• 75. (1) The Act is amended by adding the following after section 236.3:

  Marginal note:Election for residential complex

  • 236.4 (1) A person may make an election in respect of a residential complex, or in respect of an addition to a multiple unit residential complex, for a particular reporting period of the person if

    • (a) the person is the builder of the residential complex or addition;

    • (b) the person is deemed under subsection 191(1), (3) or (4) to have made and received, at a particular time that is on or before February 26, 2008, a taxable supply by way of sale of the residential complex or addition and to have paid as a recipient and to have collected as a supplier a particular amount of tax in respect of that supply;

    • (c) the person has not reported an amount as or on account of tax in respect of the taxable supply in the person’s return under this Division for any reporting period the return for which is filed on or before February 26, 2008 or is required under this Division to be filed on or before a day that is on or before February 26, 2008;

    • (d) the person would be entitled to claim a rebate under subsection 256.2(3) in respect of the residential complex or addition that is determined based on the particular amount of tax if

      • (i) section 256.2 were read without reference to subsection (7), and

      • (ii) the amount determined for B in the first formula in subsection 256.2(3) for a qualifying residential unit, as defined in subsection 256.2(1), that forms part of the residential complex or addition were less than $450,000;

    • (e) the person did not supply to another person by way of sale the residential complex or addition on or before February 26, 2008;

    • (f) the particular reporting period ends on or before February 26, 2010;

    • (g) the election is filed in prescribed form containing prescribed information not later than the day on or before which the return under this Division is required to be filed for the particular reporting period; and

    • (h) the person has not made another election under this subsection in respect of the residential complex or addition.

  • Marginal note:Adjustment to net tax

    (2) If a person makes an election under subsection (1) in respect of a residential complex, or in respect of an addition to a multiple unit residential complex, for a reporting period of the person, the person shall, in determining the net tax for that period, add the positive amount or deduct the negative amount determined by the formula

    (A - B) - C

    where

    A

    is the particular amount of tax referred to in paragraph (1)(b);

    B

    is the amount of the rebate that the person would be entitled, if section 256.2 were read without reference to subsection (7), to claim under subsection 256.2(3) in respect of the residential complex or addition that is determined based on the particular amount of tax; and

    C

    is the amount determined by the formula

    C₁ - C₂

    where

    C₁

    is the total of all amounts each of which is an input tax credit of the person

    • (i) that is in respect of property or a service acquired, imported or brought into a participating province before the particular time referred to in paragraph (1)(b) for consumption or use for the purpose of making the supply referred to in that paragraph, and

    • (ii) in respect of which the person satisfies the requirements of subsection 169(4) at the time the election under subsection (1) is filed, and

    C₂

    is the total of all amounts each of which is an amount included in the determination of C₁, but only to the extent that the amount can reasonably be regarded as an amount that

    • (i) was claimed or included as an input tax credit or deduction in determining the net tax for the reporting period or a preceding reporting period of the person,

    • (ii) has previously been rebated, refunded or remitted to the person, or that the person is entitled to obtain as a rebate, refund or remission, under this or any other Act of Parliament, or

    • (iii) is included in an adjustment, refund or credit for which a credit note referred to in subsection 232(3) has been received by the person or a debit note referred to in that subsection has been issued by the person.

  • Marginal note:Consequences of election

    (3) For the purposes of this Part, if a person makes an election under subsection (1) in respect of a residential complex, or in respect of an addition to a multiple unit residential complex, for a reporting period of the person, the person is deemed

    • (a) to have been deemed to have made and received, at the particular time referred to in paragraph (1)(b), a taxable supply of the residential complex or addition by way of sale and to have paid as a recipient and to have collected as a supplier tax in respect of the supply equal to the particular amount of tax referred to in that paragraph under

      • (i) in the case of a single unit residential complex or a residential condominium unit, subsection 191(1),

      • (ii) in the case of a multiple unit residential complex, subsection 191(3), and

      • (iii) in the case of an addition, subsection 191(4);

    • (b) to have claimed each amount that is included in the determination of C₁ in the second formula in subsection (2) as an input tax credit in determining the net tax for the reporting period, but only to the extent that the amount is not included in the determination of C₂ in the same formula;

    • (c) to have claimed and received a rebate under subsection 256.2(3), in respect of the complex or addition, equal to the amount determined for B in the first formula in subsection (2); and

    • (d) not to be required to include the particular amount of tax deemed to have been collected under paragraph (a) for the purpose of determining the net tax of the person for the reporting period that includes the particular time, other than for the purpose of including the particular amount in the determination of A in the first formula in subsection (2).

  • Marginal note:Input tax credit

    (4) For the purposes of subsection 225(4), if a person makes an election under subsection (1), any input tax credit of the person in respect of the complex or addition that the person is deemed to have received under paragraph (3)(a) is deemed to be an input tax credit of the person for the reporting period of the person that includes February 26, 2008 and not an input tax credit of the person for any other period.

  • Marginal note:Limitation period if election

    (5) If a person makes an election under subsection (1) in respect of a residential complex, or in respect of an addition to a multiple unit residential complex, section 298 applies to any assessment, reassessment or additional assessment of an amount added to, or deducted from, net tax by the person in respect of the residential complex or addition, but the Minister has until the day that is four years after the day on or before which the election under subsection (1) is required to be filed with the Minister to make any assessment, reassessment or additional assessment for the purpose of taking into account any amount that is, or is required to be, added or subtracted in determining the amount determined under the first formula in subsection (2).

  • Marginal note:Residential complex separate from addition

    (6) For the purposes of this section, if a person is the builder of an addition to a residential complex and is eligible to make an election under subsection (1) in respect of the addition or the remainder of the residential complex, the addition and the remainder of the residential complex are each deemed to be a separate property.

• (2) Subsection (1) applies to any reporting period that ends on or after February 26, 2008.

• (3) Despite any other provision of this Act, sections 191, 191.1 and 256.2 of the Act shall be read as those sections are amended by this Act in applying section 236.4 of the Act, as enacted by subsection (1).

Marginal note:1993, c. 27, s. 113(1); 2000, c. 30, s. 74(1)

• 76. (1) The portion of subsection 256.1(1) of the Act before the formula is replaced by the following:

  Marginal note:Rebate to owner of land leased for residential purposes

  • 256.1 (1) If an exempt supply of land described by section 6.1 or 6.11 of Part I of Schedule V is made to a particular lessee who is acquiring the land for the purpose of making a particular supply of property or a service that includes the land or a particular supply of a lease, licence or similar arrangement in respect of property that includes the land, and the particular supply

    • (a) is an exempt supply of property or a service, other than a supply that is exempt only by virtue of paragraph 6(b) of Part I of Schedule V, that

      • (i) includes giving possession or use of a residential complex, or of a residential unit forming part of a residential complex, to another person under a lease, licence or similar arrangement entered into for the purpose of its occupancy by an individual as a place of residence or lodging, or

      • (ii) is described by section 7 of Part I of Schedule V, other than an exempt supply described by paragraph 7(a) of that Part made to a person described in subparagraph 7(a)(ii) of that Part, and

    • (b) will result in the particular lessee being deemed under any of subsections 190(3) to (5) and section 191 to have made a supply of property that includes the land at a particular time,

    the Minister shall, subject to subsection (2), pay a rebate, to each person (in this subsection referred to as the “landlord”) who is an owner or lessee of the land and who is not the particular lessee, equal to the amount determined by the formula

• (2) Subsection (1) applies in respect of

  • (a) a supply of land made to a particular lessee that is deemed under any of subsections 190(3) to (5) and section 191 of the Act to have made, after February 26, 2008, another supply of property that includes the land; and

  • (b) a supply of land made by a person to a particular lessee if

    • (i) the particular lessee was deemed under any of subsections 190(3) to (5) and section 191 of the Act to have made, on or before February 26, 2008, another supply of property that includes the land,

    • (ii) the supply would be included in section 6.11 of Part I of Schedule V to the Act if that section were read as that section is enacted by this Act, and

    • (iii) the person did not, on or before February 26, 2008, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply or any other supply of the land made by the person that would be included in section 6.1 or 6.11 of Part I of Schedule V to the Act if that section were read as that section is enacted by this Act.

• (3) If paragraph (2)(b) applies,

  • (a) each person (in this subsection referred to as the “landlord”) who is an owner or lessee of the land and who is not the particular lessee may, despite subsection 256.1(2) of the Act, file an application for a rebate under subsection 256.1(1) of the Act on or before February 26, 2010;

  • (b) the application may, despite subsection 262(2) of the Act, be the second application of the landlord for the rebate if the landlord has filed, on or before February 26, 2008, another application for the rebate and the other application has been assessed before the landlord files the application;

  • (c) for the purposes of Part IX of the Act in respect of the application, sections 6.1 and 6.11 of Part I of Schedule V to the Act shall be read as those sections are enacted by this Act; and

  • (d) a rebate is not payable under subsection 256.1(1) of the Act, as amended by subsection (1), to a person who is not a landlord of the land at the time the application for the rebate is filed.

Marginal note:2001, c. 15, s. 16(1)

• 77. (1) Clause (a)(ii)(A) of the definition “qualifying residential unit” in subsection 256.2(1) of the Act is replaced by the following:

  • (A) for the purpose of making exempt supplies of the unit that are included in section 5.1, 6.1, 6.11 or 7 of Part I of Schedule V,

  • (A.1) for the purpose of making exempt supplies of property or a service that includes giving possession or use of the unit to a person under a lease to be entered into for the purpose of its occupancy by an individual as a place of residence, or

• Marginal note:2001, c. 15, s. 16(1)

  (2) Subparagraph 256.2(3)(a)(ii) of the Act is replaced by the following:

  • (ii) is a builder of a residential complex, or of an addition to a multiple unit residential complex, that gives possession or use of a residential unit in the complex or addition to another person under a lease entered into for the purpose of its occupancy by an individual as a place of residence that results in the particular person being deemed under section 191 to have made and received a taxable supply by way of sale (in this subsection referred to as the “deemed purchase”) of the complex or addition,

• (3) Section 256.2 of the Act is amended by adding the following after subsection (6):

  • Marginal note:Adjustment for transitional rebate

    (6.1) For the purposes of determining the amount of a particular rebate in respect of a residential complex, an interest in a residential complex or an addition to a multiple unit residential complex payable to a person under any of subsections (3) to (5), the amount of the total tax under subsection 165(1) included in the calculation made under the formulae in subsections (3) to (5) shall be reduced by the total of all rebates payable to the person under any of sections 256.3 to 256.77 in respect of the residential complex, interest or addition, as the case may be, if the person

    • (a) was not entitled to the particular rebate under this section as it read immediately after it was last amended by an Act of Parliament that was assented to before February 26, 2008; and

    • (b) is entitled to the particular rebate under this section as it reads immediately after the Budget Implementation Act, 2008 has been assented to.

• (4) Subsections (1) and (2) apply in respect of

  • (a) a taxable supply by way of sale

    • (i) of a residential complex, or of an addition to a multiple unit residential complex, that is deemed to have been made under section 191 of the Act, if tax in respect of the supply is deemed under that section to have been paid after February 26, 2008, or

    • (ii) of a residential complex, or of an interest in a residential complex, to a person from another person, if tax under Part IX of the Act in respect of the supply first becomes payable after February 26, 2008; and

  • (b) a taxable supply by way of sale

    • (i) of a residential complex, or of an addition to a multiple unit residential complex, that is deemed to have been made under section 191 of the Act, if

      • (A) tax in respect of the supply is deemed under that section to have been paid by a person on a particular day that is on or before February 26, 2008,

      • (B) the person has reported the tax in the person’s return under Division V of Part IX of the Act for the reporting period of the person that includes the particular day, and

      • (C) the person has remitted all net tax remittable, if any, as reported in that return, or

    • (ii) of a residential complex, or of an interest in a residential complex, to a person that is not a builder of the complex from another person, if tax under Part IX of the Act in respect of the supply first becomes payable on or before February 26, 2008 and the person has paid all of the tax.

• (5) Subsection (3) is deemed to have come into force on July 1, 2006.

• (6) If paragraph (4)(b) applies,

  • (a) the person referred to in that paragraph may, despite paragraph 256.2(7)(a) of the Act, file, on or before February 26, 2010, an application for a rebate in respect of the tax under subsection 256.2(3) of the Act; and

  • (b) the application may, despite subsection 262(2) of the Act, be the second application of the person for the rebate if the person has filed, on or before February 26, 2008, another application for the rebate and the other application has been assessed before the person files the application.

Marginal note:2000, c. 30, s. 109(2)

• 78. (1) Section 6.1 of Part I of Schedule V to the Act is replaced by the following:

  • 6.1 A supply of property that is

    • (a) land, or

    • (b) a building, or that part of a building, that consists solely of residential units

    made by way of lease, licence or similar arrangement to a recipient (in this section referred to as a “lessee”) for a lease interval (within the meaning assigned by subsection 136.1(1) of the Act) throughout which the lessee or any sublessee makes, or holds the property for the purpose of making, one or more supplies of the property, parts of the property or leases, licences or similar arrangements in respect of the property or parts of it and all or substantially all of those supplies

    • (c) are exempt supplies included in section 6 or 7, or

    • (d) are supplies that are made, or are reasonably expected to be made, to other lessees or sublessees described in this section.

• (2) Subsection (1) applies to any supply for which consideration becomes due after February 26, 2008, without having been paid on or before that day, or is paid after that day without having become due.

• 79. (1) Part I of Schedule V to the Act is amended by adding the following after section 6.1:

  • 6.11 A supply made by way of lease, licence or similar arrangement of property that is a residential complex or that is land, a building or that part of a building, that forms or is reasonably expected to form part of a residential complex if the supply is made to a recipient (in this section referred to as the “lessee”) for a lease interval (within the meaning assigned by subsection 136.1(1) of the Act) throughout which all or substantially all of the property is

    • (a) supplied, or is held for the purpose of being supplied, in one or more supplies, by the lessee or any sublessee for the purpose of the occupancy of the property or parts of the property by individuals as a place of residence or lodging and all or substantially all of the supplies of the property or parts of the property are exempt supplies included in section 6, or

    • (b) used, or held for the purpose of being used, by the lessee or any sublessee in the course of making exempt supplies and, as part of one or more exempt supplies, possession or use of all or substantially all of the residential units situated in the property is given under a lease, licence or similar arrangement for the purpose of their occupancy by an individual as a place of residence.

• (2) Subsection (1) applies to any supply of property made by a supplier for which

  • (a) consideration becomes due after February 26, 2008 without having been paid on or before that day, or is paid after that day without having become due; or

  • (b) all of the consideration became due or was paid on or before February 26, 2008 if the supplier did not, on or before that day, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply or any other supply of the property made by the supplier that would be included in section 6.1 or 6.11 of Part I of Schedule V to the Act, if that section were read as that section is enacted by this Act.

• (3) If, as a result of the enactment of section 6.11 of Part I of Schedule V to the Act by subsection (1),

  • (a) a person ceases to use land of the person, or reduces the extent to which land is used, in commercial activities of the person,

  • (b) the person is deemed under subsection 206(4) or (5) or 207(1) or (2) of the Act to have made a supply of the land, or a portion of it,

  • (c) the person would have become entitled, at a particular time that is on or before February 26, 2008, to a rebate under subsection 256.1(1) of the Act in respect of the land equal to an amount, if that subsection, as amended by this Act, and sections 6.1 and 6.11 of Part I of Schedule V to the Act, as enacted by this Act, had applied at the particular time, and

  • (d) in determining the basic tax content (as defined in subsection 123(1) of the Act) of the land of the person on or after the particular time, the amount would have been included in determining the total for B in paragraph (a) of that definition if the person had been entitled to the rebate at the particular time,

  for the purpose of determining, on or after the particular time, the basic tax content of the land of the person, the amount shall be included in determining the total for B in paragraph (a) of that definition.

• (4) If, as a result of the enactment of section 6.11 of Part I of Schedule V to the Act by subsection (1),

  • (a) a person ceases to use a residential complex of the person, or reduces the extent to which the residential complex is used, in commercial activities of the person,

  • (b) the person is deemed under subsection 206(4) or (5) or 207(1) or (2) of the Act to have made a supply of the residential complex, or a portion of it,

  • (c) the person would have become entitled, at a particular time that is on or before February 26, 2008, to a rebate under subsection 256.2(3) of the Act in respect of the residential complex equal to an amount, if section 256.2 of the Act, as amended by this Act, and sections 6.1 and 6.11 of Part I of Schedule V to the Act, as enacted by this Act, had applied at the particular time, and

  • (d) in determining the basic tax content (as defined in subsection 123(1) of the Act) of the residential complex of the person on or after the particular time, the amount would have been included in determining the total for B in paragraph (a) of that definition if the person had been entitled to the rebate at the particular time,

  for the purpose of determining, on or after the particular time, the basic tax content of the residential complex of the person, the amount shall be included in determining the total for B in paragraph (a) of that definition.