Budget Implementation Act, 2021, No. 1 (S.C. 2021, c. 23)

• 108 (1) Subsection 240(2) of the Act is replaced by the following:

  • Marginal note:Non-resident supplier — tangible personal property

    (1.5) Despite subsection (1), every person that is required under section 211.22 to be registered under this Subdivision is required to be registered for the purposes of this Part.

  • Marginal note:Non-resident performers, etc.

    (2) Every person (other than a person registered under Subdivision E of Division II) that enters Canada for the purpose of making taxable supplies of admissions in respect of a place of amusement, a seminar, an activity or an event is required to be registered for the purposes of this Part and shall, before making any such supply, apply to the Minister for registration.

• (2) The portion of subsection 240(2.1) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Application

    (2.1) A person required under any of subsections (1) to (1.2) and (1.5) to be registered must apply to the Minister for registration before the day that is 30 days after

• (3) Subsection 240(2.1) of the Act is amended by striking out “and” at the end of paragraph (a.1) and by adding the following after that paragraph:

  • (a.2) in the case of a person required under subsection (1.5) to be registered, the first day on which the person is required under section 211.22 to be registered under this Subdivision; and

• (4) The portion of subsection 240(3) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Registration permitted

    (3) An application for registration for the purposes of this Part may be made to the Minister by any person that is not required under subsection (1), (1.1), (1.2), (1.5), (2) or (4) to be registered, that is not required to be included in, or added to, the registration of a group under subsection (1.3) or (1.4) and that

• (5) The portion of paragraph 240(3)(d) of the Act after subparagraph (ii) is replaced by the following:

  if all or substantially all of the property of the other corporation is, for the purposes of section 186, property that was last manufactured, produced, acquired or imported by the other corporation for consumption, use or supply exclusively in the course of its commercial activities;

• (6) Paragraph 240(3)(d) of the Act, as amended by subsection (5), is replaced by the following:

  • (d) is resident in Canada and is

    • (i) a particular corporation, partnership or trust that owns units (as defined in subsection 186(0.1)) or holds indebtedness of a corporation that is, for the purposes of section 186, an operating corporation of the particular corporation, partnership or trust, or

    • (ii) a particular corporation that is acquiring, or proposes to acquire, all or substantially all of the issued and outstanding shares of the capital stock of another corporation, having full voting rights under all circumstances, if all or substantially all of the property of the other corporation is, for the purposes of section 186, property that was last manufactured, produced, acquired or imported by the other corporation for consumption, use or supply exclusively in the course of its commercial activities,

• (7) Subsections (1) to (4) come into force, or are deemed to have come into force, on July 1, 2021.

• (8) Subsection (5) applies in respect of any application for registration for the purposes of Part IX of the Act made on or before May 17, 2019.

• (9) Subsection (6) applies in respect of any application for registration for the purposes of Part IX of the Act made after May 17, 2019.

• 109 (1) Subsection 262(3) of the Act is replaced by the following:

  • Marginal note:Group of individuals

    (3) If 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 if two or more individuals construct or substantially renovate, or engage another person to construct or substantially renovate, a residential complex, the following rules apply in respect of those individuals:

    • (a) subject to paragraphs (b) and (c), the references in sections 254 to 256 to a particular individual shall be read as references to all of those individuals as a group;

    • (b) the references in paragraphs 254(2)(b), 254.1(2)(b) and 255(2)(c) and 256(2)(a) and (2.2)(b) to the primary place of residence of the particular individual or a relation of the particular individual are to be read as references to the primary place of residence of any of those individuals or a relation of any of those individuals;

    • (c) the references in clause 254(2)(g)(i)(A), subparagraphs 254.1(2)(g)(i), 255(2)(f)(i) and 256(2)(d)(i) and paragraph 256(2.2)(c) to the particular individual or a relation of the particular individual are to be read as references to any of those individuals or a relation of any of those individuals; and

    • (d) 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) applies in respect of

  • (a) any rebate under subsection 254(2), 254.1(2) or 255(2) of the Act in respect of which the agreement referred to in paragraph 254(2)(b), 254.1(2)(a) or 255(2)(c) of the Act, as the case may be, is entered into after April 19, 2021; and

  • (b) any rebate under subsection 256(2) of the Act

    • (i) in respect of a residential complex (other than a mobile home or floating home) if the construction or substantial renovation of the residential complex is substantially completed after April 19, 2021, or

    • (ii) in respect of a mobile home or floating home acquired or imported after April 19, 2021.

110 The Act is amended by adding the following after section 285.01:

• 111 (1) Subsection 286(1) of the Act is replaced by the following:

  Marginal note:Keeping books and records

  • 286 (1) Every person that carries on a business or is engaged in a commercial activity in Canada, every person that is required under this Part to file a return and every person that makes an application for a rebate or refund shall keep all records that are necessary to enable the determination of the person’s liabilities and obligations under this Part or the amount of any rebate or refund to which the person is entitled.

  • Marginal note:Minister may specify information

    (1.1) The Minister may specify the form a record is to take and any information that the record shall contain.

  • Marginal note:Language and location of record

    (1.2) Unless otherwise authorized by the Minister, a record shall be kept in Canada in English or in French.

• (2) Subsection (1) comes into force, or is deemed to have come into force, on July 1, 2021.

• 112 (1) The definition business number in subsection 295(1) of the Act is amended by striking out “or” at the end of paragraph (a) and by adding the following after that paragraph:

  • (a.1) a person registered under Subdivision E of Division II; or

• (2) Paragraph 295(6.1)(a) of the Act is replaced by the following:

  • (a) the identified person is registered under Subdivision E of Division II or Subdivision D of Division V; and

• (3) Subsections (1) and (2) come into force, or are deemed to have come into force, on July 1, 2021.

113 Paragraph 298(1)(e) of the Act is replaced by the following:

• 114 (1) Part II.1 of Schedule VI to the Act is amended by adding the following after section 1:

  • 2 A supply of a face mask or respirator that is designed for human use and is authorized for medical use in Canada.

  • 3 A supply of a face mask or respirator that meets N95, KN95 or equivalent certification requirements, is designed for human use and does not have an exhalation valve or vent.

  • 4 A supply of

    • (a) a face mask or respirator that

      • (i) is designed for human use,

      • (ii) is made of multiple layers of dense material, but may have a portion in front of the lips made of transparent and impermeable material that permits lip reading provided that there is a tight seal between the transparent material and the rest of the face mask or respirator,

      • (iii) is large enough to completely cover the nose, mouth and chin without gaping,

      • (iv) has ear loops, ties or straps for securing the face mask or respirator to the head,

      • (v) is for use in preventing the transmission of infectious agents such as respiratory viruses, and

      • (vi) does not have an exhalation valve or vent; or

    • (b) a prescribed mask or respirator.

  • 5 A supply of

    • (a) a face shield that is designed for human use, has a transparent and impermeable window or visor, covers the entire face and has a head strap or cap for holding it in place, but not including a supply of a face shield specifically designed or marketed for a use other than preventing the transmission of infectious agents such as respiratory viruses; or

    • (b) a prescribed shield.

• (2) Subsection (1) applies to supplies made after December 6, 2020.

• 115 (1) The portion of the definition freight transportation service in subsection 1(1) of Part VII of Schedule VI to the English version of the Act before paragraph (a) is replaced by the following:

  freight transportation service means a particular service of transporting tangible personal property including

• (2) The definition freight transportation service in subsection 1(1) of Part VII of Schedule VI to the Act is amended by striking out “and” at the end of paragraph (a) and by adding the following after that paragraph:

  • (a.1) a service of driving an automotive vehicle designed or adapted to be used on highways and streets for the purpose of delivering the vehicle to a destination, and

• (3) The portion of the definition freight transportation service in subsection 1(1) of Part VII of Schedule VI to the English version of the Act after paragraph (b) is replaced by the following:

  but not including a service provided by the supplier of a passenger transportation service of transporting an individual’s baggage in connection with the passenger transportation service;

• (4) Subsections (1) to (3) are deemed to have come into force on May 18, 2019 but also apply in respect of any supply made before that day if the supplier did not, before that day, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply.

SOR/2010-151New Harmonized Value-added Tax System Regulations, No. 2

• 116 (1) Section 40 of the New Harmonized Value-added Tax System Regulations, No. 2 is replaced by the following:

  Marginal note:Group of individuals

  40 If 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 if two or more individuals construct or substantially renovate, or engage another person to construct or substantially renovate, a residential complex, the following rules apply in respect of those individuals:

  • (a) subject to paragraphs (b) and (c), the references in sections 41, 43, 45 and 46 and the references in section 256.21 of the Act to an individual are to be read as references to all of those individuals as a group;

  • (b) the references in subsection 41(2) and paragraphs 45(2)(a), 46(2)(a) and 46(5)(c) to the primary place of residence of an individual or a relation of the individual are to be read as references to the primary place of residence of any of those individuals or a relation of any of those individuals;

  • (c) the reference in paragraph 46(5)(d) to the particular individual or a relation of the particular individual is to be read as a reference to any of those individuals or a relation of any of those individuals; and

  • (d) only one of those individuals may apply for a rebate under subsection 256.21(1) of the Act in respect of the complex or share, the amount of which is determined under section 41, 43, 45 or 46.

• (2) Subsection (1) applies in respect of

  • (a) any rebate under subsection 256.21(1) of the Excise Tax Act, the amount of which is determined under subsection 41(2), 43(1) or 45(2) of the Regulations, in respect of which the agreement referred to in paragraph 254(2)(b), 254.1(2)(a) or 255(2)(c) of that Act, as the case may be, is entered into after April 19, 2021; and

  • (b) any rebate under subsection 256.21(1) of the Excise Tax Act, the amount of which is determined under subsection 46(2) of the Regulations

    • (i) in respect of a residential complex (other than a mobile home or floating home) if the construction or substantial renovation of the residential complex is substantially completed after April 19, 2021, or

    • (ii) in respect of a mobile home or floating home acquired, imported or brought into a participating province after April 19, 2021.

PART 3Amendments to the Excise Act, 2001

2002, c. 22Excise Act, 2001

• 117 (1) The definition adjustment day in section 58.1 of the Excise Act, 2001 is amended by striking out “or” at the end of paragraph (a.1) and by adding the following after that paragraph:

  • (a.2) April 20, 2021; or

• (2) Subsection (1) is deemed to have come into force on April 20, 2021.

• 118 (1) Section 58.2 of the Act is amended by adding the following after subsection (1.1):

  • Marginal note:Imposition of tax — 2021 increase

    (1.2) Subject to section 58.3, every person shall pay to Her Majesty a tax on all taxed cigarettes of the person held at the beginning of April 20, 2021 at the rate of $0.02 per cigarette.

• (2) Subsection (1) is deemed to have come into force on April 20, 2021.

• 119 (1) Subsection 58.5(1) of the Act is amended by striking out “or” at the end of paragraph (a.1) and by adding the following after that paragraph:

  • (a.2) in the case of the tax imposed under subsection 58.2(1.2), June 30, 2021; or

• (2) Subsection (1) is deemed to have come into force on April 20, 2021.

• 120 (1) Subsection 58.6(1) of the Act is amended by striking out “or” at the end of paragraph (a.1) and by adding the following after that paragraph:

  • (a.2) in the case of the tax imposed under subsection 58.2(1.2), June 30, 2021; or

• (2) Subsection (1) is deemed to have come into force on April 20, 2021.