Sales Tax Amendments Act, 2006 (S.C. 2007, c. 18)
Full Document:
Assented to 2007-06-22
Marginal note:1997, c. 10, ss. 25(1) and 169(1)(F)
10. (1) The portion of subsection 176(1) of the Act before paragraph (b) is replaced by the following:
Marginal note:Acquisition of used returnable containers
176. (1) Subject to this Division, if
(a) a registrant is the recipient of a supply made in Canada by way of sale of used tangible personal property (other than a returnable container as defined in subsection 226(1)) that is a usual covering or container of a class of coverings or containers in which property (other than property the supply of which is a zero-rated supply) is delivered,
Marginal note:1997, c. 10, s. 25(1)
(2) The portion of paragraph 176(1)(d) of the Act before subparagraph (i) is replaced by the following:
(d) the registrant pays consideration for the supply that is not less than the total of
(3) Subsections (1) and (2) apply to supplies for which consideration becomes due after July 15, 2002 or is paid after that day without having become due.
Marginal note:1997, c. 10, s. 26(1)
11. (1) Paragraphs 177(1.1)(a) and (b) of the Act are replaced by the following:
(a) the tax collectible in respect of the supply or any amount charged or collected by the registrant on behalf of the person as or on account of tax in respect of the supply is deemed to be collectible, charged or collected, as the case may be, by the registrant, and not by the person, for the purposes of
(i) determining the net tax of the registrant and of the person, and
(ii) applying sections 222 and 232;
(b) the registrant and the person are jointly and severally, or solidarily, liable for all obligations under this Part that arise upon or as a consequence of
(i) the tax becoming collectible,
(ii) a failure to account for or pay as and when required under this Part an amount of net tax of the registrant, or an amount required under section 230.1 to be paid by the registrant, that is reasonably attributable to the supply,
(iii) the registrant claiming, in respect of the supply, an amount as a deduction under section 231 or 232 to which the registrant was not entitled or in excess of the amount to which the registrant was entitled,
(iv) a failure to pay as and when required under this Part the amount of any underpayment of net tax by the registrant, or an amount required under section 230.1 to be paid by the registrant, that is reasonably attributable to a claim referred to in subparagraph (iii),
(v) a recovery of all or part of a bad debt relating to the supply in respect of which the registrant claimed a deduction under subsection 231(1), or
(vi) a failure to account for or pay as and when required under this Part an amount of net tax of the registrant, or an amount required under section 230.1 to be paid by the registrant, that is reasonably attributable to an amount required under subsection 231(3) to be added to the net tax of the registrant in respect of a bad debt referred to in subparagraph (v); and
(c) the threshold amounts of the registrant and of the person under subsections 249(1) and (2) shall be determined as if any consideration that became due to the person, or was paid to the person without having become due, in respect of the supply had become due to the registrant, or had been paid to the registrant without having become due, as the case may be, and not to the person.
(2) Section 177 of the Act is amended by adding the following after subsection (1.1):
Marginal note:Billing agent
(1.11) If a registrant acts as agent of a supplier in charging and collecting consideration and tax payable in respect of a supply made by the supplier but the registrant does not act as agent in making the supply, the registrant is deemed to have acted as agent of the supplier in making the supply for the purposes of
(a) subsection (1.1); and
(b) if an election under subsection (1.1) is made in respect of the supply, any other provision that refers to a supply in respect of which an election under that subsection has been made.
Marginal note:Joint revocation
(1.12) A registrant and a supplier who have jointly made an election under subsection (1.1) may, in prescribed form containing prescribed information, jointly revoke the election with respect to any supply made on or after the effective date specified in the revocation, and the election is thereby deemed, for the purposes of this Part, not to have been made with respect to that supply.
(3) Paragraphs 177(1.1)(a) and (c) of the Act, as enacted by subsection (1), and subsection 177(1.11) of the Act, as enacted by subsection (2), apply to supplies made after December 20, 2002.
(4) Paragraph 177(1.1)(b) of the Act, as enacted by subsection (1), applies to supplies made after April 23, 1996 in respect of which an election under subsection 177(1.1) of the Act is made at any time, except that, with respect to any supply made before December 21, 2002 in respect of which an election under that subsection was made before December 21, 2002,
(a) subparagraph 177(1.1)(b)(ii) of the Act, as enacted by subsection (1), shall be read as follows:
(ii) a failure to account for or remit the tax,
and
(b) the reference in subparagraph 177(1.1)(b)(iii) of the Act, as enacted by subsection (1), to “section 231 or 232” shall be read as a reference to “section 231”.
(5) Subsection 177(1.12) of the Act, as enacted by subsection (2), is deemed to have come into force on December 20, 2002.
Marginal note:2000, c. 30, s. 32(1)
12. (1) Paragraph 178.7(1)(b) of the French version of the Act is replaced by the following:
b) l’acquéreur du service est un organisme du secteur public ou une commission ou autre organisme établi par un gouvernement ou une municipalité.
(2) Subsection (1) is deemed to have come into force on February 24, 1998 and applies to reporting periods beginning after that day.
13. (1) The Act is amended by adding the following after section 178.7:
Import Arrangements
Definition of “specified supply”
178.8 (1) In this section, “specified supply” means a supply of goods that
(a) are, at any time after the supply is made, imported; or
(b) have been imported in circumstances in which section 144 deems the supply to have been made outside Canada.
Marginal note:Deemed importer of goods
(2) Subject to subsections (4) and (7), if a recipient of a specified supply of goods made outside Canada does not, at any time before the release of the goods, supply the goods outside Canada and the recipient or any other person imported the goods for consumption, use or supply by the recipient (in this section referred to as the “constructive importer”), the constructive importer is deemed to have so imported the goods, and any amount paid or payable as or on account of tax on the goods under Division III in respect of the importation is deemed to have been paid or payable, as the case may be, by or on behalf of the constructive importer and not by or on behalf of any other person.
Marginal note:Agreement to treat supply as made in Canada
(3) If a registrant makes a specified supply of goods outside Canada that is a taxable supply, the recipient of the supply is the constructive importer of the goods and an amount is, in the absence of subsection (2), paid or payable by or on behalf of the registrant as or on account of tax on the goods under Division III in respect of the importation, the registrant and the recipient may at any time agree, in prescribed form containing prescribed information, to have subsection (4) apply in respect of the supply and importation.
Marginal note:Effect of agreement
(4) If a registrant and the constructive importer of goods have entered into an agreement under subsection (3) in respect of the supply and importation of the goods and the constructive importer has not entered into an agreement under subsection (5) in respect of any amount paid as or on account of tax on the goods under Division III in respect of the importation,
(a) the supply is deemed to have been made in Canada
(i) in the case of a constructive importer who is an individual to whom the goods are shipped to a destination in Canada by another person, at the address to which the goods are sent by mail or courier by the shipper or at the destination that is specified in the contract for carriage of the goods or at which the shipper has directed a common carrier or consignee retained on behalf of the constructive importer to transfer physical possession of the goods, and
(ii) in any other case, at the place at which the goods are released;
(b) except if subsection 155(1) applies, the consideration for the supply is deemed to be equal to the amount otherwise determined for the purposes of this Part plus any amount (in this paragraph referred to as “additional consideration”) not otherwise included in that consideration that the constructive importer at a particular time pays or is required to pay to the registrant in respect of duties or taxes payable on the goods under this Act (other than this Part), the Customs Tariff, the Excise Act, 2001, the Special Import Measures Act or any other law relating to customs and, despite section 168, the tax in respect of the supply that is calculated on the additional consideration becomes payable at the particular time;
(c) the registrant is deemed to have imported the goods for the purpose of supply in the course of commercial activities of the registrant; and
(d) any amount paid or payable as or on account of tax on the goods under Division III in respect of the importation is deemed to have been paid or payable, as the case may be, by or on behalf of the registrant and not by or on behalf of any other person.
Marginal note:Agreement regarding rebates, abatements and refunds
(5) If the constructive importer of goods is deemed under subsection (2) to be the person by whom the goods are imported but another person (in this section referred to as the “specified importer”) was identified, for the purposes of the Customs Act, as the importer of the goods when the goods were accounted for under section 32 of that Act and, in the absence of subsection (2), paid an amount as or on account of tax on the goods under Division III, the constructive importer and the specified importer may agree in writing to have subsection (7) apply in respect of that amount.
Marginal note:Restriction
(6) Subsection (5) does not apply to any amount in respect of which, because of section 263.01, the constructive importer of goods would not be entitled to a rebate referred to in that section if the constructive importer paid the amount as or on account of tax on the goods under Division III.
Marginal note:Effect of agreement
(7) If a constructive importer of goods and a specified importer have entered into an agreement under subsection (5) to have this subsection apply in respect of an amount paid as or on account of tax on the goods under Division III and the constructive importer has not entered into an agreement under subsection (3) with the supplier of the goods in respect of the importation,
(a) subsections 215.1(2) and (3) and 216(6) and (7) apply as if the specified importer and not the constructive importer were the person by whom the goods were imported and the amount was paid, but only if, within a reasonable time after any rebate under subsection 215.1(2) or 216(6) in respect of the amount is granted or any abatement or refund is, because of subsection 215.1(3) or 216(7), granted in respect of the amount, the specified importer issues to the constructive importer a note (in this subsection referred to as a “tax adjustment note”), in prescribed form containing prescribed information, indicating the amount of the rebate, abatement or refund;
(b) in applying subsection 215.1(2) or (3) in respect of the amount in accordance with paragraph (a), that subsection shall be read without reference to subparagraphs (a)(i) and (ii), and paragraph (c), of that subsection; and
(c) if the constructive importer receives a tax adjustment note indicating the amount of a rebate, abatement or refund,
(i) the amount that is rebated, abated or refunded is deemed to have been payable as tax and to have been recovered by the constructive importer and, except for the purposes of section 232, the tax adjustment note is deemed to be a credit note referred to in that section received by the constructive importer for the amount of the rebate, abatement or refund,
(ii) the amount of the rebate, abatement or refund shall be added in determining the net tax of the constructive importer for the reporting period in which the tax adjustment note is received, to the extent that the amount has been included in determining an input tax credit claimed by the constructive importer in a return filed for that or a preceding reporting period or the constructive importer is or was entitled to be compensated under a warranty for loss suffered because of any of the circumstances that gave rise to the rebate, abatement or refund by receiving a supply of replacement parts, or replacement property, that are goods included in section 5 of Schedule VII, and
(iii) if the amount rebated, abated or refunded has been included in determining a rebate under Division VI paid to, or applied to a liability of, the constructive importer before the particular day on which the tax adjustment note is received and the rebate so paid or applied exceeds the rebate under that Division to which the constructive importer would have been entitled if the amount rebated, abated or refunded had not been paid, the constructive importer shall pay to the Receiver General under section 264 the excess as if it were an excess amount of the rebate under that Division paid to the constructive importer
(A) if the constructive importer is a registrant, on the day on or before which the constructive importer’s return for the reporting period that includes the particular day is required to be filed, and
(B) in any other case, on the last day of the calendar month immediately following the calendar month that includes the particular day.
Marginal note:Application
(8) Subject to subsection (9), subsections (2) to (7) apply for the purposes of this Part other than
(a) Division III except subsections 215.1(2) and (3) and 216(6) and (7);
(b) sections 220.07, 236.3 and 273.1;
(c) Schedule VII; and
(d) the Non-Taxable Imported Goods (GST/HST) Regulations and the Value of Imported Goods (GST/HST) Regulations.
Marginal note:Application
(9) Subsections (2) to (7) do not apply in respect of goods imported in circumstances in which subsection 169(2) applies or in which section 180 deems a person to have paid tax in respect of a supply of property equal to the tax under Division III in respect of the importation of goods.
Marginal note:Limitation period where retroactive agreement
(10) If a registrant and a constructive importer enter into an agreement under subsection (3) in respect of a previous importation of goods, the Minister has, despite section 298, until the day that is four years after the day on which the agreement under subsection (3) is entered into to make any assessment, reassessment or additional assessment for the purpose of taking into account an amount payable or remittable by the registrant or the constructive importer as a result of the application of subsection (4).
(2) Subsection (1) applies to goods imported on or after October 3, 2003 and to goods imported before that day that were not accounted for under section 32 of the Customs Act before that day.
- Date modified: