O. Reg. 263/10: DEFINITIONS, EXEMPTIONS AND REBATES

 

ontario regulation 263/10

made under the

retail sales tax act

Made: June 22, 2010
Filed: June 28, 2010
Published on e-Laws: June 29, 2010
Printed in The Ontario Gazette: July 17, 2010

Amending Reg. 1012 of R.R.O. 1990

(Definitions, Exemptions and Rebates)

1. Sections 26 and 27 of Regulation 1012 of the Revised Regulations of Ontario, 1990 are revoked and the following substituted:

Tax under Section 4.2 of the Act

Appraised value of specified vehicle

26. For the purposes of subsection 4.2 (2) of the Act, the appraised value of a specified vehicle is the value, determined in a form satisfactory to the Minister,

(a) by a person who is recognized by an insurer licensed under the Insurance Act to appraise motor vehicles; or

(b) by a person who is registered under the Motor Vehicle Dealers Act, 2002 as a motor vehicle dealer and who sells, at retail, an average of 25 motor vehicles in a year.

Average wholesale price of specified vehicle

27. (1) For the purposes of the definition of “fair market value” in subsection 4.2 (3) of the Act, the average wholesale price of a specified vehicle is the amount determined in accordance with this section.

(2) For any of the following specified vehicles, the average wholesale price is the amount, without adjustment, that is specified in the most recent edition of the Canadian Red Book or the Canadian Older Car/Truck Red Book that describes the make, model and year of the specified vehicle:

1. An automobile, truck or van that has an empty vehicle weight of not more than 2,200 kilograms and for which a permit is required under the Highway Traffic Act to drive on a highway.

(3) If neither the Canadian Red Book nor the Canadian Older Car/Truck Red Book specifies an amount for the make or model of a particular specified vehicle to which subsection (2) applies, the average wholesale price for the specified vehicle is the amount specified for the make or model that, in the opinion of the Minister, is most similar to that of the particular specified vehicle.

(4) If neither the Canadian Red Book nor the Canadian Older Car/Truck Red Book specifies an amount for the year of a particular specified vehicle to which subsection (2) applies, the average wholesale price for the specified vehicle is the amount specified for the year nearest to that of the specified vehicle.

(5) For any of the following specified vehicles, the average wholesale price is an amount equal to its the fair value under the Act instead of the amount otherwise determined under subsection (2), (3) or (4):

1. A specified vehicle acquired outside Ontario which is brought into Ontario after June 30, 2010 or which the purchaser receives delivery of in Ontario after June 30, 2010.

2. A specified vehicle sold by a person who is registered under the Motor Vehicle Dealers Act, 2002 as a motor vehicle dealer or who holds a similar registration or licence under the laws of another jurisdiction in Canada.

3. A specified vehicle acquired under a lease or rental from a vendor.

4. A specified vehicle acquired by a lessee from a vendor through the exercise of an option under the lease or rental agreement or a similar right to acquire the vehicle.

5. A specified vehicle with an average wholesale price as determined under subsection (2), (3) or (4) is less than $1,000.

(6) Despite subsection (5), if an application is made to register an antique or other motor vehicle for which the average wholesale price cannot be determined under subsection (2), (3) or (4), its average wholesale price is the greatest of,

(a) the sale price of the vehicle;

(b) the replacement value of the vehicle for insurance purposes; or

(c) the appraised value of the vehicle as determined under section 26.

2. Subsection 28 (7) of the Regulation is amended by adding the following paragraphs:

6. A person’s consumption or use of a vehicle produced by the person.

7. The acquisition of a vehicle in Canada but outside Ontario that the purchaser brings into Ontario after June 30, 2010 or receives delivery of in Ontario after June 30, 2010, if the purchaser is subject to tax under Subdivision a of Division IV.1 of Part IX of the Excise Tax Act (Canada) in connection with bringing the vehicle into Ontario.

8. The acquisition of a vehicle in Canada but outside Ontario that the purchaser brings into Ontario after June 30, 2010 or receives delivery of in Ontario after June 30, 2010, if the purchaser acquired the vehicle,

i. at a sale that is a taxable supply by a registrant under Part IX of the Excise Tax Act (Canada), or

ii. at a sale that is an exempt supply under Part I of Schedule 5 to the Excise Tax Act (Canada).

3. The Regulation is amended by adding the following sections:

Transitional Matters — Harmonized Sales Tax

Transitional rebate re residential property

34. (1) The Minister may provide a rebate to a person equal to the tax paid by the person under this Act on specified inventory that is held by the person immediately before July 1, 2010 and is incorporated into residential premises as part of the repair or improvement of the residential premises after June 30, 2010 and before January 1, 2011.

(2) An application for a rebate under subsection (1) must be made in writing to the Minister before January 1, 2011 and must include such information and documents as the Minister may specify.

(3) The rebate under subsection (1) is only available with respect to specified inventory,

(a) that is used in a supply for which tax was paid under subsection 165 (2) of the Excise Tax Act (Canada); and

(b) that is not used in the construction or substantial renovation of residential premises in respect of which a rebate under section 256.21 of the Excise Tax Act (Canada) is available.

(4) No rebate may be made under subsection (1) to a person to the extent that the person or another person otherwise receives or is eligible to receive, directly or indirectly, a payment, credit, refund, rebate, adjustment or other relief in respect of the tax to which the rebate under subsection (1) would relate.

(5) For the purposes of subsection (1), the specified inventory of a person is to be determined as of immediately before July 1, 2010 and may be determined,

(a) on June 30, 2010;

(b) if the person’s business is not open for active business on June 30, 2010, on the first day after June 30, 2010 or the last day before June 30, 2010 on which the business is open for active business; or

(c) on a day before or after June 30, 2010, if the Minister is satisfied that the person’s inventory system is adequate to permit a reasonable determination of the person’s inventory as of the end of the day on June 30, 2010.

(6) For the purposes of this section,

“capital property” means, in respect of a person, property that is, or that would be if the person were a taxpayer under the Income Tax Act (Canada), capital property of the person within the meaning of that Act;

“residential premises” means real property in Ontario that would be a “residential complex” within the meaning of subsection 123 (1) of the Excise Tax Act (Canada) if that definition were read without paragraphs (d) and (e);

“specified inventory” means, with respect to a person and as of a particular time, tax-paid property of the person that is construction materials held at that time for use or supply by the person in the repair or improvement of residential premises, but does not include,

(a) any such property that, before that time, has been incorporated into residential premises or has otherwise been delivered to a construction, renovation, repair or improvement job site,

(b) capital property of the person,

(c) property held by the person for use in the construction, renovation, repair or improvement of property that is, or is to be, capital property of the person, or

(d) property that is included in any other person’s inventory at that time;

“substantial renovation” has the same meaning as in subsection 123 (1) of the Excise Tax Act (Canada);

“supply” has the same meaning as in subsection 123  (1) of the Excise Tax Act (Canada);

“tax-paid property” means tangible personal property,

(a) purchased or produced by a person before July 1, 2010 for the person’s own use in the repair or improvement of the residential premises, and

(b) in respect of which the person paid tax under the Act.

Transitional rebate re double taxation

35. (1) This section applies if a person described in clause (b) of the definition of “specified purchaser” in subsection 2.0.0.1 (1) of the Act,

(a) pays tax under section 2 of the Act, pursuant to section 2.0.0.1 of the Act, in respect of tangible personal property, a taxable service or an admission; and

(b) is also liable for tax under subsection 165 (2) of the Excise Tax Act (Canada) in respect of the tangible personal property, taxable service or admission.

(2) The Minister may provide a rebate to the person equal to the tax paid under section 2 of the Act for the tangible personal property or any part of the taxable service or admission to the extent that the person is also liable for tax under subsection 165 (2) of the Excise Tax Act (Canada) in respect of the tangible personal property or that part of the taxable service or admission.

(3) An application for a rebate under subsection (2) must be made in writing to the Minister and must be accompanied by proof satisfactory to the Minister that the person has paid the tax under section 2 of the Act and under subsection 165 (2) of the Excise Tax Act (Canada).

(4) No rebate may be made under subsection (2) to a person to the extent that the person or another person otherwise receives or is eligible to receive, directly or indirectly, a payment, credit, refund, rebate, adjustment or other relief in respect of the tax to which the rebate under subsection (2) would relate.

Progress payments under a contract

36. (1) This section applies in the circumstances described in section 2.0.1 of the Act with respect to the tangible personal property and taxable services referred to in that section.

(2) If the tangible personal property is delivered to the person who makes progress payments under the contract and is acquired by that person as purchaser, the following rules govern the manner in which tax imposed under subsection 2 (1) of the Act applies with respect to the tangible personal property:

1. If tangible personal property is delivered to the purchaser before July 1, 2010 under the contract, tax is payable by the purchaser under subsection 2 (1) of the Act for that tangible personal property.

2. If ownership of tangible personal property is transferred to the purchaser before July 1, 2010 under the contract, tax is payable by the purchaser under subsection 2 (1) of the Act for that tangible personal property.

3. No tax is payable by the purchaser under subsection 2 (1) of the Act for any other tangible personal property delivered or transferred to the purchaser under the contract.

(3) If the taxable services are provided to the person who makes progress payments under the contract and are acquired by that person as purchaser, the following rules govern the manner in which tax imposed under subsection 2 (3) of the Act applies with respect to the taxable services:

1. If any part of a taxable service is provided to the purchaser before July 1, 2010 under the contract, tax is payable by the purchaser under subsection 2 (3) of the Act for that part of the taxable service.

2. No tax is payable by the purchaser under subsection 2 (3) of the Act for any other part of the taxable service provided to the purchaser under the contract.

(4) In any other circumstance, the tax imposed under subsection 2 (1) or (3) of the Act, as the case may be, applies as provided under section 2.0.0.1 of the Act.

Rebate under Reg. 1013, s. 14 re construction contract

37. (1) This section applies with respect to rebates under section 14 of Regulation 1013 (General) made under the Retail Sales Tax Act that may be made to the governing body of a religious, charitable or benevolent organization in respect of tangible personal property incorporated into a building or structure in the circumstances described in that section.

(2) For the purpose of calculating the amount of the rebate under section 14 of Regulation 1013, the total contract price referred to in subsection 14 (4) of that regulation is the amount of the total contract price, as otherwise determined for the purposes of that section, that is attributable to the work performed under the contract before July 1, 2010.

(3) For the purposes of making the calculation described in subsection 14 (6) of Regulation 1013, the amount to be paid under subsection 14 (1) of that regulation is calculated in reference only to the progress payments, or the portion of the progress payments, that are attributable to the work performed under the contract before July 1, 2010.

4. This Regulation comes into force on the later of July 1, 2010 and the day it is filed.

Made by:

Dwight Douglas Duncan

Minister of Finance

Date made: June 22, 2010.