Legislative and Regulatory Proposals relating to the Excise Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act, the Greenhouse Gas Pollution Pricing Act, the Underused Housing Tax Act and the Select Luxury Items Tax Act
PART 1Draft Amendments to the Excise Tax Act
1 (1) The definition bank in subsection 123(1) of the Excise Tax Act is replaced by the following:
- bank
bank means a bank or an authorized foreign bank, as those terms are defined in section 2 of the Bank Act, but does not include a credit union; (banque)
(2) Subsection (1) is deemed to have come into force on December 19, 2012.
2 (1) Paragraph 149(5)(a) of the Act is amended by adding the following after subparagraph (iv.1):
(iv.2) a first home savings account,
(2) Subsection (1) applies in respect of any taxation year of a person that begins after Announcement Date.
3 (1) Paragraph 205(4)(a) of the Act is replaced by the following:
(a) in acquiring a business or part of a business from a registrant, a financial institution that is a registrant is deemed under subsection 167(1.1) to have acquired property for use exclusively in commercial activities of the institution, and
(2) Subsection 205(5) of the Act is repealed.
(3) Subsections (1) and (2) come into force on the day on which the Act enacting those subsections receives royal assent.
4 (1) The definition Canadian activity in section 217 of the Act is replaced by the following:
- Canadian activity
Canadian activity of a person means an activity of the person carried on, engaged in or conducted in Canada or an activity of the person in respect of
(a) an insurance policy that is issued by the person and that insures a risk in respect of property ordinarily situated in Canada or in respect of a person resident in Canada;
(b) a debt that arises from
(i) the deposit of funds in Canada, if the instrument issued as evidence of the deposit is a negotiable instrument, or
(ii) the lending of money that is primarily for use in Canada;
(c) a debt for all or part of the consideration for a supply of real property that is situated in Canada;
(d) a debt for all or part of the consideration for a supply of personal property that is for use primarily in Canada; or
(e) a debt for all or part of the consideration for a supply of a service that is to be performed primarily in Canada. (activité au Canada)
(2) Subsection (1) is deemed to have come into force on the day after Announcement Date. It also applies in respect of the specified year of a person that includes the day after Announcement Date.
5 (1) Paragraph 298(3)(b) of the Act is replaced by the following:
(b) with the consent in writing of the person, to dispose of an appeal of the person or another person; or
(2) Subsection (1) comes into force on the day on which the Act enacting that subsection receives royal assent.
PART 2Draft Amendments to the Excise Act, 2001
6 (1) Paragraph (a) of the definition sale price in section 2 of the Excise Act, 2001 is replaced by the following:
(a) the amount charged as the price for the cigars before an amount payable in respect of a tax under Part IX of the Excise Tax Act is added and before an amount of duty imposed on the cigars under section 43 is added,
(2) Subsection (1) comes into force on the day on which the Act enacting that subsection receives royal assent.
7 (1) The Act is amended by adding the following after section 6:
Marginal note:Negative amounts
6.1 Except as specifically otherwise provided, if an amount or a number is required under this Act to be determined or calculated by or in accordance with an algebraic formula and the amount or number when so determined or calculated would, in the absence of this section, be a negative amount or number, it is deemed to be zero.
(2) Subsection (1) comes into force on the day on which the Act enacting that subsection receives royal assent.
8 (1) Subsection 158.25(2) of the Act is replaced by the following:
Marginal note:Specified province — duty on cannabis taken for use
(2) If a particular person is responsible for cannabis products at a particular time when the cannabis products are taken for use, the cannabis products are relieved of the duty, if any, imposed under subsection 158.2(1) and a duty in respect of a specified province is imposed, in addition to the duty imposed under subsection (1), on the cannabis products in prescribed circumstances in the amount determined in prescribed manner.
(2) Subsection (1) is deemed to have come into force on Announcement Date.
9 (1) Subsection 158.26(2) of the Act is replaced by the following:
Marginal note:Specified province — duty on unaccounted cannabis
(2) If a particular person that is responsible at a particular time for cannabis products cannot account for the cannabis products as being, at the particular time, in the possession of a cannabis licensee or in the possession of another person in accordance with subsection 158.11(3) or paragraph 158.11(5)(a), the cannabis products are relieved of the duty, if any, imposed under subsection 158.2(1) and a duty in respect of a specified province is imposed, in addition to the duty imposed under subsection (1), on the cannabis products in prescribed circumstances in the amount determined in prescribed manner.
(2) Subsection (1) is deemed to have come into force on Announcement Date.
10 (1) Paragraph 158.6(1)(a) of the Act is replaced by the following:
(a) the vaping products are relieved of the duty imposed under section 158.57; and
(2) Subsection 158.6(2) of the Act is replaced by the following:
Marginal note:Specified vaping province — taken for use
(2) If a particular person is responsible for vaping products at a particular time when the vaping products are taken for use, the vaping products are relieved of the duty, if any, imposed under section 158.58 and a duty in respect of a specified vaping province is imposed, in addition to the duty imposed under subsection (1), on the vaping products in prescribed circumstances in the amount determined in prescribed manner.
(3) Subsections (1) and (2) are deemed to have come into force on Announcement Date.
11 (1) Paragraph 158.61(1)(a) of the Act is replaced by the following:
(a) the vaping products are relieved of the duty imposed under section 158.57; and
(2) Subsection 158.61(2) of the Act is replaced by the following:
Marginal note:Specified vaping province — unaccounted vaping products
(2) If a particular person that is responsible at a particular time for vaping products cannot account for the vaping products as being, at the particular time, in the possession of a vaping product licensee or in the possession of another person in accordance with subsection 158.44(3), the vaping products are relieved of the duty, if any, imposed under section 158.58 and a duty in respect of a specified vaping province is imposed, in addition to the duty imposed under subsection (1), on the vaping products in prescribed circumstances in the amount determined in prescribed manner.
(3) Subsections (1) and (2) are deemed to have come into force on Announcement Date.
12 (1) Paragraph 191(3)(b) of the Act is replaced by the following:
(b) with the consent in writing of the person, to dispose of an appeal of the person or another person; or
(2) Subsection (1) comes into force on the day on which the Act enacting that subsection receives royal assent.
PART 3Draft Amendments to the Air Travellers Security Charge Act
13 (1) Paragraph 42(2)(b) of the Air Travellers Security Charge Act is replaced by the following:
(b) with the written consent of the person, to dispose of an appeal of the person or another person.
(2) Subsection (1) comes into force on the day on which the Act enacting that subsection receives royal assent.
PART 4Draft Amendments to the Greenhouse Gas Pollution Pricing Act
14 (1) Paragraph 111(3)(b) of the Greenhouse Gas Pollution Pricing Act is replaced by the following:
(b) with the written consent of the person, to dispose of an appeal of the person or another person; or
(2) Subsection (1) comes into force on the day on which the Act enacting that subsection receives royal assent.
PART 5Draft Amendments to the Underused Housing Tax Act
15 (1) Paragraph 36(2)(b) of the Underused Housing Tax Act is replaced by the following:
(b) with the written consent of the person, to dispose of an appeal of the person or another person; or
(2) Subsection (1) comes into force on the day on which the Act enacting that subsection receives royal assent.
PART 6Draft Amendments to the Select Luxury Items Tax Act
16 (1) Paragraph 96(3)(b) of the Select Luxury Items Tax Act is replaced by the following:
(b) with the written consent of the person, to dispose of an appeal of the person or another person; or
(2) Subsection (1) comes into force on the day on which the Act enacting that subsection receives royal assent.
PART 7Draft Amendments to Various Regulations
DIVISION 1Financial Services and Financial Institutions (GST/HST) Regulations
17 (1) Section 3 of the Financial Services and Financial Institutions (GST/HST) Regulations is replaced by the following:
3 Any service in relation to the clearing and settlement of cheques and other payment items under the national payments system of the Canadian Payments Association that is supplied by the Association or any of its members, other than a person that is entitled to be a member of the Association only because of the application of paragraph 4(2)(i) of the Canadian Payments Act, is prescribed for the purposes of paragraph (m) of the definition financial service in subsection 123(1) of the Act.
(2) Subsection (1) comes into force on the day on which subsection 220(2) of the Fall Economic Statement Implementation Act, 2023 comes into force.
DIVISION 2Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations
18 (1) Paragraph (a) of the definition investment plan in subsection 1(1) of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations is replaced by the following:
(a) a trust governed by a registered retirement savings plan, a registered retirement income fund, a registered disability savings plan, a TFSA or a first home savings account; or
(2) Subsection (1) applies in respect of any reporting period of a person that ends after Announcement Date.
19 (1) The portion of subsection 24(2) of the Regulations before the formula is replaced by the following:
Marginal note:Determination of percentage
(2) If a selected listed financial institution, other than a bank, a credit union or an investment plan, is an insurer, the financial institution's percentage for a participating province and for a particular period in which it has a permanent establishment in that province is the amount, expressed as a percentage, determined by the formula
(2) The portion of subsection 24(2) of the Regulations before the formula is replaced by the following:
Marginal note:Determination of percentage
(2) Subject to subsection (4), if a selected listed financial institution, other than a bank, a credit union or an investment plan, is an insurer, the financial institution's percentage for a participating province and for a particular period in which it has a permanent establishment in that province is the amount, expressed as a percentage, determined by the formula
(3) Section 24 of the Regulations is amended by adding the following after subsection (3):
Marginal note:Nil net premiums
(4) If, in the absence of this subsection, subsection (2) would apply to determine a selected listed financial institution's percentage for a participating province and for a particular period and if the amount determined for B in the formula in subsection (2) in respect of the financial institution for the particular period is zero, the financial institution's percentage for the participating province and for the particular period is to be determined under subsection 23(2).
(4) Subsection (1) applies in respect of any reporting period of a person that begins after August 9, 2022.
(5) Subsections (2) and (3) apply in respect of any reporting period of a person that ends after Announcement Date.
20 (1) Paragraph 65(a) of the Regulations is replaced by the following:
(a) the occurrence of a plan merger to form an investment plan or a series of an investment plan is a prescribed circumstance; and
(2) Subsection (1) applies in respect of any reporting period of a person that begins after August 9, 2022.
21 (1) The portion of section 66 of the Regulations before paragraph (a) is replaced by the following:
Marginal note:Investment plan merger
66 If a plan merger occurs to form an investment plan or a series of an investment plan and if the investment plan is, immediately after the plan merger, a selected listed financial institution, the following rules apply:
(2) Subsection (1) applies in respect of any reporting period of a person that begins after August 9, 2022.
DIVISION 3Real Property (GST/HST) Regulations
22 (1) The Real Property (GST/HST) Regulations are amended by adding the following after section 3:
Marginal note:Share of a corporation
3.1 (1) For the purposes of this section and for greater certainty, a share of the capital stock of a corporation includes a share of the capital stock of a cooperative corporation.
Marginal note:Total consideration – supply of share
(2) For the purposes of this section, the total consideration for a supply to a person of a share in the capital stock of a corporation that confers a right in respect of a residential unit situated in a residential complex is the total of all amounts, each of which is the consideration payable for the supply to the person of the share or an interest in the corporation, the residential complex or the residential unit.
Marginal note:Excluded equity housing supply
(3) For the purposes of these Regulations, a taxable supply is an excluded equity housing supply of a residential complex if the taxable supply is a supply by way of sale to a corporation of the residential complex, an interest in the residential complex or an addition to the residential complex and it is the case that, in respect of a residential unit situated in the residential complex,
(a) the corporation makes a particular supply of a share of the capital stock of the corporation to a particular person;
(b) the share confers on the particular person a right to possess the residential unit or a right to enter into an agreement for the supply by the corporation of the residential unit to the particular person by way of a lease that is, or is similar to, an arrangement commonly referred to as a "proprietary lease"; and
(c) if the particular person were to make a subsequent supply of the share to the corporation or another person, the total consideration for the subsequent supply would not be prohibited from exceeding the total consideration for the particular supply under the statute by or under which the corporation was incorporated, under the corporation's charter, articles of association, by-laws or contracts with its shareholders or members or under contracts between its shareholders or members.
(2) Subsection (1) is deemed to have come into force on September 14, 2023.
23 (1) Subsection 4(1) of the Regulations is amended by striking out "and" at the end of paragraph (a), by adding "and" at the end of paragraph (b) and by adding the following after paragraph (b):
(c) in any case, the taxable supply is not an excluded equity housing supply of the residential complex.
(2) Subsection (1) is deemed to have come into force on September 14, 2023.
24 (1) The Regulations are amended by adding the following after section 4:
Marginal note:Prescribed conditions – cooperative housing corporations
4.1 For the purposes of subsection 256.2(2.1) of the Act, in respect of a taxable supply of property that is a residential complex, an interest in a residential complex or an addition to a multiple unit residential complex, it is a prescribed condition that the taxable supply is not an excluded equity housing supply of the residential complex.
(2) Subsection (1) is deemed to have come into force on September 14, 2023.
- Date modified: