Budget Implementation Act, 2018, No. 2 (S.C. 2018, c. 27)
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Assented to 2018-12-13
PART 2Amendments to the Excise Tax Act (GST/HST Measures) and to Related Legislation (continued)
R.S., c. E-15Excise Tax Act (continued)
42 (1) Section 132 of the Act is amended by adding the following after subsection (5):
Marginal note:Residence of investment limited partnerships
(6) For the purposes of this Part but subject to subsection (2), an investment limited partnership is deemed not to be resident in Canada at any time if, at that time, the total value of all interests in the partnership held by non-resident members of the partnership (other than prescribed members) is 95% or more of the total value of all interests in the partnership.
(2) Subsection (1) is deemed to have come into force on September 8, 2017.
43 (1) Subsection 149(5) of the Act is amended by striking out “and” at the end of paragraph (f) and by adding the following after that paragraph:
(f.1) an investment limited partnership; and
(2) Subsection (1) applies in respect of
(a) any taxation year of a person that begins after 2018; and
(b) the taxation years of a person that begin in 2018 if the person elects to have subsection (1) apply in respect of those taxation years.
(3) An election under paragraph (2)(b) is to
(a) be made in prescribed form containing prescribed information; and
(b) be filed with the Minister of National Revenue in prescribed manner on or before the day that is 60 days after the day on which this Act receives royal assent or any later day that the Minister of National Revenue may allow.
(4) If a person makes an election under paragraph (2)(b), the references in subsection 244.1(4) of the Act, as enacted by subsection 46(1), to “2018” and “2019” are to be read as “2017” and “2018”, respectively, in applying that subsection 244.1(4) in respect of the person.
44 (1) Section 221 of the Act is amended by adding the following after subsection (2):
Marginal note:Exception — emission allowance
(2.1) A supplier (other than a prescribed supplier) that makes a taxable supply of an emission allowance is not required to collect tax under Division II payable by the recipient in respect of the supply.
(2) Subsection (1) is deemed to have come into force on June 27, 2018 but also applies in respect of any supply of an emission allowance made before that day if any amount of tax under Division II of Part IX of the Act that is payable in respect of the supply was not collected before that day, except that in respect of those supplies subsection 221(2.1) of the Act, as enacted by subsection (1), is to be read as follows:
(2.1) A supplier (other than a prescribed supplier) that makes a taxable supply of an emission allowance is not required to collect any amount of tax under Division II that is payable by the recipient in respect of the supply and that was not collected before June 27, 2018.
45 (1) The portion of subsection 228(4) of the Act before paragraph (a) is replaced by the following:
Marginal note:Real property and emission allowance — self-assessment
(4) If tax under Division II is payable by a person in respect of a supply of property that is real property or an emission allowance and the supplier is not required to collect the tax and is not deemed to have collected the tax,
(2) Subsection (1) is deemed to have come into force on June 27, 2018 but also applies in respect of any supply of an emission allowance made before that day if any amount of tax under Division II of Part IX of the Act that is payable in respect of the supply was not collected before that day, except that in respect of those supplies subsection 228(4) of the Act, as amended by subsection (1), is to be read as follows:
(4) If a supply of an emission allowance is made to a person, the following rules apply in respect of the tax under Division II that is payable in respect of the supply and that has not been collected before June 27, 2018 (in this subsection referred to as the “uncollected tax”):
(a) to the extent that the uncollected tax became payable before June 27, 2018,
(i) if the person is a registrant and acquired the emission allowance for use or supply primarily in the course of commercial activities of the person, the person shall, on or before the day on or before which the person’s return for the reporting period that includes June 27, 2018 is required to be filed, pay the uncollected tax to the Receiver General and report the uncollected tax in that return, and
(ii) in any other case, the person shall, on or before July 31, 2018, pay the uncollected tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the uncollected tax in prescribed form containing prescribed information; and
(b) to the extent that the uncollected tax became payable after June 26, 2018,
(i) if the person is a registrant and acquired the emission allowance for use or supply primarily in the course of commercial activities of the person, the person shall, on or before the day on or before which the person’s return for the reporting period in which the uncollected tax became payable is required to be filed, pay the uncollected tax to the Receiver General and report the uncollected tax in that return, and
(ii) in any other case, the person shall, on or before the last day of the month following the calendar month in which the uncollected tax became payable, pay the uncollected tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the uncollected tax in prescribed form containing prescribed information.
46 (1) Section 244.1 of the Act is amended by adding the following after subsection (3):
Marginal note:Fiscal year — investment limited partnership
(4) If a particular fiscal year of an investment limited partnership begins in 2018 and includes January 1, 2019 and the investment limited partnership would be a selected listed financial institution throughout a reporting period in the particular fiscal year if the particular fiscal year began on January 1, 2019 and ended on December 31, 2019, the following rules apply:
(a) the particular fiscal year ends on December 31, 2018;
(b) subject to subsection (2), the fiscal years of the investment limited partnership are calendar years as of January 1, 2019;
(c) any election made by the investment limited partnership under section 244 ceases to have effect as of January 1, 2019; and
(d) if the first taxation year of the investment limited partnership that begins after 2018 does not begin on January 1, 2019, for the purposes of this Part (other than section 149) the investment limited partnership is deemed, for the period beginning on January 1, 2019 and ending on the day preceding the first day of that taxation year, to be a financial institution, a listed financial institution and a person referred to in subparagraph 149(1)(a)(ix).
(2) Subsection (1) is deemed to have come into force on September 8, 2017.
47 (1) Paragraphs 259.1(2)(a) and (b) of the Act are replaced by the following:
(a) in the case of a specified person described in paragraph (f) of the definition specified person in subsection (1), the person does not acquire or import the specified property for
(i) the purpose of making a supply by way of sale of the specified property for consideration, or
(ii) the purpose of transferring ownership of the specified property to another person in the course of supplying another property or a service for consideration; and
(b) in any other case, the person does not acquire or import the specified property for
(i) the purpose of making a supply by way of sale of the specified property, or
(ii) the purpose of transferring ownership of the specified property to another person in the course of supplying another property or a service.
(2) Subsection (1) applies to any acquisition or importation of property in respect of which tax
(a) becomes payable after July 27, 2018 without having been paid on or before that day; or
(b) is paid after July 27, 2018 without having become payable on or before that day.
48 (1) The portion of subsection 261(1) of the English version of the Act after paragraph (b) is replaced by the following:
tax, net tax, penalty, interest or other obligation under this Part in circumstances where the amount was not payable or remittable by the person, whether the amount was paid by mistake or otherwise, the Minister shall, subject to subsections (2) to (3), pay a rebate of that amount to the person.
(2) Section 261 of the Act is amended by adding the following after subsection (2):
Marginal note:Restriction — emission allowance
(2.1) A rebate in respect of an amount paid in respect of a supply of an emission allowance is not to be paid under subsection (1) to a person unless
(a) the person paid the amount to the Receiver General; or
(b) prescribed circumstances exist or prescribed conditions are met.
(3) Subsections (1) and (2) are deemed to have come into force on June 27, 2018 but do not apply in respect of an amount that was, before that day, paid as or on account of, or taken into account as, tax, net tax, penalty, interest or other obligation under Part IX of the Act.
49 (1) Subsection 272.1(3) of the Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following:
(b) in the case of management or administrative services that are rendered by a general partner of an investment limited partnership to the investment limited partnership under an agreement for the particular supply of those services,
(i) if subsection 136.1(2) applies in respect of the particular supply, for each separate supply of those services that is deemed under paragraph 136.1(2)(a) to be made by the general partner for a billing period (within the meaning of that subsection), the separate supply is deemed, despite paragraph 136.1(2)(c), to be made for consideration that becomes due on the last day of the billing period equal to the fair market value of the services rendered under the agreement by the general partner to the investment limited partnership during the billing period, determined as if the general partner were not a member of the investment limited partnership and were dealing at arm’s length with the investment limited partnership, and
(ii) in any other case,
(A) the general partner is deemed to have made, and the investment limited partnership is deemed to have received, a separate supply of those services for each reporting period of the general partner during which those services are, or are to be, rendered under the agreement, and
(B) each separate supply of those services that is deemed to be made under clause (A) for a reporting period of the general partner is deemed to be made on the first day of the reporting period for consideration that becomes due on the last day of the reporting period equal to the fair market value of the services rendered under the agreement by the general partner to the investment limited partnership during the reporting period, determined as if the general partner were not a member of the investment limited partnership and were dealing at arm’s length with the investment limited partnership; and
(c) in any other case, the supply is deemed to have been made for consideration that becomes due at the time the supply is made equal to the fair market value at that time of the property or service acquired by the partnership determined as if the person were not a member of the partnership and were dealing at arm’s length with the partnership.
(2) Section 272.1 of the Act is amended by adding the following after subsection (7):
Marginal note:Investment limited partnership — supply by general partner
(8) For the purposes of this Part, if a general partner of an investment limited partnership renders a management or administrative service to the investment limited partnership,
(a) the rendering of the service is deemed not to be done by the general partner as a member of the investment limited partnership; and
(b) the supply by the general partner to the investment limited partnership that includes the service is deemed to have been made otherwise than in the course of the investment limited partnership’s activities.
(3) For the purposes of subsections (4) to (6) and Part IX of the Act, if management or administrative services are rendered by a general partner of an investment limited partnership to the investment limited partnership under a particular agreement entered into before September 8, 2017 and if some or all of those services are rendered on or after that day, the following rules apply:
(a) in respect of the management or administrative services that are rendered on or after September 8, 2017 (referred to in this paragraph as the “subsequent services”),
(i) the general partner is deemed to have made, and the investment limited partnership is deemed to have received, a particular supply of the subsequent services and the particular supply is deemed to have been made on September 8, 2017,
(ii) the subsequent services are deemed to have been rendered under an agreement for the particular supply and not under the particular agreement and the agreement for the particular supply is deemed to have been entered into on September 8, 2017,
(iii) any amount that is charged, collected or remitted at any time as or on account of tax under Part IX of the Act in respect of an amount of consideration that is reasonably attributable to the rendering of the subsequent services is deemed to be an amount of tax that is collected at that time in respect of the particular supply, and
(iv) if the total of all amounts of tax that are payable under Part IX of the Act in respect of the particular supply before February 27, 2018 is in excess of the total of the amounts that are deemed under subparagraph (iii) to be amounts collected before that day in respect of that supply, that excess is deemed, despite subsection 272.1(3) of the Act, to have become payable on February 27, 2018 and the general partner is deemed to have collected that excess on that day; and
(b) in respect of the management or administrative services, if any, that are rendered before September 8, 2017 (referred to in this paragraph as the “prior services”),
(i) the general partner is deemed to have made, and the investment limited partnership is deemed to have received, a supply of the prior services (referred to in this paragraph as the “earlier supply”) and the earlier supply is deemed to have been made on the day on which the particular agreement is entered into,
(ii) the prior services are deemed to have been rendered under an agreement for the earlier supply and not under the particular agreement and the agreement for the earlier supply is deemed to have been entered into on the day on which the particular agreement is entered into, and
(iii) any amount that is charged, collected or remitted at any time as or on account of tax under Part IX of the Act in respect of an amount of consideration that is reasonably attributable to the rendering of the prior services under the particular agreement is deemed to be an amount of tax that is collected at that time in respect of the earlier supply.
(4) Subsection (1) applies in respect of any supply made after September 7, 2017.
(5) Subsection (2) is deemed to have come into force on September 8, 2017 but also applies in respect of management or administrative services that are rendered under an agreement entered into before that day if an amount was, before that day, charged, collected or remitted as or on account of tax under Part IX of the Act in respect of those services or in respect of any supply made under the agreement.
(6) For the purposes of Part IX of the Act, if subsection 272.1(8) of the Act, as enacted by subsection (2), applies in respect of management or administrative services that are rendered before September 8, 2017 by a general partner of an investment limited partnership to the investment limited partnership under an agreement entered into before that day, the following rules apply:
(a) subsection 272.1(3) of the Act does not apply in respect of the supply of the management or administrative services made by the general partner to the investment limited partnership;
(b) any amount that the investment limited partnership pays or credits to the general partner after September 7, 2017 that is reasonably attributable to the management or administrative services is deemed to be consideration for the supply of those services by the general partner to the investment limited partnership that becomes due at the time the amount is paid or credited; and
(c) if an amount was charged, collected or remitted as or on account of tax in respect of a particular amount — being an amount that the investment limited partnership paid or credited to the general partner before September 8, 2017 and that is reasonably attributable to the management or administrative services — the particular amount is deemed to be consideration for a taxable supply of those services that becomes due at the time the amount is paid or credited.
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