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Budget Implementation Act, 2016, No. 2 (S.C. 2016, c. 12)

Assented to 2016-12-15

PART 2Amendments to the Excise Tax Act (GST/HST Measures) and Other Related Texts (continued)

R.S., c. E-15Excise Tax Act (continued)

Transitional Provision

Marginal note:Paragraph 150(2)(b) — election in effect on March 22, 2016

94 If a supply is made between a person and a corporation that have jointly made an election under subsection 150(1) of the Excise Tax Act, if the election is in effect on March 22, 2016 and on the day on which the agreement for the supply is entered into and if the agreement is entered into after March 22, 2016 but before March 22, 2017, then paragraph 150(2)(b) of that Act is to be read as follows in respect of the supply:

  • (b) an imported taxable supply, as defined in section 217;

  • (b.1) a supply made between a person and a corporation if

    • (i) the supply is

      • (A) a supply of a service and it is not the case that all or substantially all of the service will be performed before March 22, 2017, or

      • (B) a supply of property by way of lease, licence or similar arrangement and it is not the case that all or substantially all of the property will be delivered or made available to the recipient of the supply before March 22, 2017, and

    • (ii) the person and the corporation

      • (A) are not members of the same closely related group at any time after the day on which the agreement for the supply is entered into but before March 22, 2017, or

      • (B) are not members of the same closely related group on March 22, 2017; or

SOR/91-21; SOR/2011-56, s. 1Closely Related Corporations (GST/HST) Regulations

  • 95 (1) The portion of section 3 of the Closely Related Corporations (GST/HST) Regulations before subparagraph (a)(i) is replaced by the following:

    3 For the purposes of paragraph 128(1)(b) of the Act, a corporation (in this section referred to as the “other corporation”) is a prescribed corporation in relation to a particular corporation if

    • (a) it is the case that

  • (2) The portion of subparagraph 3(a)(i) of the French version of the Regulations before clause (A) is replaced by the following:

    • (i) les actions déterminées de l’autre personne morale représentant au moins 90 % de la valeur et du nombre de telles actions remplissent chacune l’une des conditions suivantes :

  • (3) Subclause 3(a)(i)(C)(II) of the Regulations is replaced by the following:

    • (II) a corporation in respect of which employees referred to in subclause (I) hold qualifying voting control and own not less than 90% of the total value and number of all specified shares,

  • (4) Subparagraph 3(a)(ii) of the French version of the Regulations is replaced by the following:

    • (ii) les actions déterminées de l’autre personne morale représentant au moins 50 % de la valeur et du nombre de telles actions appartiennent chacune à une personne morale visée aux divisions (i)(A) ou (B),

  • (5) Paragraph 3(a) of the Regulations is amended by striking out “and” at the end of subparagraph (i), by replacing “or” with “and” at the end of subparagraph (ii) and by adding the following after subparagraph (ii):

    • (iii) the particular corporation would hold qualifying voting control in respect of the other corporation if the particular corporation were to own

      • (A) all of the issued and outstanding specified shares of the capital stock of the other corporation that are included in clauses (i)(A) to (D), and

      • (B) all of the issued and outstanding shares of the capital stock of the other corporation that are not specified shares and that would be included in clauses (i)(A) to (D) if they were specified shares; or

  • (6) Paragraph 3(b) of the Regulations is replaced by the following:

    • (b) qualifying voting control in respect of the other corporation is held by, and not less than 90% of the total value and number of all specified shares of the other corporation are owned by,

      • (i) the particular corporation,

      • (ii) a corporation that is closely related to the particular corporation by reason of paragraph 128(1)(a) of the Act,

      • (iii) a corporation that is a prescribed corporation in relation to the particular corporation by reason of paragraph (a), or

      • (iv) any combination of the corporations referred to in subparagraphs (i) to (iii).

  • (7) Subsections (1) to (6) apply as of March 22, 2017. They also apply as of March 23, 2016

    • (a) in respect of an election under subsection 150(1) or 156(2) of the Excise Tax Act that is to become effective on a day that is after March 22, 2016 but before March 22, 2017, unless the election is filed on or before March 22, 2016; and

    • (b) for the purpose of applying paragraphs 4(3)(b) and (c) of the Financial Services and Financial Institutions (GST/HST) Regulations in respect of a supply of a service if the agreement for the supply is entered into after March 22, 2016 but before March 22, 2017 and it is not the case that all or substantially all of the service will be performed before March 22, 2017.

SOR/91-51; SOR/99–368, s. 1; SOR/2006-162, s. 5Streamlined Accounting (GST/HST) Regulations

  • 96 (1) The definition eligible capital property in subsection 2(1) of the Streamlined Accounting (GST/HST) Regulations is repealed.

  • (2) The definition capital asset in subsection 2(1) of the Regulations is replaced by the following:

    capital asset

    capital asset of a person means

    • (a) property that is, or would be if the person were a taxpayer under the Income Tax Act, capital property of the person within the meaning of that Act, and

    • (b) in respect of a supply that was made by the person at any time before January 1, 2017, property that was, or would have been if the person were a taxpayer under the Income Tax Act, eligible capital property of the person within the meaning of that Act as it read at that time; (bien immobilisé)

  • (3) The descriptions of A and B in subsection 2(2) of the Regulations are replaced by the following:

    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) that became due, or was paid without having become due, to the registrant in the threshold period for the reporting period for taxable supplies (other than supplies of financial services, supplies by way of sale of real property or capital assets of the registrant and supplies deemed under subsection 177(1.2) of the Act to be made by the registrant) that are or would be, but for that subsection, made in Canada by the registrant;
    B
    is the total of all tax under Division II that became collectible in the threshold period in respect of taxable supplies (other than supplies of financial services, supplies by way of sale of real property or capital assets of the registrant and supplies deemed under subsection 177(1.2) of the Act to be made by the registrant) that are or would be, but for that subsection, made in Canada by the registrant; and

  • (4) The descriptions of A and B in paragraph 2(3)(a) of the Regulations are replaced by the following:

    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 or capital assets of the registrant) made by the registrant that became due, or was paid without having become due, to the registrant in the threshold period for the reporting period,
    B
    is the total of all tax under Division II that became collectible in the threshold period in respect of taxable supplies (other than supplies of financial services and supplies by way of sale of real property or capital assets of the registrant) made by the registrant, and

  • (5) The descriptions of D and E in paragraph 2(3)(b) of the Regulations are replaced by the following:

    D
    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 or capital assets 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,
    E
    is the total of all tax under Division II that became collectible in the particular fiscal year in respect of taxable supplies (other than supplies of financial services and supplies by way of sale of real property or capital assets of the associate) made by the associate, and

  • (6) Subsection (1) applies in respect of supplies made after 2016.

  • (7) Subsections (2) to (5) come into force or are deemed to have come into force on January 1, 2017.

  • 97 (1) The definition specified property in subsection 15(1) of the Regulations is replaced by the following:

    specified property

    specified property, in respect of a person, means property of the person other than real property and capital assets of the person; (bien déterminé)

  • (2) Paragraph (a) of the definition specified supply in subsection 15(1) of the Regulations is replaced by the following:

    • (a) a supply by way of sale of real property or capital assets of the supplier,

  • (3) Subsections (1) and (2) come into force or are deemed to have come into force on January 1, 2017.

  • 98 (1) The definition specified property in subsection 19(1) of the Regulations is repealed.

  • (2) Paragraph (a) of the definition designated supply in subsection 19(1) of the Regulations is replaced by the following:

    • (a) a supply by way of sale of real property or capital assets of the supplier,

  • (3) Paragraphs (b) and (c) of the definition specified supply in subsection 19(1) of the Regulations are replaced by the following:

    • (b) a supply by way of sale of a capital asset of the registrant that has a fair market value at the time of the supply of at least $10,000,

    • (c) a supply made by the registrant by way of sale of a capital asset of the registrant if the registrant has claimed, or is entitled to claim, an input tax credit in respect of the last supply to, or importation by, the registrant of the capital asset,

  • (4) The description of B in subparagraph 19(3)(c)(i) of the Regulations is replaced by the following:

    B
    is the total of all tax under Division II that became collectible in the fiscal year of the registrant immediately before the particular fiscal year in respect of taxable supplies (other than supplies by way of sale of real property or capital assets of the registrant) made by the registrant, and

  • (5) Subsections (1) to (4) come into force or are deemed to have come into force on January 1, 2017.

  • 99 (1) Subparagraphs (a)(ii) and (iii) of the description of C in subsection 21(1) of the Regulations are replaced by the following:

    • (ii) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of a supply by way of sale to, importation by, or bringing into a participating province by, the registrant of personal property that is acquired, imported or brought into the participating province by the registrant for use as a capital asset of the registrant and that has a fair market value at the time of the supply or bringing into the province, or a value as determined under section 215 of the Act at the time of the importation, of at least $10,000,

    • (iii) for the particular reporting period or a preceding reporting period of the registrant during which the election was in effect in respect of an improvement to a capital asset (other than real property) of the registrant, if the registrant has claimed, or is entitled to claim, an input tax credit in respect of the last supply to, or importation by, the registrant of the capital asset,

  • (2) Subsection (1) comes into force or is deemed to have come into force on January 1, 2017.

PART 32002, c. 22Excise Act, 2001

  • 100 (1) Subsection 191(3) of the Excise Act, 2001 is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):

    • (c) to give effect to an alternative basis or argument advanced by the Minister under subsection (7).

  • (2) The portion of subsection 191(7) of the Act before paragraph (a) is replaced by the following:

    • Marginal note:Alternative basis or argument

      (7) The Minister may advance an alternative basis or argument in support of an assessment of a person, or in support of all or any portion of the total amount determined on assessment to be payable or remittable by a person under this Act, at any time after the period otherwise limited by subsection (1) or (2) for making the assessment unless on an appeal under this Act

  • (3) Section 191 of the Act is amended by adding the following after subsection (7):

    • Marginal note:Limitation

      (7.1) If a reassessment of a person is made that gives effect to an alternative basis or argument advanced by the Minister under subsection (7) in support of a particular assessment of the person, the Minister shall not reassess for an amount that is greater than the total amount of the particular assessment.

    • Marginal note:Exception

      (7.2) Subsection (7.1) does not apply to any portion of an amount determined on reassessment that the Minister would be entitled to reassess under this Act at any time after the period otherwise limited by subsection (1) or (2) for making the reassessment if this Act were read without reference to subsection (7).

  • (4) Subsections (1) to (3) come into force on the day on which this Act receives royal assent except that those subsections do not apply in respect of appeals instituted on or before that day.

PART 4Various Measures

DIVISION 11996, c. 23Employment Insurance Act

Amendments to the Act

101 Section 6 of the Employment Insurance Act is amended by adding the following after subsection (3):

  • Marginal note:Employment not suitable

    (4) For the purposes of paragraphs 18(1)(a) and 27(1)(a) to (c) and subsection 50(8), employment is not suitable employment for a claimant if

    • (a) it arises in consequence of a work stoppage attributable to a labour dispute;

    • (b) it is in the claimant’s usual occupation and is either at a lower rate of earnings or on conditions less favourable than those observed by agreement between employers and employees or, in the absence of any such agreement, than those recognized by good employers; or

    • (c) it is not in the claimant’s usual occupation and is either at a lower rate of earnings or on conditions less favourable than those that the claimant might reasonably expect to obtain, having regard to the conditions that the claimant usually obtained in their usual occupation, or would have obtained if they had continued to be so employed.

  • Marginal note:Reasonable interval

    (5) After a lapse of a reasonable interval from the date on which an insured person becomes unemployed, paragraph (4)(c) does not apply to the employment described in that paragraph if it is employment at a rate of earnings not lower and on conditions not less favourable than those observed by agreement between employers and employees or, in the absence of any such agreement, than those recognized by good employers.

Marginal note:2012, c. 19, s. 605

102 Subsection 27(2) of the Act is repealed.

Coming into Force

Marginal note:Order in council

103 This Division comes into force on a day to be fixed by order of the Governor in Council.

DIVISION 2R.S., c. O-9Old Age Security Act

Amendments to the Act

104 Section 19 of the Old Age Security Act is amended by adding the following after subsection (7):

  • Marginal note:Direction by Minister if spouses or common-law partners living apart

    (8) If an application has been made under subsection (4) for payment of an allowance to a pensioner’s spouse or common-law partner in respect of any payment period, the Minister may, after any investigation of the circumstances that he or she considers necessary, direct that for the purpose of calculating the allowance, the monthly joint income, as defined in subsection 22(1), be determined without taking into account the pensioner’s income for the base calendar year in any case where the Minister is satisfied that the spouse or common-law partner, as a result of circumstances not attributable to the pensioner or the spouse or common-law partner, was not living with the pensioner in a dwelling maintained by one or the other of them at the time the application was made.

  • Marginal note:Continuing direction

    (9) A direction made under subsection (8) in respect of a payment period is deemed to be a direction made in respect of every subsequent payment period, but the Minister may, after any investigation of the circumstances that he or she considers necessary, cancel the direction.

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