishments of the court to which the judge is appointed. 
  
  ### Appeal
  
  (5) An order by a judge under subsection (1) may be appealed to a court having appellate jurisdiction over decisions of the court to which the judge is appointed. An appeal does not suspend the execution of the order unless it is so ordered by a judge of the court to which the appeal is made. 
  
  ### Time period not to count
  
  289.2 The following periods of time shall not be counted in the computation of the period of time within which an assessment of a person may be made under section 296 or 297: 
  (a) if the person is served or sent a notice of a requirement under subsection 289(1), the period of time between the day on which an application for judicial review in respect of the requirement is made and the day on which the application is finally disposed of; and 
  (b) if an application is commenced by the Minister under subsection 289.1(1) to order the person to provide any access, assistance, information or document, the period of time between the day on which the person files a notice of appearance, or otherwise opposes the application, and the day on which the application is finally disposed of. 
  
  ### Search warrant
  
  290 (1) A judge may, on ex parte application by the Minister, issue a warrant authorizing any person named therein to enter and search any building, receptacle or place for any document or thing that may afford evidence of the commission of an offence under this Part and to seize the document or thing and, as soon as is practicable, bring it before, or make a report in respect thereof to, the judge or, where that judge is unable to act, another judge of the same court, to be dealt with by the judge in accordance with this section.  
  
  ### Evidence on oath
  
  (2) An application under subsection (1) shall be supported by information on oath establishing the facts on which the application is based. 
  
  ### Issue of warrant
  
  (3) A judge may issue a warrant referred to in subsection (1) where the judge is satisfied that there are reasonable grounds to believe that 
  (a) an offence under this Part has been committed; 
  (b) a document or thing that may afford evidence of the commission of the offence is likely to be found; and 
  (c) the building, receptacle or place specified in the application is likely to contain such a document or thing. 
  
  ### Contents of warrant
  
  (4) A warrant issued under subsection (1) shall refer to the offence for which it is issued, identify the building, receptacle or place to be searched and the person who is alleged to have committed the offence, and it shall be reasonably specific as to any document or thing to be searched for and seized. 
  
  ### Seizure of document
  
  (5) Any person who executes a warrant issued under subsection (1) may seize, in addition to the document or thing referred to in that subsection, any other document or thing that the person believes on reasonable grounds affords evidence of the commission of an offence under this Part and shall, as soon as is practicable, bring the document or thing before, or make a report in respect thereof to, the judge who issued the warrant or, where that judge is unable to act, another judge of the same court, to be dealt with by the judge in accordance with this section. 
  
  ### Retention of things seized
  
  (6) Subject to subsection (7), where any document or thing seized under subsection (1) or (5) is brought before a judge or a report in respect thereof is made to a judge, the judge shall, unless the Minister waives retention, order that it be retained by the Minister, who shall take reasonable care to ensure that it is preserved until the conclusion of any investigation into the offence in relation to which the document or thing was seized or until it is required to be produced for the purposes of a criminal proceeding. 
  
  ### Return of things seized
  
  (7) Where any document or thing seized under subsection (1) or (5) is brought before a judge or a report in respect thereof is made to a judge, the judge may, on the judge’s own motion or on summary application by a person with an interest in the document or thing on three clear days notice of application to the Deputy Attorney General of Canada, order that the document or thing be returned to the person from whom it was seized or the person who is otherwise legally entitled thereto, if the judge is satisfied that the document or thing 
  (a) will not be required for an investigation or a criminal proceeding; or 
  (b) was not seized in accordance with the warrant or this section. 
  
  ### Access and copies
  
  (8) The person from whom any document or thing is seized under this section is entitled, at all reasonable times and subject to such reasonable conditions as may be imposed by the Minister, to inspect the document or thing and, in the case of a document, to obtain one copy of the document at the expense of the Minister. 
  
  ### Copies
  
  291 (1) If any document is seized, inspected, audited, examined or provided under any of sections 276 and 288 to 290, the person by whom it is seized, inspected, audited or examined or to whom it is provided or any officer of the Canada Revenue Agency may make or cause to be made one or more copies of it and, in the case of an electronic document, make or cause to be made a print-out of the electronic document, and any document purporting to be certified by the Minister or an authorized person to be a copy of the document, or to be a print-out of an electronic document, made under this section is evidence of the nature and content of the original document and has the same probative force as the original document would have if it were proven in the ordinary way. 
  
  ### Compliance
  
  (2) No person shall, physically or otherwise, do or attempt to do any of the following: 
  (a) interfere with, hinder or molest any official (in this subsection having the same meaning as in section 295) doing anything the official is authorized to do under this Part, or 
  (b) prevent any official from doing anything the official is authorized to do under this Part and every person shall, unless the person is unable to do so, do everything the person is required to do by or pursuant to subsection (1) or any of sections 288 to 290 and 292. 
  
  ### Meaning of foreign-based information or document 
  
  292 (1) For the purposes of this section, 
  *foreign-based information or document* means any information or document that is available or located outside Canada and that may be relevant to the administration or enforcement of this Part, including the collection of any amount payable or remittable under this Part by any person.  
  
  ### Requirement to provide foreign-based information
  
  (2) Despite any other provision of this Part, the Minister may, by a notice served or sent in accordance with subsection (3.1), require a person resident in Canada or a non-resident person that carries on business in Canada to provide any foreign-based information or document. 
  
  ### Notice
  
  (3) A notice referred to in subsection (2) shall set out 
  (a) a reasonable period of time of not less than ninety days for the provision of the information or document; 
  (b) a description of the information or document being sought; and 
  (c) the consequences under subsection (8) to the person of the failure to provide the information or document being sought within the period of time set out in the notice. 
  
  ### Notice
  
  (3.1) A notice referred to in subsection (2) may be 
  (a) served personally; 
  (b) sent by registered or certified mail; or 
  (c) sent electronically to a bank or credit union that has provided written consent to receive notices under subsection (2) electronically. 
  
  ### Review of foreign information requirement
  
  (4) If a person is served or sent a notice of a requirement under subsection (2), the person may, within 90 days after the day on which the notice is served or sent, apply to a judge for a review of the requirement. 
  
  ### Powers on review
  
  (5) On hearing an application under subsection (4) in respect of a requirement, a judge may 
  (a) confirm the requirement; 
  (b) vary the requirement if satisfied that it is appropriate in the circumstances; or 
  (c) set aside the requirement if satisfied that it is unreasonable. 
  
  ### Requirement not unreasonable
  
  (6) For the purposes of subsection (5), a requirement to provide information or a document shall not be considered to be unreasonable because the information or document is under the control of or available to a non-resident person that is not controlled by the person on which the notice of the requirement under subsection (2) is served, or to which that notice is sent, if that person is related to the non-resident person. 
  
  ### Time period not to count
  
  (7) The period of time between the day on which an application for the review of a requirement is made under subsection (4) and the day on which the application is finally disposed of shall not be counted in the computation of 
  (a) the period of time set out in the notice of the requirement; and 
  (b) the period of time within which an assessment may be made under section 296 or 297. 
  
  ### Consequence of failure
  
  (8) If a person fails to comply substantially with a notice served or sent under subsection (2) and if the notice is not set aside under subsection (5), any court having jurisdiction in a civil proceeding relating to the administration or enforcement of this Part shall, on motion of the Minister, prohibit the introduction by that person of any foreign-based information or document covered by that notice. 
  
  ### Definitions
  
  293 (1) In this section,  
  *custodian* means a person in whose custody a package is placed under subsection (3); (gardien)   
  *judge* means a judge of a superior court having jurisdiction in the province where the matter arises or a judge of the Federal Court; (juge)   
  *lawyer* means, in the Province of Quebec, an advocate, lawyer or notary and, in any other province, a barrister or solicitor; (avocat)   
  *officer* means a person acting under the authority conferred by any of sections 276 and 288 to 291; (fonctionnaire)   
  *solicitor-client privilege* means the right, if any, that a person has in a superior court in the province where the matter arises to refuse to disclose an oral or documentary communication on the ground that the communication is one passing between the person and the person’s lawyer in professional confidence, except that, for the purposes of this section, an accounting record of a lawyer, including any supporting invoice, voucher or cheque, shall be deemed not to be such a communication. (privilège des communications entre client et avocat)  
  
  ### Solicitor-client privilege defence
  
  (2) Where a lawyer is prosecuted for failure to comply with a requirement under section 289 with respect to information or a document, the lawyer shall be acquitted if the lawyer establishes to the satisfaction of the court that the lawyer 
  (a) believed on reasonable grounds that a client of the lawyer had a solicitor-client privilege in respect of the information or document; and 
  (b) communicated to the Minister, or to a person duly authorized to act for the Minister, the lawyer’s refusal to comply with the requirement, together with a claim that a named client of the lawyer had a solicitor-client privilege in respect of the information or document. 
  
  ### Seizure where privilege claimed
  
  (3) Where, under section 290, an officer is about to seize a document in the possession of a lawyer and the lawyer claims that a named client of the lawyer has a solicitor-client privilege in respect of the document, the officer shall, without inspecting, examining or making copies of the document, 
  (a) seize the document and place it, together with any other document in respect of which the lawyer at the same time makes the same claim on behalf of the same client, in a package and suitably seal and identify the package; and 
  (b) place the package in the custody of the sheriff of the district or county in which the seizure was made or, if the officer and the lawyer agree in writing on a person to act as custodian, in the custody of that person. 
  
  ### Retention where privilege claimed
  
  (4) If, under section 288, an officer is about to inspect or examine a document in the possession of a lawyer or if, under section 289, the Minister has required the provision of a document by a lawyer, and the lawyer claims that a named client of the lawyer has a solicitor-client privilege in respect of the document, no officer shall inspect or examine the document and the lawyer shall 
  (a) place the document, together with any other document in respect of which the lawyer at the same time makes the same claim on behalf of the same client, in a package and suitably seal and identify the package or, if the officer and the lawyer agree, allow the pages of the document to be initialed and numbered or otherwise suitably identified; and 
  (b) retain it and ensure that it is preserved until it is produced to a judge as required under this section and an order is issued under this section in respect of the document. 
  
  ### Application to judge
  
  (5) Where a document is seized and placed in custody under subsection (3) or is retained under subsection (4), the client, or the lawyer on behalf of the client, may 
  (a) within fourteen days after the day the document was so placed in custody or began to be so retained apply, on three clear days notice of motion to the Deputy Attorney General of Canada, to a judge for an order 
  (i) fixing a day, not later than twenty-one days after the date of the order, and a place for the determination of the question whether the client has a solicitor-client privilege in respect of the document, and 
  (ii) requiring the production of the document to the judge at that time and place; 
  (b) serve a copy of the order on the Deputy Attorney General of Canada and, where applicable, on the custodian within six days after the day it was made and, within the same time, pay to the custodian the estimated expenses of transporting the document to and from the place of hearing and of safeguarding it; and 
  (c) if the client or lawyer has proceeded as authorized by paragraph (b), apply at the appointed time and place for an order determining the question. 
  
  ### Disposition of application
  
  (6) An application made under paragraph (5)(c) shall be heard in camera and, on the application, the judge  
  (a) may, if the judge considers it necessary to determine the question, inspect the document and, if the judge does so, the judge shall ensure that it is repackaged and resealed; and 
  (b) shall decide the matter summarily, and if the judge is of the opinion that the client 
  (i) has a solicitor-client privilege in respect of the document, the judge shall order the release of the document to the lawyer, and 
  (ii) does not have a solicitor-client privilege in respect of the document, the judge shall order that 
  (A) the custodian deliver the document to the officer or some other person designated by the Commissioner in the case of a document that was seized and placed in custody under subsection (3), or 
  (B) the lawyer make the document available for inspection or examination by the officer or other person designated by the Commissioner in the case of a document that was retained under subsection (4), and shall, at the same time, deliver concise reasons in which the document shall be identified without divulging any of its details. 
  
  ### Order on application
  
  (7) Where a document is seized and placed in custody under subsection (3) or is retained under subsection (4) and a judge, on the application of the Attorney General of Canada, is satisfied that neither the client nor the lawyer has made an application under paragraph (5)(a) or, having made such an application, that neither the client nor the lawyer has made an application under paragraph (5)(c), the judge shall order that 
  (a) the custodian deliver the document to the officer or some other person designated by the Commissioner in the case of a document that was seized and placed in custody under subsection (3); or 
  (b) the lawyer make the document available for inspection or examination by the officer or other person designated by the Commissioner in the case of a document that was retained under subsection (4). 
  
  ### Delivery by custodian
  
  (8) The custodian shall deliver the document 
  (a) to the lawyer 
  (i) in accordance with a consent executed by the officer or by or on behalf of the Deputy Attorney General of Canada or the Commissioner, or 
  (ii) in accordance with an order of a judge under this section; or 
  (b) to the officer or some other person designated by the Commissioner 
  (i) in accordance with a consent executed by the lawyer or the client, or 
  (ii) in accordance with an order of a judge under this section. 
  
  ### Continuation by another judge
  
  (9) Where the judge to whom an application is made under paragraph (5)(a) cannot for any reason act or continue to act in the application under paragraph (5)(c), the application under paragraph (5)(c) may be made to another judge. 
  
  ### Costs
  
  (10) No costs may be awarded on the disposition of any application under this section. 
  
  ### Directions
  
  (11) Where any question arises as to the course to be followed in connection with anything done or being done under this section, other than subsection (2), (3) or (4), and there is no direction in this section with respect thereto, a judge may give such direction with regard thereto as, in the judge’s opinion, is most likely to carry out the object of this section of allowing solicitor-client privilege for proper purposes. 
  
  ### Prohibition
  
  (12) The custodian shall not deliver a document to any person except in accordance with an order of a judge or a consent under this section or except to any officer or servant of the custodian for the purposes of safeguarding the document. 
  
  ### Idem
  
  (13) No officer shall inspect, examine or seize a document in the possession of a lawyer without giving the lawyer a reasonable opportunity to make a claim under this section. 
  
  ### Copies
  
  (14) At any time while a document is in the custody of a custodian under this section, a judge may, on ex parte application of the lawyer, by order, authorize the lawyer to examine or make a copy of the document in the presence of the custodian or the judge, which order shall contain such provisions as may be necessary to ensure that the document is repackaged and that the package is resealed without alteration or damage.  
  
  ### Waiver of privilege
  
  (15) Where, for the purpose of subsection (2), (3) or (4), a lawyer makes a claim that a named client of the lawyer has a solicitor-client privilege in respect of information or a document, the lawyer shall at the same time communicate to the Minister or to a person duly authorized to act for the Minister the address of the client last known to the lawyer so that the Minister may endeavour to advise the client of the claim of privilege that has been made on the client’s behalf and thereby give the client an opportunity, if it is practicable within the time limited by this section, to waive the claim of privilege before the matter is to be decided by a judge or other tribunal. 
  
  ### Compliance
  
  (16) No person shall hinder, molest or interfere with any person doing anything that the person is authorized to do under this section or prevent or attempt to prevent any person doing any such thing and, notwithstanding any other Act or law, every person shall, unless the person is unable to do so, do everything the person is required to do under this section. 
  
  ### Information respecting non-resident persons
  
  294 Every corporation that, at any time in a taxation year, was resident in Canada or carried on business or a commercial activity in Canada shall, in respect of each non-resident person with whom it was not dealing at arm’s length at any time in the year, file with the Minister, within six months after the end of the year, prescribed information for the year in respect of transactions with that person. 
  
  ### Definitions
  
  295 (1) In this section,  
  *aboriginal government* means an aboriginal government as defined in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act ; (gouvernement autochtone)   
  *authorized person* means a person who is engaged or employed, or who was formerly engaged or employed, by or on behalf of Her Majesty in right of Canada to assist in carrying out the provisions of this Act; (personne autorisée)   
  *business number* means the number (other than a Social Insurance Number) used by the Minister to identify  
  (a) a registrant for the purposes of this Part, 
  (a.1) a person registered under Subdivision E of Division II, or 
  (b) an applicant (other than an individual) for a rebate under this Part; ( numéro d’entreprise)   
  *confidential information* means information of any kind and in any form that relates to one or more persons and that is  
  (a) obtained by or on behalf of the Minister for the purposes of this Part, or 
  (b) prepared from information referred to in paragraph (a), but does not include information that does not directly or indirectly reveal the identity of the person to whom it relates and, for the purposes of applying subsections (3), (6) and (7) to a representative of a government entity who is not an official, includes only the information described in paragraph (5)(j); ( renseignement confidentiel)   
  *contact information*, in respect of a holder of a business number, means the name, address, telephone number, facsimile number and preferred language of communication of the holder, or similar information as specified by the Minister in respect of the holder, and includes such information in respect of one or more  
  (a) trustees of the holder, if the holder is a trust, 
  (b) members of the holder, if the holder is a partnership, 
  (c) officers of the holder, if the holder is a corporation, or 
  (d) officers or members of the holder, in any other case; ( coordonnées)   
  *corporate information*, in respect of a holder of a business number that is a corporation, means the name (including the number assigned by the incorporating authority), date of incorporation, jurisdiction of incorporation and any information on the dissolution, reorganization, amalgamation, winding-up or revival of the corporation; (renseignements d’entreprise)   
  *court of appeal* has the meaning assigned by the definition of that expression in section 2 of the Criminal Code ; (cour d’appel)   
  *government entity* means  
  (a) a department or agency of the government of Canada or of a province, 
  (b) a municipality, 
  (c) an aboriginal government, 
  (d) a corporation all of the shares (except directors’ qualifying shares) of the capital stock of which are owned by one or more persons each of which is 
  (i) Her Majesty in right of Canada, 
  (ii) Her Majesty in right of a province, 
  (iii) a municipality, or 
  (iv) a corporation described in this paragraph, or 
  (e) a board or commission, established by Her Majesty in right of Canada or Her Majesty in right of a province, that performs an administrative or regulatory function of government, or by a municipality, that performs an administrative or regulatory function of a municipality; ( entité gouvernementale)   
  *municipality* does not include a local authority determined by the Minister to be a municipality under paragraph (b) of the definition 
  *municipality* in subsection 123(1); (municipalité)   
  *official* means a person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, Her Majesty in right of Canada or a province, or a person who was formerly so employed, who formerly occupied such a position or who formerly was so engaged; (fonctionnaire)   
  *registration information*, in respect of a holder of a business number, means  
  (a) any information pertaining to the legal form of the holder, 
  (b) the type of activities carried on or proposed to be carried on by the holder, 
  (c) each date on which 
  (i) the business number was issued to the holder, 
  (ii) the holder began activities, 
  (iii) the holder ceased or resumed activities, or 
  (iv) the business number assigned to the holder was changed, and 
  (d) the reasons for the cessation, resumption or change referred to in subparagraph (c)(iii) or (iv); ( renseignements relatifs à l’inscription)   
  *representative* of a government entity means a person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, a government entity, and includes, for the purposes of subsections (2), (3), (6) and (7), a person who was formerly so employed, who formerly occupied such a position or who formerly was so engaged. (représentant)  
  
  ### Provision of information
  
  (2) Except as authorized under this section, no official or other representative of a government entity shall knowingly 
  (a) provide, or allow to be provided, to any person any confidential information; 
  (b) allow any person to have access to any confidential information; or 
  (c) use any confidential information other than in the course of the administration or enforcement of this Part. 
  
  ### Evidence relating to confidential information
  
  (3) Despite any other Act of Parliament or other law, no official or other representative of a government entity shall be required, in connection with any legal proceedings, to give or produce evidence relating to any confidential information. 
  
  ### Communications where proceedings have been commenced
  
  (4) Subsections (2) and (3) do not apply in respect of 
  (a) criminal proceedings, either by indictment or on summary conviction, that have been commenced by the laying of an information or the preferring of an indictment, under an Act of Parliament; or 
  (b) any legal proceedings relating to the administration or enforcement of this Act, the Canada Pension Plan, the Employment Insurance Act, the Unemployment Insurance Act or any other Act of Parliament or law of a province that provides for the imposition of a tax or duty.  
  
  ### Circumstances involving danger
  
  (4.1) The Minister may provide to appropriate persons any confidential information relating to imminent danger of death or physical injury to any individual. 
  
  ### Disclosure of personal information
  
  (5) An official may 
  (a) provide such confidential information to any person as may reasonably be regarded as necessary for the purpose of the administration or enforcement of this Act, solely for that purpose; 
  (b) provide to a person confidential information that can reasonably be regarded as necessary for the purposes of determining any liability or obligation of the person or any refund, rebate or input tax credit to which the person is or may become entitled under this Act; 
  (c) provide, allow to be provided, or allow inspection of or access to any confidential information to or by 
  (i) any person, or any person within a class of persons, that the Minister may authorize, subject to such conditions as the Minister may specify, or 
  (ii) any person otherwise legally entitled thereto by reason of an Act of Parliament, solely for the purposes for which that person is entitled to the information; 
  (d) provide confidential information 
  (i) to an official of the Department of Finance solely for the purposes of 
  (A) the formulation or evaluation of fiscal policy, 
  (B) an administration agreement, as defined in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act, entered into with an aboriginal government, or  
  (C) an administration agreement, as defined in subsection 2(1) of the First Nations Goods and Services Tax Act,  
  (ii) to an official solely for the purpose of the initial implementation of a fiscal policy or for the purposes of the administration or enforcement of the Canada Pension Plan, the Employment Insurance Act, the Unemployment Insurance Act or an Act of Parliament that provides for the imposition or collection of a tax or duty or that provides that displays or indications of the price or consideration for property or services include tax under this Act,  
  (iii) to an official solely for the purposes of the administration or enforcement of a law of a province that provides for the imposition or collection of a tax or duty, that provides that displays or indications of the price or consideration for property or services include tax under this Act or that provides for reimbursements to persons of amounts paid or payable by the persons as or on account of tax under this Act, 
  (iv) to an official of the government of a province solely for the purposes of the formulation or evaluation of fiscal policy, 
  (iv.1) to a person authorized by the council of a band listed in the schedule to the Budget Implementation Act, 2000 solely for the purposes of the formulation, evaluation or initial implementation of fiscal policy relating to a tax that the council of the band may impose under a by-law made under subsection 24(1) of that Act,  
  (iv.2) to a person authorized by the governing body of a first nation listed in the schedule to the First Nations Goods and Services Tax Act solely for the purposes of the formulation, evaluation or initial implementation of fiscal policy relating to a tax referred to in that Act,  
  (iv.3) to an official solely for the purpose of the administration or enforcement of the Canada Education Savings Act or a 
  *designated provincial program*, as defined in subsection 146.1(1) of the Income Tax Act,  
  (iv.4) to an official solely for the purpose of the administration or enforcement of the Canada Disability Savings Act or a 
  *designated provincial program*, as defined in subsection 146.4(1) of the Income Tax Act,  
  (v) to an official of a department or agency of the Government of Canada or of a province as to the name, address, telephone number, occupation, size or type of business of a person, solely for the purposes of enabling that department or agency to obtain statistical data for research and analysis, 
  (v.1) to an official of the Department of Employment and Social Development solely for the purpose of the administration or enforcement of a program established under the authority of the Department of Employment and Social Development Act in respect of children who are deceased or missing as a result of an offence, or a probable offence, under the Criminal Code,  
  (vi) to an official solely for the purposes of setting off, against any sum of money that may be due or payable by Her Majesty in right of Canada, a debt due to 
  (A) Her Majesty in right of Canada, or 
  (B) Her Majesty in right of a province on account of taxes payable to the province where an agreement exists between Canada and the province under which Canada is authorized to collect taxes on behalf of the province, 
  (vii) to an official solely for the purposes of section 7.1 of the Federal-Provincial Fiscal Arrangements and Federal Post-secondary Education and Health Contributions Act,  
  (viii) to an official of the Financial Transactions and Reports Analysis Centre of Canada solely for the purpose of enabling the Centre to evaluate the usefulness of information provided by the Centre to the Canada Revenue Agency under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act,  
  (ix) to an official of the Canada Revenue Agency solely for the purpose of the collection of amounts owing to Her Majesty in right of Canada or of a province under the Government Employees Compensation Act, the Canada Labour Code, the Merchant Seamen Compensation Act, the Canada Student Loans Act, the Canada Student Financial Assistance Act, the Postal Services Continuation Act, 1997, the Wage Earner Protection Program Act, the Apprentice Loans Act or a law of a province governing the granting of financial assistance to students at the post-secondary school level,  
  (x) to an official of the Canada Revenue Agency solely for the purpose of the collection of amounts owing to Her Majesty in right of Canada under the Canada Emergency Business Account program established by Export Development Canada in accordance with an authorization made under subsection 23(1) of the Export Development Act,  
  (xi) to an official of 
  (A) the Canada Revenue Agency solely for the purposes of the administration or enforcement of the Dental Benefit Act, or  
  (B) the Department of Health solely for the purposes of the formulation or evaluation of policy for that Act, 
  (xi.1) to an official of 
  (A) the Department of Employment and Social Development or the Department of Health, solely for the purpose of the administration or enforcement of the Canadian Dental Care Plan established under the authority of the Department of Health Act in respect of dental service for individuals, or  
  (B) the Department of Health solely for the purpose of the formulation or evaluation of policy for that plan, 
  (xii) to an official of the Canada Revenue Agency solely for the purposes of the administration or enforcement of the Rental Housing Benefit Act,  
  (xiii) to a person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, the Canada Mortgage and Housing Corporation, solely for the purposes of the formulation or evaluation of policy for the Rental Housing Benefit Act, or  
  (xiv) to an official solely for the purposes of a security review under subsection 83.032(10) or section 83.034 of the Criminal Code, if the information can reasonably be considered to be relevant to the security review;  
  (d.1) provide confidential information, or allow the inspection of or access to confidential information, as the case may be, under, and solely for the purpose of, 
  (i) paragraph 33.1(a) of the Old Age Security Act,  
  (ii) an order made under subsection 462.48(3) of the Criminal Code, or  
  (iii) an order made under the Mutual Legal Assistance in Criminal Matters Act to gather or send information, for the purposes of an investigation or prosecution relating to an act or omission that, if it had occurred in Canada, would constitute an offence for which an order could be obtained under subsection 462.48(3) of the Criminal Code, in response to a request made pursuant to  
  (A) an administrative arrangement entered into under section 6 of the Mutual Legal Assistance in Criminal Matters Act, or  
  (B) a bilateral agreement for mutual legal assistance in criminal matters to which Canada is a party; 
  (e) provide confidential information solely for the purposes of sections 23 to 25 of the Financial Administration Act ;  
  (f) use confidential information to compile information in a form that does not directly or indirectly reveal the identity of the person to whom the information relates; 
  (g) use, or provide to any person, confidential information solely for a purpose relating to the supervision, evaluation or discipline of an authorized person by Her Majesty in right of Canada in respect of a period during which the authorized person was employed by or engaged by or on behalf of Her Majesty in right of Canada to assist in the administration or enforcement of this Act, to the extent that the information is relevant for that purpose; 
  (h) provide access to records of confidential information to the Librarian and Archivist of Canada or a person acting on behalf of or under the direction of the Librarian and Archivist, solely for the purposes of section 12 of the Library and Archives of Canada Act, and transfer such records to the care and control of such persons solely for the purposes of section 13 of that Act;  
  (i) use confidential information relating to a person to provide information to that person; 
  (j) subject to subsection (5.01), provide to a representative of a government entity the business number of, the name of (including any trade name or other name used by), and any contact information, corporate information and registration information in respect of, the holder of a business number, if the information is provided solely for the purpose of the administration or enforcement of 
  (i) an Act of Parliament or of a legislature of a province, or 
  (ii) a by-law of a municipality or a law of an aboriginal government; 
  (k) provide confidential information to any person, solely for the purposes of the administration or enforcement of a law of a province that provides for workers’ compensation benefits; 
  (l) provide confidential information to a police officer (within the meaning assigned by subsection 462.48(17) of the Criminal Code) solely for the purpose of investigating whether an offence has been committed under the Criminal Code, or the laying of an information or the preferring of an indictment, if  
  (i) such information can reasonably be regarded as being relevant for the purpose of ascertaining the circumstances in which an offence under the Criminal Code may have been committed, or the identity of the person or persons who may have committed an offence, with respect to an official, or with respect to any person related to that official,  
  (ii) the official was or is engaged in the administration or enforcement of this Part, and 
  (iii) the offence can reasonably be considered to be related to that administration or enforcement; 
  (m) provide confidential information to any person solely for the purpose of enabling the Chief Statistician, within the meaning assigned by section 2 of the Statistics Act, to provide to a statistical agency of a province data concerning business activities carried on in the province, if the information is used by the statistical agency of the province solely for research and analysis and that statistical agency is authorized under the law of the province to collect the same or similar information on its own behalf in respect of such activities;  
  (n) provide confidential information, or allow the inspection of or access to confidential information, as the case may be, solely for the purposes of a provision contained in a tax treaty (as defined in subsection 248(1) of the Income Tax Act) or in a listed international agreement; or  
  (o) provide confidential information to a person who has — under a program administered by the Canada Revenue Agency to obtain information relating to tax non-compliance — entered into a contract to provide information to the Canada Revenue Agency, to the extent necessary to inform the person of any amount they may be entitled to under the contract and of the status of their claim under the contract. 
  
  ### Restrictions on information sharing
  
  (5.01) No information may be provided to a representative of a government entity under paragraph (5)(j) in connection with a program, activity or service provided or undertaken by the government entity unless the government entity uses the business number as an identifier in connection with the program, activity or service. 
  
  ### Public disclosure
  
  (5.02) The Minister may, in connection with a program, activity or service provided or undertaken by the Minister, make available to the public the business number of, and the name of (including any trade name or other name used by), the holder of a business number. 
  
  ### Public disclosure by representative of government entity
  
  (5.03) A representative of a government entity may, in connection with a program, activity or service provided or undertaken by the government entity, make available to the public the business number of, and the name of (including any trade name or other name used by), the holder of a business number, if 
  (a) a representative of the government entity was provided with that information pursuant to paragraph (5)(j); and 
  (b) the government entity uses the business number as an identifier in connection with the program, activity or service. 
  
  ### Serious offences
  
  (5.04) An official may provide to a law enforcement officer of an appropriate police organization 
  (a) confidential information, if the official has reasonable grounds to believe that the information will afford evidence of an act or omission in or outside of Canada that, if committed in Canada, would be 
  (i) an offence under any of 
  (A) section 3 of the Corruption of Foreign Public Officials Act,  
  (B) sections 119 to 121, 123 to 125 and 426 of the Criminal Code,  
  (C) section 465 of the Criminal Code as it relates to an offence described in clause (B), and  
  (D) sections 144, 264, 271, 279, 279.02, 281 and 333.1, paragraphs 334(a) and 348(1)(e) and sections 349, 435 and 462.31 of the Criminal Code,  
  (ii) a terrorism offence or a criminal organization offence, as those terms are defined in section 2 of the Criminal Code, for which the maximum term of imprisonment is 10 years or more, or  
  (iii) an offence 
  (A) that is punishable by a minimum term of imprisonment, 
  (B) for which the maximum term of imprisonment is 14 years or life, or 
  (C) for which the maximum term of imprisonment is 10 years and that 
  (I) resulted in bodily harm, 
  (II) involved the import, export, trafficking or production of drugs, or 
  (III) involved the use of a weapon; and 
  (b) information setting out the reasonable grounds referred to in paragraph (a), to the extent that any such grounds rely on information referred to in that paragraph. 
  
  ### Threats to security
  
  (5.05) An official may provide to the head of a recipient Government of Canada institution listed in Schedule 3 to the Security of Canada Information Disclosure Act, or to an official designated for the purposes of that Act by the head of that recipient institution,  
  (a) confidential information, if there are reasonable grounds to suspect that the information would be relevant to 
  (i) an investigation of whether the activity of any person may constitute threats to the security of Canada, as defined in section 2 of the Canadian Security Intelligence Service Act, or  
  (ii) an investigation of whether any of the following offences may have been committed: 
  (A) a terrorism offence as defined in section 2 of the Criminal Code, and  
  (B) an offence under section 462.31 of the Criminal Code, if that investigation is related to a terrorism offence as defined in section 2 of that Act; and  
  (b) information setting out the reasonable grounds referred to in paragraph (a), to the extent that any such grounds rely on information referred to in that paragraph. 
  
  ### Measures to prevent unauthorized use or disclosure
  
  (5.1) The person presiding at a legal proceeding relating to the supervision, evaluation or discipline of an authorized person may order such measures as are necessary to ensure that confidential information is not used or provided to any person for any purpose not relating to that proceeding, including 
  (a) holding a hearing in camera ;  
  (b) banning the publication of the information; 
  (c) concealing the identity of the person to whom the information relates; and 
  (d) sealing the records of the proceeding. 
  
  ### Disclosure to person or on consent
  
  (6) An official or other representative of a government entity may provide confidential information relating to a person 
  (a) to that person; and 
  (b) with the consent of that person, to any other person. 
  
  ### Confirmation of registration and business number
  
  (6.1) On being provided by any person with information specified by the Minister sufficient to identify a single person and a number, an official may confirm or deny that the following statements are both true: 
  (a) the identified person is registered under Subdivision E of Division II or Subdivision D of Division V; and 
  (b) the number is the business number of the identified person. 
  
  ### Appeal from order or direction
  
  (7) An order or direction that is made in the course of or in connection with any legal proceedings and that requires an official or other representative of a government entity to give or produce evidence relating to any confidential information may, by notice served on all interested parties, be appealed forthwith by the Minister or by the person against whom the order or direction is made to 
  (a) the court of appeal of the province in which the order or direction is made, in the case of an order or direction made by a court or other tribunal established under the laws of the province, whether that court or tribunal is exercising a jurisdiction conferred by the laws of Canada; or 
  (b) the Federal Court of Appeal, in the case of an order or direction made by a court or other tribunal established under the laws of Canada. 
  
  ### Disposition of appeal
  
  (8) The court to which an appeal is taken under subsection (7) may allow the appeal and quash the order or direction appealed from or may dismiss the appeal, and the rules of practice and procedure from time to time governing appeals to the courts shall apply, with such modifications as the circumstances require, in respect of an appeal instituted under subsection (7). 
  
  ### Stay
  
  (9) An appeal instituted under subsection (7) shall stay the operation of the order or direction appealed from until judgment is pronounced. 
  
  # SUBDIVISION D 
  
  ## Assessments, Objections and Appeals 
  
  ## Assessments 
  
  ### Assessments
  
  296 (1) The Minister may assess 
  (a) the net tax of a person under Division V for a reporting period of the person, 
  (b) any tax payable by a person under Division II, IV or IV.1, 
  (c) any penalty or interest payable by a person under this Part, 
  (d) any amount payable by a person under any of paragraphs 228(2.1)(b) and (2.3)(d), section 230.1 and paragraphs 232.01(5)(c) and 232.02(4)(c), and 
  (e) any amount which a person is liable to pay or remit under subsection 177(1.1) or Subdivision A or B.1 of Division VII, and may reassess or make an additional assessment of tax, net tax, penalty, interest or an amount referred to in paragraph (d) or (e). 
  
  ### Allowance of unclaimed credit
  
  (2) Where, in assessing the net tax of a person for a particular reporting period of the person, the Minister determines that 
  (a) an amount (in this subsection referred to as the “allowable credit”) would have been allowed as an input tax credit for the particular reporting period or as a deduction in determining the net tax for the particular reporting period if it had been claimed in a return under Division V for the particular reporting period filed on the day that is the day on or before which the return for the particular reporting period was required to be filed and the requirements, if any, of subsection 169(4) or 234(1) respecting documentation that apply in respect of the allowable credit had been met, 
  (b) the allowable credit was not claimed by the person in a return filed before the day notice of the assessment is sent to the person or was so claimed but was disallowed by the Minister, and 
  (c) the allowable credit would be allowed, as an input tax credit or deduction in determining the net tax for a reporting period of the person, if it were claimed in a return under Division V filed on the day notice of the assessment is sent to the person or would be disallowed if it were claimed in that return only because the period for claiming the allowable credit expired before that day, the Minister shall take the allowable credit into account in assessing the net tax for the particular reporting period as if the person had claimed the allowable credit in a return filed for the period. 
  
  ### Allowance of unclaimed rebate
  
  (2.1) Where, in assessing the net tax of a person for a reporting period of the person or an amount (in this subsection referred to as the “overdue amount”) that became payable by a person under this Part, the Minister determines that 
  (a) an amount (in this subsection referred to as the “allowable rebate”) would have been payable to the person as a rebate if it had been claimed in an application under this Part filed on the particular day that is 
  (i) if the assessment is in respect of net tax for the reporting period, the day on or before which the return under Division V for the period was required to be filed, or 
  (ii) if the assessment is in respect of an overdue amount, the day on which the overdue amount became payable by the person, and, where the rebate is in respect of an amount that is being assessed, if the person had paid or remitted that amount, 
  (b) the allowable rebate was not claimed by the person in an application filed before the day notice of the assessment is sent to the person, and 
  (c) the allowable rebate would be payable to the person if it were claimed in an application under this Part filed on the day notice of the assessment is sent to the person or would be disallowed if it were claimed in that application only because the period for claiming the allowable rebate expired before that day, the Minister shall apply all or part of the allowable rebate against that net tax or overdue amount as if the person had, on the particular day, paid or remitted the amount so applied on account of that net tax or overdue amount 
  
  ### Application or payment of credit
  
  (3) If, in assessing the net tax of a person for a particular reporting period of the person, the Minister determines that there is an overpayment of net tax for the particular period, except where the assessment is made in the circumstances described in paragraph 298(4)(a) or (b) after the time otherwise limited for the assessment by paragraph 298(1)(a), the Minister shall 
  (a) apply 
  (i) all or part of the overpayment against 
  (ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on or before the particular day that is the day on or before which the person was required to file a return under this Part for the particular period, the person defaulted in paying or remitting under this Part and that remains unpaid or unremitted on the day notice of the assessment is sent to the person, as if the person had, on the particular day, paid or remitted the amount so applied on account of the outstanding amount; 
  (b) apply 
  (i) all or part of the overpayment that was not applied under paragraph (a) together with interest at the prescribed rate on all or that part of the overpayment, computed for the period beginning on the day that is 30 days after the latest of 
  (A) the particular day, 
  (B) the day on which the return for the particular reporting period was filed, and 
  (C) in the case of an overpayment that is attributable to a payment or remittance made on a day subsequent to the days referred to in clauses (A) and (B), that subsequent day, and ending on the day on which the person defaulted in paying or remitting the outstanding amount referred to in subparagraph (ii) against 
  (ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on a day (in this paragraph referred to as the “later day”) after the particular day, the person defaulted in paying or remitting under this Part and that remains unpaid or unremitted on the day notice of the assessment is sent to the person, as if the person had, on the later day, paid the amount and interest so applied on account of the outstanding amount; and 
  (c) refund to the person that part of the overpayment that was not applied under paragraphs (a) and (b) together with interest at the prescribed rate on that part of the overpayment, computed for the period beginning on the day that is 30 days after the latest of 
  (i) the particular day, 
  (ii) the day on which the return for the particular reporting period was filed, and 
  (iii) in the case of an overpayment that is attributable to a payment or remittance made on a day subsequent to the days referred to in subparagraphs (i) and (ii), that subsequent day, and ending on the day the refund is paid to the person. 
  
  ### Application or payment of rebate
  
  (3.1) If, in assessing the net tax of a person for a particular reporting period of the person or an amount (in this subsection referred to as the “overdue amount”) that became payable by a person under this Part, all or part of an allowable rebate referred to in subsection (2.1) is not applied under that subsection against that net tax or overdue amount, except where the assessment is made in the circumstances described in paragraph 298(4)(a) or (b) after the time otherwise limited for the assessment by paragraph 298(1)(a), the Minister shall 
  (a) apply 
  (i) all or part of the allowable rebate that was not applied under subsection (2.1) against 
  (ii) any other amount (in this paragraph referred to as the “outstanding amount”) that, on or before the particular day that is 
  (A) if the assessment is in respect of net tax for the particular reporting period, the day on or before which the return under Division V for the particular period was required to be filed, or 
  (B) if the assessment is in respect of an overdue amount, the day on which the overdue amount became payable by the person, the person defaulted in paying or remitting under this Part and that remains unpaid or unremitted on the day notice of the assessment is sent to the person, as if the person had, on the particular day, paid or remitted the amount so applied on account of the outstanding amount; 
  (b) apply 
  (i) all or part of the allowable rebate that was not applied under subsection (2.1) or paragraph (a) together with interest at the prescribed rate on all or that part of the allowable rebate, computed for the period beginning on the day that is 30 days after the later of 
  (A) the particular day, and 
  (B) where the assessment is in respect of net tax for the particular reporting period, the day on which the return for the particular reporting period was filed, and ending on the day on which the person defaulted in paying or remitting the outstanding amount referred to in subparagraph (ii) against 
  (ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on a day (in this paragraph referred to as the “later day”) after the particular day, the person defaulted in paying or remitting under this Part and that remains unpaid or unremitted on the day notice of the assessment is sent to the person, as if the person had, on the later day, paid the amount and interest so applied on account of the outstanding amount; and 
  (c) refund to the person that part of the allowable rebate that was not applied under any of subsection (2.1) and paragraphs (a) and (b) together with interest at the prescribed rate on that part of the allowable rebate, computed for the period beginning on the day that is 30 days after the later of 
  (i) the particular day, and 
  (ii) where the assessment is in respect of net tax for the particular reporting period, the day on which the return for the particular period was filed, and ending on the day the refund is paid to the person. 
  
  ### Limitation on refunding overpayments
  
  (4) An overpayment of net tax for a particular reporting period of a person and interest thereon under paragraphs (3)(b) and (c) 
  (a) shall not be applied under paragraph (3)(b) against an amount (in this paragraph referred to as the “outstanding amount”) that is payable or remittable by the person unless the input tax credit or deduction to which the overpayment is attributable would have been allowed as an input tax credit or deduction, as the case may be, in determining the net tax for another reporting period of the person if the person had claimed the input tax credit or deduction in a return under Division V filed on the day the person defaulted in paying or remitting the outstanding amount and the person were not a specified person for the purposes of subsection 225(4); and 
  (b) shall not be refunded under paragraph (3)(c) unless the input tax credit or deduction would have been allowed as an input tax credit or deduction, as the case may be, in determining the net tax for another reporting period of the person if the person had claimed the input tax credit or deduction in a return under Division V filed on the day notice of the assessment is sent to the person. 
  
  ### Limitation on refunding allowable rebates
  
  (4.1) An allowable rebate referred to in subsection (2.1) or a part thereof that was not applied under that subsection and interest thereon under paragraphs (3.1)(b) and (c) 
  (a) shall not be applied under paragraph (3.1)(b) against an amount (in this paragraph referred to as the “outstanding amount”) that is payable or remittable by a person unless the allowable rebate would have been payable to the person as a rebate if the person had claimed it in an application under this Part filed on the day the person defaulted in paying or remitting the outstanding amount and, in the case of a rebate under section 261, if subsection 261(3) allowed the person to claim the rebate within four years after the person paid or remitted the amount in respect of which the rebate would be so payable; and 
  (b) shall not be refunded under paragraph (3.1)(c) unless the allowable rebate would have been payable to the person as a rebate if the person had claimed it in an application under this Part filed on the day notice of the assessment is sent to the person, and, where the rebate is in respect of an amount that is being assessed, if the person had paid or remitted that amount. 
  
  ### Deemed claim or application
  
  (5) Where, in assessing the net tax of a person or tax or any other amount payable by a person, the Minister takes an amount into account under subsection (2) or applies or refunds an amount under subsection (2.1), (3) or (3.1), 
  (a) the person is deemed to have claimed the amount in a return or application filed under this Part; and 
  (b) to the extent that an amount is applied against any tax or other amount payable or remittable by the person under this Part, the Minister is deemed to have refunded or paid the amount to the person and the person is deemed to have paid or remitted the tax or other amount against which it was applied. 
  
  ### Refund on reassessment
  
  (6) Where a person has paid an amount on account of tax, net tax, penalty, interest or other amount assessed under this section and the amount paid exceeds the amount determined on reassessment to have been payable or remittable by the person, the Minister shall refund to the person the amount of the excess, together with interest thereon at the prescribed rate for the period beginning on the day the amount was paid by the person and ending on the day the refund is paid. 
  
  ### Interest on cancelled amounts
  
  (6.1) Despite subsection (6), if a person has paid an amount of interest or penalty and the Minister cancels that amount under section 281.1, the Minister shall refund the amount to the person, together with interest on the amount at the prescribed rate for the period beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that section and ending on the day on which the refund is paid. 
  
  ### Restriction on refunds
  
  (7) An amount under this section shall not be refunded to a person at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act and the Select Luxury Items Tax Act have been filed with the Minister.  
  
  ### Meaning of 
  *overpayment of net tax* 
  
  (8) In this section, 
  *overpayment of net tax* of a person for a reporting period of the person means the amount, if any, by which the total of  
  (a) all amounts remitted by the person on account of net tax for the period, and 
  (b) where the net tax for the period is negative, the net tax refund for the period, exceeds the total of 
  (c) where the net tax for the period is positive, the net tax for the period, and 
  (d) all amounts paid to the person as a net tax refund for the period. 
  
  ### Assessment of rebate
  
  297 (1) On receipt of an application made by a person for a rebate under section 215.1 or Division VI, the Minister shall, with all due dispatch, consider the application and assess the amount of the rebate, if any, payable to the person. 
  
  ### Reassessment
  
  (2) The Minister may reassess or make an additional assessment of the amount of a rebate, notwithstanding any previous assessment of the amount of the rebate. 
  
  ### Assessment of overpayment of rebate
  
  (2.1) The Minister may assess, reassess or make an additional assessment of an amount payable by a person under section 264, notwithstanding any previous assessment of the amount. 
  
  ### Payment of rebate
  
  (3) Where, on assessment under this section, the Minister determines that a rebate is payable to a person, the Minister shall pay the rebate to the person. 
  
  ### Interest on rebate
  
  (4) If a rebate under section 215.1 or Division VI (other than section 253) is paid to a person under subsection (3), the Minister shall pay interest at the prescribed rate to the person on the rebate for the period beginning on the day that is 30 days after the day the application in which the rebate is claimed is filed with the Minister and ending on the day the rebate is paid. 
  (5)  [Repealed, 2006, c. 4, s. 152]  
  
  ### Minimum amounts owed to Her Majesty
  
  297.1 (1) If the Minister determines, at any time, that the total of all amounts owing by a person to Her Majesty in right of Canada under this Part does not exceed two dollars, those amounts are deemed to be nil. 
  
  ### Minimum amounts payable by Minister
  
  (2) If, at any time, the total of all amounts payable by the Minister to a person under this Part does not exceed two dollars, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada. However, if the person, at that time, does not owe any amount to Her Majesty in right of Canada, those amounts payable are deemed to be nil. 
  
  ### Period for assessment
  
  298 (1) Subject to subsections (3) to (6.1), an assessment of a person shall not be made under section 296 
  (a) in the case of 
  (i) an assessment of net tax of the person for a reporting period of the person, 
  (ii) an amount payable under section 230.1 in respect of an amount paid to, or applied to a liability of, the person as a refund under Division V in respect of a reporting period of the person, or 
  (iii) an amount payable under section 230.1 in respect of an amount paid to, or applied to a liability of, the person as interest under Division V in respect of an amount paid or applied as a refund in respect of a reporting period of the person, more than four years after the later of the day on or before which the person was required under section 238 to file a return for the period and the day the return was filed; 
  (a.1) in the case of an assessment of an amount payable under paragraph 228(2.1)(b) or (2.3)(d), 232.01(5)(c) or 232.02(4)(c) that a person is required to pay on or before a day, more than four years after that day; 
  (b) in the case of an assessment of tax payable by the person under Division II in respect of a supply to which subsection 221(2) or (2.1) applies, more than four years after the later of the day on or before which the person was required to file the return in which that tax was required to be reported and the day the return was filed; 
  (c) in the case of an assessment of tax payable by the person under Division II, other than tax referred to in paragraph (b), more than four years after the tax became payable; 
  (d) in the case of an assessment of tax payable by the person under Division IV, 
  (i) if the tax is payable under section 218.01 or subsection 218.1(1.2), more than seven years after the later of the day on or before which the person was required to file the return in which that tax was required to be reported and the day the return was filed, and 
  (ii) in any other case, more than four years after the later of the day on or before which the person was required to file the return in which that tax was required to be reported and the day the return was filed; 
  (d.1) in the case of an assessment of tax payable by the person under Division IV.1, more than four years after 
  (i) where the person is required to report the tax in a return, the later of the day on or before which the person was required to file the return with the Minister and the day the return was filed, and 
  (ii) in any other case, the day the person is required to pay the tax to the Receiver General; 
  (e) in the case of any penalty payable by the person, other than a penalty under section 280.1, 285, 285.01, 285.02, 285.03 or 285.1, more than four years after the person became liable to pay the penalty; 
  (f) in the case of an assessment of an amount for which a person became liable under subsection 177(1.1), section 266 or 267.1, subsection 270(4) or Subdivision B.1 of Division VII, more than four years after the person became liable; and 
  (g) in the case of an assessment for an amount for which a trustee in bankruptcy became liable under Subdivision A of Division VII, after the earlier of 
  (i) the day that is ninety days after the return under this Part on which the assessment is based is filed with, or other evidence of the facts on which the assessment is based comes to the attention of, the Minister, and 
  (ii) the expiration of the period determined under whichever of paragraphs (a) to (e) applies in the circumstances. 
  
  ### Period for assessment of rebate
  
  (2) Subject to subsections (3) to (6.1), an assessment under subsection 297(1) of the amount of a rebate may be made at any time, but a reassessment or additional assessment under section 297 or an assessment under subsection 297(2.1) in respect of an amount paid or applied as a rebate or of an amount paid or applied as interest in respect of an amount paid or applied as a rebate shall not be made more than four years after the day the application for the rebate was filed in accordance with this Part. 
  
  ### Exception
  
  (3) Subsections (1) and (2) do not apply in respect of a reassessment of a person made 
  (a) to give effect to a decision on an objection or appeal; 
  (b) with the consent in writing of the person to dispose of an appeal; or 
  (c) to give effect to an alternative basis or argument advanced by the Minister under subsection (6.1). 
  
  ### Idem
  
  (4) An assessment in respect of any matter may be made at any time where the person to be assessed has, in respect of that matter, 
  (a) made a misrepresentation that is attributable to the person’s neglect, carelessness or wilful default; 
  (b) committed fraud 
  (i) in making or filing a return under this Part, 
  (ii) in making or filing an application for a rebate under Division VI, or 
  (iii) in supplying, or failing to supply, any information under this Part; or 
  (c) filed a waiver under subsection (7) that is in effect at that time. 
  
  ### Idem
  
  (5) Where, in making an assessment, the Minister determines that a person has paid in respect of any matter an amount as or an account of tax payable or net tax remittable for a particular reporting period of the person that was in fact payable or remittable for another reporting period of the person, the Minister may at any time make an assessment for that other period in respect of that matter. 
  
  ### Idem
  
  (6) Where the result of a reassessment on an objection to, or a decision on an appeal from, an assessment is to reduce the amount of tax payable by a person and, by reason of the reduction, any input tax credit or rebate claimed by the person for a reporting period, or in an application for a rebate, should be reduced, the Minister may assess or reassess that reporting period or that application for rebate, as the case may be, only for the purpose of taking the reduction of tax into account in respect of the input tax credit or rebate. 
  
  ### 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, 
  (a) there is relevant evidence that the person is no longer able to adduce without leave of the court; and 
  (b) it is not appropriate in the circumstances for the court to order that the evidence be adduced. 
  
  ### 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. 
  
  ### 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). 
  
  ### Waiver
  
  (7) Any person may, within the time otherwise limited by subsection (1) or (2) for assessing the person, waive the application of subsection (1) or (2) by filing with the Minister a waiver in the prescribed form specifying the matter in respect of which the person waives the application of that subsection. 
  
  ### Revoking waiver
  
  (8) Any person who files a waiver under subsection (7) may revoke the waiver on six months notice to the Minister by filing with the Minister a notice of revocation of the waiver in the prescribed form. 
  
  ### Minister not bound
  
  299 (1) The Minister is not bound by any return, application or information provided by or on behalf of any person and may make an assessment, notwithstanding any return, application or information so provided or that no return, application or information has been provided. 
  
  ### Liability not affected
  
  (2) Liability under this Part to pay or remit any tax, penalty, interest or other amount is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made. 
  
  ### Assessment valid and binding
  
  (3) An assessment, subject to being vacated on an objection or appeal under this Part and subject to a reassessment, shall be deemed to be valid and binding. 
  
  ### Binding effect where unincorporated body
  
  (3.1) Where a person (referred to in this subsection as the “body”) that is not an individual or a corporation is assessed in respect of any matter, 
  (a) the assessment is not invalid only because one or more other persons (each of which is referred to in this subsection as a “representative”) who are liable for obligations of the body did not receive a notice of the assessment; 
  (b) the assessment is binding on each representative of the body, subject to a reassessment of the body and the rights of the body to object to or appeal from the assessment under this Part; and 
  (c) an assessment of a representative in respect of the same matter is binding on the representative subject only to a reassessment of the representative and the rights of the representative to object to or appeal from the assessment of the representative under this Part on the grounds that the representative is not a person who is liable to pay or remit an amount to which the assessment of the body relates, the body has been reassessed in respect of that matter or the assessment of the body in respect of that matter has been vacated. 
  
  ### Assessment deemed valid
  
  (4) An assessment shall, subject to being reassessed or vacated as a result of an objection or appeal under this Part, be deemed to be valid and binding, notwithstanding any error, defect or omission therein or in any proceeding under this Part relating thereto. 
  
  ### Irregularities
  
  (5) An appeal from an assessment shall not be allowed by reasons only of an irregularity, informality, omission or error on the part of any person in the observation of any directory provision of this Part. 
  
  ### Notice of assessment
  
  300 (1) After making an assessment, the Minister shall send to the person assessed a notice of the assessment. 
  
  ### Scope of notice
  
  (2) A notice of assessment may include assessments in respect of any number or combination of reporting periods, transactions, rebates or amounts payable or remittable under this Part. 
  
  ### Amount deemed not assessed
  
  300.1 Despite any other provision of this Part, an amount in respect of which particular information relevant to its assessment was provided to the Canada Revenue Agency under a contract entered into by a person under a program administered by the Canada Revenue Agency to obtain information relating to tax non-compliance is, until the amount is collected by the Minister, deemed for the purpose of any agreement entered into by or on behalf of the Government of Canada under section 8.3 of the Federal-Provincial Fiscal Arrangements Act not to be payable or remittable under this Part as a result of an assessment.  
  
  ## Objections and Appeals 
  
  ### Meaning of 
  *specified person* 
  
  301 (1) Where an assessment is issued to a person in respect of net tax for a reporting period of the person, an amount (other than net tax) that became payable or remittable by the person during a reporting period of the person or a rebate of an amount paid or remitted by the person during a reporting period of the person, for the purposes of this section, the person is a 
  *specified person* in respect of the assessment or a notice of objection to the assessment if  
  (a) the person was a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) during that reporting period; or 
  (b) the person was not a charity during that reporting period and the person’s threshold amounts, determined in accordance with subsection 249(1), exceed $6 million for both the person’s fiscal year that includes the reporting period and the person’s previous fiscal year. 
  
  ### Objection to assessment
  
  (1.1) Any person who has been assessed and who objects to the assessment may, within ninety days after the day notice of the assessment is sent to the person, file with the Minister a notice of objection in the prescribed form and manner setting out the reasons for the objection and all relevant facts. 
  
  ### Issue to be decided
  
  (1.2) Where a person objects to an assessment in respect of which the person is a specified person, the notice of objection shall 
  (a) reasonably describe each issue to be decided; 
  (b) specify in respect of each issue the relief sought, expressed as the change in any amount that is relevant for the purposes of the assessment; and 
  (c) provide the facts and reasons relied on by the person in respect of each issue. 
  
  ### Input tax allocation
  
  (1.21) If a financial institution to which subsection (1.2) does not apply objects to an assessment and the objection relates in any manner to the application of section 141.02, the notice of objection shall 
  (a) reasonably describe each issue to be decided in respect of that section; 
  (b) specify in respect of each of those issues the relief sought, expressed as the change in any amount that is relevant for the purposes of the assessment; and 
  (c) provide the facts and reasons relied on by the financial institution in respect of each of those issues. 
  
  ### Late compliance
  
  (1.3) Despite subsection (1.2) or (1.21), if a notice of objection filed by a person to which one of those subsections applies does not include the information required by paragraph (1.2)(b) or (c), or (1.21)(b) or (c), as the case may be, in respect of an issue to be decided that is described in the notice, the Minister may in writing request the person to provide the information, and those paragraphs shall be deemed to be complied with in respect of the issue if, within 60 days after the request is made, the person submits the information in writing to the Minister. 
  
  ### Limitation on objections
  
  (1.4) Despite subsection (1.1), if a person to which subsection (1.2) or (1.21) applies has filed a notice of objection to an assessment (in this subsection referred to as the “earlier assessment”) and the Minister makes a particular assessment under subsection (3) pursuant to the notice of objection, except where the earlier assessment was made under subsection 274(8) or in accordance with an order of a court vacating, varying or restoring an assessment or referring an assessment back to the Minister for reconsideration and reassessment, the person may object to the particular assessment in respect of an issue 
  (a) only if the person complied with subsection (1.2) or (1.21) in the notice with respect to that issue; and 
  (b) only with respect to the relief sought in respect of that issue as specified by the person in the notice. 
  
  ### Application of subsection (1.4)
  
  (1.5) Where a person has filed a notice of objection to an assessment (in this subsection referred to as the “earlier assessment”) and the Minister makes a particular assessment under subsection (3) pursuant to the notice of objection, subsection (1.4) does not limit the right of the person to object to the particular assessment in respect of an issue that was part of the particular assessment and not part of the earlier assessment. 
  
  ### Limitation on objections
  
  (1.6) Notwithstanding subsection (1.1), no objection may be made by a person in respect of an issue for which the right of objection has been waived in writing by the person. 
  
  ### Acceptance of objection
  
  (2) The Minister may accept a notice of objection notwithstanding that it was not filed in the prescribed manner. 
  
  ### Consideration of objection
  
  (3) On receipt of a notice of objection, the Minister shall, with all due dispatch, reconsider the assessment and vacate or confirm the assessment or make a reassessment. 
  
  ### Waiving reconsideration
  
  (4) Where, in a notice of objection, a person who wishes to appeal directly to the Tax Court requests the Minister not to reconsider the assessment objected to, the Minister may confirm the assessment without reconsideration. 
  
  ### Notice of decision
  
  (5) After reconsidering an assessment under subsection (3) or confirming an assessment under subsection (4), the Minister shall send to the person objecting notice of the Minister’s decision by registered or certified mail. 
  
  ### Appeal to Tax Court
  
  302 Where a person files a notice of objection to an assessment and the Minister sends to the person a notice of a reassessment or an additional assessment, in respect of any matter dealt with in the notice of objection, the person may, within ninety days after the day the notice of reassessment or additional assessment was sent by the Minister, 
  (a) appeal therefrom to the Tax Court; or 
  (b) where an appeal has already been instituted in respect of the matter, amend the appeal by joining thereto an appeal in respect of the reassessment or additional assessment in such manner and on such terms as the Tax Court directs. 
  
  ### Extension of time by Minister
  
  303 (1) Where no objection to an assessment is filed under section 301, or no request has been made under subsection 274(6), within the time limit otherwise provided, a person may make an application to the Minister to extend the time for filing a notice of objection or a request and the Minister may grant the application. 
  
  ### Contents of application
  
  (2) An application made under subsection (1) shall set out the reasons why the notice of objection or the request was not filed within the time otherwise limited by this Part for doing so. 
  
  ### How application made
  
  (3) An application under subsection (1) shall be made by delivering or mailing to the Chief of Appeals in a District Office or Taxation Centre of the Canada Revenue Agency the application accompanied by a copy of the notice of objection or a copy of the request, as the case may be. 
  
  ### Exception
  
  (4) The Minister may accept an application under this section notwithstanding that it was not delivered or mailed to the person or place specified in subsection (3). 
  
  ### Duties of Minister
  
  (5) On receipt of an application made under subsection (1), the Minister shall, with all due dispatch, consider the application and grant or refuse it, and shall thereupon notify the person of the decision by registered or certified mail. 
  
  ### Date of objection if application granted
  
  (6) Where an application made under subsection (1) is granted, the notice of objection or the request shall be considered to have been filed on the day the decision of the Minister is mailed to the person. 
  
  ### When order to be made
  
  (7) No application shall be granted under this section unless 
  (a) the application is made within one year after the expiration of the time otherwise limited by this Part for objecting or making a request under subsection 274(6), as the case may be; and 
  (b) the person demonstrates that 
  (i) within the time otherwise limited by this Part for objecting, 
  (A) the person was unable to act or to give a mandate to act in the person’s name, or 
  (B) the person had a bona fide intention to object to the assessment or make the request, 
  (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, and 
  (iii) the application was made as soon as circumstances permitted it to be made. 
  
  ### Extension of time by Tax Court
  
  304 (1) A person who has made an application under section 303 may apply to the Tax Court to have the application granted after either 
  (a) the Minister has refused the application, or 
  (b) ninety days have elapsed after service of the application under subsection 303(1) and the Minister has not notified the person of the Minister’s decision, but no application under this section may be made after the expiration of thirty days after the day the decision has been mailed to the person under subsection 303(5). 
  
  ### How application made
  
  (2) An application under subsection (1) shall be made by filing in the Registry of the Tax Court, in accordance with the provisions of the Tax Court of Canada Act, three copies of the documents filed under subsection 303(3).  
  
  ### Copy to Commissioner
  
  (3) After receiving an application made under this section, the Tax Court shall send a copy of the application to the office of the Commissioner. 
  
  ### Powers of Court
  
  (4) The Tax Court may dispose of an application made under subsection (1) by 
  (a) dismissing it, or 
  (b) granting it, and in granting an application, it may impose such terms as it deems just or order that the notice of objection or the request be deemed to be a valid objection or request as of the date of the order. 
  
  ### When application to be granted
  
  (5) No application shall be granted under this section unless 
  (a) the application was made under subsection 303(1) within one year after the expiration of the time otherwise limited by this Part for objecting or making a request under subsection 274(6), as the case may be; and 
  (b) the person demonstrates that 
  (i) within the time otherwise limited by this Act for objecting, 
  (A) the person was unable to act or to give a mandate to act in the person’s name, or 
  (B) the person had a bona fide intention to object to the assessment or make the request, 
  (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, and 
  (iii) the application was made under subsection 303(1) as soon as circumstances permitted it to be made. 
  
  ### Extension of time to appeal
  
  305 (1) Where no appeal to the Tax Court under section 306 has been instituted within the time limited by that provision for doing so, a person may make an application to the Tax Court for an order extending the time within which an appeal may be instituted, and the Court may make an order extending the time for appealing and may impose such terms as it deems just. 
  
  ### Contents of application
  
  (2) An application made under subsection (1) shall set out the reasons why the appeal to the Tax Court was not instituted within the time otherwise limited by this Part for doing so. 
  
  ### How application made
  
  (3) An application made under subsection (1) shall be made by filing in the Registry of the Tax Court, in accordance with the provisions of the Tax Court of Canada Act, three copies of the application accompanied by three copies of the notice of appeal.  
  
  ### Copy to Deputy Attorney General of Canada
  
  (4) After receiving an application made under this section, the Tax Court shall send a copy of the application to the office of the Deputy Attorney General of Canada. 
  
  ### When order to be made
  
  (5) No order shall be made under this section unless 
  (a) the application is made within one year after the expiration of the time otherwise limited by this Part for appealing; and 
  (b) the person demonstrates that 
  (i) within the time otherwise limited by this Part for appealing, 
  (A) the person was unable to act or to give a mandate to act in the person’s name, or 
  (B) the person had a bona fide intention to appeal, 
  (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, 
  (iii) the application was made as soon as circumstances permitted it to be made, and 
  (iv) there are reasonable grounds for appealing from the assessment. 
  
  ### Appeal
  
  306 A person who has filed a notice of objection to an assessment under this Subdivision may appeal to the Tax Court to have the assessment vacated or a reassessment made after either 
  (a) the Minister has confirmed the assessment or has reassessed, or 
  (b) one hundred and eighty days have elapsed after the filing of the notice of objection and the Minister has not notified the person that the Minister has vacated or confirmed the assessment or has reassessed, but no appeal under this section may be instituted after the expiration of ninety days after the day notice is sent to the person under section 301 that the Minister has confirmed the assessment or has reassessed. 
  
  ### Limitation on appeals to the Tax Court
  
  306.1 (1) Despite sections 302 and 306, if a person to which subsection 301(1.2) or (1.21) applies has filed a notice of objection to an assessment, the person may appeal to the Tax Court to have the assessment vacated, or a reassessment made, only with respect to 
  (a) an issue in respect of which the person has complied with subsection 301(1.2) or (1.21) in the notice, or 
  (b) an issue described in subsection 301(1.5) where the person was not required to file a notice of objection to the assessment that gave rise to the issue and, in the case of an issue described in paragraph (a), the person may so appeal only with respect to the relief sought in respect of the issue as specified by the person in the notice. 
  
  ### Idem
  
  (2) Notwithstanding sections 302 and 306, a person may not appeal to the Tax Court to have an assessment vacated or varied in respect of an issue for which the right of objection or appeal has been waived in writing by the person. 
  
  ### Institution of appeals
  
  307 An appeal to the Tax Court under this Act, other than one referred to in section 18.3001 of the Tax Court of Canada Act, shall be instituted in the manner set out in that Act or in any rules made under that Act.  
  
  ### Notice to Commissioner
  
  308 (1) Where an appeal is made to the Tax Court under section 18.3001 of the Tax Court of Canada Act, the Court shall forthwith send a copy of the notice of appeal to the office of the Commissioner.  
  (2)  [Repealed, 2007, c. 18, s. 50]  
  
  ### Disposition of appeal
  
  309 (1) The Tax Court may dispose of an appeal from an assessment by 
  (a) dismissing it; or 
  (b) allowing it and 
  (i) vacating the assessment, or 
  (ii) referring the assessment back to the Minister for reconsideration and reassessment. 
  (2)  [Repealed, 1993, c. 27, s. 132]  
  
  ### References to Tax Court
  
  310 (1) Where the Minister and another person agree in writing that a question arising under this Part, in respect of any assessment or proposed assessment, should be determined by the Tax Court, that question shall be determined by that Court. 
  
  ### Time during consideration not to count
  
  (2) The time between the day proceedings are instituted in the Tax Court to have a question determined under subsection (1) and the day the question is finally determined shall not be counted in the computation of 
  (a) the four-year periods referred to in section 298, 
  (b) the time for service of a notice of objection to an assessment under section 301, or 
  (c) the time within which an appeal may be instituted under section 306, for the purpose of making an assessment of a person who agreed in writing to the determination of the question, for the purpose of serving a notice of objection thereto or for the purpose of instituting an appeal therefrom, as the case may be. 
  
  ### Reference of common questions to Tax Court
  
  311 (1) Where the Minister is of the opinion that a question arising out of one and the same transaction or occurrence or series of transactions or occurrences is common to assessments or proposed assessments in respect of two or more persons, the Minister may apply to the Tax Court for a determination of the question. 
  
  ### Idem
  
  (2) An application made under subsection (1) shall set out 
  (a) the question in respect of which the Minister requests a determination, 
  (b) the names of the persons that the Minister seeks to have bound by the determination of the question, and 
  (c) the facts and reasons on which the Minister relies and on which the Minister based or intends to base assessments of each person named in the application, and a copy of the application shall be served by the Minister on each of the persons named therein and on any other person who, in the opinion of the Tax Court, is likely to be affected by the determination of the question. 
  
  ### Where Tax Court may determine question
  
  (3) Where the Tax Court is satisfied that a determination of a question set out in an application made under this section will affect assessments or proposed assessments in respect of two or more persons who have been served with a copy of the application and who are named in an order of the Tax Court under this subsection, it may 
  (a) if none of the persons so named has appealed from such an assessment, proceed to determine the question in such manner as it considers appropriate; or 
  (b) if one or more of the persons so named has or have appealed, make such order joining a party or parties to that or those appeals as it considers appropriate and proceed to determine the question. 
  
  ### Determination final and conclusive
  
  (4) Subject to subsection (5), where a question set out in an application made under this section is determined by the Tax Court, the determination thereof is final and conclusive for the purposes of any assessments of persons named by it under subsection (3). 
  
  ### Appeal
  
  (5) Where a question set out in an application made under this section is determined by the Tax Court, the Minister or any of the persons who have been served with a copy of the application and who are named in an order of the Court under subsection (3) may, in accordance with the provisions of this Part, the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals from or applications for judicial review of decisions of the Tax Court, appeal from the determination.  
  
  ### Parties to appeal
  
  (6) The parties bound by a determination under subsection (4) are parties to any appeal therefrom under subsection (5). 
  
  ### Time during consideration not counted
  
  (7) The time between the day an application made under this section is served on a person under subsection (2) and 
  (a) in the case of a person named in an order of the Tax Court under subsection (3), the day the determination becomes final and conclusive and not subject to any appeal, or 
  (b) in the case of any other person, the day the person is served with notice that the person has not been named in an order of the Tax Court under subsection (3), shall not be counted in the computation of 
  (c) the four-year periods referred to in section 298, 
  (d) the time for service of a notice of objection to an assessment under section 301, or 
  (e) the time within which an appeal may be instituted under section 306, for the purpose of making an assessment of the person, serving a notice of objection thereto or instituting an appeal therefrom, as the case may be. 
  
  ### Statutory recovery rights only
  
  312 Except as specifically provided in this Part, the Customs Act or the Financial Administration Act, no person has a right to recover any money paid to Her Majesty as or on account of, or that has been taken into account by Her Majesty as, tax, net tax, penalty, interest or any other amount under this Part.  
  
  # SUBDIVISION E 
  
  ## Collection 
  
  ### Definitions
  
  313 (1) The following definitions apply in this section.  
  *action* means an action to collect a tax debt of a person and includes a proceeding in a court and anything done by the Minister under any provision of this Division. (action)   
  *legal representative* of a person means a trustee in bankruptcy, an assignee, a liquidator, a curator, a receiver of any kind, a trustee, an heir, an administrator, an executor, a liquidator of a succession, a committee, or any other like person, administering, winding up, controlling or otherwise dealing in a representative or fiduciary capacity with any property, business, commercial activity or estate that belongs or belonged to, or that is or was held for the benefit of, the person or the person’s estate. (représentant légal)   
  *tax debt* means any amount payable or remittable by a person under this Part. (dette fiscale)  
  
  ### Debts to Her Majesty
  
  (1.1) A tax debt is a debt due to Her Majesty in right of Canada and is recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided under this Part. 
  
  ### Court proceedings
  
  (2) The Minister may not commence a proceeding in a court to collect a tax debt of a person in respect of an amount that may be assessed under this Part, unless when the proceeding is commenced the person has been or may be assessed for that amount. 
  
  ### No actions after limitation period
  
  (2.1) The Minister may not commence an action to collect a tax debt after the end of the limitation period for the collection of the tax debt. 
  
  ### Limitation period
  
  (2.2) The limitation period for the collection of a tax debt of a person 
  (a) begins 
  (i) if a notice of assessment, or a notice referred to in subsection 322(1), in respect of the tax debt, is sent to or served on the person after March 3, 2004, on the last day on which one of those notices is sent or served, 
  (ii) if no notice referred to in subparagraph (i) in respect of the tax debt was sent or served and the earliest day on which the Minister can commence an action to collect that tax debt is after March 3, 2004, on that earliest day, and 
  (iii) if subparagraphs (i) and (ii) do not apply and the tax debt was payable on March 4, 2004, or would have been payable on that date but for a limitation period that otherwise applied to the collection of the tax debt, on March 4, 2004; and 
  (b) ends, subject to subsection (2.6), on the day that is 10 years after the day on which it begins. 
  
  ### Limitation period restarted
  
  (2.3) The limitation period described in subsection (2.2) for the collection of a tax debt of a person restarts (and ends, subject to subsection (2.6), on the day that is 10 years after the day on which it restarts) on any day, before it would otherwise end, on which 
  (a) the person acknowledges the tax debt in accordance with subsection (2.4); 
  (b) a remittance in respect of the tax debt is deemed under subsection 228(6) to have been made; 
  (c) a reduction or an offset in respect of the tax debt is made under subsection 228(7); 
  (d) the Minister commences an action to collect the tax debt; or 
  (e) the Minister, under paragraph 296(1)(e) or subsection 317(9), 323(4), 324(2) or 325(2), assesses another person in respect of the tax debt. 
  
  ### Acknowledgement of tax debts
  
  (2.4) A person acknowledges a tax debt if the person 
  (a) promises, in writing, to pay the tax debt; 
  (b) makes a written acknowledgement of the tax debt, whether or not a promise to pay can be inferred from the acknowledgement and whether or not it contains a refusal to pay; or 
  (c) makes a payment, including a purported payment by way of a negotiable instrument that is dishonoured, on account of the tax debt. 
  
  ### Agent or legal representative
  
  (2.5) For the purposes of this section, an acknowledgement made by a person’s agent or legal representative has the same effect as if it were made by the person. 
  
  ### Extension of limitation period
  
  (2.6) In computing the day on which a limitation period ends, there shall be added the number of days on which one or more of the following is the case: 
  (a) the Minister has postponed collection action against the person under subsection 315(3) in respect of the tax debt; 
  (b) the Minister has accepted and holds security in lieu of payment of the tax debt; 
  (c) if the person was resident in Canada on the applicable date described in paragraph (2.2)(a) in respect of the tax debt, the person is non-resident; or 
  (d) an action that the Minister may otherwise take in respect of the tax debt is restricted or not permitted under any provision of the Bankruptcy and Insolvency Act, of the Companies’ Creditors Arrangement Act or of the Farm Debt Mediation Act.  
  
  ### Bar to claims
  
  (2.7) Despite any law of Canada or a province, Her Majesty in right of Canada is not liable for any claim that arises because the Minister collected a tax debt after the end of any limitation period that applied to the collection of the tax debt and before March 4, 2004. 
  
  ### Orders after March 3, 2004 and before effect
  
  (2.8) Despite any order or judgment made after March 3, 2004 that declares a tax debt not to be payable or remittable by a person, or that orders the Minister to reimburse to a person a tax debt collected by the Minister, because a limitation period that applied to the collection of the tax debt ended before royal assent to any measure giving effect to this section, the tax debt is deemed to have become payable or remittable on March 4, 2004. 
  
  ### Interest on judgments
  
  (3) If a judgment is obtained for any tax, net tax, penalty, interest or other amount payable or remittable under this Part, including a certificate registered under section 316, the provisions of this Part by which interest is payable for failure to pay or remit the amount apply, with such modifications as the circumstances require, to failure to pay the judgment debt, and the interest is recoverable in like manner as the judgment debt. 
  
  ### Court costs
  
  (4) If an amount is payable by a person to Her Majesty in right of Canada because of an order, judgment or award of a court in respect of the costs of litigation relating to a matter to which this Part applies, subsections 314(1) and (3) and sections 316 to 322 apply to the amount as if the amount were a debt owing by the person to Her Majesty on account of tax payable by the person under this Part. 
  
  ### Security
  
  314 (1) The Minister may, if the Minister considers it advisable in a particular case, accept security in an amount and a form satisfactory to the Minister for payment of any amount that is or may become remittable or payable under this Part. 
  
  ### Security where objection or appeal
  
  (2) Where a person objects to or appeals from an assessment, the Minister shall accept security, in an amount and a form satisfactory to the Minister, furnished by or on behalf of the person, for the payment of any amount that is in controversy. 
  
  ### Surrender of excess security
  
  (3) Where a person who has furnished security, or on whose behalf security has been furnished, under this section requests in writing that the Minister surrender the security or any part thereof, the Minister shall surrender the security to the extent that the value thereof exceeds the amount, at the time the request is received by the Minister, of any tax, net tax, penalty, interest or other amount for the payment of which the security was furnished. 
  
  ### Assessment before collection
  
  315 (1) The Minister may not take any collection action under sections 316 to 321 in respect of any amount payable or remittable by a person that may be assessed under this Part, other than interest, unless the amount has been assessed. 
  
  ### Payment of remainder
  
  (2) If the Minister sends a notice of assessment to a person, any amount assessed then remaining unpaid is payable forthwith by the person to the Receiver General. 
  
  ### Minister may postpone collection
  
  (3) The Minister may, subject to such terms and conditions as the Minister may stipulate, postpone collection action against a person in respect of all or any part of any amount assessed that is the subject of a dispute between the Minister and the person. 
  
  ### Certificates
  
  316 (1) Any tax, net tax, penalty, interest or other amount payable or remittable by a person (in this section referred to as the “debtor”) under this Part, or any part of any such amount, that has not been paid or remitted as and when required under this Part may be certified by the Minister as an amount payable by the debtor. 
  
  ### Registration in court
  
  (2) On production to the Federal Court, a certificate made under subsection (1) in respect of a debtor shall be registered in the Court and when so registered has the same effect, and all proceedings may be taken thereon, as if the certificate were a judgment obtained in the Court against the debtor for a debt in the amount certified plus interest and penalty thereon as provided under this Part to the day of payment and, for the purposes of any such proceedings, the certificate shall be deemed to be a judgment of the Court against the debtor for a debt due to Her Majesty and enforceable as such. 
  
  ### Costs
  
  (3) All reasonable costs and charges incurred or paid in respect of the registration in the Court of a certificate made under subsection (1) or in respect of any proceedings taken to collect the amount certified are recoverable in like manner as if they had been included in the amount certified in the certificate when it was registered. 
  
  ### Charge on property
  
  (4) A document issued by the Federal Court evidencing a certificate in respect of a debtor registered under subsection (2), a writ of that Court issued pursuant to the certificate or any notification of the document or writ (such document, writ or notification in this section referred to as a “memorial”) may be filed, registered or otherwise recorded for the purpose of creating a charge, lien or priority on, or a binding interest in, property in a province, or any interest in such property, held by the debtor in the same manner as a document evidencing 
  (a) a judgment of the superior court of the province against a person for a debt owing by the person, or 
  (b) an amount payable or required to be remitted by a person in the province in respect of a debt owing to Her Majesty in right of the province may be filed, registered or otherwise recorded in accordance with or pursuant to the law of the province to create a charge, lien or priority on, or a binding interest in, the property or interest. 
  
  ### Creation of charge
  
  (5) If a memorial has been filed, registered or otherwise recorded under subsection (4), 
  (a) a charge, lien or priority is created on, or a binding interest is created in, property in the province, or any interest in such property, held by the debtor, or 
  (b) such property or interest in the property is otherwise bound, in the same manner and to the same extent as if the memorial were a document evidencing a judgment referred to in paragraph (4)(a) or an amount referred to in paragraph (4)(b), and the charge, lien, priority or binding interest created shall be subordinate to any charge, lien, priority or binding interest in respect of which all steps necessary to make it effective against other creditors were taken before the time the memorial was filed, registered or otherwise recorded. 
  
  ### Proceedings in respect of memorial
  
  (6) If a memorial is filed, registered or otherwise recorded in a province under subsection (4), proceedings may be taken in the province in respect of the memorial, including proceedings 
  (a) to enforce payment of the amount evidenced by the memorial, interest and penalty on the amount and all costs and charges paid or incurred in respect of 
  (i) the filing, registration or other recording of the memorial, and 
  (ii) proceedings taken to collect the amount, 
  (b) to renew or otherwise prolong the effectiveness of the filing, registration or other recording of the memorial, 
  (c) to cancel or withdraw the memorial wholly or in respect of any of the property or interests affected by the memorial, or 
  (d) to postpone the effectiveness of the filing, registration or other recording of the memorial in favour of any right, charge, lien or priority that has been or is intended to be filed, registered or otherwise recorded in respect of any property or interest affected by the memorial, in the same manner and to the same extent as if the memorial were a document evidencing a judgment referred to in paragraph (4)(a) or an amount referred to in paragraph (4)(b), except that, if in any such proceeding or as a condition precedent to any such proceeding, any order, consent or ruling is required under the law of the province to be made or given by the superior court of the province or by a judge or official of that court, a like order, consent or ruling may be made or given by the Federal Court or by a judge or official of the Federal Court and, when so made or given, has the same effect for the purposes of the proceeding as if it were made or given by the superior court of the province or by a judge or official of that court. 
  
  ### Presentation of documents
  
  (7) If 
  (a) a memorial is presented for filing, registration or other recording under subsection (4), or a document relating to the memorial is presented for filing, registration or other recording for the purpose of any proceeding described in subsection (6), to any official in the land, personal property or other registry system of a province, or 
  (b) access is sought to any person, place or thing in a province to make the filing, registration or other recording, the memorial or document shall be accepted for filing, registration or other recording or the access shall be granted, as the case may be, in the same manner and to the same extent as if the memorial or document relating to the memorial were a document evidencing a judgment referred to in paragraph (4)(a) or an amount referred to in paragraph (4)(b) for the purpose of a like proceeding, except that, if the memorial or document is issued by the Federal Court or signed or certified by a judge or official of that Court, any affidavit, declaration or other evidence required under the law of the province to be provided with or to accompany the memorial or document in the proceedings is deemed to have been provided with or to have accompanied the memorial or document as so required. 
  
  ### Sale, etc.
  
  (8) Despite any law of Canada or of a province, a sheriff or other person shall not, without the written consent of the Minister, sell or otherwise dispose of any property or publish any notice or otherwise advertise in respect of any sale or other disposition of any property pursuant to any process issued or charge, lien, priority or binding interest created in any proceeding to collect an amount certified in a certificate made under subsection (1), interest or penalty on the amount or costs, but if that consent is subsequently given, any property that would have been affected by such a process, charge, lien, priority or binding interest if the Minister’s consent had been given at the time the process was issued or the charge, lien, priority or binding interest was created, as the case may be, shall be bound, seized, attached, charged or otherwise affected as it would be if that consent had been given at the time the process was issued or the charge, lien, priority or binding interest was created, as the case may be. 
  
  ### Completion of notices, etc.
  
  (9) If information required to be set out by any sheriff or other person in a minute, notice or document required to be completed for any purpose cannot, because of subsection (8), be so set out without the written consent of the Minister, the sheriff or other person shall complete the minute, notice or document to the extent possible without that information and, when the Minister’s consent is given, a further minute, notice or document setting out all the information shall be completed for the same purpose, and the sheriff or other person, having complied with this subsection, is deemed to have complied with the Act, regulation or rule requiring the information to be set out in the minute, notice or document. 
  
  ### Application for an order
  
  (10) A sheriff or other person who is unable, because of subsection (8) or (9), to comply with any law or rule of court is bound by any order made by a judge of the Federal Court, on an ex parte application by the Minister, for the purpose of giving effect to the proceeding, charge, lien, priority or binding interest.  
  
  ### Deemed security
  
  (10.1) When a charge, lien, priority or binding interest created under subsection (5) by filing, registering or otherwise recording a memorial under subsection (4) is registered in accordance with subsection 87(1) of the Bankruptcy and Insolvency Act, it is deemed  
  (a) to be a claim that is secured by a security and that, subject to subsection 87(2) of that Act, ranks as a secured claim under that Act; and 
  (b) to also be a claim referred to in paragraph 86(2)(a) of that Act. 
  
  ### Details in certificates and memorials
  
  (11) Notwithstanding any law of Canada or of a province, in any certificate made under subsection (1) in respect of a debtor, in any memorial evidencing the certificate or in any writ or document issued for the purpose of collecting an amount certified, it is sufficient for all purposes 
  (a) to set out, as the amount payable by the debtor, the aggregate of amounts payable by the debtor without setting out the separate amounts making up that aggregate; and 
  (b) to refer to the rate of interest or penalty to be charged on the separate amounts making up the amount payable in general terms as 
  (i) in the case of interest, interest at the prescribed rate under this Part applicable from time to time on amounts payable to the Receiver General, without indicating the specific rates of interest to be charged on each of the separate amounts or to be charged for any particular period of time, or 
  (ii) in the case of a penalty, a penalty under section 280.1 on amounts payable to the Receiver General. 
  
  ### Garnishment
  
  317 (1) If the Minister has knowledge or suspects that a particular person is, or will be within one year, liable to make a payment to another person who is liable to pay or remit an amount under this Part (in this subsection and subsections (2), (3), (6) and (11) referred to as the “tax debtor”), the Minister may, by notice in writing, require the particular person to pay without delay, if the moneys are payable immediately, and in any other case as and when the moneys become payable, the moneys otherwise payable to the tax debtor in whole or in part to the Receiver General on account of the tax debtor’s liability under this Part. 
  
  ### Idem
  
  (2) Without limiting the generality of subsection (1), where the Minister has knowledge or suspects that within ninety days 
  (a) a bank, credit union, trust company or other similar person (in this section referred to as the “institution”) will loan or advance moneys to, or make a payment on behalf of, or make a payment in respect of a negotiable instrument issued by, a tax debtor who is indebted to the institution and who has granted security in respect of the indebtedness, or 
  (b) a person, other than an institution, will loan or advance moneys to, or make a payment on behalf of, a tax debtor who the Minister knows or suspects 
  (i) is employed by, or is engaged in providing services or property to, that person or was or will be, within ninety days, so employed or engaged, or 
  (ii) where that person is a corporation, is not dealing at arm’s length with that person, the Minister may, by notice in writing, require the institution or person, as the case may be, to pay in whole or in part to the Receiver General on account of the tax debtor’s liability under this Part the moneys that would otherwise be so loaned, advanced or paid, and any moneys so paid to the Receiver General are deemed to have been loaned, advanced or paid, as the case may be, to the tax debtor. 
  
  ### Garnishment
  
  (3) Despite any other provision of this Part, any other enactment of Canada other than the Bankruptcy and Insolvency Act, any enactment of a province or any law, if the Minister has knowledge or suspects that a particular person is, or will become within one year, liable to make a payment  
  (a) to a tax debtor, or 
  (b) to a secured creditor who has a right to receive the payment that, but for a security interest in favour of the secured creditor, would be payable to the tax debtor, the Minister may, by notice in writing, require the particular person to pay without delay, if the moneys are payable immediately, and in any other case as and when the moneys become payable, the moneys otherwise payable to the tax debtor or the secured creditor in whole or in part to the Receiver General on account of the tax debtor’s liability under this Part, and on receipt of that notice by the particular person, the amount of those moneys that is so required to be paid to the Receiver General shall, despite any security interest in those moneys, become the property of Her Majesty in right of Canada to the extent of that liability as assessed by the Minister and shall be paid to the Receiver General in priority to any such security interest. 
  (4)  [Repealed, 2000, c. 30, s. 95]  
  
  ### Effect of receipt
  
  (5) A receipt issued by the Minister for moneys paid as required under this section is a good and sufficient discharge of the original liability to the extent of the payment. 
  
  ### Effect of requirement
  
  (6) If the Minister has, under this section, required a person to pay to the Receiver General on account of the liability under this Part of a tax debtor moneys otherwise payable by the person to the tax debtor as interest, rent, remuneration, a dividend, an annuity or other periodic payment, the requirement applies to all such payments to be made by the person to the tax debtor until the liability under this Part is satisfied and operates to require payments to the Receiver General out of each such payment of such amount as is stipulated by the Minister in a notice in writing. 
  
  ### Failure to comply
  
  (7) Every person who fails to comply with a requirement under subsection (1), (3) or (6) is liable to pay to Her Majesty in right of Canada an amount equal to the amount that the person was required under subsection (1), (3) or (6), as the case may be, to pay to the Receiver General. 
  
  ### Idem
  
  (8) Every institution or person that fails to comply with a requirement under subsection (2) with respect to moneys to be loaned, advanced or paid is liable to pay to Her Majesty in right of Canada an amount equal to the lesser of 
  (a) the aggregate of moneys so loaned, advanced or paid, and 
  (b) the amount that the institution or person was required under that subsection to pay to the Receiver General. 
  
  ### Assessment
  
  (9) The Minister may assess any person for any amount payable under this section by the person to the Receiver General and, where the Minister sends a notice of assessment, sections 296 to 311 apply, with such modifications as the circumstances require. 
  
  ### Time limit
  
  (10) An assessment of an amount payable under this section by a person to the Receiver General shall not be made more than four years after the notice from the Minister requiring the payment was received by the person. 
  
  ### Effect of payment as required
  
  (11) If an amount that would otherwise have been payable to or on behalf of a tax debtor is paid by a person to the Receiver General pursuant to a notice from the Minister issued under this section or pursuant to an assessment under subsection (9), the person is deemed, for all purposes, to have paid the amount to or on behalf of the tax debtor. 
  
  ### Application to Her Majesty in right of a province
  
  (12) Provisions of this Part that provide that a person who has been required to do so by the Minister must pay to the Receiver General an amount that would otherwise be lent, advanced or paid to a particular person who is liable to make a payment under this Part, or to that particular person’s secured creditor, apply to Her Majesty in right of a province. 
  
  ### Recovery by deduction or set-off
  
  318 Where a person is indebted to Her Majesty in right of Canada under this Part, the Minister may require the retention by way of deduction or set-off of such amount as the Minister may specify out of any amount that may be or become payable to that person by Her Majesty in right of Canada. 
  
  ### Acquisition of debtor’s property
  
  319 For the purpose of collecting debts owed by a person to Her Majesty in right of Canada under this Part, the Minister may purchase or otherwise acquire any interest in the person’s property that the Minister is given a right to acquire in legal proceedings or under a court order or that is offered for sale or redemption, and may dispose of any interest so acquired in such manner as the Minister considers reasonable. 
  
  ### Moneys seized from tax debtor
  
  320 (1) If the Minister has knowledge or suspects that a particular person is holding moneys that were seized by a police officer in the course of administering or enforcing the criminal law of Canada from another person who is liable to make a payment under this Part (in this section referred to as the “tax debtor”) and that are restorable to the tax debtor, the Minister may, in writing, require the particular person to turn over the moneys otherwise restorable to the tax debtor, in whole or in part, to the Receiver General on account of the tax debtor’s liability under this Part. 
  
  ### Receipt of Minister
  
  (2) A receipt issued by the Minister for moneys turned over as required under this section is a good and sufficient discharge of the requirement to restore the moneys to the tax debtor to the extent of the amount so turned over. 
  
  ### Seizure of chattels
  
  321 (1) Where a person fails to pay an amount as required under this Part, the Minister may give thirty days notice to the person by registered or certified mail addressed to the person’s latest known address of the Minister’s intention to direct that the person’s goods and chattels be seized and sold, and, if the person fails to make the payment before the expiration of the thirty days, the Minister may issue a certificate of the failure and direct that the person’s goods and chattels be seized. 
  
  ### Idem
  
  (2) Property seized under this section shall be kept for ten days at the expense and risk of the owner and, if the owner does not pay the amount due together with all expenses within the ten days, the property seized shall be sold by public auction. 
  
  ### Idem
  
  (3) Except in the case of perishable goods, notice of a sale referred to in subsection (2) setting out the time and place thereof, together with a general description of the property to be sold shall, a reasonable time before the goods are sold, be published at least once in one or more newspapers of general local circulation. 
  
  ### Idem
  
  (4) Any surplus resulting from a sale referred to in subsection (2), after deduction of the amount owing and all expenses, shall be paid or returned to the owner of the property seized. 
  
  ### Idem
  
  (5) Such goods and chattels of any person in default as would be exempt from seizure under a writ of execution issued out of a superior court of the province in which the seizure is made are exempt from seizure under this section. 
  
  ### Person leaving Canada
  
  322 (1) If the Minister suspects that a person has left or is about to leave Canada, the Minister may, before the day otherwise fixed for payment, by notice to the person served personally or sent by registered mail addressed to the person’s latest known address, demand payment of any amount for which the person is liable under this Part or would be so liable if the time for payment of the amount had arrived, and that amount shall be paid without delay despite any other provision of this Part. 
  
  ### Failure to satisfy demand
  
  (2) If a person fails to pay an amount as required under subsection (1), the Minister may direct that goods and chattels of the person be seized, and subsections 321(2) to (5) apply with any modifications that the circumstances require. 
  
  ### Definitions
  
  322.1 (1) The definitions in this subsection apply in this section.  
  *assessed period* of a person, in respect of an authorization under subsection (2) relating to a particular reporting period of the person, means  
  (a) if the hearing date is before the last day of the particular reporting period, the period beginning on the first day of the particular reporting period and ending on the assessment date; and 
  (b) in any other case, the particular reporting period. ( période visée)   
  *assessment date*, in respect of an authorization under subsection (2), means the day immediately before the hearing date. (date de cotisation)   
  *hearing date*, in respect of an authorization under subsection (2), means the day on which a judge hears the application for the authorization. (date d’audience)   
  *judge* means a judge of a superior court of a province or a judge of the Federal Court. (juge)  
  
  ### Authorization to assess and take collection action
  
  (2) If, on ex parte application by the Minister relating to a particular reporting period of a person, a judge is satisfied that there are reasonable grounds to believe that the net tax for the period, determined without reference to this section, would be a positive amount and that the collection of all or any part of that net tax would be jeopardized by a delay in its collection, the judge shall, on such terms as the judge considers reasonable in the circumstances, authorize the Minister to, without delay,  
  (a) assess the net tax for the assessed period, determined in accordance with subsection (3); and 
  (b) take any of the actions described in sections 316 to 321 in respect of that amount. 
  
  ### Effect of authorization
  
  (3) For the purposes of this Part, where an authorization is granted under subsection (2) in respect of an application relating to a particular reporting period of a person, 
  (a) if the hearing date is before the last day of the particular period, 
  (i) the following periods are each deemed to be a separate reporting period of the person: 
  (A) the assessed period, and 
  (B) the period beginning on the hearing date and ending 
  (I) where the particular period is a fiscal year, on the last day of the fiscal quarter of the person that includes the hearing date, and 
  (II) in any other case, on the last day of the particular period, and 
  (ii) where the particular period is a fiscal year, 
  (A) the person is deemed to have made an election under section 247 to have reporting periods that are fiscal quarters of the person that takes effect at the beginning of the first fiscal quarter of the person beginning after the hearing date, and 
  (B) section 237 applies in respect of the assessed period as if that period were a reporting period determined under subsection 248(3); 
  (b) the day on or before which the person is required to file a return under Division V for the assessed period is deemed to be the hearing date; 
  (c) the net tax for the assessed period is deemed to be equal to the amount that would be the net tax for the period if, on the assessment date, the person were to claim in a return under Division V filed for the period all amounts, each of which is an amount that the person would be entitled on that day to claim as an input tax credit for the period or as a deduction in determining the net tax for the period; 
  (d) the net tax for the assessed period is deemed to have become due to the Receiver General on the hearing date; 
  (e) if, in assessing the net tax for the assessed period, the Minister takes into account an amount that the person would be entitled to claim as an input tax credit or a deduction in determining the net tax, the person is deemed to have claimed the amount in a return filed under Division V for the assessed period; and 
  (f) sections 280, 280.1 and 284 apply as if the net tax for the assessed period were not required to be remitted, and the return for that period were not required to be filed, until the last day of the period described in subsection (9). 
  
  ### Affidavits
  
  (4) Statements contained in an affidavit filed in the context of an application under this section may be based on belief in which case it must include the grounds for that belief. 
  
  ### Service of authorization and notice of assessment
  
  (5) An authorization granted under subsection (2) in respect of a person shall be served by the Minister on the person within 72 hours after it is granted, except if the judge orders the authorization to be served at some other time specified in the authorization, and a notice of assessment for the assessed period shall be served on the person together with the authorization. 
  
  ### How service effected
  
  (6) For the purpose of subsection (5), service on a person shall be effected by personal service on the person or service in accordance with the directions of a judge. 
  
  ### Application to judge for direction
  
  (7) If service cannot reasonably be effected as and when required under this section, the Minister may, as soon as practicable, apply to a judge for further direction. 
  
  ### Review of authorization
  
  (8) If a judge of a court has granted an authorization under subsection (2) in respect of a person, the person may, on six clear days notice to the Deputy Attorney General of Canada, apply to a judge of the court to review the authorization. 
  
  ### Limitation period for review application
  
  (9) An application by a person under subsection (8) to review an authorization shall be made 
  (a) within 30 days after the day on which the authorization was served on the person in accordance with this section; or 
  (b) within such further time as a judge may allow, on being satisfied that the application was made as soon as practicable. 
  
  ### Hearing in camera 
  
  (10) An application by a person under subsection (8) may, on the application of the person, be heard in private, if the person establishes to the satisfaction of the judge that the circumstances of the case justify proceedings heard in private. 
  
  ### Disposition of application
  
  (11) On an application under subsection (8), the judge shall determine the question summarily and may confirm, vary or set aside the authorization and make such other order as the judge considers appropriate. 
  
  ### Effect of setting aside authorization
  
  (12) If an authorization is set aside under subsection (11), subsection (3) does not apply in respect of the authorization and any assessment made as a result of the authorization is deemed to be void. 
  
  ### Directions
  
  (13) If any question arises as to the course to be followed in connection with anything done or being done under this section and there is no relevant direction in this section, a judge may give such direction with regard to the course to be followed as, in the opinion of the judge, is appropriate. 
  
  ### No appeal from review order
  
  (14) No appeal lies from an order of a judge made under subsection (11). 
  
  ### Liability of directors
  
  323 (1) If a corporation fails to remit an amount of net tax as required under subsection 228(2) or (2.3) or to pay an amount as required under section 230.1 that was paid to, or was applied to the liability of, the corporation as a net tax refund, the directors of the corporation at the time the corporation was required to remit or pay, as the case may be, the amount are jointly and severally, or solidarily, liable, together with the corporation, to pay the amount and any interest on, or penalties relating to, the amount. 
  
  ### Limitations
  
  (2) A director of a corporation is not liable under subsection (1) unless 
  (a) a certificate for the amount of the corporation’s liability referred to in that subsection has been registered in the Federal Court under section 316 and execution for that amount has been returned unsatisfied in whole or in part; 
  (b) the corporation has commenced liquidation or dissolution proceedings or has been dissolved and a claim for the amount of the corporation’s liability referred to in subsection (1) has been proved within six months after the earlier of the date of commencement of the proceedings and the date of dissolution; or 
  (c) the corporation has made an assignment or a bankruptcy order has been made against it under the Bankruptcy and Insolvency Act and a claim for the amount of the corporation’s liability referred to in subsection (1) has been proved within six months after the date of the assignment or bankruptcy order.  
  
  ### Diligence
  
  (3) A director of a corporation is not liable for a failure under subsection (1) where the director exercised the degree of care, diligence and skill to prevent the failure that a reasonably prudent person would have exercised in comparable circumstances. 
  
  ### Assessment
  
  (4) The Minister may assess any person for any amount payable by the person under this section and, where the Minister sends a notice of assessment, sections 296 to 311 apply, with such modifications as the circumstances require. 
  
  ### Time limit
  
  (5) An assessment under subsection (4) of any amount payable by a person who is a director of a corporation shall not be made more than two years after the person last ceased to be a director of the corporation. 
  
  ### Amount recoverable
  
  (6) Where execution referred to in paragraph (2)(a) has issued, the amount recoverable from a director is the amount remaining unsatisfied after execution. 
  
  ### Preference
  
  (7) Where a director of a corporation pays an amount in respect of a corporation’s liability referred to in subsection (1) that is proved in liquidation, dissolution or bankruptcy proceedings, the director is entitled to any preference that Her Majesty in right of Canada would have been entitled to had the amount not been so paid and, where a certificate that relates to the amount has been registered, the director is entitled to an assignment of the certificate to the extent of the director’s payment, which assignment the Minister is empowered to make. 
  
  ### Contribution
  
  (8) A director who satisfies a claim under this section is entitled to contribution from the other directors who were liable for the claim. 
  
  ### Compliance by unincorporated bodies
  
  324 (1) If any amount is required to be paid or remitted or any other thing is required to be done by or under this Part or the regulations made under this Part by a person (in this section referred to as the “body”) that is not an individual, corporation, partnership, trust or estate, it shall be the joint and several, or solidary, liability and responsibility of 
  (a) every member of the body holding office as president, chairperson, treasurer, secretary or similar officer of the body, 
  (b) where there are no such officers of the body, every member of any committee having management of the affairs of the body, and 
  (c) where there are no such officers of the body and no such committee, every member of the body, to pay or remit that amount or to comply with the requirement, and if the amount is paid or remitted or the requirement is fulfilled by an officer of the body, a member of such a committee or a member of the body, it shall be considered as compliance with the requirement. 
  
  ### Assessment
  
  (2) The Minister may assess any person for any amount for which the person is liable under this section and, where the Minister sends a notice of assessment, sections 296 to 311 are applicable, with such modifications as the circumstances require. 
  
  ### Limitation
  
  (3) An assessment of a person under subsection (2) shall not 
  (a) include any amount that the body was liable to pay or remit before the day the person became jointly and severally, or solidarily, liable; 
  (b) include any amount that the body became liable to pay or remit after the day the person ceased to be jointly and severally, or solidarily, liable; or 
  (c) be made more than two years after the day the person ceased to be jointly and severally, or solidarily, liable unless the person was grossly negligent in the carrying out of any duty or obligation imposed on the body by or under this Part or made, or participated in, assented to or acquiesced in the making of, a false statement or omission in a return, application, form, certificate, statement, invoice or answer made by the body. 
  
  ### Definitions
  
  325 (0.1) The following definitions apply in this section.  
  *property* includes money. (bien)   
  *transaction* includes an arrangement or event. (opération)  
  
  ### Tax liability re transfers not at arm’s length
  
  (1) Where at any time a person transfers property, either directly or indirectly, by means of a trust or by any other means, to 
  (a) the transferor’s spouse or common-law partner or an individual who has since become the transferor’s spouse or common-law partner, 
  (b) an individual who was under eighteen years of age, or 
  (c) another person with whom the transferor was not dealing at arm’s length, the transferee and transferor are jointly and severally, or solidarily, liable to pay under this Part an amount equal to the lesser of 
  (d) the amount determined by the formula is the amount, if any, by which the fair market value of the property at that time exceeds the fair market value at that time of the consideration given by the transferee for the transfer of the property, and is the amount, if any, by which the amount assessed the transferee under subsection 160(2) of the Income Tax Act in respect of the property exceeds the amount paid by the transferor in respect of the amount so assessed, and  
  (e) the total of all amounts each of which is 
  (i) an amount that the transferor is liable to pay or remit under this Part for the reporting period of the transferor that includes that time or any preceding reporting period of the transferor, or 
  (ii) interest or penalty for which the transferor is liable as of that time, but nothing in this subsection limits the liability of the transferor under any provision of this Part. 
  
  ### Fair market value of undivided interest
  
  (1.1) For the purpose of this section, the fair market value at any time of an undivided interest in a property, expressed as a proportionate interest in that property, is, subject to subsection (4), deemed to be equal to the same proportion of the fair market value of that property at that time. 
  
  ### Assessment
  
  (2) The Minister may at any time assess a transferee in respect of any amount payable by reason of this section, and the provisions of sections 296 to 311 apply, with such modifications as the circumstances require. 
  
  ### Discharge of liability
  
  (3) If a transferor and transferee have, by reason of subsection (1), become jointly and severally, or solidarily, liable in respect of part or all of the liability of the transferor under this Part, the following rules apply: 
  (a) a payment by the transferee on account of the transferee’s liability shall, to the extent of the payment, discharge their liability; and 
  (b) a payment by the transferor on account of the transferor’s liability only discharges the transferee’s liability to the extent that the payment operates to reduce the transferor’s liability to an amount less than the amount in respect of which the transferee was, by subsection (1), made jointly and severally, or solidarily, liable. 
  
  ### Transfers to spouse or common-law partner
  
  (4) Despite subsection (1), if at any time an individual transfers property to the individual’s spouse or common-law partner under a decree, order or judgment of a competent tribunal or under a written separation agreement and, at that time, the individual and the individual’s spouse or common-law partner were separated and living apart as a result of the breakdown of their marriage or common-law partnership (as defined in subsection 248(1) of the Income Tax Act), for the purposes of paragraph (1)(d), the fair market value at that time of the property so transferred is deemed to be nil, but nothing in this subsection limits the liability of the individual under any provision of this Part.  
  
  ### Anti-avoidance rules
  
  (5) For the purposes of this section, if a person transfers property to another person as part of a transaction or series of transactions, the following rules apply: 
  (a) the transferor is deemed to not be dealing at arm’s length with the transferee at the time of the transfer of the property if 
  (i) the transferor and the transferee do not deal at arm’s length at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, and 
  (ii) it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the transferee and the transferor under this section for an amount payable or remittable under this Part; 
  (b) an amount that the transferor is liable to pay or remit under this Part (including, for greater certainty, an amount that the transferor is liable to pay under this section, regardless of whether the Minister has made an assessment under subsection (2) in respect of that amount) is deemed to have become payable or remittable, as the case may be, in the reporting period of the transferor in which the property was transferred, if it is reasonable to conclude that one of the purposes of the transfer of the property is to avoid the payment of a future amount payable under this Part by the transferor or transferee; and 
  (c) the amount determined for A in paragraph (1)(d) is deemed to be the greater of 
  (i) the amount otherwise determined for A in paragraph (1)(d) without reference to this paragraph, and 
  (ii) the amount determined by the formula is the fair market value of the property at the time of the transfer, and is the fair market value, at its lowest at any time during the period beginning immediately prior to the transaction or series of transactions and ending immediately after the transaction or series of transactions, of the consideration given by the transferee for the transfer of the property (other than any part of the consideration that is in a form that is cancelled or extinguished during that period and for which no property that is neither cancelled nor extinguished during that period is substituted) provided that the consideration is held by the transferor at that time. 
  
  # SUBDIVISION F 
  
  ## Offences 
  
  ### Offences
  
  326 (1) Every person who fails to file or make a return as and when required by or under this Part or who fails to comply with subsection 286(2) or 291(2) or with an order made under subsection (2) is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to 
  (a) a fine of not less than $1,000 and not more than $25,000; or 
  (b) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding twelve months. 
  
  ### Compliance orders
  
  (2) Where a person has been convicted by a court of an offence under subsection (1) for a failure to comply with a provision of this Part or a regulation made under this Part, the court may make such order as it deems proper in order to enforce compliance with the provision. 
  
  ### Saving
  
  (3) A person that is convicted under this section of failing to comply with a provision of this Part or a regulation made under this Part is not liable to pay a penalty imposed under any of sections 280.1, 280.11 and 283 to 284.1 or under a regulation made under this Part for the same failure, unless a notice of assessment for the penalty was issued before the information or complaint giving rise to the conviction was laid or made. 
  
  ### Offences
  
  327 (1) Every person who has 
  (a) made, or participated in, assented to or acquiesced in the making of, false or deceptive statements in a return, application, certificate, statement, document or answer filed or made as required by or under this Part or the regulations made under this Part, 
  (b) for the purpose of evading payment or remittance of any tax or net tax payable under this Part, or obtaining a refund or rebate to which the person is not entitled under this Part, 
  (i) destroyed, altered, mutilated, secreted or otherwise disposed of any documents of a person, or 
  (ii) made, or assented to or acquiesced in the making of, false or deceptive entries, or omitted, or assented to or acquiesced in the omission, to enter a material particular in the documents of a person, 
  (c) wilfully, in any manner, evaded or attempted to evade compliance with this Part or payment or remittance of tax or net tax imposed under this Part, 
  (d) wilfully, in any manner, obtained or attempted to obtain a rebate or refund to which the person is not entitled under this Part, or 
  (e) conspired with any person to commit an offence described in any of paragraphs (a) to (c), is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to 
  (f) a fine of not less than 50%, and not more than 200%, of the amount of the tax or net tax that was sought to be evaded, or of the rebate or refund sought, or, where the amount that was sought to be evaded cannot be ascertained, a fine of not less than $1,000 and not more than $25,000, or 
  (g) both a fine referred to in paragraph (f) and imprisonment for a term not exceeding two years. 
  
  ### Prosecution on indictment
  
  (2) Every person who is charged with an offence described in subsection (1) may, at the election of the Attorney General of Canada, be prosecuted on indictment and, if convicted, is, in addition to any penalty otherwise provided, liable to 
  (a) a fine of not less than 100%, and not more than 200%, of the amount of the tax or net tax that was sought to be evaded, or of the rebate or refund sought, or, where the amount that was sought to be evaded cannot be ascertained, a fine of not less than $2,000 and not more than $25,000, or 
  (b) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding five years. 
  
  ### Penalty on conviction
  
  (3) A person that is convicted of an offence under this section is not liable to pay a penalty imposed under any of sections 280.1, 280.11 and 283 to 285.1 or under a regulation made under this Part for the same evasion or attempt unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made. 
  
  ### Stay of appeal
  
  (4) Where, in any appeal under this Part, substantially the same facts are at issue as those that are at issue in a prosecution under this section, the Minister may file a stay of proceedings with the Tax Court and thereupon the proceedings before the Tax Court are stayed pending final determination of the outcome of the prosecution. 
  
  ### Definitions
  
  327.1 (1) The definitions in subsection 285.01(1) apply in this section. 
  
  ### Offences
  
  (2) Every person that, without lawful excuse, the proof of which lies on the person, 
  (a) uses an electronic suppression of sales device or a similar device or software in relation to records that are required to be kept by any person under section 286, 
  (b) acquires or possesses an electronic suppression of sales device, or a right in respect of an electronic suppression of sales device, that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286, 
  (c) designs, develops, manufactures, possesses for sale, offers for sale, sells, transfers or otherwise makes available to another person an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286, 
  (d) supplies installation, upgrade or maintenance services for an electronic suppression of sales device that is, or is intended to be, capable of being used in relation to records that are required to be kept by any person under section 286, or 
  (e) participates in, assents to or acquiesces in the commission of, or conspires with any person to commit, an offence described in any of paragraphs (a) to (d), is guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction to a fine of not less than $10,000 and not more than $500,000 or to imprisonment for a term not exceeding two years, or to both. 
  
  ### Prosecution on indictment
  
  (3) Every person that is charged with an offence described in subsection (2) may, at the election of the Attorney General of Canada, be prosecuted on indictment and, if convicted, is, in addition to any penalty otherwise provided, liable to a fine of not less than $50,000 and not more than $1,000,000 or to imprisonment for a term not exceeding five years, or to both. 
  
  ### Penalty on conviction
  
  (4) A person that is convicted of an offence under this section is not liable to pay a penalty imposed under any of sections 280.1, 280.11 and 283 to 285.1 or under a regulation made under this Part for the same action unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made. 
  
  ### Stay of appeal
  
  (5) If, in any appeal under this Part, substantially the same facts are at issue as those that are at issue in a prosecution under this section, the Minister may file a stay of proceedings with the Tax Court and upon that filing the proceedings before the Tax Court are stayed pending final determination of the outcome of the prosecution. 
  
  ### Offence re confidential information
  
  328 (1) Every person who 
  (a) contravenes subsection 295(2), or 
  (b) knowingly contravenes an order made under subsection 295(5.1) is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding twelve months, or to both. 
  
  ### Idem
  
  (2) Every person 
  (a) to whom confidential information has been provided for a particular purpose under paragraph 295(5)(b), (c), (g), (k), (l), (m) or (n), or 
  (b) who is an official to whom confidential information has been provided for a particular purpose pursuant to paragraph 295(5)(a), (d), (e) or (h), and who for any other purpose knowingly uses, provides to any person, allows the provision to any person of, or allows any person access to, that information is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding twelve months, or to both. 
  
  ### Definitions
  
  (3) In subsections (1) and (2), 
  *official* and 
  *confidential information* have the meanings assigned by subsection 295(1).  
  
  ### Failure to pay, collect or remit taxes
  
  329 (1) Every person who wilfully fails to pay, collect or remit tax or net tax as and when required under this Part is guilty of an offence punishable on summary conviction and liable, in addition to any penalty or interest otherwise provided, to 
  (a) a fine not exceeding the aggregate of $1,000 and an amount equal to 20% of the amount of tax or net tax that should have been paid, collected or remitted; or 
  (b) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding six months. 
  
  ### General offence
  
  (2) Every person who fails to comply with any provision of this Part for which no other penalty is provided under this Subdivision is guilty of an offence punishable on summary conviction and liable to a fine not exceeding $1,000. 
  
  ### Officers of corporations, etc.
  
  330 Where a person other than an individual is guilty of an offence under this Part, every officer, director or agent of the person who directed, authorized, assented to, acquiesced in or participated in the commission of the offence is a party to and guilty of the offence and liable on conviction to the punishment provided for the offence, whether the person has been prosecuted or convicted. 
  
  ### Power to decrease punishment
  
  331 Notwithstanding the Criminal Code or any other law, the court has, in any prosecution or proceeding under this Part, neither the power to impose less than the minimum fine or imprisonment fixed by this Part nor the power to suspend sentence.  
  
  ### Information or complaint
  
  332 (1) An information or complaint under this Part may be laid or made by any officer of the Canada Revenue Agency, by a member of the Royal Canadian Mounted Police or by any person authorized to do so by the Minister and, where an information or complaint purports to have been laid or made under this Part, it shall be deemed to have been laid or made by a person so authorized by the Minister and shall not be called in question for lack of authority of the informant or complainant, except by the Minister or a person acting for the Minister or for Her Majesty in right of Canada. 
  
  ### Two or more offences
  
  (2) An information or complaint in respect of an offence under this Part may be for one or more offences and no information, complaint, warrant, conviction or other proceeding in a prosecution under this Part is objectionable or insufficient by reason of the fact that it relates to two or more offences. 
  
  ### Territorial jurisdiction
  
  (3) An information or complaint in respect of an offence under this Part may be heard, tried or determined by any court where the accused is resident, carrying on a commercial activity, found or apprehended or is in custody within its territorial jurisdiction notwithstanding the matter of the information or complaint did not arise within its territorial jurisdiction. 
  
  ### Limitation of prosecutions
  
  (4) An information or complaint under the provisions of the Criminal Code relating to summary convictions, in respect of an offence under this Part, may be laid or made on or before the day that is eight years after the day the matter of the information or complaint arose.  
  
  # SUBDIVISION G 
  
  ## Evidence and Procedure 
  
  ### Service
  
  333 (1) Where the Minister is authorized or required to serve, issue or send a notice or other document on or to a person that 
  (a) is a partnership, the notice or document may be addressed to the name of the partnership; 
  (b) is a union, the notice or document may be addressed to the name of the union; 
  (c) is a society, club, association, organization or other body, the notice or document may be addressed to the name of the body; and 
  (d) carries on business under a name or style other than the name of the person, the notice or document may be addressed to the name or style under which the person carries on business. 
  
  ### Personal service
  
  (2) Where the Minister is authorized or required to serve, issue or send a notice or other document on or to a person that carries on a business, the notice or document is deemed to have been validly served, issued or sent if it is 
  (a) where the person is a partnership, served personally on one of the partners or left with an adult person employed at the place of business of the partnership; or 
  (b) left with an adult person employed at the place of business of the person. 
  
  ### Sending by mail
  
  334 (1) For the purposes of this Part and subject to subsection (2), anything sent by first class mail or its equivalent shall be deemed to have been received by the person to whom it was sent on the day it was mailed. 
  
  ### Paying or remitting by mail
  
  (2) A person who is required under this Part to pay or remit an amount shall not be considered as having paid or remitted the amount until it is received by the Receiver General. 
  
  ### Proof of service by mail
  
  335 (1) Where, under this Part or a regulation made under this Part, provision is made for sending by mail a request for information, a notice or a demand, an affidavit of an officer of the Canada Revenue Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has knowledge of the facts in the particular case, that such a request, notice or demand was sent by registered or certified mail on a named day to the person to whom it was addressed (indicating the address), and that the officer identifies as exhibits attached to the affidavit the post office certificate of registration of the letter or a true copy of the relevant portion thereof and a true copy of the request, notice or demand, is evidence of the sending and of the request, notice or demand. 
  
  ### Proof of personal service
  
  (2) Where, under this Part or a regulation made under this Part, provision is made for personal service of a request for information, a notice or a demand, an affidavit of an officer of the Canada Revenue Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has knowledge of the facts in the particular case, that such a request, notice or demand was served personally on a named day on the person to whom it was directed, and that the officer identifies as an exhibit attached to the affidavit a true copy of the request, notice or demand, is evidence of the personal service and of the request, notice or demand. 
  
  ### Proof of electronic delivery
  
  (2.1) If, under this Part or a regulation made under this Part, provision is made for sending a notice to a person electronically, an affidavit of an officer of the Canada Revenue Agency, sworn before a commissioner or other person authorized to take affidavits, is evidence of the sending and of the notice if the affidavit sets out that 
  (a) the officer has knowledge of the facts in the particular case; 
  (b) the notice was sent electronically to the person on a named day; and 
  (c) the officer identifies as exhibits attached to the affidavit copies of 
  (i) an electronic message confirming that the notice has been sent to the person, and 
  (ii) the notice. 
  
  ### Proof of failure to comply
  
  (3) Where, under this Part or a regulation made under this Part, a person is required to make a return, an application, a statement, an answer or a certificate, an affidavit of an officer of the Canada Revenue Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and that after a careful examination and search of the records the officer has been unable to find in a given case that the return, application, statement, answer or certificate, as the case may be, has been made by that person, is evidence that in that case the person did not make the return, application, statement, answer or certificate, as the case may be. 
  
  ### Proof of time of compliance
  
  (4) Where, under this Part or a regulation made under this Part, a person is required to make a return, an application, a statement, an answer or a certificate, an affidavit of an officer of the Canada Revenue Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and that after careful examination of the records the officer has found that the return, application, statement, answer or certificate, as the case may be, was filed or made on a particular day, is evidence that it was filed or made on that day and not before. 
  
  ### Proof of documents
  
  (5) An affidavit of an officer of the Canada Revenue Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and that a document annexed to the affidavit is a document or true copy of a document, or a print-out of an electronic document, made by or on behalf of the Minister or a person exercising the powers of the Minister or by or on behalf of a person, is evidence of the nature and contents of the document. 
  
  ### Proof of documents
  
  (5.1) An affidavit of an officer of the Canada Border Services Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and that a document annexed to the affidavit is a document or a true copy of a document, or a printout of an electronic document, made by or on behalf of the Minister of Public Safety and Emergency Preparedness or a person exercising the powers of that Minister or by or on behalf of a person, is evidence of the nature and contents of the document. 
  
  ### Proof of no appeal
  
  (6) An affidavit of an officer of the Canada Revenue Agency or the Canada Border Services Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and has knowledge of the practice of the Canada Revenue Agency or the Canada Border Services Agency, as the case may be, and that an examination of the records shows that a notice of assessment was mailed or otherwise sent to a person on a particular day under this Part and that, after careful examination and search of the records, the officer has been unable to find that a notice of objection or of appeal from the assessment, as the case may be, was received within the time allowed, is evidence of the statements contained in the affidavit. 
  
  ### Presumption
  
  (7) If evidence is offered under this section by an affidavit from which it appears that the person making the affidavit is an officer of the Canada Revenue Agency or the Canada Border Services Agency, as the case may be, it is not necessary to prove the signature of the person or that the person is such an officer, nor is it necessary to prove the signature or official character of the person before whom the affidavit was sworn. 
  
  ### Proof of documents
  
  (8) Every document purporting to have been executed under or in the course of the administration or enforcement of this Part over the name in writing of the Minister, the Deputy Minister of National Revenue, the Commissioner of Customs and Revenue, the Commissioner or an officer authorized to exercise the powers or perform the duties of the Minister under this Part, shall be deemed to be a document signed, made and issued by the Minister, the Deputy Minister, the Commissioner of Customs and Revenue, the Commissioner or the officer, unless it has been called in question by the Minister or a person acting for the Minister or for Her Majesty in right of Canada. 
  
  ### Proof of documents
  
  (8.1) Every document purporting to have been executed under or in the course of the administration or enforcement of this Part over the name in writing of the Minister of Public Safety and Emergency Preparedness or the President of the Canada Border Services Agency, or an officer authorized to exercise the powers or perform the duties of that Minister under this Part, shall be deemed to be a document signed, made and issued by that Minister, the President or the officer, unless it has been called in question by that Minister or a person acting for that Minister or for Her Majesty in right of Canada. 
  (9)  [Repealed, 1994, c. 13, s. 9]  
  
  ### Mailing or sending date
  
  (10) For the purposes of this Part, if any notice or demand that the Minister is required or authorized under this Part to send to a person is mailed, or sent electronically, to the person, the day of mailing or sending, as the case may be, shall be presumed to be the date of the notice or demand. 
  
  ### Date electronic notice sent
  
  (10.1) For the purposes of this Part, if a notice or other communication in respect of a person, other than a notice or other communication that refers to the business number of a person, is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is presumed to be sent to the person and received by the person on the date that an electronic message is sent, to the electronic address most recently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requiring the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister. 
  
  ### Date electronic notice sent — business account
  
  (10.2) For the purposes of this Part, a notice or other communication in respect of a person that is made available in electronic format such that it can be read or perceived by a person or computer system or other similar device and that refers to the business number of a person is presumed to be sent to the person and received by the person on the date that it is posted by the Minister in the secure electronic account in respect of the business number of the person, unless the person has requested, at least 30 days before that date, in a manner specified by the Minister, that such notices or other communications be sent by mail. 
  
  ### Date assessment made
  
  (11) If a notice of assessment has been sent by the Minister as required under this Part, the assessment is deemed to have been made on the day of sending of the notice of assessment. 
  
  ### Proof of return
  
  (12) In any prosecution for an offence under this Part, the production of a return, an application, a certificate, a statement or an answer required under this Part or a regulation made under this Part, purporting to have been filed or delivered by or on behalf of the person charged with the offence or to have been made or signed by or on behalf of that person, is evidence that the return, application, certificate, statement or answer, as the case may be, was filed or delivered by or on behalf of that person or was made or signed by or on behalf of that person. 
  
  ### Proof of return
  
  (12.1) For the purposes of this Part, a document presented by the Minister purporting to be a print-out of the information in respect of a person received under section 278.1 by the Minister shall be received as evidence and, in the absence of evidence to the contrary, is proof of the return filed by the person under that section. 
  
  ### Idem
  
  (13) In any proceedings under this Part, the production of a return, an application, a certificate, a statement or an answer required under this Part or a regulation made under this Part, purporting to have been filed, delivered, made or signed by or on behalf of a person, is evidence that the return, application, certificate, statement or answer, as the case may be, was filed, delivered, made or signed by or on behalf of that person. 
  
  ### Idem
  
  (14) In any prosecution for an offence under this Part, an affidavit of an officer of the Canada Revenue Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the appropriate records and that an examination of the records shows that an amount required under this Part to be remitted to the Receiver General on account of tax, net tax, penalty or interest has not been received by the Receiver General, is evidence of the statements contained therein. 
  
  # DIVISION IX 
  
  ## Transitional Provisions 
  
  ## Real Property 
  
  ### Transfer of real property before 1991
  
  336 (1) Where 
  (a) a taxable supply by way of sale of real property is made to a person, and 
  (b) ownership or possession of the property is transferred under the agreement for that supply to the person before 1991, no tax is payable in respect of the supply. 
  
  ### Transfer of single unit residential complex after 1990
  
  (2) Where 
  (a) a taxable supply by way of sale of a single unit residential complex in Canada is made to an individual under an agreement in writing entered into before October 14, 1989 between the supplier and the individual, 
  (b) ownership and possession of the complex are not transferred to the individual under the agreement before 1991, and 
  (c) possession of the complex is transferred to the individual under the agreement at any time after 1990, the following rules apply: 
  (d) no tax is payable by the individual in respect of the supply, 
  (e) subsection 191(1) does not apply in respect of the complex before possession thereof is transferred to the individual, 
  (f) where the individual is a builder of the complex, 
  (i) if the individual is a builder of the complex only because of paragraph (d) of the definition 
  *builder* in subsection 123(1),  
  (A) the individual shall be deemed not to be a builder of the complex, and 
  (B) for the purposes of determining whether any other person who, after that time, makes a supply of the complex or an interest therein is a builder of the complex, the complex shall be deemed to have been occupied at that time by an individual as a place of residence, and 
  (ii) in any other case, for the purposes of determining an input tax credit of the individual, the individual shall be deemed to have paid, at that time, tax in respect of the supply equal to 4% of the consideration for the supply, 
  (g) the supplier shall be deemed to have collected, at that time, tax in respect of the supply equal to 
  (i) 4% of the consideration for the supply where the complex was, on January 1, 1991, not more than 20% completed, 
  (ii) 2.5% of the consideration for the supply where the complex was, on January 1, 1991, more than 20% completed and not more than 60% completed, 
  (iii) 1% of the consideration for the supply where the complex was, on January 1, 1991, more than 60% completed and not more than 90% completed, and 
  (iv) 0% of the consideration for the supply where the complex was, on January 1, 1991, more than 90% completed, and 
  (h) for the purposes of section 121, the complex shall be deemed not to be a specified single unit residential complex. 
  
  ### Transfer of residential condominium unit after 1990
  
  (3) Where 
  (a) a taxable supply by way of sale of a residential condominium unit in Canada is made to a person under an agreement in writing entered into before October 14, 1989 between the supplier and the person, 
  (b) ownership and possession of the unit are not transferred to the person under the agreement before 1991, and 
  (c) possession of the unit is transferred to the person under the agreement at any time after 1990, the following rules apply: 
  (d) no tax is payable by the person in respect of the supply, 
  (e) subsection 191(1) does not apply in respect of the unit before possession thereof is transferred to the person, 
  (f) where the person is a builder of the unit, 
  (i) if the person is a builder of the unit only because of paragraph (d) of the definition 
  *builder* in subsection 123(1),  
  (A) the person shall be deemed not to be a builder of the unit, and 
  (B) for the purposes of determining whether any other person who, after that time, makes a supply of the unit or an interest therein is a builder of the unit, the condominium complex in which the unit is located shall be deemed to have been registered at that time as a condominium and the unit shall be deemed to have been occupied at that time by an individual as a place of residence, and 
  (ii) in any other case, for the purposes of determining an input tax credit of the person, the person shall be deemed to have paid, at that time, tax in respect of the supply equal to 4% of the consideration for the supply, and 
  (g) the supplier shall be deemed to have collected, at that time, tax in respect of the supply equal to 4% of the consideration for the supply. 
  
  ### Transfer of condominium complex after 1990
  
  (4) Where 
  (a) a taxable supply by way of sale of a condominium complex in Canada is made to a person under an agreement in writing entered into before October 14, 1989 between the supplier and the person, 
  (b) ownership and possession of the complex are not transferred to the person under the agreement before 1991, and 
  (c) at any time after 1990, ownership of the complex is transferred to the person under the agreement or the complex is registered as a condominium, the following rules apply: 
  (d) no tax is payable by the person in respect of the supply, 
  (e) subsection 191(1) does not apply in respect of any residential condominium unit located in the complex before ownership of the complex is transferred to the person, 
  (f) where the person is a builder of the complex, 
  (i) if the person is a builder of the complex only because of paragraph (d) of the definition 
  *builder* in subsection 123(1),  
  (A) the person shall be deemed not to be a builder of the complex or of any residential condominium unit located in the complex, and 
  (B) for the purposes of determining whether any other person who, after that time, makes a supply of the complex, a residential condominium unit located in the complex or an interest in the complex or unit is a builder of the complex or of any unit located in the complex, the complex shall be deemed to have been registered at that time as a condominium and each of the units shall be deemed to have been occupied at that time by an individual as a place of residence, and 
  (ii) in any other case, for the purposes of determining an input tax credit of the person, the person shall be deemed to have paid, at that time, tax in respect of the supply equal to 4% of the consideration for the supply, and 
  (g) the supplier shall be deemed to have collected, on the earlier of 
  (i) the day ownership of the complex is transferred to the person, and 
  (ii) the day that is sixty days after the day the complex is registered as a condominium, tax in respect of the supply equal to 4% of the consideration for the supply. 
  
  ### Self-supply of residential condominium unit by limited partnership
  
  (5) Where 
  (a) an offering memorandum, in respect of an offer to sell interests in a limited partnership, is issued to prospective subscribers before October 14, 1989, 
  (b) at the time the offering memorandum is issued, it is proposed that the limited partnership will exclusively engage in the activities of acquiring land or a beneficial interest therein, constructing a condominium complex on the land, owning residential condominium units located in the complex and supplying those units by way of lease, licence or similar arrangement for the purpose of their occupancy by individuals as places of residence, 
  (c) the offering memorandum does not provide for an increase in the subscription prices of the interests in the partnership because of a change in the application of taxes and those subscription prices are not increased after October 13, 1989 and before the offer to sell the interests expires, 
  (d) a particular interest in the limited partnership is transferred to a subscriber before 1991 in accordance with the offering memorandum, 
  (e) the limited partnership, whether or not in concert with another person, 
  (i) acquires ownership of land or a beneficial interest therein before 1991, and 
  (ii) engages a person to construct a condominium complex on that land under agreements in writing entered into before October 14, 1989 or under agreements in writing entered into on or after that date that substantially conform with terms and conditions relating to those agreements as set out in the offering memorandum, 
  (f) the particular interest relates to a particular residential condominium unit that is owned by the limited partnership and is located in the condominium complex, and 
  (g) possession of the particular residential condominium unit is given after 1990 to a person under a lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence, the amount of tax that is payable and collectible by the limited partnership, and the amount of tax deemed to have been paid and collected by the limited partnership under paragraph 191(1)(e), in respect of the supply of the particular residential condominium unit that is deemed to have been made under paragraph 191(1)(d) are equal to 4% of 80% of the subscription price for the particular interest. 
  
  ### Definitions
  
  (6) The definitions in this subsection apply in subsection (5).  
  *offering memorandum*, in respect of an offer to sell interests in a limited partnership to the prospective subscribers, means one or more documents in writing that set out  
  (a) all facts concerning the limited partnership and its activities or proposed activities that significantly affect, or could reasonably be expected to have a significant effect on, the value of those interests; 
  (b) the price at which those interests are being offered; and 
  (c) the date on which ownership of the interests in the partnership are to be transferred to persons who subscribe to the offering. ( notice d’offre)   
  *subscription price*, for an interest in a limited partnership, means the consideration payable for the interest as set out in the offering memorandum. (prix de souscription)  
  
  ## Property and Services 
  
  ### Transfer of personal property before 1991
  
  337 (1) Where a taxable supply by way of sale of tangible personal property is made to a person, to the extent that 
  (a) the property is delivered to the person before 1991, or 
  (b) ownership of the property is transferred to the person before 1991, no tax is payable in respect of any consideration for the supply that is paid or becomes due before May 1991. 
  
  ### Conditional sales and instalment sales
  
  (1.1) No tax is payable in respect of a supply by way of sale (other than a sale resulting from the exercise, after 1990, of an option to purchase contained in a lease, licence or similar arrangement) of tangible personal property to the extent that the property was delivered, or ownership thereof was transferred, to the recipient before 1991 in accordance with the terms of an agreement in writing entered into before 1991 for the supply. 
  
  ### Continuous supplies
  
  (2) To the extent that consideration for a supply of electricity, natural gas, steam or any property or service that 
  (a) in the case of property, is delivered or made available, or 
  (b) in the case of a service, is performed or made available on a continuous basis by means of a wire, pipeline or other conduit is paid or becomes due before May 1991, no tax is payable in respect of the property or service delivered, performed or made available, as the case may be, to the recipient before 1991. 
  
  ### Idem
  
  (3) To the extent that consideration for a taxable supply in Canada of electricity, natural gas, steam or any property or service that 
  (a) in the case of property, is delivered or made available, or 
  (b) in the case of a service, is performed or made available on a continuous basis by means of a wire, pipeline or other conduit becomes due after April 1991, or is paid after April 1991 without becoming due, and at a time when the supplier is a registrant, tax is payable in respect of that consideration regardless of when the property or service is delivered, performed or made available, as the case may be. 
  
  ### Payment before 1991 for subscription
  
  (4) No tax is payable in respect of any consideration for a taxable supply of a subscription for newspapers, magazines or other publications published periodically that is paid before 1991. 
  
  ### Supplies after 1990
  
  (5) Except where subsection (4) applies, where a taxable supply of tangible personal property by way of sale is made, any consideration (other than an instalment payable under a contract in respect of which subsection 118(3) or (4) applies) that becomes due or is paid, without becoming due, after August 1990 and before 1991 for property that is not delivered to the recipient and ownership of which is not transferred to the recipient before 1991 shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991. 
  
  ### Idem
  
  (6) Subject to subsections (2) and (4) and 341(1), 342(1) and 343(1), where a taxable supply of tangible personal property by way of sale or of a service is made in Canada to a person other than a consumer by a supplier in the ordinary course of a business, to the extent that any consideration (other than an instalment payable under a contract in respect of which subsection 118(3) or (4) applies) became due or was paid without having become due after August 1989 and before September 1990 for property that was not delivered to the person and the ownership of which was not transferred to the person before 1991 or for any of the service that was not performed before 1991, tax is payable in respect of that consideration and the person shall, on or before April 1, 1991, file with the Minister in prescribed manner a return in prescribed form containing prescribed information and remit that tax to the Receiver General. 
  
  ### Prepaid supplies to consumers
  
  (7) Where a person makes a taxable supply by way of sale to a consumer of property that is a specified property the consideration for which exceeds $5,000 or that is a motor vehicle, ownership and possession of the property are transferred to the consumer under the agreement for the supply after 1990, and all or part of the consideration for the supply is paid or becomes due before September 1, 1990, the following rules apply: 
  (a) the amount of any rebate under section 120 to which the person is entitled, or of any input tax credit of the person, in respect of the property shall be deemed to be the proportion of the rebate or input tax credit otherwise determined that the total of all amounts that became due, or were paid without becoming due, after August 1990 as consideration for the supply of the property to the consumer is of the total consideration for that supply; and 
  (b) where the person is a licensed manufacturer or a licensed wholesaler under Part VI who would, if the property were delivered to the consumer before 1991, be required to pay tax under that Part in respect of the property, the person shall be deemed 
  (i) to have made and received, on January 1, 1991, a particular taxable supply of the property for consideration equal to the consideration for the supply of the property to the consumer, and 
  (ii) to have paid as a recipient and to have collected as a supplier, on January 1, 1991, tax in respect of the particular supply. 
  
  ### Meaning of 
  *specified property* 
  
  (8) For the purposes of subsection (7), 
  *specified property* means property in respect of which a person would be required to pay tax under paragraph 50(1)(a) if the person were a licensed manufacturer of the property under Part VI and the person had sold and delivered the property to a consumer in Canada in 1990.  
  (9)  [Repealed, 1997, c. 10, s. 240]  
  
  ### Supply completed
  
  (10) Where all or part of the consideration for a taxable supply by way of sale of tangible personal property becomes due or is paid without becoming due after April 1991 and ownership or possession of the property was transferred before 1991 to the recipient under the agreement for the supply, 
  (a) where paragraph 168(3)(a) applies, ownership and possession of the property, and 
  (b) where paragraph 168(3)(b) applies, ownership of the property, shall, for the purposes of section 168, be deemed to have been transferred to the recipient in April 1991. 
  
  ### Application
  
  (11) This section does not apply to a supply to which section 338 applies. 
  
  ### Budget arrangements
  
  338 (1) Where a supply of property or a service (other than a subscription for newspapers, magazines or other publications published periodically) is made and the consideration for the supply of the property or service delivered, performed or made available during any period beginning before 1991 and ending after 1990 is paid by the recipient under a budget payment arrangement with a reconciliation of the payments to take place at or after the end of the period and before 1992, at the time the supplier issues an invoice for the reconciliation of the payments, the supplier shall determine the positive or negative amount determined by the formula is the tax that would be payable by the recipient for the part of the property or service supplied during the period that was delivered, performed or made available after 1990, if the consideration therefor had become due and been paid after 1990; and is the total tax payable by the recipient in respect of the supply of the property or service delivered, performed or made available during the period. 
  
  ### Collection of tax
  
  (2) Where the amount determined under subsection (1) in respect of a supply of property or a service is a positive amount and the supplier is a registrant, the supplier shall collect, and be deemed to have collected on the day the invoice for the reconciliation of payments is issued, that amount from the recipient as tax. 
  
  ### Refund of excess
  
  (3) Where the amount determined under subsection (1) in respect of a supply of property or a service is a negative amount and the supplier is a registrant, the supplier shall refund or credit that amount to the recipient and issue a credit note for that amount in accordance with section 232. 
  
  ### Continuous supply
  
  (4) Where a supply of property or a service, during any period for which the supplier issues an invoice for the supply, is made on a continuous basis by means of a wire, pipeline or other conduit and, because of the method of recording the delivery of the property or the provision of the service, the time at which the property or a part thereof is delivered, or the time at which the service or a part thereof is provided, cannot reasonably be determined, an equal part of the whole of the property delivered, or of the whole of the service provided, in the period shall, for the purposes of this section, be deemed to have been delivered or provided, as the case may be, on each day of the period. 
  
  ### Progress payments
  
  339 Where a taxable supply is made under a contract to construct, renovate, alter or repair real property or a ship or other marine vessel, 
  (a) any consideration for the supply that becomes due or is paid without becoming due after August 1989 and before 1991 as a progress payment required under the contract shall be deemed, for the purposes of this Part, to have become due on January 1, 1991 and not to have been paid before 1991; 
  (b) no tax is payable in respect of any part of the consideration for the supply that may reasonably be attributed to property delivered and services performed under the contract before 1991; and 
  (c) where paragraph 168(3)(c) applies in respect of the supply, tax is payable in respect thereof and the construction, renovation, alteration or repair is substantially completed before December 1990, the construction, renovation, alteration or repair shall be deemed, for the purposes of this Part, to have been substantially completed on December 1, 1990 and not before that day. 
  
  ### Prepayment of rent and royalties
  
  340 (1) Subject to subsection (3), where a taxable supply of property is made in Canada to a person by way of lease, licence or similar arrangement, any payment of consideration for the supply that became due after August 1990 and before 1991, or that was paid after August 1990 and before 1991 without becoming due, to the extent that the payment is rent, royalty or a similar payment attributable to a period after 1990, shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991 and, where the supplier is a registrant, tax is payable in respect of the amount of consideration so deemed to have become due. 
  
  ### Idem
  
  (2) Subject to subsection (3), where a taxable supply of property by way of lease, licence or similar arrangement is made in Canada to a person other than a consumer by a supplier in the ordinary course of a business, to the extent that any consideration for the supply that became due after August 1989 and before September 1990 or was paid after August 1989 and before September 1990 without becoming due is rent, royalty or a similar payment that is attributable to a period after 1990, tax is payable in respect of that consideration and the person shall, on or before April 1, 1991, file with the Minister in prescribed manner a return in prescribed form containing prescribed information and remit the tax in respect of that consideration to the Receiver General. 
  
  ### Rent, etc. paid before 1994 under certain leases
  
  (3) No tax is payable in respect of any consideration paid before 1994 under an agreement in writing entered into before 1991 for the supply by way of lease of property that is 
  (a) an automobile, or 
  (b) equipment for use by a medical practitioner or a practitioner (within the meanings assigned by section 1 of Part II of Schedule V) in supplying services in the course of practising the profession of the medical practitioner or practitioner, as the case may be, and the possession of which is transferred to the recipient of the supply before 1991, to the extent that that consideration is rent or other payment under the agreement that is attributable to a period before 1994 or to the extent that that consideration is attributable to the acquisition of the property. 
  
  ### Periods before 1991
  
  (4) Where a taxable supply of property is made to a person by way of lease, licence or similar arrangement, no tax is payable in respect of the consideration for the supply that became due before May 1991, or that was paid before May 1991 without becoming due, to the extent that the consideration is rent, royalty or a similar payment attributable to a period before 1991. 
  
  ### Application
  
  (5) Subsections (1), (2) and (4) do not apply in respect of payments of consideration for the use of, or the right to use, intangible personal property where the amount of the payment is not dependent on the amount of the use of or production from, or the profit from the use of or production from, the property. 
  
  ### Agreements before August 8, 1989
  
  (6) Where under an agreement in writing entered into before August 8, 1989 
  (a) a supply by way of lease of tangible personal property that is capital property of the supplier, or 
  (b) a supply by way of sub-lease of tangible personal property that is capital property of the person who supplied the property by way of lease to the sub-lessor, is made to a person, no tax is payable in respect of any consideration for any supply of the property under the agreement. 
  
  ### Variation of agreement
  
  (7) Where an agreement in writing is renewed after August 7, 1989 or is varied or altered after August 7, 1989 to vary or alter the term of the agreement or the property affected by the agreement, the agreement shall be deemed, for the purposes of subsection (6), to have been entered into after August 7, 1989. 
  
  ### Adjustments
  
  340.1 (1) Where a person remits tax under subsection 337(6) or 340(2) calculated on the consideration or a part thereof for a taxable supply and that consideration or part thereof is subsequently reduced, to the extent that the person did not claim, and is not, but for this section, entitled to claim, an input tax credit or a rebate in respect of the portion of the tax that was calculated on the amount by which the consideration or part thereof was reduced, that portion shall be deemed, for the purposes of determining a rebate under section 261, to be an amount that was not payable or remittable by the person. 
  
  ### Application
  
  (2) Subsection (1) does not apply in circumstances in which section 161 or 176 applies. 
  
  ### Services before 1991
  
  341 (1) No tax is payable in respect of any consideration that is paid or becomes due before May 1991 for a supply of a service (other than a freight transportation service or a service that is the transportation of an individual) to a person if all or substantially all of the service was performed before 1991. 
  
  ### Idem
  
  (2) Where all or substantially all of a service (other than a freight transportation service or a service that is the transportation of an individual) that is supplied to a person is not performed before 1991, no tax is payable in respect of any consideration for the supply that is paid or becomes due before May 1991 to the extent that that consideration relates to any part of the service that was performed before 1991. 
  
  ### Payments before 1991
  
  (3) Subject to subsection 337(2), where any consideration for a taxable supply of a service (other than a freight transportation service or a service that is the transportation of an individual) is paid after August 1990 and before 1991 without having become due or becomes due after August 1990 and before 1991, that consideration shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991. 
  
  ### Memberships and admissions
  
  (4) For the purposes of this Division, a supply of a membership in a club, an organization or an association and a supply of an admission in respect of a place of amusement, a seminar, an activity or an event shall be deemed to be supplies of a service, but a supply of a right to acquire a membership in a club, an organization or an association shall be deemed to be a supply of property. 
  
  ### Combined supply
  
  (5) For the purposes of subsection 168(8), where 
  (a) any combination of service, personal property or real property (each of which is in this subsection referred to as an “element”) is supplied, 
  (b) the consideration for each element is not separately identified, and 
  (c) no tax would be payable in respect of an element that is property the ownership or possession of which is transferred to the recipient before 1991 if that element were supplied separately, the element mentioned in paragraph (c) shall be deemed to have been supplied separately from all of the other elements. 
  
  ### Application
  
  (6) This section does not apply to a supply in respect of which section 338 applies. 
  
  ### Legal service performed before 1991
  
  341.1 (1) No tax is payable in respect of the consideration for a supply of a legal service to the extent that the consideration relates to any part of the service that was performed before 1991 and, under the agreement for the supply, does not become due 
  (a) until allowed, directed or ordered by a court; or 
  (b) until the completion or termination of the service provided by the supplier. 
  
  ### Service of representative, trustee, receiver or liquidator
  
  (2) No tax is payable in respect of the consideration for a supply of a service of a personal representative in respect of the administration of an estate, or a service of a trustee, receiver or liquidator, to the extent that the consideration relates to any part of the service that was performed before 1991 and does not become due 
  (a) in the case of the service of a personal representative, until it is approved by all beneficiaries of the estate or in accordance with the terms of the trust binding the personal representative; 
  (b) in the case of the service of a trustee, until a date determined under the terms of the trust or an agreement in writing for the supply; or 
  (c) in any case, until it is allowed, directed or ordered by a court. 
  
  ### Idem
  
  (3) For the purposes of subsections (1) and (2), where substantially all of a service is performed before 1991, all of the service shall be deemed to have been performed before 1991. 
  
  ### Transportation of individuals
  
  342 (1) No tax is payable in respect of a supply of a service that is the transportation of an individual (other than a service to which subsection (3) applies) where the service begins before 1991. 
  
  ### Idem
  
  (2) Where any consideration for a supply of a service that is the transportation of an individual (other than a service to which subsection (3) applies) is paid after August 1990 and before 1991 without having become due or becomes due after August 1990 and before 1991, that consideration shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991. 
  
  ### Transportation pass before February 1991
  
  (2.1) No tax is payable in respect of a supply made by a person to an individual of a transportation pass that entitles the individual to transportation services during a period beginning before 1991 and ending before February 1991 without payment of consideration by the individual each time a supply of a transportation service is made to the individual. 
  
  ### Transportation pass
  
  (3) Where a supply is made by a person to an individual of a transportation pass that entitles the individual to transportation services during a period beginning before 1991 and ending after January 1991 without payment of consideration by the individual each time a supply of a transportation service is made to the individual, and consideration for the pass becomes due after August 1990 and before May 1991 or is paid after August 1990 and before May 1991 without becoming due, the part of the consideration for the pass determined by the formula is amount of the consideration for the pass, is the number of days in the period that are after 1990, and is the number of days in the period, shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991. 
  
  ### Freight transportation services
  
  343 (1) Where one or more carriers make a supply of freight transportation services in respect of a continuous freight movement of tangible personal property and, before 1991, the shipper of the property transferred possession of the property to the first carrier engaged in the continuous freight movement, no tax is payable in respect of any consideration for the supply that is paid or becomes due before May 1991. 
  
  ### Freight transportation services after 1990
  
  (2) Where 
  (a) one or more carriers make a supply in Canada of freight transportation services in respect of a continuous freight movement of tangible personal property, 
  (b) the shipper of the property does not transfer possession of the property before 1991 to the first carrier engaged in the continuous freight movement, and 
  (c) consideration for the supply is paid or becomes due after August 1990 and before 1991, that consideration shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991. 
  
  ### Interpretation
  
  (3) For the purposes of this section, “carrier”, “continuous freight movement”, “freight transportation service” and “shipper” have the same meanings as in Part VII of Schedule VI. 
  
  ### Meaning of 
  *funeral services* 
  
  344 (1) In this section, 
  *funeral services* includes the provision of a coffin, a headstone or any other property relating to the funeral, burial or cremation of an individual that is provided under an arrangement for the provision of funeral services.  
  
  ### Funeral arrangements entered into before September 1990
  
  (2) Where 
  (a) an arrangement for funeral services in respect of an individual is entered into in writing before September 1990, 
  (b) under the terms of the arrangement, the funds required to pay for the funeral services are held by a trustee who is responsible for acquiring funeral services in respect of the individual, and 
  (c) at the time the arrangement is entered into, it is reasonable to expect that all or a part of those funds will be advanced to the trustee before the individual’s death, no tax is payable by the trustee in respect of the supply to the trustee of funeral services under the arrangement. 
  
  ### Idem
  
  (3) Where an arrangement for funeral services in respect of an individual is entered into in writing at any time before September 1990 and, at that time, it is reasonable to expect that all or a part of the consideration for the supply of the funeral services will be paid before the individual’s death, no tax is payable in respect of any supply of funeral services under the arrangement. 
  
  ### Lifetime memberships
  
  345 Notwithstanding subsections 341(1) to (3), where a supply of a membership is made 
  (a) to an individual for the lifetime of the individual, or 
  (b) to a person other than an individual for the lifetime of an individual designated by the person, to the extent that the total of all amounts that were paid after August 1990 and before 1991 as or on account of consideration for the supply exceeds 25% of the total consideration for the supply, the consideration shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991. 
  
  ### Transitional credit for small businesses
  
  346 (1) Where a person (other than a listed financial institution) is, in the particular fiscal quarter that is the first fiscal quarter of the person beginning in 1991, required to be registered under subsection 240(1) and the total of all consideration that in the particular fiscal quarter became due or was paid without having become due for taxable supplies made by the person in the course of a business does not exceed $500,000, 
  (a) where the reporting period of the person is a fiscal quarter or a fiscal month, the person may deduct the specified amount of the person in determining the person’s net tax for the last reporting period of the person ending in the particular fiscal quarter, or for any subsequent reporting period of the person ending in 1991, the return under Division V for which is filed before 1993, and 
  (b) in any other case, the Minister shall pay a rebate to the person equal to the specified amount of the person, and, for the purposes of this subsection, where the total of all amounts each of which is the consideration that became due or that was paid without becoming due for a taxable supply made by a person in the course of a business in any three month period beginning in 1990 throughout which the person carried on business did not exceed $500,000, the total of all consideration that became due or that was paid without becoming due for taxable supplies made by the person in the course of the business in the first fiscal quarter of the person beginning in 1991 shall be deemed not to exceed $500,000. 
  
  ### Specified amount
  
  (2) For the purposes of subsection (1), the specified amount of a particular person is an amount equal to the lesser of 
  (a) the total of $300 and the lesser of 
  (i) $700, and 
  (ii) 2% of the total consideration that became due, or that was paid without becoming due, for taxable supplies made by the particular person in any fiscal quarter of the person beginning after 1989 and before April 1991 in excess of $15,000, and 
  (b) the amount by which $1,000 exceeds the total of all amounts each of which is an amount that was by reason of this section deducted by, or rebated to, a person who was associated with the particular person at the end of the first fiscal quarter of the particular person beginning after 1990. 
  
  ### Application for rebate
  
  (3) A rebate shall not be paid under paragraph (1)(b) to a person unless the person files an application for the rebate on or before the day on or before which the person is required under Division V to file a return for the first fiscal year of the person beginning after 1990. 
  
  ### Application of provisions
  
  (4) Sections 262 to 264 apply in respect of rebates paid or payable under this section as though they were paid or payable under Division VI. 
  
  ### Transitional credit for taxi businesses
  
  347 (1) Where a small supplier carrying on a taxi business is registered under Subdivision D of Division V before April 1991, the supplier may, in determining the net tax for 
  (a) where the reporting period of the supplier is a fiscal quarter or a fiscal month, each reporting period of the supplier that ends in 1991 on or after the last day of the first fiscal quarter of the supplier beginning in that year, and 
  (b) in any other case, the first reporting period of the supplier beginning after 1990, deduct the specified amount of the supplier for that reporting period, where that net tax would be a positive amount if it were determined without reference to this subsection and the return under Division V for that period is filed before 1993. 
  
  ### Specified amount
  
  (2) For the purposes of subsection (1), the specified amount of a supplier for a reporting period of the supplier is an amount equal to the lesser of 
  (a) the positive amount, if any, that would be the net tax for the period if that amount were determined without reference to that subsection, and 
  (b) the amount determined by the formula is $300, and is the total of all amounts each of which is an amount that, because of that subsection, was deducted in determining the net tax for a preceding reporting period of the supplier. 
  
  # DIVISION X 
  
  ## Transitional Provisions for Participating Provinces 
  
  # SUBDIVISION A 
  
  ## Interpretation 
  
  ### Definitions
  
  348 The definitions in this section apply in this Division.  
  *announcement date* for a participating province means  
  (a) October 23, 1996 in the case of Nova Scotia, New Brunswick or Newfoundland; and 
  (b) February 10, 1997 in the case of the Nova Scotia offshore area or the Newfoundland offshore area. ( date de publication)   
  *implementation date* for a participating province means April 1, 1997 in the case of Nova Scotia, New Brunswick, Newfoundland, the Nova Scotia offshore area or the Newfoundland offshore area. (date de mise en oeuvre)   
  *retail sales tax* means a general retail sales tax imposed under an Act of the legislature of a province at a percentage rate on all goods other than those specifically enumerated in that Act. (taxe de vente au détail)   
  *specified pre-implementation date* for a participating province means  
  (a) February 1, 1997 in the case of Nova Scotia, New Brunswick or Newfoundland; and 
  (b) February 10, 1997 in the case of the Nova Scotia offshore area or the Newfoundland offshore area. ( date de mise en oeuvre anticipée)  
  
  # SUBDIVISION B 
  
  ## Application 
  
  ### Real property
  
  349 (1) Subject to Subdivision C, where a province is a participating province, subsection 165(2) and the provisions of this Part (other than Division IX) relating to tax under that subsection apply to 
  (a) any supply by way of sale of real property made in that participating province where ownership and possession of the property are transferred on or after the implementation date for that province, 
  (b) any supply of real property made in a participating province by way of lease, licence or similar arrangement where all of the consideration for the supply becomes due or is paid, or is deemed to have become due or to have been paid, on or after the implementation date for that province and is not deemed to have become due or to have been paid before that day, and 
  (c) any supply of real property made in a participating province by way of lease, licence or similar arrangement where part of the consideration for the supply becomes due or is paid, or is deemed to have become due or been paid, on or after the implementation date for that province, except that tax is not payable under that subsection (otherwise than because of Subdivision C) in respect of any part of the consideration for a supply referred to in paragraph (c) that becomes due or is paid before that day and is not deemed to have become due or to have been paid on or after that day. 
  
  ### Personal property and services
  
  (2) Subject to Subdivision C, where a province is a participating province, subsection 165(2), section 218.1 and subsection 220.08(1) and the provisions of this Part (other than Division IX) relating to tax under that section or either of those subsections apply to 
  (a) any supply of 
  (i) personal property or a service made in that participating province, 
  (ii) tangible personal property made outside Canada to a person to whom the property is delivered or made available, or physical possession of the property is transferred, in a participating province, or 
  (iii) intangible personal property or a service made outside the participating provinces where the property or service is acquired for consumption, use or supply in that participating province where all of the consideration for the supply becomes due or is paid, or is deemed to have become due or to have been paid, on or after the implementation date for that province and is not deemed to have become due or to have been paid before that day, and 
  (b) any supply of 
  (i) personal property or a service made in that participating province, 
  (ii) tangible personal property made outside Canada to a person to whom the property is delivered or made available, or physical possession of the property is transferred, in a participating province, or 
  (iii) intangible personal property or a service made outside the participating provinces where the property or service is acquired for consumption, use or supply in that participating province where part of the consideration for the supply becomes due or is paid, or is deemed to have become due or to have been paid, on or after the implementation date for that province, except that tax is not payable under any of those provisions (otherwise than because of Subdivision C) in respect of any part of the consideration for a supply referred to in paragraph (b) that becomes due or is paid before that day and is not deemed to have become due or to have been paid on or after that day. 
  
  ### Imported goods
  
  (3) Subject to Subdivision C, where a province is a participating province, sections 212.1 and 220.07 and the provisions of this Part (other than Division IX) relating to tax under those sections apply to tangible personal property, a mobile home that is not affixed to land and a floating home imported by a person on or after the implementation date for that province and to such property that is imported by a person before that day and that is accounted for under subsection 32(1), (2) or (5) of the Customs Act on or after that day.  
  
  ### Tangible personal property brought into a participating province
  
  (4) Subject to Subdivision C, where a province is a participating province, subsections 220.05(1) and 220.06(1) and the provisions of this Part (other than Division IX) relating to tax under those subsections apply to tangible personal property, a mobile home that is not affixed to land and a floating home brought into that participating province on or after the implementation date for that province and to such property brought into that province before that day by a carrier where the property is delivered in the province to a consignee on or after that day. 
  
  # SUBDIVISION C 
  
  ## Transition 
  
  ### Transfer of real property before implementation
  
  350 Where a taxable supply by way of sale of real property is made in a participating province and ownership or possession of the property is transferred under the agreement for that supply to the recipient of the supply before the implementation date for that province, no tax is payable under subsection 165(2) in respect of the supply. 
  
  ### Transfer of single unit residential complex after implementation
  
  351 (1) Where 
  (a) a supply by way of sale of a single unit residential complex, or of a building or part of it in which a residential unit forming part of such a complex is located, is made in a participating province to an individual under an agreement in writing between the supplier and the individual entered into on or before the announcement date for that province, and 
  (b) in the case of a sale of the complex, ownership of it is not transferred to the individual under the agreement before the implementation date for that province and, in any case, possession of the complex is transferred to the individual under the agreement on or after that implementation date, the following rules apply: 
  (c) no tax is payable under subsection 165(2) in respect of the supply made under that agreement or in respect of any supply of the complex deemed under subsection 191(1) to have been made before, or as a consequence of, the transfer of possession of the complex to the individual under that agreement, and 
  (d) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the supplier in respect of 
  (i) the complex, the land included in the complex or an improvement thereto, or 
  (ii) any other property or service to the extent that it was acquired, imported or brought into a participating province by the supplier for consumption or use in making a supply of the complex. 
  
  ### Resupply of a single unit residential complex
  
  (2) If a supply referred to in paragraph (1)(a) of a residential complex or a building, or part of a building, forming part of a residential complex is made to a recipient who is a builder of the complex only because of paragraph (d) of the definition 
  *builder* in subsection 123(1),  
  (a) no tax is payable under subsection 165(2) in respect of any supply of the complex made by that builder or any successor in title other than 
  (i) a taxable supply made by way of lease, licence or similar arrangement, or 
  (ii) a taxable supply by way of sale made after either the builder or the successor has used the complex as capital property in a business of the builder or successor, substantially renovated the complex or made another supply by way of sale of the complex and subsequently reacquired it; and 
  (b) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the builder or successor in respect of any property or service to the extent that it was acquired, imported or brought into a participating province by the builder or successor for consumption or use in making a supply of the complex in respect of which tax under subsection 165(2) is not payable because of paragraph (a). 
  
  ### Transfer of residential condominium unit after implementation
  
  (3) Where 
  (a) a taxable supply by way of sale of a residential condominium unit is made in a participating province to a person under an agreement in writing between the supplier and the person entered into on or before the announcement date for that province, and 
  (b) ownership of the unit is not transferred to the person under the agreement before the implementation date for that province and possession thereof is transferred to the person under the agreement on or after that implementation date, the following rules apply: 
  (c) no tax is payable under subsection 165(2) in respect of the supply made under that agreement or in respect of any supply of the unit deemed under subsection 191(1) to have been made before possession thereof is transferred to the person under that agreement, and 
  (d) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the supplier in respect of 
  (i) the unit, the land included in the unit or an improvement thereto, or 
  (ii) any other property or service to the extent that it was acquired, imported or brought into a participating province by the supplier for consumption or use in making a supply of the unit. 
  
  ### Resupply of a residential condominium unit
  
  (4) Where a supply referred to in paragraph (3)(a) of a residential condominium unit is made to a recipient who is a builder of the unit only because of paragraph (d) of the definition 
  *builder* in subsection 123(1),  
  (a) no tax is payable under subsection 165(2) in respect of any supply of the unit made by that builder or any successor in title other than 
  (i) a taxable supply made by way of lease, licence or similar arrangement, or 
  (ii) a taxable supply by way of sale made after either the builder or the successor has used the unit as capital property in a business of the builder or successor, substantially renovated the unit or made another supply by way of sale of the unit and subsequently reacquired it; and 
  (b) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the builder or successor in respect of any property or service to the extent that it was acquired, imported or brought into a participating province by the builder or successor for consumption or use in making a supply of the unit in respect of which tax under subsection 165(2) is not payable because of paragraph (a). 
  
  ### Transfer of condominium complex after implementation
  
  (5) Where 
  (a) a taxable supply by way of sale of a condominium complex is made in a participating province to a person under an agreement in writing between the supplier and the person entered into on or before the announcement date for that province, and 
  (b) ownership and possession of the complex are not transferred to the person under the agreement before the implementation date, and 
  (c) at any time on or after the implementation date, ownership of the complex is transferred to the person under the agreement or the complex is registered as a condominium, the following rules apply: 
  (d) no tax is payable under subsection 165(2) in respect of the supply made under that agreement or in respect of any supply of any residential condominium unit located in the complex deemed under subsection 191(1) to have been made before ownership thereof is transferred to the person under that agreement, and 
  (e) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the supplier in respect of 
  (i) the complex, the land included in the complex or an improvement thereto, or 
  (ii) any other property or service to the extent that it was acquired, imported or brought into a participating province by the supplier for consumption or use in making a supply of the complex. 
  
  ### Resupply of condominium complex
  
  (6) Where a supply referred to in paragraph (5)(a) of a condominium complex is made to a recipient who is a builder of the complex only because of paragraph (d) of the definition 
  *builder* in subsection 123(1),  
  (a) no tax is payable under subsection 165(2) in respect of any supply of the complex or any residential condominium unit located in the complex made by that builder or any successor in title other than 
  (i) a taxable supply made by way of lease, licence or similar arrangement, 
  (ii) a taxable supply by way of sale of the condominium complex made after either the builder or the successor has used the complex as capital property in a business of the builder or successor, substantially renovated the complex or made another supply by way of sale of the complex and subsequently reacquired it, or 
  (iii) a taxable supply by way of sale of a residential condominium unit located in the complex made after either the builder or the successor has used the unit as capital property in a business of the builder or successor or made another supply by way of sale of the unit and subsequently reacquired it; and 
  (b) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the builder or successor in respect of any property or service to the extent that it was acquired, imported or brought into a participating province by the builder or successor for consumption or use in making a supply of the complex or the residential condominium unit located in the complex in respect of which tax under subsection 165(2) is not payable because of paragraph (a). 
  
  ### Transfer of residential condominium unit by limited partnership
  
  (7) Where 
  (a) an offering memorandum (within the meaning assigned by subsection 336(6)), in respect of an offer to sell interests in a limited partnership, is issued to prospective subscribers on or before the announcement date for a participating province, 
  (b) at the time the offering memorandum is issued, it is proposed that the limited partnership will exclusively engage in the activities of acquiring land in that province or a beneficial interest therein, constructing a condominium complex on the land, owning residential condominium units located in the complex and supplying those units by way of lease, licence or similar arrangement for the purpose of their occupancy by individuals as places of residence, 
  (c) the offering memorandum does not provide for an increase in the subscription prices (within the meaning assigned by subsection 336(6)) of the interests in the partnership because of a change in the application of taxes and those subscription prices are not increased after that day and before the offer to sell the interests expires, 
  (d) a particular interest in the limited partnership is transferred to a subscriber in accordance with the offering memorandum, 
  (e) the limited partnership, whether or not in concert with another person, 
  (i) acquires ownership of land in that province or a beneficial interest therein before the implementation date for that province, and 
  (ii) engages a person to construct a condominium complex on that land under agreements in writing entered into on or before the announcement date for that province or under agreements in writing entered into after that day that substantially conform with terms and conditions relating to those agreements as set out in the offering memorandum, 
  (f) the particular interest relates to a particular residential condominium unit that is owned by the limited partnership and is located in the condominium complex, and 
  (g) possession of the particular residential condominium unit is given on or after the implementation date for that province to a person under a lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence, the following rules apply: 
  (h) no tax is payable by the limited partnership under subsection 165(2) in respect of a supply made under an agreement referred to in paragraph (e), 
  (i) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the supplier in respect of any property or service to the extent that it was acquired, imported or brought into a participating province by the supplier for consumption or use in making the supply, 
  (j) no tax is payable by the limited partnership under subsection 165(2) in respect of a supply of any unit located in the complex deemed under subsection 191(1) to have been made, and 
  (k) no amount in respect of tax payable by the limited partnership under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the limited partnership in respect of 
  (i) any improvement to the land or complex, or 
  (ii) any other property or service to the extent that it was acquired, imported or brought into a participating province by the limited partnership for consumption or use in making a supply of the complex or a unit located in the complex. 
  
  ### Agreement for progress payments before implementation
  
  (8) Where a taxable supply is made in a participating province to an individual under an agreement in writing entered into on or before the announcement date for that province between the supplier and the individual to construct or substantially renovate a single unit residential complex, a residential condominium unit or a multiple unit residential complex that does not contain more than two residential units for use as the primary place of residence of the individual or another individual who is related to, or is the former spouse or common-law partner of, the individual, 
  (a) no tax is payable under subsection 165(2) in respect of the supply; and 
  (b) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the supplier in respect of any property or service to the extent that it was acquired, imported or brought into a participating province by the supplier for consumption or use in making the supply. 
  
  ## Property and Services 
  
  ### Transfer of personal property before implementation
  
  352 (1) If a taxable supply by way of sale of tangible personal property is made in a participating province to a person under an agreement in writing entered into before the implementation date for that province, to the extent that 
  (a) the property is delivered to the person before that date, or 
  (b) ownership of the property is transferred to the person before that implementation date, no tax is payable under subsection 165(2) in respect of any consideration for the supply of the property under the agreement. 
  
  ### Exercise of option to purchase
  
  (1.1) If a recipient of a supply of tangible personal property by way of lease, licence or similar arrangement exercises an option to purchase the property provided for under the arrangement and the supply by way of sale of the property is made in a participating province, and retail sales tax in respect of the sale became payable before the implementation date for the province or would have become payable if the property or the recipient, as the case may be, were not exempt from that tax, no tax under subsection 165(2) is payable in respect of the sale. 
  
  ### Imported taxable supply under pre-implementation date agreement
  
  (2) If an imported taxable supply (as defined in section 217) of tangible personal property is made, under an agreement in writing entered into before the implementation date for a participating province, to a person who is 
  (a) resident in that province, or 
  (b) a registrant to whom the property is delivered or made available, or physical possession of the property is transferred, in that province, and physical possession of the property is transferred to the person before the implementation date for that province, no tax is payable under subsection 218.1(1) in respect of any consideration for the supply of the property under the agreement. 
  
  ### No written agreement
  
  (3) Where a taxable supply by way of sale of tangible personal property (other than a supply to which subsection (1) applies) is made in a participating province to a person, to the extent that 
  (a) the property is delivered to the person before the implementation date for that province, or 
  (b) ownership of the property is transferred to the person before that implementation date, no tax is payable under subsection 165(2) in respect of any consideration for the supply that is paid or becomes due before the day that is four months after that implementation date. 
  
  ### Imported taxable supply
  
  (4) Where an imported taxable supply (within the meaning assigned by section 217) of tangible personal property (other than a supply to which subsection (2) applies) is made to a person who is 
  (a) resident in a participating province, or 
  (b) a registrant to whom the property is delivered or made available, or physical possession of the property is transferred, in a participating province, and physical possession of the property is transferred to the person before the implementation date for that province, no tax is payable under subsection 218.1(1) in respect of any consideration for the supply that is paid or becomes due before the day that is four months after that implementation date. 
  
  ### Continuous supplies
  
  (5) To the extent that consideration for a supply made in a participating province of electricity, natural gas, steam or any property or service that 
  (a) in the case of property, is delivered or made available, or 
  (b) in the case of a service, is performed or made available on a continuous basis by means of a wire, pipeline or other conduit is paid or becomes due before the day that is four months after the implementation date for that province, no tax is payable under subsection 165(2) in respect of the property or service delivered, performed or made available, as the case may be, to the recipient before the implementation date for that province. 
  
  ### Continuous supplies
  
  (6) To the extent that consideration for a taxable supply made in a participating province of electricity, natural gas, steam or any property or service that 
  (a) in the case of property, is delivered or made available, or 
  (b) in the case of a service, is performed or made available on a continuous basis by means of a wire, pipeline or other conduit becomes due on or after the day that is four months after the implementation date for that province, or is paid on or after that day without having become due, and at a time when the supplier is a registrant, subsection 165(2) applies to the supply in respect of that consideration regardless of when the property or service is delivered, performed or made available, as the case may be. 
  
  ### Payment before implementation for subscription
  
  (7) No tax is payable under subsection 165(2) or section 212.1 in respect of any consideration for a taxable supply made in a participating province of a subscription for newspapers, magazines or other publications published periodically that is paid before the implementation date for that province. 
  
  ### Prepayment after specified pre-implementation date for tangible personal property
  
  (8) If a taxable supply of tangible personal property by way of sale is made 
  (a) in a participating province, or 
  (b) outside Canada to a person to whom the property is delivered or made available, or physical possession of the property is transferred, in a participating province, any consideration (other than consideration referred to in subsection (7)) that becomes due, or is paid without having become due, on or after the specified pre-implementation date for that province and before the implementation date for that province for property that is not delivered to the recipient and ownership of which is not transferred to the recipient before that implementation date is deemed, for the purposes of applying subsection 165(2) or section 218.1 to the supply, as the case may require, to have become due on that implementation date and not to have been paid before that implementation date. 
  
  ### Prepayment before specified pre-implementation date for tangible personal property
  
  (9) Subject to subsections (5) and (7), where a taxable supply of tangible personal property is made by way of sale 
  (a) in a participating province by a registrant to a person who is not a consumer, or 
  (b) outside Canada to a person who is not a consumer and to whom either the property is delivered or made available, or physical possession of the property is transferred, in a participating province, ownership and possession of the property are not transferred to the person before the implementation date for that province and consideration for the supply becomes due or is paid without having become due after the announcement date for that province and before the specified pre-implementation date for that province, 
  (c) tax under subsection 165(2) or 218.1(1), as the case may require, is, notwithstanding subsection 218.1(2), payable in respect of that consideration if it would, but for that subsection, have been payable if the consideration had become due and been paid on the implementation date for the province, unless, in the case of tax under subsection 165(2), the property is acquired by the person for consumption, use or supply exclusively in commercial activities of the person and the person is neither a registrant that is a selected listed financial institution nor a registrant whose net tax is determined under section 225.1 or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations,  
  (d) where the person is a registrant whose return under section 238 for the reporting period that includes the implementation date for the province is required to be filed on a particular day before the day that is four months after that implementation date, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return, and 
  (e) where paragraph (d) does not apply, section 219 does not apply in respect of that tax and the person shall, before the day that is four months after that implementation date, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information. 
  
  ### Prepayments before specified pre-implementation date for services
  
  (10) Subject to subsections (5) and 356(1), 358(1) and 359(1), where a taxable supply of a service is made 
  (a) in a participating province by a registrant to a person who is not a consumer, or 
  (b) outside the participating provinces to a person who is resident in a participating province and who is not a consumer, and consideration became due or was paid without having become due after the announcement date for that province and before the specified pre-implementation date for that province for any part of the service that was not performed before the implementation date for that province, 
  (c) tax under subsection 165(2), 218.1(1) or 220.08(1), as the case may require, is, notwithstanding subsection 218.1(2) and section 220.04, payable in respect of that consideration if, but for subsection 218.1(2) and section 220.04, it would have been payable if the consideration had become due and been paid on the implementation date for the province and, in the case of tax under subsection 220.08(1), if section 1 of Part II of Schedule X did not apply, unless, in the case of tax under subsection 165(2) or 220.08(1), 
  (i) the person is neither a registrant that is a selected listed financial institution nor a registrant whose net tax is determined under section 225.1 or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations, and  
  (ii) the service is acquired by the person for consumption, use or supply exclusively in commercial activities of the person, 
  (d) where the person is a registrant whose return under section 238 for the reporting period that includes the implementation date for the province is required to be filed on a particular day before the day that is four months after that implementation date, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return, and 
  (e) where paragraph (d) does not apply, section 219 and subsection 220.09(1) do not apply in respect of that tax and the person shall, before the day that is four months after that implementation date, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information. 
  
  ### Tangible personal property returned after implementation
  
  (11) Where a person purchased tangible personal property in a participating province from a supplier before the implementation date for that province and, on or after that implementation date and before the day that is four months after that implementation date, the person returns the property to the supplier in exchange for other tangible personal property that the supplier supplies to the person in the province, 
  (a) if the consideration for the supply of the other property exceeds the consideration for the returned property, tax under subsection 165(2) in respect of the other property applies only on the excess amount; and 
  (b) if the consideration for the supply of the other property is less than or equal to the consideration for the returned property, no tax under subsection 165(2) is payable in respect of the supply of the other property. 
  
  ### Supply completed
  
  (12) Where all or part of the consideration for a taxable supply by way of sale of tangible personal property made in a participating province becomes due or is paid without having become due on or after the day that is four months after the implementation date for that province and ownership or possession of the property was transferred before that implementation date to the recipient under the agreement for the supply, 
  (a) where paragraph 168(3)(a) applies, ownership and possession of the property, and 
  (b) where paragraph 168(3)(b) applies, ownership of the property, is, for the purpose of determining when tax under subsection 165(2) becomes payable in respect of the supply, deemed to have been transferred to the recipient on the day that is four months after that implementation date. 
  
  ### Application
  
  (13) This section does not apply to a supply in a participating province to which section 353 applies. 
  
  ### Budget arrangements
  
  353 (1) Where a supply of property or a service (other than a subscription for newspapers, magazines or other publications published periodically) is made in a participating province and the consideration for the supply of the property or service delivered, performed or made available during any period beginning before the implementation date for that province and ending on or after that implementation date is paid by the recipient under a budget payment arrangement with a reconciliation of the payments to take place at or after the end of the period and before the day that is one year after that implementation date, at the time the supplier issues an invoice for the reconciliation of the payments, the supplier shall determine the positive or negative amount determined by the formula is the tax that would be payable under subsection 165(2) by the recipient for the part of the property or service supplied during the period that was delivered, performed or made available on or after that implementation date if the consideration therefor had become due and been paid on or after that implementation date; and is the total tax payable under subsection 165(2) by the recipient in respect of the supply of the property or service delivered, performed or made available during the period. 
  
  ### Collection of tax
  
  (2) Where the amount determined under subsection (1) in respect of a supply of property or a service is a positive amount and the supplier is a registrant, the supplier shall collect, and is deemed to have collected on the day the invoice for the reconciliation of payments is issued, that amount from the recipient as tax under subsection 165(2). 
  
  ### Refund of excess
  
  (3) Where the amount determined under subsection (1) in respect of a supply of property or a service is a negative amount and the supplier is a registrant, the supplier shall refund or credit that amount to the recipient and issue a credit note for that amount in accordance with section 232. 
  
  ### Continuous supply
  
  (4) Where a supply of property or a service, during any period for which the supplier issues an invoice for the supply, is made in a participating province on a continuous basis by means of a wire, pipeline or other conduit and, because of the method of recording the delivery of the property or the provision of the service, the time at which the property or a part thereof is delivered, or the time at which the service or a part thereof is provided, cannot reasonably be determined, an equal part of the whole of the property delivered, or of the whole of the service provided, in the period is deemed, for the purposes of this section, to have been delivered or provided, as the case may be, on each day of the period. 
  
  ### Prepayments of rent and royalties after specified pre-implementation date
  
  354 (1) Subject to subsection (4), where 
  (a) a taxable supply of property by way of lease, licence or similar arrangement is made 
  (i) in a participating province by a registrant to a person, or 
  (ii) outside the participating provinces to a person to whom the property is delivered or made available, or physical possession of the property is transferred, in a participating province, and 
  (b) consideration for the supply that is rent, royalty or a similar payment attributable to a period on or after the implementation date for that participating province became due on or after the specified pre-implementation date for that participating province and before the implementation date for that province or was paid on or after that specified pre-implementation date and before that implementation date without having become due, that consideration is deemed, for the purpose of applying subsection 165(2), 218.1(1) or 220.08(1) to the supply, as the case may require, to have become due on that implementation date and not to have been paid before that implementation date. 
  
  ### Prepayments of rent and royalties before specified pre-implementation date
  
  (2) Subject to subsection (4), where 
  (a) a taxable supply of property by way of lease, licence or similar arrangement is made 
  (i) in a participating province by a registrant to a person who is not a consumer, or 
  (ii) outside the participating provinces to a person who is not a consumer and to whom either the property is delivered or made available, or physical possession of the property is transferred, in a participating province, and 
  (b) consideration for the supply that is a rent, royalty or similar payment attributable to a period on or after the implementation date for that participating province became due after the announcement date for that participating province and before the specified pre-implementation date for that province or was paid after that announcement date and before that specified pre-implementation date without having become due, the following rules apply: 
  (c) tax under subsection 165(2), 218.1(1) or 220.08(1), as the case may require, is, notwithstanding subsection 218.1(2) and section 220.04, payable in respect of that consideration if, but for subsection 218.1(2) and section 220.04, it would have been payable if the consideration had become due and been paid on the implementation date for the province and, in the case of tax under subsection 220.08(1), if section 1 of Part II of Schedule X did not apply, unless, in the case of tax under subsection 165(2) or 220.08(1), 
  (i) the person is neither a registrant that is a selected listed financial institution nor a registrant whose net tax is determined under section 225.1 or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations, and  
  (ii) the property is acquired by the person for consumption, use or supply exclusively in commercial activities of the person, 
  (d) where the person is a registrant whose return under section 238 for the reporting period that includes the implementation date for the province is required to be filed on a particular day before the day that is four months after that implementation date, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return, and 
  (e) where paragraph (d) does not apply, section 219 and subsection 220.09(1) do not apply in respect of that tax and the person shall, before the day that is four months after that implementation date, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information. 
  
  ### Periods before implementation
  
  (3) Where a taxable supply of property by way of lease, licence or similar arrangement is made 
  (a) in a participating province to a person, or 
  (b) outside the participating provinces to a person to whom the property is delivered or made available, or physical possession of the property is transferred, in a participating province, no tax is payable under subsection 165(2), 218.1(1) or 220.08(1) in respect of the consideration for the supply that becomes due before the particular day that is four months after the implementation date for that participating province, or is paid before the particular day without having become due, to the extent that the consideration is rent, royalty or a similar payment attributable to a period before that implementation date. 
  
  ### Period including implementation date
  
  (4) Where a taxable supply of property by way of lease, licence or similar arrangement is made 
  (a) in a participating province to a person, or 
  (b) outside the participating provinces to a person to whom the property is delivered or made available, or physical possession of the property is transferred, in a participating province, no tax is payable under subsection 165(2), 218.1(1) or 220.08(1) in respect of consideration for the supply that is rent, royalty or a similar payment attributable to a period that begins before the implementation date for that participating province and ends before the day that is one month after the day immediately before that implementation date. 
  
  ### Exception
  
  (4.1) Subsection (4) does not apply in respect of consideration for a supply of property that is rent, royalty or a similar payment attributable to a period if the supplier supplies services in respect of that property for the same period and the consideration for the supply of the property and the consideration for the supply of the services is included in a single invoice. 
  
  ### Application
  
  (5) Subsections (1) to (4) do not apply in respect of payments of consideration for the use of, or the right to use, intangible personal property where the amount of the payment is not dependent on the amount of the use of or production from, or the profit from the use of or production from, the property. 
  
  ### Specified motor vehicle leases
  
  354.1 If 
  (a) a supply of a specified motor vehicle is made by way of lease, licence or similar arrangement for a lease interval (within the meaning of subsection 136.1(1)) under an agreement entered into before the implementation date for a participating province, 
  (b) used tangible personal property, or a leasehold interest in such property, (in this section referred to as the “trade-in”) is accepted by the supplier as full or partial consideration for the supply, 
  (c) the retail sales tax of the province would have been payable by the recipient in respect of that lease interval had the trade-in not been accepted and that tax not been suspended or repealed concurrent with the application to that supply of subsection 165(2) or 218.1(1), as the case may be, and 
  (d) the value of the consideration for the supply as otherwise determined under this Part exceeds the amount (in this section referred to as the “adjusted value”) that is the value, excluding the amount of any tax under this Part in respect of the supply, on which that retail sales tax in respect of that lease interval would have been calculated but for the suspension or repeal of that tax, for the purposes of subsection 165(2) or 218.1(1), as the case may be, the value of the consideration for the supply is deemed to be equal to the adjusted value. 
  
  ### Adjustments
  
  355 (1) Where a person pays tax under subsections 352(9) or (10) or 354(2) calculated on the consideration or a part thereof for a taxable supply and that consideration or part thereof is subsequently reduced, to the extent that the person did not claim, and is not, but for this section, entitled to claim, an input tax credit or a rebate in respect of the portion of the tax payable under subsection 165(2), 218.1(1) or 220.08(1) that was calculated on the amount by which the consideration or part thereof was reduced, that portion is deemed, for the purpose of determining a rebate under section 261, to be an amount that was not payable or remittable by the person. 
  
  ### Application
  
  (2) Subsection (1) does not apply in circumstances in which section 161 applies. 
  
  ### Services substantially all performed before implementation
  
  356 (1) Where a supply (other than a supply to which subsection (6) applies) of a service (other than a freight transportation service or a service that is the transportation of an individual) is made in a participating province, or is made outside the participating provinces to a person who is resident in a participating province, and all or substantially all of the service was performed before the implementation date for that participating province, no tax is payable under subsection 165(2), 218.1(1) or 220.08(1) in respect of any consideration for the supply that is paid or becomes due before the day that is four months after that implementation date. 
  
  ### Services partly performed before implementation
  
  (2) Where a supply (other than a supply to which subsection (6) applies) of a service (other than a freight transportation service or a service that is the transportation of an individual) is made in a participating province, or is made outside the participating provinces to a person who is resident in a participating province, and all or substantially all of the service was not performed before the implementation date for that province, no tax is payable under subsection 165(2), 218.1(1) or 220.08(1) in respect of any consideration for the supply that is paid or becomes due before the day that is four months after that implementation date to the extent that the consideration relates to any part of the service that was performed before that implementation date. 
  
  ### Pre-payments after specified pre-implementation date for services
  
  (3) Subject to subsections 351(8) and 352(5), where a taxable supply (other than a supply to which subsection (6) applies) of a service (other than a freight transportation service or a service that is the transportation of an individual) is made in a participating province, or is made outside the participating provinces to a person who is resident in a participating province, and any consideration for the supply becomes due, or is paid without having become due, on or after the specified pre-implementation date for that province and before the implementation date for that province, for any part of the service that was not performed before that implementation date, that consideration is deemed, for the purpose of applying subsection 165(2), section 218.1 or subsection 220.08(1), as the case may require, to the supply, to have become due on that implementation date and not to have been paid before that implementation date. 
  
  ### Memberships and admissions
  
  (4) For the purposes of this Division, a supply of a membership in a club, an organization or an association and a supply of an admission in respect of a place of amusement, a seminar, an activity or an event in a participating province are each deemed to be a supply of a service, but a supply of a right to acquire a membership in a club, an organization or an association is deemed to be a supply of property. 
  
  ### Admissions sold before announcement
  
  (5) Where a taxable supply of an admission to a dinner, ball, concert, show or like event in a participating province is made to a person on or before the announcement date for the participating province, 
  (a) no tax is payable under subsection 165(2) in respect of any supply of an admission to that event; and 
  (b) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the supplier in respect of any property or service to the extent that it was acquired, imported or brought into a participating province by the supplier for consumption or use in making supplies of those admissions or in holding that event. 
  
  ### Lifetime memberships
  
  (6) Where a supply of a membership for the lifetime of an individual is made in a participating province, or is made outside the participating provinces to a person who is resident in a participating province, and the total of all amounts that were paid after the announcement date for that province and before the implementation date for that province as consideration for the supply exceeds 25% of the total consideration for the supply, for the purpose of applying subsection 165(2), 218.1(1) or 220.08(1) to the supply, as the case may require, the excess amount is deemed to have become due on that implementation date and not to have been paid before that implementation date. 
  
  ### Combined supply
  
  (7) For the purpose of determining when tax under subsection 165(2) becomes payable in respect of a supply made in a participating province, where 
  (a) any combination of service, personal property or real property (each of which is in this subsection referred to as an “element”) is supplied in a participating province, 
  (b) the consideration for each element is not separately identified, and 
  (c) no tax would be payable under subsection 165(2) in respect of an element that is property, the ownership or possession of which is transferred to the recipient before the implementation date for that province, if that element were supplied separately, the element mentioned in paragraph (c) is deemed to have been supplied separately from all of the other elements. 
  
  ### Application
  
  (8) This section does not apply to a supply in respect of which section 353 applies. 
  
  ### Legal service performed before implementation
  
  357 (1) Where a supply of a legal service is made in a participating province, or is made outside the participating provinces to a person who is resident in a participating province, and the consideration for the supply does not become due under the agreement for the supply until allowed, directed or ordered by a court or until the completion or termination of the service provided by the supplier, no tax is payable under subsection 165(2), 218.1(1) or 220.08(1) in respect of that consideration to the extent that it relates to any part of the service that was performed before the implementation date for that province. 
  
  ### Service of representative, trustee, receiver or liquidator
  
  (2) Where 
  (a) a supply of 
  (i) a service of a personal representative in respect of the administration of an estate, or 
  (ii) a service of a trustee, receiver or liquidator is made in a participating province, or is made outside the participating provinces to a person who is resident in a participating province, and 
  (b) consideration for the supply does not become due 
  (i) in the case of the service of a personal representative, until it is approved by all beneficiaries of the estate or in accordance with the terms of the trust binding the personal representative, 
  (ii) in the case of the service of a trustee, until a date determined under the terms of the trust or an agreement in writing for the supply, or 
  (iii) in any case, until it is allowed, directed or ordered by a court, no tax is payable under subsection 165(2), 218.1(1) or 220.08(1) in respect of that consideration to the extent that it relates to any part of the service that was performed before the implementation date for that province. 
  
  ### Services performed before implementation
  
  (3) For the purposes of subsections (1) and (2), where substantially all of a service supplied in a participating province, or outside the participating provinces, to a person resident in a participating province, is performed before the implementation date for that province, all of the service is deemed to have been performed before that implementation date. 
  
  ### Transportation of individuals
  
  358 (1) Where a supply is made by a person in a participating province of a service that is the transportation of an individual (other than a service to which subsection (4) applies) and the service begins before the implementation date for that province, no tax is payable under subsection 165(2) in respect of any consideration, that is paid or becomes due before the day that is four months after the implementation date, for that supply or for a supply of a service provided by the person of transporting the individual’s baggage in connection with the transportation of the individual. 
  
  ### Transportation of individuals
  
  (2) Where any consideration for a supply made in a participating province of a service that is the transportation of an individual (other than a service to which subsection (4) applies) becomes due, or is paid without having become due, on or after the specified pre-implementation date for that province and before the implementation date for that province for any part of the service that was not performed before the implementation date for that province, for the purpose of applying subsection 165(2) to the supply, that consideration is deemed to have become due on that implementation date and not to have been paid before that implementation date. 
  
  ### Transportation pass within 30 days of implementation
  
  (3) No tax is payable under subsection 165(2) in respect of a supply made in a participating province by a person to an individual of a transportation pass that entitles the individual to transportation services, during a period beginning before the implementation date for that province and ending before the day that is one month after that implementation date, without payment of consideration by the individual each time a supply of a transportation service is made to the individual. 
  
  ### Transportation pass
  
  (4) Where a supply is made in a participating province by a person to an individual of a transportation pass that entitles the individual to transportation services, during a period beginning before the implementation date for that province and ending on or after the day that is one month after that implementation date, without payment of consideration by the individual each time a supply of a transportation service is made to the individual and consideration for the pass becomes due, or is paid without having become due, on or after the specified pre-implementation date for that province and before the day that is four months after the implementation date for that province, the part of the consideration for the pass determined by the formula is amount of the consideration for the pass, is the number of days in the period that are on or after that implementation date, and is the number of days in the period, is deemed, for the purpose of applying subsection 165(2) to the supply, to have become due on that implementation date and not to have been paid before that implementation date. 
  
  ### Freight transportation services
  
  359 (1) Where one or more carriers make a supply in a participating province of freight transportation services in respect of a continuous freight movement of tangible personal property and, before the implementation date for that province, the shipper of the property transfers possession of the property to the first carrier engaged in the continuous freight movement, no tax is payable under subsection 165(2) in respect of any consideration for the supply that is paid or becomes due before the day that is four months after that implementation date. 
  
  ### Freight transportation services after implementation
  
  (2) Where 
  (a) one or more carriers make a supply of freight transportation services in a participating province in respect of a continuous freight movement of tangible personal property, 
  (b) the shipper of the property does not transfer possession of the property before the implementation date for that province to the first carrier engaged in the continuous freight movement, and 
  (c) consideration for the supply is paid or becomes due on or after the specified pre-implementation date for that province and before that implementation date, that consideration is deemed, for the purpose of applying subsection 165(2) to the supply, to have become due on that implementation date and not to have been paid before that implementation date. 
  
  ### Interpretation
  
  (3) For the purposes of this section, 
  *continuous freight movement*, 
  *freight transportation service* and 
  *shipper* have the same meanings as in Part VII of Schedule VI.  
  
  ### Meaning of 
  *funeral services* 
  
  360 (1) In this section, 
  *funeral services* includes the provision of a coffin, a headstone or any other property relating to the funeral, burial or cremation of an individual that is provided under an arrangement for the provision of funeral services.  
  
  ### Funeral arrangements entered into before implementation
  
  (2) Where 
  (a) an arrangement to supply funeral services in respect of an individual is entered into in writing before the implementation date for a participating province, 
  (b) under the terms of the arrangement, the funds required to pay for the funeral services are held by a trustee who is responsible for acquiring funeral services in respect of the individual, and 
  (c) at the time the arrangement is entered into, it is reasonable to expect that all or a part of those funds will be advanced to the trustee before the individual’s death, no tax is payable by the trustee under subsection 165(2) in respect of the supply in that province of funeral services under the arrangement or under section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) in respect of funeral services supplied under the arrangement for consumption or use in that province. 
  
  ### Funeral arrangements entered into before implementation
  
  (3) Where an arrangement to supply funeral services in respect of an individual is entered into in writing at any time before the implementation date for a participating province and, at that time, it is reasonable to expect that all or a part of the consideration for the supply of the funeral services will be paid before the individual’s death, no tax is payable under subsection 165(2) in respect of the supply in that province of funeral services under the arrangement or under section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) in respect of funeral services supplied under the arrangement for consumption or use in that province. 
  
  ### Exclusive products held on implementation
  
  361 (1) Where before the implementation date for a participating province, when an approval of the Minister for the application of section 178.3 to a direct seller is in effect, the direct seller has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of a direct seller who is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect and the independent sales contractor holds, at the beginning of that day, the exclusive product for sale in a participating province, for the purpose of applying subsection 165(2) or 220.05(1), as the case may require, the direct seller is deemed to have made and the independent sales contractor is deemed to have received, on that implementation date, a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.3(1). 
  
  ### Exclusive products held on implementation
  
  (2) Where before the implementation date for a participating province, when an approval of the Minister for the application of section 178.4 to a distributor of a direct seller is in effect, the distributor has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of a direct seller who is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect and the independent sales contractor holds, at the beginning of that day, the exclusive product for sale in a participating province, for the purpose of applying subsection 165(2) or 220.05(1), as the case may require, the distributor is deemed to have made and the independent sales contractor is deemed to have received, on that implementation date, a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.4(1). 
  
  ### Definitions
  
  (3) In this section, 
  *direct seller*, 
  *distributor*, 
  *exclusive product* and 
  *independent sales contractor* have the meanings assigned by section 178.1.  
  
  # SUBDIVISION D 
  
  ## Special Cases 
  
  ### Definitions
  
  362 (1) In this section, 
  *Advisory Group*, 
  *Crossing* and 
  *Developer* have the meanings assigned by section 1 of the Northumberland Strait Crossing Act, S.N.B. 1993, c. N-8.1.  
  
  ### Construction of Northumberland Strait Crossing
  
  (2) No tax is payable under subsection 165(2) in respect of a supply of property or services that are acquired by the recipient of the supply for consumption or use exclusively in the construction of the Crossing. 
  
  ### Exemption certificate
  
  (3) Subsection (2) does not apply to a supply made to a recipient who is not the Developer unless the recipient provides the supplier with a valid exemption certificate in respect of the supply issued by the Advisory Group. 
  
  ### Instalment base following implementation
  
  363 (1) Notwithstanding subsection 237(2), where a registrant (other than a selected listed financial institution) to whom subsection 237(1) applies is resident in a participating province and a reporting period of the registrant begins during the calendar year in which the province becomes a participating province, for the purpose of determining the amount of instalment payments under subsection 237(1), if any, that become payable after the first fiscal quarter of the registrant beginning on or after the implementation date for the province, the registrant’s instalment base for the reporting period is equal to the lesser of 
  (a) the amount determined under paragraph 237(2)(a); and 
  (b) 200% of the amount determined under paragraph 237(2)(b). 
  
  ### Selected listed financial institutions — instalments in transitional year
  
  (2) Notwithstanding subsection 237(1), where a particular reporting period of a selected listed financial institution ends in a particular fiscal year ending in a taxation year of the financial institution and the particular fiscal year begins before April 1, 1997 and ends on or after that day, the instalment to be paid under that subsection within one month after the end of each fiscal quarter ending on or after that day in the particular reporting period is the amount determined under whichever of the following paragraphs the financial institution has elected in prescribed form to determine the instalments for those fiscal quarters under: 
  (a) the lesser of 
  (i) 1/4 of the amount determined under paragraph 237(2)(a), and 
  (ii) the amount determined by the formula is the total of all amounts, each of which is determined, for a participating province, by the formula is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1, is the lesser of the financial institution’s percentage for the participating province for the taxation year and the financial institution’s percentage for the participating province for the immediately preceding taxation year, each determined in accordance with the prescribed rules that apply to that financial institution, is the tax rate for the participating province, is 7%, is the number of days in the particular reporting period after March 1997, and is the number of fiscal quarters ending on or after April 1, 1997 and in the particular reporting period, and is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1; 
  (b) the amount determined by the formula is the total of all amounts, each of which is determined, for a participating province, by the formula is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1, is the financial institution’s percentage for the participating province for the immediately preceding taxation year, determined in accordance with the prescribed rules that apply to that financial institution, is the tax rate for the participating province, is 7%, is the number of days in the particular reporting period after March 1997, and is the number of fiscal quarters ending on or after April 1, 1997 and in the particular reporting period, and is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1; 
  (c) the lesser of 
  (i) 1/4 of the amount determined under paragraph 237(2)(a), and 
  (ii) the amount determined by the formula is the total of all amounts, each of which is determined, for a participating province, by the formula is the total of 
  (A) all tax (other than an amount of tax that is prescribed for the purposes of paragraph (a) of the description of A in subsection 225.2(2)) that became payable under any of subsection 165(1) and sections 212 and 218 by the financial institution during the particular reporting period or that was paid by the financial institution during the particular reporting period without having become payable, 
  (B) all amounts each of which is tax under subsection 165(1) in respect of a supply (other than a supply to which clause (C) applies) made by a person other than a selected listed financial institution to the financial institution that would, but for an election made under section 150, have become payable by the financial institution during the particular reporting period, and 
  (C) all amounts each of which is an amount, in respect of a supply made during the particular reporting period of property or a service to which the financial institution and another person have elected to have paragraph (c) of the description of A in subsection 225.2(2) apply, equal to tax calculated on the cost to the other person of supplying the property or service to the financial institution excluding any remuneration to employees of the other person, the cost of financial services and tax under this Part, is the total of 
  (A) all input tax credits (other than input tax credits in respect of an amount of tax that is prescribed for the purposes of paragraph (a) of the description of A in subsection 225.2(2)) of the financial institution for the particular reporting period or preceding reporting periods of the financial institution claimed by the financial institution in the return under Division V filed by the financial institution for the particular reporting period, and 
  (B) all amounts each of which would be an input tax credit of the financial institution for the particular reporting period of the financial institution in respect of property or a service if tax became payable during the particular reporting period in respect of the supply of the property or service equal to the amount included for the particular reporting period under clause (B) or (C) of the description of D in respect of the supply, is the lesser of the financial institution’s percentage for the participating province for the taxation year and the financial institution’s percentage for the participating province for the immediately preceding taxation year, each determined in accordance with the prescribed rules that apply to that financial institution, is the tax rate for the participating province, is 7%, is the number of days in the particular reporting period after March 1997, is the number of fiscal quarters ending on or after April 1, 1997 and in the particular reporting period, and is the total of 
  (A) all tax (other than an amount of tax that is prescribed for the purposes of paragraph (a) of the description of F in subsection 225.2(2)) under subsection 165(2) in respect of supplies made in the participating province to the financial institution or under section 212.1 in respect of goods imported by the financial institution for use in the participating province that became payable by the financial institution during the fiscal quarter or that was paid by the financial institution during the fiscal quarter without having become payable, and 
  (B) all amounts each of which is an amount, in respect of a supply made during the fiscal quarter of property or a service to which the financial institution and another person have elected to have paragraph (c) of the description of A in subsection 225.2(2) apply, equal to tax payable by the other person under any of subsection 165(2), 212.1, 218.1 or Division IV.1 that is included in the cost to the other person of supplying the property or service to the financial institution, is the total of all amounts that became collectible and all other amounts collected by the financial institution in the fiscal quarter as or on account of tax under subsection 165(2), and is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1; or 
  (d) the amount determined by the formula is the total of all amounts, each of which is determined, for a participating province, by the formula is the total of all amounts each of which is 
  (i) tax (other than an amount of tax that is prescribed for the purposes of paragraph (a) of the description of A in subsection 225.2(2)) that became payable under any of subsection 165(1) and sections 212 and 218 by the financial institution during a reporting period (in this paragraph referred to as the “earlier reporting period”) of the financial institution ending in the twelve-month period immediately preceding the particular reporting period or that was paid by the financial institution during the earlier reporting period without having become payable, 
  (ii) all amounts each of which is tax under subsection 165(1) in respect of a supply (other than a supply to which subparagraph (iii) applies) made by a person other than a selected listed financial institution to the financial institution that would, but for an election made under section 150, have become payable by the financial institution during the earlier reporting period, and 
  (iii) all amounts each of which is an amount, in respect of a supply made during the earlier reporting period of property or a service to which the financial institution and another person have elected to have paragraph (c) of the description of A in subsection 225.2(2) apply, equal to tax calculated on the cost to the other person of supplying the property or service to the financial institution excluding any remuneration to employees of the other person, the cost of financial services and tax under this Part, is the total of 
  (i) all input tax credits (other than input tax credits in respect of an amount of tax that is prescribed for the purposes of paragraph (a) of the description of A in subsection 225.2(2)) of the financial institution for the earlier reporting period or preceding reporting periods of the financial institution claimed by the financial institution in the return under Division V filed by the financial institution for the earlier reporting period, and 
  (ii) all amounts each of which would be an input tax credit of the financial institution for the earlier reporting period of the financial institution in respect of property or a service if tax became payable during the earlier reporting period in respect of the supply of the property or service equal to the amount included for the earlier reporting period under subparagraph (ii) or (iii) of the description of D in respect of the supply, is the financial institution’s percentage for the participating province for the immediately preceding taxation year, determined in accordance with the prescribed rules that apply to that financial institution, is the tax rate for the participating province, is 7%, is the number of days in the particular reporting period after March 1997, is the number of fiscal quarters ending on or after April 1, 1997 and in the particular reporting period, and is the total of 
  (i) all tax (other than an amount of tax that is prescribed for the purposes of paragraph (a) of the description of F in subsection 225.2(2)) under subsection 165(2) in respect of supplies made in the participating province to the financial institution or under section 212.1 in respect of goods imported by the financial institution for use in the participating province that became payable by the financial institution during the fiscal quarter or that was paid by the financial institution during the fiscal quarter without having become payable, and 
  (ii) all amounts each of which is an amount, in respect of a supply made during the fiscal quarter of property or a service to which the financial institution and another person have elected to have paragraph (c) of the description of A in subsection 225.2(2) apply, equal to tax payable the other person under any of subsection 165(2), 212.1, 218.1 or Division IV.1 that is included in the cost to the other person of supplying the property or service to the financial institution, is the total of all amounts that became collectible and all other amounts collected by the financial institution in the fiscal quarter as or on account of tax under subsection 165(2), and is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1. 
  
  ### Information requirements
  
  (3) For the purposes of this section, subsections 169(4) and (5) and 223(2) apply with respect to any amount that is included in the description of K in paragraphs (2)(c) and (d) as if that amount were an input tax credit. 
  
  ### Exclusions
  
  (4) No amount of tax paid or payable by a selected listed financial institution in respect of property or services acquired, imported or brought into a participating province otherwise than for consumption, use or supply in the course of an endeavour (as defined in subsection 141.01(1)) of the financial institution shall be included in determining the instalment to be paid by the institution under subsection (2). 
  
  ### Election for shorter reporting period
  
  363.1 Any person who, immediately before the implementation date for a participating province, is resident in that province and registered under Subdivision D of Division V may, subject to section 250, 
  (a) if the reporting period of the person immediately before that implementation date is a fiscal quarter, make an election under section 246 to have reporting periods that are fiscal months of the person to take effect, despite paragraph 246(1)(a), on the first day of any fiscal quarter of the person that begins before the day that is one year after that implementation date; and 
  (b) if the reporting period of the person immediately before that implementation date is a fiscal year, 
  (i) make an election under section 246 to have reporting periods that are fiscal months of the person to take effect, despite paragraph 246(1)(a), on the first day of any fiscal quarter of the person that begins before the day that is one year after that implementation date, or 
  (ii) make an election under section 247 to have reporting periods that are fiscal quarters of the person to take effect, despite paragraph 247(1)(a), on the first day of any fiscal quarter of the person that begins before the day that is one year after that implementation date. 
  
  ### Revocation of election for streamlined accounting
  
  363.2 (1) If a registrant who has made an election under subsection 227(1) that is in effect on the implementation date for a participating province is resident in that participating province immediately before that implementation date or has made supplies in that participating province in the one-year period ending immediately before that implementation date, the registrant may, despite paragraph 227(4.1)(a) but subject to paragraph 227(4.1)(b), revoke that election under subsection 227(4) with effect from 
  (a) if the reporting period of the registrant that includes that implementation date is a fiscal year of the registrant, the first day of any fiscal month of the registrant that begins before the day that is one year after that implementation date; and 
  (b) in any other case, the first day of any reporting period of the registrant that begins before the day that is one year after that implementation date. 
  
  ### New reporting period if election
  
  (2) If a registrant whose reporting period is a fiscal year revokes an election under subsection 227(4) 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 this Part, 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), each of those separate reporting periods is deemed to be a reporting period determined under subsection 248(3). 
  
  