Excise Tax Act (R.S.C., 1985, c. E-15)

Marginal note:Definitions

• 121. (1) In this section,

  “estimated federal sales tax”

  « taxe de vente fédérale estimative »

  “estimated federal sales tax” for a residential complex means the prescribed amount in respect of the complex;

  “specified residential complex”

  « immeuble d’habitation déterminé »

  “specified residential complex” means

  • (a) a multiple unit residential complex containing more than two residential units where the construction or substantial renovation of the complex began before 1991 and subsection 191(3) did not apply and, notwithstanding subsections 191(6) and (7), would not have applied, after the construction or substantial renovation began and before 1991, to deem a supply of the complex to have been made, or

  • (b) a residential condominium unit where the construction or substantial renovation of the condominium complex in which the unit is situated began before 1991 and neither subsection 191(1) nor (2) applied, after the construction or substantial renovation began and before 1991, to deem a supply of the unit to have been made;

  “specified single unit residential complex”

  « immeuble d’habitation à logement unique déterminé »

  “specified single unit residential complex” means a residential complex (other than a floating home or a mobile home)

  • (a) that is a single unit residential complex or a multiple unit residential complex containing not more than two residential units,

  • (b) the construction or substantial renovation of which began before 1991, and

  • (c) that was not occupied by any individual as a place of residence or lodging after the construction or substantial renovation began and before 1991.

• Marginal note:Rebate for specified single unit residential complex

  (2) Where

  • (a) a builder of a specified single unit residential complex

    • (i) gives possession of the complex to a person under a lease, licence or similar arrangement and thereby is deemed under subsection 191(1) or (3) to have made a taxable supply of the complex, or

    • (ii) makes a taxable supply by way of sale of the complex to an individual,

  • (b) tax under Part IX is payable in respect of the supply,

  • (c) the individual or person, as the case may be, first takes possession of the complex after 1990 and before 1995, and

  • (d) the construction or substantial renovation of the complex is substantially completed

    • (i) before July 1991, where the individual or person, as the case may be, first takes possession of the complex before July 1991, and

    • (ii) before 1991, in any other case,

  the Minister shall, subject to subsections (4) and (4.1), pay a rebate to the individual or, in the case described in subparagraph (a)(i), to the builder equal to

  • (e) 2/3 of the estimated federal sales tax for the complex where, before April 1991, the construction or substantial renovation of the complex is substantially completed and possession of the complex is transferred, and

  • (f) 1/3 of the estimated federal sales tax for the complex in any other case.

• Marginal note:Liability of the builder

  (2.1) Where a rebate in respect of a residential complex is paid under subsection (2) to an individual who is not a builder of the complex, or to an assignee of the individual, and

  • (a) the builder has given to the individual or to the Minister incorrect information in writing as to the substantial completion before 1991 of the construction or substantial renovation of the complex,

  • (b) the builder knew or ought to have known that the information was incorrect, and

  • (c) the individual did not know and could not reasonably be expected to have known that the information was incorrect,

  the rebate shall be deemed, for the purposes of section 81.39, to have been received by the builder as if the builder had applied therefor.

• Marginal note:Rebate for specified residential complex

  (3) Where, immediately before 1991, a builder of a specified residential complex (other than a builder of the complex to whom, because of subsection 191(5) or (6), subsections 191(1) to (4) do not apply) owned or had possession of the complex and had not transferred ownership or possession under an agreement of purchase and sale to any person who is not a builder of the complex, the Minister shall, subject to subsections (4) and (4.1), pay a rebate to the builder equal to

  • (a) where the complex is a multiple unit residential complex,

    • (i) 50% of the estimated federal sales tax for the complex, where the construction or substantial renovation of the complex was, on January 1, 1991, more than 25% completed and not more than 50% completed, and

    • (ii) 75% of the estimated federal sales tax for the complex, where the construction or substantial renovation of the complex was, on January 1, 1991, more than 50% completed; and

  • (b) where the complex is a residential condominium unit in a condominium complex,

    • (i) 50% of the estimated federal sales tax for the unit, where the construction or substantial renovation of the condominium complex was, on January 1, 1991, more than 25% completed and not more than 50% completed, and

    • (ii) 75% of the estimated federal sales tax for the unit, where the construction or substantial renovation of the condominium complex was, on January 1, 1991, more than 50% completed.

• Marginal note:Application for rebate

  (4) A rebate in respect of a residential complex shall not be paid under this section to a person where the person fails to apply to the Minister for the rebate in prescribed form and manner before 1995 or where a rebate under this section in respect of the complex was paid to any other person entitled thereto.

• Marginal note:Rebate based on consideration

  (4.1) Where the estimated federal sales tax for a residential complex is an amount based on the consideration, or a portion of the consideration, for a supply of the complex, a rebate in respect of the complex shall not be paid under this section to a person unless the person has applied for the rebate after tax under Part IX became payable in respect of that supply.

• Marginal note:Application of section 191

  (5) For the purposes of this section, section 191 shall be deemed to have been in force at all times before 1991.

• Marginal note:Application of Parts VI and VII

  (6) Parts VI and VII apply in respect of an application for a rebate and of a payment of a rebate under this section as if the application were an application for a refund under section 68 and the payment were made under section 72.