T-0.1 - Act respecting the Québec sales tax

Section 622.2 Disposition versions

1997-12-19

622.2. The rules set out in the second paragraph apply where

(1)  an offering memorandum in respect of an offer to sell interests in a limited partnership is issued to prospective subscribers before 30 August 1990;

(2)  at the time the offering memorandum is issued, it is proposed that the limited partnership will exclusively engage in the activities of acquiring land or a beneficial interest therein, constructing a complex held in co-ownership on the land, owning residential units held in co-ownership located in the complex and making a supply of those units by way of lease, licence or similar arrangement for the purpose of their occupancy by individuals as places of residence;

(3)  the offering memorandum does not provide for an increase in the subscription prices of the interests because of a change in the application of taxes and the subscription prices are not increased from 30 August 1990 until the date on which the offer to sell the interests expires;

(4)  a particular interest in the limited partnership is transferred to a subscriber before 1 July 1992 in accordance with the offering memorandum;

(5)  the limited partnership, whether or not in concert with another person, acquires land or a beneficial interest therein before 1 July 1992 and engages a person to construct a complex held in co-ownership on that land under agreements in writing entered into before 30 August 1990 or under agreements in writing entered into after 29 August 1990 that substantially conform with terms and conditions relating to those agreements as set out in the offering memorandum;

(6)  the particular interest in the limited partnership relates to a residential unit held in co-ownership that is owned by the limited partnership and is located in the complex held in co-ownership; and

(7)  possession of the particular residential unit held in co-ownership is transferred after 30 June 1992 to a person under a lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence.

The rules to which the first paragraph refers are as follows:

(1)  the amount of tax that is payable and collectible by the limited partnership and the amount of tax deemed to have been paid and collected by the limited partnership under subparagraph 2 of the first paragraph of section 223, in respect of the supply of the particular residential unit held in co-ownership that is deemed to have been made under subparagraph 1 of the first paragraph of section 223, are deemed to be nil;

(2)  for the purposes of Division II of Chapter VI, a residential unit held in co-ownership located in the residential complex is deemed not to be a particular residential complex; and

(3)  the limited partnership is not entitled to an input tax refund in respect of the supply of property or services required for completion of the work after 30 June 1992.

1997, c. 85, s. 714.