Sales Tax Amendments Act, 2006 (S.C. 2007, c. 18)

Marginal note:1997, c. 10, s. 183(1)

• 14. (1) Paragraph (b) of the description of A in subsection 193(1) of the Act is replaced by the following:

  • (b) the tax that is or would, in the absence of section 167 or 167.11, be payable in respect of the particular taxable supply, and

• (2) Subsection (1) is deemed to have come into force on June 28, 1999.

Marginal note:1997, c. 10, s. 191(1)

• 15. (1) The description of A in paragraph 201(b) of the Act is replaced by the following:

  A 

  is the tax that would be payable by the registrant in respect of the vehicle if the registrant acquired the vehicle at the particular time

  • (i) where the registrant is bringing the vehicle into a participating province at the particular time, in that province, and

  • (ii) in any other case, in Canada

  for consideration equal to the amount that would be deemed under paragraph 13(7)(g) or (h) of the Income Tax Act to be, for the purposes of section 13 of that Act, the capital cost to a taxpayer of a passenger vehicle in respect of which that paragraph applies if the formula in paragraph 7307(1)(b) of the Income Tax Regulations were read without reference to the description of B,

• (2) Subsection (1) applies to any passenger vehicle that is acquired, imported or brought into a participating province after November 27, 2006 and to any passenger vehicle acquired, imported or brought into a participating province on or before that day unless an input tax credit in respect of the acquisition, importation or bringing in, as the case may be,

  • (a) was claimed pursuant to section 201 of the Act in a return filed under Division V of Part IX of the Act on or before that day; and

  • (b) 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 taxes.

Marginal note:1990, c. 45, s. 12(1)

• 16. (1) Subsection 202(1) of the Act is replaced by the following:

  Marginal note:Improvement to passenger vehicle

  • 202. (1) If the consideration paid or payable by a registrant for an improvement to a passenger vehicle of the registrant increases the cost to the registrant of the vehicle to an amount that exceeds the amount that would be deemed under paragraph 13(7)(g) or (h) of the Income Tax Act to be, for the purposes of section 13 of that Act, the capital cost to a taxpayer of a passenger vehicle in respect of which that paragraph applies if the formula in paragraph 7307(1)(b) of the Income Tax Regulations were read without reference to the description of B, the tax calculated on that excess shall not be included in determining an input tax credit of the registrant for any reporting period of the registrant.

• (2) Subsection (1) applies to any improvement to a passenger vehicle that is acquired, imported or brought into a participating province after November 27, 2006 and to any improvement to a passenger vehicle acquired, imported or brought into a participating province on or before that day unless an input tax credit in respect of the acquisition, importation or bringing in, as the case may be,

  • (a) was claimed pursuant to section 202 of the Act in a return filed under Division V of Part IX of the Act on or before that day; and

  • (b) 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 taxes.

• 17. (1) Section 205 of the Act is amended by adding the following after subsection (4):

  • Marginal note:Acquisition of asset

    (4.1) Despite section 197, subsection 193(1) applies to the supplier of a supply of capital personal property that is made under an agreement for a qualifying supply (as defined in subsection 167.11(1)), and subsections 206(4) and (5) apply to the recipient of the supply of capital personal property, with any modifications that the circumstances require, as if the property were real property if

    • (a) the supplier and the recipient are both registrants at the time the qualifying supply is made and they make a joint election referred to in subsection 167.11(2) in respect of the qualifying supply;

    • (b) in acquiring the property, the recipient is deemed under subsection 167.11(3) to have acquired the property for use exclusively in commercial activities of the recipient; and

    • (c) immediately after the earlier of the time the ownership of the property and the time the possession of the property is transferred to the recipient under the agreement for the qualifying supply, the property is for use by the recipient as capital property of the recipient but not exclusively in commercial activities of the recipient.

• (2) Section 205 of the Act is amended by adding the following after subsection (5):

  • Marginal note:Acquisition of asset

    (5.1) Despite section 197, subsection 206(2) applies to the recipient of a supply of capital personal property that is made under an agreement for a qualifying supply (as defined in subsection 167.11(1)), with any modifications that the circumstances require, as if the property were real property if

    • (a) the supplier and the recipient of the capital personal property are both registrants at the time the qualifying supply is made and they make a joint election referred to in subsection 167.11(2) in respect of the qualifying supply;

    • (b) in acquiring the property, the recipient is deemed under subsection 167.11(3) to have acquired the property for use exclusively in activities of the recipient that are not commercial activities; and

    • (c) immediately after the earlier of the time the ownership of the property and the time the possession of the property is transferred to the recipient under the agreement for the qualifying supply, the property is for use by the recipient as capital property of the recipient in commercial activities of the recipient.

• (3) Subsections (1) and (2) are deemed to have come into force on June 28, 1999.

Marginal note:1993, c. 27, s. 81(1); 1997, c. 10, s. 41(3); 2000, c. 30, s. 44(2); 2005, c. 38, s. 105(2) and subpar. 145(2)(g)(v)

• 18. (1) Subsection 215.1(3) of the Act is replaced by the following:

  • Marginal note:Abatement or refund of tax as if it were duty

    (3) Subject to section 263, sections 73, 74 and 76 of the Customs Act apply, with any modifications that the circumstances require, to an amount paid by a person as tax under this Division as though the amount were duties paid under that Act, where

    • (a) the amount was paid as tax on goods that were imported

      • (i) for consumption, use or supply otherwise than exclusively in the course of a commercial activity of the person, or

      • (ii) for consumption, use or supply in the course of a commercial activity of the person and the person was, at the time of the release of the goods, a small supplier who was not registered under Subdivision d of Division V;

    • (b) if the goods had been subject to duties paid under that Act, an abatement or refund of the whole or part of the duties could have been granted under section 73, 74 or 76 of that Act because of circumstances

      • (i) described in paragraph 73(a) or (b), any of paragraphs 74(1)(a) to (c) or subsection 76(1) of that Act, or

      • (ii) in which an error was made in the determination under subsection 58(2) of that Act of the value of the goods and the determination has not been the subject of a decision under any of sections 59 to 61 of that Act;

    • (c) the person has not been and is not entitled to be compensated under a warranty for loss suffered because of any of those circumstances by receiving a supply of replacement parts, or replacement property, that are goods included in section 5 of Schedule VII; and

    • (d) within two years after the day on which the amount was paid as tax under this Division, the person files with the Minister an application, in prescribed form containing prescribed information, for a rebate of the amount.

• (2) Subsection (1) is deemed to have come into force on January 1, 1998, except that, in applying subsection 215.1(3) of the Act, as enacted by subsection (1), in determining rebates under that subsection before October 20, 2000, paragraph 215.1(3)(c) shall be read as follows:

  • (c) the person has not been and is not entitled to be compensated under a warranty for loss suffered because of any of those circumstances by receiving a supply of replacement parts that are goods included in section 5 of Schedule VII; and

Marginal note:1993, c. 27, s. 82(1); 2005, c. 38, s. 106

• 19. (1) Subsections 216(4) to (6) of the Act are replaced by the following:

  • Marginal note:Appeals of determination of tax status

    (4) In applying the Customs Act to a determination of the tax status of goods, the references in that Act to the “Canadian International Trade Tribunal” and to the “Secretary of the Canadian International Trade Tribunal” shall be read as references to the “Tax Court of Canada” and to the “Registrar of the Tax Court of Canada”, respectively.

  • Marginal note:Application of Part IX and Tax Court of Canada Act

    (5) The provisions of this Part and of the Tax Court of Canada Act that apply to an appeal taken under section 302 apply, with any modifications that the circumstances require, to an appeal taken under subsection 67(1) of the Customs Act from a decision of the President of the Canada Border Services Agency made under section 60 or 61 of that Act in a determination of the tax status of goods as if the decision of the President were a confirmation of an assessment or a reassessment made by the Minister under subsection 301(3) or (4) as a consequence of a notice of objection filed under subsection 301(1.1) by the person to whom the President is required to give notice under section 60 or 61 of the Customs Act, as the case may be, of the decision.

  • Marginal note:Rebate resulting from appraisal or re-appraisal

    (6) If, because of an appraisal, a re-appraisal or a further re-appraisal of the value of goods or a determination of the tax status of goods, it is determined that the amount that was paid as tax under this Division on the goods exceeds the amount of tax that is required under this Division to be paid on the goods and a refund of the excess would be given under paragraph 59(3)(b) or 65(1)(b) of the Customs Act if the tax under this Division on the goods were a customs duty on the goods levied under the Customs Tariff, a rebate of the excess shall, subject to section 263, be paid to the person who paid the excess, and the provisions of the Customs Act that relate to the payment of such refunds and interest on such refunds apply, with any modifications that the circumstances require, as if the rebate of the excess were a refund of duty.

• (2) Subsection (1) is deemed to have come into force on January 1, 1998, except that, before December 12, 2005, subsection 216(5) of the Act, as enacted by subsection (1), shall be read as follows:

  • Marginal note:Application of Part IX and Tax Court of Canada Act

    (5) The provisions of this Part and of the Tax Court of Canada Act that apply to an appeal taken under section 302 apply, with any modifications that the circumstances require, to an appeal taken under subsection 67(1) of the Customs Act from a decision of the Commissioner made under section 60 or 61 of that Act in a determination of the tax status of goods as if the decision of the Commissioner were a confirmation of an assessment or a reassessment made by the Minister under subsection 301(3) or (4) as a consequence of a notice of objection filed under subsection 301(1.1) by the person to whom the Commissioner is required to give notice under section 60 or 61 of the Customs Act, as the case may be, of the decision.