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Newfoundland Regulation 1997


NEWFOUNDLAND REGULATION 31/97

NEWFOUNDLAND REGULATION 31/97

Tax Agreement Regulations
under the
Tax Agreement Act
(O.C. 97-199)

(Filed March 27, 1997)

Under the authority of section 6 of the Tax Agreement Act and section 52 of the Retail Sales Tax Act, the Lieutenant-Governor in Council makes the following regulations.

Dated at St. John’s, April 1, 1997.

A. Faour Deputy
Clerk of the Executive Council

REGULATIONS

Analysis


        1.   Short title

              PART I
TRANSITIONAL
NEW HOUSING REBATE

        2.   Interpretation

        3.   Rebate

              PART II
TRANSITION FROM RETAIL SALES TAX

        4.   Definitions

        5.   General transitional

        6.   Continuous provision of property or service

        7.   Leases, licences etc.

              PART III
PRICE ADJUSTMENTS

        8.   Price adjustments

              PART IV
BOOK REBATE

        9.   Book rebate

      10.   Commencement


Short title

        1. These regulations may be cited as the Tax Agreement Regulations.

PART I
TRANSITIONAL
NEW HOUSING REBATE

Interpretation

        2. (1) In this Part

             (a)  "new residential home" and "new multi unit residential establishment" mean a qualifying addition and a qualifying residential complex as referred to in this Part;

             (b)  "qualifying addition" means an addition to a multiple unit residential complex other than an addition in which a unit was occupied by an individual as a place of residence or lodging after the construction of the addition began and before April 1, 1997;

             (c)  "qualifying interior floor space" of a qualifying residential complex or qualifying addition includes the width of the enclosing walls of the complex or addition that are not adjacent to another complex and half of the width of the enclosing walls of the complex or addition that are adjacent to another complex but does not include

                      (i)  storage rooms, attics and basements, unless they are finished to a standard comparable to the living areas of the complex or addition by the builder of the complex or addition,

                     (ii)  parking areas,

                    (iii)  areas set aside for the placement of equipment for the heating of or the supply of water, gas or electricity to the complex or addition, and

                    (iv)  in the case of a residential complex that is a condominium complex

                            (A)  a residential condominium unit where the unit was occupied by an individual as a place of residence or lodging after the construction or substantial renovation of the complex began and before April 1, 1997, or where tax is not payable under subsection 165(2) of the Excise Tax Act (Canada) in respect of a supply of the unit because of subsection 351(3) of that Act,

                            (B)  half of the width of the enclosing walls of the unit referred to in clause (A) that are adjacent to other units, and

                            (C)  the proportion of the total interior floor space of the common areas of the condominium complex that the number of square metres of interior floor space of the unit referred to in clause (A) is of the total number of square metres of interior floor space of all condominium units in the condominium complex;

             (d)  "qualifying residential complex" means a residential complex, the construction or substantial renovation of which began before April 1, 1997 other than a

                      (i)  floating home,

                     (ii)  mobile home,

                    (iii)  residential condominium unit,

                    (iv)  single unit residential complex that was occupied by an individual as a place of residence or lodging after the construction or substantial renovation of the complex began and before April 1, 1997,

                     (v)  multiple unit residential complex in which a residential unit was occupied by an individual as a place of residence or lodging after the construction or substantial renovation of the complex began and before April 1,1997, and

                    (vi)  residential complex where tax is not payable under subsection 165(2) of the Excise Tax Act (Canada) in respect of a supply of the complex because of subsection 351(1) or (5) of that Act or in respect of a supply of services relating to the construction or substantial renovation of the complex because of subsection 351(7) or (8) of that Act; and

             (e)  "required form" means the form and manner required by the minister.

             (2)  In this Part, "builder", "condominium complex", "floating home", "mobile home", "multiple unit residential complex", "residential condominium unit", "residential complex", "residential unit", "single unit residential complex" and "substantial renovation " have the meanings assigned by subsection 123(1) of the Excise Tax Act (Canada).

             (3)  This Part shall apply to new residential homes and new multi unit residential establishments.

Rebate

        3. (1) Where, immediately before April 1, 1997, a builder of a

             (a)  qualifying residential complex, other than a builder of the complex to whom subsections 191(1) to (4) of the Excise Tax Act (Canada) do not apply because of subsection 191(5), (6) or (6.1) of that Act, owned or had possession of the complex and had not transferred ownership or possession of the complex under an agreement of purchase and sale to a person who is not a builder of the complex; or

             (b)  qualifying addition to a multiple unit residential complex, other than a builder of the addition to whom subsection 191(4) of the Excise Tax Act (Canada) does not apply because of subsection 191(5), (6) or (6.1) of that Act, owned or had possession of the addition and neither transferred possession of the addition or a residential unit in the addition under a lease, licence or similar arrangement nor transferred ownership or possession of the addition or complex under an agreement of purchase and sale to a person who is not a builder of the addition,

the minister shall pay a rebate to the builder of the complex or addition equal to the amount determined by the formula

A x B x C

             (2)  In the formula A x B x C referred to in subsection (1)

          A is  $55

           B is  the number of square metres of qualifying interior floor space in the complex or addition, and

           C is

             (a)  50%, where the construction or substantial renovation of the complex or the construction of the addition was, on April 1, 1997, at least 25% completed and not more than 50% completed;

             (b)  75%, where the construction or substantial renovation of the complex or the construction of the addition was, on April 1, 1997, more than 50% completed and less than 90% completed; and

             (c)  90%, where the construction or substantial renovation of the complex or the construction of the addition was, on April 1, 1997, at least 90% completed.

             (3)  Notwithstanding subsections (1) and (2), a rebate in respect of a qualifying residential complex or a qualifying addition shall not be paid under this Part to a person who does not apply to the minister for the rebate in the required form before January 1, 1998 or where a rebate under this Part in respect of the complex or addition was paid to another person entitled to it.

             (4)  This section shall not apply in Labrador.

PART II
TRANSITION FROM RETAIL SALES TAX

Definitions

        4. In Parts II and III

             (a)  "retail sales tax" means retail sales tax imposed under the Retail Sales Tax Act as it exists on March 31, 1997;

             (b)  "service" means a service referred to in sections 14 and 15 of the Retail Sales Tax Act as it exists on March 31, 1997; and

             (c)  "tangible personal property" has the same meaning as in the Retail Sales Tax Act.

General transitional

        5. (1) Retail sales tax shall not apply where a person acquires tangible personal property or a service before April 1, 1997 and

             (a)  ownership and possession of that tangible personal property is transferred to that person after March 31, 1997; or

             (b)  the service is substantially performed after March 31, 1997.

             (2)  Where tangible personal property or all or substantially all of a service is acquired on or before March 31, 1997 and payment for that property or service is due or payable after that date, retail sales tax shall apply to that payment provided that that payment is due or payable before August 1, 1997.

             (3)  Where a service is acquired commencing before March 31, 1997 and ending after that date retail sales tax shall apply to that portion of the service performed before April 1, 1997 provided that payment is due or payable for that service before August 1, 1997.

             (4)  Notwithstanding subsections (1) and (2), retail sales tax shall apply where a person acquires ownership and possession of tangible personal property or acquires all or a portion of a service after March 31, 1997 and payment for that property or service is made or due on or before October 23, 1996.

Continuous provision of property or service

        6. Notwithstanding section 5, where tangible personal property or a service is acquired on a continuous basis by means of a wire, pipeline or other conduit commencing on or before March 31, 1997 and ending after that date retail sales tax shall apply to the portion of the payment due or payable in a billing period for that property or service calculated by the following formula

        TA =  DB/TD x TP

where

         TA -  is the amount of payment to which retail sales tax is applied;

          DB -  is number of days in the billing period occurring before April 1, 1997;

          TD -  is the total number of days in the billing period; and

          TP -  is the total payment due for that billing period.

Leases, licences etc.

        7. (1) Where a person acquires tangible personal property by way of lease, licence or other similar arrangement referred to in section 13 of the Retail Sales Tax Act commencing before April 1, 1997, and the payment period for that lease, licence or other arrangement ends

             (a)  before April 30, 1997, retail sales tax shall apply to the payment for that lease, licence or other arrangement; and

             (b)  after April 29, 1997, retail sales tax shall apply to the portion of the payment due or payable for the lease, licence or other arrangement that is a percentage of the number of days in the leasing, licensing or other arrangement payment period which occurs before April 1, 1997 divided by the total number of days in that period.

             (2)  Notwithstanding subsection (1), where tangible personal property is acquired, and payment for that property is by way of rent, royalty, lease or other similar payment for a period in which a service is also acquired with respect to that property and payment for the property and service is included on a single invoice, the entire transaction referred to on the invoice shall be treated as tangible personal property or a service acquired in accordance with section 6.

PART III
PRICE ADJUSTMENTS

Price adjustments

        8. Where a person paid retail sales tax on tangible personal property acquired before April 1, 1997 and that property is returned to the person from whom it was acquired after March 31, 1997 but on or before July 31, 1997,

             (a)  where the tangible personal property is returned and a full refund is made, retail sales tax shall be refunded;

             (b)  where the tangible personal property is exchanged for another tangible personal property equal in consideration to the original amount of consideration paid, there shall not be a retail sales tax refund; and

             (c)  where there is a partial refund of the amount of payment made for the tangible personal property, there shall be a refund of the retail sales tax with respect to the partial refund amount.

PART IV
BOOK REBATE

Book rebate

        9. (1) In this section

             (a)  "federal minister" means the minister of the government of Canada who is responsible for the administration and enforcement of Part IX of the Excise Tax Act (Canada);

             (b)  "printed book" has the meaning assigned to it under subsection 259.1(1) of the Excise Tax Act (Canada) and includes

                      (i)  an audio recording, all or substantially all of which is a spoken reading of a printed book,

                     (ii)  a bound or unbound printed version of scripture of any religion, and

                    (iii)  updates of printed books;

             (c)  "required form" means the form and manner required by the federal minister or under the Excise Tax Act (Canada);

             (d)  "supplier" has the meaning assigned to it under subsection 123(1) of the Excise Tax Act (Canada); and

             (e)  "recipient" has the meaning assigned to it under subsection 123(1) of the Excise Tax Act (Canada).

             (2)  Where a person is a recipient of a printed book after March 31, 1997 and tax is paid or payable with respect to that book under subsection 165(2) of the Excise Tax Act (Canada), the supplier of that printed book may, on behalf of the government of the province, pay or credit to the person who is the recipient of the printed book, an amount equal to the tax paid or payable under that subsection.

             (3)  Where, after March 31, 1997, a person is the recipient of a printed book brought in from outside the province and tax on that book is paid or payable under sections 212.1, 220.05 or 220.06 of the Excise Tax Act (Canada), the federal minister may, on behalf of the government of the province, pay or credit to the person, an amount equal to the tax paid or payable on the printed book under that subsection or section.

             (4)  Where a person to whom an amount is payable under subsections (2) and (3) is not paid or credited with that amount, that person may, not more than 4 years immediately after the date on which the person was the recipient of the printed book, apply to the federal minister in the required form for payment of that amount and the federal minister may, on behalf of the government of the province, pay or credit the amount to that person.

             (5)  Where, under subsection (2), the supplier of a printed book pays or credits an amount to the person who was the recipient of the printed book, the federal minister may, on behalf of the government of the province, pay or credit an equal amount to that supplier.

             (6)  Where the federal minister pays or credits an amount to a person under subsections (3) or (4) or to a supplier under subsection (5), the federal minister may deduct from or set off against a payment made by the Crown in right of Canada to the government of the province an equal amount to that paid or credited under those subsections.

Commencement

      10. These regulations shall come into force on April 1, 1997.