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Excise Tax Act

Version of section 277.1 from 2009-12-15 to 2024-02-06:


Definition of new harmonized value-added tax system

  •  (1) In this section, new harmonized value-added tax system means the system under this Part and Schedules V to X providing for the payment, collection and remittance of tax imposed under any of subsection 165(2) and sections 212.1, 218.1 and 220.05 to 220.08 and of amounts paid as or on account of that tax and the provisions of this Part relating to tax under those provisions or to input tax credits, rebates or refunds in respect of any such tax, or any such amounts, paid or deemed to be paid.

  • Marginal note:New harmonized value-added tax system regulations — transition

    (2) The Governor in Council may make regulations, in relation to the transition by a province to the new harmonized value-added tax system,

    • (a) prescribing rules in respect of whether, how and when that system applies and rules in respect of other aspects relating to the application of that system in relation to the province, including

      • (i) rules that apply for the purpose of determining the amount of instalment payments under section 237,

      • (ii) circumstances in which an election under this Part may be made or revoked at an earlier time than would otherwise be permitted under this Part, and

      • (iii) rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when tax or consideration became due or was paid or collected, when property was delivered or made available, when a service was performed and when tax is required to be reported and accounted for;

    • (b) respecting information that must be included by a specified person in a written agreement or other document in respect of a specified supply of real property and prescribing tax consequences in respect of such a supply, and penalties, for failing to do so or for providing incorrect information;

    • (c) deeming, in specified circumstances, a specified person to have collected a specified amount of tax, or to have paid a specified amount of tax, for specified purposes, as a consequence of making a supply by way of sale in respect of a residential complex;

    • (d) prescribing rules under which a person of a specified class that is the recipient of a specified supply in respect of real property is required to report and account for tax that is payable under subsection 165(2) in respect of that supply;

    • (e) prescribing compliance measures, including anti-avoidance rules; and

    • (f) generally to effect the transition to, and implementation of, that system in relation to the province.

  • Marginal note:New harmonized value-added tax system regulations — provincial tax policy flexibility

    (3) The Governor in Council may make regulations

    • (a) prescribing rules in respect of whether, how and when a change in the tax rate for a participating province applies and rules in respect of a change to another parameter affecting the application of the new harmonized value-added tax system in relation to a participating province (in this subsection any such change in the tax rate or to another parameter is referred to as the “provincial tax policy flexibility”), including

      • (i) rules that apply for the purpose of determining the amount of instalment payments under section 237,

      • (ii) circumstances in which an election under this Part may be made or revoked at an earlier time than would otherwise be permitted under this Part, and

      • (iii) rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when tax or consideration became due or was paid or collected, when property was delivered or made available, when a service was performed and when tax is required to be reported and accounted for;

    • (b) if an amount is to be determined in prescribed manner in relation to the new harmonized value-added tax system, specifying the circumstances or conditions under which the manner applies;

    • (c) providing for rebates, refunds, adjustments or credits relating to the provincial tax policy flexibility;

    • (d) specifying circumstances and any terms or conditions that must be met for the payment of rebates in respect of the provincial tax policy flexibility;

    • (e) prescribing amounts and rates to be used to determine any rebate, refund, adjustment or credit that relates to, or is affected by, the new harmonized value-added tax system, excluding amounts that would otherwise be included in determining any such rebate, refund, adjustment or credit, and specifying circumstances under which any such rebate, refund, adjustment or credit shall not be paid or made;

    • (f) amending the definition basic tax content in subsection 123(1) to take into account the provincial tax policy flexibility or the addition of a province to the new harmonized value-added tax system; and

    • (g) prescribing compliance measures, including anti-avoidance rules, in respect of the provincial tax policy flexibility.

  • Marginal note:New harmonized value-added tax system regulations — general

    (4) For the purpose of facilitating the implementation, application, administration and enforcement of the new harmonized value-added tax system or the transition by a province to the new harmonized value-added tax system, the Governor in Council may make regulations

    • (a) adapting any provision of this Part, of Schedules V to X or of the regulations made under this Part to the new harmonized value-added tax system or modifying any provision of this Part, Schedules V to X or those regulations to adapt it to the new harmonized value-added tax system;

    • (b) defining, for the purposes of this Part, Schedules V to X or the regulations made under this Part, or any provision of this Part, Schedules V to X or those regulations, in its application to the new harmonized value-added tax system, words or expressions used in this Part, Schedules V to X or those regulations including words or expressions defined in a provision of this Part, Schedules V to X or those regulations; and

    • (c) providing that a provision of this Part, of Schedules V to X or of the regulations made under this Part, or a part of such a provision, does not apply to the new harmonized value-added tax system.

  • Marginal note:Conflict

    (5) If a regulation made under this Part in respect of the new harmonized value-added tax system states that it applies despite any provision of this Part, in the event of a conflict between the regulation and this Part, the regulation prevails to the extent of the conflict.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1997, c. 10, s. 234
  • 2009, c. 32, s. 37

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