T-0.1 - Act respecting the Québec sales tax

Section 301.4 Disposition versions

2013-01-01

301.4. Sections 301.5 to 301.9 apply if a person (in this division referred to as the “surety”) acting as a surety under a performance bond in respect of a contract for a particular taxable supply of construction services relating to an immovable situated in Québec carries on construction (in this division referred to as “particular construction”) that is undertaken in full or partial satisfaction of the surety’s obligations under the bond and is entitled to receive at any time from the creditor, by reason of carrying on the particular construction, an amount (in this division referred to as a “contract payment”).

For the purposes of the first paragraph,

(1)  a reference to a particular person carrying on construction includes a reference to the particular person engaging another person, by way of acquiring services from the other person, to carry on construction for the particular person; and

(2)  a contract payment does not include an amount the tax in respect of which was or will be required to be included in determining the net tax of the debtor under the performance bond and is not an amount paid or payable as or on account of tax under this Title, tax under Part IX of the Excise Tax Act (R.S.C. 1985, c. E-15), or a duty, fee or tax payable by the creditor that is prescribed for the purposes of section 52.

2001, c. 53, s. 325; 2012, c. 28, s. 98.

2001-12-20

301.4. If a person (in this section referred to as the “surety”) acting as a surety under a performance bond in respect of a contract for a particular taxable supply of construction services relating to an immovable situated in Québec carries on the particular construction that is undertaken in full or partial satisfaction of the surety’s obligations under the bond and is entitled to receive at any time from the creditor, by reason of carrying on the particular construction, an amount (in this section referred to as a “contract payment”), the following rules apply:

(1)  in carrying on the particular construction, the surety is deemed to be making, at the place where the particular supply was made, a taxable supply other than a zero-rated supply;

(2)  sections 68, 334, 337 and 337.1 do not apply to that supply; and

(3)  the contract payment is deemed to be consideration for that supply.

For the purposes of the first paragraph,

(1)  a reference to a particular person carrying on construction includes a reference to the particular person engaging another person, by way of acquiring services from the other person, to carry on construction for the particular person; and

(2)  a contract payment does not include an amount the tax in respect of which was or will be required to be included in determining the net tax of the debtor under the performance bond and is not an amount paid or payable as or on account of either tax under this Title or a duty, fee or tax payable by the creditor that is prescribed for the purposes of section 52.

2001, c. 53, s. 325.