Section 256.21 — Excise Tax Act: Housing rebates — participating provinces

If a sales tax harmonization agreement with the government of a participating province allows for rebates in respect of residential property relating to the new harmonized value-added tax system in respect of that participating province, the Minister shall pay in prescribed circumstances a rebate in respect of prescribed property to a prescribed person, or a person of a prescribed class, equal to an amount determined in prescribed manner. A rebate in respect of an amount shall not be paid under subsection (1) to a person unless the person files an application for the rebate within the prescribed time. In the case of a rebate under subsection (1) (other than a rebate prescribed under subsection (6)), in prescribed circumstances, a prescribed person, or a person of a prescribed class, may pay or credit the amount of a rebate under subsection (1) to an individual of a prescribed class if the individual submits to the person in prescribed manner an application in prescribed form containing prescribed information. If an application in respect of a rebate is submitted to a person under subsection (3) the person shall transmit the application to the Minister in prescribed manner on or before the day on or before which the person’s return under Division V for the reporting period in which the rebate is paid or credited is required to be filed; and interest under subsection 297(4) is not payable in respect of the rebate. If a particular person pays or credits an amount of a rebate to another person under subsection (3), and the particular person knows or ought to know that the other person is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the other person is entitled, the particular person and the other person are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264. In the case of a rebate that is payable under subsection (1) in relation to the transition of a province to the new harmonized value-added tax system and that is prescribed for the purposes of this subsection, a person that is prescribed for the purposes of subsection (1) may, despite section 67 of the Financial Administration Act and any other provision of a law of Canada or a province, assign the rebate in prescribed circumstances to a prescribed person or a person of a prescribed class. An assignment made under subsection (6) of a rebate in respect of a participating province shall be made in prescribed form containing prescribed information and the form shall be filed with the Minister in prescribed manner on or before the day that is four years after the harmonization date for the participating province. An assignment made under subsection (6) is not binding on Her Majesty in right of Canada and, without limiting the generality of the foregoing, the Minister is not required to pay to the assignee the assigned amount; the assignment does not create any liability of Her Majesty in right of Canada to the assignee; and the rights of the assignee are subject to all equitable and statutory rights of set-off in favour of Her Majesty in right of Canada. If an amount of a rebate is assigned to a particular person by another person under subsection (6) and the particular person knows or ought to know that the other person is not entitled to the rebate or that the amount assigned exceeds the rebate to which the other person is entitled, the particular person and the other person are jointly and severally, or solidarily, liable to pay the amount of the rebate or excess to the Receiver General under section 264. The Minister may at any time assess an assignee in respect of any amount payable by reason of subsection (9) and sections 296 to 311 apply with any modifications that the circumstances may require.