Builders applying for this remission must calculate the claim using either interior floor space or fair market value, and the remission depends on meeting stated conditions and filing by January 1, 1996.
Order Respecting the Remission of the Tax Under Part IX of the Excise Tax Act Paid or Payable by Certain Builders in Respect of Additions to Multiple Unit Residential Complexes His Excellency the Governor General in Council, considering that it is in the public interest to do so, is pleased hereby, on the recommendation of the Minister of Finance, pursuant to subsection 23(2)1 of the Financial Administration Act, to make the annexed Order respecting the remission of the tax under Part IX of the Excise Tax Act paid or payable by certain builders in respect of additions to multiple unit residential complexes. S.C. 1991, c. 24, s. 7(2) This Order may be cited as the Goods and Services Tax Builders Remission Order. In this Order, Act means the Excise Tax Act; (Loi) estimated federal sales tax, in respect of an addition to a multiple unit residential complex, means where, in an application for a remission under section 5 in respect of the addition, the amount applied for is based on the interior floor space of the addition, the amount determined by the formula is $50, and is the number of square meters of the interior floor space of the addition, and in any other case, 4.25 per cent of the fair market value of the addition at the time the builder of the addition is deemed, under subsection 191(4) of the Act, to have collected tax in respect of the addition. (taxe de vente fédérale estimative) In this Order, "interior floor space" of an addition to a multiple unit residential complex includes the width of the enclosing walls of the addition that are not adjacent to other residential complexes or residential units and half of the width of the enclosing walls of the addition that are adjacent to other residential complexes or residential units, but does not include storage rooms, attics or basements, unless they are finished by a builder of the addition to a standard comparable to the living areas of the complex; parking areas; or areas set aside for the placement of equipment for the heating of, or the supply of water, gas or electricity to, the complex. A builder of an addition to a multiple unit residential complex who applies for a remission under section 5 in respect of the addition shall base the amount applied for on either the interior floor space or the fair market value of the addition. Where a builder of an addition to a multiple unit residential complex is deemed under subsection 191(4) of the Act to have collected tax after 1990 in respect of the addition and the construction of the addition was, on January 1, 1991, more than 25 per cent completed, remission of the tax is, subject to section 6, hereby granted to the builder in an amount equal to where the construction of the addition was, on January 1, 1991, not more than 50 per cent completed, the lesser of 50 per cent of the estimated federal sales tax in respect of the addition, and the amount of the tax deemed to have been so collected; and where the construction of the addition was, on January 1, 1991, more than 50 per cent completed, the lesser of 75 per cent of the estimated federal sales tax in respect of the addition, and the amount of the tax deemed to have been so collected. The remission granted under section 5 is on condition that the builder applies to the Minister of National Revenue for the remission before January 1, 1996; no rebate under section 121 of the Act in respect of the complex was paid; and no remission under section 5 in respect of the addition was granted to any other person.