Bill C-70

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	PART V.1
	SUPPLIES BY CHARITIES
	1. A supply made by a charity of any property or service, but not including a supply of
	(a) property or a service included in Sched ule VI;
	(b) property or a service where the supply is deemed under Part IX (other than section 187) of the Act to have been made by the charity;
	(c) personal property (other than property that was acquired, manufactured or pro duced by the charity for the purpose of making a supply by way of sale of the property) where, immediately before the time tax would be payable in respect of the supply if it were a taxable supply, the property was used (otherwise than in mak ing the supply) in commercial activities of the charity or, in the case of capital property, primarily in such activities;
	(d) tangible personal property that was acquired, manufactured or produced by the charity for the purpose of making a supply of the property and was neither donated to the charity nor used by another person before its acquisition by the charity, or any service supplied by the charity in respect of such property, other than such property or such a service supplied by the charity under a contract for catering;
	(e) an admission in respect of a place of amusement unless the maximum consider ation for a supply by the charity of such an admission does not exceed one dollar;
	(f) a service involving, or a membership or other right entitling a person to, supervision or instruction in any recreational or athletic activity except where
	(i) it could reasonably be expected, given the nature of the activity or the degree of relevant skill or ability required for participation in it, that such services, memberships or rights supplied by the charity would be provided primarily to children 14 years of age or under and the services are not supplied as part of, the membership is not in, or the right is not in respect of, a program involving over night supervision throughout a substan tial portion of the program, or
	(ii) such services, memberships or rights supplied by the charity are intended to be provided primarily to individuals who are underprivileged or who have a dis ability;
	(g) a membership (other than a membership described in subparagraph (f)(i) or (ii)) where the membership
	(i) entitles the member
	(A) to an admission in respect of a place of amusement the supply of which, were it made separately from the supply of the membership, would be a taxable supply, or
	(B) to a discount on the value of consideration for a supply of such an admission, or
	(ii) includes a right to participate in a recreational or athletic activity, or use facilities, at a place of amusement,
	except where the value of the admission, discount or right is insignificant in relation to the consideration for the membership;
	(h) services of performing artists in a performance where the supply is made to a person who makes taxable supplies of admissions in respect of the performance;
	(i) a right, other than an admission, to play or participate in a game of chance where the charity is a prescribed person or the game is a prescribed game of chance;
	(j) a residential complex, or an interest therein, where the supply is made by way of sale;
	(k) real property where the supply is made by way of sale to an individual or a personal trust, other than a supply of real property on which is situated a structure that was used by the charity as an office or in the course of commercial activities or of making exempt supplies;
	(l) real property where, immediately before the time tax would be payable in respect of the supply if it were a taxable supply, the property was used (otherwise than in mak ing the supply) primarily in commercial activities of the charity; or
	(m) real property in respect of which an election under section 211 of the Act is in effect at the time tax would become payable in respect of the supply if it were a taxable supply.
	2. A supply made by a charity of an admission to a fund-raising dinner, ball, concert, show or like fund-raising event where part of the consideration for the supply may reasonably be regarded as an amount that is donated to the charity and in respect of which a receipt referred to in subsection 110.1(2) or 118.1(2) of the Income Tax Act may be issued or could be issued if the recipient of the supply were an individual.
	3. A supply by way of sale of personal property or a service made by a charity in the course of a fund-raising activity of the charity, but not including
	(a) a supply of any property or service where
	(i) the charity makes supplies of such property or services in the course of that activity, or
	(ii) the agreement for the supply entitles the recipient to receive from the charity property or services,
	on a regular or continuous basis throughout the year or a significant portion of the year;
	(b) a supply of property or a service included in paragraph 1(a), (b), (c) or (i); or
	(c) a supply of an admission in respect of a place of amusement at which the principal activity is the placing of bets or the playing of games of chance.
	4. A supply made by a charity of food or beverages to seniors, underprivileged individ uals or individuals with a disability under a program established and operated for the purpose of providing prepared food to such individuals in their places of residence and any supply of food or beverages made to the charity for the purpose of the program.
	5. A supply made by a charity of any property or service where all or substantially all of the supplies of the property or service by the charity are made for no consideration, but not including a supply of blood or blood derivatives.
	5.1 A supply by way of sale made by a charity to a recipient of tangible personal property (other than capital property of the charity), or of a service purchased by the charity for the purpose of making a supply by way of sale of the service, where the total charge for the supply is the usual charge by the charity for such supplies to such recipients and
	(a) if the charity does not charge the recipient any amount as tax in respect of the supply, the total charge for the supply does not, and could not reasonably be expected to, exceed the direct cost of the supply; and
	(b) if the charity charges the recipient an amount as tax in respect of the supply, the consideration for the supply does not, and could not reasonably be expected to, equal or exceed the direct cost of the supply determined without reference to tax im posed under this Part.
	6. A supply made by a charity of an admission in respect of a place of amusement at which the principal activity is the placing of bets or the playing of games of chance, where
	(a) the administrative function and other functions performed in operating the game and taking the bets are performed exclu sively by volunteers; and
	(b) in the case of a bingo or casino, the game is not conducted in premises or at a place, including any temporary structure, that is used primarily for the purposes of conduct ing gambling activities.
	(2) Subsection (1) applies to supplies for which consideration becomes due after 1996 or is paid after 1996 without having become due except that, in relation to supplies made by a charity of admissions to a dinner, ball, concert, show or like event for which the charity has supplied admis sions before 1997, Schedule V to the Act applies as if this Act were not enacted.
	103. (1) The definition ``direct cost'' in section 1 of Part VI of Schedule V to the Act is repealed.
	(2) Subparagraph (b)(ii) of the definition ``transit authority'' in section 1 of Part VI of Schedule V to the English version of the Act is replaced by the following:
	(ii) is established and operated for the purpose of providing public passenger transportation services to individuals with a disability .
	(3) Section 1 of Part VI of Schedule V to the Act is amended by adding the following in alphabetical order:
	``public sector body'' does not include a char ity;
	``public service body'' does not include a charity;
	``registered party'' means a party (including any regional or local association of the party), a candidate or a referendum com mittee governed by an Act of Parliament or a law of a province that imposes require ments relating to election finances or refer endum expenses;
	(4) Subsection (1) and the definitions ``public sector body'' and ``public service body'' in section 1 of Part VI of Schedule V to the Act, as enacted by subsection (3), are deemed to have come into force on January 1, 1997 except that the latter definitions also apply in relation to any supply made before that day by a person who is on that day a charity as defined on that day where consideration for the supply becomes due on or after that day or is paid on or after that day without having become due.
	(5) The definition ``registered party'' in section 1 of Part VI of Schedule V to the Act, as enacted by subsection (3), is deemed to have come into force on April 23, 1996 and also applies in relation to any supply made before that day for which consideration becomes due on or after that day or is paid on or after that day without having become due.
1994, c. 9, s. 28	104. (1) The portion of section 2 of Part VI of Schedule V to the Act before paragraph (a) is replaced by the following:
	2. A supply made by a public institution of any personal property or a service, but not including a supply of
1994, c. 9, s. 28	(2) Paragraphs 2(b) to (e) of Part VI of Schedule V to the Act are replaced by the following:
	(b) property or a service the supply of which is deemed under Part IX of the Act to have been made by the institution ;
	(c) property (other than capital property of the institution or property that was ac quired, manufactured or produced by the institution for the purpose of making a supply of the property) where, immediately before the time tax would be payable in respect of the supply if it were a taxable supply, the property was used (otherwise than in making the supply) in commercial activities of the institution ;
	(d) capital property of the institution where, immediately before the time tax would be payable in respect of the supply if it were a taxable supply, the property was used (otherwise than in making the supply) primarily in commercial activities of the institution ;
	(e) tangible property that was acquired, manufactured or produced by the institu tion for the purpose of making a supply of the property and was neither donated to the institution nor used by another person before its acquisition by the institution , or any service supplied by the institution in respect of such property, other than such property or such a service supplied by the institution under a contract for catering;
	(3) Paragraph 2(g) of Part VI of Schedule V to the Act is replaced by the following:
	(g) property or a service made by the institution under a contract for catering for an event or occasion sponsored or arranged by another person who contracts with the institution for catering;
	(4) Subsections (1) to (3) apply to supplies for which consideration becomes due after 1996 or is paid after 1996 without having become due.
1993, c. 27, s. 165(1)	105. (1) Section 3 of Part VI of Schedule V to the Act is replaced by the following:
	3. A supply made by a public institution of an admission to a fund-raising dinner, ball, concert, show or like fund-raising event where part of the consideration for the supply may reasonably be regarded as an amount that is donated to the institution and in respect of which a receipt referred to in subsection 110.1(2) or 118.1(2) of the Income Tax Act may be issued or could be issued if the recipient of the supply were an individual.
	3.1. A supply by way of sale of personal property or a service made by a public institution in the course of a fund-raising activity of the institution, but not including
	(a) a supply of any property or service where
	(i) the institution makes supplies of such property or services in the course of that activity, or
	(ii) the agreement for the supply entitles the recipient to receive from the institu tion property or services,
	on a regular or continuous basis throughout the year or a significant portion of the year;
	(b) a supply of property or a service included in paragraph 2(a), (b), (c), (d) or (k); or
	(c) a supply of an admission in respect of a place of amusement at which the principal activity is the placing of bets or the playing of games of chance.
	(2) Subsection (1) applies to supplies for which consideration becomes due after 1996 or is paid after 1996 without having become due except that it does not apply to supplies of admissions to a dinner, ball, concert, show or like event for which admissions have been supplied before 1997.
1993, c. 27, s. 166(1)	106. (1) Section 5.1 of Part VI of Schedule V to the Act is replaced by the following:
	5.1 A supply made by a public institution or non-profit organization (other than a pre scribed person) of a right, other than an admission, to play or participate in a game of chance (other than a prescribed game of chance).
	(2) Subsection (1) applies to supplies for which consideration becomes due after 1996 or is paid after 1996 without having become due.
	107. (1) Paragraph 5.2(a) of Part VI of Schedule V to the Act is replaced by the following:
	(a) by a public institution or non-profit organization (other than a prescribed per son); or
	(2) Subsection (1) applies to supplies for which consideration becomes due after 1996 or is paid after 1996 without having become due.
	108. (1) Sections 6 to 8 of Part VI of Schedule V to the Act are replaced by the following:
	6. A supply by way of sale made by a public service body to a recipient of tangible person al property (other than capital property of the body), or of a service purchased by the body for the purpose of making a supply by way of sale of the service, where the total charge for the supply is the usual charge by the body for such supplies to such recipients and
	(a) if the body does not charge the recipient any amount as tax in respect of the supply, the total charge for the supply does not, or could not reasonably be expected to, exceed the direct cost of the supply; and
	(b) if the body charges the recipient an amount as tax in respect of the supply, the consideration for the supply does not, or could not reasonably be expected to, equal or exceed the direct cost of the supply determined without reference to tax im posed under this Part.
	(2) Subsection (1) applies to supplies for which all of the consideration becomes due after 1996 or is paid after 1996 without having become due.
	109. (1) Sections 9 and 10 of Part VI of Schedule V to the Act are replaced by the following:
	9. A supply made by a public sector body of an admission in respect of a place of amuse ment where the maximum consideration for a supply by the body of such an admission does not exceed one dollar.
	10. A supply made by a public sector body of any property or service where all or substantially all of the supplies of the property or service by the body are made for no consideration, but not including a supply of blood or blood derivatives.
	(2) Section 9 of Part VI of Schedule V to the Act, as enacted by subsection (1), applies to supplies made after April 23, 1996.
	(3) Section 10 of Part VI of Schedule V to the Act, as enacted by subsection (1), is deemed to have come into force on Decem ber 17, 1990 except that, with respect to supplies made on or before April 23, 1996, the reference to ``des fournitures des biens ou services'' in the French version of that section shall be read as a reference to ``des fournitures de tels biens ou services''.
	110. Paragraph 12(b) of Part VI of Schedule V to the Act is replaced by the following:
	(b) the program is provided primarily for underprivileged individuals or individuals with a disability.
	111. Section 13 of Part VI of Schedule V to the Act is replaced by the following:
	13. A supply made by a public sector body of board and lodging, or recreational services, at a recreational camp or similar place under a program or arrangement for providing the board and lodging or services primarily to underprivileged individuals or individuals with a disability .

Bill C-70

PART V.1

SUPPLIES BY CHARITIES