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12.07 (1) Subject to section 12.08, a transferee who has obtained an exemption under section 12.02 or 12.03 or a refund under section 12.04 is liable under subsection (3) of this section if and from the time that the transferee,

  • (a) in the case of a transferee who obtained an exemption under section 12.02 or 12.03 or a refund under section 12.04(3)(a), is not a qualifying individual on the registration date,
  • (b) in the case of a transferee who obtained a refund under section 12.04(4)(a), does not become a qualifying individual on or before the first anniversary of the registration date,
  • (c) in the case of a transferee who obtained an exemption under section 12.02 or 12.03, fails or refuses to comply with section 12.02(1)(e) or (3), or
  • (d) subject to subsection (2), fails to inhabit the residential improvement referred to in section 12.05 as the transferee’s principal residence as required by that section.
  • (2) If subsection (1)(d) applies only because the transferee, before the first anniversary of the registration date, fails to comply with section 12.05(b), the transferee is liable under subsection (4) of this section from the date the transferee ceases to inhabit the property as the transferee’s principal residence.
  • (3) A transferee referred to in subsection (1) must pay to the administrator tax in the same amount that the transferee would have been obliged to pay under section 2(1)(a) had the transferee not received the exemption or refund.
  • (4) A transferee referred to in subsection (2) must pay to the administrator tax in the amount calculated in accordance with whichever of the following applies:
  • (a) if the period between the registration date and the date from which the transferee is liable under subsection (2) is greater than or equal to 360 days, the transferee is liable for the amount that would apply under subsection (3) reduced by 100%;
  • (b) if the period between the registration date and the date from which the transferee is liable under subsection (2) is less than 360 days, the transferee is liable for the amount that would apply under subsection (3) multiplied by
    1 – (n/365)    

Where

  • n is the number of days between the registration date and the date from which the transferee is liable under subsection (2).
  • (5) A transferee not referred to in subsection (1) who has obtained an exemption under section 12.02 or 12.03 or a refund under section 12.04 or 12.06 for an amount greater than the amount to which the transferee is entitled under this Act must pay to the administrator as a tax liability the amount by which the exemption or refund received exceeded the exemption or refund to which the transferee was entitled.

2016-3-54, effective February 17, 2016.