Bill C-70

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	B is the total of
	(a) the tax that was payable by the registrant in respect of the last acquisi tion or importation of the vehicle by the registrant,
	(b) where the registrant brought the vehicle into a participating province after it was last acquired or imported by the registrant, the tax that was payable by the registrant in respect of bringing it into that province, and
	(c) the tax that was payable by the registrant in respect of improvements to the vehicle acquired, imported or brought into a participating province by the registrant after the property was last acquired or imported; and
	C is the total of all input tax credits that the registrant was entitled to claim in respect of any tax included in the total for B .
	(2) Paragraphs 203(2)(a) and (b) of the Act are replaced by the following:
	(a) made, immediately before that time, a taxable supply by way of sale of the vehicle or aircraft; and
	(b) collected, at that time, tax in respect of the supply equal to the basic tax content of the vehicle or aircraft immediately before that time .
	(3) Subsections (1) and (2) come into force on April 1, 1997.
	195. (1) Paragraph 206(2)(b) of the Act is replaced by the following:
	(b) except where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the basic tax content of the property at the particular time.
	(2) Paragraph 206(3)(b) of the Act is replaced by the following:
	(b) except where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the amount determined by the formula
	A x B
	where
	A is the basic tax content of the property at the particular time, and
	B is the extent (expressed as a percentage of the total use of the property by the registrant at the particular time) to which the registrant increased the use of the property in commercial activities of the registrant at the particular time.
	(3) Paragraph 206(4)(a) of the Act is replaced by the following:
	(a) to have made, immediately before the particular time, a supply of the property by way of sale and, except where the supply is an exempt supply, to have collected, at the particular time, tax in respect of the supply equal to the basic tax content of the property at the particular time; and
	(4) Paragraph 206(5)(b) of the Act is replaced by the following:
	(b) except where the supply is an exempt supply, to have collected, at the particular time, tax in respect of the supply equal to the amount determined by the formula
	A x B
	where
	A is the basic tax content of the property at the particular time, and
	B is the extent (expressed as a percentage of the total use of the property by the registrant at the particular time) to which the registrant reduced the use of the property in commercial activities of the registrant at the particular time.
	(5) Subsections (1) to (4) come into force on April 1, 1997.
	196. (1) Paragraph 207(1)(a) of the Act is replaced by the following:
	(a) to have made, immediately before the particular time, a supply of the property by way of sale and, except where the supply is an exempt supply, to have collected, at the particular time, tax in respect of the supply equal to the amount determined by the formula
	A - B
	where
	A is the basic tax content of the property at the particular time, and
	B is the tax, if any, that the individual is deemed under section 190 to have collected at the particular time in re spect of the property; and
	(2) Paragraph 207(2)(b) of the Act is replaced by the following:
	(b) except where the supply is an exempt supply, to have collected, at the particular time, tax in respect of the supply equal to the amount determined by the formula
	(A x B) - C
	where
	A is the basic tax content of the property at the particular time,
	B is the extent (expressed as a percentage of the total use of the property by the individual at the particular time) to which the individual reduced the use of the property in commercial activities of the individual at the particular time, and
	C is the tax, if any, that the individual is deemed under section 190 to have collected at the particular time in re spect of the property.
	(3) Subsections (1) and (2) come into force on April 1, 1997.
	197. (1) Paragraph 208(2)(d) of the Act, as renumbered by subsection 40.1(1), is replaced by the following:
	(d) except where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the basic tax content of the property at the particular time .
	(2) The description of A in paragraph 208(3)(b) of the Act is replaced by the following:
	A is the basic tax content of the property at the particular time, and
	(3) Subsection 208(4) of the Act is re placed by the following:
Improvement to capital real property by individual	(4) Where an individual who is a registrant acquires, imports or brings into a participating province an improvement to real property that is capital property of the individual, the tax payable by the individual in respect of the improvement shall not be included in deter mining an input tax credit of the individual if, at the time that tax becomes payable or is paid without having become payable, the property is primarily for the personal use and enjoy ment of the individual or a related individual.
	(4) Subsections (1) to (3) come into force on April 1, 1997.
	198. (1) Paragraph 211(2)(a) of the Act is replaced by the following:
	(a) to have made, immediately before the particular day, a taxable supply of the property by way of sale and to have collected, on the particular day, tax in respect of the supply equal to the basic tax content of the property on the particular day ; and
	(2) Subsection (1) comes into force on April 1, 1997.
	199. (1) Section 212 of the Act is replaced by the following:
Imposition of goods and services tax	212. Subject to this Part, every person who is liable under the Customs Act to pay duty on imported goods, or who would be so liable if the goods were subject to duty, shall pay to Her Majesty in right of Canada tax on the goods calculated at the rate of 7% on the value of the goods.
Meaning of ``commercial goods''	212.1 (1) In this section, ``commercial goods'' means goods that are imported for sale or for any commercial, industrial, occupation al, institutional or other like use.
Tax in participating province	(2) Subject to this Part, every person who is resident in a participating province and is liable under the Customs Act to pay duty on imported goods, or who would be so liable if the goods were subject to duty, shall pay to Her Majesty in right of Canada, in addition to the tax imposed by section 212, a tax on the goods calculated at the tax rate for that province on the value of the goods.
Exception	(3) Tax under subsection (2) does not apply to goods that are accounted for as commercial goods under section 32 of the Customs Act, specified motor vehicles or a mobile home or a floating home that has been used or occupied in Canada by any individual.
	(2) Subsection (1) comes into force on April 1, 1997.
	200. (1) Section 213.1 of the Act is replaced by the following:
Security	213.1 For the purposes of this Division, the Minister may require a person mentioned in section 212 or 212.1 who imports goods to provide security, in an amount determined by the Minister and subject to such terms and conditions as the Minister may specify, for the payment of any amount that is or may become payable by the person under this Division, where provisions of the Customs Act, the Customs Tariff or any other laws relating to customs under which security may be required do not apply to the payment of that amount.
	(2) Subsection (1) comes into force on April 1, 1997.
	201. (1) Section 214 of the Act is replaced by the following:
Payment of taxes	214. Tax on goods under this Division shall be paid and collected under the Customs Act, and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the tax were a customs duty levied on the goods under the Customs Tariff and, for those purposes, the Customs Act, with such modifi cations as the circumstances require, applies subject to this Division.
Deduction	214.1 Where tax under section 212.1 is payable by a person and all or any portion of that tax is an amount that is prescribed for the purposes of subsection 234(3), that amount shall be deducted from that tax in determining the amount required to be paid and collected under section 214.
	(2) Subsection (1) comes into force on April 1, 1997.
	202. (1) The description of A in subsec tion 215.1(2) of the Act is replaced by the following:
	A is the total of the rate of tax imposed under section 212 at the time the goods were ac counted for under subsection 32(1), (2) or (5) of the Customs Act and, where an amount was paid as tax under section 212.1, the rate of tax imposed under that section at that time;
	(2) Subsection (1) applies to rebates in respect of amounts paid as tax on or after April 1, 1997.
	203. The heading ``Tax on Imported Taxable Supplies Other Than Goods'' before section 217 of the Act is replaced by the following:
	TAX ON IMPORTED TAXABLE SUPPLIES
	204. (1) Section 218 of the Act is replaced by the following:
Imposition of goods and services tax	218. Subject to this Part, every recipient of an imported taxable supply shall pay to Her Majesty in right of Canada tax calculated at the rate of 7% on the value of the consider ation for the imported taxable supply.
Tax in participating province	218.1 (1) Subject to this Part,
	(a) every person who is resident in a particular participating province and is the recipient of an imported taxable supply of property or a service that is acquired by the person
	(i) in the case of a supply of intangible personal property or a service, for con sumption, use or supply primarily in participating provinces, or
	(ii) in any other case, for consumption, use or supply to any extent in participat ing provinces, and
	(b) every registrant who is the recipient of a taxable supply, described in paragraph (b) of the definition ``imported taxable supply'' in section 217, of property the physical possession of which is transferred to the person in the province
	shall pay to Her Majesty in right of Canada, each time an amount of consideration for the supply becomes due or is paid without having become due, in addition to the tax imposed by section 218, tax equal to the amount deter mined by the formula
	A x B x C
	where
	A is the tax rate for the province,
	B is the value of that consideration that is paid or becomes due at that time, and
	C is
	(a) in the case of an imported taxable supply of tangible personal property, 100%, and
	(b) in any other case, the extent (ex pressed as a percentage) to which the person acquired the property or service for consumption, use or supply in the province.
Selected listed financial institutions	(2) Tax under subsection (1) that would, but for this provision, become payable by a person when the person is a selected listed financial institution is not payable.
When tax payable	218.2 Tax under this Division that is calculated on an amount of consideration for a supply that becomes due at any time, or is paid at any time without having become due, becomes payable at that time.
	(2) Subsection (1) comes into force on April 1, 1997.
	205. (1) The Act is amended by adding the following after section 220:

Bill C-70

TAX ON IMPORTED TAXABLE SUPPLIES