Excise Tax Act

Meaning of relation

• 255 (1) In this section, relation of a particular individual means another individual who is related to the particular individual or who is a former spouse or common-law partner of the particular individual.

• Marginal note:Cooperative housing rebate

  (2) Where

  • (a) a cooperative housing corporation has paid tax in respect of a taxable supply to the corporation of a residential complex,

  • (b) the corporation makes a supply of a share of the capital stock of the corporation to a particular individual and transfers ownership of the share to the particular individual,

  • (c) at the time the particular individual becomes liable or assumes liability under an agreement of purchase and sale of the share entered into between the corporation and the particular individual, the particular individual is acquiring the share for the purpose of using a residential unit in the complex as the primary place of residence of the particular individual or a relation of the particular individual,

  • (d) the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the particular individual of the share or an interest in the corporation, complex or unit, is less than $472,500,

  • (e) after the construction or substantial renovation of the complex is substantially completed and before possession of the unit is given to the particular individual as an incidence of ownership of the share, the unit was not occupied by any individual as a place of residence or lodging, and

  • (f) either

    • (i) the first individual to occupy the unit as a place of residence after possession of the unit is given to the particular individual is the particular individual or a relation of the particular individual, or

    • (ii) the particular individual makes a supply by way of sale of the share and ownership of the share is transferred to the recipient of that supply before the unit is occupied by any individual as a place of residence or lodging,

  the Minister shall, subject to subsection (3), pay a rebate to the particular individual equal to

  • (g) if the total consideration is not more than $367,500, an amount equal to 1.71% of the total consideration, and

  • (h) if the total consideration is more than $367,500 but less than $472,500, the amount determined by the formula

    A × [($472,500 - B)/$105,000]

    where

    A

    is the lesser of $6,300 and 1.71% of the total consideration, and

    B

    is the total consideration.

• (2.01) [Repealed, 2026, c. 2, s. 6]

• (2.02) [Repealed, 2026, c. 2, s. 6]

• Marginal note:Additional cooperative housing rebate — first-time home buyer

  (2.1) If

  • (a) a particular individual is entitled to claim a rebate under subsection (2) in respect of a share of the capital stock of a cooperative housing corporation that entitles the particular individual to the possession of a residential unit in a residential complex or the particular individual would be entitled to claim a rebate under subsection (2) in respect of such a share if the references in paragraphs (2)(d) and (h) to “$472,500” were read as “$1,575,000”,

  • (b) the agreement of purchase and sale referred to in paragraph (2)(c) is entered into after March 19, 2025 and before 2031,

  • (c) the construction or substantial renovation of the residential complex begins before 2031 and is substantially completed before 2036,

  • (d) ownership of the share is transferred to the particular individual before 2036, and

  • (e) the particular individual

    • (i) at the time the particular individual becomes liable or assumes liability under the agreement of purchase and sale, is acquiring the share for the purpose of using the residential unit as their primary place of residence,

    • (ii) is the first individual to occupy the residential unit as a place of residence after possession of the residential unit is transferred to the particular individual, and

    • (iii) is a first-time home buyer at the particular time at which ownership of the share is transferred to the particular individual,

  the Minister shall, subject to subsection (3), pay a rebate to the particular individual, in addition to the rebate, if any, payable under subsection (2) to the particular individual, equal to

  • (f) if the total consideration within the meaning of paragraph (2)(d), in respect of the share and any interest in the cooperative housing corporation or the residential complex, is not more than $1,050,000, the amount determined by the formula

    A − B

    where

    A

    is the lesser of $50,000 and 4.77% of the total consideration, and

    B

    is the amount of the rebate, if any, under subsection (2) that the particular individual is entitled to claim in respect of the share, and

  • (g) if the total consideration within the meaning of paragraph (2)(d), in respect of the share and any interest in the cooperative housing corporation or the residential complex, is more than $1,050,000 but less than $1,575,000, the amount determined by the formula

    C × [($1,575,000 − D) ÷ $525,000]

    where

    C

    is the lesser of $50,000 and 4.77% of the total consideration, and

    D

    is the total consideration.

• Marginal note:Application for rebate

  (3) A rebate under this section in respect of a share of the capital stock of a cooperative housing corporation shall not be paid to an individual unless the individual files an application for the rebate within two years after the day ownership of the share is transferred to the individual.