Section 351 — Excise Tax Act: Transfer of single unit residential complex after implementation

Where a supply by way of sale of a single unit residential complex, or of a building or part of it in which a residential unit forming part of such a complex is located, is made in a participating province to an individual under an agreement in writing between the supplier and the individual entered into on or before the announcement date for that province, and in the case of a sale of the complex, ownership of it is not transferred to the individual under the agreement before the implementation date for that province and, in any case, possession of the complex is transferred to the individual under the agreement on or after that implementation date, the following rules apply: no tax is payable under subsection 165(2) in respect of the supply made under that agreement or in respect of any supply of the complex deemed under subsection 191(1) to have been made before, or as a consequence of, the transfer of possession of the complex to the individual under that agreement, and no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the supplier in respect of the complex, the land included in the complex or an improvement thereto, or any other property or service to the extent that it was acquired, imported or brought into a participating province by the supplier for consumption or use in making a supply of the complex. If a supply referred to in paragraph (1)(a) of a residential complex or a building, or part of a building, forming part of a residential complex is made to a recipient who is a builder of the complex only because of paragraph (d) of the definition builder in subsection 123(1), no tax is payable under subsection 165(2) in respect of any supply of the complex made by that builder or any successor in title other than a taxable supply made by way of lease, licence or similar arrangement, or a taxable supply by way of sale made after either the builder or the successor has used the complex as capital property in a business of the builder or successor, substantially renovated the complex or made another supply by way of sale of the complex and subsequently reacquired it;

and no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the builder or successor in respect of any property or service to the extent that it was acquired, imported or brought into a participating province by the builder or successor for consumption or use in making a supply of the complex in respect of which tax under subsection 165(2) is not payable because of paragraph (a). Where a taxable supply by way of sale of a residential condominium unit is made in a participating province to a person under an agreement in writing between the supplier and the person entered into on or before the announcement date for that province, and ownership of the unit is not transferred to the person under the agreement before the implementation date for that province and possession thereof is transferred to the person under the agreement on or after that implementation date, the following rules apply: no tax is payable under subsection 165(2) in respect of the supply made under that agreement or in respect of any supply of the unit deemed under subsection 191(1) to have been made before possession thereof is transferred to the person under that agreement, and no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the supplier in respect of the unit, the land included in the unit or an improvement thereto, or any other property or service to the extent that it was acquired, imported or brought into a participating province by the supplier for consumption or use in making a supply of the unit. Where a supply referred to in paragraph (3)(a) of a residential condominium unit is made to a recipient who is a builder of the unit only because of paragraph (d) of the definition builder in subsection 123(1), no tax is payable under subsection 165(2) in respect of any supply of the unit made by that builder or any successor in title other than a taxable supply made by way of lease, licence or similar arrangement, or a taxable supply by way of sale made after either the builder or the successor has used the unit as capital property in a business of the builder or successor, substantially renovated the unit or made another supply by way of sale of the unit and subsequently reacquired it;

and no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the builder or successor in respect of any property or service to the extent that it was acquired, imported or brought into a participating province by the builder or successor for consumption or use in making a supply of the unit in respect of which tax under subsection 165(2) is not payable because of paragraph (a). Where a taxable supply by way of sale of a condominium complex is made in a participating province to a person under an agreement in writing between the supplier and the person entered into on or before the announcement date for that province, and ownership and possession of the complex are not transferred to the person under the agreement before the implementation date, and at any time on or after the implementation date, ownership of the complex is transferred to the person under the agreement or the complex is registered as a condominium, the following rules apply: no tax is payable under subsection 165(2) in respect of the supply made under that agreement or in respect of any supply of any residential condominium unit located in the complex deemed under subsection 191(1) to have been made before ownership thereof is transferred to the person under that agreement, and no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the supplier in respect of the complex, the land included in the complex or an improvement thereto, or any other property or service to the extent that it was acquired, imported or brought into a participating province by the supplier for consumption or use in making a supply of the complex. Where a supply referred to in paragraph (5)(a) of a condominium complex is made to a recipient who is a builder of the complex only because of paragraph (d) of the definition builder in subsection 123(1), no tax is payable under subsection 165(2) in respect of any supply of the complex or any residential condominium unit located in the complex made by that builder or any successor in title other than a taxable supply made by way of lease, licence or similar arrangement, a taxable supply by way of sale of the condominium complex made after either the builder or the successor has used the complex as capital property in a business of the builder or successor, substantially renovated the complex or made another supply by way of sale of the complex and subsequently reacquired it, or a taxable supply by way of sale of a residential condominium unit located in the complex made after either the builder or the successor has used the unit as capital property in a business of the builder or successor or made another supply by way of sale of the unit and subsequently reacquired it;

and no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the builder or successor in respect of any property or service to the extent that it was acquired, imported or brought into a participating province by the builder or successor for consumption or use in making a supply of the complex or the residential condominium unit located in the complex in respect of which tax under subsection 165(2) is not payable because of paragraph (a). Where an offering memorandum (within the meaning assigned by subsection 336(6)), in respect of an offer to sell interests in a limited partnership, is issued to prospective subscribers on or before the announcement date for a participating province, at the time the offering memorandum is issued, it is proposed that the limited partnership will exclusively engage in the activities of acquiring land in that province or a beneficial interest therein, constructing a condominium complex on the land, owning residential condominium units located in the complex and supplying those units by way of lease, licence or similar arrangement for the purpose of their occupancy by individuals as places of residence, the offering memorandum does not provide for an increase in the subscription prices (within the meaning assigned by subsection 336(6)) of the interests in the partnership because of a change in the application of taxes and those subscription prices are not increased after that day and before the offer to sell the interests expires, a particular interest in the limited partnership is transferred to a subscriber in accordance with the offering memorandum, the limited partnership, whether or not in concert with another person, acquires ownership of land in that province or a beneficial interest therein before the implementation date for that province, and engages a person to construct a condominium complex on that land under agreements in writing entered into on or before the announcement date for that province or under agreements in writing entered into after that day that substantially conform with terms and conditions relating to those agreements as set out in the offering memorandum, the particular interest relates to a particular residential condominium unit that is owned by the limited partnership and is located in the condominium complex, and possession of the particular residential condominium unit is given on or after the implementation date for that province to a person under a lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence, the following rules apply: no tax is payable by the limited partnership under subsection 165(2) in respect of a supply made under an agreement referred to in paragraph (e), no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the supplier in respect of any property or service to the extent that it was acquired, imported or brought into a participating province by the supplier for consumption or use in making the supply, no tax is payable by the limited partnership under subsection 165(2) in respect of a supply of any unit located in the complex deemed under subsection 191(1) to have been made, and no amount in respect of tax payable by the limited partnership under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the limited partnership in respect of any improvement to the land or complex, or any other property or service to the extent that it was acquired, imported or brought into a participating province by the limited partnership for consumption or use in making a supply of the complex or a unit located in the complex. Where a taxable supply is made in a participating province to an individual under an agreement in writing entered into on or before the announcement date for that province between the supplier and the individual to construct or substantially renovate a single unit residential complex, a residential condominium unit or a multiple unit residential complex that does not contain more than two residential units for use as the primary place of residence of the individual or another individual who is related to, or is the former spouse or common-law partner of, the individual, no tax is payable under subsection 165(2) in respect of the supply;

and no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the supplier in respect of any property or service to the extent that it was acquired, imported or brought into a participating province by the supplier for consumption or use in making the supply.