(a) a cooperative housing corporation (in this subsection referred to as the ``cooperative'')

      (i) is the recipient of a taxable supply by way of sale (in this subsection referred to as the ``purchase from the supplier'') from another person of a residential complex or of an interest in a residential complex and is not a builder of the complex, or

      (ii) is a builder of a residential complex, or of an addition to a multiple unit residential complex, who makes an exempt supply by way of lease included in section 6 of Part I of Schedule V that results in the cooperative being deemed under section 191 to have made and received a taxable supply by way of sale (in this subsection referred to as the ``deemed purchase'') of the complex or addition and to have paid tax in respect of that supply,

    (b) the cooperative is not entitled to include the tax in respect of the purchase from the supplier, or the tax in respect of the deemed purchase, in determining an input tax credit of the cooperative, and

    (c) at any time at which a residential unit included in the complex is a qualifying residential unit of the cooperative, the cooperative first gives occupancy of the unit after its construction or last substantial renovation under an agreement for a supply of that unit that is an exempt supply included in section 6 of Part I of Schedule V,

the Minister shall, subject to subsections (7) and (8), pay a rebate to the cooperative in respect of that unit equal to the amount determined by the formula

[A x ($450,000 - B)/$100,000] - C

where

A is the lesser of $8750 and the amount de termined by the formula

A1 x A2

    where

    A1 is 36% of the total tax under subsection 165(1) that is payable in respect of the purchase from the supplier or is deemed to have been paid in respect of the deemed purchase, and

    A2 is

        (i) if the unit is a single unit residential complex, 1, and

        (ii) in any other case, the unit's percentage of total floor space,

B is the greater of $350,000 and

      (i) if the unit is a single unit residential complex or a residential condominium unit, the fair market value of the unit at the particular time at which tax first becomes payable in respect of the purchase from the supplier or tax in respect of the deemed purchase is deemed to have been paid by the cooperative, and

      (ii) in any other case, the amount determined by the formula

B1 x B2

      where

      B1 is the unit's percentage of total floor space, and

      B2 is the fair market value of the complex at the particular time, and

C is the amount of the rebate, if any, under subsection 255(2) that the recipient of the exempt supply of the unit was entitled to claim in respect of the unit.

Rebate for land leased for residential purposes

(6) If

    (a) a person makes an exempt supply of land

      (i) that is a supply included in paragraph 7(a) of Part I of Schedule V made to a person described in subparagraph (i) of that paragraph, or that is a supply, included in paragraph 7(b) of that Part, of a site in a residential trailer park, and

      (ii) that results in the person being deemed under any of subsections 190(3) to (5), 200(2), 206(4) and 207(1) to have made and received a taxable supply by way of sale of the land and to have paid tax, at a particular time, in respect of that supply,

    (b) in the case of an exempt supply of land described in paragraph 7(a) of Part I of Schedule V, the residential unit that is or is to be affixed to the land is or will be so affixed for the purpose of its use and enjoyment as a primary place of residence for individuals, and

    (c) the person is not entitled to include the tax deemed to have been paid by the person in determining an input tax credit of the person,

the Minister shall, subject to subsections (7) and (8), pay a rebate to the person equal to the amount determined by the formula

A x ($112,500 - B)/$25,000

where

A is

      (i) in the case of a taxable supply in respect of which the person is deemed to have paid tax calculated on the fair market value of the land, 36% of the tax under subsection 165(1) that is deemed to have been paid in respect of that supply, and

      (ii) in the case of a taxable supply in respect of which the person is deemed to have paid tax equal to the basic tax content of the land, 36% of the qualifying portion of the basic tax content of the land at the particular time, and

B is the greater of $87,500 and

      (i) in the case of a supply of land included in paragraph 7(a) of Part I of Schedule V, the fair market value of the land at the particular time, and

      (ii) in the case of a supply of a site in a residential trailer park or in an addition to a residential trailer park, the fair market value, at the particular time, of the park or addition, as the case may be, divided by the total number of sites in the park or addition, as the case may be, at the particular time.

Application for rebate and payment of tax

(7) A rebate shall not be paid to a person under this section unless

    (a) the person files an application for the rebate within two years after

      (i) in the case of a rebate under subsection (5), the end of the month in which the person makes the exempt supply referred to in subparagraph (5)(a)(ii),

      (ii) in the case of a rebate under subsection (6), the end of the month in which the tax referred to in that subsection is deemed to have been paid by the person, and

      (iii) in any other case of a rebate in respect of a residential unit, the end of the month in which tax first becomes payable by the person, or is deemed to have been paid by the person, in respect of the unit or interest in the unit or in respect of the residential complex or addition, or interest therein, in which the unit is situated;

    (b) if the rebate is in respect of a taxable supply received by the person from another person, the person has paid all of the tax payable in respect of that supply; and

    (c) if the rebate is in respect of a taxable supply in respect of which the person is deemed to have collected tax in a reporting period of the person, the person has reported the tax in the person's return under Division V for the reporting period and has remitted all net tax remittable, if any, as reported in that return.

Special rules

(8) For the purposes of this section,

    (a) if, at any time, substantially all of the residential units in a multiple unit residential complex containing ten or more residential units are residential units in respect of which the condition set out in subparagraph (a)(iii) of the definition ``qualifying residential unit'' in subsection (1) is satisfied, all of the residential units in the complex are deemed to be residential units in respect of which that condition is satisfied at that time; and

    (b) except in the case of residential units referred to in paragraph (a) of the definition ``self-contained residence'' in subsection (1),

      (i) the two residential units that are located in a multiple unit residential complex containing only those two residential units are deemed to together form a single residential unit, and the complex is deemed to be a single unit residential complex and not to be a multiple unit residential complex, and

      (ii) if a residential unit (in this subparagraph referred to as a ``specified unit'') in a building affords direct internal access (with or without the use of a key or similar device) to another area of the building that is all or part of the living area of a particular residential unit, the specified unit is deemed to be part of the particular residential unit and not to be a separate residential unit.

Restrictions

(9) No rebate shall be paid to a person under this section if all or part of the tax included in determining the rebate would otherwise be included in determining a rebate of the person under any of sections 254, 256, 256.1 and 259 and, in determining the rebate of a person under this section, there shall not be included any amount of tax that the person is, under an Act of Parliament (other than this Act) or any other law,

    (a) not required to pay or remit; or

    (b) entitled to recover by way of a rebate, refund or remission.

Repayment of rebate

(10) If a person was entitled to claim a rebate under subsection (3) in respect of a qualifying residential unit (other than a unit located in a multiple unit residential complex) and, within one year after the unit is first occupied as a place of residence after the construction or last substantial renovation of the unit was substantially completed, the person makes a supply by way of sale (other than a supply deemed under section 183 or 184 to have been made) of the unit to a purchaser who is not acquiring the unit for use as the primary place of residence of the purchaser or of a relation of the purchaser, the person shall pay to the Receiver General an amount equal to the rebate, plus interest at the rate prescribed for the purposes of paragraph 280(1)(b), calculated on that amount for the period beginning on the day the rebate was paid or applied to a liability of the person and ending on the day the amount of the rebate is paid by the person to the Receiver General.

(2) Section 256.2 of the Act, as enacted by subsection (1), is deemed to have come into force on February 28, 2000 except that

    (a) subsections (3) to (5) of that section apply

      (i) to a taxable supply by way of sale of a residential complex or an interest in a residential complex to a person who is not a builder of the complex, or of a residential complex or an addition to a residential complex to a person who is, otherwise than by reason of subsection 190(1) of the Act, a builder of the complex or addition, as the case may be, only if the construction or last substantial renovation of the complex or addition, as the case may be, began after February 27, 2000, and

      (ii) to a taxable supply by way of sale of a residential complex or an addition to a residential complex that is deemed to be made to a person who has converted real property for use as the residential complex or the addition to a residential complex and is, as a result, deemed under subsection 190(1) of the Act to be a builder of the complex or addition, only if the construction or alteration necessary to effect the conversion began after February 27, 2000; and

    (b) subsection (6) of that section does not apply to exempt supplies made before February 28, 2000.

(3) If, in order to satisfy the condition under paragraph 256.2(7)(a) of the Act, as enacted by subsection (1), with respect to a rebate of a person, the person would have to file an application for the rebate before the particular day that is two years after the day on which this Act is assented to, the person shall, despite that paragraph, have until the particular day to file the application.

17. (1) Subsection 261.01(3) of the Act is amended by striking out the word ``and'' at the end of paragraph (a), by adding the word ``and'' at the end of paragraph (b) and by adding the following after paragraph (b):

    (c) an amount of tax under subsection 165(1) that was payable or was deemed under section 191 to have been paid by a trust in respect of a taxable supply to the trust of a residential complex, an addition to a residential complex or land if, in respect of that supply, the trust was entitled to claim any rebate under section 256.2 or would be so entitled after paying the tax payable in respect of that supply.

(2) Subsection (1) is deemed to have come into force on February 28, 2000.

1993, c. 27, s. 117(2)

18. (1) Subsection 262(3) of the Act is replaced by the following:

Group of individuals

(3) If

    (a) a supply of a residential complex or a share of the capital stock of a cooperative housing corporation is made to two or more individuals, or

    (b) two or more individuals construct or substantially renovate, or engage another person to construct or substantially renovate, a residential complex,

the references in sections 254 to 256 to a particular individual shall be read as references to all of those individuals as a group, but only one of those individuals may apply for the rebate under section 254, 254.1, 255 or 256, as the case may be, in respect of the complex or share.

(2) Subsection (1) is deemed to have come into force on June 1, 1997.

19. (1) The Act is amended by adding the following after section 273:

Subdivision b.2

Export distribution centres

Definitions

273.1 (1) The definitions in this subsection apply in this section.

``added property''
« bien d'appoint »

``added property'' that is in the possession of a person means tangible personal property (other than property that serves as evidence of the payment of postage) or software that the person incorporates into, attaches to, combines or assembles with, or uses to pack, other property that is not property of the person held otherwise than for sale by the person.

``base value''
« valeur de base »

``base value'' of property that a particular person imports or obtains physical possession of in Canada from another person means

      (a) if the particular person imports the property, the value that is or would be, but for subsection 215(2), deemed under subsection 215(1) to be the value of the property for the purposes of Division III; and

      (b) in any other case, the fair market value of the property at the time the particular person obtains physical possession of it in Canada.

``basic service''
« service de base »

``basic service'' means any of the following services performed at any time in respect of goods, to the extent that, if the goods were held in a bonded warehouse at that time, it would be feasible, given the stage of processing of the goods at that time, to perform that service in the bonded warehouse and it would be permissible to do so according to the Customs Bonded Warehouses Regulations:

      (a) disassembling or reassembling, if the goods have been assembled or disassembled for packing, handling or transportation purposes;

      (b) displaying;

      (c) inspecting;

      (d) labelling;

      (e) packing;

      (f) removing, for the sole purpose of soliciting orders for goods or services, a small quantity of material, or a portion, a piece or an individual object, that represents the goods;

      (g) storing;

      (h) testing; or

      (i) any of the following that do not materially alter the characteristics of the goods:

        (i) cleaning,

        (ii) complying with any applicable law of Canada or of a province,

        (iii) diluting,

        (iv) normal maintenance and servicing,