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FEDERAL BUDGET 2007 - Passede Sept 07
Exports of Intangible Personal Property
11. (1) Part V of Schedule VI to the Act is amended by adding the following after section 10:
10.1 A supply of intangible personal property made to a non-resident person who is not registered under Subdivision d of Division V of Part IX of the Act at the time the supply is made, but not including
(a) a supply made to an individual unless the individual is outside Canada at that time;
(b) a supply of intangible personal property that relates to
(i) real property situated in Canada,
(ii) tangible personal property ordinarily situated in Canada, or
(iii) a service the supply of which is made in Canada and is not a zero-rated supply described by any section of this Part or Part VII or IX;
(c) a supply that is the making available of a telecommunications facility that is intangible personal property for use in providing a service described in paragraph (a) of the definition "telecommunication service" in subsection 123(1) of the Act;
(d) a supply of intangible personal property that may only be used in Canada; or
(e) a prescribed supply.
(2) Subsection (1) is deemed to have come into force on December 17, 1990 except that
(a) section 10.1 of Part V of Schedule VI to the Act, as enacted by subsection (1), does not apply to any supply in respect of which the supplier, before March 20, 2007, charged or collected any amount as or on account of tax under Part IX of the Act; and
(b) for the purposes of section 10.1 of Part V of Schedule VI to the Act, as enacted by subsection (1), the definitions "telecommunication service" and "telecommunications facility" in subsection 123(1) of the Act are deemed to have come into force on December 17, 1990.
(3) If an amount was taken into account in assessing the net tax of a person under section 296 of the Act for a reporting period of the person as tax that became collectible by the person in respect of a supply made by the person before March 20, 2007 and, by reason of the application of section 10.1 of Part V of Schedule VI to the Act, as enacted by subsection (1), no tax was collectible by the person in respect of the supply,
(a) the person shall be entitled until the day that is two years after the day on which the Act enacting this section receives royal assent to request in writing that the Minister of National Revenue make an assessment, reassessment or additional assessment for the purpose of taking into account that no tax was collectible by the person in respect of the supply; and
(b) on receipt of a request under paragraph (a), the Minister shall with all due dispatch
(i) consider the request, and
(ii) under section 296 of the Act and despite section 298 of the Act, assess, reassess or make an additional assessment of the net tax of the person for any reporting period of the person and of any interest, penalty or other obligation of the person, but only to the extent that the assessment, reassessment or additional assessment may reasonably be regarded as relating to the supply.
12. The provisions of Division IV of Part IX of the Act relating to intangible personal property will be modified in accordance with proposals described in the Budget documents tabled by the Minister of Finance in the House of Commons on March 19, 2007.
As per item 12, altough this budget was passed, how they will enforce it is still not been worked out. Better save then sorry and keep your records.
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