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Volume 53, No. 12

B.C. Reg. 220/2010

The British Columbia Gazette,

Part II

June 29, 2010

B.C. Reg. 220/2010 , deposited June 29, 2010, pursuant to the SOCIAL SERVICE TAX ACT [Sections 128, 130, 135.2, 138, 139, 140, 143, 144, 145 and 147]. Order in Council 486/2010, approved and ordered June 29, 2010.

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that,

(

a) effective July 1, 2010, paragraph (

b) of B.C. Reg. 45/2005 is repealed,

(

b) effective July 1, 2010,

section 5 (

a) of the

Schedule to B.C. Reg. 45/2005 is repealed,

(

c) effective May 1, 2010, the Social Service Tax Act Regulations, B.C. Reg. 84/58, are amended as set out in the attached

Schedule 1, and

(

d) effective July 1, 2010, the Social Service Tax Act Regulations, B.C. Reg. 84/58, are amended as set out in the attached

Schedule 2.

— C. HANSEN, Minister of Finance and Deputy Premier ; B. BENNETT, Presiding Member of the Executive Council .

Schedule 1

1 Division 21 of the Social Service Tax Act Regulations, B.C. Reg. 84/58, is amended by adding the following section:

Delivery

21.1.1 For the purposes of sections 5.1, 10.1, 15.1 and 68.22 of the Act, tangible personal property is deemed, unless there is evidence to the contrary, to have been delivered to a purchaser, a contractor or a person if the vendor delivers the tangible personal property to a carrier in accordance with the terms of the purchase.

Section 21.4 is amended

(

a) by repealing subsection (2) and substituting the following:

(2) Despite

section 5.1 (3) of the Act, tax is payable by a purchaser under

section 5 of the Act in respect of a purchase of tangible personal property that is

(

a) software delivered by electronic means, or

(

b) a designated licence that is

(

i) described in paragraph (

b) of the definition of "designated licence", and

(ii) a perpetual right to use software,

if a portion of the consideration for the software becomes due before July 1, 2010 or is paid before July 1, 2010 without having become due. ,

(

b) in subsections (5) to (8) by adding " with a right to use software for a fixed term " after " that is a designated licence ", and

(

c) in subsection (6) by striking out "

section 5.1 (3) " and substituting "

section 5.1 (5) ".

Schedule 2

Section 2 of the Social Service Tax Act Regulations, B.C. Reg. 84/58, is amended

(

a) in subsection (1) by striking out " 2.24, ", and

(

b) in subsection (2) by striking out " 4.3, 4.4, 4.5, ".

2 Sections 2.19, 2.24, 2.51, 2.54, 3.12 (3), 3.26 (7) and 3.29 are repealed.

3 Sections 3.36 (2) and 3.37 (1) are amended by striking out " and 112.3 ".

4 Sections 4.1 to 4.6 and 4.8 are repealed.

Section 5.4 is amended

(

a) by renumbering the

section as

section 5.4 (1), and

(

b) by adding the following subsection:

(2) Subsection (1) does not apply in relation to a reporting period that begins on or after July 1,

Section 5.8 (1) is amended by striking out " November 2008, " and substituting " November 2008 and for returns in respect of reporting periods that begin before January 1, 2011, ".

Section 5.11 is amended by adding the following subsection:

(1.01) Subsection (1) (

a) to (

c) does not apply to

(

a) sales, leases or non-taxable sales of tangible personal property, or

(

b) tangible personal property purchased, taken or supplied

on or after July 1,

Section 5.19 is amended by adding the following subsection:

(5) For the purposes of

section 90 (5) (

c) of the Act in relation to an amount recovered, the prescribed time for the payment of an amount in respect of the amount recovered is the date that is 23 days after the last day of the month in which the amount is recovered.

Section 7 is amended by striking out " 4.1 to 4.6 ".

10 Sections 9.2, 9.5 and 9.6 are repealed.

Section 9.7 is amended by striking out " 31, " and " or 33 ".

Section 15.1 (1) is amended by striking out " and 112.3 ".

13 Sections 19.1 and 19.3 are repealed.

14 The following sections are added:

When tax is payable

19.4 For the purposes of

section 93.1 (7) of the Act, a person who makes a purchase or enters into a lease that is subject to an agreement referred to in

section 93.1 of the Act must pay the tax imposed by the Act in relation to the purchase or lease on the earliest of

(a) 23 days after the last day of the month in which the tangible personal property is used,

(

b) if the tangible personal property is not used before or in the month that is 12 months from the date of purchase or lease, 23 days after the last day of that month, and

(

c) if the tangible personal property is not used on or before December 31, 2010, January 24, 2011.

Refund of tax paid

19.5

(1) For the purposes of

section 90.5 (

b) of the Act, the commissioner must provide to a person a refund of tax in respect of a purchase or lease if the commissioner is satisfied that

(

a) the person paid the tax at the time referred to in

section 19.4 (

c) of this regulation, and

(

b) on or after January 1, 2011 and before July 1, 2014, the person uses the tangible personal property

(

i) for a use that would have been exempt from tax if that use had occurred on or before December 31, 2010, and

(ii) for no use other than storage before the use referred to in subparagraph (i).

(2) A refund must not be made under subsection (1) on a claim that is made after June 30, 2014.

15 Division 20 is repealed.

16 Division 21 is amended by adding the following sections

Prescribed time — tax on tangible personal property

to be used to improve real property

21.5 For the purposes of

section 68.21 (3) of the Act, the prescribed time for the payment of the tax under that

section is January 24, 2011.

Assessments and penalties — prescribed refunds

21.6 For the purposes of

section 115 (2.1) and (5.01) of the Act, the refunds under the following sections are prescribed:

(

a) section 22.2 [commercial activities refund] ;

(

b) section 22.3 [transitional refund] ;

(

c) section 22.4 [software] ;

(

d) section 22.6 [refund in relation to inventory] ;

(

e) section 22.7 [progress payments] ;

(

f) section 23.3 [budget payment arrangements] .

When tax is payable

21.7

(1) For the purposes of

section 140 of the Act, the time at which tax is payable under the Act is as follows:

(

a) in respect of more tax required to be paid when tax calculated under

section 13 (2) to (6) of the Act is adjusted under

section 13 (8) of the Act, within 23 days after the date the tax is adjusted;

(

b) in respect of tax imposed under Division 6 of

Part 2 of the Act on legal services provided under a contingent fee agreement, as defined in

section 64 of the Legal Profession Act , that is entered into before July 1, 2010 if the event triggering payment for the legal services under the agreement has not occurred on or before December 31, 2010,

(

i) subject to subparagraph (ii), by the date on which the purchase price of the legal services is paid or payable, whichever is earlier, or

(ii) if the person providing the legal services is not obliged to and does not collect the tax under that Division, by the 23rd day of the month following the month in which the tax is otherwise required to be paid by subparagraph (i);

(

c) in respect of tax imposed under Division 7 of

Part 2 of the Act on the provision to a purchaser of a telecommunication service in a service area outside British Columbia if the telecommunication service in that service area is provided at least in part by another telecommunication service provider under an agreement between the vendor and that service provider, the earliest of the following:

(

i) the time that the purchase price of the telecommunication service is paid;

(ii) the time that the purchase price of the telecommunication service is payable;

(iii) June 30, 2011;

(

d) subject to paragraphs (

a) to (c), in respect of tax imposed under the Act on the purchase of tangible personal property, a taxable service, legal services or a telecommunication service, if due to extraordinary circumstances the vendor is not able to determine the purchase price of the tangible personal property, taxable service, legal services or telecommunication service before January 1, 2011 and the vendor gives notice to the commissioner of the extraordinary circumstances before January 1, 2011, the earlier of the following:

(

i) the date the vendor determines the purchase price of the tangible personal property, taxable service, legal services or telecommunication service;

(ii) the date on which the vendor ought to have reasonably been able to determine the purchase price of the tangible personal property, taxable service, legal services or telecommunication service;

(

e) in respect of tax imposed under the Act on leased property, if due to extraordinary circumstances the lessor is not able to determine the lease price of the leased property before January 1, 2011 and the lessor gives notice to the commissioner of the extraordinary circumstances before January 1, 2011, the earlier of the following:

(

i) the date the lessor determines the lease price of the leased property;

(ii) the date on which the lessor ought to have reasonably been able to determine the lease price of the leased property;

(

f) despite paragraph (c), in respect of tax imposed under the Act on tangible personal property, leased property, a taxable service, legal services or a telecommunication service to which

section 23.3 [budget payment arrangements] applies, the date that the vendor or lessor issues the invoice for the reconciliation of the payments under the budget payment arrangement.

(2) For the purposes of

section 140 of the Act, an amount to be remitted under

section 25 (3) of the Act must be remitted on or before the date that is 23 days after the last day of the month in which the lessor receives the amount referred to in that section.

(3) Tax imposed under the Act for which the time at which the tax is payable is provided for under subsection (1) must be collected at the time at which the tax is payable.

(4) If a vendor is providing legal services under a contingent fee agreement referred to in subsection (1) (b), the vendor must report to the commissioner, on or before February 1, 2011, the number of contingent fee agreements under which the vendor is providing legal services and for which the event triggering payment for the legal services under the agreement has not occurred on or before December 31, 2010.

17 The following Divisions are added:

Division 22 — Refunds

Definitions and

interpretation

22.1

(1) In this Division:

"commercial activity" has the same meaning as in

Part IX [Goods and Services Tax] of the federal Act;

"consumer" has the same meaning as in

Part IX of the federal Act;

"designated software" means a fixed term licence, perpetual licence or specified licence, as those terms are defined in

section 22.4;

"federal Act" means the Excise Tax Act (Canada);

"federal regulation" means the New Harmonized Value-added Tax System Regulations (Canada);

"publication" means a magazine, newspaper or periodical other than a magazine, newspaper or periodical exempt from tax under

section 5 of the Act.

(2) The

definitions of "magazines", "newspapers" and "periodicals" in

section 1 (1) of the Act do not apply to the first reference to a form of those words in the definition of "publication" in subsection (1) of this section.

(3) This Division provides for refunds for the purposes of

section 90.5 (

a) of the Act.

Commercial activities refund

22.2

(1) On application made on or before December 31, 2010, the commissioner May pay to an applicant a refund of the tax paid under Division 1 [Tax in relation to Purchase and Use] of

Part 2 of the Act by the applicant in respect of tangible personal property, other than tangible personal property that is designated software or a subscription for a publication, if the commissioner is satisfied that

(

a) the applicant is registered under Subdivision d of Division V of

Part IX of the federal Act,

(

b) the tangible personal property was purchased after October 14, 2009 and before May 1, 2010,

(

c) ownership of the tangible personal property is transferred and the tangible personal property is delivered to the applicant on or after July 1, 2010, and

(

d) the tangible personal property was purchased for use exclusively in the course of a commercial activity of the applicant.

(2) Despite subsection (1), the refund payable under subsection (1) to an applicant in respect of tangible personal property described in subsection (10) is equal to the tax paid on that portion of the purchase price of the tangible personal property that is attributable to the portion of the tangible personal property that is provided on or after July 1, 2010.

(3) On application made on or before December 31, 2010, the commissioner May pay to an applicant a refund of the tax paid under Division 1 of

Part 2 of the Act by the applicant in respect of tangible personal property that is a subscription for a publication, if the commissioner is satisfied that

(

a) the applicant is registered under Subdivision d of Division V of

Part IX of the federal Act,

(

b) the subscription was purchased after October 14, 2009 and before July 1, 2010,

(

c) the first publication under the subscription is delivered to the applicant on or after July 1, 2010, and

(

d) the subscription was purchased for use exclusively in the course of a commercial activity of the applicant.

(4) On application made on or before December 31, 2010, the commissioner May pay to an applicant a refund in accordance with subsection (5) or (6) in respect of leased property, if the commissioner is satisfied that

(

a) the applicant is registered under Subdivision d of Division V of

Part IX of the federal Act,

(

b) the rental period under the lease

(

i) began after October 14, 2009 and before July 1, 2010 and ends on or after July 31, 2010, or

(ii) begins on or after July 1, 2010,

(

c) all or a portion of the lease price of the leased property for the rental period described in paragraph (b)

(

i) became due, or

(ii) was paid without having become due

after October 14, 2009 and before May 1, 2010, and

(

d) the leased property was leased for use exclusively in the course of a commercial activity of the applicant.

(5) The refund payable under subsection (4) to an applicant in respect of leased property is equal to the amount of tax paid under Division 2 [Tax in relation to Leases] of

Part 2 of the Act by the applicant on the amount of the lease price that is described in subsection (4) (c).

(6) Despite subsection (5), the refund payable under subsection (4) to an applicant in respect of leased property referred to in subsection (4) (b) (

i) is equal to the tax paid on the amount of the lease price of the leased property that

(

a) is described in subsection (4) (c), and

(

b) is attributable to the portion of the rental period that is on or after July 1, 2010.

(7) Despite subsection (4), a refund is not payable under that subsection if any portion of the lease price of the leased property for the rental period became due or was paid without having become due before October 15, 2009.

(8) On application made on or before December 31, 2010, the commissioner May pay to an applicant a refund of the tax paid under the Act by the applicant on the purchase of a taxable service, legal services or a telecommunication service, if the commissioner is satisfied that

(

a) the applicant is registered under Subdivision d of Division V of

Part IX of the federal Act,

(

b) the service was purchased after October 14, 2009 and before May 1, 2010,

(

c) the service

(

i) is provided on or after July 1, 2010, or

(ii) is partially provided on or after July 1, 2010 but is not substantially provided before July 1, 2010, and

(

d) the service was purchased for use exclusively in the course of a commercial activity of the applicant.

(9) Despite subsection (8), the refund payable under subsection (8) to an applicant in respect of a taxable service, legal services or a telecommunication service referred to in subsection (8) (c) (ii) is equal to the tax paid on that portion of the purchase price of the taxable service, legal services or a telecommunication service that is attributable to the portion of the service that is provided on or after July 1, 2010.

(10) Subsection (11) applies if

(

a) a purchaser purchases tangible personal property or a telecommunication service provided on a continuous basis by means of a wire, pipeline or similar conduit or satellite or other telecommunication facility,

(

b) a purchaser is invoiced on a regular or periodic basis, and

(

c) in relation to an invoice period that began before July 1, 2010 and ends on or after July 1, 2010, it cannot reasonably be determined what portion of the tangible personal property was delivered to the purchaser or what portion of the telecommunication service was provided to the purchaser before July 1, 2010.

(11) In the circumstances in which this subsection applies, for the purposes of determining the amount of the refund referred to in subsection (2) or (9), the portion of the tangible personal property delivered, or the telecommunication service provided, on or after July 1, 2010 is deemed to be the portion equal to that proportion of the tangible personal property delivered, or the telecommunication service provided, that the number of days on or after July 1, 2010 that are in the invoice period bears to the total number of days in the invoice period.

(12) A person who receives a refund under this

section in respect of tangible personal property, leased property, a taxable service, legal services or a telecommunication service and subsequently receives a refund under

section 23.1, 23.2 or 23.3 in respect of that tangible personal property, leased property, taxable service, legal services or telecommunication service must pay to the government, by the 23rd day of the month following the month in which the person received that subsequent refund, the amount of that subsequent refund.

Transitional refund

22.3

(1) On application made on or before December 31, 2010, the commissioner May pay to an applicant a refund of the tax paid under Division 1 [Tax in relation to Purchase and Use] of

Part 2 of the Act by the applicant in respect of tangible personal property, other than tangible personal property that is designated software or a subscription for a publication, if the commissioner is satisfied that

(

a) the tangible personal property was purchased after October 14, 2009 and before May 1, 2010,

(

b) ownership of the tangible personal property is transferred and the tangible personal property is delivered to the applicant on or after July 1, 2010,

(

c) the applicant is not a consumer, and

(

d) the applicant must pay tax in respect of the tangible personal property under

section 165 (2) or 218.1 (1) of the federal Act by reason of

section 41 of the federal regulation.

(2) Despite subsection (1), the refund payable under subsection (1) to an applicant in respect of tangible personal property described in subsection (10) is equal to the tax paid on that portion of the purchase price of the tangible personal property that is attributable to the portion of the tangible personal property that is delivered on or after July 1, 2010.

(3) On application made on or before December 31, 2010, the commissioner May pay to an applicant a refund of the tax paid under Division 1 of

Part 2 of the Act by the applicant in respect of tangible personal property that is a subscription for a publication, if the commissioner is satisfied that

(

a) the subscription was purchased after October 14, 2009 and before May 1, 2010,

(

b) the first publication under the subscription is delivered to the applicant on or after July 1, 2010,

(

c) the applicant is not a consumer, and

(

d) the applicant must pay tax in respect of the subscription under

section 165 (2) or 218.1 (1) of the federal Act by reason of

section 41 of the federal regulation.

(4) On application made on or before December 31, 2010, the commissioner May pay to an applicant a refund in accordance with subsection (5) or (6) in respect of leased property, if the commissioner is satisfied that

(

a) the rental period under the lease

(

i) began after October 14, 2009 and before July 1, 2010 and ends on or after July 31, 2010, or

(ii) begins on or after July 1, 2010,

(

b) all or a portion of the lease price of the leased property for the rental period described in paragraph (a)

(

i) became due, or

(ii) was paid without having become due

after October 14, 2009 and before May 1, 2010,

(

c) the applicant is not a consumer, and

(

d) the applicant must pay tax in respect of the leased property under

section 165 (2), 218.1 (1) or 220.08 (1) of the federal Act by reason of

section 42 of the federal regulation.

(5) The refund payable under subsection (4) to an applicant in respect of leased property is equal to the amount of tax paid under Division 2 [Tax in relation to Leases] of

Part 2 of the Act by the applicant on the amount of the lease price that is described in subsection (4) (b).

(6) Despite subsection (5), the refund payable under subsection (4) to an applicant in respect of leased property referred to in subsection (4) (a) (

i) is equal to the tax paid on the amount of the lease price of the leased property that

(

a) is described in subsection (4) (b), and

(

b) is attributable to the portion of the rental period that is on or after July 1, 2010.

(7) Despite subsection (4), a refund is not payable under that subsection if any portion of the lease price of the leased property for the rental period became due or was paid without having become due before October 15, 2009.

(8) On application made on or before December 31, 2010, the commissioner May pay to an applicant a refund of the tax paid under the Act on the purchase of a taxable service, legal services or a telecommunication service by the applicant if the commissioner is satisfied that

(

a) the service was purchased after October 14, 2009 and before May 1, 2010,

(

b) the service

(

i) is provided on or after July 1, 2010, or

(ii) is partially provided on or after July 1, 2010 but is not substantially provided before July 1, 2010,

(

c) the applicant is not a consumer, and

(

d) the applicant must pay tax on the purchase of the service under

section 165 (2), 218.1 (1) or 220.08 (1) of the federal Act by reason of

section 43 of the federal regulation.

(9) Despite subsection (8), the refund payable under subsection (8) to an applicant in respect of a taxable service, legal services or a telecommunication service referred to in subsection (8) (b) (ii) is equal to the tax paid on that portion of the purchase price of the taxable service, legal services or a telecommunication service that is attributable to the portion of the service that is provided on or after July 1, 2010.

(10) Subsection (11) applies if

(

a) a purchaser purchases tangible personal property or a telecommunication service provided on a continuous basis by means of a wire, pipeline or similar conduit or satellite or other telecommunication facility,

(

b) a purchaser is invoiced on a regular or periodic basis, and

(

c) in relation to an invoice period that began before July 1, 2010 and ends on or after July 1, 2010, the vendor cannot reasonably determine what portion of the tangible personal property was delivered to the purchaser or what portion of the telecommunication service was provided to the purchaser before July 1, 2010.

(11) In the circumstances in which this subsection applies, for the purposes of determining the amount of the refund referred to in subsection (2) or (9), the portion of the tangible personal property delivered, or the telecommunication service provided, on or after July 1, 2010 is deemed to be the portion equal to that proportion of the tangible personal property delivered, or the telecommunication service provided, that the number of days on or after July 1, 2010 that are in the invoice period bears to the total number of days in the invoice period.

(12) A person who receives a refund under this

section in respect of tangible personal property, leased property, a taxable service, legal services or a telecommunication service and subsequently receives a refund under

section 23.1, 23.2 or 23.3 in respect of that tangible personal property, leased property, taxable service, legal services or telecommunication service must pay to the government, by the 23rd day of the month following the month in which the person received that subsequent refund, the amount of that subsequent refund.

Software

22.4

(1) In this section:

"fixed term licence" means

(

a) software that is delivered by electronic means if the right to use the software is for a fixed term, or

(

b) a software licence with a right to use, for a fixed term, a software program if

(

i) the software licence is purchased separately from the software program, and

(ii) the software program is delivered other than by electronic means,

but does not include a specified licence;

"perpetual licence" means

(

a) software that is delivered by electronic means if there is a perpetual right to use the software, or

(

b) a software licence with a perpetual right to use a software program if

(

i) the software licence is purchased separately from the software program, and

(ii) the software program is delivered other than by electronic means;

"software licence" means software that is a right to use a packaged or prewritten software program;

"software program" means software that is a packaged or prewritten software program;

"specified licence" means software that is delivered by electronic means if

(

a) the right to use the software is for a fixed term, and

(

b) the purchase price of the software does not vary with the amount of use of the software.

(2) On application made on or before December 31, 2010, the commissioner May pay to an applicant a refund of the tax paid under Division 1 [Tax in relation to Purchase and Use] of

Part 2 of the Act by the applicant in respect of tangible personal property that is designated software, if the commissioner is satisfied that

(

a) the applicant is registered under Subdivision d of Division V of

Part IX of the federal Act,

(

b) the designated software was purchased for use exclusively in the course of a commercial activity of the applicant,

(

c) in relation to a fixed term licence,

(

i) all or a portion of the purchase price of the licence for the period of use described in subparagraph (ii)

(

A) became due, or

(

B) was paid without having become due

after October 14, 2009 and before May 1, 2010, and

(ii) the period of use under the licence

(

A) begins on or after July 1, 2010, or

(

B) began before July 1, 2010 and ends on or after July 31, 2010,

(

d) in relation to a perpetual licence,

(

i) the licence was purchased after October 14, 2009 and before July 1, 2010, and

(ii) ownership of the licence is transferred and the licence is delivered to the applicant on or after July 1, 2010, and

(

e) in relation to a specified licence, the licence was purchased after October 14, 2009 and before July 1, 2010 and

(

i) ownership of the licence is transferred and the licence is delivered to the applicant on or after July 1, 2010, or

(ii) ownership of the licence was transferred or the licence was delivered to the applicant before July 1, 2010.

(3) Despite subsection (2), the refund payable under subsection (2) to an applicant in respect of tangible personal property that is a fixed term licence is equal to the amount of tax paid under Division 1 of

Part 2 of the Act by the applicant on the amount of the purchase price described in subsection (2) (c) (i).

(4) Despite subsections (2) and (3), the refund payable under subsection (2) to an applicant in respect of tangible personal property that is a fixed term licence referred to in subsection (2) (c) (ii) (

B) is equal to the tax paid under Division 1 of

Part 2 of the Act by the applicant on the amount of the purchase price that

(

a) is described in subsection (2) (c) (i), and

(

b) is attributable to the period of use that occurs on or after July 1, 2010.

(5) Despite subsection (2), the refund payable under subsection (2) to an applicant in respect of tangible personal property that is a specified licence referred to in subsection (2) (e) (ii) is equal to the tax paid on the portion of the purchase price that is attributable to the period of use that occurs on or after July 1, 2010.

(6) On application made on or before December 31, 2010, the commissioner May pay to an applicant a refund in accordance with subsection (7) or (8) in respect of a purchase by the applicant of tangible personal property that is a fixed term licence, if the commissioner is satisfied that

(

a) all or a portion of the purchase price of the fixed term licence for the period of use described in paragraph (b)

(

i) became due, or

(ii) was paid without having become due

after October 14, 2009 and before May 1, 2010,

(

b) the period of use under the fixed term licence

(

i) begins on or after July 1, 2010, or

(ii) began before July 1, 2010 and ends on or after July 31, 2010,

(

c) the applicant is not a consumer, and

(

d) the applicant must pay tax in respect of the fixed term licence under

section 165 (2) or 218.1 (1) of the federal Act by reason of

section 42 of the federal regulation.

(7) The refund payable under subsection (6) to an applicant in respect of a purchase of tangible personal property that is a fixed term licence is equal to the amount of tax paid under Division 1 of

Part 2 of the Act by the applicant on the amount of the purchase price described in subsection (6) (a).

(8) Despite subsection (7), the refund payable under subsection (6) to an applicant in respect of a purchase of tangible personal property that is a fixed term licence referred to in subsection (6) (b) (ii) is equal to the tax paid under Division 1 of

Part 2 of the Act by the applicant on the amount of the purchase price that

(

a) is described in subsection (6) (a), and

(

b) is attributable to the period of use that occurs on or after July 1, 2010.

(9) Despite subsections (2) and (6), a refund is not payable under those subsections in respect of a fixed term licence if any portion of the purchase price of the licence for the period of use became due or was paid without having become due before October 15, 2009.

(10) A person who receives a refund under this

section in respect of tangible personal property and subsequently receives a refund under

section 23.2 or 23.3 in respect of that tangible personal property must pay to the government, by the 23rd day of the month following the month in which the person received that subsequent refund, the amount of that subsequent refund.

Refund in relation to liquor sold under

special occasion licence

22.5

(1) On application made on or before December 31, 2010, the commissioner May pay to an applicant a refund of the amount paid under

section 7 of the Act by the applicant in respect of liquor acquired for sale under a special occasion licence, if the commissioner is satisfied that

(

a) the applicant is registered under Subdivision d of Division V of

Part IX of the federal Act,

(

b) either

(

i) the applicant was issued the special occasion licence before May 1, 2010, or

(ii) the special occasion licence was in effect for a period that began before July 1, 2010 and ended on or after July 1, 2010,

(

c) the applicant sold some or all of the liquor on or after July 1, 2010, and

(

d) the sale of the liquor was subject to tax imposed under

section 165 (2) of the federal Act.

(2) Despite subsection (1), if some of the liquor is sold before July 1, 2010, the refund payable under subsection (1) to an applicant in respect of the liquor is equal to the amount paid under

section 7 of the Act that is attributable to the portion of the liquor that is sold on or after July 1, 2010.

Refund in relation to inventory

22.6

(1) In this section,

"capital property" has the same meaning as in the Income Tax Act (Canada);

"construction material" , in relation to construction material held by a contractor, does not include property that is capital property of the contractor;

"residential complex" has the same meaning as in

Part IX of the federal Act;

"substantial renovation" has the same meaning as in

Part IX of the federal Act.

(2) Subject to subsection (3), on application made on or before March 1, 2011, the commissioner May pay to an applicant a refund of the tax paid under the Act in respect of tangible personal property that is construction material if the commissioner is satisfied that

(

a) the applicant is a contractor who paid tax under the Act in respect of the construction material,

(

b) the construction material is held in the contractor's inventory at the end of the day on June 30, 2010,

(

c) on or after July 1, 2010 and on or before December 31, 2010, the contractor incorporates the construction material into a residential complex in the course of fulfilling a contract to repair or improve the residential complex but not in the course of fulfilling a contract

(

i) relating to a substantial renovation of a residential complex, or

(ii) relating to the construction of a new residential complex, and

(

d) tax is payable under

section 165 (2) of the federal Act in respect of the supply under the contract to repair or improve the residential complex.

(3) If the residential complex is part of a multi-use building, the refund is limited to be in respect of that portion of the construction material that the commissioner considers to have been reasonably used to repair or improve the residential complex.

Progress payments

22.7

(1) In this section, "consideration" has the same meaning as in

section 4.8 of the Act.

(2) Sections 4.81 and 4.83 of the Act apply for the purposes of this

section as if this

section were included within the meaning of "application sections" in

section 4.8 of the Act.

(3) On application made on or before December 31, 2010, the commissioner May pay to an applicant a refund in accordance with subsection (4) of tax paid under Division 1 of

Part 2 of the Act by the applicant in respect of tangible personal property, if the commissioner is satisfied that

(

a) the tangible personal property was provided under an agreement for the construction, renovation, alteration or repair of a ship or other vessel,

(

b) after October 14, 2009 and before July 1, 2010, all or a portion of the consideration attributable to the tangible personal property

(

i) became due, or

(ii) was paid without having become due

as a progress payment that was required under the agreement, or as a holdback from a progress payment under the agreement,

(

c) on or after July 1, 2010, ownership of the tangible personal property is transferred and the tangible personal property is delivered to the applicant, and

(

d) the applicant must pay tax in respect of the supply of the tangible personal property under

section 165 (2) of the federal Act by reason of

section 51 of the federal regulation.

(4) The refund payable under subsection (3) to an applicant in respect of tangible personal property is the amount of tax paid under Division 1 of

Part 2 of the Act on that portion of the purchase price of the tangible personal property equal to the amount of the consideration that

(

a) is described in subsection (3) (b), and

(

b) is attributable to the portion of the tangible personal property that is delivered on or after July 1, 2010.

(5) On application made on or before December 31, 2010, the commissioner May pay to an applicant a refund in accordance with subsection (6) of tax paid under Division 2 of

Part 2 of the Act by the applicant in respect of leased property if the commissioner is satisfied that

(

a) the leased property was provided under an agreement for the construction, renovation, alteration or repair of a ship or other vessel,

(

b) after October 14, 2009 and before July 1, 2010, all or a portion of the consideration attributable to the leased property

(

i) became due, or

(ii) was paid without having become due

as a progress payment that was required under the agreement, or as a holdback from a progress payment under the agreement,

(

c) the rental period under the lease began before July 1, 2010 and ends on or after July 1, 2010, and

(

d) the applicant must pay tax in respect of the leased property under

section 165 (2) of the federal Act by reason of

section 51 of the federal regulation.

(6) The refund payable under subsection (5) to an applicant in respect of leased property is the amount of tax paid under Division 2 of

Part 2 of the Act by the applicant on that portion of the lease price equal to the amount of the consideration that

(

a) is described in subsection (5) (b), and

(

b) is attributable to the portion of the rental period that occurs on or after July 1, 2010.

(7) On application made on or before December 31, 2010, the commissioner May pay to an applicant a refund in accordance with subsection (8) of tax paid under

section 36, 37 or 40 of the Act in respect of a service if the commissioner is satisfied that

(

a) the service was provided under an agreement for the construction, renovation, alteration or repair of a ship or other vessel,

(

b) after October 14, 2009 and before July 1, 2010, all or a portion of the consideration attributable to the service

(

i) became due, or

(ii) was paid without having become due

as a progress payment that was required under the agreement, or as a holdback from a progress payment under the agreement,

(

c) the service was provided or partially provided on or after July 1, 2010, and

(

d) the applicant must pay tax in respect of the service under

section 165 (2) of the federal Act by reason of

section 51 of the federal regulation.

(8) The refund payable under subsection (7) to an applicant in respect of the service is the amount of tax paid under

section 36, 37 or 40 of the Act by the applicant on that portion of the purchase price of the service equal to the amount of the consideration that

(

a) is described in subsection (7) (b), and

(

b) is attributable to the portion of the service that was provided on or after July 1, 2010.

Division 23 — Refunds from Vendors

Cancellation of services

23.1

(1) If, after June 30, 2010 but before January 1, 2011,

(

a) a purchaser or recipient of a taxable service, legal services or a telecommunication service cancels the service, and

(

b) as a result of the cancellation, the vendor pays a refund to the purchaser or recipient,

the vendor must refund to the purchaser or recipient the amount of tax paid under this Act that is attributable to the amount of the refund.

(2) Despite subsection (1), a vendor must not refund an amount under this

section after December 31, 2010.

Price reductions

23.2

(1) If, after June 30, 2010 but before January 1, 2011,

(

a) the purchase price of tangible personal property, a taxable service, legal services or a telecommunication service is reduced after tax imposed under the Act is payable, and

(

b) the vendor pays a refund to the purchaser equal to the amount of the reduction in the purchase price referred to in paragraph (a),

the vendor must refund to the purchaser the amount of tax paid under the Act that is attributable to the amount of the refund.

(2) If, after June 30, 2010 but before January 1, 2011,

(

a) the lease price of leased property is reduced after tax imposed under the Act is payable, and

(

b) the lessor pays a refund to the lessee equal to the amount of the reduction in the lease price referred to in paragraph (a),

the lessor must refund to the lessee the amount of tax paid under the Act that is attributable to the amount of the refund.

(3) Despite subsections (1) and (2), a vendor must not refund an amount under this

section after December 31, 2010.

Budget payment arrangements

23.3

(1) In this section, "consideration" has the same meaning as in

section 4.8 of the Act.

(2) Sections 4.81 and 4.83 of the Act apply for the purposes of this

section as if this

section were included within the meaning of "application sections" in

section 4.8 of the Act.

(3) Subject to subsection (4), subsection (5) applies in relation to a purchase of tangible personal property if

(

a) tangible personal property is delivered to the purchaser over a period that began before July 1, 2010 and ends on or after July 1, 2010, and

(

b) the consideration for the tangible personal property is paid under a budget payment arrangement with a reconciliation of the payments to take place at or after the end of the period and before July 1, 2011.

(4) Subsection (5) does not apply in relation to a purchase of tangible personal property that is a subscription for a publication, as defined in

section 5.1 (2) of the Act.

(5) In the circumstances in which this subsection applies, a vendor, at the time the vendor issues an invoice for the reconciliation of the payments under the budget payment arrangement, must refund to the purchaser the amount, if any, by which the amount paid as tax under the Act on the consideration for the tangible personal property exceeds the tax payable under the Act on the consideration for the tangible personal property that is attributable to the portion of the tangible personal property that was delivered to the purchaser before July 1, 2010 as determined by the reconciliation of the payments.

(6) Subsection (7) applies in relation to leased property if

(

a) the term of the lease began before July 1, 2010 and ends on or after July1, 2010, and

(

b) the consideration for the leased property is paid under a budget payment arrangement with a reconciliation of the payments to take place at or after the end of the term of the lease and before July 1, 2011.

(7) In the circumstances in which this subsection applies, a lessor, at the time the lessor issues an invoice for the reconciliation of the payments under the budget payment arrangement, must refund to the lessee the amount, if any, by which the amount paid as tax under the Act on the consideration for the leased property exceeds the tax payable under the Act on the consideration for the leased property that is attributable to the portion of the term of the lease that was before July 1, 2010 as determined by the reconciliation of the payments.

(8) Subsection (9) applies in relation to a purchase of a taxable service, legal services or a telecommunication service if

(

a) the taxable service, legal services or telecommunication service is provided over a period that began before July 1, 2010 and ends on or after July 1, 2010, and

(

b) the consideration for the taxable service, legal services or telecommunication service is paid under a budget payment arrangement with a reconciliation of the payments to take place at or after the end of the period and before July 1, 2011.

(9) In the circumstances in which this subsection applies, a vendor, at the time the vendor issues an invoice for the reconciliation of the payments under the budget payment arrangement, must refund to the purchaser the amount, if any, by which the amount paid as tax under the Act on the consideration for the taxable service, legal services or telecommunication service exceeds the tax payable under the Act on the consideration for the taxable service, legal services or telecommunication service that is attributable to the portion of the taxable service, legal services or telecommunication service that was provided to the purchaser before July 1, 2010 as determined by the reconciliation of the payments.

(10) Subsection (11) applies if a vendor

(

a) provides tangible personal property or a telecommunication service to a purchaser on a continuous basis by means of a wire, pipeline or similar conduit or satellite or other telecommunication facility, and

(

b) in relation to a period under the budget payment arrangement that began before July 1, 2010 and ends on or after July 1, 2010, cannot reasonably determine what portion of the tangible personal property was delivered to the purchaser or what portion of the telecommunication service was provided to the purchaser before July 1, 2010.

(11) In the circumstances in which this subsection applies, for the purposes of determining the amount of a refund under subsection (5) or (9), the portion of the tangible personal property delivered, or the telecommunication service provided, before July 1, 2010 is deemed to be the portion equal to that proportion of the tangible personal property delivered, or the telecommunication service provided, that the number of days before July 1, 2010 that are in the period referred to in subsection (10) (

b) bears to the total number of days in that period.

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