New Harmonized Value-added Tax System Regulations — 58.63
Definitions 58.63 (1) The following definitions apply in this section. initial supply of property by a person means (a) if any supply by way of sale of the property was made by the person after February 24, 2022 but before 2023, the last supply by way of sale of the property made by the person before 2023; and (b) in any other case, the first supply by way of sale of the property made by the person after 2022. ( fourniture initiale ) rebate entitlement means the amount of a rebate that a person is entitled to claim under section 259 of the Act in respect of an acquisition of property or that the person would have been so entitled to claim if the property had been acquired for use exclusively in activities that are not commercial activities. ( remboursement admissible ) specified portion of the basic tax content , at any time, of property of a person means the amount that would be the basic tax content of the property at that time if only amounts of tax under subsection 165(2), sections 212.1 and 218.1 and Division IV.1 of Part IX of the Act were included in determining that basic tax content. ( fraction déterminée de teneur en taxe ) specified tax means an amount of tax payable under subsection 165(2), section 212.1 or 218.1 or Division IV.1 of Part IX of the Act. ( taxe déterminée ) Limitation — Prince Edward Island (2) For the purposes of determining the rebate entitlement of a person for a claim period , as defined in subsection 259(1) of the Act, of the person that ends after 2022 in respect of all amounts of specified tax that are payable in respect of an acquisition of property by the person after the person last made a supply of the property by way of sale and that are included in the provincial qualifying amount , as defined in section 2 of the Public Service Body Rebate (GST/HST) Regulations , in respect of the property for the claim period of the person, or would have been so included if the property had been acquired for use exclusively in activities that are not commercial activities, that rebate entitlement (in this section referred to as the “specified rebate entitlement”) is to be adjusted, as applicable, in accordance with the rules set out in subsection (3) if (a) the property is property of the person at any time before 2023; (b) the person makes a particular taxable supply by way of sale of the property after February 24, 2022; (c) the person is the recipient of another taxable supply of the property (in this section referred to as the “reacquisition”) after the time at which the particular taxable supply was made and an amount of specified tax in respect of the reacquisition becomes payable, or is paid without having become payable, on a particular day that is after 2022; (d) on the last day of the claim period of the person that includes the particular day, or on the last day of the person’s fiscal year that includes that claim period, the person is a charity , as defined in subsection 259(1) of the Act, or a qualifying non-profit organization within the meaning of subsection 259(2) of the Act; and (e) the particular taxable supply and the reacquisition of the property are part of a transaction or series of transactions that may not reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to, directly or indirectly, benefit in any manner from a change made to the specified provincial percentage , as defined in subsection 259(1) of the Act, applicable to the person in relation to Prince Edward Island as a result of the Regulations Amending Various GST/HST Regulations, No. 12 being made. Amount of reduction (3) For the purposes of subsection (2), the adjustment rules are the following: (a) if the reacquisition is a supply by way of sale, the specified rebate entitlement is reduced by the amount determined by the formula A − B where A is the specified portion of the basic tax content of the property at the time at which the initial supply of the property was mad