Public Service Body Rebate (GST/HST) Regulations (SOR/91-37)

1 [Repealed, SOR/2010-152, s. 4]

Interpretation

2 In these Regulations,

Act

Act means the Excise Tax Act; (Loi)

charity

charity has the meaning assigned by subsection 259(1) of the Act; (organisme de bienfaisance)

consideration

consideration, in respect of a supply, includes all amounts credited to the recipient of the supply in respect of a trade-in (within the meaning of subsection 153(4) of the Act) accepted in full or partial consideration for the supply or, if the supplier and the recipient are not dealing with each other at arm’s length at the time the supply is made and the amount credited to the recipient in respect of the trade-in exceeds the fair market value of the trade-in at the time ownership of it is transferred to the supplier, that fair market value; (contrepartie)

federal qualifying amount

federal qualifying amount, in respect of property or a service for a claim period of a person, means the portion of an amount included in the total determined under paragraph (a) of the definition non-creditable tax charged in subsection 259(1) of the Act that is tax under subsection 165(1) or section 212 or 218 of the Act paid or payable, or deemed to have been paid or collected, by the person or that is an amount, in relation to an amount of tax under subsection 165(1) or section 212 or 218 of the Act, required to be added in determining the net tax of the person, and

• (a) that is not included in determining an input tax credit of the person,

• (b) for which it cannot reasonably be regarded that the person has obtained or is entitled to obtain a rebate, refund or remission of the amount under any provision of the Act other than section 259 or under any other Act of Parliament, and

• (c) that is not included in an amount adjusted, refunded or credited to or in favour of the person for which a credit note referred to in subsection 232(3) of the Act has been received by the person or a debit note referred to in that subsection has been issued by the person; (montant fédéral admissible)

government funding

government funding of a particular person means

• (a) an amount of money (including a forgivable loan but not including any other loan or a refund, rebate or remission of, or credit in respect of, taxes, duties or fees imposed under any statute) that is readily ascertainable and is paid or payable to the particular person by a grantor

  • (i) for the purpose of financially assisting the particular person in carrying out the purposes of the particular person and not as consideration for supplies made by the particular person, or

  • (ii) as consideration for making property or services available for consumption or use by other persons (other than the grantor, individuals who are officers, employees, shareholders or members of the grantor, or persons related to the grantor or to such individuals), where supplies of the property or services made by the particular person to such other persons are exempt supplies, and

• (b) an amount of money paid or payable to the particular person by an organization (in this paragraph referred to as the “intermediary”) that received the amount from a grantor or by another organization that received the amount from an intermediary, where

  • (i) in the case of an amount that, after 1990, becomes payable or is paid to the particular person, the intermediary or the other organization, as the case may be, provides to the particular person, at the time the amount is paid to the particular person, a certificate in a form prescribed by the Minister certifying that the amount is government funding, and

  • (ii) the amount would be government funding of the particular person because of paragraph (a) if the amount were paid by the grantor directly to the particular person for the same purpose as it was paid to the particular person by the intermediary or the other organization, as the case may be, and if the reference to “grantor” in subparagraph (a)(ii) included a reference to that intermediary or other organization, as the case may be; (montant de financement public)

grantor

grantor means

• (a) a government or municipality, other than a corporation all or substantially all of whose activities are commercial activities or the supply of financial services or any combination thereof,

• (b) a corporation that is controlled by a government or by a municipality and one of the main purposes of which is to fund charitable or non-profit endeavours,

• (c) a trust, board, commission or other body that is established by a government, municipality or corporation described in paragraph (b) and one of the main purposes of which is to fund charitable or non-profit endeavours, and

• (d) a band of Indians within the meaning of any Act of Parliament; (subventionnaire)

municipality

municipality has the meaning assigned by subsection 259(1) of the Act. (municipalité)

provincial qualifying amount

provincial qualifying amount, in respect of property or a service for a claim period of a person, means the portion of an amount included in the total determined under paragraph (a) of the definition non-creditable tax charged in subsection 259(1) of the Act that is tax under subsection 165(2) or section 212.1 or 218.1 of the Act or Division IV.1 of Part IX of the Act paid or payable, or deemed to have been paid or collected, by the person or that is an amount, in relation to an amount of tax under subsection 165(2) or section 212.1 or 218.1 of the Act or Division IV.1 of Part IX of the Act, required to be added in determining the net tax of the person, and

• (a) that is not included in determining an input tax credit of the person,

• (b) for which it cannot reasonably be regarded that the person has obtained or is entitled to obtain a rebate, refund or remission of the amount under any provision of the Act other than section 259 or under any other Act of Parliament, and

• (c) that is not included in an amount adjusted, refunded or credited to or in favour of the person for which a credit note referred to in subsection 232(3) of the Act has been received by the person or a debit note referred to in that subsection has been issued by the person. (montant admissible provincial)

Prescribed Government Organizations

2.1 For the purpose of the definition non-profit organization in subsection 259(1) of the Act, a person that is a specified Crown agent or an agent of Her Majesty in right of a province and that would be a non-profit organization within the meaning assigned by subsection 123(1) of the Act if the definition of that expression were read without reference to “a government” is a prescribed government organization.

Percentage of Government Funding

• 3 (1) For the purposes of the definition percentage of government funding in subsection 259(1) of the Act, the percentage in respect of a particular person for a fiscal year of the particular person shall be determined as the greater of

  • (a) the percentage determined by the formula

    A ÷ (A + B + C - D) × 100

    where

    A

    is the amount, if any, by which the total of all amounts, each of which is identified in the annual financial statements of the particular person for the year as government funding of the particular person that is received or became receivable in the year (depending upon the method followed by the person in determining the particular person’s revenue or funding for the year), exceeds the total of all government funding of the particular person that is repaid in the year by the particular person or that became receivable by the particular person before the beginning of the year and is not received before the end of the year,

    B

    is the total of

    • (i) all monetary gifts, other than government funding of the particular person, that are received in the year by the particular person,

    • (ii) the total of all amounts each of which is the amount, if any, by which the fair market value, at the time of receipt, of a financial instrument received by the particular person in the year exceeds the consideration paid or payable by the particular person for the financial instrument, where that value is readily determinable at that time,

    • (iii) the amount, if any, by which

      • (A) the total of all consideration that becomes due, or is paid without becoming due, in the year to the particular person for supplies made by the particular person, including all consideration for a service, or for the use of property, that is provided by the particular person and to which section 135 of the Act applies, but not including any consideration for

        • (I) supplies of rights to participate in games of chance conducted by the particular person,

        • (II) supplies deemed under section 187 of the Act to have been made by the particular person,

        • (III) supplies by way of sale of real property or capital property of the particular person,

        • (IV) supplies of financial instruments, and

        • (V) supplies deemed under any of subsections 171(3), 172(2) and 183(4) to (6) of the Act to have been made by the particular person or supplies by the particular person to which subsection 173(1) of the Act applies,

      exceeds

      • (B) the total of all amounts paid or credited to recipients in the year as or on account of a reduction in, or a rebate or refund of, all or part of the consideration for supplies made by the particular person to the recipients, and

    • (iv) the amount, if any, by which

      • (A) the total of all amounts each of which is consideration that becomes due, or is paid without becoming due, in the year to the particular person for a supply of a right to participate in a game of chance conducted by the particular person or for a supply deemed under section 187 of the Act to have been made in the year by the particular person in respect of a bet

      exceeds

      • (B) the total of all amounts each of which is an amount of money paid or payable by the particular person as a prize or winnings in the game or in satisfaction of the bet or is consideration paid or payable by the particular person for property or a service that is given as a prize or winnings in the game or in satisfaction of the bet,

    C

    is the total of

    • (i) all amounts each of which is an amount of money that is interest or a dividend and that is received in the year by the particular person,

    • (ii) all amounts of money that are distributed in the year to the particular person by a trust in respect of a right of the particular person as a beneficiary (within the meaning of paragraph 108(1)(b) of the Income Tax Act) under the trust otherwise than as a distribution of capital,

    • (iii) all amounts that become due, or are paid without becoming due, in the year to the particular person in respect of a debt security issued by the particular person to, or a loan from,

      • (A) another person with whom the particular person was not dealing at arm’s length at the time the loan was made or the security was issued, as the case may be, or

      • (B) another person who was, is or agrees to become an officer, employee, shareholder, partner or member of the particular person,

      but not including any amount in respect of a loan where the interest on the loan is payable at least annually at a rate that would be reasonable, having regard to all the circumstances, had the loan been made between parties dealing with each other at arm’s length,

    • (iv) all consideration that becomes due, or is paid without becoming due, in the year to the particular person for an equity security issued by the particular person, and

    • (v) all monetary contributions of capital that are received in the year by the particular person, other than government funding of the particular person and amounts included in any of subparagraphs (i) to (iv), and

    D

    is the total of

    • (i) 25% of the total for B in this formula determined in respect of the year, and

    • (ii) all amounts paid in the year by the particular person as repayments of amounts that are included in the total for B or C for the year or would be so included if the amounts had been received by the particular person in the year, and

  • (b) the percentage that is equal to

    • (i) where the year is the first fiscal year of the particular person, zero,

    • (ii) where the year is the second fiscal year of the particular person, the percentage that would be determined under paragraph ( a) if all references therein to “the year” were references to “the first fiscal year of the particular person”, and

    • (iii) in any other case, the percentage that would be determined under paragraph ( a) if all references therein to “the year” were references to “the two immediately preceding fiscal years of the particular person”.

• (2) Where the denominator of the fraction in the formula set out in paragraph (1)(a) is nil or a negative amount, that denominator shall be deemed to be equal to

  • (a) where the numerator of that fraction is nil, 1; and

  • (b) in any other case, the numerator of that fraction.

Prescribed Property and Services

• 4 (1) For the purpose of determining a rebate payable to a particular person under section 259 of the Act, a prescribed property or service is

  • (a) property or a service that is primarily for consumption, use or supply by the particular person in the course of making supplies by way of lease, licence or similar arrangement of a residential complex or a residential unit (other than supplies of short-term accommodation and supplies that are exempt supplies by reason of paragraph 6(b) or section 6.1 of Part I of Schedule V to the Act), where

    • (i) in the case of property or a service that is primarily for consumption, use or supply in the course of making supplies of residential units in a multiple unit residential complex that contains more than two residential units and

      • (A) that is owned by the particular person, or

      • (B) that has been supplied by way of lease, licence or similar arrangement to the particular person,

      all or substantially all of the residential units in the complex are supplied for the purpose of occupancy that is not restricted to

      • (C) seniors

      • (D) youths,

      • (E) students,

      • (F) individuals with a disability, individuals in distress or other individuals in need of assistance,

      • (G) individuals whose eligibility for occupancy of the complex or unit or for reduced lease payments is dependent on a means or income test,

      • (H) individuals for whose benefit no other persons, other than public sector bodies, pay consideration for the supplies of the accommodation and who either pay no consideration for the supplies or pay consideration that is significantly less than the consideration that could reasonably be expected to be paid for comparable supplies made by a person in the business of making such supplies for the purpose of earning a profit, or

      • (I) any combination of individuals described in any of clauses (C) to (H), and

    • (ii) in any other case, the principal purpose of the particular person in carrying on the activity of supplying the complex or unit is other than to provide accommodation for individuals described in any of clauses (i)(C) to (H);

  • (b) property or a service that is primarily for consumption, use or supply by the particular person in the course of making a supply of a parking space included in section 8.1 of Part I of Schedule V to the Act for a given period, if the supply is incidental to the use of land, a residential complex or a residential unit and property and services for use by the particular person primarily in the course of making supplies by way of lease, licence or similar arrangement of the land, residential complex or residential unit during the period are prescribed property or services because of paragraph (a);

  • (c) property or a service that is primarily for consumption, use or supply by the particular person in the course of making

    • (i) supplies of land, a building or a part of a building to a person other than a public sector body, where the supplies are exempt supplies by reason of section 6.1 of Part I of Schedule V to the Act, or

    • (ii) exempt supplies of parking spaces, where those supplies are incidental to the use of the land, building or part of a building;

  • (d) property or a service that is primarily for consumption, use or supply by the particular person in the course of making

    • (i) supplies of land, a building or a part of a building to a public sector body for a period, where the supplies are exempt supplies by reason of section 6.1 of Part I of Schedule V to the Act and the property or service would be a prescribed property or service by reason of paragraph (a) if the supplies of the land, building or part of a building that are made during that period by the body were made by the particular person, or

    • (ii) exempt supplies of parking spaces, where those supplies are incidental to the use of the land, building or part of a building;

  • (e) excisable goods that are acquired by the particular person for the purpose of making a supply of the excisable goods for consideration that is not included as part of the consideration for a meal supplied together with the excisable goods, except where tax is payable in respect of the supply by the particular person of the excisable goods;

  • (f) a membership in a club the main purpose of which is to provide dining, recreational or sporting facilities;

  • (g) property or a service that is acquired, imported or brought into a participating province by the particular person exclusively for the personal consumption, use or enjoyment (in this paragraph referred to as the “benefit”) of a particular individual who was, is or agrees to become an officer, employee or member of the particular person, or of another individual related to the particular individual, except if

    • (i) the particular person supplies the property or service to the particular individual or the other individual for consideration that becomes due in the year in which the property or service was acquired or imported, or brought into the participating province, as the case may be, by the particular person and that is equal to the fair market value of the property or service at the time the consideration becomes due and tax is payable in respect of the supply, or

    • (ii) if no amount were payable by the particular individual for the benefit, no amount in respect of the benefit would be included under section 6 of the Income Tax Act in computing the income of the particular individual for the purposes of that Act;

  • (h) property or a service that is supplied to another person if

    • (i) an amount is required under paragraph 6(1)(a), (e), (k) or (l) or subsection 15(1) of the Income Tax Act to be included in computing the income of the other person for the purposes of that Act, and

    • (ii) subsection 173(1) of the Excise Tax Act does not apply to the supply or the subsection does apply to the supply but no tax is payable in respect of it;

  • (i) property or a service that is deemed under section 273 of the Act to be acquired, imported or brought into a participating province by the particular person acting as the operator (within the meaning of that section) of a joint venture in respect of which an election under that section is in effect, if any of the co-venturers (within the meaning of that section) of the joint venture would not be entitled to claim a rebate under section 259 of the Act in respect of the property or service if it were otherwise acquired, imported or brought in by the co-venturer for the same purpose as that for which it is acquired, imported or brought in by the particular person on behalf of the co-venturer and if tax were payable by the co-venturer in respect of that property or service; and

  • (j) a returnable container (within the meaning assigned by section 226 of the Act) when acquired or brought into a participating province by a person in circumstances in which the person, if a registrant, would, because of subsection 226(4) of the Act, not be entitled to include tax in respect of the acquisition or bringing into the province of the container in determining an input tax credit of the person, whether the person would otherwise have been so entitled in the absence of that subsection.

• (2) Paragraph (1)(a) applies, with such modifications as the circumstances require, in respect of property or a service for consumption, use or supply in the course of making a supply of land included in section 7 of Part I of Schedule V to the Act as if the land were a residential complex.

Specified Provincial Percentages

Marginal note:Prescribed provinces, classes and percentages

5 For the purposes of paragraph (f) of the definition specified provincial percentage in subsection 259(1) of the Act,

• (a) the following participating provinces are prescribed:

  • (i) Ontario,

  • (ii) Nova Scotia,

  • (iii) New Brunswick,

  • (iv) [Repealed, SOR/2012-191, s. 7]

  • (iv.1) Prince Edward Island, and

  • (v) Newfoundland and Labrador;

• (b) the following classes of persons are prescribed:

  • (i) charities, or qualifying non-profit organizations, that are not selected public service bodies,

  • (ii) hospital authorities,

  • (iii) school authorities,

  • (iv) universities or public colleges,

  • (v) municipalities, and

  • (vi) facility operators or external suppliers; and

• (c) the following percentages are prescribed:

  • (i) in the case of a person referred to in subparagraph (b)(i) that is resident in

    • (A) Ontario, 82%,

    • (B) Nova Scotia, 50%,

    • (C) New Brunswick, 50%,

    • (D) [Repealed, SOR/2012-191, s. 7]

    • (D.1) Prince Edward Island, 50%, and

    • (E) Newfoundland and Labrador, 50%,

  • (ii) in the case of a person referred to in subparagraph (b)(ii) that is resident in

    • (A) Ontario, 87%,

    • (B) Nova Scotia, 83%, and

    • (C) New Brunswick, 100%,

  • (iii) in the case of a person referred to in subparagraph (b)(iii) that is resident in

    • (A) Ontario, 93%,

    • (B) Nova Scotia, 68%, and

    • (C) New Brunswick, 100%,

  • (iv) in the case of a person referred to in subparagraph (b)(iv) that is resident in

    • (A) Ontario, 78%, and

    • (B) Nova Scotia, 67%,

    • (C) [Repealed, SOR/2012-191, s. 7]

  • (iv.1) in the case of a public college that is resident in New Brunswick, 100%,

  • (v) in the case of a person referred to in subparagraph (b)(v) that is resident in

    • (A) Ontario, 78%,

    • (B) Nova Scotia, 57.14%,

    • (C) New Brunswick, 57.14%, and

    • (D) Newfoundland and Labrador, 57.14%, and

  • (vi) in the case of a person referred to in subparagraph (b)(vi) that is resident in Ontario, 87%.

Apportionment of Rebate

Marginal note:Extent of use, consumption or supply — relevant time

5.1 Where reference is made to a relevant time in subsection 5.2(2), 5.3(2) or 5.4(2) for the purposes of determining the extent to which a person intended to consume, use or supply property or a service in the course of certain activities in relation to a federal qualifying amount or provincial qualifying amount in respect of the property or service, the relevant time is

• (a) in the case of a federal qualifying amount or provincial qualifying amount that is an amount of tax in respect of a supply made to, or an importation or bringing into a participating province of the property by, the person at any time, that time;

• (b) in the case of a federal qualifying amount or provincial qualifying amount that is an amount deemed to have been paid or collected at any time by the person, that time;

• (c) in the case of a federal qualifying amount or provincial qualifying amount that is an amount required to be added under subsection 129(7) of the Act in determining the person’s net tax as a result of a branch or division of the person becoming a small supplier division at any time, that time; and

• (d) in the case of a federal qualifying amount or provincial qualifying amount that is an amount required to be added under paragraph 171(4)(b) of the Act in determining the person’s net tax as a result of the person ceasing, at any time, to be a registrant, that time.

Marginal note:Prescribed classes — subsection 259(3)

• 5.2 (1) For the purposes of paragraph 259(3)(b) of the Act, the following classes of persons are prescribed:

  • (a) charities that are not selected public service bodies and that are resident in two or more provinces;

  • (b) qualifying non-profit organizations that are not selected public service bodies and that are resident in two or more provinces; and

  • (c) selected public service bodies that are neither charities nor qualifying non-profit organizations and that are resident in two or more provinces.

• Marginal note:Prescribed manner — subsection 259(3)

  (2) For the purpose of determining an amount of a rebate under subsection 259(3) of the Act in respect of a claim period of a person referred to in subsection (1), the amount under paragraph 259(3)(b) of the Act is equal to the total of all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of property or a service (other than property or a service prescribed by section 4) for the claim period for each participating province in which the person is resident — by the formula

  A × B × C

  where

  A

  is the specified provincial percentage applicable to the person in relation to the participating province;

  B

  is the provincial qualifying amount; and

  C

  is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the participating province.

• Marginal note:Selected public service bodies

  (3) If a person brings tangible personal property into a participating province on or after a day that is the later of July 1, 2010 and the day on which this section is first published in the Canada Gazette, subsection 259(7) of the Act is adapted as follows:

  • (7) If a selected public service body acquires, imports or brings into a participating province property or a service primarily for consumption, use or supply in the course of activities engaged in by another selected public service body, for the purpose of determining the amount of a rebate under this section to the body in respect of the non-creditable tax charged in respect of the property or service for any claim period of the body, the body is deemed to be engaged in those activities.

• Marginal note:Selected public service bodies

  (4) If a person brings tangible personal property into a participating province on or after a day that is the later of July 1, 2010 and the day on which this section is first published in the Canada Gazette, subsection 259(8) of the Act is adapted as follows:

  • (8) If a person acquires, imports or brings into a participating province property or a service primarily for consumption, use or supply in the course of activities engaged in by the person acting in the capacity of a selected public service body described in any of paragraphs (a) to (g) of the definition selected public service body in subsection (1), the amount of any rebate under this section to the person in respect of the non-creditable tax charged in respect of the property or service for a claim period shall be determined as if the person were not a selected public service body described in any other of those paragraphs.

• Marginal note:Selected public service bodies

  (5) If a person that is a selected public service body acquires, imports or brings into a participating province property or a service primarily for consumption, use or supply in the course of activities engaged in by another selected public service body, for the purposes of applying subsection (2) to the person in relation to a provincial qualifying amount in respect of the property or service for a claim period of the person, the person is deemed to be engaged in those activities.

• Marginal note:Selected public service bodies

  (6) If a person acquires, imports or brings into a participating province property or a service primarily for consumption, use or supply in the course of activities engaged in by the person acting in the capacity of a selected public service body described in any of paragraphs (a) to (g) of the definition selected public service body in subsection 259(1) of the Act, the amount determined under subsection (2) in relation to a provincial qualifying amount in respect of the property or service for a claim period shall be determined as if the person were not a selected public service body described in any other of those paragraphs.

Marginal note:Prescribed classes — subsection 259(4)

• 5.3 (1) For the purposes of paragraph 259(4)(b) of the Act, persons that are resident in two or more provinces are persons of a prescribed class.

• Marginal note:Prescribed manner — subsection 259(4)

  (2) For the purpose of determining an amount of a rebate under subsection 259(4) of the Act in respect of a claim period of a person referred to in subsection (1), the amount determined under paragraph 259(4)(b) of the Act is equal to the total of all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of property or a service for the claim period for each participating province in which the person is resident — by the formula

  A × B × C

  where

  A

  is the specified provincial percentage applicable to a municipality resident in the participating province;

  B

  is the provincial qualifying amount; and

  C

  is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of the designated activities in the participating province.

Marginal note:Prescribed classes — subsection 259(4.1)

• 5.4 (1) For the purposes of subsection 259(4.1) of the Act, the following classes of persons are prescribed:

  • (a) charities that are selected public service bodies;

  • (b) public institutions that are selected public service bodies; and

  • (c) qualifying non-profit organizations that are selected public service bodies.

• Marginal note:Prescribed manner — subsection 259(4.1)

  (2) For the purpose of subsection 259(4.1) of the Act, the rebate in respect of property or a service (other than property or a service prescribed by section 4) for a claim period of a person referred to in subsection (1) is equal to the total of

  • (a) 50% of the total of all federal qualifying amounts in respect of the property or service for the claim period,

  • (b) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period for each participating province in which the person is resident — by the formula

    A × B × C

    where

    A

    is

    • (i) 0%, if the person is

      • (A) a selected public service body described in any of paragraphs (a) to (e) of the definition selected public service body in subsection 259(1) of the Act that is resident in the participating province (other than a public college that is resident in New Brunswick) and the specified provincial percentage applicable to that selected public service body is 0%,

      • (A.1) a selected public service body described in paragraph (e) of the definition selected public service body in subsection 259(1) of the Act and the participating province is Newfoundland and Labrador, or

      • (B) a selected public service body described in paragraph (f) or (g) of the definition selected public service body in subsection 259(1) of the Act and the participating province is Prince Edward Island or Newfoundland and Labrador, and

    • (ii) 50%, in any other case,

    B

    is the provincial qualifying amount, and

    C

    is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the participating province,

  • (c) in the case of a person designated for the purposes of section 259 of the Act to be a municipality in respect of activities (in this paragraph referred to as the “designated activities”) specified in the designation that consumes, uses or supplies the property or service in the course of the designated activities, the total of

    • (i) all amounts, each of which is determined — in relation to a federal qualifying amount in respect of the property or service for the claim period — by the formula

      A × B × C

      where

      A

      is the specified percentage applicable to a municipality minus 50%,

      B

      is the federal qualifying amount, and

      C

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of the designated activities, and

    • (ii) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period for each participating province in which the person is resident — by the formula

      D × E × F

      where

      D

      is the greater of

      • (A) the specified provincial percentage applicable to a municipality resident in the participating province minus 50%, and

      • (B) 0%,

      E

      is the provincial qualifying amount, and

      F

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of the designated activities in the participating province,

  • (d) in the case of a person determined to be a municipality under paragraph (b) of the definition municipality in subsection 123(1) of the Act that consumes, uses or supplies the property or service in the course of fulfilling the person’s responsibilities as a local authority, the total of

    • (i) all amounts, each of which is determined — in relation to a federal qualifying amount in respect of the property or service for the claim period — by the formula

      A × B × C

      where

      A

      is the specified percentage applicable to a municipality minus 50%,

      B

      is the federal qualifying amount, and

      C

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of fulfilling the person’s responsibilities as a local authority, and

    • (ii) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period for each participating province in which the person is resident — by the formula

      D × E × F

      where

      D

      is the greater of

      • (A) the specified provincial percentage applicable to a municipality resident in the participating province minus 50%, and

      • (B) 0%,

      E

      is the provincial qualifying amount, and

      F

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of fulfilling the person’s responsibilities as a local authority in the participating province,

  • (e) in the case of a person that, acting in the person’s capacity as a hospital authority, consumes, uses or supplies the property or service in the course of activities engaged in by the person in the course of operating a public hospital, of operating a qualifying facility for use in making facility supplies or of making facility supplies, ancillary supplies or home medical supplies, the total of

    • (i) all amounts, each of which is determined — in relation to a federal qualifying amount in respect of the property or service for the claim period — by the formula

      A × B × C

      where

      A

      is the specified percentage applicable to a hospital authority minus 50%,

      B

      is the federal qualifying amount, and

      C

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of operating a public hospital, of operating a qualifying facility for use in making facility supplies or of making facility supplies, ancillary supplies or home medical supplies, and

    • (ii) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period for each participating province in which the person is resident — by the formula

      D × E × F

      where

      D

      is the greater of

      • (A) the specified provincial percentage applicable to a hospital authority resident in the participating province minus 50%, and

      • (B) 0%,

      E

      is the provincial qualifying amount, and

      F

      is

      • (A) if the participating province is Ontario, the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person

        • (I) in the course of operating a public hospital in the participating province or of operating a qualifying facility in the participating province for use in making facility supplies, or

        • (II) in the participating province in the course of making facility supplies, ancillary supplies or home medical supplies, and

      • (B) in any other case, the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of operating a public hospital in the participating province,

  • (f) in the case of a person that, acting in the person’s capacity as a facility operator or external supplier, consumes, uses or supplies the property or service in the course of activities engaged in by the person in the course of operating a qualifying facility for use in making facility supplies or of making facility supplies, ancillary supplies or home medical supplies, the total of

    • (i) all amounts, each of which is determined — in relation to a federal qualifying amount in respect of the property or service for the claim period — by the formula

      A × B × C

      where

      A

      is the specified percentage applicable to a facility operator or external supplier minus 50%,

      B

      is the federal qualifying amount, and

      C

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of operating a qualifying facility for use in making facility supplies or of making facility supplies, ancillary supplies or home medical supplies, and

    • (ii) all amounts, each of which is an amount determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period for each participating province in which the person is resident — by the formula

      D × E × F

      where

      D

      is the greater of

      • (A) the specified provincial percentage applicable to a facility operator or external supplier resident in the participating province minus 50%, and

      • (B) 0%,

      E

      is the provincial qualifying amount, and

      F

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person

      • (A) in the course of operating a qualifying facility in the participating province for use in making facility supplies, or

      • (B) in the participating province in the course of making facility supplies, ancillary supplies or home medical supplies,

  • (g) in the case of a person that, acting in the person’s capacity as a school authority, consumes, uses or supplies the property or service in activities engaged in by the person in the course of operating an elementary or secondary school, the total of

    • (i) all amounts, each of which is determined — in relation to a federal qualifying amount in respect of the property or service for the claim period — by the formula

      A × B × C

      where

      A

      is the specified percentage applicable to a school authority minus 50%,

      B

      is the federal qualifying amount, and

      C

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of operating an elementary or secondary school, and

    • (ii) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period for each participating province in which the person is resident — by the formula

      D × E × F

      where

      D

      is the greater of

      • (A) the specified provincial percentage applicable to a school authority resident in the participating province minus 50%, and

      • (B) 0%,

      E

      is the provincial qualifying amount, and

      F

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of operating an elementary or secondary school in the participating province,

  • (h) in the case of a person that, acting in the person’s capacity as a university or public college, consumes, uses or supplies the property or service in activities engaged in by the person in the course of operating a recognized degree-granting institution, a college affiliated with, or research body of, such an institution or of operating a post-secondary college or post-secondary technical institute, the total of

    • (i) all amounts, each of which is determined — in relation to a federal qualifying amount in respect of the property or service for the claim period — by the formula

      A × B × C

      where

      A

      is the specified percentage applicable to a university or public college minus 50%,

      B

      is the federal qualifying amount, and

      C

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of operating a recognized degree-granting institution, a college affiliated with, or research body of, such an institution or of operating a post-secondary college or post-secondary technical institute, and

    • (ii) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period for each participating province (other than New Brunswick) in which the person is resident — by the formula

      D × E × F

      where

      D

      is the greater of

      • (A) the specified provincial percentage applicable to a university or public college resident in the participating province minus 50%, and

      • (B) 0%,

      E

      is the provincial qualifying amount, and

      F

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of operating a recognized degree-granting institution, a college affiliated with, or research body of, such an institution or of operating a post-secondary college or post-secondary technical institute in the participating province,

  • (i) in the case of a person resident in Ontario, the total of all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period — by the formula

    A × B × C

    where

    A

    is 32%,

    B

    is the provincial qualifying amount, and

    C

    is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service, in the course of activities, other than activities in respect of which any of paragraphs (c) to (h) applies, engaged in by the person in Ontario,

  • (j) in the case of a person resident in New Brunswick that is a public college, the total of all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period — by the formula

    A × B × C

    where

    A

    is 50%,

    B

    is the provincial qualifying amount, and

    C

    is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service, in the course of activities engaged in by the person in the course of operating a post-secondary college or post-secondary technical institute in New Brunswick,

  • (k) in the case of a person resident in Prince Edward Island, the total of all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period — by the formula

    A × B × C

    where

    A

    is 50%,

    B

    is the provincial qualifying amount, and

    C

    is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service, in the course of activities, other than activities in respect of which any of paragraphs (c) to (h) applies, engaged in by the person in Prince Edward Island,

  • (l) in the case of a person resident in Newfoundland and Labrador that is designated for the purposes of section 259 of the Act to be a municipality in respect of activities (in this paragraph referred to as the “designated activities”) specified in the designation, the total of

    • (i) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period — by the formula

      A × B × C

      where

      A

      is 50%,

      B

      is the provincial qualifying amount, and

      C

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of the designated activities in Newfoundland and Labrador, and

    • (ii) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period — by the formula

      D × E × F

      where

      D

      is 50%,

      E

      is the provincial qualifying amount, and

      F

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service, in the course of activities, other than activities in respect of which subparagraph (i) or any of paragraphs (c) to (h) applies, engaged in by the person in Newfoundland and Labrador, and

  • (m) in the case of a person resident in Newfoundland and Labrador that is determined to be a municipality under paragraph (b) of the definition municipality in subsection 123(1) of the Act, the total of

    • (i) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period — by the formula

      A × B × C

      where

      A

      is 50%,

      B

      is the provincial qualifying amount, and

      C

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service in the course of activities engaged in by the person in the course of fulfilling the person’s responsibilities as a local authority in Newfoundland and Labrador, and

    • (ii) all amounts, each of which is determined — in relation to a provincial qualifying amount in respect of the property or service for the claim period — by the formula

      D × E × F

      where

      D

      is 50%,

      E

      is the provincial qualifying amount, and

      F

      is the extent (expressed as a percentage) to which the person intended, at the relevant time, to consume, use or supply the property or service, in the course of activities, other than activities in respect of which subparagraph (i) or any of paragraphs (c) to (h) applies, engaged in by the person in Newfoundland and Labrador.

• Marginal note:Non-application — subsection 259(4.3) of Act

  (2.1) For the purposes of the new harmonized value-added tax system, subsection 259(4.3) of the Act does not apply in determining the amount of a rebate under section 259 of the Act payable to a person that is a municipality resident in Newfoundland and Labrador.

• Marginal note:Federal qualifying amount — specified supplies

  (3) Despite paragraphs (2)(e) and (f), if a person that is a hospital authority, a facility operator or an external supplier is the recipient of a specified supply of property in respect of which an amount of tax, at any time, becomes payable or is paid without having become payable and that amount of tax is a federal qualifying amount in respect of the property, for the purposes of determining a particular amount under either of those paragraphs in respect of the property for the claim period that includes that time, the federal qualifying amount referred to in the description of B in either of those paragraphs to be used in determining the particular amount in respect of consumption, use or supply of the property in the course of activities in respect of which either of those paragraphs applies, other than activities engaged in by the person in the course of operating a public hospital, is determined by the formula

  A × B

  where

  A

  is the amount that would, in the absence of this subsection, be determined to be the federal qualifying amount in relation to that tax; and

  B

  is the amount determined by the formula

  (C - D) / C

  where

  C

  is the fair market value of the property at the time the specified supply is made, and

  D

  is the fair market value of the property on January 1, 2005.

Prescribed Method of Calculating Rebate

• 6 (1) For the purpose of section 7, the threshold amount for a fiscal year of a person is equal to the total of

  • (a) the amount determined by the formula

    A × 365/B

    where

    A

    is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the person) made by the person that became due, or was paid without having become due, to the person in the immediately preceding fiscal year (in this subsection referred to as the “base year”) of the person, and

    B

    is the number of days in the base year, and

  • (b) the total of all amounts each of which is an amount in respect of another person (in this paragraph referred to as the “associate”) who was associated with the person at the end of the particular fiscal year of the associate that is the last fiscal year of the associate ending in the base year and is determined by the formula

    C × 365/D

    where

    C

    is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the associate) made by the associate that became due, or was paid without having become due, to the associate in the particular fiscal year, and

    D

    is the number of days in the particular fiscal year.

• (2) For the purpose of section 7, the threshold amount for a particular fiscal quarter in a particular fiscal year of a person is equal to the total of

  • (a) all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the person) made by the person that became due, or was paid without having become due, to the person in the preceding fiscal quarters in the particular fiscal year, and

  • (b) all amounts each of which is an amount in respect of another person (in this paragraph referred to as the “associate”) who was associated with the person at the beginning of the particular fiscal quarter and is equal to the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the associate) made by the associate that became due, or was paid without having become due, to the associate in the fiscal quarters of the associate that end in the particular fiscal year before the beginning of the particular fiscal quarter.

• (3) For the purposes of subsections (1) and (2), if consideration, or a part of it, for a taxable supply (other than a supply by way of sale of real property) made by a person in the course of activities engaged in by the person in a branch or division of the person becomes due, or is paid without having become due, to the person at a time when the branch or division is a small supplier division (within the meaning of subsection 129(1) of the Act), that consideration or part of it, as the case may be, is deemed not to be consideration for a taxable supply.

• (4) For the purpose of section 7, the purchase threshold for a fiscal year of a person is equal to the total of all amounts each of which

  • (a) is an amount that became due, or was paid without having become due, by the person in the immediately preceding fiscal year of the person for a taxable supply, other than a zero-rated supply, of property or a service that was acquired in Canada by the person or was acquired outside Canada by the person and imported by the person; and

  • (b) is either

    • (i) included in determining the cost to the person of the property or service for the purposes of the Income Tax Act, or

    • (ii) tax payable by the person in respect of the acquisition or importation of the property or service.

• (5) If property or a service is acquired by a person for consumption, use or supply in the course of activities engaged in by the person in a branch or division of the person and, at a time when the branch or division is a small supplier division (within the meaning of subsection 129(1) of the Act), an amount becomes due, or is paid without having become due, by the person for the supply of the property or service to the person, the amount shall not be included in determining the purchase threshold under subsection (4) for any fiscal year of the person.

• (6) For the purposes of this section and sections 7 and 8, if consideration for a supply of property or a service is deemed by section 152 of the Act to become due on a particular day and an amount of a tax, duty or fee that

  • (a) is prescribed by paragraph 3(b) or (c) of the Taxes, Duties and Fees (GST/HST) Regulations,

  • (b) is imposed in respect of the property or service, and

  • (c) is calculated on that consideration,

  has not become due on or before that day, the amount of that tax, duty or fee is deemed to have become due on that day.

• (7) For the purposes of this section and sections 7 and 8, if, under subsection 168(3), (6) or (7) of the Act, tax in respect of a supply of property or a service becomes payable by a person on a particular day,

  • (a) the consideration on which that tax is calculated, and

  • (b) any tax, duty or fee prescribed by paragraph 3(b) or (c) of the Taxes, Duties and Fees (GST/HST) Regulations that is payable by the person in respect of the property or service and has not become due on or before that day,

  are deemed to have become due on that day.

• 7 (1) A person is, on the first day of a claim period of the person, a prescribed person for the purpose of subsection 259(12) of the Act where

  • (a) the threshold amount for the person’s fiscal year that includes the claim period does not exceed $1,000,000;

  • (b) if the person’s fiscal quarter that includes the claim period is not the first fiscal quarter in the fiscal year, the threshold amount for the fiscal quarter does not exceed $1,000,000;

  • (c) the purchase threshold for the fiscal year does not exceed $4,000,000; and

  • (d) it is reasonable to expect at the beginning of the claim period that the purchase threshold for the person’s next fiscal year will not exceed $4,000,000.

• (2) A person ceases to be a prescribed person for the purpose of subsection 259(12) of the Act at the earliest of

  • (a) if the threshold amount for a fiscal year of the person exceeds $1,000,000, the end of the first fiscal quarter in that fiscal year,

  • (b) if the threshold amount for the second or third fiscal quarter in a fiscal year of the person exceeds $1,000,000, the end of the first fiscal quarter in that year for which the threshold amount exceeds $1,000,000, and

  • (c) if the purchase threshold for a fiscal year of the person exceeds $4,000,000, the end of the first fiscal quarter in that fiscal year.

• 8 (1) If

  • (a) personal property or a service is supplied in Canada to a particular person by another person or tangible personal property is supplied outside Canada to a particular person by another person and imported by the particular person, and

  • (b) the particular person is entitled to claim a rebate under section 259 of the Act in respect of the property or service for any claim period of the particular person,

  for the purpose of determining in accordance with these Regulations the amount of a rebate under that section in respect of the property or service for a particular claim period of the particular person, the amount of tax under subsection 165(1) or (2) or section 212 or 212.1 of the Act, as the case may be, that became payable, or was paid without having become payable, by the particular person during the particular claim period in respect of the supply or importation of the property or service is deemed to be equal to the amount determined by the formula

  A x B

  where

  A

  is

  • (a) if neither tax under subsection 165(2) of the Act nor tax under section 212.1 of the Act was payable in respect of the acquisition or importation, in the case of tax payable under subsection 165(1) or section 212 of the Act, the amount determined by the formula

    C/D

    where

    C

    is the rate set out in subsection 165(1) of the Act, and

    D

    is the total of 100% and the percentage determined for C, and

  • (b) if tax under subsection 165(2) or section 212.1 of the Act was payable in respect of the acquisition or importation,

    • (i) in the case of tax payable under subsection 165(1) or section 212 of the Act, the amount determined by the formula

      E/F

      where

      E

      is the rate set out in subsection 165(1) of the Act, and

      F

      is the total of 100%, the percentage determined for E and the tax rate for the participating province in which the supply was made or, in the case of an importation, in which the particular person is resident, and

    • (ii) in the case of tax payable under subsection 165(2) or section 212.1 of the Act, the amount determined by the formula

      G/H

      where

      G

      is the tax rate for the participating province in which the supply was made or, in the case of an importation, in which the particular person is resident, and

      H

      is the total of 100%, the percentage determined for G and the rate set out in subsection 165(1) of the Act, and

  B

  is the total of all amounts each of which is

  • (a) the consideration that became due, or was paid without having become due, by the particular person during the period in respect of the supply of the property or service to the particular person,

  • (b) the tax under Division II or III of Part IX of the Act that became payable, or was paid without having become payable, by the particular person during the period in respect of the supply or importation of the property or service,

  • (c) in the case of tangible personal property that was imported by the particular person, the amount of a tax or duty imposed in respect of the property under the Act (other than Part IX), the Customs Act, the Special Import Measures Act or any other law relating to customs that became due, or was paid without having become due, by the particular person during the period,

  • (d) the amount of a tax, duty or fee prescribed by paragraph 3(b) or (c) of the Taxes, Duties and Fees (GST/HST) Regulations that became due, or was paid without having become due, by the particular person during the period in respect of the property or service, other than tax imposed under an Act of the legislature of a province to the extent that the tax is recoverable by the particular person under that Act,

  • (e) a reasonable gratuity paid by the particular person during the period in connection with the supply, or

  • (f) interest, a penalty or other amount paid by the particular person during the period if the amount was charged to the particular person by the supplier of the property or service because an amount of consideration, or an amount of a tax, duty or fee referred to in paragraph (c) or (d), that was payable in respect of the supply or importation was overdue.

• (2) For the purpose of determining in accordance with these Regulations the amount of a rebate under section 259 of the Act payable to a partnership, employer, charity or public institution in respect of property or a service acquired or imported by a member of the partnership, an employee of the employer, or a volunteer who has given services to the charity or public institution and in respect of which the member, employee or volunteer was liable to pay tax under Division II or III of Part IX of the Act, the amount of that tax is deemed, for the purpose of applying section 175 of the Act, to be equal to the amount that would be determined under subsection (1) if that subsection applied to the acquisition or importation by the member, employee or volunteer.