- Updated to: February 26,
2009 -
(Includes
Amendments Assented to December 3, 2008)
(Click
HERE for Previous Version of this
Act)
CHAPTER R-14
REVENUE TAX
ACT
|
Definitions
|
1. In this Act |
Commissioner
|
|
(a) "Commissioner" means the Provincial Tax Commissioner provided for by
the
Revenue Administration Act
R.S.P.E.I. 1988, Cap. R-13.2;
|
consumer
|
|
(b) "consumer" means a person who
|
|
|
|
(i) utilizes or intends to utilize within the province goods for his
or her own consumption,
or for the consumption of another person at his or her expense,
2003,c.19.s.1 |
|
|
|
(ii) utilizes or intends to utilize within the province goods on behalf of or as agent for
a principal who desired or desires to so utilize the goods for consumption by the
principal or by any other person at the expense of the principal, or
2003,c.19.s.1
|
|
|
|
(iii) brings into, causes to
be brought into, or takes delivery within, the province of goods for his or
her own consumption, or for the consumption of another person at his or her
expense,
2003,c.19.s.1 |
|
|
and includes a promotional distributor to the extent that the fair value of the goods
provided by way of promotional distribution exceeds the amount of the payment specifically
made therefor by the person to whom the goods are provided;
|
consumption
|
|
(c) "consumption" includes
|
|
|
|
(i) use, |
|
|
|
(ii) the incorporation into any structure, building or fixture, of goods including those
manufactured by the consumer or further processed or otherwise improved by him, |
|
|
|
(iii) the provision
of goods by way of promotional distribution and
|
|
|
|
(iv) bringing goods into,
causing goods to be brought into, or taking delivery of goods within, the
province; 2003,c.19.s.1 |
eating establishment
|
|
(c.1) "eating establishment" means a restaurant, dining
room, dairy bar, ice cream parlour or cafeteria including any such establishment providing
take-out or counter service, lounge, coffee shop, pizzeria, lunch counter, mobile canteen,
coffee wagon, canteen, vending machine when dispensing food, snack bar, a stand or
facility from which prepared food products are dispensed at an exhibition, fair, sporting
event, theatre, cinema, grocery store, convenience store or other store where food
products are sold or on a water vessel, and includes any premises or location to which a
caterer supplies prepared food products;
|
fair value
|
|
(d) "fair value" includes
|
|
|
|
(i) the price for which the goods were purchased including
|
|
|
|
|
(A) the value in terms of
Canadian money or services rendered and things exchanged, and other
considerations accepted by the vendor or person from whom the property
passed, as the price or on account of the price of the goods purchased,
2001,c.49,s.1. |
|
|
|
|
(B) the cost of or charges for
customs duties, federal excise taxes and federal sales taxes, whether or not
such are shown separately in the vendor's books or on any invoice,
2001,c.49,s.1. |
|
|
|
|
(C) the cost of installation
where the contract under which the goods were acquired provides for the
acquisition of goods and their installation for one consideration, and
2001,c.49,s.1. |
|
|
|
|
(D) in respect of goods
purchased outside the province and brought into the province for
consumption, the cost of transportation incurred prior to the
consumption of the goods in the province,
2001,c.49,s.1.
|
|
|
|
(ii) the cost, including
the cost of material, transportation, labour, overhead, engineering,
administration, royalties and federal sales tax, of goods manufactured,
processed or otherwise improved by a vendor or other person, for his own
use or consumption, except that in the case of a mobile home, manufactured
home or modular home sold for the first time at a retail sale after July 10, 1979,
"fair value" means the taxable value of that mobile home,
manufactured home or modular home,
2001,c.49,s.1; 2003,c.19.s.1
|
|
|
|
(iii) in relation to private transfers of motor vehicles,
all terrain vehicles, snowmobiles or watercraft, excluding
transfers referred to in subclause (iv), the purchase price or the value
as set out in such trade valuation books as may be prescribed, whichever
is greater, but a taxpayer may, in accordance with the regulations,
substitute a written appraisal of the value of the motor vehicle, all
terrain vehicle, snowmobile or watercraft from such
person as may be authorized in the regulations for the prescribed trade
valuation book value, and
2001,c.49,s.1; 2003,c.19.s.1
|
|
|
|
(iv) in relation to
certain private transfers of motor vehicles, all terrain vehicles,
snowmobiles or watercraft between a person and members
of his family as prescribed by the regulations, the purchase price;
2003,c.19.s.1
|
goods
|
|
(e) "goods" includes
|
|
|
|
(i) chattels personal, other than things in action, |
|
|
|
(ii) admission charges,
telecommunication services, laundry and dry cleaning services, repair and
installation labour, accommodation charges and golf fees, each as defined in
the regulations,
2004.c.46.s.1. |
|
|
|
(iii) computer software as defined in the regulations; and |
|
|
|
(iv) legal services, accounting services, consulting services, engineering services and
architectural services, each as defined in the regulations;
2001,c.49,s.1.
|
inspector
|
|
(f) "inspector means an inspector provided for by the
Revenue
Administration Act;
|
manufactured
home |
|
(f.1.) "manufactured home"
means a structure that
|
|
|
(i) is designed and intended
for residential purposes, and |
|
|
|
(ii) is fully assembled by the
manufacturer away from the site on which it is to be permanently located;
2003,c.19.s.1 |
Minister
|
|
(g) "Minister" means the Provincial Treasurer;
|
mobile home
|
|
(h) "mobile home" means a vehicular portable structure intended for
residential purposes that
|
|
|
|
(a) is defined to be a mobile home, a multiple section mobile home or a swing out and
expandable room section mobile home for the purposes of the Z240 series of standards
prescribed by the Canadian Standards Association, and |
|
|
|
(b) complies with the requirements for a mobile home, multiple section mobile home or
swing out and expandable room section mobile home contained in that series of standards,
and bears the seal of the Canadian Standards Association attesting to such compliance;
|
modular home
|
|
(i) "modular home" means a house that is intended for residential
purposes and that is constructed by assembling manufactured modular units each of which
comprises at least one room or living area and has been manufactured to comply with the
standards set out in the National Building Code of Canada;
|
motor vehicle
|
|
(j) "motor vehicle" means a passenger car, automobile, motorcycle, truck,
bus, truck tractor, tractor trailer or similar mobile equipment designed and used for the
transportation of passengers or goods on a public highway, and a motor grader or snow
plough, but does not include a farm tractor, combine, or other similar self-propelled
agricultural implement;
|
person
|
|
(k) "person" in addition to the meaning ascribed to it by the Interpretation
Act R.S.P.E.I. 1988, Cap. I-8, includes a municipal corporation, school board
or any other board, commission, committee or authority established for public or local
purposes;
|
prepared food products
|
|
(k. 1) "prepared food products" means
|
|
|
(i) food or beverages heated for consumption,
2002,c.41,s.1. |
|
|
|
(ii) non-carbonated, non-alcoholic beverages,
when purchased with other non-liquid, prepared food products,
2002,c.41,s.1. |
|
|
|
(iii) carbonated beverages,
2002,c.41,s.1. |
|
|
|
(iv) salads, |
|
|
|
(v) sandwiches and similar products, |
|
|
|
(vi) platters of cheese, cold cuts, seafood,
baked goods, fruit or vegetables,
2002,c.41,s.1. |
|
|
|
(vii) baked goods or
products, including pastries, muffins, tarts, cookies, doughnuts, croissants, bagels
and servings of pies or
cakes, when purchased in quantities of five or fewer,
2002,c.41,s.1.
|
|
|
for consumption on or
off the premises where sold;
2002,c.41,s.1.
|
promotional distribution
|
|
(l) "promotional distribution" means the provision by
any person to others of goods that are, in the opinion of the Minister, provided for one
or more of the following purposes:
|
|
|
(i) to describe, promote or encourage the purchase, consumption or use of goods, |
|
|
|
(ii) to furnish or distribute to any person a catalogue, directory, listing or compilation
of persons, places, prices, services, commodities or places of business in respect of the
purchase, consumption or use of goods, |
|
|
|
(iii) for a purpose, function or use prescribed by the regulations to be a promotional
distribution;
|
promotional distributor
|
|
(m) "promotional distributor" means any person who provides, by way of
promotional distribution to another person, goods the fair value of which
|
|
|
|
(i) exceeds the amount of the payment specifically made therefor by the person to whom
the goods are provided, or |
|
|
|
(ii) is not specifically charged to and required to be paid by the person to whom the
goods are provided;
|
purchaser
|
|
(n) "purchaser" means a consumer who acquires goods at a retail sale
within the province;
|
regulations
|
|
(o) "regulations" means regulations made under this Act;
|
retail sale
|
|
(p) "retail sale" means a sale to a consumer for the purpose of
consumption and not for resale;
|
sale
|
|
(q) "sale" includes,
|
|
|
|
(i) exchange, barter, sale on credit, conditional sale, sale where the price is payable
by instalments, transfer of title, conditional or otherwise, and any other contract
whereby for a consideration a person delivers goods to another, |
|
|
|
(ii) a transfer of possession, conditional or otherwise, or a lease or a rental,
determined by the Commissioner to be in lieu of a transfer of title, exchange or barter,
and |
|
|
|
(iii) the provision of goods by way of promotional distribution;
|
tax
|
|
(r) "tax" means a tax or
license fee imposed pursuant to this Act, and includes all
penalties and interest that are, may be or may have been added to a tax
pursuant to this Act or the Revenue Administration Act
R.S.P.E.I. 1988, Cap. R-13.2, and all deposits made or required to be made
on account of tax liability under this Act;
.
|
taxable value
|
|
(s) "taxable value" means
|
|
|
|
(i) in the case of a mobile home, one-half of the sale price thereof that is charged to
the person acquiring the mobile home, if such price is determined by including therein all
charges for delivery of the mobile home in accordance with the terms of such sale, by
excluding therefrom the retail sale price of any furniture or appliance that is not
permanently attached to, and part of, the interior structure of the mobile home, and by
excluding therefrom any charges for the installation or connection of the mobile home on
the site to which it is delivered, or |
|
|
|
(ii) in the case of a
manufactured home or modular home, an amount equal to one-half of the sale price of such
manufactured home or modular home on the sale thereof by its manufacturer, or where the
manufacturer is the consumer of such manufactured home or modular home, one-half of the sale
price normally charged by the manufacturer on the sale thereof,
2003,c.19.s.1
|
|
|
but such taxable value applies
only with respect to the first retail sale of the mobile home, manufactured
home or modular home in the province after July 10, 1979;
2003,c.19.s.1 |
vendor
|
|
(t) "vendor" means a person who in the ordinary course of business within
the province sells goods to a purchaser, either on his own behalf or on behalf of another.
R.S.P.E.I. 1974, Cap. R-14,s.1; 1975,c.24,s.1; 1978,c.20,s.1; 1979,c.16,s.1;
1980,c.47,s.1; 1983,c.1,s.6; 1984,c.35,s.1; 1985,c.37,s.1; 1986,c.5,s.2; 1987,c.63,s.1;
1988,c.59,s.1; 1990,c.56,s.1; 1990,c.54,s.29 {eff.} July 6/91; 1991,c.35,s.1 {eff.}
May 28/85; 1991,c.18,s.22 {eff.} Nov. 4/91; 1993,c.19,s.1 {eff.}
Sept. 1/9; 2001,c.49,s.1; 2002,c.41.s.1; 2003,c.19,s.1; 2004.c.46.s.1;
2007.c.15,s.1.
|
Act does not bind
the Crown
|
2.
This Act does not bind the Crown in right of the province, as defined by the
regulations.
R.S.P.E.I. 1974, Cap. R-14,s.2; 1986,c.18,s.2; 2005,c.19,s.1.
|
Enforcement of
Act
|
3. Repealed by 1990,c.54,s.19 {eff.} July 6/91.
|
Consumer tax, amount of
|
4.
Subject to section 4.2, every consumer of goods consumed in the province
shall, at the time of taking delivery, pay to the Minister for the raising
of revenue for provincial purposes, a tax at the rate of ten per cent of the
fair value of the goods.
R.S.P.E.I. 1974, Cap. R-14,s.4; 1978,c.20,s.3; 1980,c.47,s.2; 1981,c.33,s.1;
1997(2nd),c.57,s.1.
|
Tax on private motor vehicle sale
|
4.1 In addition to the tax payable under section 4, every
purchaser shall pay to the Minister a tax at the rate of 2.5% of the fair value of an
automobile or light or heavy truck where the purchase is not a taxable supply made by a
registrant pursuant to Part IX of the Excise Tax Act (Canada)
R.S.C. 1988, Chap.
E-15. 1997,c.43,s.1 {eff.} April 9/97.
|
Federal sales tax
|
4.2 For the purposes of section 4.1, "federal sales tax"
as used in the definition of "fair value" in clause 1(d) of this Act includes
only that component of the federal sales tax that is the goods and services tax as
established pursuant to Part IX of the Excise Tax Act (Canada) R.S.C.
1988, Chap. E-15.
1998,c.101,s.1..
|
Definitions |
4.3 In this section, sections 4.4
to 4.11 and subsection 7(4.1),
|
acquisition date
|
|
(a) "acquisition date"
means,
|
|
|
|
(i) in the case of an
interjurisdictional vehicle that is purchased, the date on which the vehicle
is purchased, or
2001,c.50,s.1. |
|
|
|
(ii) in the case of an
interjurisdictional vehicle that is leased, the date on which the lessee
first becomes entitled to have access to the vehicle pursuant to the
lease agreement;
2001,c.50,s.1.
|
acquisition
year
|
|
(b) "acquisition year" means,
|
|
|
|
(i) in the case of an
interjurisdictional vehicle that is purchased, the year in which the vehicle
is purchased, or
2001,c.50,s.1. |
|
|
|
(ii) in the case of an
interjurisdictional vehicle that is leased, the year in which the lessee
first becomes entitled to have access to the vehicle pursuant to the lease
agreement;
2001,c.50,s.1.
|
active interjurisdictional fleet
|
(c) "active
interjurisdictional fleet" means a fleet in which at least one of the
vehicles was licensed as an interjurisdictional vehicle for at least 90
days during the calculation year preceding the start of the fleet year;
2001,c.50,s.1.
|
calculation year |
(d) "calculation year"
means the period commencing on July 1 in one year and ending on June 30 in
the following year;
2001,c.50,s.1.
|
distance ratio
|
(e) "distance ratio" for
an interjurisdictional vehicle for a vehicle licence period means the
ratio calculated pursuant to section 4.4;
2001,c.50,s.1.
|
fleet
|
(f) "fleet" means one or
more interjurisdictional vehicles that are designated as a fleet by the
person licensing the vehicles;
2001,c.50,s.1.
|
fleet year
|
(g) "fleet year" means the period
|
|
|
|
(i) commencing on the first
day in the year that interjurisdictional vehicles in a fleet are licensed as
a fleet, and
2001,c.50,s.1. |
|
|
|
(ii) ending on the earlier of
|
|
|
|
|
A) the day before the anniversary of
the date mentioned in subclause (i),
2001,c.50,s.1. |
|
|
|
|
(B) in the fleet's
first fleet year, the date which is,
2001,c.50,s.1.
|
|
|
|
|
|
(I) in the case where
the person licensing the interjurisdictional vehicles as a fleet is an
individual, the date on which the individual's next birthday falls,
and
2001,c.50,s.1. |
|
|
|
|
|
(II) in any other
case, the date selected by the person licensing the
interjurisdictional vehicles as a fleet, and
2001,c.50,s.1.
|
|
|
|
|
(C) the date that
interjurisdictional vehicles in the fleet cease to be a fleet;
2001,c.50,s.1.
|
interjurisdictional commercial purpose
|
|
(h) "interjurisdictional commercial
purpose" means engaging in interprovincial or international trade by
way of the commercial carriage of passengers or goods;
2001,c.50,s.1.
|
interjurisdictional vehicle
|
|
(i) "interjurisdictional
vehicle" means a vehicle that is eligible to be licensed pursuant to a
reciprocal agreement for an interjurisdictional commercial purpose;
2001,c.50,s.1.
|
prorate tax
|
|
(j) "prorate tax" means the tax
imposed pursuant to subsection 4.5(1), and includes all penalties and
interest that are, may be or may have been added to such tax pursuant to
this Act or the Revenue Administration Act;
2001,c.50,s.1.
|
reciprocal agreement
|
|
(k) "reciprocal agreement"
means an agreement that is prescribed by regulation and that is between
Prince Edward Island and one or more other provinces or territories of
Canada or states of the United States of America in which the parties agree
to prorate taxes on interjurisdictional vehicles and to collect and remit
the other parties' portions of the taxes;
2001,c.50,s.1.
|
reciprocal jurisdiction
|
|
(l) "reciprocal
jurisdiction" means a province or territory of Canada or a state of the
United States of America that has entered into a reciprocal agreement with
Prince Edward Island;
2001,c.50,s.1.
|
vehicle
|
|
(m) "vehicle" does not
include a trailer;
2001,c.50,s.1.
|
vehicle licence period
|
|
(n) "vehicle licence
period" means the period commencing on the date that an interjurisdictional
vehicle is licensed and ending on the earlier of
2001,c.50,s.1.
|
|
|
|
(i) the expiry date of the
licence, and
2001,c.50,s.1. |
|
|
|
(ii) the date the licence
is cancelled, surrendered or terminated;
2001,c.50,s.1.
|
vehicle taxable value
|
|
(o) "vehicle taxable value"
means,
|
|
|
(i) in the case of an
interjurisdictional vehicle that is purchased, the greater of
2001,c.50,s.1.
|
|
|
|
|
(A) the purchase price of the
vehicle in the vehicle's acquisition year, and
2001,c.50,s.1. |
|
|
|
|
(B) the fair value (excluding that
component of the federal sales tax that is the goods and services tax as
established pursuant to Part IX of the Excise Tax Act (Canada)
R.S.C. 1988, Chap. E-15) of the vehicle in the vehicle's acquisition
year, or
2001,c.50,s.1.
|
|
|
|
(ii) in the case of an
interjurisdictional vehicle that is leased, the greater of
|
|
|
|
|
(A) the purchase price of the
vehicle in the vehicle's acquisition year as described in the lease
agreement, and
2001,c.50,s.1. |
|
|
|
|
(B) the fair value (excluding that component of the federal sales tax
that is the goods and services tax as established pursuant to Part IX of
the Excise Tax Act (Canada) R.S.C. 1988, Chap. E-15) of the
vehicle in the vehicle's acquisition year,
2001,c.50,s.1.
|
|
|
and includes any
capital expenditure made in respect of the vehicle after the vehicle's
acquisition date.
2001,c.50,s.1.
|
Distance ratio calculation
|
4.4
The
distance ratio for an interjurisdictional vehicle for a vehicle licence
period is,
|
|
(a) in the case of an
interjurisdictional vehicle that is part of an active interjurisdictional
fleet, the ratio of
2001,c.50,s.1.
|
|
|
|
(i) the actual distance travelled
in Prince Edward Island by the fleet in the period that
2001,c.50,s.1.
|
|
|
|
|
(A) commences on the later of
|
|
|
|
|
|
(I) the date in the
calculation year preceding the vehicle licence period that it began
operating as an interjurisdictional fleet, and
2001,c.50,s.1. |
|
|
|
|
|
(II) the first day
of the calculation year preceding the vehicle licence period, and
2001,c.50,s.1.
|
|
|
|
|
(B) ends on the last
day of the calculation year preceding the vehicle licence period, and
2001,c.50,s.1.
|
|
|
|
(ii) the total actual distance
travelled by that fleet during the period mentioned in subclause (i); or
2001,c.50,s.1.
|
|
|
(b) in any other case, the ratio of
|
|
|
|
(i) a reasonable
estimate of the distance that the fleet will travel in Prince Edward
Island during the fleet year that includes the vehicle licence period,
and 2001,c.50,s.1.
|
|
|
|
(ii) a reasonable
estimate of the total distance that the fleet will travel in the fleet
year that includes the vehicle licence period.
2001,c.50,s.1.
|
Tax on interjurisdictional vehicle
|
4.5
(1) Every person who
licenses an interjurisdictional vehicle for use in Prince Edward Island
and in one or more reciprocal jurisdictions shall pay a tax to the
Minister with respect to each vehicle licence period for the
interjurisdictional vehicle.
2001,c.50,s.1.
|
Manner of paying prorate tax
|
(2) A person who is required
to pay the prorate tax shall pay the prorate tax in the manner prescribed by
regulation.
2001,c.50,s.1.
|
Prorate tax, when payable
|
(3) The prorate tax payable
by a person for an interjurisdictional vehicle for a vehicle licence period is
payable, 2001,c.50,s.1.
|
|
|
(a) if the interjurisdictional vehicle is
licensed in Prince Edward Island, at the time the vehicle is licensed for
the vehicle licence period pursuant to the Highway Traffic Act
R.S.P.E.I. 1988, Cap. H-5; or
2001,c.50,s.1; 2005,c.19s.2.
|
|
|
(b) if the
interjurisdictional vehicle is not licensed in Prince Edward Island,
2001,c.50,s.1.
|
|
|
|
(i) at the time the
interjurisdictional vehicle is licensed for the vehicle licence period in
the reciprocal jurisdiction, or
2001,c.50,s.1. |
|
|
|
(ii) if not paid at the
time mentioned in subclause (i), at the time the interjurisdictional
vehicle first enters Prince Edward Island during the interjurisdictional
vehicle's vehicle licence period.
2001,c.50,s.1.
|
Joint and several liability
|
(4) If the prorate tax is
payable by a person for an interjurisdictional vehicle for a vehicle licence
period, any other person who had management of, or the right to determine the
utilization of, the interjurisdictional vehicle while it was in Prince Edward
Island during the vehicle licence period is jointly and severally liable with
the first mentioned person to pay the prorate tax for the vehicle licence
period. 2001,c.50,s.1.
|
Formula for calculation of prorate tax
|
4.6
(1) The amount of prorate tax
payable by a person for an interjurisdictional vehicle for a vehicle licence
period is the amount calculated in accordance with the formula
2001,c.50,s.1.
|
TV x R x DR x T
|
|
where
|
|
TV |
is the
vehicle taxable value of the interjurisdictional vehicle; |
|
R |
is the rate
of prorate tax applicable to the interjurisdictional vehicle
pursuant to subsection (2); |
|
DR |
is the distance ratio for the
interjurisdictional vehicle for the vehicle licence period; and |
|
T |
is the number
of whole or partial calendar months in the interjurisdictional
vehicle's vehicle licence period at the time that the
interjurisdictional vehicle is licensed divided by 12. |
|
2001,c.50,s.1.
|
Prorate tax rate
|
(2) For the purpose of R in
the formula in subsection (1), the rate of prorate tax applicable to an
interjurisdictional vehicle for a vehicle licence period shall, in each
calendar year in which the prorate tax is payable in respect of the vehicle,
be the rate shown opposite that calendar year in the column for the applicable
type of vehicle in the following table:
2001,c.50,s.1.
|
|
Calendar
Year |
Prorate
Tax
Rate For
Vehicle Other
Than a Bus |
Prorate
Tax
Rate For Bus |
the
acquisition year |
5.034% |
3.148% |
the calendar year
following the acquisition year |
4.045% |
2.529% |
the second calendar year
following the acquisition year |
3.328% |
2.079% |
the third calendar year
following the acquisition year |
2.809% |
1.757% |
the fourth calendar year
following the acquisition year |
2.441% |
1.525% |
the fifth calendar year
following the acquisition year |
2.411% |
1.507% |
the sixth calendar year
following the acquisition year |
2.306% |
1.441% |
the seventh calendar year
following the acquisition year |
2.272% |
1.420% |
the eighth calendar year
following the acquisition year |
2.288% |
1.430% |
the ninth and subsequent
calendar years following the acquisition year |
2.343% |
1.464% |
2001,c.50,s.1. |
|
|
|
Prorate tax adjustment
|
4.7 (1) Notwithstanding sections 4.4
to 4.6, the Minister may adjust the amount of prorate tax payable by a person
for an interjurisdictional vehicle for a vehicle licence period by using the
actual distance travelled by a fleet during a fleet year that includes the
vehicle licence period to calculate the distance ratio if
2001,c.50,s.1.
|
|
|
(a) an estimate of the distance to be
travelled by the fleet has been used initially to calculate the distance
ratio for the interjurisdictional vehicle for the vehicle licence period
pursuant to clause 4.4(b); and
2001,c.50,s.1. |
|
|
(b) in the Minister's opinion, using the actual distance travelled
by the fleet during the fleet year would result in a materially different
distance ratio for the interjurisdictional vehicle for the vehicle licence
period. 2001,c.50,s.1.
|
Time frame for adjustment
|
(2) The Minister may make an
adjustment pursuant to subsection (1) at any time within thirty-six months
immediately following the end of the fleet year.
2001,c.50,s.1.
|
Written notice of adjustment
|
(3) If the Minister makes an
adjustment pursuant to this section to the amount of prorate tax payable by a
person, the Minister shall send written notice of the adjustment to the person
liable to pay the prorate tax.
2001,c.50,s.1.
|
Changes resulting from adjustment
|
(4) If, as a result of any
adjustment made pursuant to this section, the amount of prorate tax payable by
a person is
2001,c.50,s.1.
|
|
|
|
(a) increased, the person
liable to pay the prorate tax shall pay the increased prorate tax in the
manner and at the time directed by the Minister; or
2001,c.50,s.1.
|
|
|
|
(b) decreased, the Minister
may provide the person who paid the prorate tax with a refund or credit in
the amount of the overpayment.
2001,c.50,s.1.
|
Transfer to different interjurisdictional
fleet
|
4.8
(1) If an interjurisdictional
vehicle that was licensed by a person as part of a fleet (in this section
referred to as the "old fleet") is licensed by the person as part of a
different fleet before the end of the fleet year (determined as if the
interjurisdictional vehicle was not transferred to the different fleet)
applicable to the old fleet,
2001,c.50,s.1.
|
|
|
(a) the person shall pay
the prorate tax to the Minister for the interjurisdictional vehicle's new
vehicle licence period; and
2001,c.50,s.1.
|
|
|
(b) the Minister, on
application and on receipt of evidence satisfactory to the Minister, may
provide to the person a refund or credit, calculated in accordance with
regulations, of a portion of the prorate tax paid for the last vehicle
licence period of the interjurisdictional vehicle while it was part of the
old fleet.
2001,c.50,s.1.
|
Interjurisdictional vehicle licensed for use solely in Province
|
(2) If a person pays the prorate
tax with respect to an interjurisdictional vehicle and the interjurisdictional
vehicle is subsequently licensed for use solely within Prince Edward Island, |
|
(a) the owner of lessee of the
vehicle shall pay to the Minister, at the time of licensing the vehicle for
use solely within Prince Edward Island, the amount of tax payable on the
fair value of the vehicle as required pursuant to section 4; and |
|
|
(b) the Minister may, on
application and on receipt of evidence satisfactory to the Minister, provide
to the owner or lessee of the vehicle a refund or credit, calculated in
accordance with the regulations, of a portion of the prorate tax paid for
the last vehicle licence period of the interjurisdictional vehicle before it
was licensed for use solely within Prince Edward Island.
2005,c.19,s.3. |
Interjurisdictional vehicle no longer registered as part of fleet |
(2.1) If a person pays the
prorate tax with respect to an interjurisdictional vehicle and the
interjurisdictional vehicle ceases to be used for an interjurisdictional
commercial purpose, for a reason other than for used solely on Prince Edward
Island, before the end of the vehicle licence period, the Minister may, on
application and on receipt of evidence satisfactory to the Minister, provide
to the owner or lessee of the vehicle a refund or credit, calculated in
accordance with the regulations, of a portion of the prorate tax paid for the
last vehicle licence period of the interjurisdictional vehicle.
2005,c.19,s.3. |
Cessation of use of trailer for
interjurisdictional commercial purpose
|
(3) Where a trailer referred
to in clause 4.9(1)(b) ceases to be used for an interjurisdictional commercial
purpose, the owner or lessee of the trailer shall pay to the Minister, at that
time, the amount of tax payable as required pursuant to section 4 on the fair
value of the trailer.
2001,c.50,s.1.
|
Refund or credit on transfer to
interjurisdictional fleet
|
(4) The Minister, on
application and on receipt of evidence satisfactory to the Minister, may
provide a refund or credit, calculated in accordance with regulations, to a
person who licenses an interjurisdictional vehicle in the province for an
interjurisdictional commercial purpose if
2001,c.50,s.1.
|
|
|
(a) the vehicle is so
licensed within five years after its acquisition date;
2001,c.50,s.1.
|
|
|
(b) the vehicle was
purchased after, or was brought or sent into the province after, the coming
into force of this section; and
2001,c.50,s.1.
|
|
|
(c) the person had
previously paid tax on the fair value of the vehicle pursuant to section 4.
2001,c.50,s.1; 2005,c.19,s.3.
|
Exemptions from tax payable under section 4
|
4.9
(1) The following are exempt
from the tax payable pursuant to section 4:
2001,c.50,s.1.
|
|
(a) an interjurisdictional
vehicle with respect to which the prorate tax has been paid, while the
interjurisdictional vehicle is used for an interjurisdictional commercial
purpose; 2001,c.50,s.1.
|
|
|
(b) a trailer used with an
interjurisdictional vehicle mentioned in clause (a), while the trailer is
used for an interjurisdictional commercial purpose;
2001,c.50,s.1.
|
|
|
(c) any repair parts
prescribed by regulation that are used on an interjurisdictional vehicle
mentioned in clause (a) or a trailer mentioned in clause (b), while the
interjurisdictional vehicle or trailer, as the case may be, is used for an
interjurisdictional commercial purpose.
2001,c.50,s.1.
|
Tax payable on certain equipment
|
(2) Notwithstanding
subsection (1), a person shall pay the tax payable pursuant to section 4 on
any equipment that is
2001,c.50,s.1.
|
|
|
(a) permanently mounted on
or attached to a trailer used with an interjurisdictional vehicle; and
2001,c.50,s.1.
|
|
|
(b) used or designed for a
purpose other than the commercial carriage of goods or passengers.
2001,c.50,s.1.
|
Transitional exemption
|
4.10
(1) Prorate tax is not payable
by a person who, in the province, licenses an interjurisdictional vehicle for
an interjurisdictional commercial purpose for a vehicle licence period that
begins before April 2003 if tax was paid by the person pursuant to section 4
on the last acquisition of the vehicle before April 2001.
2001,c.50,s.1.
|
Transitional refund or credit
|
(2) If tax was paid pursuant
to section 4, on the last acquisition of an interjurisdictional vehicle before
April 2001, by a person who licenses the vehicle outside the province for an
interjurisdictional commercial purpose, the Minister, on application, may
provide a refund or credit, subject to the limitation prescribed by
regulation, to the person for the prorate tax paid by the person in respect of
the vehicle for a vehicle licence period that begins before April 2003.
2001,c.50,s.1.
|
Transition time
frame
|
(3) The prorate tax exemption
provided for in subsection (1) and the refund or credit provided for in
subsection (2) shall not, in any circumstances, be provided for a period
exceeding twenty four months.
2001,c.50,s.1.
|
Ministerial discretion
|
4.11
Where a person is entitled to a
refund or credit pursuant to any of sections 4.7 to 4.10, the Minister may
2001,c.50,s.1.
|
|
|
(a) pay all or a portion of
the refund or credit to the person;
2001,c.50,s.1.
|
|
|
(b) credit all or a portion
of the amount of the refund or credit against the amount of any tax that the
person is required to pay pursuant to this Act; or
2001,c.50,s.1.
|
|
|
(c) pay or credit the
refund or credit in a manner prescribed by regulation.
2001,c.50,s.1.
|
Amusement devices, license fee
|
5.
Without prejudice to section 4, every owner of an entertainment device
operated for gain that requires the insertion of a coin, disc, counter, slug
or other token shall pay for each device an annual license fee of such
amount as may be prescribed by the regulations.
1988,c.59,s.2.
|
Pari-mutuels
|
6. (1) Every person betting at a race meeting
under the system known as pari-mutuel shall pay a tax
|
|
|
(a) on win, place or show wagering, at the rate of 8½ per cent; |
|
|
(b) on feature
wagering, at the rate of 15½ per cent
|
|
of the money deposited by him
with the owner of the system at the time of making any bet. |
Pari-mutuels outside region
|
(1.1) Every person
betting under a pari-mutuel system on a race meeting being conducted at a
track located outside the region shall pay a tax on win, place, show and
feature wagering at the rate of 11 per cent of the money deposited with the
owner of the system at the time of making any bet.
2001,c.49,s.2.
|
Collection of tax
|
(2) The
tax prescribed by subsection (1) and (1.1) shall be collected by the owner
of the system or his agent who shall deduct it from the money deposited with
him before recording or applying the same in the making of any bet.
2001,c.49,s.2.
|
Remission of tax
|
(3) The owner of every pari-mutuel system of betting shall
account for and remit all money received by him under subsection (2) within the time and
in the manner prescribed by the Minister.
|
Records
|
(4) The
owner of every pari-mutuel system of betting shall keep records and make
such reports as may be prescribed by the Minister.
1988,c.59,s.2, 2001,c.49,s.2 .
|
Tax, value of goods and time of payment
|
7. (1) If the goods to be consumed are purchased
at a retail sale within the province, the consumer shall pay the tax computed on the fair
value of the goods at the time of the purchase.
|
Tax payable on goods brought into province, when
|
(2) If the goods to be consumed are not purchased at a retail
sale within the province, the consumer shall pay the tax on the fair value thereof,
determined in the manner following:
|
|
(a) if the goods are primarily intended for consumption by use only, the tax shall be
computed on the fair value of the goods at the time they are brought into the province; |
|
|
(b) if the goods are primarily intended for consumption otherwise than by use only, the
tax shall be computed on the fair value of the goods at the time of consumption.
|
Determination of fair value
|
(3) Where the Commissioner considers it necessary or advisable,
he may determine the fair value of any goods for the purposes of taxation under this Act
and thereupon the fair value of the goods for this purpose shall be as determined by him.
|
Trade-in, tax on difference
|
(4) If within the province a person purchases taxable goods from
a person residing in the province and trades other taxable goods as part of the
consideration of the purchase price, the tax shall be computed on the difference between
the fair values of the goods.
|
Exemption for interjurisdictional
vehicle
|
(4.1) Subsection
(4) does not apply if either the taxable goods purchased or the taxable goods
traded as part of the consideration of the purchase price is an
interjurisdictional vehicle licensed for an interjurisdictional commercial
purpose. 2001,c.50,s.2.
|
Idem
|
(5) If outside the
province a person purchases a hearse or ambulance and trades a hearse or
ambulance as part of the consideration of the purchase price, the tax shall
be computed on the difference between the fair values of the goods.
R.S.P.E.I. 1974, Cap. R-14,s.5; 1987,c.63,s.3; 1988,c.60,s.1; 2001,c.50,s.2.
|
Computing tax
|
8. (1) The tax shall be computed to the nearest cent; one-half
cent shall be deemed to be one cent, and the minimum tax payable is one cent.
|
Tax computed separately for each purchase & on total of purchases, where
|
(2) In case of a retail sale within the province the tax shall
be computed separately on every purchase but, where on the same occasion, or as part of
one transaction several items of goods are purchased, the total of such purchase shall be
deemed to be one purchase for the purpose of this Act.
|
Tax to be shown separately
|
(3) Every vendor or
other person required by this Act to collect tax on retail sales shall show
the tax separately from the sale price or any other amount being charged on
any record, receipt, bill, invoice or other document kept or issued by the
vendor or other person.
R.S.P.E.I. 1974, Cap. R-14,s.6; 1987,c.63,s.4.
|
When
tax payable
|
9. (1) In case of a retail sale within the province, the tax shall
be payable by the purchaser at the time of the purchase on the whole amount of the
purchase price.
|
Sale by rent or lease
|
(2) Notwithstanding subsection (1) and section 4, where a
consumer
|
|
|
(a) rents or leases from any person any taxable service at a sale in the province; or |
|
|
(b) acquires goods at a sale
that is a lease or rental to him of goods without provision for the transfer
to him of title thereto, or with the provision of such transfer only upon
the exercise of an option or similar right to acquire such goods, |
|
the tax imposed by this
Act shall be computed and collected at the time of, and on the fair value of
the consideration given in payment of, each rental payment made by or on
behalf of the consumer in respect of the lease or rental of such taxable
service or goods, and tax shall, in addition, be computed and collected at
the time of, and on the fair value of the consideration given in payment
for, each of the obtaining of any option or similar right to acquire the
goods leased or rented or the exercising of any such option or similar
right.
|
Report to Commissioner on goods brought into province
|
(3) Every person who brings or causes to be
brought, into the province or who receives delivery in the province of goods, for his own
consumption or for the consumption of another person at his expense, or, on behalf of or
as agent for a principal who desires to utilize such goods for consumption by such
principal or by any other person at his expense, shall immediately report the matter to
the Commissioner and forward or produce to him the invoice, if any, in respect of such
goods and any other information required by the Commissioner with respect to the same.
|
Consumption, by
use, of goods
|
(4) If the goods so brought in are primarily intended for
consumption by use only, he shall pay the tax payable with respect to their consumption at
the time the goods are brought into the province.
|
Consumption, not
by use, of goods
|
(5) If the goods are
primarily intended for consumption, otherwise than by use only, he shall pay
such tax at the time of consumption.
R.S.P.E.I. 1974, Cap. R-14,s.7; 1975,c.24,s.2; 1978,c.20,s.4.
|
Assessment of tax against consumer
|
10. Repealed by 1990,c.54,s.29 {eff.} July 6/91.
|
Application for
refund
|
11.
When a vendor sells goods to a person who alleges that he is not purchasing
them as a purchaser within the meaning of this Act, that person shall
deposit with the vendor an amount equivalent to the amount of the tax and
for which he would be liable if he were purchasing the goods as a puchaser,
and the amount so deposited shall be refunded to him upon application to the
Minister and upon furnishing the Minister with proof that he did not
purchase the goods as a purchaser.
R.S.P.E.I. 1974, Cap. R-14,s.9.
|
Exemption from payment of tax
|
12. (1) A consumer is not liable to pay the tax in respect of the
consumption of the following goods:
|
|
(a) food or beverages for human consumption (including sweetening agents, seasonings
and other ingredients to be mixed with or used in the preparation of such food or
beverages), except
|
|
|
|
(i) wine, spirits, beer, malt liquor or other alcoholic beverages, |
|
|
|
(ii) non-alcoholic malt beverages, |
|
|
|
(iii) carbonated beverages, |
|
|
|
(iv) candies, confectionery that may be classed as candy, or any goods sold as candies,
such as candy floss, chewing gum and chocolate, whether naturally or artificially
sweetened, and including fruits, seeds, nuts and popcorn when they are coated or treated
with candy, chocolate, honey molasses, sugar, syrup or artificial sweeteners when
purchased at a purchase price of fifty cents or more, |
|
|
|
(v) prepared meals, |
|
|
|
(vi) prepared food products purchased from an eating establishment but not prepared food
products
|
|
|
|
|
(A) supplied by a school
board primarily to elementary or secondary school students, |
|
|
|
|
(B) other than food supplied through a vending machine, where the purchase is made in an
elementary or secondary school cafeteria primarily to students of the school, except where
the supply is for a private party, reception, meeting or similar private event, |
|
|
|
|
(C) purchased at a university or public college by a student where a meal is provided
under a plan, under which the student purchases from the supplier for a single
consideration, a supply of not less than ten meals weekly, |
|
|
|
|
(D) supplied by a public sector body where the supply is made in the course of an
activity, the purpose of which is to relieve poverty, suffering or distress of individuals
and is not fund-raising, |
|
|
|
|
(E) supplied by a public sector body to aged, infirm, disabled or underprivileged
individuals under a program established and operated for the purpose of providing prepared
food products to those individuals in their places of residence, or |
|
|
|
|
(F) supplied or sold on an occasional basis by a religious, charitable or benevolent
organization where the labour is volunteer and without remuneration, and
|
|
|
|
(vii) snack foods;
|
|
|
(a. 1) to (b) repealed by 1990,c.55,s.1; |
|
|
(b. 1) baby goods as defined by regulation; |
|
|
(b.2) repealed by 1990,c.55,s.1; |
|
|
(c) gasoline and diesel oil as defined in the Gasoline Tax Act
R.S.P.E.I. 1988, Cap. G-3; |
|
|
(c. 1) coal; |
|
|
(c.2) coke; |
|
|
(d) stove oil; |
|
|
(d. 1) fuel oil; |
|
|
(d.2) firewood; |
|
|
(e) electricity; |
|
|
(e.1) natural, manufactured and propane gas; |
|
|
(e.2) repealed by 1993,c.19,s.3; |
|
|
(f) machinery and equipment including parts therefore,
as defined by regulation, when purchased
2002,c.41,s.1. |
|
|
|
(i) by a farmer to whom a
valid Revenue Tax Exemption Permit, and
2002,c.41,s.1. |
|
|
|
(ii) for farm use, and not for
any other commercial operation;
2002,c.41,s.1. |
|
|
(f.1) boats, fishing nets and other apparatus, including parts therefore, as defined by
regulation, when purchased for use in his trade by a commercial fisherman or aquaculturist
2002,c.41,s.1. |
|
|
|
(i) who holds a valid Revenue
Tax Exemption Permit, and
2002,c.41,s.1. |
|
|
|
(ii) for use in that person's
trade, and not for use in any other commercial operation;
2002,c.41,s.1. |
|
|
(f.2) natural water, including ice and steam; |
|
|
(g) clay, gravel, unfinished stone and natural sand, but excluding blasting sand; |
|
|
(g.1) repealed by 1991,c.35,s.2; |
|
|
(g.2) dentures, dental and optical appliances, when purchased on the prescription of a
dentist, optometrist or medical practitioner; |
|
|
(h) artificial limbs, orthopedic appliances and equipment, designed solely for the use of
the physically handicapped; |
|
|
(h.1) hearing aids; |
|
|
(h.2) drugs and medicines, when purchased on the prescription of a medical practitioner,
dentist or veterinarian; |
|
|
(h.3) horses; |
|
|
(h.4) transformers, switch gear, capacitors and circuit breakers used
directly in the distribution of the electricity for sale; |
|
|
(h.5) repealed by
2001,c.49,s.3; |
|
|
(h.6) renewable energy equipment
as defined by the regulations;
(2005,c.51,s.1; 2006,c.19.s.4) |
|
|
(i) machinery, apparatus and complete parts therefor, as defined by regulation, used
directly in the manufacture or production of goods for sale, but excluding storage and
conditioning facilities, and where partly used in such manufacture or production of goods
for sale and partly used for other purposes, the exemption conferred by this clause shall
be determined on the basis of the proportion of the time in which the machinery or
apparatus is used in such manufacture or production; |
|
|
(i.1) machinery and apparatus purchased by manufacturers or producers
for use by them directly in the detection, measurement, prevention, treatment, reduction
or removal of pollutants to water, soil or air, attributable to the manufacture or
production of goods; |
|
|
(i.2) a mobile home that has previously been sold at a retail sale in the province made in
good faith and for valuable consideration; |
|
|
(i.3) motorized equipment, and
complete parts for the motorized equipment, designed specifically for
shaving, cleaning, and flooding ice, when purchased for use in community
operated skating and hockey ricks; |
|
|
(j) goods purchased for the purpose of being processed, fabricated or manufactured into,
attached to or incorporated into goods for the purpose of sale; |
|
|
(j.1) materials consumed or expended in the manufacture or production of goods for sale as
defined by regulation; |
|
|
(j.2) grain, milled products and other agricultural feeds; |
|
|
(k) to (n) repealed by 1991,c.35,s.2; |
|
|
(n.1) goods to be shipped by the seller for delivery outside the province; |
|
|
(o) ship stores delivered to a commercial vessel or boat that normally operates in
extra-territorial waters, excluding boats used for recreational or sporting purposes and
yachts; |
|
|
(o.1) repealed by
2002,c.41.s.2; |
|
|
(o.2) aircraft normally
engaged in foreign or interprovincial public carriage of passengers or
freight for gain; |
|
|
(p) repealed by 1990,c.56,s.2; |
|
|
(p.1) newspapers; |
|
|
(q) magazines and periodicals, when purchased by subscription for delivery by mail; |
|
|
(q.1) articles of clothing,
including fabrics and accessories, as defined by the regulations;
2001,c.49,s.3. |
|
|
(r) footwear as defined by the
regulations;
2001,c.49,s.3. |
|
|
(r.1) safety clothing and safety footwear as defined by regulation; |
|
|
(s) funeral caskets; |
|
|
(s.1) classroom supplies as defined by regulation; |
|
|
(t) textbooks as prescribed in the syllabus of studies in any school, college, university,
business college or trade school within the province, and books or other goods used for
religious instruction or the practice of religion; |
|
|
(t.1) tobacco; |
|
|
(u) commercial vessels or boats that normally operate in extra-territorial waters, and
repairs thereto, but excluding boats used for recreational or sporting purposes and
yachts; |
|
|
(u.1) books, either hard covered or paper backed,
compact discs and audio cassettes that |
|
|
|
(i) are published, produced or
recorded soles for educational, technical, cultural or literary purposes,
and 2002, c.26, s.1. |
|
|
|
(ii) contain no advertising,
2002, c.26, s.1. |
|
|
but not including magazines,
periodicals, directories, price lists, time tables, rate books, catalogues,
periodic reports, albums, books for writing or drawing on, or any books of
the same general class, or any music or movie compact discs or any other
media of the same general class.
2002, c.26, s.1. |
|
|
(u.2) repealed by
2002,c.23.s.1; |
|
|
(v) settlers' effects as defined by regulation; |
|
|
(v.1) repealed by 1993,c.19,s.3; |
|
|
(w) smoke detectors, fire extinguishers and car safety seats for children; |
|
|
(w.01) water and
energy conservation devices as defined by the regulations; |
|
|
(w.1) coin, paper money or bank notes to the extent of the face value in Canadian funds; |
|
|
(x) uncancelled Canadian postage stamps to the extent of the face value in Canadian funds; |
|
|
(x.1) trade dollars; |
|
|
(y) films provided to movie theatres by a film distributor for exhibition; |
|
|
(y.1) specified goods as defined by regulation when purchased by municipalities; |
|
|
(y.2) 800 telephone service as defined by regulation; |
|
|
(y.3) outbound high-volume telephone service as defined by regulation; |
|
|
(z) Remembrance Day poppies and wreaths; |
|
|
(z.1) admission charges to any of the following:
|
|
|
|
(i) agricultural or fishery fairs, |
|
|
|
(ii) athletic contests or games
|
|
|
|
|
(A) in which the participants are amateur athletes or school, college
or university students, |
|
|
|
|
(B) where the person paying the admission charge is not a participant but merely a
spectator, and
|
|
|
|
(iii) entertainments given by school, college, or university students,
Home and School Associations, church groups or similar organizations where the total net
proceeds from such entertainments go to a school, college or university within the
province or to an accredited organization within the province for charitable, educational,
religious or community purposes, |
|
|
|
(iv) live entertainments which are subsidized wholly or principally, directly by public
funds or by funds provided by the Canada Council, |
|
|
|
(v) film presentations by a community film society where admission is limited to members
of the society, and concerts or recitals sponsored by a community concert association or
similar organization, |
|
|
|
(vi) festivals of music or drama presentations where the participants are not paid in cash
or in kind for their services, |
|
|
|
(vii) skating rinks where the persons attending do so for the purpose of participating in
the exercise of skating or attending at, or participating in, an amateur ice carnival, |
|
|
|
(viii) harness racing.
|
Prorating tax for machinery and apparatus used in non-exempt activity
|
(2) For the purposes of clause (1)(i) where the machinery and
apparatus is to be used in part directly in the process of manufacture or production of
goods for sale, a proportion of the tax is payable based on the proportion of the time in
which the machinery or apparatus is to be used for other activities.
|
Exemption for Indians
|
(3) A consumer who is an Indian as defined in the Indian Act
R.S.C. 1985, Cap. I-5 is not liable to pay the tax in respect of the purchase of goods,
other than prepared meals, prepared food products purchased from an eating establishment,
spirits, wines or beer, that are to be consumed on a reserve.
|
Exemption for recipient of promotional distribution
|
(4) A person to whom goods are provided by way of promotional
distribution is exempt from the tax on the amount by which tile fair value of the goods
exceeds any payment made by him solely and specifically for the receipt by him of those
goods.
|
Exemption for
school boards
|
(5) A school
board is not liable to pay the tax in respect of the purchase of prepared
food products that are to be supplied primarily to elementary or secondary
school students.
R.S.P.E.I. 1974, Cap. R-14,s.10; 1975,c.24,s.3; 1975,c.56,s.1; 1976,c.27,s.1;
1978,c.20,s.5; 1979,c.16,s.2; 1980,c.47,s.3; 1982,c.26,s.1; 1985,c.37,s.2; 1986,c.18,s.3;
1987,c.63,s.6; 1988,c.59,s.4; 1988,c.60,s.4; 1990,c.55,s.1 {eff.} Mar. 13/90;
1990,c.56,s.3; 1991,c.35,s.2 {eff.} Apr.10/91; 1990,c.54,s.29; 1990,c.55,s.1 {eff.}
Mar. 13/90; 1990,c.56,s.3; 1991,c.35,s.2 {eff.} Apr. 10/91; 1993,c.19,s.3 {eff.}
June 18/93; 1994,c.54,s.1 {eff.} July 1/94; 1995,c.33,s.5; 1996,c.37,s.1;
1996,c.38,s.1; 1997(2nd),c.57,s.3 {eff.} Nov.24/97,
1997,c.57,s.4; 1998,c.7,s.1; 2001,c.49,s.1; 2002,c.41,s.2; 2002,c.23,s.1;
2004.c.46.s.2;
2005,c.51,s.1; 2005,c.19,s.3; 2007,c.15,s.2.
|
Registration certificate, vendor required to have
|
13. (1) No vendor
|
|
(a) shall sell or permit to be sold goods in the province at a retail sale unless he is
the holder of a registration certificate issued to him under this Act and the certificate
is in force at the time of sale; |
|
|
(b) shall purchase goods in the province for sale at retail in the province unless he is
the holder of a registration certificate issued to him under this Act, and the certificate
is in force at the time of purchase.
|
Idem
|
(2) No wholesaler
shall sell in the province to a vendor goods for sale at retail in the
province unless the vendor is the holder of a registration certificate
issued to him under this Act and the certificate is in force at the time of
the sale.
R.S.P.E.I. 1974, Cap. R-14,s.11; 1987,c.63,s.7.
|
Issuance of certificate
|
14.
The Minister may issue a registration certificate to a vendor upon
application to the Minister in the manner and form prescribed by the
Minister.
R.S.P.E.I. 1974, Cap. R-14,s.12.
|
Keeping of certificate; transferability
|
15. A
registration certificate shall be kept at the principal place of business of
the vendor in the province and is not transferable.
R.S.P.E.I. 1974, Cap. R-14,s.13.
|
Advertising taxable goods on television
|
15.1 Repealed
by 2001,c.49,s.4.
|
Regulations re cancellation or suspension of a registration
|
16. (1) Subject to the approval of the
Lieutenant Governor in Council, the Minister may make regulations
|
|
(a) providing for the cancellation or suspension and for the
reinstatement of the registration certificate of a vendor who has been found guilty of an
offence under this Act or who is in default in the payment of any taxes which are due and
payable under this Act or against whom a judgment has been issued under section 38; |
|
|
(b) designating the offences for which such registration certificate
shall be cancelled; and |
|
|
(c) setting out the terms and conditions under which a registration
certificate which has been cancelled or suspended may be reinstated.
|
Effective date of regulations
|
(2) No
regulation made under subsection (1) has any force or effect until published
in the Gazette.
R.S.P.E.I. 1974, Cap. R-14,s.14.
|
Assignees, liquidators, etc.
to obtain registration
certificate
|
17. (1) Every person who, as assignee,
liquidator, administrator, receiver, receiver-manager, trustee or other like person, other
than a trustee appointed under the Bankruptcy Act
R.S.C. 1985,
Chap. B-3, takes control or possession of the property of any vendor or carries on or
manages the business of the vendor shall, before carrying on or managing the business or
before distributing the property or proceeds from the realization thereof under his
control or possession, obtain from the Minister a registration certificate prescribed by
section 14 and shall be deemed to be a vendor for all purposes of this Act.
|
Remission
|
(2) Any person referred to in subsection (1)
who takes control or possession of the property of any vendor or who carries on or manages
the business of any vendor shall remit to the Minister an amount equal to all unremitted
taxes collected by and deposits made with the vendor at such time or times and in such
manner as is required under the Revenue Administration Act and its
regulations.
2008,c.61,s.1.
|
Personal liability
|
(3) Any person referred to in subsection (1)
who takes control or possession of the property of a vendor or who carries on or manages
the business of a vendor and
|
|
(a) distributes the property or proceeds from the realization thereof
under his control or possession without having obtained the registration certificate
required under subsection (1); or |
|
|
(b) distributes any
unremitted taxes collected by and deposits made with the vendor,
|
|
is personally liable to the
Government for any amount that is due and payable to the Government by the
vendor to under this Act. |
Limit of personal liability
|
(4) The personal liability of a person
referred to in subsection (3) is limited to the lesser of
|
|
(a) an amount equal to the unremitted taxes collected by and deposits
made with the vendor; and |
|
|
(b) the value of the
property or proceeds from the realization of the property,
|
|
notwithstanding any charges,
liens or other security taken against or affecting the vendor's assets.
1980,c.47,s.4; 1990,c.56,s.4; 1990,c.54,s.29 {eff.} July 6/91. |
Injunction
|
18.
A violation of section 13 or of a term or condition of a registration
certificate may, whether or not a penalty is imposed for the violation, be
restrained by proceedings in the Supreme Court.
1987,c.63,s.8.
|
Vendors, agents of minister re collection of tax
|
19. Every vendor is an agent of the Minister for
the purpose of collecting the tax imposed by section 4, and payable under section 9, and
as such shall collect the tax.
R.S.P.E.I. 1974, Cap. R-14,s.15; 1987,c.63,s.9.
|
Vendors, agents of Minister, re receipt of deposits
|
20. Every vendor shall be an agent of the
Minister for the purpose of receiving deposits made under section 11, and as such shall
receive such deposits.
R.S.P.E.I. 1974, Cap. R-14,s.16.
|
Used motor
vehicle dealer |
20.1 (1) In this
section, "used motor vehicle dealer" means a person who holds a dealer's
trade license under the Highway Traffic Act of a type that
authorizes the person to deal only in used motor vehicles. |
Restriction on
collection of tax |
(2) Notwithstanding section
19, a vendor who is a used motor vehicle dealer |
|
(a) is not
an agent of the Minister for the purpose of collecting the tax imposed by
section 4, and payable under section 9, on the sale of a used motor
vehicle; and |
|
|
(b) shall not collect
the tax on the sale of a used motor vehicle.
|
Restriction on
receipt of deposits |
(3) Notwithstanding section
20, a vendor who is a used motor vehicle dealer |
|
(a) is not an
agent of the Minister for the purpose of receiving deposits made under
section 11; and
|
|
|
(b) shall not receive
such deposits.
|
Payment of
deposit to Minister |
(4) Where a person |
|
(a)
purchases a used motor vehicle from a vendor who is a used motor vehicle
dealer; and |
|
|
(b) is required by
section 11 to make a deposit in respect of the purchase,
|
|
the person shall pay the
deposit directly to the Minister, rather than to the vendor.
(2005,c.19.s.5) |
Tax payable at time of purchase
|
21. The tax imposed by section 4, and payable
under section 9, or a deposit made under section 11, whether the purchase price is
stipulated to be payable in cash or on terms or by instalments or otherwise,
shall be collected or made as the case may be, at the time of the purchase
on the whole amount of the purchase price.
R.S.P.E.I. 1974, Cap. R-14,s.17; 1987,c.63,s.9.
|
|
Sections 22 to 27 repealed by
1990,c.54,s.29 {eff.} July 6/91.
|
Copy of bill of sale
|
28. Any
person, other than a vendor, who makes a retail sale within the province to
a consumer, shall, upon the written request of the Minister, provide the
Minister with a copy of the bill of sale or such other document relating to
the sale as he may require.
1987,c.63,s.11.
|
|
Sections 29 to 49 repealed by 1990,c.54,s.29 {eff.}
July 6/91.
|
No notice of refund by vendor
|
50. Repealed
by 2001,c.49,s.5
|
|
Sections 51 to 55 repealed by 1990,c.54,s.29 {eff.}
July 6/91.
|
Definitions
|
56. (1)
For the purposes of this section,
|
|
|
(a) "sale in bulk" means
|
|
|
|
(i) any sale, transfer, conveyance,
barter or exchange of a stock or part thereof, out of the usual course of
business or trade of the vendor,
2001,c.49,s.6. |
|
|
|
(ii) a sale, transfer, conveyance, barter or exchange of substantially
the entire stock of the vendor,
2001,c.49,s.6. |
|
|
|
(iii) a sale, transfer, conveyance, barter or exchange of an interest in
the business of the vendor; and 2001,c.49,s.6.
|
|
|
(b) "stock" includes any
goods which are ordinarily the subject of trade and commerce, and the goods
ordinarily used in connection with any business.
2001,c.49,s.6.
|
Certificate evidencing taxes paid
|
(2) No person shall dispose
of stock through a sale in bulk without first obtaining a certificate from the
Commissioner that all taxes collected by such person or payable by such person
have been paid to the Minister.
2001,c.49,s.6.
|
Effect of failure to obtain
certificate
|
(3) Every person purchasing
stock through a sale in bulk shall obtain a copy of the certificate issued
under subsection (2) from the person selling the stock and, failing to do so,
is responsible for payment to the Minister of an amount equal to all
unremitted taxes collected and all other taxes collectable or payable by the
person thus disposing of the stock though a sale in bulk.
2001,c.49,s.6.
|
Limit of liability
|
(4) The liability of a person
purchasing stock though a sale in bulk is limited to the lesser of
2001,c.49,s.6.
|
|
|
(a) an amount equal to the unremitted
taxes collected and all other taxes collectable or payable by the person
disposing of the stock; and 2001,c.49,s.6.
|
|
|
(b) the value of the stock purchased.
R.S.P.E.I. 1974, Cap. R-14, s.53; 1990,c.56,s.6,7;
2001,c.49,s.6.
|
Regulations
|
57. (1) For the purpose of giving effect to the
provisions of this Act according to their true intent and of supplying any deficiency
therein, the Lieutenant Governor in Council may make such regulations as are considered
necessary or advisable.
|
Idem
|
(2) Without limiting the generality of
subsection (1), the Lieutenant Governor in Council may make regulations
|
|
|
(a) to (d) repealed by 1990,c.54,s.29; |
|
|
(e) providing for the rebate of the tax in whole or in part to the
Crown; religious, charitable or benevolent organizations, schools, colleges or
universities with respect to the purchase of goods entering into capital investment by
such organizations; and to purchasers in exceptional circumstances; and for defining the
nature of such circumstances; and for the terms and conditions under which rebates may be
made; |
|
|
(f) defining any expression used in the Act and not herein defined; |
|
|
(g) providing for relaxing the strictness of the Act relative to the
incidence or collection of the tax thereunder in cases where, without relaxation, great
inconvenience or hardship might result; including cases involving the purchase of goods at
church sales or bazaars, and rummage sales, and involving the purchase of goods entering
into capital investment by religious, charitable or benevolent organizations, schools,
colleges or universities; |
|
|
(h) providing for the posting of bonds by vendors or consumers in favour
of the Government, the amounts, terms and conditions of the bonds and the disposition of
the proceeds of the bonds; |
|
|
(i) providing for and regulating the rebate of the tax paid by a
consumer on the purchase of materials that are incorporated into windmills, solar-heating
systems, and water-power systems; |
|
|
(j) repealed by 1990,c.54,s.29; |
|
|
(k) providing for and regulating the rebate of the tax paid by an
aquaculturist or silvaculturist on the purchase of certain goods; |
|
|
(l) repealed by
1990,c.54,s.291;
|
|
|
(m) providing for and
regulating the refund of the tax paid by the consumer on the purchase of a
hybrid vehicle, as defined in the regulations.
2004.c.46.s.3. |
Publication in Gazette
|
(3) No regulations made under
this Act shall have any force or effect until published in the Gazette.
R.S.P.E.I. 1974,
Cap. R-14,s.54; 1975,c.25,s.1; 1976,c.27,s.2; 1982,c.26,s.4; 1987,c.63,s.21;
1990,c.54,s.29 {eff.} July 6/91; 2004.c.46.s3.
|
_______ |