Legislative and Regulatory Proposals Relating to the Goods and Services Tax/Harmonized Sales Tax

Part 1
Draft Amendments to the Excise Tax Act

1  (1)  The definition Agency in subsection 123(1) of the Excise Tax Act is repealed.
(2)  The definition credit union in subsection 123(1) of the Act is replaced by the following:
credit union has the meaning assigned by subsection 137(6) of the Income Tax Act and includes a corporation described in subparagraph (a)(i) of the definition deposit insurance corporation in subsection 137.1(5) of that Act; (caisse de crédit)
(3)  The definition coopérative in subsection 123(1) of the French version of the Act is replaced by the following:
coopérative S'entend d'une coopérative d'habitation ou de toute autre société coopérative, au sens du paragraphe 136(2) de la Loi de l'impôt sur le revenu. (cooperative corporation)
(4)  Paragraph (a) of the definition pension entity in subsection 123(1) of the Act is replaced by the following:
(a)  a trust governed by the pension plan,
(5)  Paragraph (a) of the definition pension plan in subsection 123(1) of the Act is replaced by the following:
(a)  that governs a trust,
(6)  Subsection 123(1) of the Act is amended by adding the following in alphabetical order:
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 described in 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
A/B
where
A 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
B 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)
(7)  Subsections (2) and (3) are deemed to have come into force on March 1, 1994.
(8)  Subsections (4) and (5) are deemed to have come into force on the day that is after Announcement Date.
(9)  The definition master pension entity in subsection 123(1) of the Act, as enacted by subsection (6), is deemed to have come into force on September 23, 2009.
(10)  The definition master pension factor in subsection 123(1) of the Act, as enacted by subsection (6), is deemed to have come into force on Announcement Date.
2  (1)  The Act is amended by adding the following after section 130:
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.
(2)  Subsection (1) is deemed to have come into force on the day that is after Announcement Date.
3  (1)  The portion of subsection 141.01(1.2) of the French version of the Act before paragraph (a) is replaced by the following:
Primes et subventions
(1.2)  Pour l'application du présent article, le montant d'aide — prime, subvention, prêt à remboursement conditionnel ou autre montant semblable — qu'un inscrit reçoit d'une des personnes suivantes et qui n'est pas la contrepartie d'une fourniture, mais qu'il est raisonnable de considérer comme étant accordé en vue de financer une activité de l'inscrit comportant la réalisation de fournitures taxables sans contrepartie, est réputé être la contrepartie de ces fournitures :
  
(2)  The portion of subsection 141.01(4) of the French version of the Act before paragraph (a) is replaced by the following:
Fournitures gratuites
(4)  Lorsqu'un fournisseur effectue, dans le cadre de son initiative, la fourniture taxable (appelée « fourniture gratuite » au présent paragraphe) d'un bien ou d'un service sans contrepartie ou pour une contrepartie symbolique et qu'il est raisonnable de considérer que la fourniture gratuite a pour objet notamment de faciliter, de favoriser ou de promouvoir soit une initiative, soit l'acquisition, la consommation ou l'utilisation d'autres biens ou services par une autre personne, les présomptions suivantes s'appliquent :
  
(3)  Subsections 141.01(6) and (7) of the French version of the Act are replaced by the following:
Présomption de faits ou de circonstances
(6)  Lorsqu'une présomption de faits ou de circonstances prévue par une disposition de la présente partie, sauf les paragraphes (2) à (4), s'applique à la condition qu'un bien ou un service soit, ou ait été, consommé ou utilisé, ou acquis, importé ou transféré dans une province participante pour consommation ou utilisation, dans une certaine mesure dans le cadre des activités, commerciales ou autres, d'une personne, ou hors de ce cadre, cette mesure est déterminée en conformité avec les paragraphes (2) ou (3) en vue d'établir si la condition est remplie. Toutefois, si cette condition est ainsi remplie et que les autres conditions d'application de la disposition sont réunies, la présomption prévue par cette disposition s'applique malgré les paragraphes (2) et (3).
  
Exception
(7)  Les dispositions de la présente partie portant que la contrepartie d'une fourniture est réputée ne pas en être une, qu'une fourniture est réputée effectuée sans contrepartie ou qu'une personne est réputée ne pas avoir effectué une fourniture ne s'appliquent pas aux paragraphes (1) à (4).
  
4  (1)  Paragraph 149(5)(a) of the Act is amended by adding the following after subparagraph (iv):
(iv.1)  a TFSA,
(2)  Paragraph 149(5)(a) of the Act is amended by adding the following after subparagraph (vi):
(vi.1)  a registered disability savings plan,
(3)  Subparagraph 149(5)(a)(xi) of the Act is repealed.
(4)  Paragraphs 149(5)(b) to (e) of the French version of the Act are replaced by the following:
b)  la société de placement, au sens de cette loi;
c)  la société de placement hypothécaire, au sens de cette loi;
d)  la société de placement à capital variable, au sens de cette loi;
e)  la société de placement appartenant à des non-résidents, au sens de cette loi;
(5)  Paragraph 149(5)(g) of the Act is replaced by the following:
(g)  a prescribed person or a person of a prescribed class.
(6)  Subsections (1) to (3) and (5) apply in respect of any taxation year of a person that begins after Announcement Date.
(7)  Subsection (4) is deemed to have come into force on March 1, 1994.
5  Subsection 155(1) of the French version of the Act is replaced by the following:
Fourniture entre personnes ayant un lien de dépendance
155  (1)  Pour l'application de la présente partie, les règles ci-après s'appliquent lorsque la fourniture d'un bien ou d'un service est effectuée entre personnes ayant entre elles un lien de dépendance, sans contrepartie ou pour une contrepartie inférieure à la juste valeur marchande du bien ou du service au moment de la fourniture, et que l'acquéreur n'est pas un inscrit qui acquiert le bien ou le service pour le consommer, l'utiliser ou le fournir exclusivement dans le cadre de ses activités commerciales :
a)  si la fourniture est effectuée sans contrepartie, la fourniture est réputée être effectuée pour une contrepartie, payée au moment de la fourniture, égale à la juste valeur marchande du bien ou du service à ce moment;
b)  si la fourniture est effectuée pour une contrepartie, la valeur de la contrepartie est réputée égale à la juste valeur marchande du bien ou du service au moment de la fourniture.
6  (1)  Section 157 of the Act is amended by adding the following after subsection (2):
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
A ≥ 90%
where
A 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.
  
(2)  Subsection 157(4) of the Act is replaced by the following:
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.
  
(3)  The portion of subsection 157(5) of the Act before paragraph (a) is replaced by the following:
Form of election and revocation
(5)  An election under subsection (2) or (2.1) and a revocation of an election under subsection (4) must
  
(4)  Subsections 157(6) to (10) of the Act are replaced by the following:
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
A < 90%
where
A 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.
  
(5)  Subsections (1) to (4) apply in respect of supplies made on or after Announcement Date.
7  The portion of subsection 167(1.1) of the French version of the Act before paragraph (a) is replaced by the following:
Effet du choix
(1.1)  Dans le cas où un fournisseur et un acquéreur font conjointement le choix prévu au paragraphe (1) et que ce dernier, s'il est un inscrit, présente le choix au ministre au plus tard le jour où il est tenu de produire aux termes de la section V la déclaration visant sa première période de déclaration au cours de laquelle une taxe serait, sans le présent paragraphe, devenue payable relativement à la fourniture d'un bien ou d'un service effectuée aux termes de la convention portant sur la fourniture de l'entreprise ou de la partie d'entreprise visée par le choix, ou à la date ultérieure fixée par le ministre sur demande de l'acquéreur, les règles suivantes s'appliquent :
  
8  Subsection 168(9) of the French version of the Act is replaced by the following:
Dépôt
(9)  Pour l'application du présent article, un dépôt (sauf celui afférent à une enveloppe ou un contenant auxquels l'article 137 s'applique), remboursable ou non, versé au titre d'une fourniture n'est considéré comme la contrepartie payée à ce titre que lorsque le fournisseur le considère ainsi.
  
9  (1)  The portion of subsection 172.1(1) of the Act before the first definition in that subsection is replaced by the following:
Definitions
172.1  (1)  The following definitions apply in this section and in section 172.2.
(2)  The definition excluded activity in subsection 172.1(1) of the Act is replaced by the following:
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)
(3)  Paragraphs (a) and (b) of the definition pension activity in subsection 172.1(1) of the Act are replaced by the following:
(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)
(4)  Paragraphs (a) to (c) of the definition specified supply in subsection 172.1(1) of the Act are replaced by the following:
(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)
(5)  Subsection 172.1(1) of the Act is amended by adding the following in alphabetical order:
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)
master pension group in respect of a particular person and another person means the group consisting 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)
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)
(6)  Paragraph 172.1(2)(a) of the Act is replaced by the following:
(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
(7)  The portion of subsection 172.1(4) of the Act before paragraph (a) is replaced by the following:
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,
  
(8)  The portion of subsection 172.1(5) of the Act before paragraph (a) is replaced by the following:
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:
  
(9)  Subparagraph 172.1(5)(d)(ii) of the Act is replaced by the following:
(ii)  to have paid tax in respect of that supply on that day equal to the amount determined by the formula
A - B
where
A 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
B 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
(10)  Section 172.1 of the Act is amended by adding the following after subsection (5):
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
A + B
where
A is the amount determined by the formula
C × D × E
where
C is the fair market value of the specified resource or part at the time it was acquired by the person,
D is the rate set out in subsection 165(1), and
E 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
B is the total of all amounts, each of which is determined for a participating province by the following formula
F × G × H
where
F is the amount determined for C,
G is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, and
H 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
A - B
where
A 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
B 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.
  
(11)  Subparagraph 172.1(6)(d)(ii) of the Act is replaced by the following:
(ii)  to have paid tax in respect of that supply on that day equal to the amount determined by the formula
A - B
where
A 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
B 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
(12)  Section 172.1 of the Act is amended by adding the following after subsection (6):
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
A + B
where
A is the amount determined by the formula
C × D × E
where
C 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,
D is the rate set out in subsection 165(1), and
E 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
B is the total of all amounts, each of which is determined for a participating province by the following formula
F × G × H
where
F is the amount determined for C,
G is the provincial factor in respect of the pension plan and the participating province for the particular fiscal year, and
H 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
A - B
where
A 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
B 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.
  
(13)  The portion of subsection 172.1(7) of the Act before paragraph (a) is replaced by the following:
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 (other than the establishment, management or administration of a master pension entity of the pension plan and the management or administration of assets in respect of the pension plan that are held by a master pension entity of the pension plan), if the employer resource is not an excluded resource of the person in respect of the pension plan and if subsection (6) does not apply to that consumption or use, the following rules apply:
  
(14)  The portion of subsection 172.1(7) of the Act before paragraph (a), as enacted by subsection (10), is replaced by the following:
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:
  
(15)  Paragraph 172.1(7)(d) of the Act is replaced by the following:
(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
A - B
where
A 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
B 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.
(16)  Section 172.1 of the Act is amended by adding the following after subsection (7):
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
A + B
where
A is the amount determined by the formula
C × D × E
where
C 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, and
D is the rate set out in subsection 165(1), and
E 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
B is the total of all amounts, each of which is determined for a participating province by the following formula
F × G × H
where
F is the amount determined for C,
G is the provincial factor in respect of the particular pension plan and the participating province for the particular fiscal year, and
H 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
A - B
where
A 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
B 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.
  
(17)  Subsection 172.1(8) of the Act is replaced by the following:
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.
  
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.
  
(18)  The portion of subsection 172.1(9) of the Act before the formula is replaced by the following:
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%:
  
(19)  Paragraphs (a) to (f) of the description of A in subsection 172.1(9) of the Act are replaced by the following:
(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;
(20)  Paragraph (b) of the description of B in subsection 172.1(9) of the Act is replaced by the following:
(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
(21)  Paragraph (b) of the description of C in subsection 172.1(9) of the Act is replaced by the following:
(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.
(22)  Paragraphs (a) to (d) of the description of A in subsection 172.1(10) of the Act are replaced by the following:
(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;
(23)  Paragraph (b) of the description of B in subsection 172.1(10) of the Act is replaced by the following:
(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
(24)  Paragraph (b) of the description of C in subsection 172.1(10) of the Act is replaced by the following:
(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.
(25)  Paragraphs 172.1(12)(b) and (c) of the Act are replaced by the following:
(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
(26)  Subsections (1), (3) and (4) and the definitions master pension group and specified resource, as enacted by subsection (5), are deemed to have come into force on Announcement Date.
(27)  Subsection (2) and the definitions defined benefits pension plan and defined contribution pension plan, as enacted by subsection (5), apply in respect of any fiscal year of a person that begins after Announcement Date.
(28)  Subsections (6) to (8), (10), (12), (14) and (16) to (25) apply in respect of fiscal years of a person beginning on or after Announcement Date.
(29)  Subsections (9) and (11) are deemed to have come into force on September 23, 2009, but do not apply
(a)  for the purposes of determining an input tax credit of a pension entity if the input tax credit is claimed in a return under Division V of Part IX of the Act for a reporting period of the pension entity that is filed on or before Announcement Date;
(b)  in respect of a tax adjustment note issued under subsection 232.01(3) or 232.02(2) of the Act on or before Announcement Date; and
(c)  for the purposes of determining the pension rebate amount, as defined in subsection 261.01(1) of the Act, of a pension entity for a claim period of the pension entity if
(i)  an application for a rebate under subsection 261.01(2) of the Act for the claim period is filed on or before Announcement Date, or
(ii)  an election made under subsection 261.01(9) of the Act for the claim period is filed on or before Announcement Date.
(30)  Subsection (13) applies in respect of any fiscal year of a person that begins on or after September 23, 2009 but before Announcement Date.
(31)  Subsection (15) is deemed to have come into force on September 23, 2009, but does not apply for the purposes of determining the pension rebate amount, as defined in subsection 261.01(1) of the Act, of a specified pension entity for a claim period of the specified pension entity if
(a)  an application for a rebate under subsection 261.01(2) of the Act for the claim period is filed on or before Announcement Date; or
(b)  an election made under subsection 261.01(9) of the Act for the claim period is filed on or before Announcement Date.
(32)  If, in assessing under section 296 of the Act the net tax for a reporting period of a person that is a participating employer of a pension plan, an amount was included in determining the net tax for the reporting period as an amount of tax in respect of an employer resource, as defined in subsection 172.1(1) of the Act, that was deemed to have been collected on a particular day in the reporting period by the person under paragraph 172.1(7)(b) of the Act and if, as a result of the application of subsection 172.1(7) of the Act, as amended by subsection (13), the amount is not deemed to have been collected by the person under that paragraph, then the person is entitled until the day that is one year after the day on which the Act enacting this section receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the amount is not deemed to have been collected by the particular person under that paragraph and, on receipt of the request and with all due dispatch,
(a)  the Minister must consider the request;
(b)  the Minister must under section 296 of the Act assess, reassess or make an additional assessment of the net tax for the reporting period, and of any interest, penalty or other obligation of the person, solely for the purpose of taking into account that the amount is not deemed to have been collected by the person under paragraph 172.1(7)(b) of the Act;
(c)  if a pension entity of the pension plan makes an election under subsection 261.01(5), (6) or (9) of the Act with a qualifying employer of the pension plan for the claim period (as those terms are defined in subsection 261.01(1) of the Act) of the pension entity that includes the particular day, if the qualifying employer deducts, in determining its net tax for a reporting period, an amount as all or part of a particular amount in respect of the employer resource that was deemed to have been paid by the pension entity under paragraph 172.1(7)(d) of the Act and if, as a result of the application of subsection 172.1(7) of the Act, as amended by subsection (13), the particular amount is not deemed to have been paid by the pension entity under that paragraph, then the Minister must under section 296 of the Act assess, reassess or make an additional assessment of the net tax for the reporting period, and of any interest, penalty or other obligation of the qualifying employer, solely for the purpose of taking into account that the particular amount is not deemed to have been paid by the pension entity under that paragraph; and
(d)  if, in assessing under section 297 of the Act the amount of a rebate under subsection 261.01(2) of the Act for a claim period (as defined in subsection 261.01(1) of the Act) of a pension entity, a particular amount was included in determining the pension rebate amount (as defined in subsection 261.01(1) of the Act) for the claim period as an amount in respect of the employer resource that was deemed to have been paid by the pension entity under paragraph 172.1(7)(d) and if, as a result of the application of subsection 172.1(7) of the Act, as amended by subsection (13), the particular amount is not deemed to have been paid by the pension entity under that paragraph, then the Minister must under sections 296 and 297 of the Act assess, reassess or make an additional assessment of the rebate, and of any interest, penalty or other obligation of the pension entity, solely for the purpose of taking into account that the particular amount was not deemed to have been paid by the pension entity under that paragraph.
10  (1)  The Act is amended by adding the following after section 172.1:
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
A × B
where
A 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
A1 - A2
where
A1 is the particular amount of tax, and
A2 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
B is the master pension factor in respect of the pension plan for the fiscal year of the master pension entity that includes that time.
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 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.
Form and filing of election
(5)  An election made under subsection (4) by a master pension entity and a pension entity is to
(a)  be made in prescribed form containing prescribed information;
(b)  set out the day on which the election is to come into effect; and
(c)  be filed with the Minister in prescribed manner before that day or any later day that the Minister may allow.
Cessation
(6)  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 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 comes into effect; and
(d)  the day on which the election is revoked jointly by the particular person and the other person.
Revocation
(7)  A master pension entity and a pension entity that have jointly made an election under subsection (4) may jointly revoke the election, effective on a particular day, by filing in prescribed manner with the Minister a notice of revocation in prescribed form containing prescribed information not later than the particular day or any later day that the Minister may allow.
(2)  Subsection (1) applies in respect of amounts of tax that become payable, or that are paid without having become payable, by a person on or after Announcement Date.
11  Paragraph 178(18)(c) of the French version of the Act is replaced by the following:
c)  la fourniture est effectuée sans contrepartie ou pour une contrepartie inférieure à la juste valeur marchande du bien ou du service,
12  Subparagraphs 178.3(4)(b)(ii) and (iii) of the French version of the Act are replaced by the following:
(ii)  fournit le produit à une personne autre qu'un entrepreneur indépendant du démarcheur pour une contrepartie non symbolique mais inférieure à son prix de vente au détail suggéré au moment donné et sur laquelle est calculée la taxe payée par la personne,
(iii)  fournit le produit à une personne autre qu'un entrepreneur indépendant du démarcheur sans contrepartie ou pour une contrepartie symbolique ou réserve le produit pour sa consommation ou son utilisation personnelles;
13  Subparagraphs 178.4(4)(b)(ii) and (iii) of the French version of the Act are replaced by the following:
(ii)  fournit le produit à une personne autre qu'un entrepreneur indépendant du démarcheur pour une contrepartie non symbolique mais inférieure à son prix de vente au détail suggéré au moment donné et sur laquelle est calculée la taxe payée par la personne,
(iii) fournit le produit à une personne autre qu'un entrepreneur indépendant du démarcheur sans contrepartie ou pour une contrepartie symbolique ou réserve le produit pour sa consommation ou son utilisation personnelles;
14  Paragraph 178.5(8)(a) of the French version of the Act is replaced by the following:
a)  la fourniture est effectuée sans contrepartie ou pour une contrepartie inférieure à la juste valeur marchande du bien ou du service;
15  Paragraph 178.6(5)(d) of the English version of the Act is replaced by the following:
(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
16  (1)  Subparagraph 179(1)(a)(i) of the Act is replaced by the following:
(i)  makes a taxable supply in Canada of tangible personal property by way of sale, or a taxable supply in Canada of a service of manufacturing or producing tangible personal property, to the non-resident person, or acquires physical possession of 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 property to the non-resident person, and
(2)  Paragraph 179(1)(c) of the Act is replaced by the following:
(c)  the registrant is deemed to have made a taxable supply in Canada of the property to the non-resident person and the non-resident person is deemed to have received that supply from the registrant,
(3)  Subparagraph 179(2)(a)(i) of the Act is replaced by the following:
(i)  makes a taxable supply in Canada of tangible personal property by way of sale, or a taxable supply in Canada of a service of manufacturing or producing tangible personal property, to the non-resident person, or acquires physical possession of 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 property to the non-resident person, and
(4)  Subsection 179(2) of the Act is amended by striking out "and" at the end of paragraph (b) and by replacing paragraph (c) with the following:
(b.1)  the consignee is acquiring physical possession of the property
(i)  as the recipient of a taxable supply of the property made by any 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 any non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the service, if the property
(A)  is incorporated or transformed into, attached to, or combined or assembled with, the other tangible personal property in the manufacture or production of the other tangible personal property, or
(B)  is directly consumed or expended in the manufacture or production of the other tangible personal property,
(iii)  if the 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 property to any non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the commercial service, 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 any non-resident person that is not registered under Subdivision D of Division V and is not a consumer of the commercial service, if the property
(A)  is incorporated into, attached to, or combined or assembled with, the other tangible personal property in the provision of the commercial service, or
(B)  is directly consumed or expended in the provision of the commercial service, and
(c)  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 property as the recipient of a supply referred to in subparagraph (b.1)(i) or for a purpose referred to in any of subparagraphs (b.1)(ii) to (iv), and
(iii)  acknowledges that the consignee, on taking physical possession of the property, 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 property, or
(B)  under this Part in respect of a supply, deemed under paragraph (1)(c) to have been made by the consignee, of the property or of the other tangible personal property referred to in either of subparagraphs (b.1)(ii) or (iv),
(5)  Section 179 of the Act is amended by adding the following after subsection (2):
Exception — certificate of registered owner
(2.1)  For the purposes of this Part, if
(a)  a registrant, under an agreement between the registrant and a non-resident person that is not registered under Subdivision D of Division V,
(i)  makes a taxable supply in Canada of tangible personal property by way of sale to the non-resident person,
(ii)  makes a taxable supply in Canada of a service of manufacturing or producing tangible personal property to the non-resident person, or
(iii)  acquires physical possession of 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 property to the non-resident person,
(b)  under the agreement, the registrant causes, at a particular time, physical possession of the property to be transferred, at a place in Canada, to a third person (in this subsection referred to as the consignee),
(c)  the non-resident person is not a consumer of the property or service supplied by the registrant under the agreement,
(d)  the consignee is not entitled, under subsection (2), to give to the registrant a certificate described in paragraph (2)(c) in respect of the transfer of physical possession of the property to the consignee,
(e)  either
(i)  the property is, immediately after the particular time, 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 property is, immediately after the particular time, property of the particular person, and
(D)  if the 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 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 property to the consignee before the particular time, the consignee takes possession of the 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 property to the consignee before the particular time and that the consignee took possession of the property at the particular time as the recipient of that taxable supply, and
(f)  if subparagraph (a)(i) applies, the property is delivered or made available to the particular person referred to in subparagraph (e)(i) or (ii), as the case may be, after the property is delivered or made available to the non-resident person under the agreement,
subsection (1) does not apply to a supply referred to in paragraph (a) and, except in the case of a supply of a service of shipping the property, any supply made by the registrant and referred to in that paragraph is deemed to have been made outside Canada.
  
(6)  Subparagraph 179(3)(a)(iii) of the Act is replaced by the following:
(iii)  acquires physical possession of 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 property to the non-resident person,
(7)  The portion of subsection 179(4) of the Act before paragraph (a) is replaced by the following:
Retention of possession
(4)  For the purposes of this section, section 180 and the definition imported taxable supply in section 217, if
  
(8)  Subparagraph 179(4)(b)(i) of the English version of the Act is replaced by the following:
(i)  transferring physical possession of the property to the non-resident person, a person (in this subsection referred to as a subsequent purchaser) that subsequently acquires ownership of the property or a person designated by the non-resident person or a subsequent purchaser,
(9)  Subparagraph 179(4)(b)(ii) of the Act is replaced by the following:
(ii)  making a taxable supply in Canada of a commercial service in respect of the property to the non-resident person or a subsequent purchaser, or
(10)  Paragraphs 179(4)(c) and (d) of the Act are replaced by the following:
(c)  if the particular registrant so retains physical possession of the property after that time,
(i)  the particular registrant is deemed to have, under the agreement referred to in paragraph (a), caused at that time physical possession of the property to be transferred, at a place in Canada, to another person that is a registrant,
(ii)  the other person referred to in subparagraph (i) is deemed to have given to the particular registrant a certificate described in paragraph (2)(c) in respect of that transfer of physical possession of the property,
(iii)  if subparagraph (b)(i) or (ii) applies, the particular registrant is deemed
(A)  except if clause (B) applies, to have acquired, at that time, physical possession of the property, under the agreement referred to in paragraph (a), for the purpose of making a taxable supply in Canada to the non-resident person of a commercial service in respect of the property that is not a storage service, or
(B)  if subparagraph (b)(ii) applies and the supply referred to in that subparagraph is to be made to the 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 commercial service referred to in that subparagraph, to have acquired, at that time, physical possession of the property, under the agreement for that supply, for the purpose referred to in that subparagraph, and
(iv)  if subparagraph (b)(iii) applies,
(A)  the particular registrant is deemed to have acquired physical possession of the property, as the recipient of the supply under the agreement referred to in that subparagraph, from another person that is a registrant and that has made a supply in Canada of the property by way of sale to a non-resident person,
(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 referred to in that subparagraph, 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)(c) in respect of that acquisition of physical possession of the property, and
(d)  if another registrant so retains physical possession of the property after that time,
(i)  if subparagraph (b)(i) or (ii) applies,
(A)  the particular registrant is deemed to have, under the agreement referred to in paragraph (a), caused at that time physical possession of the property to be transferred at a place in Canada to the other registrant, and
(B)  the other registrant is deemed
(I)  except if subclause (II) applies, to have acquired, at that time, physical possession of the property, under an agreement between the other registrant and the non-resident person, for the purpose of making a taxable supply in Canada to the non-resident person of a commercial service in respect of the property that is not a storage service, or
(II)  if subparagraph (b)(ii) applies and the supply referred to in that subparagraph is to be made to the 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 commercial service referred to in that subparagraph, to have acquired, at that time, physical possession of the property, under the agreement for that supply, for the purpose referred to in that subparagraph, and
(ii)  if subparagraph (b)(iii) applies,
(A)  the particular registrant is deemed to have, under the agreement referred to in paragraph (a), caused physical possession of the property to be transferred to the other registrant,
(B)  the other registrant is deemed to have acquired physical possession of the property from the particular registrant as the recipient of the supply under the agreement 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 property, at the time when, and at the place where, the property is delivered or made available to the other registrant under the agreement referred to in that subparagraph.
(11)  The portion of subsection 179(5) of the Act before paragraph (a) is replaced by the following:
Transfer of possession to bailee
(5)  For the purposes of this section, section 180 and the definition imported taxable supply in section 217, if a registrant at any time transfers physical possession of tangible personal property to a bailee solely for the purpose of storing or shipping the property and either
  
(12)  The portion of subsection 179(6) of the Act before paragraph (a) is replaced by the following:
Goods transferred to bailee by non-resident
(6)  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 the bailee
  
(13)  Section 179 of the Act, as amended by subsections (1) to (12), is replaced by the following:
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 takes 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 took 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 — 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.
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 sixty days after the day on which the transfer takes place, that use of the rolling stock is deemed to take place entirely outside Canada.
(14)  Subsections (1) to (3), (5) to (7), (11) and (12) apply in respect of supplies made after Announcement Date.
(15)  Subsections (4) and (8) to (10) apply in respect of
(a)  supplies made after Announcement Date; and
(b)  supplies made on or before Announcement Date in respect of which, on or before that day, an amount was charged, collected or remitted as or on account of tax under Part IX of the Act.
(16)  Subsection (13) applies in respect of supplies made after the day on which the Act implementing this section receives royal assent.
17  (1)  Subparagraph 180(a)(ii) of the Act is replaced by the following:
(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,
(2)  Subsection (1) applies in respect of supplies made after Announcement Date.
18  (1)  Paragraph 183(1)(b) of the French version of the Act is replaced by the following:
b)  pour l'application de la présente partie, sauf les articles 193 et 257, cette fourniture est réputée avoir été effectuée sans contrepartie;
(2)  Paragraph 183(10.1)(d) of the French version of the Act is replaced by the following:
d)  le rachat du bien est réputé en être une fourniture par vente effectuée sans contrepartie par l'acquéreur de la première fourniture au profit du débiteur;
19  Paragraph 184(1)(b) of the French version of the Act is replaced by the following:
b)  pour l'application de la présente partie, sauf les articles 193 et 257, cette fourniture est réputée avoir été effectuée sans contrepartie;
20  (1)  Paragraph (b) of the definition imported taxable supply in section 217 of the Act is replaced by the following:
(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 paragraph 13(7)(g) or (h) 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;
(2)  The definition imported taxable supply in section 217 of the Act is amended by adding the following after paragraph (b):
(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(2.1)(e)(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 paragraph 13(7)(g) or (h) 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;
(3)  Subparagraph (b.01)(i) of the definition imported taxable supply in section 217 of the Act, as enacted by subsection (2), is replaced by the following:
(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
(4)  Paragraph (b.1) of the definition imported taxable supply in section 217 of the Act is replaced by the following:
(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 paragraph 13(7)(g) or (h) 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;
(5)  Paragraph (f) of the definition permitted deduction in section 217 of the English version of the Act is replaced by the following:
(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;
(6)  Subsections (1), (3) and (4) apply in respect of supplies made after the day on which the Act implementing this section receives royal assent.
(7)  Subsection (2) applies in respect of supplies made after Announcement Date.
21  (1)  The portion of subsection 217.1(6) of the Act before paragraph (a) is replaced by the following:
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:
  
(2)  The portion of subsection 217.1(7) of the Act before paragraph (a) is replaced by the following:
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:
  
(3)  Subsections (1) and (2) apply in respect of any claim period of a person, as defined in subsection 259(1) of the Act, that begins on or after September 23, 2009.
(4)  If, in assessing under section 297 of the Act a rebate under subsection 261.01(2) of the Act for a claim period of a pension entity, one or more particular amounts were not included as eligible amounts, as defined in subsection 261.01(1) of the Act, for the claim period in determining the amount of the rebate and, as a result of the application of subsections (1) and (2), those particular amounts are eligible amounts for the claim period, the pension entity is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that those particular amounts are eligible amounts for the claim period and, on receipt of the request, the Minister must with all due dispatch
(a)  consider the request; and
(b)  under sections 296 and 297 of the Act assess, reassess or make an additional assessment of the rebate under subsection 261.01(2) of the Act for the claim period, and of any interest, penalty or other obligation of the person, solely for the purpose of taking into account that the particular amounts are eligible amounts for the claim period.
(5)  If, in assessing under section 296 of the Act the net tax for a reporting period of a qualifying employer, as defined in subsection 261.01(1) of the Act, of a pension plan that includes the day on which an election — made jointly under subsection 261.01(5), (6) or (9) of the Act by the qualifying employer and a pension entity of the pension plan — is filed with the Minister of National Revenue, an amount was not deducted under any of subsections 261.01(5), (6) and (9) of the Act and, as a result of the application of subsections (1) and (2), the amount may be deducted under any of subsections 261.01(5), (6) and (9) of the Act in determining the net tax for the reporting period, the qualifying employer is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the amount may be deducted under any of subsections 261.01(5), (6) and (9) of the Act in determining the net tax for the reporting period and, on receipt of the request, the Minister must with all due dispatch
(a)  consider the request; and
(b)  under section 296 of the Act assess, reassess or make an additional assessment of the net tax for the reporting period, and of any interest, penalty or other obligation of the qualifying employer, solely for the purpose of taking into account that the amount may be deducted under any of subsections 261.01(5), (6) and (9) of the Act in determining the net tax for the reporting period.
22  (1)  The portion of paragraph 218.1(1)(a) of the Act before the formula is replaced by the following:
(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
(2)  The description of C in paragraph 218.1(1)(a) of the Act is replaced by the following:
C 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
(3)  Subparagraph 218.1(1)(b)(ii) of the Act is replaced by the following:
(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
(4)  Clause (B) of the description of C in paragraph 218.1(1)(b) of the Act is replaced by the following:
(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.
(5)  The description of A2 in paragraph 218.1(1.2)(a) of the Act is replaced by the following:
A2  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
(6)  The description of B2 in paragraph 218.1(1.2)(a) of the Act is replaced by the following:
B2 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
(7)  The description of D in paragraph 218.1(1.2)(b) of the Act is replaced by the following:
D 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.
(8)  Subsections (1) to (4) apply in respect of any supply made after Announcement Date.
(9)  Subsections (5) to (7) apply in respect of any specified year of a person that ends after Announcement Date.
23  (1)  Subsection 220.05(3.1) of the Act is amended by striking out "or" at the end of paragraph (a) and by replacing paragraph (b) with the following:
(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.
(2)  Subsection (1) is deemed to have come into force on Announcement Date.
24  (1)  Subsection 220.08(1) of the Act is replaced by the following:
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.
(2)  Subsection 220.08(3.1) of the Act is amended by striking out "or" at the end of paragraph (a) and by replacing paragraph (b) with the following:
(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.
(3)  Subsection (1) applies in respect of any supply made after Announcement Date.
(4)  Subsection (2) is deemed to have come into force on Announcement Date.
25  (1)  The description of B in subsection 225.1(2) of the Act is amended by adding the following after paragraph (b):
(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,
(2)  Subsection (1) applies in respect of any reporting period of a person that ends on or after September 23, 2009.
(3)  If, in assessing under section 296 of the Act the net tax for a reporting period of a charity, an amount was not included in the total for B in subsection 225.1(2) of the Act and, as a result of the application of subsection (1), the amount is to be included in paragraph (b.1) of the description of B in subsection 225.1(2) of the Act in determining the net tax for the reporting period, the charity is entitled until the day that is one year after the day on which this Act receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that the amount is to be included in that paragraph in determining the net tax for the reporting period and, on receipt of the request, the Minister must with all due dispatch
(a)  consider the request; and
(b)  under section 296 of the Act assess, reassess or make an additional assessment of the net tax for the reporting period, and of any interest, penalty or other obligation of the charity, solely for the purpose of taking into account that the amount is to be included in paragraph (b.1) of the description of B in subsection 225.1(2) of the Act in determining the net tax for the reporting period.
26  (1)  Paragraph (c) of the description of A in subsection 225.2(2) of the Act is replaced by the following:
(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 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;
(2)  Paragraph (b) of the description of A in subsection 225.2(2) of the Act and paragraph (c) of that description, as enacted by subsection (1), are replaced by the following:
(b)  all amounts each of which is an amount — in respect of a supply that is made during the particular reporting period by another person (other than a prescribed person or a person of a prescribed class) to the financial institution of property or a service and to which subsection 150(1) applies (other than a supply to which paragraph (c) applies) — 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, and
(c)  all amounts each of which is tax under subsection 165(1) in respect of a supply to which the financial institution has elected under subsection (4) to have this paragraph apply that would, in the absence of the election made under section 150, have become payable by the financial institution during the particular reporting period;
(3)  Paragraph (b) of the description of F in subsection 225.2(2) of the Act is replaced by the following:
(b)  all amounts each of which is an amount — in respect of a supply that is made during the particular reporting period by another person (other than a prescribed person or a person of a prescribed class) to the financial institution of property or a service and to which subsection 150(1) applies (other than a supply to which paragraph (c) of the description of A applies) — 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
(4)  Subsection 225.2(4) of the Act is replaced by the following:
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 under this subsection 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)  The portion of subsection 225.2(6) of the Act before paragraph (a) is replaced by the following:
Effect 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
  
(6)  Paragraph 225.2(6)(b) of the Act is replaced by the following:
(b)  a day that the financial institution specifies in a notice of revocation in prescribed form containing prescribed information filed with the Minister in prescribed manner, which day is at least three hundred and sixty-five days after the day specified in the election made under subsection (4),
(7)  Section 225.2 of the Act is amended by adding the following after subsection (6):
Notice of election
(6.1)  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 the day on or before which the election is required to be filed with the Minister; 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.
  
(8)  Subsection (1) applies in respect of any reporting period of a person that ends on or after July 1, 2010.
(9)  Subsections (2) to (7) apply in respect of any reporting period of a person that begins on or after the day that is one year after the day on which the Act implementing this section receives royal assent.
(10)  Despite subsection 225.2(6) of the Act, an election made jointly under subsection 225.2(4) of the Act by a person and a selected listed financial institution in respect of supplies made by the person to the financial institution that is in effect on Announcement Date ceases to have effect on the earlier of
(a)  the day that the election would otherwise cease to have effect under subsection 225.2(6) of the Act, and
(b)  the first day of the first reporting period of the financial institution that begins on or after the day that is one year after the day on which the Act implementing this section receives royal assent.
27  (1)  Subsection 232.01(3) of the Act is replaced by the following:
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).
  
(2)  The description of A in paragraph 232.01(4)(a) of the Act is replaced by the following:
A 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
A1 × A2
where
A1 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
A2 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
(3)  The description of C in paragraph 232.01(4)(b) of the Act is replaced by the following:
C 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
C1 × C2
where
C1 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
C2 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
(4)  The portion of paragraph 232.01(5)(c) of the Act before the description of A is replaced by the following:
(c)  if any part of the amount of the deemed tax is an eligible amount of the pension entity for a particular claim period of the pension entity, if the pension entity is a qualifying pension entity on the last day of the particular claim period and if the pension entity files an application for a rebate under subsection 261.01(2) for the particular claim period, 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
A × B × (C/D) × (E/F)
where
(5)  The descriptions of E and F in paragraph 232.01(5)(c) of the Act are replaced by the following:
E is the amount of the rebate determined for the pension entity under subsection 261.01(2) for the particular claim period, and
F is the pension rebate amount of the pension entity for the particular claim period; and
(6)  The portion of paragraph 232.01(5)(d) of the Act before the formula is replaced by the following:
(d)  if any part of the amount of the deemed tax is an eligible amount of the pension entity for a claim period of the pension entity 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
(7)  The description of F in paragraph 232.01(5)(d) of the Act is replaced by the following:
F is the pension rebate amount of the pension entity for the claim period.
(8)  Subsections (1) to (3) are deemed to have come into force on Announcement Date.
(9)  Subsections (4) and (5) apply in respect of any claim period that ends after Announcement Date.
(10)  Subsections (6) and (7) apply in respect of any reporting period of a person for which the return under Division V of Part IX of the Act is filed after Announcement Date or is required under that Division to be filed on or before a day that is after Announcement Date.
28  (1)  Subsection 232.02(2) of the Act is replaced by the following:
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).
  
(2)  The description of A in paragraph 232.02(3)(a) of the Act is replaced by the following:
A 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
A1 × A2
where
A1 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
A2 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
(3)  The description of C in paragraph 232.02(3)(b) of the Act is replaced by the following:
C 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
C1 × C2
where
C1 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
C2 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
(4)  The portion of paragraph 232.02(4)(c) of the Act before the description of A is replaced by the following:
(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 an eligible amount of the pension entity, if the pension entity is a qualifying pension entity on the last day of the particular claim period and if the pension entity files an application for a rebate under subsection 261.01(2) for the particular claim period, 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
A × B × (C/D) × (E/F)
where
(5)  The descriptions of E and F in paragraph 232.02(4)(c) of the Act are replaced by the following:
E is the amount of the rebate determined for the pension entity under subsection 261.01(2) for the particular claim period, and
F is the pension rebate amount of the pension entity for the particular claim period; and
(6)  The portion of paragraph 232.02(4)(d) of the Act before the formula is replaced by the following:
(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 an eligible 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
(7)  The description of F in paragraph 232.02(4)(d) of the Act is replaced by the following:
F is the pension rebate amount of the pension entity for the claim period.
(8)  Subsections (1) to (3) are deemed to have come into force on Announcement Date.
(9)  Subsections (4) and (5) apply in respect of any claim period that ends after Announcement Date.
(10)  Subsections (6) and (7) apply in respect of any reporting period of a person for which the return under Division V of Part IX of the Act is filed after Announcement Date or is required under that Division to be filed on or before a day that is after Announcement Date.
29  (1)  The portion of subsection 235(1) of the French version of the Act before the formula is replaced by the following:
Taxe nette en cas de location de voiture de tourisme
235  (1)  Lorsque la taxe relative aux fournitures d'une voiture de tourisme, effectuées aux termes d'un bail, devient payable par un inscrit, ou est payée par lui sans être devenue payable, au cours de son année d'imposition, et que le total de la contrepartie des fournitures qui serait déductible dans le calcul du revenu de l'inscrit pour l'année pour l'application de la Loi de l'impôt sur le revenu s'il était un contribuable aux termes de cette loi et s'il n'était pas tenu compte de l'article 67.3 de cette loi, excède le montant, relatif à cette contrepartie, qui serait déductible dans le calcul du revenu de l'inscrit pour l'année pour l'application de cette loi s'il était un contribuable aux termes de cette loi et s'il n'était pas tenu compte de l'élément B des formules figurant aux alinéas 7307(1)b) et (3)b) du Règlement de l'impôt sur le revenu, le montant obtenu par la formule ci-après est ajouté dans le calcul de la taxe nette de l'inscrit pour la période de déclaration indiquée :
(2)  Subsection (1) applies in respect of reporting periods that end after November 27, 2006 and in respect of any reporting period that ends on or before that day unless
(a)  an amount was added pursuant to section 235 of the Act in determining the net tax for the reporting period;
(b)  the amount was determined on the basis that the capital cost of the passenger vehicle for the purposes of the Income Tax Act included federal and provincial sales tax; and
(c)  the return for the reporting period was filed under Division V of Part IX of the Act on or before that day.
30  Subsection 252.41(3) of the English version of the Act is replaced by the following:
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.
  
31  Paragraph 252.5(c) of the English version of the Act is replaced by the following:
(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
32  Subsection 254(6) of the English version of the Act is replaced by the following:
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.
  
33  Subsection 254.1(6) of the English version of the Act is replaced by the following:
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.
  
34  (1)  Paragraph (b) of the definition eligible amount in subsection 261.01(1) of the Act is replaced by the following:
(b)  is deemed to have been paid by the pension entity under section 172.1 or 172.2 during the claim period. (montant admissible)
(2)  Paragraph 261.01(8)(b) of the Act is replaced by the following:
(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;
(3)  Subsection (1) is deemed to have come into force on Announcement Date.
(4)  Subsection (2) applies in respect of any election made under subsection 261.01(5) or (6) of the Act other than an election that is filed on or before Announcement Date.
35  Subsection 261.31(7) of the English version of the Act is replaced by the following:
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.
  
36  (1)  The portion of paragraph 266(2)(d) of the English version of the Act before subparagraph (i) is replaced by the following:
(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
(2)  Subparagraph 266(2)(d)(iii) of the Act is replaced by the following:
(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;
37  (1)  The portion of subsection 267.1(3) of the English version of the Act before paragraph (a) is replaced by the following:
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
  
(2)  Paragraph 267.1(3)(b) of the Act is replaced by the following:
(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.
38  (1)  The portion of subsection 272.1(5) of the English version of the Act before paragraph (a) is replaced by the following:
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
  
(2)  Subparagraph 272.1(5)(a)(ii) of the Act is replaced by the following:
(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
39  Subsection 273.1(6) of the French version of the Act is replaced by the following:
Opérations entre personnes ayant un lien de dépendance
(6)  Lorsqu'il s'agit de déterminer le pourcentage de recettes d'exportation d'une personne donnée ou l'un des montants prévus aux paragraphes (2) à (5) relativement à des stocks finis d'une personne donnée ou à des produits de clients qui la concernent, dans le cas où une fourniture est effectuée sans contrepartie ou pour une contrepartie inférieure à la juste valeur marchande entre la personne donnée et une autre personne avec laquelle elle a un lien de dépendance et où tout ou partie de la contrepartie de la fourniture serait incluse dans le calcul du revenu tiré d'une entreprise de la personne donnée pour une année, la fourniture est réputée avoir été effectuée pour une contrepartie égale à la juste valeur marchande, et cette contrepartie est réputée être incluse dans le calcul du revenu en question.
  
40  The portion of subsection 289(3) of the Act before paragraph (a) is replaced by the following:
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
  
41  Subparagraph 304(5)(b)(iv) of the French version of the Act is repealed.
42  (1)  The portion of subsection 324(1) of the English version of the Act before paragraph (a) is replaced by the following:
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
(2)  Paragraphs 324(3)(a) to (c) of the English version of the Act are replaced by the following:
(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.
43  (1)  The portion of subsection 325(1) of the English version of the Act after paragraph (c) and before paragraph (d) is replaced by the following:
the transferee and transferor are jointly and severally, or solidarily, liable to pay under this Part an amount equal to the lesser of
(2)  Subsection 325(2) of the French version of the Act is replaced by the following:
Cotisation
(2)  Le ministre peut, en tout temps, établir une cotisation à l'égard d'un cessionnaire pour tout montant payable en application du présent article. Dès lors, les articles 296 à 311 s'appliquent, compte tenu des adaptations de circonstance.
  
(3)  The portion of subsection 325(3) of the Act before paragraph (b) is replaced by the following:
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
  
(4)  Paragraph 325(3)(b) of the English version of the Act is replaced by the following:
(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.
44  (1)  Subsections 335(6) and (7) of the Act are replaced by the following:
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.
  
(2)  Subsection 335(10) of the Act is replaced by the following:
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.
  
(3)  Subsection 335(10.1) of the French version of the Act is replaced by the following:
Date d'envoi d'un avis électronique
(10.1)  Pour l'application de la présente partie, tout avis ou autre communication concernant une personne qui est rendu disponible sous une forme électronique pouvant être lue ou perçue par une personne ou par un système informatique ou un dispositif semblable est présumé être envoyé à la personne, et être reçu par elle, à la date où un message électronique est envoyé — à l'adresse électronique la plus récente que la personne a fournie avant cette date au ministre pour l'application du présent paragraphe — pour l'informer qu'un avis ou une autre communication nécessitant son attention immédiate se trouve dans son compte électronique sécurisé. Un avis ou une autre communication est considéré comme étant rendu disponible s'il est affiché par le ministre sur le compte électronique sécurisé de la personne et si celle-ci a donné son autorisation pour que des avis ou d'autres communications soient rendus disponibles de cette manière et n'a pas retiré cette autorisation avant cette date selon les modalités fixées par le ministre.
  
45  (1)  The definition municipal transit service in section 1 of Part VI of Schedule V to the Act is replaced by the following:
municipal transit service means a public passenger transportation service (other than a charter service or a service that is part of a tour), or a right that exclusively entitles an individual to use the service, that is supplied by a transit authority;
(2)  The definition transit authority in section 1 of Part VI of Schedule V to the Act is replaced by the following:
transit authority means an entity that meets the following conditions:
(a)    the entity is
(i)    a division, department or agency of a government, municipality or school authority, the primary purpose of which is to supply public passenger transportation services, or
(ii)    a non-profit organization that
(A)    receives funding from a government, municipality or school authority to support the supply of public passenger transportation services, or
(B)    is established and operated for the purpose of providing public passenger transportation services to individuals with a disability, and
(b)    all or substantially all of the supplies made by the entity are
(i)    supplies of public passenger transportation services provided within a particular municipality and its environs, or
(ii)    supplies of rights for individuals to use public passenger transportation services referred to in subparagraph (i);
(3)  Subsections (1) and (2) apply to
(a)  any supply made after Announcement Date; and
(b)  any supply made on or before Announcement Date unless, on or before that day, an amount was charged, collected, or remitted in respect of the supply as or on account of tax under Part IX of the Act.
46  Paragraphs 20(f) to (i) of Part VI of Schedule V to the French version of the Act is replaced by the following:
f)    la fourniture de services qui consistent à donner des renseignements en vertu de la Loi sur la protection des renseignements personnels, de la Loi sur l'accès à l'information ou d'une loi provinciale semblable;
g)    la fourniture de services de police ou d'incendie effectuée au profit d'un gouvernement ou d'une municipalité, ou d'une commission ou autre organisme établi par ceux-ci;
h)    la fourniture de services de collecte des ordures, y compris les matières recyclables;
i)    la fourniture d'un droit de laisser des ordures à un lieu destiné à les recevoir.
47  (1)  Section 24 of Part VI of Schedule V to the Act is replaced by the following:
24.    A supply (other than a supply made to a transit authority) of
(a)    a municipal transit service;
(b)    a right that exclusively entitles an individual to use a public passenger transportation service (other than a charter service or a service that is part of a tour) that is operated by a transit authority;
(c)    a public passenger transportation service designated by the Minister to be a municipal transit service; or
(d)    a right that exclusively entitles an individual to use a public passenger transportation service referred to in paragraph (c).
24.1    A supply made to a particular transit authority of intangible personal property that is a right evidenced by a ticket, pass, voucher, or other similar physical or electronic media, if
(a)    the property exclusively entitles an individual to use a public passenger transportation service (other than a charter service or a service that is part of a tour) that is operated by another transit authority, or to use a public passenger transportation service designated by the Minister to be a municipal transit service under paragraph 24(c), and the particular transit authority acquires the property exclusively for the purpose of making a supply of the property; or
(b)    the property exclusively entitles an individual to use a public passenger transportation service (other than a charter service or a service that is part of a tour) that is operated by the particular transit authority and the particular transit authority previously supplied the property.
(2)  Subsection (1) applies to
(a)  any supply made after Announcement Date; and
(b)  any supply made on or before Announcement Date unless, on or before that day, an amount was charged, collected, or remitted in respect of the supply as or on account of tax under Part IX of the Act.
48  Section 26 of Part VI of Schedule V to the French version of the Act is replaced by the following:
26    Une fourniture, effectuée par un organisme à but non lucratif constitué principalement au profit d'une organisation syndicale, au profit d'un des organismes suivants ou une fourniture effectuée par un de ceux-ci au profit d'un tel organisme à but non lucratif :
a)    un syndicat, une association ou un organisme, visé aux alinéas 189a) à c) de la loi, qui est membre de l'organisme à but non lucratif ou y est affilié;
b)    un autre organisme à but non lucratif constitué principalement au profit d'une organisation syndicale.
49  Paragraph 3(b) of Schedule VII to the French version of the Act is replaced by the following:
b)    sont importés par une chambre de commerce, une association municipale, une association d'automobilistes ou un organisme semblable auxquels ils ont été fournis sans contrepartie, mis à part les frais d'expédition et de manutention.
50  Sections 5 and 5.1 of Schedule VII to the French version of the Act are replaced by the following:
5    Les produits importés par une personne, qui lui sont fournis par une personne non-résidente sans contrepartie, mis à part les frais de manutention et d'expédition, et qui sont des pièces de rechange ou des biens de remplacement visés par une garantie.
5.1    Les produits importés dans l'unique but de remplir une obligation, prévue par une garantie, de réparer ou de remplacer les produits défectueux, à condition que les produits de remplacement soient fournis sans contrepartie, mis à part les frais d'expédition et de manutention, et exportés sans être consommés ou utilisés au Canada, sauf dans la mesure qu'il est raisonnable de considérer comme nécessaire ou accessoire à leur transport.
51  Paragraph 12(b) of Part I of Schedule X to the French version of the Act is replaced by the following:
b)    par une chambre de commerce, une association municipale, une association d'automobilistes ou un organisme semblable auxquels ils ont été fournis sans contrepartie, mis à part les frais de manutention et d'expédition.
52  Section 14 of Part I of Schedule X to the French version of the Act is replaced by the following:
14    Les biens transférés dans une province participante par une personne, qui lui sont fournis sans contrepartie, mis à part les frais de manutention et d'expédition, et qui sont des pièces de rechange ou des biens de remplacement visés par une garantie.
53  The Act is amended by replacing "Agency" with "Canada Revenue Agency" in the following provisions:
(a)  subsection 276(1);
(b)  subsection 291(1);
(b.1)  subparagraph 295(5)(d)(ix);
(c)  subsection 303(3);
(d)  subsection 332(1); and
(e)  subsections 335(1) to (5) and (14).
54  The French version of the Act is amended by replacing "mandataire désigné" with "mandataire de la Couronne désigné" in the following provisions:
(a)  the definition mandataire désigné in subsection 123(1);
(b)  clause 200(4)(a)(i)(A);
(c)  subsection 209(2); and
(d)  paragraph 273(1.1)(a).
55  The references to "mandataire désigné" and "mandataire déterminé" are replaced by "mandataire de la Couronne désigné", with any necessary modifications, in the following portions of the French version of the Regulations made under Part IX of the Act:
(a)  in the Specified Crown Agents (GST/HST) Regulations,
(i)  the title, and
(ii)  section 1 and the heading before it; and
(b)  section 2.1 of the Public Service Body Rebate (GST/HST) Regulations.

Part 2
Draft Amendments to Various GST/HST Regulations

Division 1

Financial Services and Financial Institutions (GST/HST) Regulations

56  The heading before section 2 of the French version of the Financial Services and Financial Institutions (GST/HST) Regulations is replaced by the following:

Définition et interprétation

57  Section 2 of the Regulations is renumbered as subsection 2(1) and is amended by adding the following:
(2)  In these Regulations, the expressions employee life and health trust, registered disability savings plan, registered education savings plan, registered retirement income fund, registered retirement savings plan and TFSA have the same meanings as in subsection 248(1) of the Income Tax Act.
  
58  (1)  Subsection 3.1(1) of the Regulations is repealed.
(2)  Paragraph 3.1(2)(c) of the Regulations is replaced by the following:
(c)  if the person is a trust governed by a self-directed registered disability savings plan, a self-directed registered education savings plan, a self-directed registered retirement income fund, a self-directed registered retirement savings plan or a self-directed TFSA, the arranging for the issuance, renewal, variation or transfer of ownership of a financial instrument for the person.
59  The Regulations are amended by adding the following after section 4:

Prescribed Person for Paragraph 149(5)(g) of the Act

4.1  For the purposes of paragraph 149(5)(g) of the Act, an employee life and health trust is a prescribed person.
60  Sections 56 to 58 are deemed to have come into force on the day that is after Announcement Date.
61  Section 59 applies in respect of any taxation year of a person that begins after Announcement Date.
Division 2

Games of Chance (GST/HST) Regulations

62  Paragraph 3(l) of the Games of Chance (GST/HST) Regulations is replaced by the following:
(l)  the Nova Scotia Provincial Lotteries and Casino Corporation; and
63  Paragraph (a) of the definition fourniture de promotion in subsection 5(1) of the French version of the Regulations is replaced by the following:
a)  la fourniture d'un bien (sauf la fourniture par vente d'une immobilisation de l'administration) effectuée sans contrepartie ou pour une contrepartie symbolique;
64  Section 62 is deemed to have come into force on November 13, 2012.
Division 3

Amalgamations and Windings-Up Continuation (GST/HST) Regulations

65  The schedule to the Amalgamations and Windings-Up Continuation (GST/HST) Regulations is amended by adding the following in numerical order:
Section 273.2
66  Section 65 is deemed to have come into force on the day that is after Announcement Date.
Division 4

Offset of Taxes (GST/HST) Regulations

67  Section 3 of the Offset of Taxes (GST/HST) Regulations is replaced by the following:
3  These Regulations apply in respect of the tax required to be remitted under subsection 228(2) or (2.3) of the Act or paid under subsection 228(4) or Division IV or IV.1 of Part IX of the Act.
68  Section 67 applies in respect of any reporting period of a person that ends after Announcement Date and in respect of any amount that is required to be paid after that day.
Division 5

Streamlined Accounting (GST/HST) Regulations

69  Subsection 24(4) of the French version of the Streamlined Accounting (GST/HST) Regulations is replaced by the following:
(4)  Pour déterminer un montant en conformité avec la partie IV du présent règlement, sauf un montant de taxe nette qui, aux termes de ce règlement, est à déterminer en conformité avec le paragraphe 225(1) de la Loi, l'inscrit qui effectue, à un moment où un choix qu'il a fait est en vigueur, la fourniture taxable d'un bien ou d'un service au profit d'une personne avec laquelle il a un lien de dépendance, sans contrepartie ou pour une contrepartie inférieure à la juste valeur marchande du bien ou du service à ce moment, est réputé avoir effectué la fourniture pour une contrepartie, payée à ce moment, égale à cette juste valeur marchande; la taxe calculée sur cette contrepartie est réputée devenir percevable, et être perçue, à ce moment.
  
Division 6

Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations

70  (1)  The definition investment plan in subsection 1(1) of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations is replaced by the following:
investment plan means a person referred to in subparagraph 149(1)(a)(vi) or (ix) of the Act, other than
(a)  a trust governed by a registered retirement savings plan, a registered retirement income fund, a registered disability savings plan or a TFSA; or
(b)  a trust governed by a registered education savings plan if
(i)  the trust does not have more than one beneficiary at any one time, or
(ii)  each of the beneficiaries of the trust is connected to each living subscriber under the plan, or was connected to a deceased original subscriber under the plan, by blood relationship or adoption (within the meaning of subsection 251(6) of the Income Tax Act). (régime de placement)
(2)  Paragraph (h) of the definition distributed investment plan in subsection 1(1) of the Regulations is replaced by the following:
(h)  a unit trust that is not a trust described in any of subparagraphs 149(5)(a)(i) to (ix) and (xiii) of the Act. (régime de placement par répartition)
(3)  Paragraph (c) of the definition plan member in subsection 1(1) of the Regulations is replaced by the following:
(c)  in any other case, the deferred profit sharing plan, the employee benefit plan, the employee trust, the employees profit sharing plan, the registered education savings plan, the registered supplementary unemployment benefit plan or the retirement compensation arrangement, as the case may be, that governs the investment plan. (participant)
(4)  The definition specified resource in subsection 1(1) of the Regulations is replaced by the following:
specified resource has the same meaning as in subsection 172.1(1) of the Act. (ressource déterminée)
(5)  Subsection 1(1) of the Regulations is amended by adding the following in alphabetical order:
subscriber under a registered education savings plan has the meaning assigned by subsection 146.1(1) of the Income Tax Act. (souscripteur)
71  The portion of paragraph 3(a) of the Regulations before subparagraph (i) is replaced by the following:
(a)  if a financial institution is a bank or a credit union and if, at any time in a taxation year of the financial institution, the financial institution maintains a deposit or other similar account that is in the name of a person resident in a province or, at any time in that year, a loan that was made by the financial institution is outstanding and is secured by land situated in a province or, if not secured by land, is owing by a person resident in a province, the following rules apply:
72  Paragraph (b) of the description of A in subsection 7(1) of the Regulations is replaced by the following:
(b)  an amount of tax that the person would be deemed to have paid under any of subsections 172.1(5) to (7.1) of the Act during the reporting period, if the person were a selected listed financial institution throughout the reporting period, or
73  Section 8 of the Regulations is repealed.
74  Paragraph 24(1)(c) of the French version of the Regulations is replaced by the following:
c)  les remboursements de primes ou autres remboursements qu'elle a versés relativement aux annulations de police.
75  The heading before section 25 of the Regulations is replaced by the following:

Banks and Credit Unions

76  The portion of subsection 25(1) of the Regulations before paragraph (a) is replaced by the following:
Determination of percentage
25  (1)  If a selected listed financial institution is a bank or a credit union, the financial institution's percentage for a particular period and for a participating province in which the financial institution has a permanent establishment is 1/5 of the total of
77  (1)  The portion of subsection 35(1) of the Regulations before paragraph (a) is replaced by the following:
Percentage — defined contribution plans, profit sharing plans, RESPs and retirement compensation arrangements
35  (1)  If a selected listed financial institution is, in a particular period in which a fiscal year of the financial institution ends, an investment plan and a pension entity of a particular defined contribution pension plan (other than a pension entity described in section 38) or a private investment plan that is a trust governed by a particular deferred profit sharing plan, a particular employees profit sharing plan, a particular registered education savings plan or a particular retirement compensation arrangement, the financial institution's percentage for a participating province and for the particular period is
(2)  The portion of subsection 35(2) of the Regulations before paragraph (a) is replaced by the following:
Attribution of plan members to a participating province
(2)  For the purposes of subsection (1), if a selected listed financial institution is a pension entity of a particular pension plan or is a private investment plan that is a trust governed by a particular deferred profit sharing plan, a particular employees profit sharing plan, a particular registered education savings plan or a particular retirement compensation arrangement and if, for any attribution point in respect of the financial institution for a particular period in which a fiscal year of the financial institution ends, the total of all amounts — each of which is the total value, on the attribution point, of the assets of the particular plan or arrangement that are reasonably attributable to a plan member (in this subsection referred to as a "known member") of the financial institution in respect of which the financial institution knows, on December 31 of the calendar year in which the fiscal year ends, whether or not the plan member is resident in Canada on the attribution point and, in the case of plan members resident in Canada, the province in which the plan member is resident on the attribution point — is less than 50% of the total value, on the attribution point, of the assets of the particular plan or particular arrangement, the following rules apply:
  
78  (1)  Subparagraph (v) of the description of G1 in paragraph 46(a) of the Regulations is replaced by the following:
(v)  all amounts each of which is an amount, in respect of a supply made at any time during the particular reporting period of property or a service to which an election — made under section 150 of the Act by the financial institution and another person that is a selected listed financial institution at that time — applies (other than a supply to which an election made by the other person under subsection 225.2(4) of the Act applies), equal to tax payable by the financial institution under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act that is included in the cost to the financial institution of supplying the property or service to the other person, and
(2)  Clauses (vi)(A) and (B) of the description of G1 in paragraph 46(a) of the Regulations are replaced by the following:
(A)  the provincial component amount, within the meaning of section 232.01 of the Act, of a tax adjustment note issued under subsection 232.01(3) of the Act to the financial institution during the particular reporting period in respect of a specified resource if an amount in respect of a supply of all or part of the specified resource was included under paragraph (ii) or (iii) of the description of G12 in paragraph (b) for the particular reporting period or an earlier reporting period of the financial institution, or
(B)  the provincial component amount, within the meaning of section 232.02 of the Act, of a tax adjustment note issued under subsection 232.02(2) of the Act to the financial institution during the particular reporting period in respect of employer resources if an amount in respect of supplies of the employer resources was included under paragraph (iv) or (v) of the description of G12 in paragraph (b) for the particular reporting period or an earlier reporting period of the financial institution,
(3)  The description of G2 in paragraph 46(a) of the Regulations is amended by adding the following after subparagraph (iii):
(iii.1)  all amounts each of which is an amount that, during the particular reporting period, was rebated to the financial institution under section 261.01 of the Act, to the extent that the amount is in respect of tax that is deemed to have been paid by the financial institution under subsection 172.2(3) of the Act,
(4)  Subparagraph (vi) of the description of G2 in paragraph 46(a) of the Regulations is replaced by the following:
(vi)  all amounts, each of which is an amount of tax that became payable under any of subsection 165(1) and sections 212, 218 and 218.01 of the Act by the financial institution, if the tax is a cost to the financial institution of making a supply, the supply is made at any time during the particular reporting period to another person that is a selected listed financial institution at that time, an election made by the financial institution and the other person under section 150 of the Act applies to the supply and no election made by the other person under subsection 225.2(4) of the Act applies in respect of the supply,
(5)  Clauses (iii)(C) and (D) of the description of G3 in paragraph 46(a) of the Regulations are replaced by the following:
(C)  if a tax adjustment note is issued to the financial institution under subsection 232.01(3) of the Act in respect of all or part of a specified resource, if a supply of the specified resource or part is deemed for the purposes of section 232.01 of the Act to have been received by the financial institution under subparagraph 172.1(5)(d)(i) or (5.1)(d)(i) of the Act and if tax in respect of the supply is deemed for the purposes of section 232.01 of the Act to have been paid on a particular day under subparagraph 172.1(5)(d)(ii) or (5.1)(d)(ii) of the Act by the financial institution, an amount that the financial institution would be required by paragraph 232.01(5)(c) of the Act to pay during the particular reporting period to the Receiver General as a result of the issuance of the tax adjustment note if the financial institution were a selected listed financial institution on the particular day, or
(D)  if a tax adjustment note is issued to the financial institution under subsection 232.02(2) of the Act in respect of employer resources, if particular supplies (as referred to in subsection 232.02(4) of the Act) of those employer resources are deemed for the purposes of section 232.02 of the Act to have been received by the financial institution under subparagraph 172.1(6)(d)(i) or (6.1)(d)(i) of the Act and if tax in respect of each of the particular supplies is deemed for the purposes of section 232.02 of the Act to have been paid under subparagraph 172.1(6)(d)(ii) or (6.1)(d)(ii) of the Act by the financial institution, an amount that the financial institution would be required by paragraph 232.02(4)(c) of the Act to pay during the particular reporting period to the Receiver General as a result of the issuance of the tax adjustment note if the financial institution were a selected listed financial institution on the first day on which an amount of tax is deemed for the purposes of section 232.02 of the Act to have been paid in respect of the particular supplies,
(6)  Subparagraph (iv) of the description of G7 in paragraph 46(b) of the Regulations is replaced by the following:
(iv)  all amounts each of which is an amount of tax that the financial institution was deemed to have paid during the particular reporting period under any of subsections 172.1(5) to (7.1) of the Act,
(7)  Subparagraph (ii) of the description of G8 in paragraph 46(b) of the Regulations is replaced by the following:
(ii)  all amounts each of which would be, in the absence of an election made under section 150 of the Act by the financial institution and another person, an input tax credit of the financial institution for the particular reporting period in respect of a supply made at any time by the financial institution to the other person if an election made under subsection 225.2(4) of the Act by the other person applies to the supply and if tax under subsection 165(1) of the Act would have been payable in respect of the supply in the absence of the election made under section 150 of the Act,
(8)  Subparagraphs (iii) and (iv) of the description of G12 in paragraph 46(b) of the Regulations are replaced by the following:
(iii)  all amounts, each of which is an amount determined for B in the formula in paragraph 172.1(5.1)(c) of the Act in respect of a supply that the financial institution was deemed to have received during the particular reporting period under paragraph 172.1(5.1)(d) of the Act,
(iv)  all amounts, each of which is an amount determined for B in the formula in paragraph 172.1(6)(c) of the Act in respect of a supply that the financial institution was deemed to have received during the particular reporting period under paragraph 172.1(6)(d) of the Act,
(v)  all amounts, each of which is an amount determined for B in the formula in paragraph 172.1(6.1)(c) of the Act in respect of a supply that the financial institution was deemed to have received during the particular reporting period under paragraph 172.1(6.1)(d) of the Act,
(vi)  all amounts, each of which is an amount determined for B in the formula in paragraph 172.1(7)(c) of the Act in respect of a supply in respect of which the financial institution was deemed to have paid tax during the particular reporting period under paragraph 172.1(7)(d) of the Act, and
(vii)  all amounts, each of which is an amount determined for B in the formula in paragraph 172.1(7.1)(c) of the Act in respect of a supply in respect of which the financial institution was deemed to have paid tax during the particular reporting period under paragraph 172.1(7.1)(d) of the Act;
(9)  Clause (C) of the description of A in subparagraph (i) of the description of G19 in paragraph 46(d) of the Regulations is replaced by the following:
(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 an election made by the financial institution and another person under subsection 225.2(4) of the Act applies, equal to tax calculated at the rate set out in subsection 165(1) of the Act 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 Part IX of the Act multiplied by the specified extent of the property or service in respect of the specified class for the participating province and for the particular reporting period,
(10)  Clause (B) of the description of A in subparagraph (i) of the description of G19 in paragraph 46(d) of the Regulations and clause (C) of the description of A in that subparagraph, as enacted by subsection (4), are replaced by the following:
(B)  all amounts each of which is an amount, in respect of a supply (other than a supply to which clause (C) applies) made during the particular reporting period of property or a service to which an election made by the financial institution and another person under section 150 of the Act applies, equal to tax calculated at the rate set out in subsection 165(1) of the Act 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 Part IX of the Act multiplied by the specified extent of the property or service in respect of the specified class for the participating province and for the particular reporting period,
(C)  all amounts each of which is an amount of tax under subsection 165(1) of the Act in respect of a supply — to which an election made by the financial institution under subsection 225.2(4) of the Act applies — of property or a service made to the financial institution that, in the absence of an election under section 150 of the Act, would have become payable by the financial institution during the particular reporting period multiplied by the specified extent of the property or service in respect of the specified class for the participating province and for the particular reporting period,
79  (1)  Subparagraph (iii) of the description of A1 in subsection 48(1) of the Regulations is replaced by the following:
(iii)  all amounts each of which is an amount, in respect of a supply made on the particular day of property or a service to which an election made by the financial institution and another person under subsection (4) applies, 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, to the extent that the property or service was acquired for consumption, use or supply in the course of the activities relating to the series, as determined under section 51 of those Regulations,
(2)  Subparagraph (ii) of the description of A1 in subsection 48(1) of the Regulations and subparagraph (iii) of that description, as enacted by subsection (1), are replaced by the following:
(ii)  all amounts each of which is an amount, in respect of a supply (other than a supply to which subparagraph (iii) applies) made on the particular day of property or a service to which an election made by the financial institution and another person under section 150 applies, 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, to the extent that the property or service was acquired for consumption, use or supply in the course of the activities relating to the series, as determined under section 51 of those Regulations, and
(iii)  all amounts each of which is tax under subsection 165(1) in respect of a supply of property or a service to which an election made by the financial institution under subsection (4) applies that would, in the absence of the election made under section 150, have become payable by the financial institution on the particular day, to the extent that the property or service was acquired for consumption, use or supply in the course of the activities relating to the series, as determined under section 51 of those Regulations,
(3)  Subparagraph (iii) of the description of A4 in subsection 48(1) of the Regulations is replaced by the following:
(iii)  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 an election made by the financial institution and another person under subsection (4) applies, 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, to the extent that the property or service was acquired for consumption, use or supply in the course of the activities relating to the series, as determined under section 51 of those Regulations,
(4)  Subparagraph (ii) of the description of A4 in subsection 48(1) of the Regulations and subparagraph (iii) of that description, as enacted by subsection (3), are replaced by the following:
(ii)  all amounts each of which is an amount, in respect of a supply (other than a supply to which subparagraph (iii) applies) made during the particular reporting period of property or a service to which an election made by the financial institution and another person under section 150 applies, 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, to the extent that the property or service was acquired for consumption, use or supply in the course of the activities relating to the series, as determined under section 51 of those Regulations, and
(iii)  all amounts each of which is tax under subsection 165(1) in respect of a supply of property or a service to which an election made by the financial institution under subsection (4) applies that would, in the absence of the election made under section 150, have become payable by the financial institution during the particular reporting period, to the extent that the property or service was acquired for consumption, use or supply in the course of the activities relating to the series, as determined under section 51 of those Regulations,
(5)  Paragraph (b) of the description of D in subsection 48(1) of the Regulations is replaced by the following:
(b)  all amounts each of which is an amount, in respect of a supply made during the particular reporting period by another person to the financial institution of property or a service to which subsection 150(1) applies (other than a supply to which an election made by the financial institution under subsection (4) applies), 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
(6)  Paragraph (c) of the description of A1 in subsection 48(2) of the Regulations is replaced by the following:
(c)  all amounts each of which is an amount, in respect of a supply made on the particular day of property or a service to which an election made by the financial institution and another person under subsection (4) applies, 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,
(7)  Paragraph (b) of the description of A1 in subsection 48(2) of the Regulations and paragraph (c) of that description, as enacted by subsection (6), are replaced by the following:
(b)  all amounts each of which is an amount, in respect of a supply (other than a supply to which paragraph (c) applies) made on the particular day of property or a service to which an election made by the financial institution and another person under section 150 applies, 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, and
(c)  all amounts each of which is tax under subsection 165(1) in respect of a supply of property or a service to which an election made by the financial institution under subsection (4) applies that would, in the absence of the election made under section 150, have become payable by the financial institution on the particular day,
(8)  Paragraph (b) of the description of D in subsection 48(2) of the Regulations is replaced by the following:
(b)  all amounts each of which is an amount, in respect of a supply made during the particular reporting period by another person to the financial institution of property or a service to which subsection 150(1) applies (other than a supply to which an election made by the financial institution under subsection (4) applies), 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
80  Paragraph 52(2)(b) of the Regulations is replaced by the following:
(b)  trusts governed by the same deferred profit sharing plan, employee benefit plan, employee trust, employees profit sharing plan, registered education savings plan, registered supplementary unemployment benefit plan or retirement compensation arrangement;
81  The Regulations are amended by adding the following after section 70:
Investment plans — 149(1)(o.2) of Income Tax Act
70.1  If an investment plan is a corporation (other than a pension entity) that is exempt from tax under the Income Tax Act by reason of paragraph 149(1)(o.2) of that Act and if, for a reporting period of the investment plan throughout which the investment plan was a selected listed financial institution and for which a return was filed on or after July 1, 2010 but before May 8, 2013, the investment plan reported in the return for the reporting period an amount on account of net tax that was determined as though section 23 applied in respect of the reporting period, the investment plan may elect in prescribed form containing prescribed information to have that section apply, and to have paragraph 3(e) and sections 29 to 34 not apply, in respect of all reporting periods of the investment plan for which a return was filed on or after July 1, 2010 but before May 8, 2013.
82  (1)  Subsections 70(1), (3) and (5) and sections 77 and 80 apply in respect of
(a)  any reporting period of a person that begins on or after Announcement Date; and
(b)  any reporting period of a person that begins before Announcement Date and ends on or after July 1, 2010, if
(i)  the person is a trust governed by a registered education savings plan,
(ii)  the person reported in the return for each of those reporting periods an amount on account of net tax that was determined as though
(A)  the person were a selected listed financial institution throughout those reporting periods, and
(B)  section 35 of the Regulations applied in respect of those reporting periods, and
(iii)  the person elects to have subsections 70(1), (3) and (5) and sections 77 and 80 apply in respect of those reporting periods.
(2)  For the purposes of applying paragraph (1)(b), paragraph (a) of the definition investment plan in subsection 1(1) of Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations, as enacted by subsection 70(1), is to be read as follows:
(a)  a trust governed by a registered retirement savings plan or a registered retirement income fund; or
83  Subsections 70(2), 78(9) and 79(1), (3) and (6) apply in respect of any reporting period of a person that ends on or after July 1, 2010.
84  Subsection 70(4) and section 72 are deemed to have come into force on Announcement Date.
85  Sections 71 and 76 apply in respect of any reporting period of a person that begins after Announcement Date.
86  Section 73 applies in respect of any taxation year of a person that begins after Announcement Date.
87  Section 75 is deemed to have come into force on the day that is after Announcement Date.
88  Subsections 78(1), (4), (7) and (10) and 79(2), (4), (5), (7) and (8) apply in respect of any reporting period of a person that begins on or after the day that is one year after the day on which the legislation enacting the proposal released on Announcement Date to amend subsection 225.2(4) of the Act receives royal assent.
89  Subsections 78(2), (3), (5), (6) and (8) apply in respect of any reporting period of a person that ends after Announcement Date.
Division 7

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

90  The heading before section 1 of the French version of the New Harmonized Value-added Tax System Regulations, No. 2 is replaced by the following:
Définitions et interprétation
91  (1)  Section 1 of the Regulations is renumbered as subsection 1(1).
(2)  The definition provincial investment plan in subsection 1(1) of the Regulations is replaced by the following:
provincial investment plan for a particular province at any time means an investment plan
(a)  that is at that time a financial institution described in section 11 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations, the units of which are permitted, under the laws of Canada or a province, to be sold only in the particular province;
(b)  that is at that time a stratified investment plan, all the series of which are provincial series for the particular province; or
(c)  that meets the following criteria:
(i)  the investment plan has, throughout the taxation year in which the fiscal year of the investment plan that includes that time ends, a permanent establishment in the particular province, as determined in accordance with section 3 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations, and
(ii)  the investment plan does not have, throughout that taxation year, a permanent establishment in a province other than the particular province, as determined in accordance with section 3 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations. (régime de placement provincial)
(3)  Subsection 1(1) of the Regulations is amended by adding the following in alphabetical order:
imported taxable supply has the same meaning as in section 217 of the Act. (fourniture taxable importée)
provincial stratified investment plan means a stratified investment plan (other than a provincial investment plan) with one or more provincial series. (régime de placement stratifié provincial)
series has the same meaning as in subsection 1(1) of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations. (série)
(4)  Section 1 of the Regulations is amended by adding the following after subsection (1):
Application of definitions to adaptations
(2)  For greater certainty, the definitions in this section apply in subsections 218.1(1) and (1.2), 220.07(1) to (4) and 220.08(1) of the Act as adapted by these Regulations.
  
92  Subsections 2(3) and (4) of the Regulations are repealed.
93  Sections 7 to 7.02 of the Regulations are replaced by the following:
Prescribed extent — paragraph 218.1(1)(a) of Act
7  For the purposes of paragraph 218.1(1)(a) of the Act, the prescribed extent is an extent of at least 10%.
Adaptation — subsection 218.1(1) of Act
7.01  If a person is the recipient of an imported taxable supply of property or a service and the person is a provincial investment plan or provincial stratified investment plan at the time an amount of consideration for the supply becomes due or is paid without having become due, subsection 218.1(1) of the Act is adapted in respect of the amount of consideration for the supply as follows:
218.1  (1)  Subject to this Part,
(a)  every person that is the recipient of an imported taxable supply of intangible personal property or a service and that is a provincial investment plan or provincial stratified investment plan at the time an amount of consideration for the supply becomes due or is paid without having become due must, for that amount of consideration 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
A × B × C
where
A is the tax rate for the participating province,
B is the value of that consideration that is paid or becomes due at that time, and
C is
(i)  in the case of a provincial stratified investment plan, the total of all amounts, each of which is the extent (expressed as a percentage) to which the property or service was acquired for consumption, use or supply in the course of activities relating to a provincial series of the person for the participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,
(ii)  in the case of a provincial investment plan for the participating province, 100%, and
(iii)  in the case of a provincial investment plan for a province other than the participating province, 0%; and
(b)  every person
(i)  that is a registrant and is the recipient of a supply of property included in paragraph (b) of the definition imported taxable supply in section 217, or
(ii)  that is the recipient of a supply of property included in any of paragraphs (b.01) to (b.3) or (c.1) to (e) of the definition imported taxable supply in section 217
and that is a provincial investment plan or a provincial stratified investment plan at the time an amount of consideration for the supply becomes due or is paid without having become due shall, for that amount of consideration 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
A × B × C
where
A is the tax rate for the participating province,
B is the value of that consideration that is paid or becomes due at that time, and
C is
(i)  in the case of a provincial stratified investment plan, the total of all amounts, each of which is the extent (expressed as a percentage) to which the property was acquired for consumption, use or supply in the course of activities relating to a provincial series of the person for the participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,
(ii)  in the case of a provincial investment plan for the participating province, 100%, and
(iii)  in the case of a provincial investment plan for a province other than the participating province, 0%.
Non-application — paragraph 218.1(1)(a) of Act
7.02  Paragraph 218.1(1)(a) of the Act does not apply in respect of an amount of consideration for an imported taxable supply of intangible personal property or a service made to a person if
(a)  the person is a provincial stratified investment plan at the time the amount of consideration becomes due or is paid without having become due; and
(b)  the amount determined by the following formula, expressed as a percentage, is less than 10%:
A/B
where
A is the total of all amounts, each of which is the extent to which the property or service is acquired for consumption, use or supply in the course of activities relating to a provincial series of the person for a participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations, and
B is the total of all amounts, each of which is the extent to which the property or service is acquired for consumption, use or supply in the course of activities relating to a provincial series of the person for any province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations.
Adaptation — subsection 218.1(1.2) of Act
7.03  If a person is a qualifying taxpayer, within the meaning of subsection 217.1(1) of the Act, for a specified year of the person, as defined in section 217 of the Act, and if the person is a provincial investment plan or provincial stratified investment plan at any time in a fiscal year of the person that ends in the specified year, subsection 218.1(1.2) of the Act is adapted in respect of the specified year as follows:
(1.2)  Subject to this Part, every qualifying taxpayer that is a provincial investment plan or provincial stratified investment plan at any time in a fiscal year of the qualifying taxpayer that ends in a specified year of the qualifying taxpayer shall, for the specified year 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
A + B
where
A 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
A1 × A2
where
A1 is the internal charge, and
A2 is
(i)  in the case of a provincial stratified investment plan, the total of all amounts, each of which 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 relating to a provincial series of the qualifying taxpayer for the particular participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,
(ii)  in the case of a provincial investment plan for the particular participating province, 100%, and
(iii)  in the case of a provincial investment plan for a province other than the particular participating province, 0%, and
B 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
B1 × B2
where
B1 is the external charge, and
B2 is
(i)  in the case of a provincial stratified investment plan, the total of all amounts, each of which 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 relating to a provincial series of the qualifying taxpayer for the particular participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,
(ii)  in the case of a provincial investment plan for the particular participating province, 100%, and
(iii)  in the case of a provincial investment plan for a province other than the particular participating province, 0%; 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
C × D
where
C is the qualifying consideration, and
D is
(i)  in the case of a provincial stratified investment plan, the total of all amounts, each of which 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 relating to a provincial series of the qualifying taxpayer for the particular participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,
(ii)  in the case of a provincial investment plan for the particular participating province, 100%, and
(iii)  in the case of a provincial investment plan for a province other than the particular participating province, 0%.
  
94  Section 10 of the Regulations is amended by striking out "or" at the end of paragraph (a), by adding "or" at the end of paragraph (b) and by adding the following after paragraph (b):
(c)  the property is not a specified motor vehicle that the person is required to register under the laws of the participating province relating to the registration of motor vehicles, the person is a provincial investment plan or a provincial stratified investment plan and, in the case of a provincial stratified investment plan, the person is acquiring the property for the purpose of consumption, use or supply in the course of activities relating to one or more provincial series of the person.
95  Section 11 of the Regulations is amended by striking out "or" at the end of paragraph (a), by adding "or" at the end of paragraph (b) and by adding the following after paragraph (b):
(c)  the recipient is a provincial investment plan or a provincial stratified investment plan and, in the case of a provincial stratified investment plan, the recipient is acquiring the property for the purpose of consumption, use or supply in the course of activities relating to one or more provincial series of the recipient.
96  The Regulations are amended by adding the following after section 12:
Adaptation — subsections 220.07(1) to (4) of Act
12.1  If a person imports goods, other than a specified motor vehicle, into Canada, if the person is a provincial investment plan or a provincial stratified investment plan at the time the goods are released and if, in the case of a provincial stratified investment plan, the goods are imported for the purpose of consumption, use or supply in the course of activities relating to one or more provincial series of the person, subsections 220.07(1) to (4) of the Act are adapted in respect of the importation as follows:
220.07  (1)  Subject to this Part, every person that imports goods, other than a specified motor vehicle, that are accounted for as commercial goods (within the meaning assigned by subsection 212.1(1)) under section 32 of the Customs Act, that is a provincial investment plan or provincial stratified investment plan at the time the goods are released and that is liable under that Act to pay duties on the goods, or would be so liable if they were subject to duty, shall pay, in addition to the tax imposed under section 212, tax to Her Majesty in Right of Canada equal to the total of all amounts, each of which is determined for a participating province by the formula
A × B × C
where
A is the value of the goods,
B is the tax rate for the participating province, and
C is
(a)  in the case of a provincial stratified investment plan, the total of all amounts, each of which is the extent (expressed as a percentage) to which the person acquired the goods for consumption, use or supply in the course of activities relating to a provincial series of the person for the participating province, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations,
(b)  in the case of a provincial investment plan for the participating province, 100%, and
(c)  in the case of a provincial investment plan for a province other than the participating province, 0%.
(2)  Tax under subsection (1) does not apply to goods included in Schedule VII.
(3)  For the purposes of this section, the value of goods is equal to the value of the goods determined in accordance with section 215.
(4)  Tax under subsection (1) on goods imported by a person becomes payable by that person on the day on which the goods are released.
Adaptation — subsection 220.08(1) of Act
12.2  If a person is the recipient of a taxable supply made in a particular province of property or a service, if the person is a provincial investment plan or provincial stratified investment plan at the time an amount of consideration for the supply becomes due or is paid without having become due and if, in the case of a provincial stratified investment plan, the person is acquiring the property or service for consumption, use or supply in the course of activities relating to one or more provincial series of the person, subsection 220.08(1) of the Act is adapted in respect of the amount of consideration for the supply as follows:
220.08  (1)  Subject to this Part, every person that is the recipient of a taxable supply made in a particular province of property or a service and that is a provincial investment plan or provincial stratified investment plan at the time an amount of consideration for the supply becomes due or is paid without having become due must pay to Her Majesty in right of Canada, in respect of the amount of consideration, tax equal to the amount determined in accordance with section 13 of the New Harmonized Value-added Tax System Regulations, No. 2.
97  The portion of section 13 of the Regulations before the formula is replaced by the following:
Calculation of tax — subsection 220.08(1)
13  For the purposes of subsection 220.08(1) of the Act, the amount of tax payable under that subsection by a recipient of a taxable supply made in a particular province of property or a service in respect of an amount of consideration for the supply that becomes due, or is paid without having become due, at any time is the total of all amounts, each of which is determined for a participating province by the formula
98  Section 13.1 of the Regulations is repealed.
99  (1)  Paragraph 15(a) of the Regulations is replaced by the following:
(a)  the person is neither a provincial stratified investment plan that acquired the property or service for consumption use or supply in the course of activities relating to one or more of provincial series of the person nor a provincial investment plan and the extent to which the person acquired the property or service for consumption, use or supply in participating provinces that, at the particular time, have a tax rate that is greater than the provincial rate for the particular province is less than 10%;
(2)  The portion of paragraph 15(a.1) of the Regulations before the formula is replaced by the following:
(a.1)  the person is a provincial stratified investment plan that acquired the property or service for consumption use or supply in the course of activities relating to one or more of provincial series of the person and the extent to which the person acquired the property or service for consumption, use or supply in the course of activities relating to one or more provincial series of the person for participating provinces having a tax rate that is greater than the provincial rate for the particular province is less than 10%, where that extent (expressed as a percentage) is determined by the formula
100  (1)  Subsection 21.1(1) of the Regulations is replaced by the following:
Prescribed person — subsection 261.31(2) of Act
21.1  (1)  For the purposes of subsection 261.31(2) of the Act, a selected listed financial institution that is a provincial stratified investment plan is a prescribed person.
(2)  The portion of paragraph 21.1(2)(a) of the Regulations before subparagraph (i) is replaced by the following:
(a)  if the person is a provincial stratified investment plan,
101  Sections 90 to 92 and 100 are deemed to have come into force on the day that is after Announcement Date.
102  Sections 7 to 7.02 of the New Harmonized Value-added Tax System Regulations, No. 2, as enacted by section 93, section 95, section 12.2 of those Regulations, as enacted by section 96, and sections 97 to 99 apply in respect of any supply made after Announcement Date.
103  Section 7.03 of the New Harmonized Value-added Tax System Regulations, No. 2, as enacted by section 93, applies in respect of any specified year of a person that ends after Announcement Date.
104  Section 94 applies in respect of property that is brought into a province after Announcement Date.
105  Section 12.1 of the New Harmonized Value-added Tax System Regulations, No. 2, as enacted by section 96, apply in respect of goods released after Announcement Date.