Budget Implementation Act, 2019, No. 1 (S.C. 2019, c. 29)

PART 2GST/HST Measures

R.S., c. E-15Excise Tax Act

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

• 70 (1) The definition passenger vehicle in subsection 123(1) of the Excise Tax Act is replaced by the following:

  passenger vehicle

  passenger vehicle means a passenger vehicle or a zero-emission passenger vehicle, as those terms are defined in subsection 248(1) of the Income Tax Act; (voiture de tourisme)

• (2) Subsection (1) is deemed to have come into force on March 19, 2019.

Marginal note:2007, c. 18, s. 15(1)

• 71 (1) The portion of the description of A in paragraph 201(b) of the French version of the Act before subparagraph (i) is replaced by the following:

  A

  représente la taxe qui serait payable par lui relativement à la voiture s’il l’avait acquise à l’endroit ci-après au moment donné pour une contrepartie égale au montant qui serait, selon celui des alinéas 13(7)g) à i) de la Loi de l’impôt sur le revenu qui est applicable relativement à la voiture, réputé être, pour l’application de l’article 13 de cette loi, le coût en capital pour un contribuable d’une voiture de tourisme à laquelle l’alinéa en cause s’applique s’il n’était pas tenu compte de l’élément B des formules figurant à l’alinéa 7307(1)b) et au paragraphe 7307(1.1) du Règlement de l’impôt sur le revenu :

• Marginal note:2007, c. 18, s. 15(1)

  (2) The portion of the description of A in paragraph 201(b) of the English version of the Act after subparagraph (ii) is replaced by the following:

  for consideration equal to the amount that would, under whichever of paragraphs 13(7)(g) to (i) of the Income Tax Act is applicable in respect of the vehicle, be deemed 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 formulae in paragraph 7307(1)(b) and subsection 7307(1.1) of the Income Tax Regulations were read without reference to the description of B,

• (3) Subsections (1) and (2) apply to any passenger vehicle that is acquired, imported or brought into a participating province after March 18, 2019.

Marginal note:2007, c. 18, s. 16(1)

• 72 (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, under whichever of paragraphs 13(7)(g) to (i) of the Income Tax Act is applicable in respect of the vehicle, be deemed 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 formulae in paragraph 7307(1)(b) and subsection 7307(1.1) 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 March 18, 2019.

Marginal note:2017, c. 33, s. 125(1)

• 73 (1) Subparagraph (b)(ii) of the definition imported taxable supply in section 217 of the Act is replaced by the following:

  • (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 any of paragraphs 13(7)(g) to (i) 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;

• Marginal note:2017, c. 33, s. 125(2)

  (2) Subparagraph (b.01)(ii) of the definition imported taxable supply in section 217 of the Act is replaced by the following:

  • (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 any of paragraphs 13(7)(g) to (i) 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;

• Marginal note:2017, c. 33, s. 125(4)

  (3) Subparagraph (b.1)(ii) of the definition imported taxable supply in section 217 of the Act is replaced by the following:

  • (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 any of paragraphs 13(7)(g) to (i) 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;

• (4) Subsections (1) to (3) apply in respect of supplies made after March 18, 2019.

Marginal note:2017, c. 33, s. 134(F)

• 74 (1) The portion of subsection 235(1) of the French version of the Act before the formula is replaced by the following:

  Marginal note: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 à l’alinéa 7307(1)b), au paragraphe 7307(1.1) et à l’alinéa 7307(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 :

• Marginal note:2007, c. 18, s. 32(1)

  (2) Paragraph 235(1)(b) of the English version of the Act is replaced by the following:

  • (b) the amount in respect of that consideration that would be deductible in computing the registrant’s income for the year for the purposes of the Income Tax Act, if the registrant were a taxpayer under that Act and the formulae in paragraph 7307(1)(b), subsection 7307(1.1) and paragraph 7307(3)(b) of the Income Tax Regulations were read without reference to the description of B,

• (3) Subsections (1) and (2) are deemed to have come into force on March 19, 2019.

• 75 (1) Part II of Schedule V to the Act is amended by adding the following after section 7.3:

  • 7.4 A supply of a service if all or substantially all of the consideration for the supply is reasonably attributable to two or more particular services, each of which meets the following conditions:

    • (a) the particular service is rendered in the course of making the supply; and

    • (b) a supply of the particular service would be a supply included in any of sections 5 to 7.3, if the particular service were supplied separately.

• (2) Subsection (1) applies to any supply made after March 19, 2019.