An Act respecting excise taxesExcise Tax ActExcise Tax201201
19
E-15SHORT TITLEShort titleThis Act may be cited as the Excise Tax Act.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 1.
INTERPRETATIONDefinitionsThe following definitions apply in this section, Parts I to VIII (other than section 121) and Schedules I to IV:accredited representative [Repealed, 2002, c. 22, s. 366]AgencyAgenceAgency means the Canada Revenue Agency continued by subsection 4(1) of the Canada Revenue Agency Act;Atlantic manufactured tobacco[Repealed, 2001, c. 16, s. 16]bankbanquebank means a bank or an authorized foreign bank within the meaning of section 2 of the Bank Act;black stock[Repealed, 2002, c. 22, s. 413]black stock cigarettes[Repealed, 2002, c. 22, s. 413]black stock manufactured tobacco[Repealed, 2001, c. 16, s. 16]cigar[Repealed, 2002, c. 22, s. 366]cigarette [Repealed, 2002, c. 22, s. 366]CommissionercommissaireCommissioner means the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act;cosmeticscosmétiquescosmetics means goods, whether possessing therapeutic or prophylactic properties or not, commonly or commercially known as toilet articles, preparations or cosmetics, that are intended for use or application for toilet purposes, or for use in connection with the care of the human body, including the hair, nails, eyes, teeth, or any other part or parts thereof, whether for cleansing, deodorizing, beautifying, preserving or restoring, and includes toilet soaps, shaving soaps and shaving creams, skin creams and lotions, shampoos, mouth washes, oral rinses, toothpastes, tooth powders, denture creams and adhesives, antiseptics, bleaches, depilatories, perfumes, scents and similar preparations;diesel fuelcombustible dieseldiesel fuel includes any fuel oil that is suitable for use in internal combustion engines of the compression-ignition type, other than any such fuel oil that is intended for use and is actually used as heating oil;documentdocumentdocument includes money, a security and a record;duty free shopboutique hors taxesduty free shop has the meaning assigned by subsection 2(1) of the Customs Act;foreign duty free shopboutique hors taxes à l’étrangerforeign duty free shop means a retail store that is located in a country other than Canada and that is authorized under the laws of that country to sell goods free of certain duties and taxes to individuals who are about to leave that country;foreign ships’ storesprovisions de bord à l’étrangerforeign ships’ stores means tobacco products taken on board a vessel or aircraft while the vessel or aircraft is outside Canada and that are intended for consumption by or sale to the passengers or crew while the passengers and crew are on board the vessel or aircraft;gasolineessencegasoline means gasoline type fuels for use in internal combustion engines other than aircraft engines;health goodsmarchandises relatives à la santéhealth goods means any material, substance, mixture, compound or preparation, of whatever composition or in whatever form, sold or represented for use in the diagnosis, treatment, mitigation or prevention of a disease, a disorder, an abnormal physical state or the symptoms thereof in human beings or animals or for use in restoring, correcting or modifying organic functions in human beings or animals;Indian[Repealed, 2002, c. 22, s. 413]licensed tobacco manufacturer[Repealed, 2001, c. 16, s. 16]listed international agreementaccord international désignélisted international agreement meansthe Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time by a protocol, or other international instrument, as ratified by Canada, ora comprehensive tax information exchange agreement that Canada has entered into and that has effect, in respect of another country or jurisdiction;manufactured tobacco[Repealed, 2002, c. 22, s. 366]manufacturer or producerfabricant ou producteurmanufacturer or producer includesthe assignee, trustee in bankruptcy, liquidator, executor, liquidator of a succession or curator of any manufacturer or producer and, generally, any person who continues the business of a manufacturer or producer or disposes of his assets in any fiduciary capacity, including a bank exercising any powers conferred upon it by the Bank Act and a trustee for bondholders,any person, firm or corporation that owns, holds, claims or uses any patent, proprietary, sales or other right to goods being manufactured, whether by them, in their name or for or on their behalf by others, whether that person, firm or corporation sells, distributes, consigns or otherwise disposes of the goods or not,any department of the government of Canada or any province, any board, commission, railway, public utility, manufactory, company or agency owned, controlled or operated by the government of Canada or any province, or under the authority of the legislature or the lieutenant governor in council of any province, that manufactures or produces taxable goods,any person who sells, otherwise than in a retail store exclusively and directly to consumers, cosmetics that were not manufactured by him in Canada, other than a person who sells those cosmetics exclusively and directly to hairstylists, cosmeticians and other similar users for use in the provision of personal grooming services and not for resale,[Repealed, R.S., 1985, c. 12 (4th Supp.), s. 1]any person who, by himself or through another person acting for him, prepares goods for sale by assembling, blending, mixing, cutting to size, diluting, bottling, packaging or repackaging the goods or by applying coatings or finishes to the goods, other than a person who so prepares goods in a retail store for sale in that store exclusively and directly to consumers,any person who imports into Canada new motor vehicles designed for highway use, or chassis therefor,any person who sells, otherwise than predominantly to consumers, new motor vehicles designed for highway use, or chassis therefor,any person who sells goods enumerated in Schedule III.1, other than a person who sells those goods exclusively and directly to consumers, andany person who sells or leases prerecorded video cassettes that are new or have not been used in Canada, other than a person who sells or leases such goods exclusively and directly to consumers other than to consumers who lease such goods to other persons;MinisterministreMinister means the Minister of National Revenue;mobile homemaison mobilemobile home means a trailer unit not less than three metres wide by eight metres long, equipped with complete plumbing, electrical and heating facilities and designed to be towed on its own chassis to a building site for installation on a foundation and connection to service facilities at that site and to be used for residential, commercial, educational, institutional or industrial purposes, but does not include any free-standing appliances or furniture sold with the unit or any travel trailer, motor home, camping trailer or other vehicle or trailer for recreational use;modular building unitbâtiment modulairemodular building unit means a building component or unit, the manufacture and assembly of which is completed or substantially completed before delivery to a construction site, that is designed for installation on a foundation and is composed of at least one room or area with finished walls, a finished floor and a finished ceiling, including installed plumbing, heating and electrical equipment appropriate to that room or area, and that, when installed on a foundation at the site, with or without other similarly manufactured and assembled components or units, forms a complete residential, commercial, educational, institutional or industrial building, but does not include any freestanding appliances or furniture sold with the unit;municipalitymunicipalitémunicipality meansan incorporated city, town, village, metropolitan authority, township, district, county or rural municipality or other incorporated municipal body however designated, orsuch other local authority as the Minister may determine to be a municipality for the purposes of this Act;operatorexploitantoperator of a duty free shop means the person operating the duty free shop who is licensed as a wholesaler under Part VI and is deemed by subsection 55(2) to be a bona fide wholesaler or jobber;personpersonneperson means an individual, partnership, corporation, trust, estate, or a body that is a society, union, club, association, commission or other organization of any kind whatever;prescribedprescritprescribed meansin the case of a form, the information to be given on a form or the manner of filing a form, prescribed by the Minister, andin any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation;recordregistrerecord includes an account, an agreement, a book, a chart or table, a diagram, a form, an image, an invoice, a letter, a map, a memorandum, a plan, a return, a statement, a telegram, a voucher, and any other thing containing information, whether in writing or in any other form;stamp or excise stamptimbre ou timbre d’accisestamp or excise stamp means a stamp prepared for the purposes of this Act pursuant to a direction of the Minister under section 60;telecommunication[Repealed, 1993, c. 38, s. 86]this Actprésente loithis Act means this Act except Part IX and Schedules V to X.tobacco stick [Repealed, 2002, c. 22, s. 366]Application to territoriesFor the purposes of this Act, the expression “Her Majesty in right of a province” includes the governments of Yukon, the Northwest Territories and Nunavut and the expression “legislature of any province” includes the Council of the Northwest Territories and the Legislative Assembly of Yukon or Nunavut.Arm’s lengthFor the purposes of this Act,related persons shall be deemed not to deal with each other at arm’s length; andit is a question of fact whether persons not related to each other were, at any particular time, dealing with each other at arm’s length.Related personsFor the purposes of this Act, persons are related to each other if they are related persons within the meaning of subsections 251(2) to (6) of the Income Tax Act, except thatreferences in those subsections to “corporation” shall be read as references to “corporation or partnership”; andreferences in those subsections to “shares” or “shareholders” shall, in respect of a partnership, be read as references to “rights” or “partners”, respectively.Associated personsFor the purposes of this Act, a particular corporation is associated with another corporation if, by reason of subsections 256(1) to (6) of the Income Tax Act, the particular corporation is associated with the other corporation for the purposes of that Act.Corporations controlled by same person or groupFor the purposes of this Act, a person other than a corporation is associated with a particular corporation if the particular corporation is controlled by the person or by a group of persons of which the person is a member and each of whom is associated with each of the others.Partnership or trustFor the purposes of this Act, a person is associated witha partnership if the total of the shares of the profits of the partnership to which the person and all other persons who are associated with the person are entitled is more than half of the total profits of the partnership, or would be more than half of the total profits of the partnership if it had profits; anda trust if the total of the values of the interests in the trust of the person and all other persons who are associated with the person is more than half of the total value of all interests in the trust.Association with third personFor the purposes of this Act, a person is associated with another person if each of them is associated with the same third person.Importer deemed manufacturer or producerFor the purposes of this Act, a person who is a manufacturer or producer within the meaning of paragraph (d), (i) or (j) of the definition of that term in subsection (1), other than a member of a class of small manufacturer or producer that is exempted by regulations made under subsection 54(2) from the requirement of subsection 54(1) to apply for a licence, and who imports into Canadacosmetics,[Repealed, R.S., 1985, c. 12 (4th Supp.), s. 1]goods enumerated in Schedule III.1, orprerecorded video cassettes that are new or have not been used in Canadashall be deemed to be the manufacturer or producer in Canada thereof and not the importer thereof and the goods shall be deemed to be goods produced or manufactured in Canada and not imported goods.Goods deemed not to be importedFor the purposes of this Act, goods imported into Canada by a person who is a manufacturer or producer within the meaning of paragraph (f) of the definition of that term in subsection (1), other than a member of a class of small manufacturer or producer that is exempted by virtue of regulations made under subsection 54(2) from the requirement of subsection 54(1) to apply for a licence, that are prepared, as described in that paragraph, by or on behalf of that person in Canada for sale shall be deemed to be goods produced or manufactured in Canada and not imported goods.Importer deemed manufacturer or producerFor the purposes of this Act, a person who is a manufacturer or producer within the meaning of paragraph (g) of the definition of that term in subsection (1), other than a member of a class of small manufacturer or producer that is exempted by virtue of regulations made under subsection 54(2) from the requirement of subsection 54(1) to apply for a licence, and who imports new motor vehicles designed for highway use, or chassis therefor, into Canada shall be deemed to be the manufacturer or producer in Canada thereof and not the importer thereof and the vehicles or chassis shall be deemed to be goods produced or manufactured in Canada and not imported goods.Goods deemed not to be importedFor the purposes of this Act, new motor vehicles designed for highway use, and chassis therefor, imported into Canada that are sold by a person who is a manufacturer or producer within the meaning of paragraph (h) of the definition of that term in subsection (1), other than a member of a class of small manufacturer or producer that is exempted by virtue of regulations made under subsection 54(2) from the requirement of subsection 54(1) to apply for a licence, shall be deemed to be goods produced or manufactured in Canada and not imported goods.IdemFor the purposes of this Act, a licensed wholesaler who gives away without charge, as free samples, replacement goods or parts or otherwise, goods on which taxes have not been paid under this Act is deemed to have retained the goods for his own use, unlesshe gives them away as free replacement goods or parts under a written warranty of the manufacturer of the goods to be replaced or of the goods into which the parts are to be incorporated; andthe amount, if any, charged for the warranty is included in the sale price charged by the manufacturer for the goods to be replaced or the goods into which the parts are to be incorporated or, if those goods are imported goods, in the duty paid value thereof.Retroactive effectFor the purposes of this Act, a determination under paragraph (b) of the definition municipality in subsection (1) shall, if it so provides, be retroactive and be deemed to have come into force on a day prior to the day on which it is made, which prior day shall not be more than four years before the day on which the determination is made.References to tax etc. under ActAny reference in a regulation or order made before 1991 under an Act of Parliament to a refund, remission or other relief from or in respect of a tax, duty, excise or levy underthe Excise Tax Act,the laws relating to customs or customs duties, orthe laws relating to excise or duties of exciseshall, except where the regulation or order otherwise expressly provides, be deemed not to include a reference to a refund, remission or other relief from the tax imposed under Part IX.[Repealed, 2001, c. 16, s. 16]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 2;
R.S., 1985, c. 15 (1st Supp.), s. 1, c. 7 (2nd Supp.), s. 1, c. 12 (4th Supp.), s. 1;
1990, c. 45, s. 1;
1993, c. 25, s. 54, c. 28, s. 78, c. 38, s. 86;
1994, c. 29, s. 1;
1998, c. 19, s. 275;
1999, c. 17, s. 145, c. 28, s. 158, c. 31, s. 247(F);
2000, c. 30, s. 2;
2001, c. 16, s. 16, c. 17, s. 233;
2002, c. 7, s. 166, c. 22, ss. 366, 413;
2005, c. 38, s. 99;
2007, c. 18, s. 64;
2010, c. 25, s. 126;
2011, c. 15, s. 10.
Previous VersionINSURANCE PREMIUMS OTHER THAN MARINEDefinitionsIn this Part,exchangeBourseexchange means a group of persons formed for the purpose of exchanging reciprocal contracts of indemnity or inter-insurance with each other through the same attorney;insurerassureurinsurer means any corporation incorporated for the purpose of carrying on the business of insurance, any association of persons formed on the plan known as Lloyds whereby each associate underwriter becomes liable for a stated, limited or proportionate part of the whole amount insured under a contract of insurance, and any exchange;net premiumsprimes nettesnet premiums means the gross premiums paid or payable under a contract of insurance, less dividends received or receivable in respect of the contract and less premiums returned on cancellation of the contract.Superintendent[Repealed, 1999, c. 17, s. 146]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 3;
R.S., 1985, c. 18 (3rd Supp.), s. 35;
1999, c. 17, s. 146.
Tax on premiums in respect of insurance effected outside CanadaEvery person resident in Canada by whom or on whose behalf a contract of insurance, other than a contract of reinsurance, is entered into or renewed against a risk ordinarily within Canada at the time the contract is entered into or renewed,withany insurer not incorporated under the laws of Canada or of any province or not formed in Canada, orany exchange having its chief place of business outside Canada or having a principal attorney-in-fact whose chief place of business is outside Canada,that at the time the contract is entered into or renewed is not authorized under the laws of Canada or of any province to transact the business of insurance, orwith any insurer that at the time the contract is entered into or renewed is authorized under the laws of Canada or of any province to transact the business of insurance, if the contract is entered into or renewed through a broker or agent outside Canada,shall, on or before April 30 in each year, pay to the Minister, in addition to any other tax payable under any other law, a tax of ten per cent on the net premiums paid or payable during the immediately preceding calendar year in respect of that insurance.ApplicationSubsection (1) does not apply toany contract of life insurance, personal accident insurance, sickness insurance or insurance against marine risks, or any contract of insurance against nuclear risks to the extent that the insurance against nuclear risks is not, in the opinion of the Commissioner, available within Canada; orany other contract of insurance entered into after February 19, 1973 to the extent that the insurance is not, in the opinion of the Commissioner, available within Canada.Residence of corporationFor the purposes of this section, every corporation carrying on business in Canada shall be deemed to be a person resident in Canada.Through whom contract madeWhere a contract of insurance is entered into or renewed through more than one broker or agent, or where payment of the premium or any part of the premium thereon is effected through more than one broker or agent, the contract shall, for the purposes of this Part, be deemed to have been entered into or renewed, as the case may be, through the broker or agent directly retained or instructed by the insured and not through any other broker or agent.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 4;
1999, c. 17, s. 147.
ReturnsEvery person to whom section 4 applies shall, on or before April 30 in each year, make a return in writing to the Minister stating, with respect to each contract of insurance entered into or renewed by him or on his behalf during the immediately preceding calendar year and on which the net premiums are taxable under section 4,the name of the insurer;the amount of the insurance;the net premiums paid or payable during the immediately preceding calendar year; andif the contract was entered into or renewed as described in paragraph 4(1)(b), the name and address of the broker or agent outside Canada through whom the contract was entered into or renewed.Return by broker or agentEvery person who, acting as a broker or agent, obtains, effects or places or assists in obtaining, effecting or placing any contract of insurance entered into or renewed as described in paragraph 4(1)(a), and on which the net premiums are taxable under section 4, shall, on or before March 15 in each year, make a return in writing to the Minister stating, with respect to each contract so entered into or renewed during the immediately preceding calendar year, the name and address of the person resident in Canada by whom or on whose behalf the contract was entered into or renewed and the net premiums paid or payable during that year.Return by insurerEvery insurer that enters into or renews a contract of insurance as described in paragraph 4(1)(b), and on which the net premiums are taxable under section 4, shall, on or before March 15 in each year, make a return in writing to the Minister stating, with respect to each contract so entered into or renewed during the immediately preceding calendar year,the name and address of each person resident in Canada with whom or on whose behalf the contract was entered into or renewed;the net premiums paid or payable during the immediately preceding calendar year; andthe name and address of the broker or agent outside Canada through whom the contract was entered into or renewed.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 5;
R.S., 1985, c. 7 (2nd Supp.), s. 2.
Examination of books and recordsThe Commissioner or any officer or employee of the Agency appointed by the Commissioner may visit the office of any insurer, broker or agent and examine their books and records for the purpose of verifying any return required by this Part, and the Commissioner and that officer or employee have a right of access to those books and records at all reasonable hours.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 6;
1992, c. 1, s. 64;
1999, c. 17, s. 148.
DefinitionIn this section, month means a period beginning on a particular day in a calendar month and ending onthe day immediately before the day in the next calendar month that has the same calendar number as the particular day; orif the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month.Failure to file a return when requiredEvery person who fails to file a return for a period as and when required under subsection 5(1) shall pay a penalty equal to the sum ofan amount equal to 1% of the amount of tax unpaid at the expiration of the time for filing the return, andthe amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on which the return was required to be filed to the day on which the return is filed.IdemEvery person who refuses or neglects to make a return as required by subsection 5(2) or (3) is liable to a penalty of ten dollars for each day of default or fifty dollars, whichever is the lesser.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 7;
R.S., 1985, c. 7 (2nd Supp.), s. 3;
2003, c. 15, s. 94;
2006, c. 4, s. 124.
Previous VersionAIR TRANSPORTATION TAXInterpretationDefinitionsIn this Part,air carriertransporteur aérienair carrier means a person who provides transportation of a person by air;certified air carriertransporteur aérien titulaire de certificatcertified air carrier meansan air carrier who is authorized by the Canadian Transportation Agency under Part II of the Canada Transportation Act to operate a domestic service or an international service, andan air carrier, other than an air carrier described in paragraph (a), who, personally or by agent, sells in Canada transportation of a person by air that is to be provided in whole or in part by an air carrier described in paragraph (a);emplanementembarquementemplanement does not include an emplanement resulting from a landing of an aircraft made solely to obtain ground services for the aircraft;licensed air carriertransporteur aérien titulaire de licencelicensed air carrier means a certified air carrier to whom a licence has been granted under section 17;taxtaxetax means the air transportation tax imposed under this Part;taxation areazone de taxationtaxation area meansCanada,the United States (except Hawaii), andthe Islands of St. Pierre and Miquelon.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 8;
R.S., 1985, c. 15 (1st Supp.), s. 2, c. 28 (3rd Supp.), s. 287;
1996, c. 10, s. 225.
Her MajestyBinding on Her MajestyThis Part is binding on Her Majesty in right of Canada or a province.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 9.
Tax ImposedTax imposedThere shall be imposed, levied and collected an air transportation tax, determined under section 11, on each amount paid or payable in Canada for transportation of a person by air where that transportation begins at a point in the taxation area and ends at a point in the taxation area.IdemThere shall be imposed, levied and collected an air transportation tax, determined under section 11, on each amount paid or payable outside Canada for the transportation of a person by air where that transportationbegins at a point in the taxation area and ends at a point in the taxation area, andincludes an emplanement by the person on an aircraft at an airport in Canada on a specific flight having as a destination an airport in the taxation area outside Canada and subsequent deplanement by the person from the flight at an airport outside Canada,payable by the person at the time when, in respect of the transportation, he emplanes at the airport in Canada described in paragraph (b) on the aircraft therein described, except where the air transportation tax has been paid before that time to a licensed air carrier or his agent and evidence of the prepayment of tax is submitted by the person, in a manner and form and to a member of a class of persons prescribed by regulation of the Governor in Council.Transportation by airFor the purposes of subsection (1), transportation by air begins at a point in the taxation area and ends at a point in the taxation area if the transportation does not include a departure, destination or intermediate stop, other than a transfer stop, outside the taxation area.IdemFor the purposes of subsection (2), transportation by air begins at a point in the taxation area and ends at a point in the taxation area if the transportationdoes not include a departure, destination or intermediate stop, other than a transfer stop, outside the taxation area; andincludes at least one departure from a point in Canada, other than a departure resulting from a transfer stop.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 10;
R.S., 1985, c. 15 (1st Supp.), s. 3.
Amount of taxSubject to subsections (2) and (2.1), the tax imposed under subsection 10(1) or (2) on each amount paid or payable for transportation of a person by air shall be an amount that is the lesser ofthe aggregate ofthe amount that is4% of each amount paid or payable, if the amount is paid or payable in Canada after December 31, 1997 for transportation of a person by air that begins after February 28, 1998,4% of each amount paid or payable, if the amount is paid or payable outside Canada after December 31, 1997 and the first emplanement by the person, as described in paragraph 10(2)(b), occurs after February 28, 1998, or7% of each amount paid or payable, in any other case, and$6 or such lesser amount as may, for the purposes of this subparagraph, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, andsuch amount as may, for the purposes of this subsection, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport.Charter flightsWhere the amount paid or payable in Canada for air transportation is for transportation by an aircraft that has been chartered for the purpose by one or more charterers, the tax imposed under subsection 10(1) on the amount paid or payable to a certified air carrier by each charterer shall be an amount that is the lesser ofthe aggregate ofthe amount that is4% of each amount paid or payable, if the amount is paid or payable after December 31, 1997 to a certified air carrier by the charterer for transportation of a person by air that begins after February 28, 1998, or7% of each amount paid or payable to a certified air carrier by the charterer, in any other case, andthe amount that is$1.50 in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by any person, if the amount is paid or payable to a certified air carrier by the charterer after December 31, 1997 for transportation of the person by air that begins after February 28, 1998, or$3 in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by any person, in any other case, andthe aggregate of such amount as may, for the purposes of this subsection, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by any person.Amount of tax imposed on amount paid outside Canada where tax payable in CanadaWhere the tax imposed under subsection 10(2) on an amount paid or payable outside Canada for transportation of a person by air is payable by the person at the time he emplanes at an airport in Canada and evidence of the amount paid or payable for the transportation is not submitted, in the manner and form prescribed by regulation of the Governor in Council, by the person to the licensed air carrier required by this Part to collect the tax in Canada, and an amount is prescribed by order of the Governor in Council pursuant to paragraph (1)(b), the tax payable by the person shall be the amount so prescribed.When tax not payableThe tax imposed by subsection 10(1), as determined under subsection (1), on each amount paid or payable for transportation of a person by air is not payable in the case of transportation purchased as part of a continuous journey wherethe journey includes a charter flight in respect of which tax is imposed under section 10 or 12; andevidence of the continuous journey is submitted by the person to the licensed air carrier or his agent from whom the transportation by air is purchased.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 11;
R.S., 1985, c. 15 (1st Supp.), s. 4, c. 7 (2nd Supp.), s. 4, c. 42 (2nd Supp.), s. 1, c. 12 (4th Supp.), s. 2;
1990, c. 45, s. 2;
1994, c. 29, s. 2;
1998, c. 21, s. 84.
Specific taxThere shall be imposed, levied and collected an air transportation tax, determined under section 13, on each amount paid or payable in Canada for transportation of a person by air where that transportation begins at a point in the taxation area and ends at a point outside the taxation area.IdemThere shall be imposed, levied and collected an air transportation tax, determined under section 13, on each amount paid or payable outside Canada for the transportation of a person by air where such transportationbegins at a point in the taxation area and ends at a point outside the taxation area, andincludes an emplanement by the person on an aircraft at an airport in Canada on a specific flight having as a destination an airport outside Canada and subsequent deplanement by the person from the flight at an airport outside Canada,payable by the person at the time when, in respect of the transportation, he emplanes at the airport in Canada described in paragraph (b) on the aircraft therein described, except where the air transportation tax has been paid before that time to a licensed air carrier or his agent and evidence of the prepayment of tax is submitted by the person, in a manner and form and to a member of a class of persons prescribed by regulation of the Governor in Council.Transportation by airFor the purposes of subsection (1), transportation by air begins at a point in the taxation area and ends at a point outside the taxation area if the transportation or any part thereof includes at least one departure from a point in the taxation area, other than a departure resulting from a transfer stop, to a destination outside the taxation area.IdemFor the purposes of subsection (2), transportation by air begins at a point in the taxation area and ends at a point outside the taxation area if the transportation or any part thereof includes at least one departure from a point in Canada, other than a departure resulting from a transfer stop, to a destination outside the taxation area, whether or not there are any intermediate stops.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 12;
R.S., 1985, c. 15 (1st Supp.), s. 5.
Amount of taxSubject to subsection (2), the tax imposed under subsection 12(1) for transportation of a person by air shall bean amount that is the lesser ofthe amount of$30, if the amount paid or payable for transportation of the person by air is paid or payable after December 31, 1997 for transportation of the person by air that begins after February 28, 1998, or$55, in any other case, andsuch amount as may, for the purposes of this subsection, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport; orfifty per cent of the amount provided in paragraph (a) when the person is a child under twelve years of age and is being transported at a fare reduced fifty per cent or more below the applicable fare.Charter flightsWhere the amount paid or payable in Canada for air transportation is for transportation by an aircraft that has been chartered for the purpose by one or more charterers, the tax imposed under subsection 12(1) on the amount paid or payable to a certified air carrier by each charterer shall be an amount that is the aggregate ofthe lesser ofthe amount of$30, if the amount paid or payable for the transportation of a person by air is paid or payable to a certified air carrier by the charterer after December 31, 1997 for transportation of the person by air that begins after February 28, 1998, or$55, in any other case, andsuch amount as may, for the purposes of this subsection, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport,in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by a person, other than a person described in paragraph (b); andfifty per cent of the amount provided in paragraph (a) in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by a child who is under twelve years of age and is being transported at a fare reduced fifty per cent or more below the applicable fare.Definition of emplanementFor the purposes of subsection (2), emplanement means an emplanement by a person at an airport in Canada on a specific flight that has as a destination an airport outside Canada and from which the person deplanes at an airport outside Canada.Amount of taxThe tax imposed under subsection 12(2) for transportation of a person by air shall bewhere the first emplanement of the person occurs at an airport in Canada,an amount that is the lesser ofthe amount of$30, if the amount paid or payable for the transportation is paid or payable after December 31, 1997 and the first emplanement by the person, within the meaning of subsection (2.1), occurs after February 28, 1998, or$55, in any other case, andsuch amount as may, for the purposes of this paragraph, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, or50% of the amount provided in subparagraph (i) where the person is a child under twelve years of age and is being transported at a fare reduced 50% or more below the applicable fare; andin any other case,an amount that is the lesser ofthe amount of$15, if the amount paid or payable for the transportation is paid or payable after December 31, 1997 and the first emplanement by the person, within the meaning of subsection (2.1), occurs after February 28, 1998, or$27.50, in any other case, andsuch amount as may, for the purposes of this paragraph, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, or50% of the amount provided in subparagraph (i) where the person is a child under twelve years of age and is being transported at a fare reduced 50% or more below the applicable fare.Non-applicationSubsections 12(1) and (2) do not apply in respect of the transportation of a person by air at a fare ninety per cent or more below the applicable fare.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 13;
R.S., 1985, c. 15 (1st Supp.), s. 6, c. 12 (4th Supp.), s. 3;
1990, c. 45, s. 3;
1994, c. 29, s. 3;
1995, c. 36, s. 1;
1998, c. 21, s. 85.
More than one amount payableNotwithstanding sections 11 and 13 but subject to subsection 11(3) and subsection (2) of this section, where two or more amounts are paid or payable at the same time for transportation of a person by air on a continuous journey,the total of the taxes imposed on all such amounts under subsection 10(1) or (2), determined under subsection 11(1), shall not exceed the lesser ofthe amount that isthe total of 4% of the aggregate of all such amounts and $3, if the amount paid or payable for the transportation is paid or payable after December 31, 1997 for transportation of the person by air that begins after February 28, 1998, orthe total of 7% of the aggregate of all such amounts and $6, in any other case, andthe amount, if any, prescribed by order of the Governor in Council under paragraph 11(1)(b);the total of the taxes imposed on all such amounts under subsections 10(1) and 12(1), determined under subsections 11(1) and 13(1), as applicable, shall not exceed the amount determined under subsection 13(1) in respect of any such amount in respect of which that subsection applies; andthe total of the taxes imposed on all such amounts under subsections 10(2) and 12(2), determined under subsections 11(1) and 13(2.2), as applicable, shall not exceed the largest amount determined under subsection 13(2.2) in respect of any such amount.Restriction on reduction of taxSubsection (1) does not apply to reduce any tax imposed under this Part in respect of transportation of a person by air unless the licensed air carrier or the carrier’s agent from whom the transportation is purchased records on each ticket issued at the same time the following information:ticket numbers, including air carrier codes, for all flights comprising the continuous journey; andflight numbers for all flights comprising the continuous journey.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 7, c. 7 (2nd Supp.), s. 5, c. 12 (4th Supp.), s. 4;
1990, c. 45, s. 4;
1994, c. 29, s. 4;
1998, c. 21, s. 86.
When and by whom tax payableThe tax on each amount paid or payable in Canada for transportation of a person by air is payableat the time when the amount is so paid or becomes payable and in any case prior to the provision of the transportation; andby the person making the payment.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 12;
1976-77, c. 15, s. 3.
Employees of foreign countryThis Part does not apply in the case of any amount paid for transportation by air of a person described in section 2 of Part II of Schedule III.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 13.
Amount deemed paid in CanadaWhere an amount is paid or payable outside Canada for the transportation of a person by airby transmission from within Canada to a place outside Canada, by means of telegraph or mail, of cash, cheque, postal telegram, money order or any similar draft to a ticket office, travel agency, air carrier or any representative of any of them,by delivery of the amount to an agency located within Canada for transmission to a ticket office, travel agency, air carrier or any representative of any of them located in any place outside Canada, orby any other arrangement with a person outside Canada for the benefit or convenience of a person in Canada,the amount shall, for the purposes of this Part, be deemed to be an amount paid or payable in Canada and not outside Canada.Charter flightsWhere an amount is paid or payable outside Canada for the charter of an aircraft for the transportation of a person by air and the transportation begins at a point in Canada, the amount shall, for the purposes of this Part, be deemed to be an amount paid or payable in Canada and not outside Canada.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 14.
Elimination of air transportation taxNo tax shall be imposed, levied or collected on any amount paid or payable for the transportation of a person by air thatin the case of tax imposed under subsection 10(1) or 12(1), begins after October 31, 1998; orin the case of tax imposed under subsection 10(2) or 12(2), does not include an emplanement of the person, within the meaning of subsection 13(2.1), before November 1, 1998.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1996, c. 20, s. 104;
1998, c. 21, s. 87.
LicencesDuty to apply for licenceSubject to this section, every certified air carrier, other than an air carrier that provides only air transportation that is exempt from the operation of this Part pursuant to paragraph 21(d), shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part.Granting of licenceThe Minister may grant a licence to any person applying therefor under subsection (1).CancellationThe Minister may cancel a licence issued under this Part if, in his opinion, it is no longer required for the purposes of this Part.ApplicationSubsection (1) applies only to a certified air carrier that provides air transportation before November 1, 1998.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 17;
R.S., 1985, c. 7 (2nd Supp.), s. 6;
1996, c. 20, s. 105;
1998, c. 21, s. 88.
Collection of TaxDuty of licensed air carrierEvery licensed air carrier is an agent of the Minister and as such shall, as provided in this section,levy and collect any taxes imposed by this Part for the transportation of a person by air; andmake adjustments in or refund any portion of the tax paid on the transportation of a person by air that has not been provided or only partially provided or any tax that has been collected in error by the licensed air carrier.Collection of taxThe tax imposed by this Part on each amount paid or payable in Canada for transportation of a person by air shall be collected by the licensed air carrier to whom payment for the transportation is made or is owing.IdemThe tax imposed by this Part on each amount paid or payable outside Canada for transportation of a person by air that is payable by the person at the time when he emplanes on an aircraft at an airport in Canada shall be collected by the licensed air carrier on whose aircraft the person emplanes, in this subsection referred to as the “emplaning air carrier”, except where the air transportation tax has been paid before that time to a licensed air carrier or his agent and evidence of the prepayment of tax is submitted by the person to the emplaning air carrier in a manner and form prescribed by regulation of the Governor in Council.IdemIn the case of tax imposed by this Part on any amount paid or payable in Canada for transportation of a person by air, where the transportation of a person by air is being provided by several air carriers, one or more of whom are licensed, the tax, where applicable, shall be collected by the licensed air carrier who sells the transportation by air or, if the transportation is not sold by a licensed air carrier, by the first licensed air carrier who provides any part of the transportation.Adjustments and refunds where tax reduced for continuous journeyWhere tax has been reduced pursuant to subsection 13.1(1) in respect of two or more amounts paid or payable at the same time for transportation of a person by air on a continuous journey, no adjustment in or refund of all or any portion of the tax paid shall be made unless all of the tickets purchased at the same time for the transportation are cancelled at the same time.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 18;
R.S., 1985, c. 15 (1st Supp.), s. 8, c. 28 (3rd Supp.), s. 288.
Debt to Her MajestyEvery person who, being required by or pursuant to this Part to collect an air transportation tax, fails to do so as required is liable to Her Majesty for the amount of the tax and that amount is recoverable in the Federal Court or in any other court of competent jurisdiction as a debt due to Her Majesty.Persons deemed agentsA person who, not being a licensed air carrier, sells in Canada transportation of a person by air that is to be provided in whole or in part by a licensed air carrier is, in respect of the payment for that transportation and for the purposes of this Part, the agent of the first licensed air carrier who provides the transportation by air or any part thereof, as the case may be, and that person shall levy and collect on behalf of that licensed air carrier the taxes imposed by this Part and transmit them to the licensed air carrier.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 16;
R.S., c. 10(2nd Supp.), s. 64;
1974-75-76, c. 24, s. 5.
Penalty on Failure to File ReturnMonthly return of taxesEvery licensed air carrier that is required by this Part to collect tax shall make each month a true return, in the prescribed form and containing the prescribed information including statistical information relating to any tax not collected by the licensed air carrier during that period by reason of the prepayment thereof, ofall amounts collected or collectible by the carrier by way of the tax imposed by this Part in the last preceding month; andall amounts collected, within or outside Canada by the carrier or the carrier’s agent in the last preceding month,by way of the tax imposed by this Part on amounts paid or payable outside Canada for the transportation of a person by air, andbefore the time that the person is required by subsection 10(2) or 12(2), as the case may be, to pay the tax.Nil returnEvery licensed air carrier shall, if no amounts have been collected or are collectible as described in subsection (1) in the last preceding month, make a return as required by that subsection stating that fact.Cessation of obligationNo return is required under subsection (2) if the last preceding month is a month after October 31, 1998.Alternate periods for making returnsNotwithstanding subsections (1) and (2), the Minister may, by regulation,authorize any licensed air carrier to make a return in respect of any accounting period of not less than twenty-one days and not more than thirty-five days;authorize any licensed air carrier to make a return in respect of any period longer than one month but not longer than six months, if the amounts collected or collectible by the carrier by way of the tax imposed by this Part in the last preceding calendar year did not exceed four thousand eight hundred dollars; orauthorize any licensed air carrier whose passenger air transportation service is predominantly limited to a seasonal period of operation to make a return in respect of any period longer than one month but not longer than six months, if the amounts collected or collectible by the carrier by way of the tax imposed by this Part in the equivalent period in the last preceding calendar year did not exceed an average of four hundred dollars per month throughout that equivalent period.Date for filing and remittanceSubject to subsection (8) and sections 20.1 and 79.2, the return required by this section shall be filed and the taxes that are collected or collectible by a licensed air carrier shall be remittedin a case where the return is required to be made in accordance with subsection (1) or (2), not later than the last day of the first month following the month to which the return relates;in a case where the return is authorized to be made in accordance with a regulation made under paragraph (3)(a), not later than the last day of the first authorized accounting period following the end of the accounting period to which the return relates; andin a case where the return is authorized to be made in accordance with a regulation made under paragraph (3)(b) or (c), not later than the last day of the first month following the end of the period to which the return relates.Penalty and interest on default in remitting taxesSubject to subsections (6) to (9), a licensed air carrier that defaults in remitting tax within the time prescribed by subsection (4), in addition to the amount in default, shall payin the case of tax required to be remitted not later than the last day of a month, a penalty of one-half of one per cent and interest at the prescribed rate, in respect of each month or fraction of a month between that day and the day on which the total tax, penalty and interest outstanding is remitted, calculated on the total tax, penalty and interest outstanding in that month or fraction of a month; andin the case of tax required to be remitted not later than the last day of an accounting period, a penalty of one-half of one per cent and interest at the prescribed rate, in respect of each accounting period or fraction of an accounting period between that day and the day on which the total tax, penalty and interest outstanding is remitted, calculated on the total tax, penalty and interest outstanding in that accounting period or fraction of an accounting period.Minimum penalty and interestNo penalty or interest is payable under subsection (5) if the licensed air carrier remits all taxes collected or collectible by the carrier under this Part and, at the time of the remittance, the total penalty and interest payable is less than ten dollars.Time for paying penalty or interestA licensed air carrier that is liable to pay penalty or interest under subsection (5) shall pay the penalty or interest not later than the last day of the month or accounting period in respect of which the penalty or interest was calculated.ExtensionThe Minister may, before or after the expiration of the time prescribed by subsection (4), extend in writing the time for filing a return or remitting any tax, and where the Minister so extends the time,the return shall be filed or the tax shall be remitted within the time as so extended;interest accrues under subsection (5) in respect of the tax as if the time had not been so extended;no penalty accrues or shall be deemed to have accrued under subsection (5) in respect of the tax before the expiration of the time as so extended; andpenalty accrues under subsection (5) in respect of a default in remitting the tax or any portion thereof within the time as so extended as if the default were a default referred to in that subsection.SecurityWhere the Minister holds security under section 80.1 for the remittance of any tax under this Part that is not remitted within the time prescribed by subsection (4),interest accrues under subsection (5) in respect of the tax from the expiration of that time; andpenalty accrues under subsection (5) only if the total tax, penalty and interest outstanding, as calculated in respect of each month or accounting period or fraction of a month or accounting period during which the default continues, exceeds the value of the security at the time it is accepted by the Minister and, if accruing, the penalty shall be calculated only on the amount of the excess.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 20;
R.S., 1985, c. 15 (1st Supp.), s. 9, c. 7 (2nd Supp.), s. 7, c. 12 (4th Supp.), s. 5;
1996, c. 20, s. 106;
1998, c. 21, s. 89.
InterpretationFor the purposes of this section,a licensed air carrier’s “instalment base”for a month is the lesser ofthe tax imposed by this Part that was collected or collectible by that carrier in that month, andthe tax so collected or collectible in the last preceding month,for an accounting period is the lesser ofthe tax imposed by this Part that was collected or collectible by that carrier in that accounting period, andthe tax so collected or collectible in the last preceding accounting period, andfor any other period to which a return relates is the lesser ofthe tax imposed by this Part that was collected or collectible by that carrier in that period, andthe tax so collected or collectible in the last preceding period multiplied by the ratio that the number of days in the period to which the return relates is to the number of days in the last preceding period; anda licensed air carrier is a “large taxpayer” at any particular time ifthe aggregate amount of taxes payable under Parts II.1, III, IV and VI, other than taxes payable in accordance with the Customs Act, and collected or collectible under this Part and Part II.2 by that licensed air carrier in the last preceding calendar year ending at least ninety days, or ninety-one days where that time falls in a leap year, before that time exceeded twelve million dollars, orthe licensed air carrierwas, at any time in the last preceding calendar year ending at least ninety days, or ninety-one days where that time falls in a leap year, before that time, a member of a group of associated corporations (within the meaning of section 256 of the Income Tax Act) and the aggregate amount of taxes payable under Parts II.1, III, IV and VI, other than taxes payable in accordance with the Customs Act, and collected or collectible under this Part and Part II.2 by the group in that year exceeded twelve million dollars, andis not, at that time, authorized to make a return in accordance with a regulation made under paragraph 20(3)(b) or (c).Instalment payments by large taxpayersA large taxpayer that is required to file a return and remit tax within the time prescribed by subsection 20(4) shall pay instalments on account of the tax in accordance with the following rules:in the case where the return is required to be made in accordance with subsection 20(1), the large taxpayer shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the month in which the tax was collected or became collectible, the first to be paid not later than the last day of that month and the second not later than the fifteenth day of the next following month; andin the case where the return is authorized to be made in accordance with a regulation made under paragraph 20(3)(a), the large taxpayer shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the accounting period to which the return relates, the first to be paid not later than the last day of that accounting period and the second not later than the fifteenth day of the next following accounting period.Instalment payments by other licensed air carriersA licensed air carrier, other than a large taxpayer, that is required to file a return and remit tax within the time prescribed by subsection 20(4) shall pay an instalment on account of the tax in accordance with the following rules:in the case where the return is required to be made in accordance with subsection 20(1), the carrier shall pay an instalment, equal to the carrier’s instalment base for the month in which the tax was collected or became collectible, not later than the twenty-first day of the next following month;in the case where the return is authorized to be made in accordance with a regulation made under paragraph 20(3)(a), the carrier shall pay an instalment, equal to the carrier’s instalment base for the accounting period to which the return relates, not later than the twenty-first day of the next following accounting period; andin the case where the return is authorized to be made in accordance with a regulation made under paragraph 20(3)(b) or (c), the carrier shall pay an instalment, equal to the carrier’s instalment base for the period to which the return relates, not later than the twenty-first day of the month next following the end of that period.Penalty and interest on default by large taxpayer in paying instalmentSubject to subsections (6) to (8), a large taxpayer that defaults in paying an instalment within the time prescribed by subsection (2) shall, in addition to the amount in default, pay in respect of the period between the end of that time and the end of the time prescribed for remittance of the tax on account of which the instalment was payablein the case of an instalment required to be paid not later than the last day of a month or an accounting period, a penalty of one-half of one per cent and interest at the prescribed rate, calculated on the amount by whichone-half of the taxpayer’s instalment base for that month or accounting periodexceedsthe aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day; andin the case of an instalment required to be paid not later than the fifteenth day of a month or an accounting period, a penalty of one-quarter of one per cent and interest at one-half of the prescribed rate, calculated on the amount by whichone-half of the taxpayer’s instalment base for the last preceding month or accounting periodexceedsthe amount by which the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day exceeds the lesser ofthe aggregate of all taxes on account of which the instalment was payable that were remitted not later than the last day of the last preceding month or accounting period, andone-half of the taxpayer’s instalment base for the last preceding month or accounting period.Penalty and interest on default by other licensed air carriers in paying instalmentSubject to subsections (6) to (8), a licensed air carrier that defaults in paying an instalment within the time prescribed by subsection (3) shall, in addition to the amount in default, pay in respect of the period between the end of that time and the end of the time prescribed for remittance of the tax on account of which the instalment was payablein the case of an instalment required by paragraph (3)(a) or (b) to be paid not later than the twenty-first day of a month or an accounting period, a penalty of one-sixth of one per cent and interest at one-third of the prescribed rate, calculated on the amount by whichthe carrier’s instalment base for the last preceding month or accounting periodexceedsthe aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day; andin the case of an instalment required by paragraph (3)(c) to be paid not later than the twenty-first day of a month next following the end of a period, a penalty of one-sixth of one per cent and interest of one-third of the prescribed rate, calculated on the amount by whichthe carrier’s instalment base for that periodexceedsthe aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day.Minimum penalty and interestNo penalty or interest is payable under subsection (4) or (5) if the large taxpayer or other licensed air carrier liable to pay the instalment remits all taxes collected or collectible by the taxpayer or carrier under this Part and, at the time of the remittance, the total penalty and interest payable in respect of the instalment is less than five dollars and in respect of all those taxes is less than ten dollars.Time for paying penalty or interestA large taxpayer or other licensed air carrier that is liable to pay penalty or interest under subsection (4) or (5) in respect of a default in paying an instalment shall pay the penalty or interest within the time prescribed by subsection 20(4) for the remittance of the tax on account of which the instalment is payable.ExtensionThe Minister may, before or after the expiration of the time prescribed by subsection (2) or (3), extend in writing the time for paying an instalment, for any period within the time prescribed by subsection 20(4) for the remittance of the tax on account of which the instalment is payable, and where the Minister so extends the timethe instalment shall be paid within the time as so extended;interest accrues under subsection (4) or (5), as the case may be, in respect of the instalment as if the time had not been so extended;no penalty accrues or shall be deemed to have accrued under subsection (4) or (5), as the case may be, in respect of the instalment before the expiration of the time as so extended; andpenalty accrues under subsection (4) or (5), as the case may be, in respect of a default in paying an instalment within the time as so extended as if the default were a default referred to in that subsection.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 5;
1999, c. 31, s. 247(F).
GeneralPrepaid amountsFor greater certainty, amounts collected as described in paragraph 20(1)(b) shall be deemed to be sums payable under this Act.Records and books of accountEach licensed air carrier that is required to make a return of the amounts described in paragraph 20(1)(b) shall keep records and books of account in such form and containing such information as will enable the amount of tax or other sums that have been paid to or collected by the carrier or the carrier’s agent to be determined and, for the purposes of this subsection, subsections 98(2.01), (2.1) and (3) and 100(2) apply, with such modifications as the circumstances require, as if the records and books of account were required to be kept by the carrier pursuant to subsection 98(1).
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 6;
1998, c. 19, s. 276.
RegulationsThe Governor in Council may by regulationprescribe, for those cases where the amount charged for transportation by air includes the transportation of persons and goods by air, the manner in which and by whom the amount charged shall be apportioned between the transportation by air of those persons and the transportation by air of those goods, for the purposes of the tax imposed under sections 10 to 12;prescribe, for those cases where the amount charged for transportation of a person by air provides him with transportation and other services or goods, the manner in which and by whom the amount charged shall be apportioned between the transportation by air of that person and the provision of the other services and goods, for the purposes of the tax imposed under sections 10 to 12;prescribe the manner and form in which and the class of persons to whom evidence of prepayment of any tax imposed under this Part shall be submitted;prescribe the manner and form in which evidence of an amount paid or payable for transportation of a person by air shall be submitted;exempt from the operation of this Part the transportation of a person by air on any classes or groups of air services, air carriers or aircraft;reduce the amount of the tax paid or payable in Canada under this Part in respect of transportation of a person by air, or remove that tax, for the reduction or avoidance of double taxation by Canada and a foreign country in respect of that transportation;vary the requirements of section 20 with respect to returns and the time of remitting for licensed air carriers who are authorized by the Canadian Transportation Agency to operate international charter flights from Canada, or exempt those carriers from the provisions of that section with respect to returns, subject to such terms and conditions as the Governor in Council considers to be in the public interest;prescribe, in cases where an air carrier provides transportation of a person by air on credit, the time when and the place where the amount payable for that transportation is deemed to be paid or payable for the purposes of this Part; andprovide generally for the carrying out of the provisions of this Part.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 21;
R.S., 1985, c. 15 (1st Supp.), s. 10, c. 28 (3rd Supp.), s. 289;
1996, c. 10, s. 226.
TELECOMMUNICATION PROGRAMMING SERVICES TAXInterpretationDefinitionsIn this Part,amount chargedmontant exigéamount charged, in respect of a taxable service, means any amount paid or payable by a person for the taxable service, before any amount paid or payable in respect of any tax under this Part or imposed under an Act of the legislature of a province respecting retail sales tax is added thereto;broadcastingradiodiffusionbroadcasting means any radiocommunication in which the transmissions are intended for direct reception by the general public;licenseetitulaire de licence ou titulairelicensee means any person to whom a licence has been issued under section 21.18 and includes any person who is required by section 21.17 to apply for a licence;programming serviceservice de programmationprogramming service means any presentation of sound or visual matter of a nature or kind broadcast by radio or television stations that is designed to inform, enlighten or entertain;small undertakingentreprise restreintesmall undertaking meansa person who provides a taxable service exclusively in a place to which admission is granted to persons for the purpose of the presentation to those persons of a programming service by means of telecommunication on payment of a charge or fee through the sale of a ticket or any similar means of admission, ora person who, in any month, provides a taxable service to not more than two hundred persons, but does not include a person who, in any month in the year preceding that month, has provided a taxable service to more than two hundred persons;taxable serviceservice taxabletaxable service meansthe provision, by means of telecommunication, to the general public or any portion thereof, of any programming service,the commencement or cessation of the provision of a programming service referred to in paragraph (a),the provision of any instrument, device, equipment or apparatus or any part thereof, other than a television receiver, that isused in conjunction with the reception of a programming service referred to in paragraph (a), andprovided by the person providing the programming service or by any person authorized or designated by him for the purpose or acting on his behalf or by any person related to him,if the person providing the programming service requires that the instrument, device, equipment, apparatus or part be acquired exclusively from him or any other person referred to in subparagraph (ii), andthe installation, disconnection, replacement, repair or maintenance of any instrument, device, equipment or apparatus or any part thereof, other than a television receiver, referred to in paragraph (c), by the person providing the programming service in conjunction with which it is being used or by any other person referred to in subparagraph (c)(ii),but does not includeany surveillance or monitoring service, telebanking or teleshopping service or opinion-polling service,any background music service of a nature or kind that is provided in a shopping centre, an office building, a factory or a common area of a condominium or of an apartment building as an accompaniment to shopping, dining, working or other similar activities carried on in such place, orany other service prescribed by regulations made pursuant to section 21.2,that a person providing a programming service referred to in paragraph (a) provides for an additional fee or charge on the request of the person to whom the programming service is provided or that is provided by a person who does not provide a programming service referred to in paragraph (a);telecommunication[Repealed, R.S., 1985, c. 12 (4th Supp.), s. 7][Repealed, R.S., 1985, c. 12 (4th Supp.), s. 7]Small undertaking resident in CanadaFor the purposes of this Part, subsections 250(3) and (4) of the Income Tax Act apply in respect of the interpretation of the expression “small undertaking resident in Canada”.PresumptionFor the purposes of this Part, where a small undertaking within the meaning of paragraph (a) of the definition small undertaking in subsection (1) acquires a taxable service from a person, other than a licensee or a small undertaking resident in Canada, and provides the taxable service to other persons for amounts charged, the aggregate of the amounts charged is deemedto be equal to the amount charged by the person from whom the small undertaking acquired the service; andto have been paid at the end of the month in which the service was acquired from the person referred to in paragraph (a).ComputationFor the purposes of paragraph (b) of the definition small undertaking in subsection (1), the number of persons to whom a person provides a taxable service in a month shall be computed as the aggregate of the number ofpersons, in this subsection referred to as “customers”, to whom he, or a person related to him, provides the service in that month for an amount charged; andpersons to whom customers provide the service in that month, whether or not for an amount charged.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 11, c. 12 (4th Supp.), s. 7.
Application to CrownBinding on the CrownThis Part binds Her Majesty in right of Canada or a province.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 11.
Imposition and Payment of TaxImposition of taxThere shall be imposed, levied and collected a tax at the rate of eleven per cent on the amount charged for a taxable service, payable by the person providing the service at the time the amount charged is paid or payable, whichever is the earlier.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 11, c. 7 (2nd Supp.), s. 8, c. 42 (2nd Supp.), s. 2, c. 12 (4th Supp.), s. 8;
1989, c. 22, s. 2.
Relief from tax for licenseeNo tax is payable under section 21.12 in respect of a taxable service provided to a licenseewho,in the case of a service described in paragraph (a), (b), (c) or (d) of the definition “taxable service” in subsection 21.1(1), is acquiring the service for broadcasting without charge or for provision to another person for an amount charged or broadcasting without charge, orin the case of a service described in paragraph (b), (c) or (d) of that definition, is acquiring the service for use in conjunction with a service referred to in subparagraph (i) that is acquired by the licensee for a use described in that subparagraph; andwho, at the time the amount charged for the service is paid or payable, whichever is the earlier, so certifies, and gives his licence number, to the person providing the service.Relief from tax for other personsNo tax is payable under section 21.12 in respect of a taxable service provided to a person, other than a licensee,who,in the case of a service described in paragraph (a) of the definition “taxable service” in subsection 21.1(1), is acquiring the service for broadcasting without charge or for provision to another person for broadcasting without charge, orin the case of a service described in paragraph (b), (c) or (d) of that definition, is acquiring the service for use in conjunction with a service referred to in subparagraph (i) that is acquired by the licensee for a use described in that subparagraph; andwho, at the time the amount charged for the service is paid or payable, whichever is the earlier, so certifies to the person providing the service.Relief from tax for small undertakingNo tax is payable under section 21.12 in respect of a taxable service provided by a small undertaking, other than a taxable service thatis provided by a small undertaking within the meaning of paragraph (a) of the definition “small undertaking” in subsection 21.1(1); andwas acquired by the small undertaking from another person, other than a licensee or a small undertaking resident in Canada.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 11.
Determination of Amount Charged in Certain CircumstancesWhere service provided to non-arm’s length personWhere a licensee has provided a taxable service to a person with whom the licensee was not dealing at arm’s length at the time of the provision for no amount charged or for an amount charged that was less than the amount charged (in this subsection referred to as the “reasonable charge”) that would have been reasonable in the circumstances if the service had been provided to a person with whom the licensee was dealing at arm’s length, for the purposes of this Part, the licensee shall be deemed to have provided the taxable service to that person for an amount charged equal to the reasonable charge for the service and, where there was no amount charged, the amount charged shall be deemed to be payable at the end of the month in which the service was provided.Where service provided under certain circumstancesSubject to subsection (1), where a licensee has provided a taxable service to a person and the amount charged for the service cannot be ascertained, for the purposes of this Part, the licensee shall be deemed to have provided the taxable service to that person for an amount charged equal to the amount that is reasonable in the circumstances.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 11, c. 12 (4th Supp.), s. 9.
SecuritySecurityA small undertaking that proposes to provide a taxable service in respect of which tax is or will be imposed by section 21.12 shall, if required by the Minister, provide security in accordance with subsection (2) for payment of the tax.Amount and form of securityThe security to be provided by a small undertaking pursuant to subsection (1) shallbe provided within the time fixed by the Minister, but not later than the day immediately preceding the day on which provision of the taxable service commences;be in an amount of not less than six per cent ofthe aggregate of the amounts charged for that taxable service by the person from whom the small undertaking acquired the service, orwhere the aggregate of the amounts charged for that taxable service by the person from whom the small undertaking acquired the service cannot be determined prior to the commencement of the service by the small undertaking, the aggregate of the amounts that, in accordance with the agreement between the small undertaking and that other person, are paid or payable by the small undertaking for the service, computed as of seven days prior to the commencement of the service or such later day as may be fixed by the Minister; andbe provided by a chartered bank or by depositing with the Ministera bond, acceptable to the Minister, of an incorporated guarantee company authorized to do business in Canada, ora bond or other security of or guaranteed by the Government of Canada.Cancellation of bondNotwithstanding that a bond of a guarantee company given under this section has been cancelled, the bond shall be deemed to remain in force in relation to taxable services provided or to be provided for an amount charged at the time of cancellation until all liabilities to pay amounts on account of tax, penalties, interest or other amounts in relation to such taxable services are discharged.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 11.
DiversionsDiversionsWhere, pursuant to subsection 21.13(1) or (2), a taxable service is relieved from tax by reason of the use for which the service is acquired, in this section referred to as the “relieved use”, and that service is subsequently divertedby the person who acquired the service for the relieved use, orwhere the person referred to in paragraph (a) acquired the service for provision to another person for broadcasting without charge, by that other person,to any other use or purpose in respect of which the service would not, at the time of the acquisition of the service for the relieved use, be so relieved, the person who diverted the service and the person who provided the service to him are, from the time of the diversion, jointly and severally liable to pay tax under this Part in respect of the amount charged for the service.Tax payableThe tax payable pursuant to subsection (1) is payable at the time the service is diverted and shall be computed as the amount of tax that would have been payable at the time of the acquisition of the service for the relieved use had the service not been so relieved.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 11.
LicencesApplication for licenceSubject to this section, every person who is providing a taxable service for an amount charged on the coming into force of this Part shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which this Part comes into force.IdemSubject to this section, every person who commences to provide, on or after the coming into force of this Part, a taxable service for an amount charged shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which that person commences to provide the service.ExemptionSubsections (1) and (2) do not apply to a small undertaking.Exemption liftedEvery person providing a taxable service for an amount charged who ceases to be a small undertaking shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which that person ceases to be a small undertaking.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 11, c. 7 (2nd Supp.), s. 9.
Issue of licenceThe Minister may issue a licence for the purposes of this Part to any person applying therefor under section 21.17.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 11.
CancellationThe Minister may cancel a licence issued under section 21.18 if, in the Minister’s opinion, it is no longer required for the purposes of this Part.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 11.
RegulationsRegulationsThe Governor in Council may make regulationsprescribing, for the purposes of paragraph (g) of the definition taxable service in subsection 21.1(1), any service other than a programming service referred to in paragraph (a) of that definition;respecting the method for determining the reasonable amount charged for a taxable service for the purposes of section 21.14; andgenerally for carrying out the purposes and provisions of this Part.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 11, c. 12 (4th Supp.), s. 10.
Increase of Amount Charged by LicenseeOverride of other lawsA licensee may,notwithstanding the Broadcasting Act or any other Act of Parliament or any regulation or other statutory instrument made thereunder or any other law, andnotwithstandingany decision or order made, or any licence or renewal of a licence issued, by the Canadian Radio-television and Telecommunications Commission, orany other act or thing given, done or issued pursuant to the Broadcasting Act or any other Act of Parliament or any other law,before or after the coming into force of this Part,increase the amount charged for a taxable service by an amount not exceeding the tax payable by him under this Part with respect to that service.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 11.
TELECOMMUNICATION SERVICES TAXInterpretationDefinitionsIn this Part,amount chargedmontant exigéamount charged, in respect of a service, means any amount paid or payable by a person for the service, before any amount paid or payable in respect of any tax under this Part or imposed under an Act of the legislature of a province respecting retail sales tax is added thereto;approved tarifftarif agrééapproved tariff, in respect of a licensee, means a current schedule or tariff that sets out or otherwise provides for amounts that may be charged by the licensee for any service and that is approved bythe Canadian Radio-television and Telecommunications Commission,the lieutenant governor in council of a province,a commission, board, tribunal, authority or other body established by or pursuant to an Act of the legislature of a province to regulate telecommunications,a person designated by the lieutenant governor in council of a province to regulate telecommunications, ora municipal or local commission, board, tribunal, authority or other body that regulates telecommunications in a municipality;licenseetitulaire de licence ou titulairelicensee means any person to whom a licence has been issued under subsection 21.3(2) and includes any person who is required by subsection 21.3(1) to apply for a licence;separate chargeredevance distincteseparate charge, in respect of a service provided by a person, means an amount charged for the serviceas set out separately in a contract entered into by that person and the person charged for the service or in an invoice, bill, statement of account or other similar document issued or made available by that person to the person charged for the service, orif no such contract was so entered into and document was so issued or made available and the person providing the service is a licensee, as set out or provided for separately in an approved tariff of the licensee;taxable serviceservice taxabletaxable service meansany telecommunication service,the commencement or cessation of a telecommunication service,the provision of any instrument, device, equipment or apparatus or any part thereof, other than terminal equipment for the provision of which a separate charge is made, that isused in conjunction with a telecommunication service, andprovided by the person providing the telecommunication service or by any person authorized or designated by him for the purpose or acting on his behalf or by any person related to him,if the person providing the telecommunication service requires that the instrument, device, equipment, apparatus or part be acquired exclusively from him or any other person referred to in subparagraph (ii), andthe installation, disconnection, replacement, repair or maintenance of any instrument, device, equipment or apparatus or any part thereof referred to in paragraph (c) by the person providing the telecommunication service in conjunction with which it is being used or by any other person referred to in subparagraph (c)(ii),but does not include a taxable service within the meaning assigned by subsection 21.1(1);telecommunication serviceservice de télécommunicationtelecommunication service means the transmission of any information by means of a system for telecommunication or any part thereof and includes the making available of such a system or part for that use, whether or not it is so used, but does not includeany such service provided for taxi, messenger or other dispatch purposes, if the person providing the service uses, primarily for the person’s own dispatch purposes, the system or part thereof by means of which the service is provided,any such service provided to an occupant in a building or building complex by the owner or manager of the building or complex, ifthe system or part thereof by means of which the service is provided and that is controlled by the owner or manager is used exclusively to provide the service within the building or complex, andthe owner or manager provides the service exclusivelyby means of the system or part referred to in subparagraph (i),through the resale of service acquired from another person, orin the manner described in clauses (A) and (B), orthe provision, in conjunction with any such service, of a data processing, data storage, information or other service (in this paragraph referred to as the “additional service”) by means of telecommunication for a separate charge, ifthe service in conjunction with which the additional service is provided is offered separately from the additional service, andthe additional service is, or could be, lawfully provided by means of telecommunication by persons other than telecommunications carriers;telecommunications carrierexploitant de télécommunicationtelecommunications carrier meansany person who, for an amount charged, provides telecommunication service to the general public, or any portion thereof, by means of a telecommunication system owned, or controlled, and operated by that person, andany person to whom a licence has been issued under section 21.18 or who is required by section 21.17 to apply for a licence for the purposes of Part II.1.PresumptionFor the purposes of the definitions telecommunication service and telecommunications carrier in subsection (1), a person who provides telecommunication service through the resale of telecommunication service acquired from another person shall be deemed not to control the system for telecommunication of that other person.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 11.
Application to CrownBinding on Her MajestyThis Part binds Her Majesty in right of Canada or a province.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 11.
Imposition of TaxImposition of taxThere shall be imposed, levied and collected a tax at the rate of eleven per cent on the amount charged for a taxable service acquired from a licensee, payable by the person charged for the service at the time the amount charged is paid or payable, whichever is the earlier.Tax on long distance calls from a pay telephoneNotwithstanding subsection (1), where long distance telephone service is acquired and paid for by means of a coin-operated telephone and the amount charged for the service exceeds fifty cents, the tax payable in respect of the service shall be calculated at the rate of five cents for every fifty cents or part thereof charged for the service in excess of twenty-four cents.Tax on paging serviceNotwithstanding subsection (1), where a paging service is acquired, the tax payable in respect of the service shall be calculated at the rate of thirty cents, in respect of each paging terminal device by means of which the service is acquired, for each month or fraction of a month in which the service is acquired.Tax on private international serviceNotwithstanding subsection (1), where telecommunication service between a place in Canada and a place outside Canada is provided by means of a telecommunication line, channel or other facility that is dedicated to the sole use of a person, the tax payable in respect of the service shall be calculated on the amount charged for the service only to the extent that the amount charged is for service provided in Canada.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 11;
1989, c. 22, s. 1.
Determination of Amount Charged in Certain CircumstancesWhere service acquired by licenseeWhere a licensee has provided a taxable service to itself for use in the administration or management of its business, for the purposes of this Part, the licensee shall be deemed to have acquired the taxable service from itself for an amount charged equal to fifty per cent of the amount charged that would have been reasonable in the circumstances if the service had been provided to a person with whom the licensee was dealing at arm’s length and the amount charged shall be deemed to be payable at the end of the month in which the service was provided.Where service acquired by non-arm’s length personWhere a licensee has provided a taxable service to a person with whom the licensee was not dealing at arm’s length at the time of the provision for no amount charged or for an amount charged that was less than the amount charged (in this subsection referred to as the “reasonable charge”) that would have been reasonable in the circumstances if the service had been provided to a person with whom the licensee was dealing at arm’s length, for the purposes of this Part, that person shall be deemed to have acquired the taxable service from the licensee for an amount charged equal to the reasonable charge for the service and, where there was no amount charged, the amount charged shall be deemed to be payable at the end of the month in which the service was provided.Where service acquired under certain circumstancesSubject to subsection (2), where a licensee has provided a taxable service to a person and the amount charged for the service cannot be ascertained, for the purposes of this Part, that person shall be deemed to have acquired the taxable service from the licensee for an amount charged equal to the amount that is reasonable in the circumstances.Reasonable charge where approved tariffWhere the amount that may be charged for a taxable service provided by a licensee was set out or provided for separately in an approved tariff of the licensee at the time of the provision, the amount as so set out or provided for shall be deemed to befor the purposes of subsections (1) and (2), the amount charged that would have been reasonable in the circumstances; andfor the purposes of subsection (3), the amount that is reasonable in the circumstances.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 11.
Relief from TaxRelief from tax for residential telephone serviceNo tax is payable under section 21.24 on any amount charged forthe provision, commencement or cessation of residential telephone service, other than the provision of long distance telephone service; orthe provision, installation, disconnection, replacement, repair or maintenance of any instrument, device, equipment or apparatus or any part thereof that is used in conjunction with residential telephone service.Relief from tax for pay telephone serviceNo tax is payable under section 21.24 on any amount charged for telephone service acquired and paid for by means of a coin-operated telephone, other than long distance telephone service for which the amount charged exceeds fifty cents.Relief from tax for international telecommunication serviceNo tax is payable under section 21.24 on any amount charged for any taxable service that is provided entirely outside Canada.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 11.
Relief from tax for diplomatsNo tax is payable under section 21.24 on any amount charged for a taxable service acquired by a person described in section 2 of Part II of Schedule III or by a member of the family of that person, if that member is not a Canadian citizen or a permanent resident of Canada.Relief from tax for international organizationsNo tax is payable under section 21.24 on any amount charged for a taxable service acquired by an organization in respect of which the Governor in Council has provided, by order made pursuant to subsection 4(1) of the Privileges and Immunities (International Organizations) Act, that the organization shall have the privileges and immunities set out in paragraph 7(a) of Schedule I to that Act.Relief from tax for foreign military forcesNo tax is payable under section 21.24 on any amount charged for a taxable service acquired by a government of a country designated by the Governor in Council pursuant to heading No. 98.10 of Schedule I to the Customs Tariff, or acquired by a Canadian government agency on behalf of such a government, if the amount charged relates to telecommunication originating or terminating at a military or defence establishment in Canada.Relief from tax for certain provincesNo tax is payable under section 21.24 on any amount charged for a taxable service acquired by Her Majesty in right of a province, other than a province in respect of which there is in force at the time that the service is acquired a reciprocal taxation agreement referred to in section 32 of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act.Relief from tax for IndiansNo tax is payable under section 21.24 on any amount charged for a taxable service acquired by an Indian or band within the meaning of subsection 2(1) of the Indian Act, if the amount charged is billed to the Indian or band at a reserve within the meaning of that subsection and relates to telecommunication originating or terminating at a reserve.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 11.
Relief from tax for licence holders under this PartNo tax is payable under section 21.24 on any amount charged for a taxable service acquired by a person to whom a licence has been issued under subsection 21.3(2) for provision to another person or for use directly in providing another taxable service, other than a paging service, to another person.Relief from tax for licence holders under Part II.1No tax is payable under section 21.24 on any amount charged for a taxable service acquired by a person to whom a licence has been issued under section 21.18 for use in providing, by means of telecommunication, a programming service within the meaning of subsection 21.1(1) to another person for an amount charged within the meaning of that subsection or in producing a programming service for such provision.Relief from tax for foreign telecommunications carriersSubject to subsection (4), no tax is payable under section 21.24 on any amount charged for a taxable service acquired, by a telecommunications carrier who provides telecommunication service solely outside Canada, for provision to another person outside Canada or for use directly in providing another taxable service to another person outside Canada.ExceptionSubsection (3) does not apply in respect of any telecommunication service between a place in Canada and a place outside Canada that is provided by means of a telecommunication line, channel or other facility that is dedicated to the sole use of a person.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 11.
DiversionsDiversionsWhere, pursuant to subsection 21.28(1) or (2), no tax is payable in respect of a taxable service by reason of the use for which the service is acquired (in this section referred to as the “relieved use”) and that service is subsequently diverted by the person acquiring it to any other use for which the service would not, at the time of the acquisition, have been so relieved, that person is liable to pay tax under this Part in respect of the amount charged that person for the service.Tax payableThe tax payable pursuant to subsection (1) is payable at the time the taxable service is diverted and shall be computed as the amount of tax that would have been payable at the time of the acquisition of the service for the relieved use had the service not been acquired for that use.PresumptionFor the purposes of sections 21.32 and 21.33, the tax payable pursuant to subsection (1) shall be deemed to be a tax imposed by this Part that was collected or collectible by the person at the time of the diversion.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 11.
LicencesApplication for licenceEvery telecommunications carrier who provides taxable services in Canada for an amount charged shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the first month, after December 31, 1987, in which that person so provides a taxable service.Issue of licenceThe Minister may issue a licence for the purposes of this Part to any person applying therefor under subsection (1).CancellationThe Minister may cancel a licence issued under subsection (2) if, in the Minister’s opinion, it is no longer required for the purposes of this Part.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 11.
Collection of TaxDuty of licenseeEvery licensee is an agent of the Minister for the purpose of collecting taxes under this Part and as such shalllevy and collect any taxes imposed by this Part on the amount charged for a taxable service acquired from the licensee;make adjustments in or refund any portion of the tax paid on the amount charged for a taxable service that has not been provided or has been only partially provided by the licensee; andmake adjustments in or refund any portion of any tax that has been collected in error by the licensee.Election by licence holder to pay tax directlyNotwithstanding subsection (1), where a person, other than a person who provides a paging service and no other taxable service, to whom a licence has been issued under subsection 21.3(2) acquires a taxable service from another licensee and the acquisition is not relieved from tax pursuant to subsection 21.28(1) or (2), that person may, in lieu of paying to that other licensee any tax payable on the amount charged for the taxable service, elect to pay the tax directly to the Receiver General.PresumptionFor the purposes of sections 21.32 and 21.33, where a person makes an election pursuant to subsection (2), the tax shall be deemed to be a tax imposed by this Part that was collected or collectible by that person at the time the tax became payable by that person.Debt due to Her MajestyEvery person who, being required by or pursuant to this Part to collect tax, fails to do so as required is liable to Her Majesty in right of Canada for the amount of the tax.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 11.
Returns and Remittance of TaxMonthly return of taxesEvery licensee shall make each month a true return, in the prescribed form and containing the prescribed information, of all amounts collected or collectible by the licensee by way of the tax imposed by this Part in the last preceding month.Nil returnEvery licensee shall, if no amounts were collected or collectible by the licensee by way of the tax imposed by this Part in the last preceding month, make a return as required by subsection (1) stating that fact.Alternate periods for making returnsNotwithstanding subsections (1) and (2), the Minister may, by regulation,authorize any licensee to make a return in respect of any accounting period of not less than twenty-one days and not more than thirty-five days;authorize any licensee to make a return in respect of any period longer than one month but not longer than six months, if the amounts collected or collectible by the licensee by way of the tax imposed by this Part in the last preceding calendar year did not exceed four thousand eight hundred dollars; orauthorize any licensee whose taxable services are predominantly limited to a seasonal period of operation to make a return in respect of any period longer than one month but not longer than six months, if the amounts collected or collectible by the licensee by way of the tax imposed by this Part in the equivalent period in the last preceding calendar year did not exceed an average of four hundred dollars per month throughout that equivalent period.Date for filing and remittanceSubject to subsection (8) and sections 21.33 and 79.2, the return required by this section shall be filed and the taxes on amounts charged for taxable services that are collected or collectible by a licensee shall be remittedin a case where the return is required to be made in accordance with subsection (1) or (2), not later than the last day of the first month succeeding that in which the amounts charged for the taxable service were paid or became payable to the licensee;in a case where the return is authorized to be made in accordance with a regulation made under paragraph (3)(a), not later than the last day of the first authorized accounting period following the end of the accounting period to which the return relates; andin a case where the return is authorized to be made in accordance with a regulation made under paragraph (3)(b) or (c), not later than the last day of the first month following the end of the period to which the return relates.Penalty and interest on default in remitting taxesSubject to subsections (6) to (9), a licensee who defaults in remitting tax within the time prescribed by subsection (4), in addition to the amount in default, shall payin the case of tax required to be remitted not later than the last day of a month, a penalty of one-half of one per cent and interest at the prescribed rate, in respect of each month or fraction of a month between that day and the day on which the total tax, penalty and interest outstanding is remitted, calculated on the total tax, penalty and interest outstanding in that month or fraction of a month; andin the case of tax required to be remitted not later than the last day of an accounting period, a penalty of one-half of one per cent and interest at the prescribed rate, in respect of each accounting period or fraction of an accounting period between that day and the day on which the total tax, penalty and interest outstanding is remitted, calculated on the total tax, penalty and interest outstanding in that accounting period or fraction of an accounting period.Minimum penalty and interestNo penalty or interest is payable under subsection (5) if the licensee remits all taxes collected or collectible by the licensee under this Part and, at the time of the remittance, the total penalty and interest payable is less than ten dollars.Time for paying penalty or interestA licensee who is liable to pay penalty or interest under subsection (5) shall pay the penalty or interest not later than the last day of the month or accounting period in respect of which the penalty or interest was calculated.ExtensionThe Minister may, before or after the expiration of the time prescribed by subsection (4), extend in writing the time for filing a return or remitting any tax, and where the Minister so extends the time,the return shall be filed or the tax shall be remitted within the time as so extended;interest accrues under subsection (5) in respect of the tax as if the time had not been so extended;no penalty accrues or shall be deemed to have accrued under subsection (5) in respect of the tax before the expiration of the time as so extended; andpenalty accrues under subsection (5) in respect of a default in remitting the tax or any portion thereof within the time as so extended as if the default were a default referred to in that subsection.SecurityWhere the Minister holds security under section 80.1 for the remittance of any tax under this Part that is not remitted within the time prescribed by subsection (4),interest accrues under subsection (5) in respect of the tax from the expiration of that time; andpenalty accrues under subsection (5) only if the total tax, penalty and interest outstanding, as calculated in respect of each month or accounting period or fraction of a month or accounting period during which the default continues, exceeds the value of the security at the time it is accepted by the Minister and, if accruing, the penalty shall be calculated only on the amount of the excess.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 11.
InterpretationFor the purposes of this section,a licensee’s “instalment base”for a month is the lesser ofthe tax imposed by this Part that was collected or collectible by that licensee in that month, andthe tax so collected or collectible in the last preceding month,for an accounting period is the lesser ofthe tax imposed by this Part that was collected or collectible by that licensee in that accounting period, andthe tax so collected or collectible in the last preceding accounting period, andfor any other period to which a return relates is the lesser ofthe tax imposed by this Part that was collected or collectible by that licensee in that period, andthe tax so collected or collectible in the last preceding period multiplied by the ratio that the number of days in the period to which the return relates is to the number of days in the last preceding period; anda licensee is a “large taxpayer” at any particular time ifthe aggregate amount of taxes payable under Parts II.1, III, IV and VI, other than taxes payable in accordance with the Customs Act, and collected or collectible under Part II and this Part by that licensee in the last preceding calendar year ending at least ninety days, or ninety-one days where that time falls in a leap year, before that time exceeded twelve million dollars, orthe licenseewas, at any time in the last preceding calendar year ending at least ninety days, or ninety-one days where that time falls in a leap year, before that time, a member of a group of associated corporations (within the meaning of section 256 of the Income Tax Act) and the aggregate amount of taxes payable under Parts II.1, III, IV and VI, other than taxes payable in accordance with the Customs Act, and collected or collectible under Part II and this Part by the group in that year exceeded twelve million dollars, andis not, at that time, authorized to make a return in accordance with a regulation made under paragraph 21.32(3)(b) or (c).Instalment payments by large taxpayersA large taxpayer who is required to file a return and remit tax within the time prescribed by subsection 21.32(4) shall pay instalments on account of the tax in accordance with the following rules:in the case where the return is required to be made in accordance with subsection 21.32(1), the large taxpayer shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the month in which the tax was collected or became collectible, the first to be paid not later than the last day of that month and the second not later than the fifteenth day of the next following month; andin the case where the return is authorized to be made in accordance with a regulation made under paragraph 21.32(3)(a), the large taxpayer shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the accounting period to which the return relates, the first to be paid not later than the last day of that accounting period and the second not later than the fifteenth day of the next following accounting period.Instalment payments by other licenseesA licensee, other than a large taxpayer, who is required to file a return and remit tax within the time prescribed by subsection 21.32(4) shall pay an instalment on account of the tax in accordance with the following rules:in the case where the return is required to be made in accordance with subsection 21.32(1), the licensee shall pay an instalment, equal to the licensee’s instalment base for the month in which the tax was collected or became collectible, not later than the twenty-first day of the next following month;in the case where the return is authorized to be made in accordance with a regulation made under paragraph 21.32(3)(a), the licensee shall pay an instalment, equal to the licensee’s instalment base for the accounting period to which the return relates, not later than the twenty-first day of the next following accounting period; andin the case where the return is authorized to be made in accordance with a regulation made under paragraph 21.32(3)(b) or (c), the licensee shall pay an instalment, equal to the licensee’s instalment base for the period to which the return relates, not later than the twenty-first day of the month next following the end of that period.Penalty and interest on default by large taxpayer in paying instalmentSubject to subsections (6) to (8), a large taxpayer who defaults in paying an instalment within the time prescribed by subsection (2) shall, in addition to the amount in default, pay in respect of the period between the end of that time and the end of the time prescribed for remittance of the tax on account of which the instalment was payablein the case of an instalment required to be paid not later than the last day of a month or an accounting period, a penalty of one-half of one per cent and interest at the prescribed rate, calculated on the amount by whichone-half of the taxpayer’s instalment base for that month or accounting periodexceedsthe aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day; andin the case of an instalment required to be paid not later than the fifteenth day of a month or an accounting period, a penalty of one-quarter of one per cent and interest at one-half of the prescribed rate, calculated on the amount by whichone-half of the taxpayer’s instalment base for the last preceding month or accounting periodexceedsthe amount by which the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day exceeds the lesser ofthe aggregate of all taxes on account of which the instalment was payable that were remitted not later than the last day of the last preceding month or accounting period, andone-half of the taxpayer’s instalment base for the last preceding month or accounting period.Penalty and interest on default by other licensees in paying instalmentSubject to subsections (6) to (8), a licensee who defaults in paying an instalment within the time prescribed by subsection (3) shall, in addition to the amount in default, pay in respect of the period between the end of that time and the end of the time prescribed for remittance of the tax on account of which the instalment was payablein the case of an instalment required by paragraph (3)(a) or (b) to be paid not later than the twenty-first day of a month or an accounting period, a penalty of one-sixth of one per cent and interest at one-third of the prescribed rate, calculated on the amount by whichthe licensee’s instalment base for the last preceding month or accounting periodexceedsthe aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day; andin the case of an instalment required by paragraph (3)(c) to be paid not later than the twenty-first day of a month next following the end of a period, a penalty of one-sixth of one per cent and interest at one-third of the prescribed rate, calculated on the amount by whichthe licensee’s instalment base for that periodexceedsthe aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day.Minimum penalty and interestNo penalty or interest is payable under subsection (4) or (5) if the large taxpayer or other licensee liable to pay the instalment remits all taxes collected or collectible by the taxpayer or other licensee under this Part and, at the time of the remittance, the total penalty and interest payable in respect of the instalment is less than five dollars and in respect of all those taxes is less than ten dollars.Time for paying penalty or interestA large taxpayer or other licensee who is liable to pay penalty or interest under subsection (4) or (5) in respect of a default in paying an instalment shall pay the penalty or interest within the time prescribed by subsection 21.32(4) for the remittance of the tax on account of which the instalment is payable.ExtensionThe Minister may, before or after the expiration of the time prescribed by subsection (2) or (3), extend in writing the time for paying an instalment, for any period within the time prescribed by subsection 21.32(4) for the remittance of the tax on account of which the instalment is payable, and where the Minister so extends the timethe instalment shall be paid within the time as so extended;interest accrues under subsection (4) or (5), as the case may be, in respect of the instalment as if the time had not been so extended;no penalty accrues or shall be deemed to have accrued under subsection (4) or (5), as the case may be, in respect of the instalment before the expiration of the time as so extended; andpenalty accrues under subsection (4) or (5), as the case may be, in respect of a default in paying an instalment within the time as so extended as if the default were a default referred to in that subsection.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 11;
1999, c. 31, s. 247(F).
RegulationsRegulationsThe Governor in Council may make regulationsrespecting the method for determining the reasonable amount charged for a taxable service for the purposes of section 21.25; andgenerally for carrying out the purposes and provisions of this Part.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 11.
EXCISE TAXES ON COSMETICS, JEWELLERY, RADIOS, ETC.DefinitionsIn this Part,duty paid valuevaleur à l’acquittéduty paid value means the value of the article as it would be determined for the purpose of calculating an ad valorem duty on the importation of that article into Canada under the laws relating to the customs and the Customs Tariff whether that article is in fact subject to ad valorem or other duty or not, plus the amount of the customs duties, if any, payable thereon;licensed wholesalermarchand en gros titulaire de licencelicensed wholesaler has the meaning assigned to that expression by section 42;sale priceprix de ventesale price, for the purpose of determining the excise tax payable under this Part, means the aggregate ofthe amount charged as price before any amount payable in respect of any other tax under this Act is added thereto,any amount that the purchaser is liable to pay to the vendor by reason of or in respect of the sale in addition to the amount charged as price, whether payable at the same or any other time, including, without limiting the generality of the foregoing, any amount charged for, or to make provision for, advertising, financing, servicing, warranty, commission or any other matter, andthe amount of excise duties payable under the Excise Act whether the goods are sold in bond or not.Calculation of sale price and duty paid valueFor the purpose of determining the excise tax payable under this Partin calculating the sale price of goods manufactured or produced in Canada, there shall be included the amount charged as price for or in respect of the wrapper, package, box, bottle or other container in which the goods are contained; andin calculating the duty paid value of imported goods that, when imported, are wrapped, packaged, put up in boxes or bottles or otherwise prepared for sale, there shall be added to the value of the goods as determined in the manner prescribed in this Part the value, similarly determined, of the wrapper, package, box, bottle or other container in which the goods are contained.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 20;
1976-77, c. 6, s. 1.
Tax on various articles at schedule ratesSubject to subsections (6) to (8), whenever goods mentioned in Schedule I are imported or are manufactured or produced in Canada and delivered to a purchaser of those goods, there shall be imposed, levied and collected, in addition to any other duty or tax that may be payable under this or any other law, an excise tax in respect of the goods at the applicable rate set out in the applicable section of that Schedule, computed, if that rate is specified as a percentage, on the duty paid value or the sale price, as the case may be.By whom and when tax is payableWhere goods are imported, the excise tax imposed by subsection (1) shall be paid in accordance with the provisions of the Customs Act by the importer, owner or other person liable to pay duties under that Act, and where goods are manufactured or produced and sold in Canada, the excise tax shall be payable by the manufacturer or producer at the time of delivery of the goods to the purchaser thereof.Deemed sale and delivery to purchaserFor the purposes of subsection (2),where gasoline or diesel fuel is delivered to a retail outlet by or on behalf of the manufacturer or producer thereof, the gasoline or diesel fuel shall be deemed to have been sold and delivered to a purchaser thereof; andwhere gasoline, diesel fuel or aviation fuel was, immediately prior to March 1, 1987, held in inventory by or on behalf of a person described in paragraph (e) of the definition manufacturer or producer in subsection 2(1) as that subsection read immediately prior to March 1, 1987, who was a licensed manufacturer under this Act of gasoline, diesel fuel or aviation fuel solely by virtue of that paragraph, and the excise tax thereon had not been paid or become payable on or before February 28, 1987, the gasoline, diesel fuel or aviation fuel shall be deemed to have been sold and delivered to a purchaser thereof immediately prior to March 1, 1987.Deemed saleFor the purposes of this Part, a person who, under a contract for labour, manufactures or produces goods mentioned in Schedule I from any article or material supplied by another person, other than a manufacturer licensed for the purposes of this Part, for delivery to that other person is deemed to have sold the goods, at a sale price equal to the charge made under the contract in respect of the goods, at the time they are delivered to that other person.Tax on resale by licensed wholesaler of Schedule I goodsWhenever goods mentioned in Schedule I are sold by a licensed wholesaler or are retained for the licensed wholesaler’s own use or for rental by the licensed wholesaler to others, there shall be imposed, levied and collected, in addition to any other duty or tax payable under this Act or any other Act or law, an excise tax in respect of those goods at the applicable rate set out in the applicable section in that Schedule, computed, where that rate is specified as a percentage, on the duty paid value or the price at which the goods were purchased by the licensed wholesaler, as the case may be, payable by the licensed wholesaler at the time the goods are delivered to the purchaser or so retained for use or rental.[Repealed, 2002, c. 22, s. 367]When tax not payableThe tax imposed by subsection (1) is not payable in the case of goods mentioned in Schedule I that are purchased or imported by a licensed wholesaler for resale by him.When tax not payableThe tax imposed under subsection (1) is not payable in the case ofgoods that are purchased or imported by a manufacturer licensed for the purposes of this Part and that are to be incorporated into and form a constituent or component part of an article or product that is subject to excise tax under this Act, if the tax on the article or product has not yet been levied under this section; orthe sale of a new motor vehicle designed for highway use, or a chassis for such a vehicle, to a person described in paragraph (h) of the definition manufacturer or producer in subsection 2(1) who is a manufacturer licensed for the purposes of this Part.Tax not payableThe tax imposed under subsection (1) is not payable in the case ofgoods that are purchased or imported by a licensed wholesaler who is deemed by subsection 55(2) to be a bona fide wholesaler or jobber for resale by him;goods for which relief from the consumption or sales tax is provided by virtue of section 12 or 13 of Part III of Schedule III or section 1 of Part VII of Schedule III;goods imported into Canada and classified under tariff item No. 9804.30.00 of Schedule I to the Customs Tariff;manufactured tobacco imported into Canada by an individual for their personal use if it is stamped in accordance with the Excise Act and duty has been imposed on it under section 200 of that Act; ordiesel fuel for use in the generation of electricity, except where the electricity so generated is used primarily in the operation of a vehicle.[Repealed, 2002, c. 22, s. 367]Diversion to taxable sale or useWhere gasoline or aviation gasoline has been purchased by a person to whom a bulk permit has been issued under regulations made by the Governor in Council pursuant to subsection 59(3) for a use by such person that renders the purchase exempt from a portion of the tax imposed by this section equal to one and one-half cents per litre and that person sells the gasoline or aviation gasoline or uses it for a purpose for which it could not have been purchased by him exempt from such portion of the tax at the time he purchased it, the portion of the tax that would have been payable at the time he purchased it equal to one and one-half cents per litre of gasoline or aviation gasoline shall be payable by that person at the time he so sells or uses the gasoline or aviation gasoline.IdemWhere fuel other than aviation gasoline has been purchased or imported for a use for which the tax imposed under this Part on diesel fuel or aviation fuel is not payable and the purchaser or importer sells or appropriates the fuel for a purpose for which the fuel could not have been purchased or imported without payment of the tax at the time he purchased or imported it, the tax imposed under this Part on diesel fuel or aviation fuel shall be payable by the person who sells or appropriates the fuelwhere the fuel is sold, at the time of delivery to the purchaser; andwhere the fuel is appropriated, at the time of that appropriation.[Repealed, 2002, c. 22, s. 367]Appropriation by manufacturer or producerIf goods of any class mentioned in Schedule I that were manufactured or produced in Canada are appropriated by the manufacturer or producer for their own use, for the purposes of this Part,the goods shall be deemed to have been delivered to a purchaser thereof at the time of the appropriation; andthe sale price of the goods shall be deemed to be equal to the sale price that would have been reasonable in the circumstances if the goods had been sold at that time to a person with whom the manufacturer or producer was dealing at arm’s length.Person deemed manufacturer or producerWhere a person has, in Canada,put a clock or watch movement into a clock or watch case,put a clock or watch movement into a clock or watch case and added a strap, bracelet, brooch or other accessory thereto, orset or mounted one or more diamonds or other precious or semi-precious stones, real or imitation, in a ring, brooch or other article of jewellery,he shall, for the purposes of this Part, be deemed to have manufactured or produced the watch, clock, ring, brooch or other article of jewellery in Canada.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 23;
R.S., 1985, c. 15 (1st Supp.), s. 12, c. 1 (2nd Supp.), s. 187, c. 7 (2nd Supp.), s. 10, c. 12 (4th Supp.), s. 12;
1988, c. 65, s. 113;
1990, c. 45, s. 5;
1993, c. 25, s. 55;
1995, c. 41, s. 113;
2001, c. 15, s. 2, c. 16, s. 17;
2002, c. 22, s. 367.
DefinitionsThe definitions in this subsection apply in this section.fuelcombustiblefuel means gasoline, diesel fuel and aviation fuel.temperature compensated methodméthode fondée sur la compensation de la températuretemperature compensated method means the method involving the measurement of the volume of fuel in litres that are corrected to the reference temperature of 15 degrees Celsius in accordance with the requirements imposed by or under the Weights and Measures Act.uncompensated methodméthode traditionnelleuncompensated method means the method involving the measurement of the volume of fuel in litres that are not corrected to a reference temperature.Measurement of fuel volumeFor the purposes of determining the tax imposed under subsection 23(1) in respect of fuel, the volume of the fuel shall be measured in accordance withthe temperature compensated method, where that method is used by the manufacturer or producer of the fuel for the purpose of establishing the amount of fuel delivered and charged to the purchaser, or by the importer of the fuel to establish the amount of fuel imported; orthe uncompensated method, where that method is used by the manufacturer or producer of the fuel for the purpose of establishing the amount of fuel delivered and charged to the purchaser, or by the importer of the fuel to establish the amount of fuel imported.Measurement of fuel volume — licensed wholesalersFor the purposes of determining the tax imposed under subsection 23(4) in respect of fuel sold by a licensed wholesaler, the volume of the fuel shall be measured in accordance withthe temperature compensated method, where that method is used by the licensed wholesaler for the purpose of establishing the amount of fuel delivered and charged to the purchaser; orthe uncompensated method, where that method is used by the licensed wholesaler for the purpose of establishing the amount of fuel delivered and charged to the purchaser.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1997, c. 26, s. 87.
[Repealed, 2002, c. 22, s. 368]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 25, s. 56;
1994, c. 29, s. 5;
2001, c. 16, s. 18;
2002, c. 22, s. 368.
[Repealed, 2002, c. 22, s. 368]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2001, c. 16, s. 18;
2002, c. 22, ss. 368, 414, 429(F));
2003, c. 15, s. 55.
[Repealed, 2002, c. 22, s. 368]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2001, c. 16, s. 18;
2002, c. 22, ss. 368, 415;
2003, c. 15, s. 56.
[Repealed, 2002, c. 22, s. 368]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2001, c. 16, s. 18;
2002, c. 22, ss. 368, 416;
2003, c. 15, s. 57.
[Repealed, 2001, c. 16, s. 18]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 25, s. 56;
1994, c. 29, s. 5;
2001, c. 16, s. 18.
[Repealed, 2001, c. 16, s. 19]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 5;
1997, c. 26, s. 59;
2000, c. 30, s. 3;
2001, c. 16, s. 19.
[Repealed, 2001, c. 16, s. 20]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1997, c. 26, s. 60;
2001, c. 16, s. 20.
[Repealed, 2002, c. 22, s. 368]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 25, s. 56;
2001, c. 16, s. 21;
2002, c. 22, s. 368.
[Repealed, 2002, c. 22, s. 417]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 6;
1997, c. 26, s. 61;
2000, c. 30, s. 4;
2001, c. 16, s. 22;
2002, c. 22, s. 417.
[Repealed, 2002, c. 22, s. 417]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 6;
1997, c. 26, s. 62;
2000, c. 30, s. 5;
2001, c. 16, s. 23;
2002, c. 22, s. 417.
[Repealed, 2001, c. 16, s. 24]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 6;
1995, c. 36, s. 2;
1997, c. 26, s. 63;
2001, c. 16, s. 24.
[Repealed, 2001, c. 16, s. 24]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 6;
1995, c. 36, s. 3;
1997, c. 26, s. 64;
2000, c. 30, ss. 6, 140;
2001, c. 16, s. 24.
[Repealed, 2001, c. 16, s. 24]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1995, c. 36, s. 4;
1997, c. 26, s. 65;
1998, c. 21, s. 80;
2000, c. 30, s. 7;
2001, c. 16, s. 24.
[Repealed, 2002, c. 22, s. 417]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 6;
2000, c. 30, s. 8;
2001, c. 16, s. 25;
2002, c. 22, s. 417.
[Repealed, 2001, c. 16, s. 26]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 6;
1997, c. 26, s. 66;
2000, c. 30, s. 140;
2001, c. 16, s. 26.
[Repealed, 2007, c. 35, s. 8]Previous Version[Repealed, 2007, c. 35, s. 8]Previous VersionSecurity that true returns renderedFor the purposes of this Part, the Minister may require every manufacturer or producer to give security that they will render true returns of their sales as required by section 78 or by any regulations made under it and pay any tax imposed by this Act on the sales. The security shall be in an amount of not more than two hundred and fifty thousand dollars and not less than one thousand dollars and shall be by bond of a guarantee company authorized to do business in Canada, acceptable to the Government of Canada, or by deposit of Government of Canada bonds.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 24;
2002, c. 22, s. 369.
[Repealed, 2002, c. 22, s. 370][Repealed, 2002, c. 22, s. 370]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 25;
2002, c. 22, s. 370.
[Repealed, 1990, c. 45, s. 6]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 26;
R.S., 1985, c. 1 (2nd Supp.), s. 188;
1990, c. 45, s. 6.
[Repealed, 2002, c. 22, s. 370]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 27;
R.S., 1985, c. 7 (2nd Supp.), s. 11, c. 42 (2nd Supp.), s. 3;
1990, c. 45, s. 7;
2002, c. 22, s. 370.
[Repealed, 2002, c. 22, s. 370]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 28;
R.S., 1985, c. 1 (2nd Supp.), s. 189;
2002, c. 22, s. 370.
[Repealed, 2002, c. 22, s. 370]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 25, s. 57;
2002, c. 22, s. 370.
[Repealed, 2002, c. 22, s. 370][Repealed, 2002, c. 22, s. 370]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 29;
R.S., 1985, c. 15 (1st Supp.), s. 13, c. 7 (2nd Supp.), s. 12;
1991, c. 42, s. 1;
2002, c. 22, s. 370.
[Repealed, 2002, c. 22, s. 370]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 30;
R.S., 1985, c. 7 (2nd Supp.), s. 12;
1991, c. 42, s. 1;
2002, c. 22, s. 370.
[Repealed, 2002, c. 22, s. 370]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 31;
R.S., 1985, c. 7 (2nd Supp.), s. 12;
1991, c. 42, s. 1;
2002, c. 22, s. 370.
[Repealed, 2002, c. 22, s. 370]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 32;
R.S., 1985, c. 7 (2nd Supp.), s. 12;
1991, c. 42, s. 1;
2002, c. 22, s. 370.
[Repealed, 2002, c. 22, s. 370]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 33;
R.S., 1985, c. 7 (2nd Supp.), s. 12;
1991, c. 42, s. 1;
2002, c. 22, s. 370.
[Repealed, 2002, c. 22, s. 370]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 34;
R.S., 1985, c. 7 (2nd Supp.), s. 12;
1991, c. 42, s. 1;
2000, c. 30, s. 9(F);
2002, c. 22, s. 370.
[Repealed, 2000, c. 30, s. 10]CONSUMPTION OR SALES TAXInterpretationDefinitionsIn this Part,duty paid valuevaleur à l’acquittéduty paid value means the value of the article as it would be determined for the purpose of calculating an ad valorem duty on the importation of the article into Canada under the laws relating to the customs and the Customs Tariff whether the article is in fact subject to ad valorem or other duty or not, plus the amount of the customs duties, if any, payable thereon;licensed manufacturerfabricant titulaire de licencelicensed manufacturer means any manufacturer or producer licensed under this Part;licensed wholesalermarchand en gros titulaire de licencelicensed wholesaler means any wholesaler, jobber or other dealer licensed under this Part;partly manufactured goodsmarchandises partiellement fabriquéespartly manufactured goods meansgoods that are to be incorporated into or form a constituent or component part of an article that is subject to the consumption or sales tax, if the tax on the article has not yet been levied pursuant to section 50, orgoods that are to be prepared for sale as goods subject to the consumption or sales tax by assembling, blending, mixing, cutting to size, diluting, bottling, packaging or repackaging the goods or by applying coatings or finishes to the goods, other than goods that are so prepared in a retail store for sale in that store exclusively and directly to consumers,and the Minister is the sole judge as to whether or not goods are partly manufactured goods;producer or manufacturerproducteur ou fabricantproducer or manufacturer includes any printer, publisher, lithographer, engraver or commercial artist, but does not include, for the purposes of this Part and the Schedules, any restaurateur, caterer or other person engaged in the business of preparing in a restaurant, centralized kitchen or similar establishment food or drink, whether or not the food or drink is for consumption on the premises;sale priceprix de ventesale price, for the purpose of determining the consumption or sales tax, meansexcept in the case of wines, the aggregate ofthe amount charged as price before any amount payable in respect of any other tax under this Act is added thereto,any amount that the purchaser is liable to pay to the vendor by reason of or in respect of the sale in addition to the amount charged as price, whether payable at the same or any other time, including, without limiting the generality of the foregoing, any amount charged for, or to make provision for, advertising, financing, servicing, warranty, commission or any other matter, andthe amount of the excise duties payable under the Excise Act whether the goods are sold in bond or not,and, in the case of imported goods, the sale price shall be deemed to be the duty paid value thereof, andin the case of wines, the aggregate ofthe amount charged as price including the amount of the excise tax payable pursuant to section 27,any amount that the purchaser is liable to pay to the vendor by reason of or in respect of the sale in addition to the amount charged as price, whether payable at the same or any other time, including, without limiting the generality of the foregoing, any amount charged for, or to make provision for, advertising, financing, servicing, warranty, commission or any other matter, andthe amount of excise duties payable under the Excise Act whether the goods are sold in bond or not,and, in the case of imported wines, the sale price shall be deemed to be the aggregate of the duty paid value thereof and the amount of the excise tax payable pursuant to section 27.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 42;
R.S., 1985, c. 15 (1st Supp.), s. 16, c. 7 (2nd Supp.), s. 13.
Person deemed manufacturer or producerWhere a person has, in Canada,put a clock or watch movement into a clock or watch case,put a clock or watch movement into a clock or watch case and added a strap, bracelet, brooch or other accessory thereto, orset or mounted one or more diamonds or other precious or semi-precious stones, real or imitation, in a ring, brooch or other article of jewellery,he shall, for the purposes of this Part, be deemed to have manufactured or produced the watch, clock, ring, brooch or other article of jewellery in Canada.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 26.
Manufacturer of beverages in retail outlet deemed not to be manufacturerWhere a person manufactures or produces in a retail outlet carbonated beverages or non-carbonated fruit flavoured beverages, other than alcoholic beverages, having less than twenty-five per cent by volume of natural fruit, for sale in that outlet exclusively and directly to consumers for immediate consumption, he shall, for the purposes of this Part, be deemed not to be, in relation to any such beverage so manufactured or produced by him, the manufacturer or producer thereof.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 14.
[Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 15]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 44;
R.S., 1985, c. 7 (2nd Supp.), s. 15.
Retreader of tires deemed manufacturerA person engaged in the business of retreading tires shall, for the purposes of this Part, be deemed to be the manufacturer or producer of tires retreaded by him, and tires retreaded by him for or on behalf of any other person shall be deemed to be sold, at the time they are delivered to that other person, at a sale price equal to the retreading charge.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 26.
Deemed saleFor the purposes of this Part, a person who, pursuant to a contract for labour, manufactures or produces goods from any article or material supplied by another person, other than a licensed manufacturer, for delivery to that other person shall be deemed to have sold the goods, at a sale price equal to the charge made under the contract in respect of the goods, at the time they are delivered to that other person.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 17.
Calculation of sale price and duty paid valueFor the purpose of determining the consumption or sales tax payable under this Part,in calculating the sale price of goods manufactured or produced in Canada, there shall be included the amount charged as price for or in respect ofthe wrapper, package, box, bottle or other container in which the goods are contained, andany other goods contained in or attached to the wrapper, package, box, bottle or other container;in calculating the duty paid value of imported goods that, when imported, are wrapped, packaged, put up in boxes or bottles or otherwise prepared for sale, there shall be added to the value of the goods as determined in the manner prescribed in this Part the value, similarly determined, of the wrapper, package, box, bottle or other container in which the goods are contained; andin calculating the sale price of goods manufactured or produced in Canada, there may be excludedany fees paid to the Government of Canada or the government of a province for the inspection, marking, stamping or certification thereof in respect of capacity, accuracy, standard or safety, if the fees are shown as separate items on the manufacturers’ sales invoices, andunder such circumstances as the Governor in Council may, by regulation, prescribe, an amount representingthe cost of erection or installation of the goods incurred by the manufacturer or producer where the goods are sold at a price that includes erection or installation, orthe cost of transportation of the goods incurred by the manufacturer or producer in transporting the goods between premises of the manufacturer or producer in Canada, or in delivering the goods from the premises of the manufacturer or producer in Canada to the purchaser, where the goods are sold at a price that includes those costs of transportation,determined in such manner as the Governor in Council may, by regulation, prescribe.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 46;
R.S., 1985, c. 12 (4th Supp.), s. 13.
Deemed manufacturer of photographic prints, etc.Where a person has, in Canada,processed exposed photographic film supplied by a customer to make a negative, transparency, photographic print or other photographic related good,produced or manufactured a negative, transparency, photographic print or other photographic related good from any good supplied by a customer, orsold a right to the processing, production or manufacture by him of goods described in paragraph (a) or (b),he shall, for the purposes of this Part, be deemed to be the producer or manufacturer of the negative, transparency, photographic print or other photographic related good, and the goods shall be deemed to be soldin the case mentioned in paragraph (a) or (b), at the time the goods are delivered to the customer, andin the case mentioned in paragraph (c), at the time the right is sold,and the charge made shall be deemed to be the sale price.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1980-81-82-83, c. 68, s. 8.
Application by manufacturerAny licensed manufacturer may make an application in writing to the Minister to be considered, for the purposes of this Act, as the manufacturer or producer of all other goods, in this section and section 49 referred to as “similar goods”, that the licensed manufacturer sells in conjunction with his sales of goods of his manufacture or production in Canada or that are of the same class as goods the licensed manufacturer manufactures or produces in Canada.Additional informationThe Minister may at any time request an applicant under this section to supply additional information in respect of his application.Consideration of applicationOn receiving an application, the Minister shall decide whether to approve or reject the application and shall send to the applicant a notice in writing setting out his decision and, where the Minister approves the application, the date on and after which the approval is effective.Effect of approvalSubject to subsection 49(2), on and after the date set out in a notice of decision pursuant to subsection (3), the applicant shall be deemed to be the manufacturer or producer of all similar goods that the applicant sells and those goods shall be deemed to beat the time the applicant acquires them,for the purposes of this Part, partly manufactured goods, andfor the purposes of Part III, goods described in paragraph 23(7)(a); andthereafter, goods produced or manufactured in Canada.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 48;
R.S., 1985, c. 15 (1st Supp.), s. 18, c. 12 (4th Supp.), s. 14;
2002, c. 22, s. 371.
Revocation of approvalThe Minister may at any time, and shall on request of the applicant, revoke any approval of an application given pursuant to subsection 48(3) and, where the Minister does so, he shall send to the applicant a notice in writing of the revocation setting out the date on and after which the revocation is effective.Effect of revocationOn and after the date set out in a notice of revocation pursuant to subsection (1),subsection 48(4) ceases to apply to the applicant; andall taxes imposed by this Act are payable, at the rate in force on that date, on any similar goods then in possession of the applicant that have been acquired free of tax by virtue of subsection 48(4) and shall be computedon the duty paid value of the goods, if they were imported by the applicant, oron the price for which the goods were purchased by the applicant, if they were not imported by him, and the price shall include the amount of the excise duties on goods sold in bond.PresumptionFor the purposes of subparagraph (2)(b)(ii), where an applicant has purchased goods from, or property in goods has otherwise been transferred to an applicant by, a person with whom the applicant was not dealing at arm’s length at the time of the purchase or transfer for no price or for a price that was less than the price (in this subsection referred to as the “reasonable price”) that would have been reasonable in the circumstances if the applicant and that person had been dealing at arm’s length at that time, the applicant shall be deemed to have purchased the goods at that time for a price equal to the reasonable price.Restriction on re-applicationWhere an application is rejected pursuant to subsection 48(3) or approval of an application is revoked pursuant to subsection (1), the applicant may not make an application under subsection 48(1) within two years after the date of the notice of decision or the date on and after which the revocation is effective, as the case may be.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 49;
R.S., 1985, c. 12 (4th Supp.), s. 15.
Tax ImposedConsumption or sales taxThere shall be imposed, levied and collected a consumption or sales tax at the rate prescribed in subsection (1.1) on the sale price or on the volume sold of all goodsproduced or manufactured in Canadapayable, in any case other than a case mentioned in subparagraph (ii) or (iii), by the producer or manufacturer at the time when the goods are delivered to the purchaser or at the time when the property in the goods passes, whichever is the earlier,payable, in a case where the contract for the sale of the goods, including a hire-purchase contract and any other contract under which property in the goods passes on satisfaction of a condition, provides that the sale price or other consideration shall be paid to the manufacturer or producer by instalments (whether the contract provides that the goods are to be delivered or property in the goods is to pass before or after payment of any or all instalments), by the producer or manufacturer at the time each of the instalments becomes payable in accordance with the terms of the contract, andpayable, in a case where the goods are for use by the producer or manufacturer thereof, by the producer or manufacturer at the time the goods are appropriated for use;imported into Canada, payable in accordance with the provisions of the Customs Act by the importer, owner or other person liable to pay duties under that Act;sold by a licensed wholesaler, payable by him at the time of delivery to the purchaser, and the tax shall be computedon the duty paid value of the goods, if they were imported by the licensed wholesaler, oron the price for which the goods were purchased by the licensed wholesaler, if they were not imported by him, which price shall include the amount of the excise duties on goods sold in bond; orretained by a licensed wholesaler for his own use or for rental by him to others, payable by the licensed wholesaler at the time the goods are put to his own use or first rented to others, and the tax shall be computedon the aggregate of the duty paid value of the goods and the amount of any taxes payable on the goods under section 27, if they were imported by the licensed wholesaler, oron the aggregate of the price paid by the licensed wholesaler for the goods, the amount of any excise duties payable on the goods if sold in bond and the amount of any taxes payable on the goods under section 27, if they were not imported by the licensed wholesaler.Rates of taxTax imposed by subsection (1) is imposedin the case of wines, and goods on which a duty of excise is imposed under the Excise Act or would be if the goods were produced or manufactured in Canada, at the rate of nineteen per cent;in the case of goods enumerated in Schedule IV (Construction Materials and Equipment for Buildings), at the rate of nine per cent;in the case of regular gasoline, unleaded gasoline, premium leaded gasoline, premium unleaded gasoline and diesel fuel, at the rate set opposite the applicable item in Schedule II.1, adjusted according to subsection 50.1(1) and multiplied by the rate of tax specified in paragraph (d), expressed as a decimal number and multiplied by one hundred;in the case of goods imported into Canada and classified under tariff item No. 9804.30.00 of Schedule I to the Customs Tariff, at the rate of tax specified in paragraph (d); andin any other case, at the rate of thirteen and one-half per cent.Deemed sale and delivery of gasoline or diesel fuelNotwithstanding subsection (1), where gasoline or diesel fuel is delivered to a retail outlet by or on behalf of the manufacturer or producer thereof, the gasoline or diesel fuel shall be deemed to have been sold and delivered to a purchaser thereof.TransitionalNotwithstanding subsection (1), where gasoline, diesel fuel or aviation fuel was, immediately prior to March 1, 1987, held in inventory by or on behalf of a person described in paragraph (e) of the definition manufacturer or producer in subsection 2(1), as that subsection read immediately prior to March 1, 1987, who was a licensed manufacturer under this Act of gasoline, diesel fuel or aviation fuel solely by virtue of that paragraph, and the consumption or sales tax thereon had not been paid or become payable on or before February 28, 1987, the gasoline, diesel fuel or aviation fuel shall be deemed to have been sold and delivered to a purchaser thereof immediately prior to March 1, 1987.[Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 16]Sales tax not payable on certain goodsNotwithstanding anything in subsection (1), the consumption or sales tax shall not be payable on goodssold by a licensed manufacturer to another licensed manufacturer if the goods are partly manufactured goods;imported by a licensed manufacturer if the goods are partly manufactured goods;imported by a licensed wholesaler otherwise than for his own use or for rental to others, on importation;sold by a licensed manufacturer to a licensed wholesaler otherwise than for his own use or for rental to others;sold by a licensed wholesaler to a licensed manufacturer if the goods are partly manufactured goods;sold by a licensed wholesaler to another licensed wholesaler, but if a licensed wholesaler sells goods to another licensed wholesaler at a price less than the value on which the tax would be computed under paragraph (1)(c), the vendor forthwith becomes liable to pay the tax on the difference between the value and his sale price;sold to or imported by a person described in paragraph (d) of the definition manufacturer or producer in subsection 2(1) who is a licensed manufacturer under this Act, if the goods are cosmetics;[Repealed, R.S., 1985, c. 12 (4th Supp.), s. 16]being new motor vehicles designed for highway use, or chassis therefor, imported by a person described in paragraph (g) of the definition manufacturer or producer in subsection 2(1) who is a manufacturer licensed for the purposes of this Part;being new motor vehicles designed for highway use, or chassis therefor, sold to a person described in paragraph (h) of the definition manufacturer or producer in subsection 2(1) who is a manufacturer licensed for the purposes of this Part;sold to or imported by a person described in paragraph (i) of the definition manufacturer or producer in subsection 2(1) who is a licensed manufacturer under this Act, if the goods are goods enumerated in Schedule III.1; orsold or leased to, or imported by, a person described in paragraph (j) of the definition manufacturer or producer in subsection 2(1) who is a licensed manufacturer under this Act, if the goods are prerecorded video cassettes that are new or have not been used in Canada.Where exemption not applicableWhere any person, other than the manufacturer or producer, importer, owner, licensed wholesaler or jobber mentioned in this section, acquires from or against any one of those persons the right to sell any goods, whether as a result of the operation of law or of any transaction not taxable under this section, the sale of the goods by him shall be taxable as if made by the manufacturer or producer, importer, owner, licensed wholesaler or jobber, as the case may be, and the person so selling is liable to pay the tax.Diversion of certain articles to non-exempt use, sale, etc.Where a motor vehicle, tractor or aircraft or a ship or other marine vessel, or a machine or tool for operation by a motor vehicle or tractor or a part or equipment for an aircraft or ship or other marine vesselhas been purchased or imported by a person for a use by that person that renders the purchase or importation exempt from tax imposed under this Part and Part III or either of those Parts, orhas been purchased as described in subsection 68.19(1),the following rules apply:if within five years of the time the article was first purchased or, if imported, released under the Customs Act for a use rendering the purchase or release exempt from tax imposed under this Part and Part III or either of those Parts, the article is applied to any use, other than of a casual nature, for which it could not, at the time of such first purchase, have been purchased or released exempt from the tax, the article shall be deemed to have been sold at the time of its first application to that use and tax imposed under this Part and Part III or either of those Parts, shall be imposed, levied and collected at the time of its first application to that use,in the case of an article mentioned in Schedule I having a specific rate of tax set opposite the item, at the lesser of the specific rate applicable at that time, and the specific rate, if any, applicable in the case of the article at the time the article was first purchased or imported for a use rendering the purchase or importation exempt from the tax or taxes, andin any other case, on the sale price that would have been reasonable in the circumstances if the article had been sold, at the time of its first application to that use, to a person with whom the person so applying the article was dealing at arm’s length,payable by the owner of the article at the time of its first application to the use rendering it subject to tax; andif within five years of the time the article was first purchased or, if imported, released under the Customs Act for a use rendering the purchase or release exempt from tax imposed under this Part and Part III or either of those Parts, the article is sold or leased, the article shall be deemed to have been sold at the time of the sale or lease and tax imposed under this Part and Part III or either of those Parts, shall, if applicable, be imposed, levied and collected at the time of the sale or lease,in the case of an article mentioned in Schedule I having a specific rate of tax set opposite the item, at the lesser of the specific rate applicable at that time, and the specific rate, if any, applicable in the case of the article at the time the article was first purchased or imported for a use rendering the purchase or importation exempt from the tax or taxes, andin any other case,where the article was sold, on the sale price, orwhere the article was leased by a person to another person, on the sale price that would have been reasonable in the circumstances if the article had been sold, at the time of the lease, to that other person,payable by the person who sold or leased the article.Diversion of fuelWhere fuel that has been purchased or imported for heating or lighting is sold or appropriated by the purchaser or importer for a purpose for which the fuel could not have been purchased or imported exempt from tax under this Part at the time of the purchase or importation, the tax imposed under this Part shall be payable by the purchaser or importerwhere the fuel is sold, at the time of delivery to the person to whom it is sold, computed at the rate of tax in force at that timein the case of gasoline or diesel fuel, on the volume sold, andin any other case, on the sale price; andwhere the fuel is appropriated, at the time of the appropriation, computed at the rate of tax in force at that timein the case of gasoline or diesel fuel, on the volume appropriated, andin any other case, on the sale price that would have been reasonable in the circumstances if the fuel had been sold, at that time, to a person with whom the purchaser or importer was dealing at arm’s length.[Repealed, 2002, c. 22, s. 372]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 50;
R.S., 1985, c. 15 (1st Supp.), s. 19, c. 1 (2nd Supp.), s. 190, c. 7 (2nd Supp.), s. 16, c. 42 (2nd Supp.), ss. 4, 5, c. 12 (4th Supp.), s. 16;
1988, c. 65, s. 114;
1989, c. 22, s. 3;
2002, c. 22, s. 372.
Adjustment of rates of tax on certain petroleum productsCommencing on April 1, 1986, the rates enumerated in Schedule II.1 shall be adjusted each January 1, April 1, July 1 and October 1, so that the rates applicable during the three month period commencing on the adjustment day are equal to the amounts obtainedby multiplyingthe rates so enumeratedbythe ratio, adjusted or altered in the manner prescribed pursuant to subsection (3) and rounded to the nearest one-thousandth or, where the ratio is equidistant from two one-thousandths, to the greater thereof, thatthe Industrial Product Price Index for Motor Gasoline, in the case of the rates enumerated in sections 1 and 2 of Schedule II.1, orthe Industrial Product Price Index for Diesel Oil, in the case of the rate enumerated in section 5 of Schedule II.1,for the twelve month period ending on the day before the three month period immediately preceding the adjustment day bears tothe Industrial Product Price Index for Motor Gasoline, in the case of the rates enumerated in sections 1 and 2 of Schedule II.1, orthe Industrial Product Price Index for Diesel Oil, in the case of the rate enumerated in section 5 of Schedule II.1,for the twelve month period ending on September 30, 1985; andby rounding the product obtained under paragraph (a) to the nearest one hundred-thousandth of a dollar or, if the product is equidistant from two one-hundred-thousandths of a dollar, to the greater thereof.Industrial Product Price IndexFor the purposes of subsection (1), the Industrial Product Price Index for Motor Gasoline, or the Industrial Product Price Index for Diesel Oil, for a twelve month period is the result obtainedby aggregating the most recent Industrial Product Price Index for Motor Gasoline or the most recent Industrial Product Price Index for Diesel Oil, as the case may be, for each month in the period, including the relevant data for the period from January 1, 1981 to December 31, 1985, released by Statistics Canada under the authority of the Statistics Act on or before the fifteenth day of the third month following the end of that period and adjusted or altered in the manner prescribed pursuant to subsection (3);by dividing the aggregate obtained under paragraph (a) by twelve; andby rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two one-thousandths, to the greater thereof.Adjustment regulationsThe Governor in Council, on the recommendation of the Minister of Finance, may make regulationsprescribing the manner in which the ratio referred to in subparagraph (1)(a)(ii) shall be adjusted or altered; andprescribing, for the purposes of subsection (2), the manner in which the Industrial Product Price Index for Motor Gasoline or the Industrial Product Price Index for Diesel Oil for any month shall be adjusted or altered.Definition of termsThe Governor in Council may, by regulation, define the terms regular gasoline, unleaded gasoline, premium leaded gasoline and premium unleaded gasoline for the purposes of paragraph 50(1.1)(c) and of Schedule II.1.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 17, c. 42 (2nd Supp.), s. 6, c. 12 (4th Supp.), s. 17.
Goods exemptedThe tax imposed by section 50 does not apply to the sale or importation of the goods mentioned in Schedule III, other than those goods mentioned in Part XIII of that Schedule that are sold to or imported by persons exempt from consumption or sales tax under subsection 54(2).Articles partially exemptedThe tax imposed by section 50 shall be imposed only on fifty per cent of the sale price if manufactured in Canada or fifty per cent of the duty-paid value if imported, of metric retail scales having a maximum weighing capacity of one hundred kilograms and specifically designed for the weighing of goods in retail operations, when sold or imported before January 1, 1984.IdemThe tax imposed by section 50 on the sale price of mobile homes and modular building units shall be imposed on only fifty per cent of the sale price thereof.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 51;
R.S., 1985, c. 7 (2nd Supp.), s. 18.
Appropriation by manufacturer or producerWhere goods that were manufactured or produced in Canada are appropriated by the manufacturer or producer thereof for his own use, the sale price of the goods shall be deemed to be equal to the sale price that would have been reasonable in the circumstances if the goods had been sold, at the time of the appropriation, to a person with whom the manufacturer or producer was dealing at arm’s length.ExceptionSubsection (1) does not apply in respect of goods, other than printed matter, manufactured by Her Majesty in right of Canada or a province (except goods manufactured by a company to which the Government Corporations Operation Act applies) for any purpose, other thansale;use by any board, commission, railway, public utility, university, manufactory, company or agency that is owned, controlled or operated by the Government of Canada or the government of a province or under the authority of Parliament or of the legislature of a province; oruse by Her Majesty in right of Canada or a province or Her agents or servants for commercial or mercantile purposes.Lease or other disposal by manufacturer or producerWhere goods that were manufactured or produced in Canada are leased, or the right to use any such goods, but not the property therein, is sold or given, by the manufacturer or producer thereof to a personthe goods shall be deemed to have been sold at the time the goods were so leased or the right to use them was so sold or given; andthe sale price of the goods shall be deemed to be equal to the sale price that would have been reasonable in the circumstances if the goods had been sold at that time to that person.Royalty or other considerationWhere the sale price of goods consists in whole or in part of a royalty, or any other consideration, that is unascertained at the earlier of the time the goods are delivered or the property in the goods passes to the purchaser thereof, the sale price of the goods shall be deemed to be equal to the sale price that would have been reasonable in the circumstances if the whole of the consideration had been ascertained at that time.Disposal of cosmetics by licensed manufacturerWhere cosmetics were manufactured or produced in Canada by a licensed manufacturer for a non-resident person who is a person described in paragraph (d) of the definition manufacturer or producer in subsection 2(1) and who has failed to apply for a licence as required by section 54, the licensed manufacturer shall be deemed to have sold the cosmetics for a sale price equal to the sale price that would have been reasonable in the circumstances if the cosmetics had been sold in Canada, at the earlier of the time the cosmetics were delivered or the property in the cosmetics passed to that non-resident person, by that non-resident person to a third person with whom he was dealing at arm’s length.Disposal of video cassettes by licensed manufacturerWhere prerecorded video cassettes that are new or have not been used in Canada were manufactured or produced in Canada by a licensed manufacturer for a non-resident person who is a person described in paragraph (j) of the definition manufacturer or producer in subsection 2(1) and who has failed to apply for a licence as required by section 54, the licensed manufacturer shall be deemed to have sold the cassettes for a sale price equal to the sale price that would have been reasonable in the circumstances if the cassettes had been sold in Canada, at the earlier of the time the cassettes were delivered or property in the cassettes passed to that non-resident person, by that non-resident person to a third person with whom he was dealing at arm’s length.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 52;
R.S., 1985, c. 15 (1st Supp.), s. 20, c. 7 (2nd Supp.), s. 19, c. 12 (4th Supp.), s. 18.
[Repealed, R.S., 1985, c. 15 (1st Supp.), s. 21]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 53;
R.S., 1985, c. 15 (1st Supp.), s. 21.
LicencesManufacturers’ licencesSubject to this section, every manufacturer or producer shall apply for a licence for the purposes of this Part.ExemptionThe Minister may grant a licence to any person applying therefor under subsection (1), but the Governor in Council, on the joint recommendation of the Minister of Finance and the Minister of National Revenue, may make regulations exempting any class of small manufacturer or producer from payment of consumption or sales tax on goods manufactured or produced by persons who are members of the class and persons so exempted are not required to apply for a licence.Withdrawal of exemptionAn exemption granted under subsection (2) may, on the joint recommendation of the Minister of Finance and the Minister of National Revenue, be withdrawn by the Governor in Council at any time.CancellationThe Minister may cancel a licence issued under this Part if, in his opinion, it is no longer required for the purposes of this Part.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 31;
1976-77, c. 15, s. 9;
1980-81-82-83, c. 68, s. 13.
Licensed wholesaler or jobberA bona fide wholesaler or jobber may be granted a licence but, if a wholesaler was not in possession of a licence on September 1, 1938, no licence shall be issued to him unless he is engaged exclusively or mainly in the purchase and sale of lumber or unless fifty per cent of his sales for the three months immediately preceding his application were exempt from the sales tax under this Act.Duty free shopsA person who proposes to operate and sell goods exclusively at a duty free shop licensed as such under the Customs Act or who operates and sells goods exclusively at such a duty free shop shall be deemed, for the purposes of this section, to be a bona fide wholesaler or jobber, and the Minister may grant a licence to that person notwithstanding that he does not fulfil the requirements of subsection (1).Licensee to give securityA wholesaler or jobber applying for a licence under this section shall give security that the wholesaler or jobber and any person other than the wholesaler or jobber who acquires from or against him the right to sell any goods, whether as a result of the operation of law or of any transaction not taxable under this Act, shall keep adequate books or accounts for the purposes of this Act and shall render true returns of sales as required by this Act, or any regulations made under this Act, and pay any tax imposed by this Act on those sales.Amount of securityThe security referred to in subsection (3) shall be for an amount of not more than twenty-five thousand dollars and not less than two thousand dollars.BondThe security referred to in subsection (3) shall be by a bank or by bond of an incorporated guarantee company authorized to do business in Canada, acceptable to the Minister, or by deposit of bonds or other securities of or guaranteed by the Government of Canada.Form of bondWhere the security referred to in subsection (3) is by bond of a guarantee company, the bond shall be in form approved by the Minister.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 55;
R.S., 1985, c. 1 (2nd Supp.), s. 191.
Cancellation of licenceThe licence of any wholesaler or jobber who contravenes any requirement of this Part shall be cancelled forthwith and the wholesaler or jobber shall not be granted a licence within a period of two years after the date of the cancellation.IdemThe licence of any person deemed by subsection 55(2) to be a bona fide wholesaler or jobber shall be cancelled forthwith if he ceases to operate and sell goods exclusively at a duty free shop licensed as such under the Customs Act, and on cancellation of the licence pursuant to this section, all taxes imposed by this Act are forthwith payable on all goods then in the possession of the licensee that have been purchased free of tax by virtue of the licence.Tax on cancellationOn the cancellation under subsection (1) of the licence granted to any licensed wholesaler, or if the licence is cancelled at the request of the licensee, or if any such licence expires and is not renewed by the licensee, all taxes imposed by this Act are forthwith payable on all goods then in the possession of the licensee that have been purchased free of tax by virtue of the licence, which taxes shall be paid at the rate in force when the licence is cancelled or expires and is not renewed and shall be computed in accordance with paragraph 50(1)(c) and Part III.Cancellation of bondNotwithstanding that a bond of a guarantee company given under section 55 has been cancelled, the bond shall be deemed to remain in force in relation to all goods in the possession of the licensed wholesaler at the time of cancellation.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 56;
R.S., 1985, c. 1 (2nd Supp.), s. 192;
1990, c. 45, s. 8;
2002, c. 22, s. 373.
EvasionPowers of MinisterNotwithstanding anything in this Part, if it appears to the Minister that payment of the consumption or sales tax is being evaded by a licensed manufacturer or licensed wholesaler, the Minister may require that the consumption or sales tax shall be imposed, levied and collected on any material specified by the Minister sold to any licensed manufacturer or licensed wholesaler or to any class of licensed manufacturers or licensed wholesalers specified by the Minister, at the time of sale of the material when produced or manufactured in Canada, or prior to release under the Customs Act if the material is imported by the licensed manufacturer or licensed wholesaler.DeductionA deduction may be made, in respect of the tax imposed, levied and collected on material referred to in subsection (1), on submission by the licensed manufacturer or licensed wholesaler of proof that the material has been used in the manufacture of an article that is subject to the consumption or sales tax and on which the tax has been paid.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 57;
R.S., 1985, c. 1 (2nd Supp.), s. 193.
Deemed sale priceNotwithstanding any other provision of this Act other than subsections 52(5) and (6), for the purposes of this Part and Part III, where goods that were manufactured or produced, or deemed to have been manufactured or produced, in Canada are sold or deemed to be sold, or the property therein is otherwise transferred, by the manufacturer or producer thereof to a person with whom the manufacturer or producer was not dealing at arm’s length at the earlier of the time the goods were delivered or property in the goods passed to that person for no sale price or for a sale price that is less than the sale price (in this subsection referred to as the “reasonable sale price”) that would have been reasonable in the circumstances if the manufacturer or producer and that person had been dealing at arm’s length at that time, the manufacturer or producer shall be deemed to have sold the goods at that time for the reasonable sale price.IdemNotwithstanding any other provision of this Act, for the purposes of this Part and Part III, where a licensed wholesaler has purchased goods from, or property in goods has otherwise been transferred to a licensed wholesaler by, a person with whom the licensed wholesaler was not dealing at arm’s length at the earlier of the time the goods were delivered or property in the goods passed to the licensed wholesaler for no price or for a price that was less than the price (in this subsection referred to as the “reasonable price”) that would have been reasonable in the circumstances if the licensed wholesaler and that person had been dealing at arm’s length at that time and the goods were not imported by the licensed wholesaler, the licensed wholesaler shall be deemed to have purchased the goods at that time for a price equal to the reasonable price.IdemNotwithstanding any other provision of this Act, for the purposes of this Part and Part III, where a person has purchased or imported goods as described in subsection 68.19(1) or for a use rendering the purchase or importation exempt from tax under Part III or this Part and that person, under circumstances rendering him liable to pay the tax imposed by Part III or this Part, sells the goods or is deemed to sell the goods, or the property therein is otherwise transferred, to another person with whom he was not dealing at arm’s length at the time of the sale or transfer for no sale price or for a sale price that is less than the sale price (in this subsection referred to as the “reasonable sale price”) that would have been reasonable in the circumstances if they had been dealing at arm’s length at that time, that person shall be deemed to have sold the goods at that time for the reasonable sale price.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 58;
R.S., 1985, c. 12 (4th Supp.), s. 19.
GENERALInterpretationDefinitionsIn this Part,assessmentcotisationassessment means an assessment under subsection 81.1(1) and includes a variation of an assessment and a reassessment; Board[Repealed, R.S., 1985, c. 47 (4th Supp.), s. 52]Department[Repealed, 1999, c. 17, s. 149]Deputy Minister[Repealed, 1999, c. 17, s. 149]fiscal half-yearsemestre d’exercicefiscal half-year means a fiscal half-year as determined under subsection 78(1.1).fiscal monthmois d’exercicefiscal month means a fiscal month as determined under subsection 78(1); fiscal yearexercicefiscal year of a person means the same period that is the person’s fiscal year under Part IX.monthmoismonth means a period beginning on a particular day in a calendar month and ending on the day immediately before the day in the next calendar month that has the same calendar number as the particular day, orif the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month;reporting periodpériode de déclarationreporting period means a reporting period as determined under section 78.1.TribunalTribunalTribunal means the Canadian International Trade Tribunal established by subsection 3(1) of the Canadian International Trade Tribunal Act. Same meaningWords and expressions used in this Part in connection with a tax under any other Part have the same meaning as in that other Part unless the contrary intention appears.RemittanceUnless the contrary intention appears, any reference in this Part to “pay” or “payment”, in relation to taxes imposed under this Act, shall be construed as including, in relation to taxes imposed under Part II or II.2, a reference to “remit” or “remittance”, and other parts of speech and grammatical forms of those words shall be construed in a corresponding manner.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 22, c. 7 (2nd Supp.), s. 20, c. 12 (4th Supp.), s. 20, c. 47 (4th Supp.), s. 52;
1992, c. 1, s. 65;
1994, c. 13, s. 7;
1999, c. 17, s. 149;
2003, c. 15, s. 95;
2010, c. 25, s. 127.
Previous VersionRegulationsRegulationsThe Minister of Finance or the Minister of National Revenue, as the case may be, may make such regulations as he deems necessary or advisable for carrying out the provisions of this Act.Delegation of powersThe Minister may authorize a designated officer or agent, or officer or agent of a designated class of officers or agents, to exercise powers or perform duties of the Minister, including judicial or quasi-judicial powers or duties, under this Act.[Repealed, 1990, c. 45, s. 9]Regulations prescribing rate of interestThe Governor in Council may, on the recommendation of the Minister of Finance, make regulations prescribing a rate of interest or rules for determining a rate of interest for the purposes of this Act.RegulationsThe Governor in Council may make regulationsdesignating certain classes of goods as ships’ stores for use on board a conveyance of a prescribed class, including a class based onthe physical attributes, functions or legal descriptions of conveyances,areas within which conveyances voyage,requirements, or limitations, related to voyages of conveyances, orany combination of the bases mentioned in subparagraphs (i) to (iii); andlimiting the quantity of goods referred to in paragraph (a) that may be used as described in that paragraph during any prescribed period or periods.Regulations respecting reasonable priceThe Governor in Council may make regulations respecting the method for determining the reasonable sale price or reasonable price, as the case may be, for any goods for the purposes of subsections 23(10) and 49(2.1), subparagraphs 50(7)(c)(ii) and (d)(ii), subsection 50(8) and sections 52 and 58.EffectA regulation made under this Act has effect from the day on which it is published in the Canada Gazette or at any later time that may be specified in the regulation, unless it provides otherwise andhas a relieving effect only;corrects an ambiguous or deficient enactment that was not in accordance with the objects of this Act;is consequential on an amendment to this Act that is applicable before the day on which the regulation is published in the Canada Gazette; orgives effect to a budgetary or other public announcement, in which case the regulation shall not, unless paragraph (a), (b) or (c) applies, have effect before the day on which the announcement was made.EnforcementThe regulations shall be enforced in the same manner as any provision of this Act.Oaths and declarationsAny person designated by the Minister may receive or administer any oath or declaration required by this Act, or by any regulation made under this Act, and every person so designated has, with respect to any such oath or declaration, has all the powers of a commissioner for taking affidavits.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 59;
R.S., 1985, c. 15 (1st Supp.), s. 23, c. 7 (2nd Supp.), s. 21, c. 12 (4th Supp.), s. 21;
1990, c. 45, s. 9;
1993, c. 25, s. 58, c. 27, s. 1;
2002, c. 22, s. 427;
2003, c. 15, s. 96;
2005, c. 38, s. 100.
Previous VersionStampsPreparation and use of stampsThe Minister may direct the preparation and use of stamps for the purposes of this Act.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 36.
CancellationIn any case in which an adhesive stamp is required to be cancelled, and no other method of cancellation is prescribed, the stamp shall be deemed to be cancelled if lines or marks are drawn across or impressed thereon so as effectually to render the stamp incapable of being used for any other instrument.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 37.
LiabilityEvery person who, being required by or pursuant to this Act to affix or cancel stamps, fails to do so as required is liable to Her Majesty for the amount of stamps he should have affixed or cancelled and that amount is recoverable in the Federal Court, or in any other court of competent jurisdiction as a debt due to Her Majesty.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 38;
R.S., c. 10(2nd Supp.), s. 64.
Appointment of stamp vendorsThe Minister may appoint postmasters or other officers of the Crown to sell stamps prepared for the purposes of this Act and he may authorize other persons to be vendors who may purchase stamps so prepared for resale.Reduced priceThe Governor in Council may by regulation fix a reduced price at which stamps prepared for the purposes of this Act may be sold to persons authorized by the Minister to be vendors under subsection (1).
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 39.
LicencesApplication for licenceEvery person who is required under Part III to pay taxes shall, from time to time as required under the regulations, apply for a licence in respect of that Part.Granting of licence and exemptionThe Minister may grant a licence to any person applying therefor under subsection (1) and may, by regulation, exempt any person or class of persons from obtaining a licence under this section in respect of a specified Part, and any person who is a member of a class of small manufacturer or producer the members of which are exempted, pursuant to subsection 54(2), from payment of consumption or sales tax on goods manufactured or produced by them shall, whether or not he is a person or member of a class of persons exempted from obtaining a licence under this section, be exempt from payment of excise tax on goods manufactured or produced by him.Cancellation of licencesThe Minister may cancel a licence issued under this section if, in his opinion, it is no longer required for the purposes of this Act.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 64;
R.S., 1985, c. 12 (4th Supp.), s. 22;
2002, c. 22, s. 374.
Offence and punishmentEvery person who fails to apply for a licence as required by this Act is guilty of an offence and liable to a fine not exceeding one thousand dollars.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 41.
Exported GoodsExemption on exported goodsThe tax imposed under this Act is not payable if evidence satisfactory to the Minister is produced to establishthat the goods in respect of which it is imposed have been exported from Canada by the manufacturer, producer or licensed wholesaler by whom the tax would otherwise be payable in accordance with any regulations made under this Act that are applicable to the goods; orthat the goods in respect of which it is imposed have been sold by the operator of a duty free shop and have been exported from Canada by the purchaser of the goods, in accordance with the regulations made under the Customs Act.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 66;
R.S., 1985, c. 1 (2nd Supp.), s. 194, c. 7 (2nd Supp.), s. 22;
1993, c. 25, s. 59;
1995, c. 46, s. 2;
2000, c. 30, s. 11;
2002, c. 22, s. 375.
[Repealed, 2002, c. 22, s. 375]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 25, s. 59;
2002, c. 22, s. 375.
Liability of the CrownTaxes on goods imported by CrownThe tax imposed under Part III is applicableto goods imported by Her Majesty in right of Canada; andto goods imported by Her Majesty in right of a province.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 67;
2002, c. 22, s. 376.
Deductions, Refunds and DrawbacksPayment where errorIf a person, otherwise than pursuant to an assessment, has paid any moneys in error in respect of any goods, whether by reason of mistake of fact or law or otherwise, and the moneys have been taken into account as taxes, penalties, interest or other sums under this Act, an amount equal to the amount of the moneys shall, subject to this Part, be paid to the person if the person applies for the payment of the amount within two years after the payment of the moneys.ExceptionSubsection (1) does not apply if an application for a payment in respect of the goods can be made by any person under section 68.01.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 68;
R.S., 1985, c. 15 (1st Supp.), s. 24, c. 7 (2nd Supp.), ss. 23, 34;
2007, c. 29, s. 43.
Previous VersionPayment for end-users — diesel fuelIf tax under this Act has been paid in respect of diesel fuel, the Minister may pay an amount equal to the amount of that taxin the case where a vendor delivers the diesel fuel to a purchaserto the vendor, if the vendor applies for the payment, the purchaser certifies that the diesel fuel is for use exclusively as heating oil and the vendor reasonably believes that the purchaser will use it exclusively as heating oil,to the purchaser, if the purchaser applies for the payment, the purchaser uses the diesel fuel as heating oil and no application in respect of the diesel fuel can be made by the vendor under subparagraph (i); orto a purchaser who applies for the payment and who uses the diesel fuel to generate electricity, except if the electricity so generated is used primarily in the operation of a vehicle.Payment for end-users — fuel used as ships’ storesIf tax under this Act has been paid in respect of fuel and no application is made in respect of the fuel by any person under section 68.17 or 70, the Minister may pay an amount equal to the amount of that tax to a purchaser who applies for the payment and who uses the fuel as ships’ stores.Timing of applicationNo payment shall be made under this section unlessthe vendor described in subparagraph (1)(a)(i) applies for it within two years after the vendor sells the diesel fuel to the purchaser described in paragraph (1)(a); orthe purchaser described in subparagraph (1)(a)(ii), paragraph (1)(b) or subsection (2) applies for it within two years after the purchase.ConditionsThe Minister is not required to make a payment under this section unless the Minister is satisfied that all the conditions for the payment have been met.Deemed tax payableIf, under this section, the Minister pays an amount to a person to which that person is not entitled, or pays an amount to a person in excess of the amount to which that person is entitled, the amount of the payment or the excess is deemed to be a tax payable by that person under this Act on the day on which the Minister made the payment.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2007, c. 29, s. 43.
Payment to end-users — specially equipped vanIf tax under this Act has been paid in respect of a van to which section 6 of Schedule I applies, the Minister may pay an amount equal to the amount of the tax paid at the rate set out in that sectionif the van was manufactured or produced in Canada, to a person who is the first final consumer of the van if, at the time of the acquisition of the van by the person or within six months after that time, the van has been equipped with a device designed exclusively to assist in placing a wheelchair in the van without having to collapse the wheelchair; orif the van was imported, to a person who is the first final consumer of the van after the importation if, at the time of importation, the van was equipped with a device designed exclusively to assist in placing a wheelchair in the van without having to collapse the wheelchair.Timing of applicationNo payment in respect of a van shall be made under this section unless the person to whom the payment can be made applies for it within two years after the person acquires the van.Deemed tax payableIf, under this section, the Minister pays an amount to a person to which that person is not entitled, or pays an amount to a person in excess of the amount to which that person is entitled, the amount of the payment or the excess is deemed to be a tax payable by that person under this Act on the day on which the Minister made the payment.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2007, c. 29, s. 43.
Payment where goods exportedWhere tax under this Act has been paid in respect of any goods and a person has, in accordance with regulations made by the Minister, exported the goods from Canada, an amount equal to the amount of that tax shall, subject to this Part, be paid to that person if that person applies therefor within two years after the export of the goods.[Repealed, 2002, c. 22, s. 377, as amended by 2003, c. 15, s. 66]ExceptionFor greater certainty, no amount is payable to a person under subsection (1) in respect of tax paid on gasoline or diesel fuel transported out of Canada in the fuel tank of the vehicle that is used for that transportation.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34;
1993, c. 25, s. 60;
1995, c. 46, s. 3;
2000, c. 30, s. 12;
2002, c. 22, s. 377;
2003, c. 15, ss. 63, 66.
Payment where adjustmentWhere tax under Part II has been remitted by a licensed air carrier and the carrier has, in accordance with subsection 18(1), made an adjustment or refund in respect of the tax, an amount equal to the amount of that adjustment or refund shall, subject to this Part, be paid to that carrier if it applies therefor within two years after the adjustment or refund.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34.
Payment where adjustmentWhere tax under Part II.1 has been paid by a licensee in respect of any taxable service and the licensee has made an adjustment or refund of the amount charged because of an error or because the service was not provided, or was only partially provided, by the licensee, an amount equal to the proportion of the amount of that tax that the amount of the adjustment or refund is of the amount charged shall, subject to this Part, be paid to the licensee if he applies therefor within two years after the adjustment or refund.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34.
Payment where licence subsequently issuedWhere tax under Part II.1 has been paid by a licensee in respect of any taxable service and the person, in this section referred to as the “purchaser”, acquiring the service from the licenseewas required at the time the amount charged to the purchaser for the service was paid or payable, whichever is the earlier, to apply for a licence under that Part and was thereafter issued such a licence, andprovided the service, at a time when the purchaser was required to apply for a licence under that Part or held such a licence, to another person for an amount charged that was paid or payable, whichever is the earlier, at that time,an amount equal to the proportion of the amount of that tax that the amount of the taxable sales of the service by the purchaser is of the amount of the total sales of the service by the purchaser shall, subject to this Part, be paid to the purchaser if he applies therefor within two years after the later of the time the service was provided by the purchaser and the time the licence was issued to the purchaser.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34.
Payment where use by provinceWhere tax under Part II.1 has been paid by a licensee in respect of any taxable service and Her Majesty in right of a province has acquired the service for any purpose other thanprovision to another person for an amount charged,use by any board, commission, railway, public utility, university, manufactory, company or agency owned, controlled or operated by the government of the province or under the authority of the legislature or the lieutenant governor in council of the province, oruse by Her Majesty in that right, or by any agents or servants of Her Majesty in that right, for any commercial or mercantile purposes,an amount equal to the amount of that tax shall, subject to this Part, be paid either to that licensee or to Her Majesty in that right, as the case may require, if the licensee or Her Majesty applies therefor within two years after Her Majesty acquired the service.ExceptionNo amount shall be paid pursuant to subsection (1) to a licensee who provides a taxable service to Her Majesty in right of a province in respect of which there is in force at the time the service is provided a reciprocal taxation agreement referred to in section 32 of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34.
DefinitionsIn this section,arm’s length salevente sans lien de dépendancearm’s length sale means the provision of a taxable service for an amount charged by a licensee to a person with whom the licensee is dealing at arm’s length at the time the service is provided;fiscal periodexercicefiscal period means a fiscal period as determined for the purposes of the Income Tax Act.Payment where bad debtWhere tax under Part II.1 has been paid, or tax under Part II.2 has been remitted, by a licensee in respect of an arm’s length sale occurring on or after February 16, 1984 and the licensee has established, in accordance with generally accepted accounting practices, that any debt owing to the licensee in respect of the sale has become in whole or in part a bad debt and has accordingly written off the debt as a bad debt in his books of account, an amount equal to the proportion of the amount of that tax that the amount of the debt written off is of the aggregate of the amount charged for the taxable service and the amount of the tax shall, subject to this Part, be paid to that licensee if the licensee applies therefor in the two years after the end of his fiscal period during which the debt was so written off.Recovery of paymentWhere a licensee recovers all or any part of a debt in respect of which an amount is paid to him pursuant to subsection (2), in this subsection referred to as the “refunded amount”, that licensee shall forthwith pay to Her Majesty an amount equal to the proportion of the refunded amount that the amount of the debt so recovered is of the amount of the debt written off in respect of which the refunded amount was paid.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34, c. 12 (4th Supp.), s. 23;
1999, c. 31, ss. 230(F), 248(F).
Payment where adjustmentWhere tax under Part II.2 has been remitted by a licensee and the licensee has, in accordance with subsection 21.31(1), made an adjustment or refund in respect of the tax, an amount equal to the amount of that adjustment or refund shall, subject to this Part, be paid to that licensee if the licensee applies therefor within two years after he made the adjustment or refund.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 24.
Payment where licence subsequently issuedWhere tax under Part II.2 has been paid by a person in respect of any taxable service acquired by that person and that personwas required, at the time the tax became payable, to apply for a licence under that Part and was thereafter issued such a licence, andat a time when that person was required to apply for a licence under that Part or held such a licence,provided the service to another person for an amount charged that was paid or payable, whichever is the earlier, at that time, orused the service directly in providing another taxable service, other than a paging service, to another person,an amount equal to the proportion of the amount of that tax that the uses referred to in paragraph (b) of the taxable service are of the total use of that taxable service by that person shall, subject to this Part, be paid to that person if he applies therefor within two years after the later of the time the service was so provided or used by that person and the time the licence was issued to that person.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 24.
Payment where resaleWhere tax under Part II.2 has been paid in respect of any taxable service by a person who was not a telecommunications carrier at the time the tax became payable and that person has provided the service for an amount charged to another person who acquired the service for a use described in subsection 21.28(1) or (2) and held a licence under that Part or Part II.1 at the time of that acquisition, an amount equal to the proportion of the amount of that tax that the provision of that service to that other person is of the total use of that service by that person shall, subject to this Part, be paid to that person if he applies therefor within two years after he provided the service to that other person.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 24.
Payment where certain uses of gasolineWhere tax under Part III has been paid in respect of any gasoline and the gasoline has been purchased byHer Majesty in right of Canada or a province or any agent of Her Majesty in right of Canada or a province, before 1991,a municipality, before 1991,a person for commercial or business purposes, before 1991,a farmer for farming purposes, before 1991,a fisherman, hunter or trapper for commercial fishing, hunting or trapping, before 1991,a person under conditions for which relief from the consumption or sales tax is provided by any provision of this Act, other than subsection 50(5), before 1991,a person of such other class of persons as the Governor in Council may by regulation prescribe, before 1991,a registered charity, within the meaning of the Income Tax Act,a registered Canadian amateur athletic association, within the meaning of the Income Tax Act, ora person who has been certified by a qualified medical practitioner to be suffering from a permanent impairment of locomotion to such an extent that the use of public transportation by that person would be hazardous,for the sole use of the purchaser and not for resale, an amount equal to that portion of the tax equal to one and one-half cents per litre shall, subject to this Part, be paidto the purchaser, orin accordance with such terms and conditions as the Governor in Council may by regulation prescribe, to the manufacturer, producer, wholesaler, jobber or other dealer,if the purchaser applies therefor within two years after he purchased the gasoline.Payment where certain uses of aviation gasolineWhere tax under Part III has been paid in respect of any aviation gasoline and the aviation gasoline has been purchased before 1991 by a personproviding public air transportation of passengers, freight or mail,providing air services directly related tothe exploration and development of natural resources,aerial spraying, seeding and pest control,forestry,fish cultivation,aerial construction operations using rotating wing aircraft,aerial fire control, fire protection and fire fighting, ormap making operations, orengaged in the business of testing aircraft engines,for the sole use of the purchaser to provide a service mentioned in paragraph (a) or (b) or to test aircraft engines, as the case may be, and not for resale or any other use, an amount equal to that portion of the tax equal to one and one-half cents per litre shall, subject to this Part, be paidto the purchaser, orin accordance with such terms and conditions as the Governor in Council may by regulation prescribe, to the manufacturer, producer, wholesaler, jobber or other dealer,if the purchaser applies therefor within two years after he purchased the aviation gasoline.PresumptionAny payment made to a person referred to in paragraph (1)(i) or (2)(e) shall, for the purposes of subsection (4) and sections 98 to 102, be deemed to have been made to the purchaser.Recovery of paymentWhere an amount has been paid pursuant to subsection (1) or (2) to a person who sells or uses the gasoline or aviation gasoline for a purpose that does not entitle its purchaser to that payment, the purchaser shall forthwith pay to Her Majesty an amount equal to the amount of the payment.Commercial or business purposesFor the purposes of paragraph (1)(c), the expression “commercial or business purposes” shall have such meaning as the Governor in Council may determine by regulation.To whom payment madeWhere a person has purchased gasoline or aviation gasoline in respect of which tax under Part III has been paid and has recovered the cost of that gasoline or aviation gasoline, or any part thereof, from, in the case of gasoline, a person described in any of paragraphs (1)(a) to (g.3) or, in the case of aviation gasoline, a person described in any of paragraphs (2)(a) to (c), for the purpose of paying an amount pursuant to subsection (1) or (2), the Governor in Council may, by regulation, determinethe manner in which the amount shall be calculated; andwho, between the person who purchased the gasoline or aviation gasoline and the person from whom all or any part of the cost has been recovered, shall be deemed to be the purchaser of that gasoline or aviation gasoline.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34;
1990, c. 45, s. 10;
1995, c. 36, s. 5;
1999, c. 31, s. 246(F).
[Repealed, 2001, c. 16, s. 27]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 7;
1997, c. 26, s. 67;
2001, c. 16, s. 27.
[Repealed, 2001, c. 16, s. 27]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 7;
2001, c. 16, s. 27.
[Repealed, 2001, c. 16, s. 27]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 7;
2001, c. 16, s. 27.
[Repealed, 2001, c. 16, s. 27]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 7;
2001, c. 16, s. 27.
[Repealed, 2001, c. 16, s. 27]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 7;
2000, c. 30, s. 140;
2001, c. 16, s. 27.
[Repealed, 2001, c. 16, s. 27]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 7;
2001, c. 16, s. 27.
[Repealed, 2001, c. 16, s. 27]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 7;
2001, c. 16, s. 27.
[Repealed, 2001, c. 16, s. 27]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 7;
2001, c. 16, s. 27.
[Repealed, 2001, c. 16, s. 27]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 7;
1995, c. 36, s. 6;
1997, c. 26, s. 68;
1998, c. 21, s. 81;
2000, c. 30, ss. 13, 140;
2001, c. 16, s. 27.
Payment where use as ships’ storesIf tax under Part III has been paid in respect of any goods and a manufacturer, producer, wholesaler, jobber or other dealer has sold the goods for use as ships’ stores, an amount equal to the amount of that tax shall, subject to this Part, be paid to that dealer if that dealer applies for it within two years after that sale of the goods.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34;
1991, c. 42, s. 2;
1993, c. 25, s. 61;
2002, c. 22, ss. 378, 429(F).
[Repealed, 2002, c. 22, s. 378]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2001, c. 16, s. 28;
2002, c. 22, s. 378.
[Repealed, 2002, c. 22, s. 378]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2001, c. 16, s. 28;
2002, c. 22, s. 378.
Payment where goods in inventoryIf tax under Part III has been paid in respect of any goods and a person holds the goods in an unused condition in inventory on the day a licence is granted to that person under section 54 or 64 and could thereafter have obtained the goods exempt from tax under subsection 23(7), an amount equal to the amount of that tax shall, subject to this Part, be paid to that person if that person applies for it within two years after the licence was granted.Payment where goods in inventoryIf tax under Part III has been paid in respect of any goods and a person holds the goods in an unused condition in inventory on the day a licence is granted to that person under section 55 and could thereafter have obtained the goods exempt from tax under subsection 23(6), (7) or (8), an amount equal to the lesser of the amount of that tax and the amount of tax under Part III that would be payable if the goods were acquired in a taxable transaction by that person on that day shall, subject to this Part, be paid to that person if that person applies for it within two years after the licence was granted.ExceptionNo amount equal to the amount of tax under Part III shall be paid under subsection (2) to a person in respect of any goods that are not subject to tax under that Part on the day a licence is granted to that person under section 55.[Repealed, 2002, c. 22, s. 379]Unused conditionFor the purposes of this section, goods are in an unused condition if they are new or have not been used in Canada.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34;
2001, c. 16, s. 29;
2002, c. 22, s. 379.
Payment where use by provinceIf tax under Part III has been paid in respect of any goods and Her Majesty in right of a province has purchased or imported the goods for any purpose other thanresale,use by any board, commission, railway, public utility, university, manufactory, company or agency owned, controlled or operated by the government of the province or under the authority of the legislature or the lieutenant governor in council of the province, oruse by Her Majesty in that right, or by any agents or servants of Her Majesty in that right, in connection with the manufacture or production of goods or use for other commercial or mercantile purposes,an amount equal to the amount of that tax shall, subject to this Part, be paid either to Her Majesty in that right or to the importer, transferee, manufacturer, producer, wholesaler, jobber or other dealer, as the case may require, if Her Majesty or the dealer applies therefor within two years after Her Majesty purchased or imported the goods.ExceptionNo amount shall be paid pursuant to subsection (1) to an importer, transferee, manufacturer, producer, wholesaler, jobber or other dealer who supplies goods to Her Majesty in right of a province in respect of which there is in force at the time the goods are supplied a reciprocal taxation agreement referred to in section 32 of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34;
1991, c. 42, s. 3;
2002, c. 22, s. 380.
Payment where subsequent exempt saleWhere tax under Part III or VI has been paid in respect of any goods and subsequently the goods are sold to a purchaser in circumstances that, by virtue of the nature of that purchaser or the use to which the goods are to be put or by virtue of both such nature and use, would have rendered the sale to that purchaser exempt or relieved from that tax under subsection 23(6), paragraph 23(8)(b) or subsection 50(5) or 51(1) had the goods been manufactured in Canada and sold to the purchaser by the manufacturer or producer thereof, an amount equal to the amount of that tax shall, subject to this Part, be paid to the person who sold the goods to that purchaser if the person who sold the goods applies therefor within two years after he sold the goods.Application of anti-avoidance ruleSection 274 applies, with such modifications as the circumstances require, to any transactionthat is a sale of goods that would give rise to the application of, or that is the basis of an application under, subsection (1), andthat takes place after December 17, 1990 and before 1991,and for that purpose, every reference in that section to “an assessment, a reassessment or an additional assessment” shall be read as a reference to “an assessment, a reassessment, an additional assessment, a determination or a redetermination”.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34;
1993, c. 27, s. 2.
DefinitionsIn this section,arm’s length salevente sans lien de dépendancearm’s length sale means a sale of goods by a licensed manufacturer to a person with whom the manufacturer is dealing at arm’s length at the time of the sale;fiscal periodexercicefiscal period means a fiscal period as determined for the purposes of the Income Tax Act.Payment where bad debtWhere ad valorem tax under Part III or VI has been paid by a licensed manufacturer in respect of an arm’s length sale occurring on or after February 16, 1984 and the manufacturer has established, in accordance with generally accepted accounting practices, that any debt owing to him in respect of the sale has become in whole or in part a bad debt and has accordingly written off the debt as a bad debt in his books of account, an amount equal to the proportion of the amount of that tax that the amount of the debt written off is of the price for which the goods were sold shall, subject to this Part, be paid to that manufacturer if he applies therefor in the two years after the end of his fiscal period during which the debt was so written off.Recovery of paymentWhere a licensed manufacturer recovers all or any part of a debt in respect of which an amount is paid to him pursuant to subsection (2), in this subsection referred to as the “refunded amount”, that manufacturer shall forthwith pay to Her Majesty an amount equal to the proportion of the refunded amount that the amount of the debt so recovered is of the amount of the debt written off in respect of which the refunded amount was paid.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34, c. 12 (4th Supp.), s. 25;
1999, c. 31, ss. 231(F), 248(F).
Payment where warrantyWhere tax under Part III or VI has been paid in respect of any goods that a licensed manufacturer gives away as free replacement parts under a written warranty given in respect of the goods into which the parts are to be incorporated and the amount, if any, charged for the warranty is included in the sale price charged by the licensed manufacturer for the goods into which the parts are to be incorporated or, if those goods are imported goods, in the duty paid value thereof, an amount equal to the amount of that tax shall, subject to this Part, be paid to that manufacturer if he applies therefor within two years after he gave away the goods.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34.
Definition of system goodsIn this section, system goods meansgoods purchased for use directly in a water distribution, sewerage or drainage system, andgoods used in the construction of a building, or that part of a building, used exclusively to house machinery and apparatus for use directly in a water distribution, sewerage or drainage system,but does not include chemicals purchased for use or used in the treatment of water or sewage in any such system.Payment where use in certain systemsWhere tax under Part VI has been paid in respect of any system goods and the purchaser of the goods has, within three years after the completion of the system for which the goods were purchased or in which the goods were used, as the case may be, transferred the system without charge to a municipality pursuant to a by-law of or an agreement with that municipality, an amount equal to the amount of that tax shall, subject to this Part, be paid to that purchaser if he applies therefor within two years after that transfer of the system.DeclarationFor the purposes of subsection (2), the Minister may declare any agency operating a water distribution, sewerage or drainage system for or on behalf of a municipality to be a municipality.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34.
DefinitionsIn this section,certified institutioninstitution titulaire de certificatcertified institution means a non-profit organization or charity that holds a valid and subsisting certificate issued under subsection (2);charityorganisme de bienfaisancecharity has the meaning assigned by subsection 149.1(1) of the Income Tax Act;MinisterministreMinister means the Minister of National Health and Welfare;non-profit organizationorganisation sans but lucratifnon-profit organization means a club, society or association described in paragraph 149(1)(l) of the Income Tax Act;prescribedVersion anglaise seulementprescribed means prescribed by the Minister;previously certified institutioninstitution déjà titulaire de certificatpreviously certified institution means a non-profit organization or charity that holds a valid and subsisting certificate issued under this section, as it read immediately before February 11, 1988;specified dayjour spécifiéspecified day meansin relation to a certified institution, the later ofthe day specified in the certificate pursuant to subsection (3), andthe first day of April preceding the day on which the application for the certificate was received by the Minister, andin relation to a previously certified institution, the later ofthe day specified in the certificate pursuant to this section, as it read immediately before February 11, 1988, andthe first day of April preceding the day on which the application for the certificate was received by the Minister.Issue of certificateOn application in the prescribed form and manner and containing the prescribed information, the Minister may issue a certificate to the applicant for the purposes of this section, if the Minister is satisfied that the applicant is a non-profit organization or charitywhose principal purpose is to provide care, of such type as the Governor in Council may prescribe by regulation on the recommendation of the Minister and the Minister of Finance,to children, or to aged, infirm or incapacitated persons, who are in need of care on a continuous or regular basis, andon its own premises by means of qualified persons in sufficient numbers in relation to the type of care provided; orwhose only purpose is to provide administrative services solely to one or more non-profit organizations or charities having the principal purpose described in paragraph (a) and holding a certificate under this subsection.Terms of certificateA certificate under subsection (2) shall be in the prescribed form andshall certify that, as of a day specified in the certificate, the non-profit organization or charity to which it is issued meets the conditions referred to in that subsection; andif the non-profit organization or charity carries on operations at more than one location, shall specify the location for which it is issued.Revocation of new certificateWhere the Minister believes on reasonable grounds that the holder of a certificate under subsection (2) did not meet the conditions referred to in that subsection at the time it was issued or has since ceased to meet those conditions, the Minister may, by notice sent to the holder, revoke the certificate effective as of any day on or after the day on which the certificate was issued to the holder or the holder ceased to meet those conditions, as the case may be.Revocation of old certificateWhere the Minister believes on reasonable grounds that the holder of a certificate under this section, as it read immediately before February 11, 1988, does not meet the conditions referred to in subsection (2), the Minister may, by notice sent to the holder, revoke the certificate effective as of any day on or after which the holder did not meet those conditions.Payment where use by certified or previously certified institutionsWhere tax under Part VI has been paid in respect of any goods and a certified institution or previously certified institution has purchased the goods on or after the specified day for the sole use of the institution and not for resale and met the conditions referred to in subsection (2) at the time of the purchase, an amount equal to the amount of that tax shall, subject to this Part, be paid to that institution if it applies therefor within two years after it purchased the goods.Payment where use by certified or previously certified institutions prior to certificationWhere tax under Part VI has been paid in respect of any goods and a non-profit organization or charity to which a certificate was subsequently issued under subsection (2) or this section, as it read immediately before February 11, 1988, or a person acting on behalf of such an organization or charity, has purchased the goods within two years before the specified day for the sole use of the organization or charity and not for resale and the organization or charity was constructing a building for its own use at the time of the purchase, an amount equal to the amount of that tax shall, subject to this Part, be paid to that organization or charity if it applies therefor within two years after the day on which the certificate was issued to the organization or charity.ExceptionWhere a certificate under subsection (2) specifies a location for which it is issued or a certificate issued under this section, as it read immediately before February 11, 1988, specifies an address of the holder of the certificate, no amount shall be paid pursuant to subsection (6) or (7) to the certified institution or previously certified institution unless the goods were purchased for the sole use of that institution at that location or address and not for resale.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34, c. 12 (4th Supp.), ss. 26, 27;
1999, c. 31, ss. 232, 246(F).
Payment where use by hospital cleaning establishmentsWhere tax under Part VI has been paid in respect of any goods and the goods have been purchased for the sole purpose of constructing, equipping or operating an establishmentthat is wholly owned, directly or indirectly, by or on behalf of one or more bona fide public hospitals each of which has been certified as such by the Department of Health, andthat is established for the sole purpose of providing laundry services, cleaning services or linen supply services to one or more hospitals described in paragraph (a),an amount equal to the amount of that tax shall, subject to this Part, be paid to that establishment if it applies therefor within two years after the goods were purchased.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34;
1999, c. 31, s. 85.
Payment where use by educational institutionsWhere tax under Part VI has been paid in respect of any materials and the materials have been purchased by or on behalf ofa school, university or other similar educational institution for use exclusively in the construction of a building for that institution,any organization for use exclusively in the construction of a building for that organization that is to be used exclusively or mainly as a public library operated by or on behalf of that organization on a non-commercial basis, ora corporation wholly owned and controlled by Her Majesty in right of a province that is established for the sole purpose of providing residences for students of universities or other similar educational institutions, for use exclusively in the construction of those residences,an amount equal to the amount of that tax shall, subject to this Part, be paid to that institution, organization or corporation if it applies therefor within two years after the materials were purchased.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34.
Definition of incinerator goodsIn this section, incinerator goods meansmaterials for use exclusively in the construction of, ormachinery or apparatus, including equipment to be installed in a chimney or smoke stack, and repair and replacement parts therefor, for use directly and exclusively in the operation ofan incinerator owned or to be owned by a municipality and used or to be used primarily for the incineration of waste for the municipality, but does not include motor vehicles, attachments therefor or office equipment.Payment where use in incineratorsWhere tax under Part VI has been paid in respect of any incinerator goods and the goods have been purchased by or on behalf of a municipality for the sole use of the municipality and not for resale, an amount equal to the amount of that tax shall, subject to this Part, be paid to that municipality if it applies therefor within two years after that purchase of the goods.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34.
Definition of qualified goodsIn this section, qualified goods means the goods mentioned in Part XIII of Schedule III, but does not includephotocopiers or other office type reproduction equipment for use by persons whose principal business is not printing; andfor greater certainty, goods that are expressly excluded or not included in that Part.Payment where use by small manufacturerWhere tax under Part VI has been paid in respect of any qualified goods and the goods have been purchased or imported by a person of a class prescribed pursuant to subsection (3) for the sole use of that person and not for resale, an amount equal to the amount of that tax shall, subject to this Part, be paid to that person if he applies therefor within two years after that purchase or importation of the goods.RegulationsThe Governor in Council may, on the joint recommendation of the Minister of Finance and the Minister of National Revenue, make regulations prescribing any class of small manufacturer or producer for the purposes of this section.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34.
Payment where tourist literature printedWhere tax under Part VI has been paid in respect of any printed matter that has been produced or purchased in Canada by a board of trade, chamber of commerce, municipal or automobile association or other similar organization, or by or on the order of a government, or a department, agency or representative of a government, and that is made available to the general public without charge for the promotion of tourism, an amount equal to the amount of that tax shall, subject to this Part, be paid to the organization, or to the government, department, agency or representative, if it applies therefor within two years after the printed matter was so produced or purchased.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 34, c. 42 (2nd Supp.), s. 7.
Payment where motor fuel purchased by diplomatsWhere taxes under Parts III and VI have been paid in respect of gasoline or diesel fuel purchased by a diplomat for his personal or official use, an amount equal to the amount of the taxes shall, subject to this Part, be paid to the diplomat if the diplomat applies therefor within two years after the purchase of the gasoline or diesel fuel.Designation orderThe Governor in Council, on the recommendation of the Minister of Foreign Affairs certifying that Canadian diplomats posted in a foreign country are granted relief from tax on gasoline or diesel fuel, may, by order, designate the foreign country for the purposes of this section.Definition of diplomatIn this section, diplomat means a person referred to in section 2 of Part II of Schedule III who represents a country designated by an order made under subsection (2).
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 42 (2nd Supp.), s. 8;
1995, c. 5, s. 25.
DefinitionsIn this section,air carriertransporteur aérienair carrier in a calendar year, means a person who is a carrier in the year and whose gross revenue for the year is derived primarily from the business of providing eligible air transportation services;aviation fuelcarburant aviationaviation fuel does not include aviation gasoline;aviation rebate limitplafond de la remise aux transporteurs aériensaviation rebate limit of a particular air carrier for a calendar year, meanswhere at every time in the year no other air carrier is related to the particular air carrier, $20,000,000, andin any other case, the amount that the particular air carrier and all other persons (in this paragraph referred to as “related air carriers”) each of which is an air carrier in the year and is related to the particular air carrier at any time in the year allocate, in an agreement in prescribed form filed with the Minister with the application described in paragraph (3.1)(b), to the particular air carrier for the year, provided thatif the total of the amounts so allocated for the year to the particular air carrier and all related air carriers is greater than $20,000,000, each amount so allocated is deemed to be nil, andif the particular air carrier and all related air carriers fail to file an agreement under this paragraph for the year, the Minister may allocate an amount to one or more of them for the year, which amount or the total of which amounts shall not exceed $20,000,000, and any amount so allocated by the Minister is deemed to have been so allocated by the particular air carrier and all related air carriers in such an agreement;carriertransporteurcarrier in a calendar year means a person whose gross revenue for the year is derived primarily from the business of providing eligible transportation services and who is not exempt for any period in the year from taxation under Part I of the Income Tax Act by reason of section 149 of that Act;eligible air transportation servicesservice de transport aérien admissibleeligible air transportation services means the carriage by aircraft of passengers or goods or both;eligible transportation servicesservice de transport admissibleeligible transportation services means the carriage of passengers or goods or both, by aircraft, boat, bus, truck or train, or a combination thereof;fuelcombustiblefuel means diesel fuel and aviation fuel in respect of which the tax under Part III has been paid and cannot be recovered under any other section of this Act;fuel tax rebateremise de taxe sur le combustiblefuel tax rebate means an amount payable under subsection (2), (3) or (3.1);gross revenuerevenu brutgross revenue for a calendar year of a person meanswhere the person is a taxpayer within the meaning of the Income Tax Act, the gross revenue of the person under that Act for all taxation years of the person ending in the year, andin any other case, the amount that, for the purposes of that Act, would be the gross revenue of the person for all taxation years of the person ending in the year if the person were a corporation;ineligible usefin inadmissibleineligible use means any use other than the provision of eligible transportation services for commercial purposes or, where a rebate is paid under subsection (3.1), any use other than the provision of eligible air transportation services for commercial purposes, and for greater certainty the sale of fuel is an ineligible use;taxation yearannée d’impositiontaxation year of a person meanswhere the person is a taxpayer within the meaning of the Income Tax Act, the taxation year of the person for the purposes of that Act, andin any other case, the period that would be the taxation year of the person for the purposes of that Act if the person were a corporation;truckercamionneurtrucker in a calendar year means a person whose gross revenue for the year is derived primarily from the business of providing carriage of goods by truck and who is not exempt for any period in the year from taxation under Part I of the Income Tax Act by reason of section 149 of that Act.Deemed not relatedFor the purposes of this section, a corporation that is a Canadian-controlled private corporation within the meaning of subsection 125(7) of the Income Tax Act and another corporation to which it would otherwise be related at any time are deemed not to be related to each other at that time where the corporations are not associated with each other at that time within the meaning of subsection 127(1).Fuel tax rebate for carriersWhere a person who is a carrier in a calendar yearhas, in the year, purchased in Canada or imported fuel for use by the carrier solely in the provision of eligible transportation services,applies before July 1993 to the Minister in prescribed form containing prescribed information for a fuel tax rebate in respect of that fuel, andhas not applied under subsection (3) for a fuel tax rebate in respect of any fuel purchased or imported in the year,a fuel tax rebate equal to three cents for each litre of the fuel shall, subject to this Part, be paid to the carrier.Alternative rebate for truckersWhere a person who is a trucker in a calendar yearhas, in the year, purchased in Canada or imported fuel for use by the trucker solely in the provision of eligible transportation services,applies before July 1993 to the Minister in prescribed form containing prescribed information for a fuel tax rebate in respect of that fuel, andhas not applied under subsection (2) for a fuel tax rebate in respect of any fuel purchased or imported in the year,a fuel tax rebate equal to the lesser of an amount equal to one and one-half cents for each litre of the fuel and $500 shall be paid to the trucker.Aviation rebateWhere a person who is an air carrier in a calendar yearhas, in the year, purchased in Canada or imported aviation fuel for use by the person solely in the provision of eligible air transportation services, andapplies to the Minister, before the end of the sixth month following the end of the year in prescribed form for a fuel tax rebate in respect of that fuel,the Minister shall, subject to this Part, pay a fuel tax rebate to the person equal to the lesser of four cents for each litre of that fuel and the person’s aviation rebate limit for the year.Limitation on rebatesNo fuel tax rebate shall be paid under this sectionin respect of fuel used or to be used for an ineligible use;where subsection (2) or (3) applies, in respect of fuel that is purchased or imported by the carrier or trucker, as the case may be, before 1991 or after 1992;where subsection (3.1) applies, in respect of fuel that is purchased or imported by the air carrier before 1996 or after 1999; orto a person who is or has been bankrupt or to the trustee in bankruptcy of the person in respect of any fuel purchased or imported by the person or the trustee before the person is discharged from the bankruptcy.IdemNot more than one application for a fuel tax rebate in respect of fuel purchased or imported in a calendar year may be made by any person.Diverting fuel to ineligible usesWhere a fuel tax rebate is paid to a person under this section in respect of fuel and the person uses the fuel for an ineligible use, the amount of the rebate paid is deemed to be a tax payable under Part III by the person at the time the fuel is so used.Repayment of rebateSubject to subsections (8) and (9), a person to whom a fuel tax rebate was paid under subsection (2) or (3.1) may repay to the Receiver General all or part of the rebate.Time for repaymentA repayment made under subsection (7) in respect of a fuel tax rebate paid to a person in a taxation year of the person shall be made within the 90 day period that begins on any day on which the Minister sends to the person a notice of assessment of tax payable under Part I of the Income Tax Act by the person for the year, a notice of determination under subsection 152(1.1) of that Act in respect of the person for the year or a notification that no tax is payable under that Part by the person for the year.Application of subsections 79(1) to (1.2)Where a person repays under subsection (7) all or a part of a fuel tax rebate, subsections 79(1) to (1.2) apply, with such modifications as the circumstances require, as ifthe repayment were a payment of tax payable under Part III;the person had defaulted in paying the tax within the time prescribed by subsection 78(4);subsection 78(4) had required the tax to be paid on or beforein the case of a rebate under subsection (3.1), the later of January 1, 2000 and the last day of the month in which the person received the rebate, andin any other case, the last day of the month in which the person received the rebate; andthe reference in paragraph 79(1)(a) to “a penalty of one-half of one per cent and interest at the prescribed rate” were read as a reference to “a penalty equal to the prescribed rate of interest”.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1992, c. 29, s. 1;
1997, c. 26, s. 81.
DefinitionsThe definitions in this subsection apply in this section.eligible shipnavire admissibleeligible ship means a ship that is a tug, ferry or passenger ship engaged in trade on an inland voyage and that is not proceeding outside Canada other than toa part that lies within the United States of any lake or river a part of which is included in the inland waters of Canada, orLake Michigan; andis not engaged in international trade.inland voyagevoyage en eaux internesinland voyage means a voyage (other than a minor waters voyage) on the inland waters of Canada, together with those parts that lie within the United States of any lake or river included in the inland waters of Canada; oron Lake Michigan.inland waters of Canadaeaux internes du Canadainland waters of Canada means all the rivers, lakes and other navigable fresh waters within Canada, and includes the St. Lawrence River as far seaward as a straight line drawn from Cap des Rosiers to West Point Anticosti Island; andfrom Anticosti Island to the north shore of the St. Lawrence River along the meridian of longitude sixty-three degrees west.minor waters of Canadaeaux secondaires du Canadaminor waters of Canada means all inland waters of Canada (other than Lake Ontario, Lake Erie, Lake Huron including Georgian Bay, Lake Superior and the St. Lawrence River east of a line drawn from Father Point to Point Orient) and includes all bays, inlets and harbours of or on those lakes or Georgian Bay. minor waters voyagevoyage en eaux secondairesminor waters voyage means a voyage within the minor waters of Canada together with those parts that lie within the United States of any lake or river included in the minor waters of Canada. rebate periodpériode de remiserebate period means the period that begins on June 1, 2002 and that ends on December 31, 2002;that begins on January 1, 2003 and that ends on December 31, 2003; orthat begins on January 1, 2004 and that ends on December 31, 2004.Rebate in respect of fuel for eligible shipIf a person purchases or intends to purchase fuel that is, or is to be, used by the person to operate or maintain an eligible ship during a rebate period, subject to this Part, the Minister shall, on application by the person, pay to the person a rebate for the period determined in accordance with subsection (3).Determination of rebateThe amount of the rebate payable to a person under subsection (2) for a rebate period is equal toif the amount applied for is based on an estimate, acceptable to the Minister and made within any period specified by the Minister, of the quantity of fuel that is, or is to be, purchased after May 2002 by the person and is, or is to be, used by the person to operate or maintain an eligible ship during the rebate period, the total amount of tax under Part III that would be imposed on that fuel; orin any other case, the total amount of tax under Part III imposed on fuel that is purchased by the person after May 2002 and is used by the person to operate or maintain an eligible ship during the rebate period.One application per periodA person shall not file more than one application (other than an application referred to in paragraph (8)(b)) under this section for any rebate period.Reconciliation reportIf a person is paid a rebate for a rebate period based on an estimate referred to in paragraph (3)(a), the person shall, not later than 60 days after the end of the period, file with the Minister in prescribed manner a reconciliation report in prescribed form that indicatesthe amount of the rebate paid to the person; andthe amount of tax under Part III imposed on the fuel purchased by the person after May 2002 and used by the person to operate or maintain an eligible ship during the rebate period.Extension for filingThe Minister may at any time, in writing, extend the time required by subsection (5) for filing a reconciliation report.Effect of extension for filingIf the Minister has, under subsection (6), extended the time required by subsection (5) for filing a reconciliation reportthe report shall be filed within the time so extended; andany amount of excess rebate that is required to be paid within the time otherwise required by subsection (9) shall be paid within the time so extended.[Repealed, 2003, c. 15, s. 97]Additional amount payable to rebate recipientIf a person files a reconciliation report for a rebate period and the amount referred to in paragraph (5)(b) exceeds the amount referred to in paragraph (5)(a) in respect of the period,the Minister shall pay to the person an amount equal to that excess amount; andthe filing of the reconciliation report is deemed to be an application to the Minister for payment of that excess amount.Liability for excess rebate and interest up to due date of reconciliationIf the rebate paid to a person for a rebate period is determined on the basis of an estimate referred to in paragraph (3)(a) and the amount paid exceeds the amount referred to in paragraph (5)(b) in respect of the period, the person shall pay to the Receiver Generalon or before the day on or before which the reconciliation report for the rebate period is required to be filed, an amount (in this section referred to as the “excess rebate”) equal to that excess amount; andinterest at the prescribed rate in respect of the excess rebate for the period beginning on the first day after the day on which the rebate is paid to the person and ending on the earlier of the day on which the excess rebate is paid to the Receiver General and the day on or before which the reconciliation report is required to be filed.Failure to file a report when requiredEvery person who fails to file a reconciliation report for a period as and when required under this section shall pay a penalty equal to the sum ofan amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the period and was not paid before April 1, 2007, andthe amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from that day to the day on which the report is filed.Deemed tax liabilityThe portion of the total of the excess rebate payable by a person in respect of a rebate period, and of the interest payable by the person under paragraph (9)(b), that is outstanding at the end of the day on or before which the reconciliation report for the period is required to be filed is deemed to be an amount of tax payable under this Act that is required to be, and that has not been, paid by the person on or before that day.[Repealed, 2003, c. 15, s. 97]RestrictionThe Minister shall not, at a particular time, pay an amount to a person under this section unless the person hasfiled with the Minister all reconciliation reports for rebate periods ending before that time for which a rebate was paid to the person that was based on an estimate referred to in paragraph (3)(a); andpaid all excess rebates in respect of rebate periods ending before that time and any interest that has accrued to that time.Limitation periodAn application may not be made under subsection (2) after December 31, 2006.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2002, c. 22, s. 428;
2003, c. 15, s. 97;
2006, c. 4, s. 125.
Previous VersionDefinitionsIn this section,in bulken vracin bulk, in respect of a sale of gasoline or diesel fuel, meansin a quantity of five hundred litres or more, where the gasoline or diesel fuel is delivered to the purchaser at a retail outlet of the vendor, andin any quantity, in any other case;loggingopérations forestièreslogging means the felling, limbing, bucking and marking of trees, construction of logging roads, off-highway transportation of logs to a mill-pond or mill yard, log salvaging and reforestation, but does not include any production activity on logs after transportation to a mill-pond or mill yard;mineral resourceressource minéralemineral resource meansa base or precious metal deposit,a coal deposit, ora mineral deposit in respect of whichthe Minister of Natural Resources has certified that the principal mineral extracted is an industrial mineral contained in a non-bedded deposit,the principal mineral extracted is sylvite, halite or gypsum, orthe principal mineral extracted is silica that is extracted from sandstone or quartzite;miningopérations minièresmining means the extracting of minerals from a mineral resource, the processing of ore, other than iron ore, from a mineral resource to the prime metal stage or its equivalent, the processing of iron ore from a mineral resource to the pellet stage or its equivalent and the restoration of strip-mined land to a usable condition, but does not include activities related to the exploration for or development of a mineral resource;qualifiedadmissiblequalified, in respect of a farmer, fisherman, hunter, trapper or other person, means a farmer, fisherman, hunter, trapper or person who holds a sales tax bulk permit issued under regulations made pursuant to subsection (10);registered vendorvendeur enregistréregistered vendor means a person who is registered under regulations made pursuant to subsection (10).Fuel tax rebate to vendorWhere gasoline or diesel fuel has been sold by a licensed manufacturer or licensed wholesaler to[Repealed, R.S., 1985, c. 42 (2nd Supp.), s. 9]a qualified fisherman for commercial fishing,a qualified hunter for commercial hunting,a qualified trapper for commercial trapping,a qualified person for use in logging, ora qualified person for use in mining,for the sole use of the purchaser and not for resale and the taxes imposed by Parts III and VI are payable in respect of the sale, the manufacturer or wholesaler may, in such circumstances and on such terms and conditions as the Minister may prescribe, deduct, within two years after the sale, a fuel tax rebate in an amount calculated in accordance with subsections (8) and (8.01) from the amount of any payment of any tax, penalty, interest or other sum that the manufacturer or wholesaler is liable or is about to become liable to make under those Parts or under this Part in respect of taxes under those Parts.Fuel tax rebate to vendor selling to farmerWhere gasoline or diesel fuel has been sold by a licensed manufacturer or licensed wholesaler to a qualified farmer for farming purposes, for the sole use of the qualified farmer and not for resale and the tax imposed by Parts III and VI is payable in respect of the sale, the manufacturer or wholesaler may, in such circumstances and on such terms and conditions as the Minister may prescribe, deduct, within two years after the sale, a fuel tax rebate in an amount calculated in accordance with subsections (8.1) and (8.2) from the amount of any payment of any tax, penalty, interest or other sum that the manufacturer or wholesaler is liable or is about to become liable to make under those Parts or under this Part in respect of tax under those Parts.ConditionNo deduction shall be made by a licensed manufacturer or licensed wholesaler under subsection (2) or (2.1) unless the manufacturer or wholesaler has reduced the amount charged for the gasoline or diesel fuel to the purchaser by an amount equal to the amount of the deduction and the amount of the reduction is shown separately on an invoice for the sale given to the purchaser by the manufacturer or wholesaler.Fuel tax rebate to registered vendorWhere gasoline or diesel fuel has been sold in bulk by a registered vendor to[Repealed, R.S., 1985, c. 42 (2nd Supp.), s. 9]a qualified fisherman for commercial fishing,a qualified hunter for commercial hunting,a qualified trapper for commercial trapping,a qualified person for use in logging, ora qualified person for use in mining,for the sole use of the purchaser and not for resale and the taxes imposed by Parts III and VI have been paid or are payable in respect of the gasoline or fuel, a fuel tax rebate in an amount calculated in accordance with subsections (8) and (8.01) shall, subject to this Part, be paid to that registered vendor if he applies therefor within two years after he sold the gasoline or fuel.Fuel tax rebate to registered vendor selling to farmerWhere gasoline or diesel fuel has been sold in bulk by a registered vendor to a qualified farmer for farming purposes, for the sole use of the qualified farmer and not for resale and the tax imposed by Parts III and VI has been paid or is payable in respect of the gasoline or fuel, a fuel tax rebate in an amount calculated in accordance with subsections (8.1) and (8.2) shall, subject to this Part, be paid to that registered vendor if he applies therefor within two years after the sale of the gasoline or fuel.ConditionNo fuel tax rebate shall be paid to a registered vendor under subsection (4) or (4.1) unless the registered vendor has reduced the amount charged for the gasoline or diesel fuel to the purchaser by an amount equal to the amount of the fuel tax rebate applied for and the amount of the reduction is shown separately on an invoice for the sale given to the purchaser by the registered vendor.Fuel tax rebate to purchaser or importerWhere gasoline or diesel fuel has been sold to or imported by[Repealed, R.S., 1985, c. 42 (2nd Supp.), s. 9]a fisherman for commercial fishing,a hunter for commercial hunting,a trapper for commercial trapping,a person for use in logging, ora person for use in mining,for the sole use of the purchaser or importer and not for resale and the taxes imposed by Parts III and VI have been paid or are payable in respect of the gasoline or fuel and, in the case of a sale, the amount charged therefor has not been reduced in accordance with subsection (3) or (5), a fuel tax rebate in an amount calculated in accordance with subsections (8) and (8.01) shall, subject to this Part, be paid to that purchaser or importer if he applies therefor within two years after he purchased or imported the gasoline or fuel.Fuel tax rebate to farmerWhere gasoline or diesel fuel has been sold to or imported by a farmer for farming purposes, for the sole use of the farmer for farming purposes and not for resale and the tax imposed by Parts III and VI has been paid or is payable in respect of the gasoline or fuel and, in the case of a sale, the amount charged therefor has not been reduced in accordance with subsection (3) or (5), a fuel tax rebate in an amount calculated in accordance with subsections (8.1) and (8.2) shall, subject to this Part, be paid to that farmer if he applies therefor within two years after the purchase or importation of the gasoline or fuel.LimitationSubsections (2), (2.1), (4), (4.1), (6) and (6.1) do not apply in respect of gasoline or diesel fuelthat is to be used to propel a vehicle on a public highway;that is to be used other than for a commercial purpose; orthat is sold or importedon or after January 1, 1990, in respect of the tax imposed by Part III, oron or after January 1, 1991, in respect of the tax imposed by Part VI.Amount of fuel tax rebate: Part VIFor the purposes of subsections (2), (4) and (6), the amount of the fuel tax rebate in respect of the tax imposed by Part VI shall be calculated at such rate, not exceeding five cents, per litre of gasoline or diesel fuel sold or imported as the Governor in Council may, on the recommendation of the Minister of Finance, prescribe by order or, if no rate is so prescribed, at the rate of three cents per litre of gasoline or diesel fuel sold or imported.Amount of fuel tax rebate: Part IIIFor the purposes of subsections (2), (4) and (6), the amount of the fuel tax rebate in respect of the tax imposed by Part III shall be calculatedin the case of gasoline, at the rate ofone cent per litre, where the gasoline was sold or imported on or after January 1, 1988 and before April 1, 1988, andtwo cents per litre, where the gasoline was sold or imported on or after April 1, 1988 and before January 1, 1990; andin the case of diesel fuel, at the rate of one cent per litre, where the diesel fuel was sold or imported on or after January 1, 1988 and before January 1, 1990.Farmers’ rate: Part VIFor the purposes of subsections (2.1), (4.1) and (6.1), the amount of the fuel tax rebate in respect of the tax imposed by Part VI shall be calculated at such rate, not exceeding five cents, per litre of gasoline or diesel fuel sold or imported as the Governor in Council may, on the recommendation of the Minister of Finance, prescribe by order or, if no rate is so prescribed, at the rate of three and one-half cents per litre of gasoline or diesel fuel sold or imported.Farmers’ rate: Part IIIFor the purposes of subsections (2.1), (4.1) and (6.1), the amount of the fuel tax rebate in respect of the tax imposed by Part III shall be calculatedin the case of gasoline, at the rate ofthree cents per litre, where the gasoline was sold or imported on or after January 1, 1987 and before January 1, 1988,four cents per litre, where the gasoline was sold or imported on or after January 1, 1988 and before April 1, 1988, andfive cents per litre, where the gasoline was sold or imported on or after April 1, 1988 and before January 1, 1990; andin the case of diesel fuel, at the rate ofthree cents per litre, where the diesel fuel was sold or imported on or after January 1, 1987 and before January 1, 1988, andfour cents per litre, where the diesel fuel was sold or imported on or after January 1, 1988 and before January 1, 1990.DiversionWhere the amount charged for gasoline or diesel fuel to a purchaser is reduced in accordance with subsection (3) or (5) or a payment is made under subsection (6) or (6.1) to a purchaser or importer of gasoline or diesel fuel and that person sells the gasoline or fuel or uses it for a purpose for which the reduction or payment could not, at the time of the purchase or importation, have been made, the amount of the reduction or payment shall be deemed to be a tax under this Act payable by that person,where that person sells the gasoline or fuel, at the time of delivery thereof to the purchaser from him; andwhere that person uses the gasoline or fuel, at the time of the use.RegulationsThe Governor in Council may make regulationsauthorizing the issue of sales tax bulk permits to farmers, fishermen, hunters, trappers or other persons who use gasoline or diesel fuel for a purpose described in subsection (2) or (2.1) and prescribing the terms and conditions of the permits;prescribing the records to be maintained and returns to be filed by farmers, fishermen, hunters, trappers or other persons holding sales tax bulk permits;prescribing the times at which returns referred to in paragraph (b) are to be filed;authorizing the cancellation of any sales tax bulk permit where any term or condition of that permit is not complied with or where any provision of this Act or the regulations applicable to the person holding the permit is not complied with; andproviding for a system of registration by the Minister of persons who regularly sell in bulk gasoline or diesel fuel to qualified farmers, qualified fishermen, qualified hunters, qualified trappers or qualified persons engaged in logging or mining, including, without limiting the generality of the foregoing,the form and manner of applying for, and the procedure for granting, registration,the terms and conditions on which registration may be granted, andthe authorization of the Minister to cancel any registration where any term or condition of the registration is not complied with or where any provision of this Act or the regulations applicable to the registered vendor is not complied with.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 69;
R.S., 1985, c. 7 (2nd Supp.), ss. 24, 34, c. 42 (2nd Supp.), s. 9, c. 42 (3rd Supp.), s. 1, c. 12 (4th Supp.), s. 28;
1989, c. 22, s. 4;
1994, c. 41, s. 37.
Drawback on certain goodsOn application, the Minister may, under regulations of the Governor in Council, grant a drawback of the tax imposed under Part III and paid on or in respect ofgoods exported from Canada;goods supplied as ships’ stores;goods used for the equipment, repair or reconstruction of ships or aircraft; orgoods delivered to telegraph cable ships proceeding on an ocean voyage for use in laying or repairing oceanic telegraph cables outside Canadian waters.Specific sumThe Minister may, under regulations of the Governor in Council, pay a specific sum in lieu of a drawback under subsection (1) in any case where a specific sum in lieu of a drawback of duties is granted under section 117 of the Customs Tariff.Drawback on imported goodsOn application, the Minister of Public Safety and Emergency Preparedness may, under section 113 of the Customs Tariff, grant a drawback of the tax imposed under Part III and paid on or in respect of goods imported into Canada.Application for drawbackAn application for a drawback under subsection (1) shall be made in the prescribed form and contain the prescribed information and shall be filed with the Minister within such time and in such manner as the Governor in Council may, by regulation, prescribe.EvidenceNo drawback shall be granted under subsection (1) unless the person applying for the drawback provides such evidence in support of the application as the Minister may require.[Repealed, 2002, c. 22, s. 381]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 70;
R.S., 1985, c. 7 (2nd Supp.), ss. 25, 34, 75;
1991, c. 42, s. 4;
1993, c. 25, s. 62;
1995, c. 41, s. 114;
1996, c. 31, s. 81;
2002, c. 22, ss. 381, 429(F);
2005, c. 38, ss. 101, 145.
Previous VersionDefinitionsIn this section,adjustmentredressementadjustment to the sale price of goods means the giving of a discount, allowance, rebate or other amount as a reduction in the sale price;other enactmentautre texteother enactment meansa provision of an Act of Parliament, other than this Act, enacted before 1991, ora provision of a regulation or order enacted under an Act of Parliament before 1991;refundremboursementrefund of tax meansa refund of that tax, or other payment calculated with reference to that tax, provided for under any of sections 68, 68.1, 68.17, 68.19, 68.2 or 68.23 to 68.3,a drawback of that tax, or payment in lieu of a drawback of that tax, provided for under section 70, ora refund, rebate, drawback or remission of that tax, or other payment in respect of or calculated with reference to that tax, provided for under any other enactment;registrantinscritregistrant has the meaning assigned by subsection 123(1);taxtaxetax means tax imposed under Part VI.Adjustments after 1990A refund of tax shall not be paid to a person (in this subsection referred to as the “vendor”) in respect of an adjustment made after 1990 to the sale price of goods sold by the vendor to a purchaser unlessthe vendor sold the goods to the purchaser under an agreement in writing, paid tax in respect of the sale of the goods, calculated on the sale price, and granted the adjustment within two years after the day on or before which the vendor was required to pay the tax under section 78; andthe adjustment is provided for in the agreement and the making of the adjustment is not dependent on the performance of any service or other act by the purchaser.Exports after 1990A refund of tax provided for under section 68.1 or 70 or any other enactment in respect of goods exported from Canada shall not be paid to a person in respect of goods exported by the person after 1990 unlessthe person had possession of the goods in Canada at the end of 1990 and was not a registrant on January 1, 1991; orthe person imported the goods, had possession of the goods in Canada at the end of 1990 and was not entitled to be paid a rebate in respect of the goods under section 120, and the goods suffered damage or deterioration at any time before the goods were released, were of inferior quality to those in respect of which the person paid tax, were defective or were not the goods ordered by the person.Goods sold after 1990A refund of tax provided for under section 68.17, 68.2 or 70 or any other enactment in respect of goods sold or otherwise supplied or transferred by a person to a purchaser or other transferee shall not be paid to the person unless the person transferred ownership or possession of the goods to the purchaser or other transferee of the goods before 1991.Goods for use by a provinceA refund of tax shall not be paid under section 68.19 in respect of goods supplied, transferred or delivered to, or purchased by, Her Majesty in right of a province unlessHer Majesty in that right acquired ownership or possession of the goods before 1991; orthe goods were supplied or transferred to Her Majesty in that right by a person in the course of performing services under an agreement in writing with Her Majesty in that right and the person had possession of the goods in Canada at the end of 1990 and was not entitled to be paid a rebate in respect of the goods under section 120.System goods acquired after 1990A refund of tax shall not be paid under section 68.23 to a person in respect of system goods unless the person acquired ownership or possession of the goods before 1991 and was not entitled to be paid a rebate in respect of the goods under section 120.Goods acquired by certain organizations after 1990A refund of tax shall not be paid under any of sections 68.24 to 68.27 to a person (in this subsection referred to as the “organization”) unlessin the case of goods purchased by the organization, the organization acquired ownership or possession of the goods before 1991; orin the case of goods acquired or used by another person for a purpose for which a refund of tax to the organization is provided for under that section, the other person acquired ownership or possession of the goods before 1991 and was not entitled to be paid a rebate in respect of the goods under section 120.Other goods acquired after 1990A refund of tax in respect of goods purchased or otherwise acquired by a person shall not be paid under any of sections 68.28 to 68.3 or 70 or any other enactment to the person unless the person acquired ownership or possession of the goods before 1991.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 3.
Statutory recovery rights onlyExcept as provided in this or any other Act of Parliament, no person has a right of action against Her Majesty for the recovery of any moneys paid to Her Majesty that are taken into account by Her Majesty as taxes, penalties, interest or other sums under this Act.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 71;
R.S., 1985, c. 7 (2nd Supp.), ss. 26, 34.
Definition of applicationIn this section, application means an application under any of sections 68 to 69.Form and contents of applicationAn application shall be made in the prescribed form and contain the prescribed information.Filing of applicationAn application shall be filed with the Minister in any manner that the Governor in Council may, by regulation, prescribe.DeterminationOn receipt of an application, the Minister shall, with all due dispatch, consider the application and determine the amount, if any, payable to the applicant.Minister not boundIn considering an application, the Minister is not bound by any application or information supplied by or on behalf of any person.Notice and paymentAfter considering an application, the Minister shallsend to the applicant a notice of determination in the prescribed form setting outthe date of the determination,the amount, if any, payable to the applicant,a brief explanation of the determination, where the Minister rejects the application in whole or in part, andthe period within which an objection to the determination may be made under section 81.17; andpay to the applicant the amount, if any, payable to him.Interest on paymentIf an amount is paid to an applicant under subsection (6), the Minister shall pay interest at the prescribed rate to the applicant on the amount for the period beginning on the day that is 30 days after the day on which the application was received by the Minister and ending on the day on which the amount is paid.[Repealed, 2003, c. 15, s. 98]Determination valid and bindingA determination under subsection (4), including a determination varied under section 81.17, subject to being varied or vacated on an objection or appeal under this Part and subject to an assessment, shall be deemed to be valid and binding notwithstanding any irregularity, informality, error, defect or omission therein or in any proceeding under this Act relating thereto.IrregularitiesNo determination under subsection (4) shall be varied or vacated on an appeal by reason only of an irregularity, informality, error, defect or omission by any person in the observance of any directory provision of this Act.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 72;
R.S., 1985, c. 7 (2nd Supp.), ss. 27, 34;
1994, c. 29, s. 8;
2001, c. 16, s. 30;
2003, c. 15, s. 98.
Deductions of tax, other than Part I tax, where no applicationAny person authorized pursuant to subsection (4) who files a return under section 20, 21.32 or 78 and to whom an amount would be payable under any of sections 68 to 68.153 or 68.17 to 69 if that person duly applied therefor on the day on which he files the return, in lieu of applying for that amount, may in that return report that amount and deduct it or any part thereof from the amount of any payment or remittance of tax, penalty, interest or other sum that is reported in that return.Deductions of Part I taxAny person who makes a return under subsection 5(1) and to whom an amount would be payable under section 68 if the person duly applied therefor on the day on which that return is made, in lieu of applying for that amount, may in that return report that amount and deduct it or any part thereof from the amount of any payment of tax, penalty, interest or other sum that is reported in that return.Subsequent deductionsWhere a person reports an amount in accordance with subsection (1) or (2) and does not deduct the whole amount in the return in which it is reported, the person may, in any subsequent return, report the amount not previously deducted under this section and deduct it or any part thereof from the amount of any payment or remittance of tax, penalty, interest or other sum that is reported in that subsequent return.Authorizations and termsThe Minister may, in writing,authorize a specified person, a person of a specified class of persons or persons generally to make deductions under subsections (1) and (3) either generally or with respect to any transaction of a specified class of transactions;amend an authorization made pursuant to paragraph (a) or suspend or revoke any such authorization either generally or with respect to a specified person or a person of a specified class of persons; andspecify the terms and conditions on which, and the manner in which, deductions may be made under subsection (1), (2) or (3).PresumptionWhere a person deducts an amount under this section,the person is deemed to have paid, on the day he filed or made the return in which the amount was deducted, an amount equal to that amount on account of his tax, penalty, interest or other sum payable under this Act in respect of the period for which the return was filed or made; andthe Minister is deemed to have paid, on that day, an amount equal to that amount to that person in accordance with section 72.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 73;
R.S., 1985, c. 7 (2nd Supp.), ss. 28, 34, c. 12 (4th Supp.), s. 29.
[Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 34]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), ss. 29, 34.
Deductions of tax, other than Part I tax, where applicationIn lieu of making a payment, other than a payment in respect of Part I, pursuant to an application under any of sections 68 to 68.11 or 68.17 to 69, the Minister may, on request of the applicant, authorize the applicant to deduct, on such terms and conditions and in such manner as the Minister may specify, the amount that would otherwise be paid to the applicant from the amount of any payment or remittance of tax, penalty, interest or other sum that is reported in a return under section 78 by the applicant.Notification of applicantWhere the Minister authorizes an applicant to make a deduction under subsection (1), the Minister shall notify the applicant to that effect in the notice of determination sent to the applicant.Interest on deductionIf a deduction is authorized under subsection (1), interest shall be authorized at the prescribed rate as a deduction in accordance with that subsection for the period beginning on the day that is 30 days after the day on which the application for the payment in respect of which the deduction was authorized was received by the Minister and ending on the day on which the notice of determination was sent.[Repealed, 2003, c. 15, s. 99]PresumptionWhere an applicant deducts an amount under this section,the applicant is deemed to have paid, on the day he filed the return in which the amount was deducted, an amount equal to that amount on account of his tax, penalty, interest or other sum payable under this Act in respect of the period for which the return was filed; andthe Minister is deemed to have paid, on the day the notice of determination is sent to the applicant, an amount equal to that amount to the applicant in accordance with section 72.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 74;
R.S., 1985, c. 7 (2nd Supp.), s. 34, c. 12 (4th Supp.), s. 30;
1997, c. 26, s. 69;
2001, c. 16, s. 31;
2003, c. 15, s. 99.
Recovery of deduction from licenseeWhere a licensee makes a deduction under section 73 or 74 in lieu of receiving a payment pursuant to section 68.15, subsection 68.15(3) applies, with such modifications as the circumstances require, with respect to the amount of the deduction as if it were a refunded amount within the meaning of that subsection.Recovery of deduction from licensed manufacturerWhere a licensed manufacturer makes a deduction under section 73 or 74 in lieu of receiving a payment pursuant to section 68.21, subsection 68.21(3) applies, with such modifications as the circumstances require, with respect to the amount of the deduction as if it were a refunded amount within the meaning of that subsection.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 75;
R.S., 1985, c. 7 (2nd Supp.), ss. 30, 34.
[Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 34]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 25, c. 7 (2nd Supp.), ss. 31, 34.
[Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 34]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 25, c. 7 (2nd Supp.), ss. 32, 34.
Calculation of payment or deductionWhere circumstances render it difficult to determine the exact amount of any payment that may be made pursuant to any of sections 68 to 68.29 or any deduction that may be made under section 73 or 74, the Minister, with the consent of the person to whom the payment or by whom the deduction may be made, may in lieu of that amount make a payment pursuant to, or authorize a deduction under, that section in an amount determined, in such manner as the Governor in Council may by regulation prescribe, to be the exact amount of the payment or deduction.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 76;
R.S., 1985, c. 15 (1st Supp.), s. 25, c. 7 (2nd Supp.), s. 34.
Restriction on refunds and creditsA refund shall not be paid, and a credit shall not be allowed, to a person under this Act until the person has filed with the Minister all returns and other records of which the Minister has knowledge that are required to be filed under the Excise Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act and the Income Tax Act.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 77;
R.S., 1985, c. 15 (1st Supp.), s. 25, c. 7 (2nd Supp.), ss. 33, 34;
2006, c. 4, s. 126.
Previous VersionReturns and Payment of TaxDetermination of fiscal monthsThe fiscal months of a person shall be determined in accordance with the following rules:if fiscal months of the person have been determined under subsection 243(2) or (4) for the purposes of Part IX, each of those fiscal months is a fiscal month of the person for the purposes of this Act;if fiscal months of the person have not been determined under subsection 243(2) or (4) for the purposes of Part IX, the person may select for the purposes of this Act fiscal months that meet the requirements set out in subsection 243(2); andif neither paragraph (a) nor paragraph (b) applies, each calendar month is a fiscal month of the person for the purposes of this Act.Determination of fiscal half-yearsThe fiscal half-years of a person shall be determined in accordance with the following rules:the period beginning on the first day of the first fiscal month in a fiscal year of the person and ending on the earlier of the last day of the sixth fiscal month and the last day in the fiscal year is a fiscal half-year of the person; andthe period, if any, beginning on the first day of the seventh fiscal month and ending on the last day in the fiscal year of the person is a fiscal half-year of the person.Notification of MinisterEvery person who is required to file a return shall notify the Minister of their fiscal months in the prescribed form and manner.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 78;
R.S., 1985, c. 15 (1st Supp.), s. 26, c. 7 (2nd Supp.), s. 35, c. 12 (4th Supp.), s. 31;
2001, c. 16, s. 32;
2002, c. 22, s. 382;
2003, c. 15, ss. 100, 130;
2010, c. 25, s. 128.
Previous VersionReporting period — generalSubject to this section, the reporting period of a person is a fiscal month.Reporting period — semi-annualOn application in the prescribed form and manner by a person, the Minister may, in writing, authorize the reporting period of that person to be a fiscal half-year in a particular fiscal year ifthe person has been required to pay tax under Part III, or has been holding a licence granted under or in respect of that Part, for a period exceeding twelve consecutive fiscal months;the total of all taxes payable under Part III by the person and any person associated with the person in the fiscal year ending immediately before the particular fiscal year did not exceed $120,000;the total of all taxes payable under Part III by the person and any person associated with the person in the particular fiscal year does not exceed $120,000; andthe person is in compliance with this Act.Deemed revocationAn authorization under subsection (2) is deemed to be revoked if the total of all taxes payable under Part III by the person and any person associated with the person exceeds $120,000 in a fiscal year, which revocation is effective as of the first day after the end of the fiscal half-year in which the excess occurs.Revocation — otherThe Minister may revoke an authorization ifthe person requests in writing the Minister to do so;the person fails to comply with this Act; orthe Minister considers that the authorization is no longer required.Notice of revocationIf the Minister revokes an authorization under subsection (4), the Minister shall send a notice in writing of the revocation to the person and shall specify in the notice the fiscal month for which the revocation becomes effective.Deemed reporting period on revocationIf a revocation under subsection (4) becomes effective before the last day of a fiscal half-year of a person that is authorized under subsection (2), the period beginning on the first day of the fiscal half-year and ending immediately before the first day of the fiscal month for which the revocation becomes effective is deemed to be a reporting period of the person.
2010, c. 25, s. 129.
Returns and paymentsEvery person who is required to pay tax under Part III and every person who holds a licence granted under or in respect of that Part shall, not later than the last day of the first month after each reporting period of the person,file a return with the Minister, in the prescribed form and manner, for that reporting period;calculate, in the return, the total amount of the tax payable, if any, by the person for that reporting period, andpay that amount to the Receiver General.[Repealed, 2010, c. 25, s. 130]Demand for returnThe Minister may, by a demand served personally or by registered or certified mail, require a person to file within any reasonable time that may be stipulated in the demand a return under this Act for any period that may be designated in the demand.Failure to answer a demandEvery person who fails to file a return as and when required under a demand issued under subsection (4) is liable to a penalty of $250.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 79;
R.S., 1985, c. 15 (1st Supp.), s. 26, c. 7 (2nd Supp.), s. 36, c. 12 (4th Supp.), s. 32;
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2003, c. 15, s. 100;
2006, c. 4, s. 128.
Previous VersionAmounts owing of $2 or less in totalIf the Minister determines, at any time, that the total of all amounts owing by a person to Her Majesty in right of Canada under this Act does not exceed two dollars, those amounts are deemed to be nil.Amounts payable of $2 or less in totalIf, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada. However, if the person, at that time, does not owe any amount to Her Majesty in right of Canada, those amounts payable are deemed to be nil.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2003, c. 15, s. 100;
2006, c. 4, s. 129.
Previous VersionCompound interest on amounts not paid when requiredIf a person fails to pay an amount to the Receiver General as and when required under this Act, the person shall pay to the Receiver General interest on the amount. The interest shall be compounded daily at the prescribed rate and computed for the period beginning on the first day after the day on which the amount was required to be paid and ending on the day on which the amount is paid.Payment of interest that is compoundedFor the purposes of subsection (1), interest that is compounded on a particular day on an unpaid amount of a person is deemed to be required to be paid by the person to the Receiver General at the end of the particular day, and, if the person has not paid the interest so computed by the end of the day after the particular day, the interest shall be added to the unpaid amount at the end of the particular day.Period where interest not payableDespite any other provision of this Act, if the Minister notifies a person that the person is required to pay a specified amount under this Act and the person pays the specified amount in full before the end of the period that the Minister specifies with the notice, interest is not payable on the specified amount for the period.Interest and penalty amounts of $25 or lessIf, at any time, a person pays an amount not less than the total of all amounts, other than interest and penalty under subsection 7(1.1) or 68.5(9.1) or section 95.1, owing at that time to Her Majesty in right of Canada under this Act for a reporting period of the person and the total amount of interest and penalty payable by the person under this Act for that reporting period is not more than $25.00, the Minister may cancel the interest and penalty.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2003, c. 15, s. 100;
2006, c. 4, s. 130.
Previous VersionCompound interest on amounts owed by Her MajestyInterest shall be compounded daily at the prescribed rate on any amount payable by the Minister to a person. The interest shall be computed for the period beginning on the first day after the day on which the amount is required to be paid and ending on the day on which the amount is paid or is applied against an amount owed by the person to Her Majesty in right of Canada, unless this Act provides otherwise.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2003, c. 15, s. 100.
Application of interest provisions if Act amendedFor greater certainty, if a provision of an Act amends this Act and provides that the amendment comes into force on, or applies as of, a particular day that is before the day on which the provision is assented to, the provisions of this Act that relate to the calculation and payment of interest apply in respect of the amendment as though the provision had been assented to on the particular day.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2003, c. 15, s. 100.
[Repealed, 2006, c. 4, s. 131]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 33;
1999, c. 31, s. 247;
2002, c. 22, s. 384;
2003, c. 15, ss. 101, 130;
2006, c. 4, s. 131.
Previous VersionFiling of return by mailIf a person who is required under this Act to file a return with the Minister does so by mailing the return, the return is deemed to have been filed with the Minister on the day on which the return was mailed and the date of the postmark is evidence of that day.Payment or remittance of amountsA person who is required under this Act to pay or remit an amount to the Receiver General shall not be considered as having paid or remitted the amount until it is received by the Receiver General.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 12 (4th Supp.), s. 33;
1999, c. 17, ss. 150(E), 156;
2003, c. 15, s. 102.
Report by licence holdersEvery person holding a licence in respect of Part III shall submit to the Minister each year, within six months after the end of that person’s fiscal year, a report in the prescribed form containing details of that person’s sales, taxes paid under this Act and deductions under subsection 69(2) in the fiscal year and any other prescribed information.Alternate reportingAny person filing a return under section 79 may, in lieu of submitting a report under subsection (1), include in the return a report in the prescribed form containing details of the person’s sales, taxes paid under this Act and deductions under subsection 69(2) in the period to which the return relates and any other prescribed information.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 80;
R.S., 1985, c. 15 (1st Supp.), s. 27, c. 7 (2nd Supp.), s. 37, c. 12 (4th Supp.), s. 34;
1990, c. 45, s. 11;
2002, c. 22, s. 385;
2003, c. 15, s. 103.
SecuritySecurity generallyThe Minister may, if he considers it advisable in a particular case, accept security for the payment of any tax, penalty, interest or other sum that is or may become payable under this Act.Security on objection or appealWhere a person is making an objection to or appealing from an assessment, the Minister shall accept adequate security furnished by or on behalf of that person for the payment of any tax, penalty, interest or other sum that is in controversy.Surrender of securityWhere a person who has furnished security, or on whose behalf security has been furnished, under this section requests in writing that the Minister surrender the security or any part thereof, the Minister shall surrender the security to the extent that the value thereof exceeds the amount, at the time the request is received by the Minister, of any tax, penalty, interest or other sum for the payment of which the security was furnished.Discharge of securityThe Minister may discharge in writing any security accepted by the Minister pursuant to this section.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 37.
Obligation of TrusteesCertificate before distributionEvery executor, liquidator of a succession, administrator, assignee, liquidator or other like person, other than a trustee in bankruptcy, shall, before distributing any assets under his control in that capacity, obtain a certificate from the Minister certifying that no tax, penalty, interest or other sum under this Act, other than Part I, chargeable against or payable by that person in that capacity or chargeable against or payable in respect of those assets, remains unpaid or that security for the payment thereof has, in accordance with section 80.1, been accepted by the Minister.Personal liabilityAny person who distributes assets without a certificate as required by subsection (1) is personally liable to pay to Her Majesty an amount equal to the lesser ofthe value of the assets so distributed, andthe amount of any tax, penalty, interest or other sum that remains unpaid and for the payment of which security has not been furnished to the Minister.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 81;
R.S., 1985, c. 15 (1st Supp.), s. 28, c. 7 (2nd Supp.), s. 38;
2001, c. 17, s. 234.
AssessmentsAssessmentThe Minister may, in respect of any matter, assess a person for any tax, penalty, interest or other sum payable by that person under this Act and may, notwithstanding any previous assessment covering, in whole or in part, the same matter, make such additional assessments as the circumstances require.ReassessmentThe Minister may, in respect of any matter covered by an assessment, vary the assessment or reassess the person assessed.Completion of assessmentAn assessment shall be completed with all due dispatch and may be performed in such manner and form and by such procedure as the Minister considers appropriate.Minister not boundThe Minister is not bound by any return, application or information supplied by or on behalf of any person and may make an assessment, notwithstanding any return, application or information so supplied or that no return, application or information has been supplied.Determination of refundsIn making an assessment, the Minister may determine whether an amount is payable to the person being assessed pursuant to any of sections 68 to 68.29.PresumptionFor the purposes of determining, in making an assessment, whether an amount is payable to the person being assessed pursuant to any of sections 68 to 68.29, the person is deemed to have duly made an application under the section on the day on which the notice of assessment is sent to him.Determination of creditsIn making an assessment, the Minister may determine whether a credit may be allowed to the person being assessed pursuant to subsections (8) to (10).When credit may be allowedWhere an amount would be payable to the person being assessed pursuant to any of sections 68 to 68.29if that person had duly made an application under the section on the day on which the notice of assessment is sent to him, andif the reference in the section to “two years” were read as a reference to “four years”,a credit in that amount may be allowed to that person.Maximum credits allowableThe aggregate of the credits that may be allowed to the person being assessed shall not exceed the aggregate of the taxes, interest, penalty or other sums, if any, remaining unpaid by that person for the period beginning four years before the day on which the notice of assessment is sent to him and ending immediately before two years before that day.RestrictionNo credit may be allowed for any amount that the Minister, pursuant to subsection (5), determines is payable to the person being assessed.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38.
Sums not assessableNo assessment shall be made for any penalty or fine imposed pursuant to a conviction for an offence under this Act.Limitation period for assessmentsSubject to subsections (3) to (5), no assessment shall be made for any tax, penalty, interest or other sum more than four years after the tax, penalty, interest or sum became payable under this Act.Exception where objection or appealA variation of an assessment, or a reassessment, may be made at any time pursuant to subsection 81.15(4) or 81.38(1).Exception where neglect or fraudAn assessment in respect of any matter may be made at any time where the person to be assessed has, in respect of that matter,made a misrepresentation that is attributable to his neglect, carelessness or wilful default; orcommitted fraud in filing or making or failing to file or make a return, or in supplying or failing to supply any information, under this Act.Exception where waiverAn assessment in respect of any matter specified in a waiver filed pursuant to subsection (6) may be made at any time within the period specified in the waiver or, if a notice of revocation of the waiver has been filed pursuant to subsection (7), within the period commencing on the day on which the period specified in the waiver commences and ending six months after the day on which the notice is filed.Filing waiverAny person may, within the time otherwise limited by subsection (2) for assessing that person, waive the application of that subsection to him by filing with the Minister a waiver in the prescribed form specifying the period for which, and the matter in respect of which, the person waives the application of that subsection.Revoking waiverAny person who has filed a waiver pursuant to subsection (6) may revoke the waiver on six months notice to the Minister by filing with the Minister a notice of revocation of the waiver in the prescribed form.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38.
Liability not affectedLiability under this Act for any tax, penalty, interest or other sum is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made.Valid and bindingAn assessment, subject to being varied or vacated on an objection or appeal under this Part and subject to a reassessment, shall be deemed to be valid and binding notwithstanding any irregularity, informality, error, defect or omission therein or in any proceeding under this Act relating thereto.IrregularitiesNo assessment shall be vacated or varied on an appeal by reason only of an irregularity, informality, error, defect or omission on the part of any person in the observance of any directory provision of this Act.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38.
Notice of assessmentAfter completing an assessment, otherwise than pursuant to subsection 81.15(4) or 81.38(1), the Minister shall send to the person assessed a notice of assessment in the prescribed form setting outthe date of the assessment;the matter covered by the assessment;the amount owing or overpayment, if any, by the person assessed;a brief explanation of the assessment; andthe period within which an objection to the assessment may be made under section 81.15.Tax payableWhere an assessment establishes that any tax, penalty, interest or other sum payable under this Act remains unpaid by the person assessed, the notice of assessment shall set out separately the taxes, penalties, interest and other sums payable and the aggregate thereof.Refund payableWhere an assessment establishes that an amount is payable pursuant to any of sections 68 to 68.29 to the person assessed, the notice of assessment shall set out the aggregate of the amounts payable.Credit allowableWhere an assessment establishes that a credit is allowable pursuant to section 81.1 to the person assessed, the notice of assessment shall set out the aggregate of the credits allowable.No tax, refund or creditWhere an assessment establishes thatno tax, penalty, interest or other sum payable under this Act remains unpaid by the person assessed,no amount is payable pursuant to any of sections 68 to 68.29 to the person assessed, orno credit is allowable pursuant to section 81.1 to the person assessed,in respect of the matter covered by the assessment, the notice of assessment shall contain a statement to that effect.Amounts not consideredFor the purposes of determining the sums, amounts and credits referred to in subsections (2) to (5), where the assessment is a variation of an assessment, or a reassessment, no amount paid by the person assessed or the Minister on account of the amount owing or overpayment as set out in the notice of the original assessment or any subsequent assessment related thereto, and no amount deemed by subsection 81.14(2) to have been paid, shall be taken into consideration.DefinitionsFor the purposes of this section and section 81.14,amount owingmontant dûamount owing, in respect of a person assessed, meanswhere the assessment is an original assessment, the amount by whichthe aggregate of all taxes, penalties, interest and other sums remaining unpaid by that person, as set out in the notice of assessment pursuant to subsection (2),exceedsthe aggregate ofall amounts payable to that person, as set out in the notice of assessment pursuant to subsection (3), andthe credits allowable to that person, as set out in the notice of assessment pursuant to subsection (4), andwhere the assessment is a variation of an assessment, or a reassessment, the amount by whichthe amount obtained by subtractingthe amount paid by that person on account of the amount owing as set out in the notice of the original assessment or any subsequent assessment related theretofromthe aggregate of all taxes, penalties, interest and other sums remaining unpaid by that person, as set out in the notice of the varied assessment or reassessment pursuant to subsection (2),exceedsthe amount obtained by subtractingthe amount paid to that person pursuant to subsection 81.14(1) in respect of an overpayment as set out in the notice of the original assessment or any subsequent assessment related theretofromthe aggregate ofall amounts payable to that person, as set out in the notice of the varied assessment or reassessment pursuant to subsection (3), andthe credits allowable to that person, as set out in the notice of the varied assessment or reassessment pursuant to subsection (4);overpaymentpaiement en tropoverpayment, in respect of a person assessed, meanswhere the assessment is an original assessment, the amount by which the aggregate described in subparagraph (a)(ii) of the definition amount owing in this subsection exceeds the aggregate described in subparagraph (a)(i) of that definition, andwhere the assessment is a variation of an assessment, or a reassessment, the amount by which the amount described in subparagraph (b)(ii) of that definition exceeds the amount described in subparagraph (b)(i) of that definition.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38.
Payment by Minister on assessmentWhere an assessment establishes that there is an overpayment by the person assessed, the Minister shall pay to that person the amount of the overpayment as set out in the notice of assessment.PresumptionWhere an assessment establishes that an amount is payable pursuant to any of sections 68 to 68.29, or a credit is allowable pursuant to section 81.1, to the person assessed,that person is deemed to have paid, on the day on which the notice of assessment is sent to him, an amount equal to the lesser ofwhere the assessment is an original assessment, the aggregates described in subparagraphs (a)(i) and (ii) of the definition amount owing in subsection 81.13(7), andwhere the assessment is a variation of an assessment, or a reassessment, the amounts described in subparagraphs (b)(i) and (ii) of that definitionon account of the person’s tax, penalty, interest or other sum payable under this Act in respect of the matter covered by the assessment; andthe Minister is deemed to have paid, on that day, to the person assessed in accordance with section 72 the amount, if any, by which the amount deemed by paragraph (a) to have been paid exceeds the aggregate of the credits described in clause (a)(ii)(B) or subclause (b)(ii)(B)(II), as the case may be, of that definition.No deemed double paymentsSubsection (2) ceases to apply in respect of an assessment if the assessment is subsequently vacated or varied or a reassessment is made in respect of any matter covered by the assessment but, for greater certainty, subject to this subsection, where the assessment is varied or the reassessment is made otherwise than pursuant to subsection 81.15(4) or 81.38(1), subsection (2) applies in respect of the varied assessment or the reassessment, as the case may be.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38.
ObjectionsObjection to assessmentAny person who has been assessed, otherwise than pursuant to subsection (4) or 81.38(1), and who objects to the assessment may, within ninety days after the day on which the notice of assessment is sent to him, serve on the Minister a notice of objection in the prescribed form setting out the reasons for the objection and all relevant facts on which that person relies.ServiceService of a notice of objection on the Minister shall be effected by prepaid mail addressed to the Minister at Ottawa.Acceptance of other serviceThe Minister may accept a notice of objection notwithstanding that it was not served in accordance with subsection (2).Consideration of objectionSubject to section 81.21, on receipt of a notice of objection, the Minister shall, with all due dispatch, reconsider the assessment and vacate, vary or confirm the assessment or make a reassessment.Notice of decisionAfter reconsidering an assessment, the Minister shall send to the person objecting a notice of decision in the prescribed form setting outthe date of the decision;the amount owing or overpayment by the person objecting, where the Minister varies the assessment or makes a reassessment;a brief explanation of the decision; andthe period within which an appeal may be made under section 81.19 or 81.2.Tax payableWhere the variation of an assessment, or a reassessment, on an objection establishes that any tax, penalty, interest or other sum payable under this Act remains unpaid by the person objecting, the notice of decision shall set out separately the taxes, penalties, interest and other sums payable and the aggregate thereof.Refund payableWhere the variation of an assessment, or a reassessment, on an objection establishes that an amount is payable pursuant to any of sections 68 to 68.29 to the person objecting, the notice of decision shall set out the aggregate of the amounts payable.Credit allowableWhere the variation of an assessment, or a reassessment, on an objection establishes that a credit is allowable pursuant to section 81.1 to the person objecting, the notice of decision shall set out the aggregate of the credits allowable.No tax, refund or creditWhere the variation of an assessment, or a reassessment, on an objection establishes thatno tax, penalty, interest or other sum payable under this Act remains unpaid by the person objecting,no amount is payable pursuant to any of sections 68 to 68.29 to the person objecting, orno credit is allowable pursuant to section 81.1 to the person objecting,in respect of the matter covered by the varied assessment or reassessment, the notice of decision shall contain a statement to that effect.Amounts not consideredFor the purposes of determining the sums, amounts and credits referred to in subsections (6) to (9), no amount paid by the person objecting or the Minister on account of the amount owing or overpayment as set out in the notice of assessment, and no amount deemed by subsection 81.14(2) to have been paid, shall be taken into consideration.DefinitionsFor the purposes of this section and section 81.16,amount owingmontant dûamount owing, in respect of a person objecting, means the amount by whichthe amount obtained by subtractingthe amount paid by that person on account of the amount owing as set out in the notice of assessmentfromthe aggregate of all taxes, penalties, interest and other sums remaining unpaid by that person, as set out in the notice of decision pursuant to subsection (6)exceedsthe amount obtained by subtractingthe amount paid to that person pursuant to subsection 81.14(1)fromthe aggregate ofall amounts payable to that person, as set out in the notice of decision pursuant to subsection (7), andthe credits allowable to that person, as set out in the notice of decision pursuant to subsection (8);overpaymentpaiement en tropoverpayment, in respect of a person objecting, means the amount by which the amount described in paragraph (b) of the definition amount owing in this subsection exceeds the amount described in paragraph (a) of that definition.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38.
Payment by Minister on objectionWhere the variation of an assessment, or a reassessment, on an objection establishes that there is an overpayment by the person objecting, the Minister shall pay to that person the amount of the overpayment as set out in the notice of decision.PresumptionWhere the variation of an assessment, or a reassessment, on an objection establishes that an amount is payable pursuant to any of sections 68 to 68.29, or a credit is allowable pursuant to section 81.1, to the person objecting,that person is deemed to have paid, on the day on which the notice of decision is sent to him, an amount equal to the lesser of the amounts described in paragraphs (a) and (b) of the definition amount owing in subsection 81.15(11) on account of the person’s tax, penalty, interest or other sum payable under this Act in respect of the matter covered by the varied assessment or reassessment; andthe Minister is deemed to have paid, on that day, to the person assessed in accordance with section 72 the amount, if any, by which the amount deemed by paragraph (a) to have been paid exceeds the aggregate of the credits described in clause (b)(ii)(B) of that definition.No deemed double paymentsSubject to subsection 81.38(2), subsection (2) ceases to apply in respect of an assessment if the assessment is subsequently vacated or varied or a reassessment is made in respect of any matter covered by the assessment.Interest on reassessmentSubject to subsection (5), if an amount is paid under subsection (1), interest at the prescribed rate shall be paid, in respect of each day between the date of the notice of the assessment that is the subject of the objection and the day on which the payment was sent.Interest on amount paid by personIf a person has paid an amount on account of the amount owing as set out in a notice of assessment and a payment is made to that person under subsection (1) on an objection to the assessment, interest at the prescribed rate shall be paid, in respect of each day between the day on which the amount was paid by that person and the day on which the payment was sent to that person.[Repealed, 2003, c. 15, s. 104]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38;
2003, c. 15, s. 104.
Objection to determinationAny person who has made an application under any of sections 68 to 69 and who objects to the determination of the Minister respecting the application may, within ninety days after the day on which the notice of determination is sent to that person, serve on the Minister a notice of objection in the prescribed form setting out the reasons for the objection and all relevant facts on which that person relies.ServiceService of a notice of objection on the Minister shall be effected by prepaid mail addressed to the Minister at Ottawa.Acceptance of other serviceThe Minister may accept a notice of objection notwithstanding that it was not served in accordance with subsection (2).Consideration of objectionSubject to section 81.21, on receipt of a notice of objection, the Minister shall, with all due dispatch, reconsider the determination and vacate, vary or confirm the determination.Notice of decisionAfter reconsidering a determination, the Minister shall send to the person objecting a notice of decision in the prescribed form setting outthe date of the decision;the amount payable, if any, to the person objecting;a brief explanation of the decision, where the Minister rejects the objection in whole or in part; andthe period within which an appeal may be taken under section 81.19 or 81.2.Definition of “amount payable”For the purposes of this section and section 81.18, amount payable, in respect of a person objecting, means the amount by whichthe aggregate of all amounts payable to that person pursuant to sections 68 to 69exceedsthe amount paid to that person pursuant to subsection 72(6) or authorized to be deducted by that person pursuant to subsection 74(1).
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38.
Payment by MinisterSubject to subsection (2), where the reconsideration of a determination on an objection establishes that there is an amount payable to the person objecting, the Minister shall pay to that person the amount payable as set out in the notice of decision.Authorization of deductionWhere the reconsideration of a determination on an objection establishes that there is an amount payable to the person objecting and that person has, in the application that is the subject of the reconsideration, requested the Minister to authorize a deduction under subsection 74(1), the Minister may, in the notice of decision, authorize that person to deduct that amount in accordance with that subsection.Interest on refund paymentsIf an amount is paid under subsection (1), interest at the prescribed rate shall be paid, in respect of each day between the day that is 30 days after the day on which the application that is the subject of the reconsideration was received by the Minister and the day on which the payment is sent.Interest on refund deductionsIf a deduction is authorized under subsection (2), interest at the prescribed rate shall be authorized as a deduction in accordance with subsection 74(1), calculated in respect of each day between the day that is 30 days after the day on which the application was received by the Minister and the day on which the notice of decision was sent.[Repealed, 2003, c. 15, s. 105]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38;
2003, c. 15, s. 105.
Rights of AppealAppeal to Tribunal from assessment or determination of MinisterAny person who has served a notice of objection under section 81.15 or 81.17, other than a notice in respect of Part I, may, within ninety days after the day on which the notice of decision on the objection is sent to him, appeal the assessment or determination to the Tribunal.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52.
Appeal to Court from assessment or determination of MinisterAny person who has served a notice of objection under section 81.15 or 81.17, other than a notice in respect of Part I, may, in lieu of appealing to the Tribunal under section 81.19, appeal the assessment or determination to the Federal Court at any time when, under section 81.19, that person could have appealed to the Tribunal.IdemAny person who has served a notice of objection under section 81.15 or 81.17 in respect of Part I may, within ninety days after the day on which the notice of decision on the objection is sent to him, appeal the assessment or determination to the Federal Court.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52;
2002, c. 8, s. 183.
Previous VersionAppeal to Tribunal or Court from assessment or determination of MinisterAny person who has served a notice of objection under section 81.15 or 81.17, other than a notice in respect of Part I, and who states therein that he waives reconsideration of the assessment or determination to which the notice relates and wishes to appeal the assessment or determination directly to the Tribunal or to the Federal Court may so appeal if the Minister consents thereto.Appeal to Court from assessment or determination of MinisterAny person who has served a notice of objection under section 81.15 or 81.17 in respect of Part I and who states therein that he waives reconsideration of the assessment or determination to which the notice relates and wishes to appeal the assessment or determination directly to the Federal Court may so appeal if the Minister consents thereto.Copy of notice filedWhere the Minister consents to an appeal pursuant to subsection (1) or (2), the Minister shall file a copy of the notice of objection with the Tribunal or Federal Court, as the case may be, and send a notice of his action to the person who has served the notice of objection.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52;
2002, c. 8, s. 183.
Previous VersionAppeal to Tribunal or Court where no decisionWhere a person has served a notice of objection under section 81.15 or 81.17, other than a notice in respect of Part I, and the Minister has not sent a notice of his decision to that person within one hundred and eighty days after the notice of objection was served, that person may appeal the assessment or determination to which the notice relates to the Tribunal or the Federal Court.Appeal to Court where no decisionWhere a person has served a notice of objection under section 81.15 or 81.17 in respect of Part I and the Minister has not sent a notice of his decision to that person within one hundred and eighty days after the notice of objection was served, that person may appeal the assessment or determination to which the notice relates to the Federal Court.LimitationNo appeal may be instituted pursuant to this section after the Minister has sent a notice of decision to the person who served the notice of objection.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52;
2002, c. 8, s. 183.
Previous VersionAppeal to Tribunal or Federal CourtWhere a person has served a notice of objection under section 81.15 in respect of an assessment and thereafter the Minister, otherwise than pursuant to subsection 81.15(4) or 81.38(1), varies the assessment or makes a reassessment in respect of any matter covered by the assessment and sends to that person a notice of assessment in respect of the varied assessment or reassessment, that person may, without serving a notice of objection to the varied assessment or reassessment,appeal the varied assessment or reassessment to the Tribunal or the Federal Court in accordance with section 81.19 or 81.2, as the case may be, as if the notice of assessment were a notice of decision of the Minister; orif an appeal has been instituted in respect of the assessment, amend the appeal by joining thereto an appeal in respect of the varied assessment or reassessment in such manner and on such terms, if any, as the Tribunal or the court hearing the appeal, as the case may be, deems appropriate.IdemWhere a person has appealed an assessment under section 81.22 and thereafter the Minister, pursuant to subsection 81.15(4), varies the assessment or makes a reassessment in respect of any matter covered by the assessment and sends to that person a notice of decision in respect of the varied assessment or reassessment, that person may, without serving a notice of objection to the varied assessment or reassessment, amend the appeal by joining thereto an appeal in respect of the varied assessment or reassessment in such manner and on such terms, if any, as the Tribunal or the Federal Court, as the case may be, deems appropriate.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52;
2002, c. 8, s. 183.
Previous VersionAppeal to Court from decision of TribunalAny party to an appeal to the Tribunal under section 81.19, 81.21, 81.22 or 81.23 may, within one hundred and twenty days after the day on which the decision of the Tribunal is sent to that party, appeal the decision to the Federal Court.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52;
2002, c. 8, s. 183.
Previous VersionAppeals to TribunalNotice to CommissionerWhere an appeal to the Tribunal is instituted otherwise than pursuant to subsection 81.21(1), the Tribunal shall send a notice of the appeal to the Commissioner at Ottawa.Material sent to TribunalOn the receipt of a notice of an appeal under subsection (1) or the filing of a notice of objection with the Tribunal under subsection 81.21(3), the Commissioner shall send to the Tribunal copies of all returns, applications, notices of assessment, notices of objection, notices of decision and notifications, if any, that are relevant to the appeal.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52;
1999, c. 17, s. 155.
Hearing of appealThe Tribunal may hear an appeal under this Part in private if, on application by any party to the appeal, the Tribunal is satisfied that the circumstances of the case justify the hearing being so held.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52.
Disposition of appealAfter hearing an appeal under this Part, the Tribunal may dispose of the appeal by making such finding or declaration as the nature of the matter may require and by making an orderdismissing the appeal; orallowing the appeal in whole or in part and vacating or varying the assessment or determination or referring it back to the Minister for reconsideration.CostsNo costs may be awarded by the Tribunal on the disposition of an appeal.Decision of TribunalA decision of the Tribunal disposing of an appeal shall be recorded in writing and include the reasons for the decision, and a copy thereof shall forthwith be sent to the parties to the appeal.Penalty where no reasonable grounds for appeal to TribunalWhere the Tribunal disposes of an appeal in respect of an assessment or where such an appeal to the Tribunal is discontinued or dismissed without a hearing, the Tribunal may, on application by the Minister, order the person instituting the appeal to pay to the Receiver General an amount not exceeding ten per cent of the amount that was in controversy, if the Tribunal determines that there were no reasonable grounds for the appeal and that one of the main purposes for instituting or maintaining the appeal was to defer the payment of any tax, penalty, interest or other sum payable under this Act.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52.
Appeals to CourtInstitution of appeal to CourtAn appeal to the Federal Court under section 81.2, 81.22 or 81.24 shall be institutedin the case of an appeal by a person, other than the Minister, in the manner set out in section 48 of the Federal Courts Act; andin the case of an appeal by the Minister, in the manner provided by the rules made under the Federal Courts Act for the commencement of an action.Counter-claim or cross-demandIf the respondent in an appeal under section 81.24 from a decision of the Tribunal desires to appeal that decision, the respondent may do so, whether or not the time fixed by that section has expired, by a counter-claim or cross-demand instituted in accordance with the Federal Courts Act and the rules made under that Act.ProcedureAn appeal to the Federal Court under this Part is deemed to be an action in the Federal Court to which the Federal Courts Act and the rules made under that Act applicable to an ordinary action apply, except as varied by special rules made in respect of such appeals and except thatthe rules concerning joinder of parties and causes of action do not apply except to permit the joinder of appeals under this Part;a copy of a notice of objection filed with the Federal Court under subsection 81.21(3) is deemed to be a statement of claim that is filed with the Court by the person serving the notice and served by that person on the Minister on the day it was so filed by the Minister; anda copy of a notice of objection filed by the Minister pursuant to subsection 81.21(3) or an originating document filed by the Minister pursuant to subsection (1) shall be served in the manner provided in subsection (4).ServiceWhere a copy of a notice of objection is filed by the Minister pursuant to subsection 81.21(3) or an originating document is filed by the Minister pursuant to subsection (1) and he files two copies or additional copies thereof, together with a certificate as to the latest known address of the other party to the appeal, an officer of the Court shall, after verifying the accuracy of the copies, forthwith on behalf of the Minister serve the copy of the notice of objection or the originating document, as the case may be, on that other party by sending the copies or additional copies thereof by registered or certified letter addressed to that other party at the address set out in the certificate.CertificateWhere copies have been served on a party pursuant to subsection (4), a certificate signed by an officer of the Court as to the date of filing and the date of mailing of the copies shall be transmitted to the office of the Deputy Attorney General of Canada and is evidence of the date of filing and the date of service of the documents referred to therein.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52;
2002, c. 8, s. 137.
Previous VersionNotice to TribunalWhere an appeal is instituted to the Federal Court from a decision of the Tribunal, the Court shall send a notice of the appeal to the Tribunal.Material sent to Federal CourtOn the receipt of a notice of an appeal under subsection (1), the Tribunal shall send to the Court all material filed with or sent to the Tribunal in connection with the appeal, together with a transcript of the record of proceedings before the Tribunal.IdemWhere an appeal is instituted to the Federal Court from an assessment or determination, the Commissioner shall send to the Court copies of all returns, applications, notices of assessment, notices of objection, notices of decision and notifications, if any, that are relevant to the appeal.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52;
1999, c. 17, s. 155;
2002, c. 8, s. 183.
Previous VersionHearing of appealThe Federal Court may hear an appeal under this Part in private if, on application by any party to the appeal, the Court is satisfied that the circumstances of the case justify the hearing being so held.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38;
2002, c. 8, s. 183.
Previous VersionDisposition of appealAfter hearing an appeal under this Part, the Federal Court may dispose of the appeal by making such order, judgment, finding or declaration as the nature of the matter may require including, without limiting the generality of the foregoing, an orderdismissing the appeal; orallowing the appeal in whole or in part and vacating or varying the assessment or determination or referring it back to the Minister for reconsideration.OrderSubject to subsection (3), on the disposition of an appeal, the Federal Court may order payment or repayment of any tax, penalty, interest, sum or costs.CostsWhere the amount in dispute on an appeal by the Minister, other than by way of counter-claim or cross-demand, from a decision of the Tribunal does not exceed ten thousand dollars, the Minister, on disposition of the appeal, shall pay all reasonable and proper costs of the other party to the appeal in connection therewith.Penalty where no reasonable grounds for appeal to CourtWhere the Federal Court disposes of an appeal in respect of an assessment or where such an appeal to the Court is discontinued or dismissed without a hearing, the Court may, on application by the Minister and whether or not the Court awards costs, order the person instituting the appeal to pay to the Receiver General an amount not exceeding ten per cent of the amount that was in controversy, if the Court determines that there were no reasonable grounds for the appeal and that one of the main purposes for instituting or maintaining the appeal was to defer the payment of any tax, penalty, interest or other sum payable under this Act.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52;
2002, c. 8, s. 183.
Previous VersionExtension of Time for Objection or AppealExtension of time by TribunalSubject to subsection (6), any person entitled to serve a notice of objection under section 81.15 or 81.17, other than a notice in respect of Part I, or to appeal to the Tribunal under section 81.19 may, at any time before or after the expiration of the time limited by that section for so objecting or appealing, apply to the Tribunal for an order extending that time.ProcedureAn application under subsection (1) shall be made by filing with the Tribunal three copies of the application.Extension of time by Federal CourtSubject to subsection (6), any person entitled to serve a notice of objection under section 81.15 or 81.17 in respect of Part I or to appeal to the Federal Court under section 81.2 or 81.24 may, at any time before or after the expiration of the time limited by that section for so objecting or appealing, apply to the Court for an order extending that time.ProcedureAn application under subsection (3) shall be made by filing a notice of the application with the Court and serving a copy of the notice on the Deputy Attorney General of Canada at least fourteen days before the application is returnable.ReasonsAn application under subsection (1) or (3) shall set out the reasons why the applicant is or was not able to comply with the time limitation.LimitationNo application may be made pursuant to subsection (1) or (3) more than one year after the expiration of the time limited.OrderOn application pursuant to subsection (1) or (3), the Tribunal or Court may grant an order extending the time limited ifit has not previously made an order extending that time; andit is satisfied thatthe circumstances are such that it is just and equitable to extend the time,but for the circumstances referred to in subparagraph (i), an objection would have been made or an appeal would have been instituted, as the case may be, within that time,the application was brought as soon as circumstances permitted, andthere are reasonable grounds for the objection or appeal.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52;
2002, c. 8, s. 183.
Previous VersionPurchaser Objections and AppealsRight to institute proceedings or apply for extensionsSubject to this section, wherea vendor of goods has made an application under section 68.2 in respect of the sale of the goods and the application was rejected in whole or in part by the Minister, ora vendor of goods has not paid tax in respect of the sale of the goodson the basis that the tax was not payable by virtue of subsection 23(6), (7), (8) or (8.1) or 50(5), oron the basis that the goods were sold in circumstances that, by virtue of the nature of the purchaser of the goods or the use to which the goods were to be put or by virtue of both such nature and use, rendered the sale exempt from tax under subsection 51(1)and subsequently the vendor was assessed tax by the Minister in respect of the sale and has recovered the amount of that tax, or a part thereof, from the purchaser of the goods,the purchaser of the goods may, in substitution for the vendor and in the purchaser’s own name as if he were the vendor, institute proceedings under any of sections 81.15, 81.17, 81.19, 81.2, 81.21, 81.22, 81.23 or 81.24 in respect of the rejection or assessment or apply for an extension, under section 81.32, of the time limited for instituting any such proceedings.Condition precedentA purchaser may institute proceedings or apply for an extension of the time limited for instituting proceedings pursuant to subsection (1) only ifthe vendor has unconditionally assigned to the purchaser in the prescribed form his rights, if any,to institute proceedings under sections 81.15, 81.17, 81.19, 81.2, 81.21, 81.22, 81.23 or 81.24,to make an application under section 81.32, andto receive a payment pursuant to section 81.16, 81.18 or 81.38in respect of the sale and the Minister is served with a true copy of the assignment in accordance with subsection (3);the vendor has not, within the time limited for instituting the proceedings, instituted the proceedings or applied for an extension, under section 81.32, of that time; orthe proceedings are an appeal arising from proceedings previously instituted by the purchaser pursuant to subsection (1).ServiceService of a true copy of an assignment on the Minister shall be effected, by prepaid mail addressed to the Minister at Ottawa, within the time limited for instituting the proceedings to which the assignment relates.Acceptance of other serviceThe Minister may accept a true copy of an assignment notwithstanding that it was not served by prepaid mail addressed to the Minister at Ottawa.Deemed extensionFor the purpose of permitting a purchaser to institute proceedings or apply for an extension of the time limited for instituting proceedings pursuant to subsection (1) in the circumstances described in paragraph (2)(b), the time limited for instituting the proceedings is deemed to be extended by thirty days.Purchaser stands in place of vendorProceedings and applications under subsection (1) shall be dealt with in all respects as if the purchaser were the vendor and any amounts found, on the conclusion of the proceedings, to be payable under subsection 81.16(1), 81.18(1) or 81.38(1) shall be paid to the purchaser and not to the vendor.ExceptionWhere a vendor applies for an extension, under section 81.32, of the time limited for instituting any proceedings after the time has expired, the purchaser may not institute the proceedings or apply for an extension of the time limited for instituting the proceedings pursuant to subsection (1).PreclusionWhere a purchaser institutes proceedings or applies for an extension of the time limited for instituting proceedings pursuant to subsection (1), the vendor may not apply for an extension, under section 81.32, of the time limited for instituting the proceedings or, in the case described in paragraph (1)(a), make a further application under section 68.2 in respect of the sale.InterventionNotwithstanding section 81.34, a vendor of goods may intervene in any proceedings or application for extension of the time limited for instituting proceedings instituted by a purchaser of the goods pursuant to subsection (1), as a party to the proceedings or application.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38.
InterventionsInterventionsOn application, the Tribunal or Federal Court may make an order permitting any person to intervene in an appeal or a reference to it under this Part as a party thereto, if it is satisfied that the applicant has a substantial and direct interest in the subject-matter of the appeal or reference.AssistanceOn application, the Tribunal or Federal Court may make an order permitting any person to render assistance to it by way of argument in an appeal or a reference to it under this Part, but such person shall not be added as a party thereto.TermsThe Tribunal or Federal Court may impose such terms and conditions as it deems appropriate in connection with an order under this section.ProcedureAn application under subsection (1) shall be made by filing a notice of the application with the Tribunal or Court, as the case may be, and serving a copy of the notice on the parties to the appeal or reference at least fourteen days before the application is returnable.Matters consideredThe Tribunal or Court, in any application under this section, shall consider the possibility of undue delay or prejudice or any other matter that it deems appropriate in exercising its discretion pursuant to this section.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52;
2002, c. 8, s. 183.
Previous Version[Repealed, R.S., 1985, c. 47 (4th Supp.), s. 52]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52.
ReferencesReference to Federal CourtThe Minister may refer any question of law, fact or mixed law and fact relating to this Act to the Federal Court for hearing and determination.Contents of referenceA reference under subsection (1) shall set outthe question to be determined;the names of any specific persons that the Minister seeks to have bound by the determination; andthe facts and arguments on which the Minister intends to rely at the hearing.ServiceA copy of a reference under subsection (1) shall be served by the Minister on the persons, if any, named in the reference pursuant to subsection (2) and on such other persons as, in the opinion of the Court, are likely to be affected by the determination of the question set out in the reference.NoticeWhere a reference under subsection (1) is made to the Court and the Court is of the opinion that persons, other than those named in the reference pursuant to subsection (2), are likely to be affected by the determination of the question set out in the reference but that the identity of those persons is not known or readily ascertainable, the Court may direct that notice of the reference be given in such manner as it considers will most likely come to the attention of those other persons.Suspension of time limitationsThe period beginning on the day the Minister institutes proceedings in the Court pursuant to subsection (1) to have a question determined and ending on the day the question is finally determined shall not be counted in determiningthe time limited by subsection 81.15(1) or 81.17(1) for serving a notice of objection by any person who is served with a copy of the reference pursuant to subsection (3) or who appears as a party at the hearing to determine the question;the time limited by section 81.19, 81.2 or 81.24 for instituting an appeal by any person referred to in paragraph (a); orthe time limited by section 82 for commencing proceedings to recover any tax, penalty, interest or other sum payable under this Act by any person referred to in paragraph (a).Final and bindingA determination of the Federal Court under this section is, subject to an appeal, final and binding on any person who is served with a copy of the reference pursuant to subsection (3) or who appears as a party at the hearing to determine the question.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38;
2002, c. 8, s. 183.
Previous VersionReference to Federal CourtIf the Minister and a person agree in writing that a question of law, fact or mixed law and fact relating to this Act should be determined by the Federal Court, the question shall be determined by that Court under subsection 17(3) of the Federal Courts Act.Suspension of time limitationsThe period beginning on the day proceedings are instituted in the Court pursuant to subsection (1) to have a question determined and ending on the day the question is finally determined shall not be counted in determiningthe time limited by subsection 81.15(1) or 81.17(1) for serving a notice of objection by the person who agreed to refer the question or any person who appears as a party at the hearing to determine the question;the time limited by section 81.19, 81.2 or 81.24 for instituting an appeal by any person referred to in paragraph (a); orthe time limited by section 82 for commencing proceedings to recover any tax, penalty, interest or other sum payable under this Act by any person referred to in paragraph (a).
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38;
2002, c. 8, s. 138.
Previous VersionPayments by Minister on AppealsPayment by Minister on appealIf the Tribunal, the Federal Court, the Federal Court of Appeal or the Supreme Court of Canada has, on the disposition of an appeal under this Part,vacated or varied an assessment or a determination of the Minister respecting an application under any of sections 68 to 69,referred an assessment or a determination described in paragraph (a) back to the Minister for reconsideration, orordered the Minister to pay or repay any tax, penalty, interest or other sum,unless otherwise directed in writing by the person who served the notice of objection, the Minister shall, with all due dispatch, whether or not a further appeal is instituted,where the assessment or determination is referred back to the Minister, reconsider the assessment or determination and vary the assessment or determination or make a reassessment or a further determination in accordance with the decision of the Tribunal or Court, andpay or repay, or surrender any security accepted for the payment of, any tax, penalty, interest or other sum in accordance with the varied assessment or determination, the reassessment or further determination of the Minister or the decision or order of the Tribunal or Court.Provisions applicable to reconsideration of assessmentsSubsections 81.15(5) to (11) and 81.16(2) and (3) apply, with such modifications as the circumstances require, to the reconsideration of an assessment under subsection (1) as ifthe words “or a notice of decision” were added immediately after the words “notice of assessment” in subsection 81.15(10) and paragraph (a) of the definition amount owing in subsection 81.15(11);the reference in subsection 81.15(10) to “subsection 81.14(2)” were a reference to “subsection 81.14(2) or 81.16(2)”; andthe reference in paragraph (b) of the definition amount owing in subsection 81.15(11) to “subsection 81.14(1)” were a reference to “subsections 81.14(1), 81.16(1) and 81.38(1)”.Provisions applicable to reconsideration of determinationsSubsections 81.17(5) and (6) apply, with such modifications as the circumstances require, to the reconsideration of a determination under subsection (1) as ifthe reference in paragraph (b) of the definition amount payable in subsection 81.17(6) to “subsection 72(6)” were a reference to “subsections 72(6), 81.18(1) and 81.38(1)”; andthe reference in that paragraph to “subsection 74(1)” were a reference to “subsections 74(1) and 81.18(2)”.Payment in other appealsWhere, having regard to the reasons given on the disposition of an appeal referred to in subsection (1), the Minister is satisfied that it would be just and equitable to make a payment to, or surrender any security furnished by or on behalf of, any other person who has served a notice of objection or instituted an appeal, the Minister may, with the consent of that person and subject to such terms and conditions as the Minister may prescribe, pay or repay to that person any tax, penalty, interest or other sum or surrender any security accepted for the payment thereof.Right of appeal preservedNothing in this section shall be construed as derogating from the right of the Minister to appeal from a decision of the Tribunal or the Federal Court on an appeal referred to in subsection (1), and any such appeal from a decision of the Tribunal shall proceed as if it were an appeal from the assessment or determination that was the subject of the decision.Interest on assessmentSubject to subsection (7), if a payment is made under subsection (1) or (4) in respect of an assessment, interest at the prescribed rate shall be paid, in respect of each day between the date of the notice of assessment and the day on which the payment was sent.Interest on amounts payable to personIf a person has paid an amount on account of the amount owing as set out in a notice of assessment or a notice of decision and a payment is made to that person under subsection (1) or (4) in respect of the assessment, interest at the prescribed rate shall be paid, in respect of each day between the day on which the amount was paid by that person and the day on which the payment was sent to that person.Interest on refundsIf a payment is made under subsection (1) or (4) in respect of an application under any of sections 68 to 69, interest at the prescribed rate shall be paid, in respect of each day between the day that is 30 days after the day on which the application was received by the Minister and the day on which the payment was sent.[Repealed, 2001, c. 16, s. 33][Repealed, 2003, c. 15, s. 106]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52;
1994, c. 29, s. 9;
2001, c. 16, s. 33;
2002, c. 8, s. 139;
2003, c. 15, s. 106.
Previous VersionOverpayments by MinisterDeemed taxSubject to subsection (4), if a person hasreceived a drawback under section 70,received a payment under subsection 68.16(1) or (2), 72(6) or (7), 81.14(1), 81.16(1), (4) or (5), 81.18(1) or (3) or 120(7), ormade a deduction under subsection 69(2), 73(1), (2) or (3), 74(1) or (3) or 81.18(2) or (4)to which that person was not entitled or in excess of the drawback, payment or deduction to which the person was entitled, the amount of the drawback, payment or deduction or the excess is deemed to be a tax under this Act payable by that person on the day the drawback, payment or deduction was made.Amount payable after disposition of appealIf a person has received a payment under subsection 81.38(1), (6), (7) or (8) and, on the final disposition of the appeal by further appeal or otherwise, it is determined that the person was not entitled to the payment or that the payment was in excess of the payment to which the person was entitled, the amount of the payment or the excess is deemed to be a tax under this Act payable by that person on the day the payment was made.Amount payable after disposition of further appealIf a person has received a payment under subsection 81.38(4), (6), (7) or (8) and, on the final disposition by further appeal or otherwise of the appeal referred to in subsection 81.38(1) on the basis of which the payment was made, it is determined that the person was not entitled to the payment or that the payment was in excess of the payment to which the person was entitled, the amount of the payment or the excess is deemed to be a tax under this Act payable by that person on the day the payment was made.Amount payable after recovery of paymentIf a person is liable to pay an amount under subsection 68.15(3) or 68.21(3), that amount is deemed to be a tax under this Act payable by that person on the day the liability arose.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 38;
1993, c. 27, s. 4;
2003, c. 15, s. 107.
Administrative Charge under the Financial Administration ActDishonoured instrumentsFor the purposes of this Act and section 155.1 of the Financial Administration Act, any charge that becomes payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable under this Act is deemed to be an amount that becomes payable by the person at that time under this Act. In addition, Part II of the Interest and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Act is paid.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2006, c. 4, s. 132.
CollectionDefinitionsThe following definitions apply in this section.actionactionaction means an action to collect a tax debt of a person and includes a proceeding in a court and anything done by the Minister under any provision of this Part.legal representativereprésentant légallegal representative of a person means a trustee in bankruptcy, an assignee, a liquidator, a curator, a receiver of any kind, a trustee, an heir, an administrator, an executor, a liquidator of a succession, a committee, or any other like person, administering, winding up, controlling or otherwise dealing in a representative or fiduciary capacity with any property, business, commercial activity or estate that belongs or belonged to, or that is or was held for the benefit of, the person or the person’s estate.tax debtdette fiscaletax debt means any amount payable by a person under this Act other than Part IX.Debts to Her MajestyA tax debt is a debt due to Her Majesty in right of Canada and is recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided under this Part.Court proceedingsSubject to subsection (3), the Minister may not commence a proceeding in a court to collect a tax debt of a person in respect of an amount that may be assessed under this Part, unless when the proceeding is commenced the person has been or may be assessed for that amount.No actions after limitation periodThe Minister may not commence an action to collect a tax debt after the end of the limitation period for the collection of the tax debt.Limitation periodThe limitation period for the collection of a tax debt of a personbeginsif a notice of assessment in respect of the tax debt is sent to or served on the person after March 3, 2004, on the day that is 90 days after the day on which the notice is sent or served,if no notice referred to in subparagraph (i) in respect of the tax debt was sent or served and the earliest day on which the Minister can commence an action to collect that tax debt is after March 3, 2004, on that earliest day, andif subparagraphs (i) and (ii) do not apply and the tax debt was payable on March 4, 2004, or would have been payable on that date but for a limitation period that otherwise applied to the collection of the tax debt, on March 4, 2004; andends, subject to subsection (2.6), on the day that is 10 years after the day on which it begins.Limitation period restartedThe limitation period described in subsection (2.2) for the collection of a tax debt of a person restarts (and ends, subject to subsection (2.6), on the day that is 10 years after the day on which it restarts) on any day, before it would otherwise end, on whichthe person acknowledges the tax debt in accordance with subsection (2.4);the Minister commences an action to collect the tax debt; orthe Minister, under section 81.1, assesses another person in respect of the tax debt.Acknowledgement of tax debtsA person acknowledges a tax debt if the personpromises, in writing, to pay the tax debt;makes a written acknowledgement of the tax debt, whether or not a promise to pay can be inferred from the acknowledgement and whether or not it contains a refusal to pay; ormakes a payment, including a purported payment by way of a negotiable instrument that is dishonoured, on account of the tax debt.Agent or legal representativeFor the purposes of this section, an acknowledgement made by a person’s agent or legal representative has the same effect as if it were made by the person.Extension of limitation periodIn computing the day on which a limitation period ends, there shall be added the number of days on which one or more of the following is the case:the Minister may not, because of any of subsections 86(5) to (8), take any of the actions described in subsection 86(4) in respect of the tax debt;the Minister has accepted and holds security in lieu of payment of the tax debt;if the person was resident in Canada on the applicable date described in paragraph (2.2)(a) in respect of the tax debt, the person is non-resident; oran action that the Minister may otherwise take in respect of the tax debt is restricted or not permitted under any provision of the Bankruptcy and Insolvency Act, of the Companies’ Creditors Arrangement Act or of the Farm Debt Mediation Act.Bar to claimsDespite any law of Canada or a province, Her Majesty in right of Canada is not liable for any claim that arises because the Minister collected a tax debt after the end of any limitation period that applied to the collection of the tax debt and before March 4, 2004.Orders after March 3, 2004 and before effectDespite any order or judgment made after March 3, 2004 that declares a tax debt not to be payable by a person, or that orders the Minister to reimburse to a person a tax debt collected by the Minister, because a limitation period that applied to the collection of the tax debt ended before royal assent to any measure giving effect to this section, the tax debt is deemed to have become payable on March 4, 2004.Exception where misrepresentation or fraudProceedings for the recovery of any tax, penalty, interest or other sum payable under this Act may be commenced in a court at any time if payment thereof was avoided by reason of a misrepresentation attributable to neglect, carelessness or wilful default or by reason of fraud.Recovery of penalties and fines for offence from corporationWhere a penalty or fine is imposed on a corporation pursuant to a conviction for an offence under this Act and the conviction or a certified copy thereof is produced to the Federal Court, the conviction shall be registered in the Court and, when registered, has the same force and effect, and all proceedings may be taken thereon, as if the conviction were a judgment obtained in the Court for a debt of the amount of the penalty or fine and costs, if any, specified in the conviction.Penalties and interest on judgmentsWhere a judgment is obtained for any tax, penalty, interest or other sum payable under this Act, including a certificate registered under section 83, the provisions of this Act by virtue of which a penalty or interest is payable for failure to pay or remit the sum apply, with such modifications as the circumstances require, to failure to pay the judgment debt, and the penalty and interest are recoverable in the same manner as the judgment debt.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 82;
R.S., 1985, c. 7 (2nd Supp.), s. 41;
2004, c. 22, s. 48;
2010, c. 25, s. 131.
Previous VersionCertificate of defaultThe Minister may certify that any tax, penalty, interest or other sum payable under this Act has not been paid as and when required by this Act.Certificate has effect of judgmentOn production to the Federal Court, a certificate made under this section shall be registered in the Court and, when registered, has the same force and effect, and all proceedings may be taken thereon, as if the certificate were a judgment obtained in the Court for a debt of the amount specified in the certificate.CostsAll reasonable costs and charges attendant on the registration of the certificate are recoverable in the same manner as if they had been certified and the certificate had been registered under this section.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 83;
R.S., 1985, c. 7 (2nd Supp.), s. 41.
GarnishmentWhere the Minister has knowledge or suspects that a person is or is about to become liable to make a payment to a tax debtor, the Minister may, by a notice served personally or by registered or certified mail, require that person to pay to the Receiver General, on account of the tax debtor’s liability under this Act, the whole or any part of the moneys that would otherwise, within ninety days after the service of the notice, be paid or become payable to the tax debtor.Application of noticeWhere the Minister has, under subsection (1), required a person to pay to the Receiver General moneys otherwise payable to a tax debtor, the requirement applies in respect of all moneys that are or will become payable by that person to the tax debtor within the ninety day period referred to in that subsection until the tax debtor’s liability under this Act is satisfied.Assignment of book debtsWhere the Minister has knowledge or suspects that a person has received, or is about to receive, an assignment of a book debt or of a negotiable instrument of title to a book debt from a tax debtor, the Minister may, by a notice served personally or by registered or certified mail, require that person to pay to the Receiver General, on account of the tax debtor’s liability under this Act, out of any moneys received by that person on account of the debt within ninety days after service of the notice, an amount equal to the amount of any tax, penalty, interest or other sum payable under this Act in respect of the transaction giving rise to the debt assigned.Failure to complyAny person on whom a notice is served under this section shall pay the Receiver General according to the terms thereof and, in default of payment, is liable to pay to Her Majesty an amount equal to the lesser ofin the case of a person served under subsection (1),the amount of the tax debtor’s liability under this Act, andthe amount payable to the tax debtor by that person, andin the case of a person served under subsection (3),the amount of any tax, penalty, interest or other sum payable under this Act in respect of the transaction giving rise to the debt assigned to that person, andthe amount received by that person on account of the debt assigned after receipt of the notice.Application of paymentsAny moneys paid by a person under subsection (4) shall, in addition to being applied to that person’s liability under this section, be applied on account of the tax debtor’s liability under this Act.Receipt by Receiver GeneralThe receipt by the Receiver General of moneys paid as required under this section is a good and sufficient discharge of the liability to the tax debtor to the extent of the amount received.Definition of tax debtorIn this section, tax debtor means a person by whom any tax, penalty, interest or other sum is payable under this Act.[Repealed, 2003, c. 15, s. 108]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 84;
R.S., 1985, c. 15 (1st Supp.), s. 29, c. 7 (2nd Supp.), ss. 39, 41, c. 42 (2nd Supp.), s. 10, c. 12 (4th Supp.), s. 35;
2003, c. 15, s. 108.
Retention by deduction or set-offWhere a person is indebted to Her Majesty in right of Canada under this Act, the Minister may require the retention, by way of deduction or set-off, out of any amount that may be or become payable to that person by Her Majesty in right of Canada, of such amount as the Minister may specify.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 85;
R.S., 1985, c. 15 (1st Supp.), s. 29, c. 7 (2nd Supp.), s. 41.
Exclusion of penalties and fines for offencesSubsections 82(3) and (5) and sections 83 to 85 do not apply in respect of any penalty or fine imposed pursuant to a conviction for an offence under this Act.Restriction on certificate of defaultThe Minister shall not certify under section 83 that a sum has not been paid, unless the person by whom the sum is payable has been assessed for that sum under this Part.Restriction on garnishment and retentionThe Minister shall notserve a notice under section 84 in respect of a sum payable under this Act, orrequire under section 85 the retention of an amount in respect of a sum payable under this Act,unless the person by whom the sum is payable has been assessed for that sum under this Part or a judgment against that person for the payment of that sum has been rendered by a court of competent jurisdiction.Delay where assessmentWhere a person has been assessed for any sum payable under this Act, otherwise than pursuant to subsection 81.15(4) or 81.38(1), the Minister shall not, for the purpose of collecting that sum,commence legal proceedings in a court,make a certificate under section 83, orserve a notice under section 84,[Repealed, 2006, c. 4, s. 133]before ninety days after the day on which the notice of assessment is sent to that person.Delay where objectionIf a person has served a notice of objection under section 81.15, otherwise than pursuant to section 81.33, the Minister shall not, for the purpose of collecting the sum in controversy, take any of the actions described in paragraphs (4)(a) to (c) before ninety days after the day on which the notice of decision is sent to that person.Delay where appealIf a person has appealed to the Tribunal or the Federal Court under this Part, otherwise than pursuant to section 81.33, in respect of an assessment, the Minister shall not, for the purpose of collecting the sum in controversy, take any of the actions described in paragraphs (4)(a) to (c),where the appeal is to the Tribunal, before the day on which a copy of the decision of the Tribunal is sent to that person or that person discontinues the appeal; andwhere the appeal is to the Federal Court, before the day on which the judgment of the Court is rendered or that person discontinues the appeal.Delay where referenceIf a person is named in a reference under section 81.36, agrees to a reference under section 81.37 or appears as a party at the hearing of any such reference, the Minister shall not, for the purpose of collecting any sum for which that person has been assessed and of which the liability for payment will be affected by the determination of the question, take any of the actions described in paragraphs (4)(a) to (c) before the day on which the question is determined by the Court.Delay when agreementDespite subsections (1) to (7), if a person has served a notice of objection under section 81.15 or has appealed to the Tribunal or the Federal Court under this Part, otherwise than under section 81.33, in respect of an assessment and agrees in writing with the Minister to delay proceedings on the objection or appeal until a decision or judgment is rendered in another action before the Tribunal, the Federal Court, the Federal Court of Appeal or the Supreme Court of Canada in which the issue is the same or substantially the same as that raised in the objection or appeal of that person, the Minister may take any of the actions described in paragraphs (4)(a) to (c) for the purpose of collecting any sum for which that person has been assessed, determined in a manner consistent with the decision or judgment of the Tribunal or Court in the other action, at any time after the Minister notifies the person in writing that the decision or judgment has been rendered.ExceptionSubsections (2) and (3) do not apply in respect of any amount deemed to be a tax by subsection 81.39(2) or (3).
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 86;
R.S., 1985, c. 15 (1st Supp.), s. 30, c. 7 (2nd Supp.), s. 41, c. 47 (4th Supp.), s. 52;
2002, c. 8, ss. 140, 183;
2006, c. 4, s. 133.
Previous VersionCollection in jeopardyDespite section 86, if it may reasonably be considered that the collection of any sum for which a person has been assessed would be jeopardized by a delay under that section and the Minister has, by a notice served personally or by registered or certified mail, so advised that person and directed them to pay that sum or any part of it, the Minister may without delay take any of the actions described in paragraphs 86(4)(a) to (c) with respect to that sum or part.Application to vacate directionAny person on whom a direction is served under subsection (1) mayon three days notice of motion to the Deputy Attorney General of Canada, apply to a judge of a superior court having jurisdiction in the province in which that person resides or to a judge of the Federal Court for an order fixing a day, not earlier than fourteen days nor later than twenty-eight days after the date of the order, and place for the determination of the question whether the direction was justified in the circumstances;serve a copy of the order on the Deputy Attorney General of Canada within six days after the day on which it was made; andif that person has proceeded as authorized by paragraph (b), apply at the appointed time and place for an order determining the question.Time for applicationAn application to a judge under paragraph (2)(a) shall be madewithin thirty days after the day on which the direction under subsection (1) was served; orwithin such further time as the judge, on being satisfied that the application was made as soon as circumstances permitted, may allow.Hearing in privateAn application to a judge under paragraph (2)(c) may, on request of the applicant, be heard in private if the applicant establishes to the satisfaction of the judge that the circumstances of the case justify proceedings being held in private.Burden to justify directionOn the hearing of an application under paragraph (2)(c), the burden of justifying the direction is on the Minister.Disposition of applicationOn an application under paragraph (2)(c), the judge shall determine the question summarily and may confirm, vacate or vary the direction and make such other order as he considers appropriate.Continuation by another judgeWhere the judge to whom an application has been made under paragraph (2)(a) cannot for any reason act or continue to act in the application under paragraph (2)(c), the application under paragraph (2)(c) may be made to another judge.CostsNo costs may be awarded by a judge on the disposition of an application under subsection (2).
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 87;
R.S., 1985, c. 15 (1st Supp.), s. 31, c. 7 (2nd Supp.), s. 41;
2006, c. 4, s. 133.1.
Previous VersionWaiver or cancellation of interest or penaltyThe Minister may, on or before the day that is 10 calendar years after the end of a reporting period of a person, or on application by the person on or before that day, waive or cancel any amount otherwise payable to the Receiver General under this Act that is interest or a penalty on an amount that is required to be paid by the person under this Act in respect of the reporting period.Interest where amounts cancelledIf a person has paid an amount of interest or penalty and the Minister cancels that amount under subsection (1), the Minister shall pay interest on the amount paid by the person beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that subsection and ending on the day on which the amount is refunded or applied against an amount owed by the person to Her Majesty in right of Canada.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 88;
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 89;
R.S., 1985, c. 15 (1st Supp.), s. 32, c. 7 (2nd Supp.), s. 41.
[Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 41]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 90;
R.S., 1985, c. 7 (2nd Supp.), s. 41.
[Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 41]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 91;
R.S., 1985, c. 7 (2nd Supp.), s. 41.
[Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 41]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 92;
R.S., 1985, c. 15 (1st Supp.), s. 33, c. 7 (2nd Supp.), s. 41.
[Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 41]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 93;
R.S., 1985, c. 15 (1st Supp.), s. 33, c. 7 (2nd Supp.), s. 41.
[Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 41]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 94;
R.S., 1985, c. 15 (1st Supp.), s. 34, c. 7 (2nd Supp.), ss. 40, 41.
Application of penalties and finesThe amount of all penalties and fines under this Act belong to Her Majesty in right of Canada for the public uses of Canada and form part of the Consolidated Revenue Fund.Application of penalty on account of taxWhere a penalty calculated by reference to the amount of the tax that should have been paid or collected or the amount of stamps that should have been affixed or cancelled is imposed and recovered under or pursuant to this Act, the Minister may direct that the amount thereof or any portion thereof be applied on account of the tax that should have been paid or collected or the indebtedness arising out of the failure to affix or cancel the stamps.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 95;
R.S., 1985, c. 7 (2nd Supp.), s. 42.
Failure to file a return when requiredEvery person who fails to file a return for a reporting period as and when required under subsection 79(1) shall pay a penalty equal to the sum ofan amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the reporting period and was not paid on the day on which the return was required to be filed, andthe amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on which the return was required to be filed to the day on which the return is filed.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2006, c. 4, s. 135;
2010, c. 25, s. 132.
Previous VersionPunishment for failure to pay or collect taxes or affix stampsEvery person who, being required, by or pursuant to this Act, to pay or collect taxes or other sums, or to affix or cancel stamps, fails to do so as required is guilty of an offence and, in addition to any other punishment or liability imposed by law for that failure, is liable on summary conviction to a fine ofnot less than the aggregate of twenty-five dollars and an amount equal to the tax or other sum that he should have paid or collected or the amount of stamps that he should have affixed or cancelled, as the case may be, andnot more than the aggregate of one thousand dollars and an amount equal to the tax or other sum or amount of stamps, as the case may be,and in default of payment of the fine to imprisonment for a term of not less than thirty days and not more than twelve months.Punishment for contraventionEvery person who contravenes any of the provisions of this Act or of a regulation made by the Minister under this Act for which no other punishment is provided is liable on summary conviction to a fine of not less than fifty dollars and not more than one thousand dollars.Officers, etc., of corporationsWhere a corporation commits an offence under this Act, any officer, director or agent of the corporation who directed, authorized, assented to, acquiesced in, or participated in the commission of the offence is a party to and guilty of the offence and is liable on summary conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 96;
R.S., 1985, c. 7 (2nd Supp.), s. 43.
Failing to file returnEvery person required, by or pursuant to any Part except Part I, to file a return, who fails to file the return within the time it is required to be filed, is guilty of an offence and liable to a fine of not less than ten dollars and not more than one hundred dollars.False or deceptive statementsWhena return is filed as required by or pursuant to any Part except Part I, oran application is made under any of sections 68 to 70,every person who makes, assents to or acquiesces in the making of, false or deceptive statements in the return or application is guilty of an offence and liable on summary conviction to a fine ofnot less than the aggregate of one hundred dollars and an amount equal todouble the amount of the tax that should have been paid in or in respect of the period covered by the return, ordouble the amount of the tax or other sum that he obtained and accepted by reason of the application, andnot more than the aggregate of one thousand dollars and an amount equal to double the amount of the tax or other sum,and in default of payment of the fine to imprisonment for a term of not more than twelve months.[Repealed, R.S., 1985, c. 12 (4th Supp.), s. 36]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 97;
R.S., 1985, c. 15 (1st Supp.), s. 35, c. 7 (2nd Supp.), s. 44, c. 12 (4th Supp.), s. 36.
[Repealed, 2002, c. 22, s. 418]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 10;
1997, c. 26, s. 70;
2000, c. 30, s. 15;
2001, c. 16, s. 34;
2002, c. 22, s. 418.
[Repealed, 2002, c. 22, s. 418]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 10;
1997, c. 26, s. 71;
2000, c. 30, s. 16;
2001, c. 16, s. 35;
2002, c. 22, s. 418.
[Repealed, 2001, c. 16, s. 36]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 10;
1995, c. 36, s. 7;
1997, c. 26, s. 72;
2001, c. 16, s. 36.
[Repealed, 2002, c. 22, s. 418]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 10;
2000, c. 30, s. 17;
2001, c. 16, s. 37;
2002, c. 22, s. 418.
[Repealed, 2001, c. 16, s. 37]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 10;
1997, c. 26, s. 73;
2000, c. 30, s. 140;
2001, c. 16, s. 37.
Books and recordsEvery person whois required, by or pursuant to this Act, to pay or collect taxes or other sums or to affix or cancel stamps, ormakes an application under any of sections 68 to 70,shall keep records and books of account in English or French at that person’s place of business in Canada in such form and containing such information as will enable the amount of taxes or other sums that should have been paid or collected, the amount of stamps that should have been affixed or cancelled or the amount, if any, of any drawback, payment or deduction that has been made or that may be made to or by that person, to be determined.Keeping of records and books of accountEvery person required by subsection (1) to keep records and books of account shall retain those records and books of account and every account and voucher necessary to verify the information contained therein until the expiration of six years from the end of the calendar year in respect of which those records and books of account are kept or until written permission for their prior disposal is given by the Minister.Electronic recordsEvery person required by this section to keep records who does so electronically shall retain them in an electronically readable format for the retention period set out in subsection (2).ExemptionThe Minister may, on such terms and conditions as are acceptable to the Minister, exempt a person or a class of persons from the requirement in subsection (2.01).IdemNotwithstanding subsection (2), where a person required by subsection (1) to keep records and books of account serves a notice of objection under section 81.15 or 81.17 or is a party to an appeal under this Part, he shall retain those records and books of account and every account and voucher necessary to verify the information therein until the objection or appeal has been finally disposed of by appeal or otherwise.InspectionEvery person required by subsection (1) to keep records and books of account shall, at all reasonable times, make the records and books of account and every account and voucher necessary to verify the information therein available to officers of the Agency and other persons thereunto authorized by the Minister and give them every facility necessary to inspect the records, books, accounts and vouchers.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 98;
R.S., 1985, c. 15 (1st Supp.), s. 36, c. 7 (2nd Supp.), s. 45;
1998, c. 19, s. 278;
1999, c. 17, s. 156.
InspectionEvery person who is authorized under a statute of the Province of Ontario, Quebec, Nova Scotia, New Brunswick or Prince Edward Island to sell manufactured tobacco in the province to a purchaser who is authorized under a statute of the province to retail manufactured tobacco in the province shall, at all reasonable times, make the person’s records and books of account and the records and vouchers necessary to verify the information in them available to officers of the Agency, and to other persons authorized by the Minister for the purpose of this section, for any purpose relating to the administration or enforcement of this Act and give them every facility necessary to inspect the records, books, accounts and vouchers for that purpose.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 11;
1999, c. 17, s. 156.
[Repealed, 2001, c. 16, s. 38]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 29, s. 11;
1999, c. 17, s. 156;
2001, c. 16, s. 38.
Provision of documents may be requiredSubject to section 102.1, the Minister may, for any purpose related to the administration or enforcement of this Act, or of a listed international agreement, by a notice served personally or by registered or certified mail, require that any person provide any book, record, writing or other document or any information or further information within any reasonable time that may be stipulated in the notice.OffenceEvery person who fails to comply with a notice under subsection (1) is guilty of an offence and, in addition to any penalty otherwise provided, liable on summary conviction toa fine of not less than two hundred dollars and not more than ten thousand dollars; orboth a fine described in paragraph (a) and imprisonment for a term not exceeding six months.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 99;
R.S., 1985, c. 15 (1st Supp.), s. 37, c. 7 (2nd Supp.), s. 46;
2007, c. 18, s. 66.
Previous VersionOrder for complianceWhere a person is found guilty of an offence under subsection 99(2) for failing to comply with a notice, the court may make such order as it deems appropriate to enforce compliance with the notice.CopiesWhere any record or other document is inspected or provided under sections 98 and 99, the person by whom it is inspected, or to whom it is provided or any officer of the Agency may make, or cause to be made, one or more copies thereof and, in the case of an electronic document, make or cause to be made a print-out of the electronic document, and any document purporting to be certified by the Minister or an authorized person to be a copy of the document, or to be a print-out of an electronic document, made under this section is evidence of the nature and content of the original document and has the same probative force as the original document would have if it were proven in the ordinary way.Where records or books not adequateWhere a person required by subsection 98(1) to keep records or books of account has not, in the opinion of the Minister, kept adequate records or books of account, the Minister may prescribe the form of, and the information to be contained in, records or books of account to be kept by that person under that subsection.Where records or books not kept as requiredWhere the form of, or the information to be contained in, records or books of account to be kept by a person has been prescribed under subsection (2), and where that person fails to keep those records or books of account as required, that person is guilty of an offence and liable on summary conviction to a fine of not less than twenty-five dollars and not more than one thousand dollars and in default of payment of the fine to a term of imprisonment of not less than two months and not more than twelve months.Failure to make records and books availableEvery person who fails to comply with subsection 98(3) and every person who in any way prevents or attempts to prevent an officer of the Agency or an authorized person from having access to, or from inspecting, records or books of account kept pursuant to subsection 98(1) is guilty of an offence and liable on summary conviction to a fine of not less than two hundred dollars and not more than two thousand dollars or to imprisonment for a term of not more than six months or to both fine and imprisonment.[Repealed, 2002, c. 22, s. 386]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 100;
R.S., 1985, c. 7 (2nd Supp.), s. 47;
1994, c. 29, s. 12;
1998, c. 19, s. 279;
1999, c. 17, s. 156;
2001, c. 16, s. 39;
2002, c. 22, s. 386.
ComplianceEvery person who, physically or otherwise, does or attempts to do any of the following:interfere with or molest any official (in this section having the same meaning as in section 295) doing anything that the official is authorized to do under this Act, orhinder or prevent any official from doing anything the official is authorized to do under this Actis guilty of an offence and, in addition to any penalty otherwise provided, is liable on summary conviction toa fine of not less than $1,000 and not more than $25,000, orboth a fine described in paragraph (c) and imprisonment for a term not exceeding twelve months.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 101;
R.S., 1985, c. 15 (1st Supp.), s. 38;
R.S., 1985, c. 7 (2nd Supp.), s. 48;
2001, c. 17, s. 257.
Destroying records and making false entriesEvery person whodestroys, alters or mutilates records or books of account kept in respect of any period pursuant to subsection 98(1) to evade paying a tax or otherwise to evade compliance with this Act or to assist any other person to evade paying a tax or otherwise to evade compliance with this Act, ormakes, assents to or acquiesces in the making of, false or deceptive entries or omits, assents to or acquiesces in the omission, to enter a material particular in books or records of account required to be kept in respect of any period by subsection 98(1),is guilty of an offence and liable on summary conviction to a fine ofnot less than the aggregate of one hundred dollars and an amount equal to double the amount of the taxes that should have been paid or collected or the amount of stamps that should have been affixed or cancelled, as the case may be, in respect of that period, andnot more than the aggregate of one thousand dollars and an amount equal to double the amount of the taxes or stamps referred to in paragraph (c),and in default of payment of the fine, to imprisonment for a term of not less than three months and not more than twelve months.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 57.
Unnamed personsThe Minister shall not serve a notice under subsection 99(1) with respect to an unnamed person or a group of unnamed persons unless the Minister has been authorized to do so under subsection (2).Authorization orderOn an ex parte application by the Minister, a judge may, subject to such conditions as the judge considers appropriate, authorize the Minister to serve a notice under subsection 99(1) with respect to an unnamed person or a group of unnamed persons if the judge is satisfied by information on oath thatthe person or group is ascertainable; andthe notice would be served in order to verify compliance by the person or group with any duty or obligation of that person or of persons in that group under this Act.[Repealed, 1996, c. 21, s. 63]Reference to authorizationWhere authorization to serve a notice is granted under subsection (2), the notice shall refer to the authorization and the conditions, if any, imposed by the judge in connection therewith.Review of authorizationWhere authorization to serve a notice is granted under subsection (2), any person on whom the notice is served may, within fifteen days after being served with the notice, apply to the judge who granted the authorization or, where that judge is unable to act, to another judge of the same court, for a review of the authorization.Powers on reviewA judge to whom an application is made under subsection (4) maycancel the authorization if the judge is not satisfied that the conditions referred to in paragraphs (2)(a) and (b) have been met; orconfirm or vary the authorization if the judge is satisfied that those conditions have been met.Definition of judgeIn this section, judge means a judge of a superior court having jurisdiction in the province where the matter arises or a judge of the Federal Court.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 49;
1996, c. 21, s. 63.
Application of Customs ActWhere a tax is payable under this Act on the importation of any goods into Canada, the Customs Act is applicable in the same way and to the same extent as if that tax were payable under the Customs Tariff.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 103;
R.S., 1985, c. 1 (2nd Supp.), s. 196.
ServiceServiceExcept as otherwise provided in this Act, if a notice or other document is to be served on a person, other than the Minister or the Commissioner or the Tribunal, the notice or document shall be sent by registered or certified mail addressed to that person at their latest known address or be served personally on that person.PresumptionWhere a person referred to in subsection (1) carries on business under a name or style other than his own name, the notice or document may be addressed to the name or style under which that person carries on business and, in the case of personal service, is deemed to have been validly served if it has been left with an adult person employed at the place of business of the addressee.IdemWhere a person referred to in subsection (1) carries on business in partnership, the notice or document may be addressed to the name of the partnership and, in the case of personal service, is deemed to have been validly served if it has been served on one of the partners or left with an adult person employed at the place of business of the partnership.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 104;
R.S., 1985, c. 15 (1st Supp.), s. 39, c. 7 (2nd Supp.), s. 50, c. 47 (4th Supp.), s. 52;
1999, c. 17, s. 155;
2010, c. 25, s. 133.
Previous VersionEvidenceProof of service by registered or certified mailWhere a notice or other document under this Act or the regulations is sent by registered or certified mail, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting outthat the officer has knowledge of the facts in the particular case,that such a notice or document was sent by registered or certified mail on a named day to the person to whom it was addressed, indicating such address, andthat the officer identifies as exhibits annexed to the affidavit the postal certificate of registration or proof of delivery, as the case may be, of the notice or document or a true copy of the relevant portion thereof and a true copy of the notice or document,is evidence of the sending and of the notice or document.Proof of personal serviceWhere a notice or other document under this Act or the regulations is served personally, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting outthat the officer has knowledge of the facts in the particular case,that such a notice or document was served personally on a named day on the person to whom it was directed, andthat the officer identifies as an exhibit annexed to the affidavit a true copy of the notice or document,is evidence of the personal service and of the notice or document.Proof of failure to complyWhere a person is required by this Act or the regulations to file a return or report or to pay any tax, interest, penalty or other sum, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting outthat the officer has charge of the appropriate records, andthat after careful examination of the records the officer was unable to find in the particular case the return or report or the payment, as the case may be,is evidence that, in such case, that person did not file the return or report or pay the tax, interest, penalty or other sum.Proof of time of complianceWhere a person is required or authorized by this Act or the regulations to file an application, notice, return or report or to pay any tax, interest, penalty or other sum, an affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting outthat the officer has charge of the appropriate records, andthat after careful examination of the records the officer has found that the application, notice, return or report was filed on a particular day or the payment was received on a particular day, as the case may be,is evidence that the application, notice, return or report was filed, or the payment was received, on that day and not prior thereto.Proof of documentsAn affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting outthat the officer has charge of the appropriate records, andthat a document annexed to the affidavit is a document or true copy of a document, or a print-out of an electronic document, made by or on behalf of the Minister or a person exercising the powers of the Minister or by or on behalf of a person,is evidence of the nature and contents of the document.Proof of documentsAn affidavit of an officer of the Canada Border Services Agency, sworn before a commissioner or other person authorized to take affidavits, setting outthat the officer has charge of the appropriate records, andthat a document annexed to the affidavit is a document or a true copy of a document, or a print-out of an electronic document, made by or on behalf of the Minister of Public Safety and Emergency Preparedness or a person exercising the powers of that Minister or by or on behalf of a person,is evidence of the nature and contents of the document.Proof of no objectionAn affidavit of an officer of the Agency or the Canada Border Services Agency, sworn before a commissioner or other person authorized to take affidavits, setting outthat the officer has charge of the appropriate records,that the officer has knowledge of the practice of the Agency or the Canada Border Services Agency, as the case may be,that an examination of the records shows that a notice of determination or a notice of assessment was sent to a person on a named day pursuant to this Act, andthat after careful examination of the records the officer was unable to find that a notice of objection to the determination or assessment was received within the time limited for it,is evidence of the statements contained in the affidavit.Proof of no assignmentAn affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting outthat the officer has charge of the appropriate records, andthat after careful examination of the records the officer was unable to find that a notice of assignment of the right to institute proceedings under this Act was received within the time limited therefor,is evidence of the statements contained therein.Proof of licenceAn affidavit of an officer of the Agency, sworn before a commissioner or other person authorized to take affidavits, setting outthat the officer has charge of the appropriate records, andthat after careful examination of the records the officer has found that during a stated period a person was the holder of a licence granted under this Act,is evidence of the statements contained therein.PresumptionWhere evidence is offered under this section by an affidavit from which it appears that the person making the affidavit is an officer of the Agency or the Canada Border Services Agency, as the case may be, it is not necessary to prove his or her signature or that the person is such an officer, nor is it necessary to prove the signature or official character of the person before whom the affidavit was sworn.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 105;
R.S., 1985, c. 7 (2nd Supp.), s. 50;
1998, c. 19, s. 280;
1999, c. 17, s. 156;
2005, c. 38, ss. 102, 145.
Previous VersionEvidence of filingIn any proceedings under or in respect of this Act or the regulations, the production of a return, report, certificate, statement or answer required by or under this Act or the regulations, purporting to have been made, signed or filed by or on behalf of a person, is, in the absence of evidence to the contrary, proof that the return, report, certificate, statement or answer was made, signed or filed by or on behalf of that person.Evidence of documentIn any proceedings under or in respect of this Act or the regulations,a document purporting to be, or purporting to be a copy of or an extract from, a record, book, account, voucher, writing, document or thing inspected, provided or produced pursuant to section 98, 99 or 107 and purporting to be certified by the person by whom it was inspected or to whom it was provided or produced or by an officer of the Agency, anda document purporting to be certified by an officer of the Agency and setting out the amount of any tax, interest, penalty or other sum paid or payable by any named person or the amount of any payment under this Act paid or payable to any named personis evidence of the facts appearing in the document without proof of the signature or official character of the person appearing to have signed the certificate.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 106;
R.S., 1985, c. 7 (2nd Supp.), s. 50;
1999, c. 17, s. 156.
PresumptionEvery document purporting to be an order, direction, notice, certificate, requirement, decision, determination, assessment, discharge of mortgage or acquittance of a hypothecary claim or other document and purporting to have been executed under, or in the course of the administration or enforcement of, this Act or the regulations over the name in writing of the Minister, the Deputy Minister of National Revenue, the Commissioner of Customs and Revenue, the Commissioner or an officer authorized by the Minister to exercise his or her powers or perform his or her duties or functions under this Act is deemed to be a document signed, made and issued by the Minister, Deputy Minister, Commissioner of Customs and Revenue, the Commissioner or the officer, unless called into question by the Minister or by some person acting for the Minister or Her Majesty.PresumptionEvery document purporting to be an order, a direction, a notice, a certificate, a requirement, a decision, a determination, an assessment, a discharge of mortgage or an acquittance of a hypothecary claim or other document and purporting to have been executed under, or in the course of the administration or enforcement of, this Act or the regulations over the name in writing of the Minister of Public Safety and Emergency Preparedness, the President of the Canada Border Services Agency or an officer authorized by that Minister to exercise his or her powers or perform his or her duties or functions under this Act is deemed to be a document signed, made and issued by that Minister, the President or the officer, unless called into question by that Minister or by some person acting for that Minister or Her Majesty.Mailing or sending dateFor the purposes of this Act, a notice referred to in subsection 72(6), 81.13(1), 81.15(5) or 81.17(5) that is sent to a person is, in the absence of any evidence to the contrary, deemed to have been sent on the day appearing from the notice to be the date thereof, unless called into question by the Minister or by some person acting for him or Her Majesty.IdemWhere a notice referred to in subsection 72(6), 81.13(1), 81.15(5) or 81.17(5) is sent by the Minister as required by this Act, the determination, assessment or decision to which the notice relates shall be deemed to have been made on the day on which the notice is sent.Date electronic notice sentFor the purposes of this Act, if a notice or other communication in respect of a person is made available in electronic format such that it can be read or perceived by a person or a computer system or other similar device, the notice or other communication is deemed to be sent to the person and received by the person on the date that an electronic message is sent, to the electronic address most recently provided before that date by the person to the Minister for the purposes of this subsection, informing the person that a notice or other communication requiring the person’s immediate attention is available in the person’s secure electronic account. A notice or other communication is considered to be made available if it is posted by the Minister in the person’s secure electronic account and the person has authorized that notices or other communications may be made available in this manner and has not before that date revoked that authorization in a manner specified by the Minister.IdemEvery form purporting to be a form prescribed by the Minister under this Act shall be deemed to be a form prescribed by the Minister under this Act, unless called into question by the Minister or by some person acting for him or Her Majesty.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. 7 (2nd Supp.), s. 50;
1999, c. 17, s. 151;
2001, c. 17, s. 235;
2005, c. 38, ss. 103, 145;
2010, c. 25, s. 134.
Previous VersionInquiriesAny person designated by the Minister may conduct any inquiry or investigation in matters relating to this Act, and any person so authorized has all the powers and authority of a commissioner appointed under Part I of the Inquiries Act.Summoning witnessesA person designated to conduct an inquiry or investigation under subsection (1) may, for the purpose thereof, issue a summons to any person in any part of Canada requiring him to appear at the time and place mentioned therein, to testify to all matters within his knowledge relating to the subject-matter of the inquiry or investigation and to bring with him and produce any document, book or paper that he has in his possession or under his control relating to the subject-matter of the inquiry or investigation.Travel expensesReasonable travel expenses shall be paid to any person summoned under subsection (2) at the time of the service of the summons.PunishmentEvery person whofails, without valid excuse, to attend an inquiry or investigation as required under this section,fails to produce any document, book or paper in his possession or under his control, as required under this section, orat any inquiry or investigation under this sectionrefuses to be sworn, to affirm or to declare, as the case may be, orrefuses to answer any proper question put to him by the person conducting the inquiry or investigation,is guilty of an offence and liable on summary conviction to a fine of not less than twenty dollars and not more than four hundred dollars.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 61.
Offence of evasionEvery one who wilfully attempts in any manner to evade or defeat any tax imposed by this Act is guilty of an offence and liable on summary conviction to a fine not exceeding twelve thousand dollars or to imprisonment for a term not exceeding twelve months or to both.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 62;
1980-81-82-83, c. 68, s. 25.
Penalty for collecting excess sumsEvery one liable under this Act to pay to Her Majesty any of the taxes imposed by this Act, or to collect the taxes on Her Majesty’s behalf, who collects, under colour of this Act, any sum of money in excess of such sum as he is hereby required to pay to Her Majesty shall pay to Her Majesty all moneys so collected and shall in addition be liable to a penalty not exceeding five hundred dollars.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 63.
Time limited for prosecutionAn information or complaint under the provisions of the Criminal Code relating to summary convictions, in respect of an offence under this Act, may be laid or made on or before a day three years from the time when the matter or the information or complaint arose or within one year from the day on which evidence, sufficient in the opinion of the Minister to justify a prosecution for the offence, came to his knowledge, and the Minister’s certificate as to the day on which the evidence came to his knowledge is conclusive evidence thereof.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 64.
Action against officersNo writ shall be issued against, nor any process served on, any officer for any thing done or purporting to be done in the exercise of his duty as an officer until one month after notice in writing has been served on him, in which notice shall be clearly and explicitly stated the cause of action, the name and place of residence of the person who intends to bring action and the name of his attorney, solicitor or agent.EvidenceNo evidence of any cause of action shall be produced except of such cause of action as is contained in the notice, and no verdict or judgment shall be given for the plaintiff, unless he proves on the trial that the notice was given, in default of which proof the defendant is entitled to a verdict or judgment and costs.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 65.
Time and place of actionEvery action referred to in subsection 111(1) shall be brought within three months after the cause thereof arose and shall be laid and tried in the place or district where the acts complained of were committed.Defendant’s pleaThe defendant in an action may plead the general issue and give the special matter in evidence.CostsIf the plaintiff in an action is non-suited or discontinues the action, or if, on demurrer or otherwise, judgment is given against the plaintiff, the defendant may recover costs and have such remedy for the costs as any defendant has in other cases where costs are given.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 66.
Officer may tender amendsAny officer or person against whom any action is brought under this Act on account of anything done, or purporting to be done, under the authority of this Act may, within one month after the notice referred to in subsection 111(1) has been served, tender amends to the person complaining or his agent and plead the tender in bar or answer to the action, together with other pleas or defences, and if the court or jury, as the case may be, finds the amends sufficient, a judgment or verdict shall be given for the defendant, and in that case, or if the plaintiff is non-suited or discontinues his action, or judgment is given for the defendant on demurrer or otherwise, the defendant is entitled to the like costs as he would have been entitled to in case he had pleaded the general issue only, but the defendant may, by leave of the court in which the action is brought, at any time before issue is joined, pay money into court as in other actions.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 67.
If defendants acted on probable causeIf, in any action under this Act, the court or judge before whom the action is tried certifies that the defendant or defendants in the action acted on probable cause, the plaintiff in the action is not entitled to more than twenty cents damages or to any costs of suit.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 68.
PunishmentNotwithstanding any other statute or law, the court in any prosecution, suit or proceeding under this Act has no power to impose less than the minimum punishment prescribed by this Act and the court has no power to suspend sentence.InformationAn information or complaint in respect of a contravention of this Act may be for one or more offences and no information, complaint, warrant, conviction or other proceeding in respect of an offence or offences is objectionable or insufficient on the ground that it relates to two or more offences.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., c. E-13, s. 69.
Incorrect statements as to useWhere a purchaser of goods from a wholesaler, producer, manufacturer or importer has incorrectly stated or certified that the goods were intended for a use rendering them exempt from tax under any provision of this Act, the wholesaler, producer, manufacturer or importer, as the case may be, is entitled to recover from the purchaser the taxes paid by him under this Act in respect of those goods.IdemWhere a purchaser of transportation by air from an air carrier has incorrectly stated or certified that the transportation by air was intended for a use rendering the transportation exempt from tax under Part II, the air carrier is entitled to recover from the purchaser the taxes paid by the air carrier under that Part in respect of that transportation by air.IdemWhere a person who acquires a taxable service from a licensee under Part II.1 or II.2 has incorrectly stated or certified that the service was intended for a use rendering the service exempt from tax under that Part, the licensee is entitled to recover from that person the taxes paid or remitted by the licensee under that Part in respect of the amount charged for the service.Liability where purchaser’s statement or certificate incorrectWhere a manufacturer or wholesaler holding a licence granted under or in respect of Part III or VI has purchased goods from another such licensed manufacturer or licensed wholesaler and has incorrectly stated or certified that the goods were being purchased for a use or under conditions rendering the sale of the goods exempt from any tax imposed by Part III or VI,the purchaser and not the manufacturer or wholesaler from whom the goods were purchased is liable to pay the tax and any interest under subsection 79.03(1), ifthe statement or certificate is in writing, andthe manufacturer or wholesaler from whom the goods were purchased establishes that he acted with due care and diligence in relying on the statement or certificate of the purchaser; andin any other case, the purchaser and the manufacturer or wholesaler from whom the goods were purchased are jointly and severally liable to pay the tax and any interest under subsection 79.03(1).
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. R.S., 1985, c. E-15, s. 116;
R.S., 1985, c. 15 (1st Supp.), s. 40, c. 7 (2nd Supp.), s. 51, c. 12 (4th Supp.), s. 37;
2003, c. 15, s. 110.
TRANSITIONALMeaning of taxable serviceFor the purposes of this section, taxable service means a taxable service as defined in subsection 21.1(1) and a taxable service as defined in subsection 21.22(1).Part II.1 and II.2 taxWhere the amount charged for a taxable service by a person providing the service is chargedafter April 1991, orafter August 1990 for a period beginning after 1990,no tax thereon shall be imposed, levied or collected under Part II.1 or II.2.IdemWhere the amount charged for a taxable service by a person providing the service is charged after August 1990 in respect of a period beginning before 1991 and ending after 1990, no tax shall be imposed or levied under Part II.1 or II.2 or collected under those Parts by the person providing the service in respect of the amount charged, to the extent that the amount charged relates to the portion of the service that is provided after 1990.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
Tax under Part VINo tax shall be imposed, levied or collected under Part VI on any goodsthat are sold by a licensed wholesaler and that, before 1991, have not been delivered to the purchaser of the goods, and the property in which has not, before 1991, passed to the purchaser thereof;the importation of which has not been accounted for under subsection 32(1), (2) or (5) of the Customs Act before 1991;that are manufactured or produced in Canada and that have not, before 1991, been delivered to a purchaser of the goods, and the property in which has not, before 1991, passed to a purchaser thereof; orthat are retained by the manufacturer or producer thereof or by a licensed wholesaler for that person’s own use after 1990 or for rental after 1990 by that person to others.IdemWhere goods sold by a licensed wholesaler are delivered after 1990 to a purchaser of the goods but property in the goods passed to the purchaser before 1991, the goods shall, for the purposes of paragraph 50(1)(c), be deemed to have been delivered to the purchaser on the day the property in the goods passed to the purchaser.IdemWhere a person is a manufacturer or producer who has, before November 1989, entered into a contract referred to in subparagraph 50(1)(a)(ii) in respect of the sale of goods of the person’s manufacture or productionno tax shall be imposed, levied or collected under Part VI in respect of instalments that become payable under that contract after 1990; andwhere an invoice issued or dated before 1991 is issued for an instalment payable under that contract after 1990, subsection 152(1) does not apply in respect of the instalment.IdemWhere a person is a manufacturer or producer who has, after October 1989, entered into a contract referred to in subparagraph 50(1)(a)(ii) in respect of the sale of goods of the person’s manufacture or production and the goods have not been delivered to the purchaser, and the property therein has not passed to the purchaser, before 1991,no tax shall be imposed, levied or collected under Part VI in respect of instalments that become payable under that contract after 1990; andwhere an invoice issued or dated before 1991 is issued for an instalment payable under that contract after 1990, subsection 152(1) does not apply in respect of the instalment.IdemWhere a person who is a manufacturer or producer has, after October 1989, entered into a contract referred to in subparagraph 50(1)(a)(ii) in respect of the sale of goods of the person’s manufacture or production and the goods have been delivered to the purchaser, or the property therein has passed to the purchaser, before 1991, any instalments that become payable under the contract after November 1990 shall, for the purposes of this Act, be deemed to have become payable on December 31, 1990.IdemNotwithstanding subsection (3), subsection (5) applies in respect of the instalments as set out in a contract entered into before November 1989 where any amendments or alterations to the contract that vary the timing or amounts of the instalment under the contract are made after October 1989 and before 1991, except where the amendments or alterations to the contract are reasonable to accommodate a change in the total consideration payable under the contract.Diversions after 1990Where any of the events described in subsection 50(7) or (8) in respect of goods occur after 1990, no tax under Part VI shall be imposed, levied or collected under that subsection in respect of the goods.Continuous suppliesWhere Part VI applies in respect of goods that are delivered on a continuous basis, by means of a wire, pipeline or other conduit, by a vendor who is a licensed wholesaler or the manufacturer or producer of the goods and who invoices on a regular or periodic basis, and the invoice for a sale of the goods is issued by the vendor to the purchaser after August 1990, no tax shall be imposed, levied or collected under Part VI in respect of the goods, to the extent that the goods are delivered and the property therein passes to the purchaser after 1990.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 5.
Revocation of approvalSubsection 49(2) does not apply in respect of tax imposed under Part VI where an approval of an application given under subsection 48(3) is revoked after 1990.Wholesaler’s licence cancellationSubsection 56(3) does not apply in respect of tax imposed under Part VI where a licence granted under section 55 is cancelled after 1990.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
Sales Tax Inventory RebateDefinitionsIn this section,capital propertyimmobilisationcapital property, in respect of a person, means property that is, or that would be if the person were a taxpayer under the Income Tax Act, capital property of the person within the meaning of that Act, other than property described in Class 12 or 14 of Schedule II to the Income Tax Regulations;commercial activityactivité commercialecommercial activity of a person means a business carried on by the person (other than a business carried on by an individual without a reasonable expectation of profit), except to the extent to which the business involves the making of exempt supplies (within the meaning assigned by subsection 123(1)) by the person;inventoryinventaireinventory of a person as of any time means items of tax-paid goods that are described in the person’s inventory in Canada at that time and that areheld at that time for sale, lease or rental separately, for a price or rent in money, to others in the ordinary course of a commercial activity of the person, orbuilding materials held at that time for use by the person in a business of constructing, renovating or improving buildings or structures carried on by the person, but not including any such goods that before that time have been incorporated into new construction or a renovation or improvement or have otherwise been delivered to a construction, renovation or improvement job site,and that are notcapital properties of the person,held by the person for use in the construction, renovation or improvement of property that is or is to be capital property of the person, orincluded in the description of any other person’s inventory at that time;sales taxtaxe de ventesales tax means the consumption or sales tax imposed under Part VI;tax-paid goodsmarchandises libérées de taxetax-paid goods means goods, acquired before 1991 by a person, that have not been previously written off in the accounting records of the person’s business for the purposes of the Income Tax Act and that are, as of the beginning of January 1, 1991,new goods that are unused,remanufactured or rebuilt goods that are unused in their condition as remanufactured or rebuilt goods, orused goodsand on the sale price or on the volume sold of which tax (other than tax payable in accordance with subparagraph 50(1)(a)(ii)) was imposed under subsection 50(1), was paid and is not, but for this section, recoverable.Goods in inventoryWhere, under a contract referred to in subsection 118(3), sales tax has been paid on instalments under the contract in respect of any goods included in the purchaser’s inventory and the goods have been delivered to the purchaser, or the title thereto has passed to the purchaser, before 1991, the goods shall be included in the inventory of that purchaser only to the extent of the instalments made before 1991 in respect thereof under the contract.Goods not expected to be soldFor the purposes of paragraph (a) of the definition inventory in subsection (1), that portion of the tax-paid goods that are described in a person’s inventory in Canada at any time that can reasonably be expected to be consumed or used by the person shall be deemed not to be held at that time for sale, lease or rental.Rebate of sales taxSubject to this section, where a person who, as of January 1, 1991, is registered under Subdivision d of Division V of Part IX has any tax-paid goods in inventory at the beginning of that day,where the tax-paid goods are goods other than used goods, the Minister shall, on application made by the person, pay to that person a rebate in accordance with subsections (5) and (8); andwhere the tax-paid goods are used goods, the goods shall be deemed, for the purposes of section 176, to be used tangible personal property supplied in Canada by way of sale on January 1, 1991 to the person in respect of which tax was not payable by the person and to have been acquired for the purpose of supply in the course of commercial activities of the person for consideration paid on that day equal to 50% of the amount at which the goods would be required to be valued on that date for the purpose of computing the person’s income from a business for the purposes of the Income Tax Act.Restriction on rebateWhere section 178.3 applies, on January 1, 1991, to a direct seller, exclusive products of the direct seller that, but for this subsection, form part of the inventory at the beginning of that day of an independent sales contractor of the direct seller who is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect on that day, shall be deemed, for the purposes of this section, not to form part of that inventory.DefinitionsIn subsection (3.1), direct seller, distributor, exclusive product and independent sales contractor have the meanings assigned by section 178.1.Taking of inventoryFor the purposes of subsection (3), the inventory of a person shall be determined as of the beginning of January 1, 1991, and may be determinedon January 1, 1991;where the business of the person is not open for active business on January 1, 1991, on the first day after January 1, 1991, or the last day before January 1, 1991, on which the business is open for active business; oron a day before or after January 1, 1991 where the Minister is satisfied that the inventory system of the person is adequate to permit a reasonable determination of the person’s inventory as of January 1, 1991.Determination of rebateSubject to subsection (8), for the purposes of subsection (3), the rebate payable to a person in respect of the person’s inventory as of the beginning of January 1, 1991 is, subject to subsection 337(7), the amount determined by a prescribed method using prescribed tax factors.Application of Parts VI and VIIParts VI and VII, other than subsection 72(7), apply in respect of an application for a rebate and of a payment of a rebate under this section as if the application were an application for a refund under section 68 and the payment were made under section 72.Interest on paymentWhere a rebate is paid to a person under this section, interest at the prescribed rate shall be paid to the person beginning on the day that is the later ofMarch 1, 1991, andthe day that is twenty-one days after the day the application is received by the Minister,and ending on the day the rebate is paid, and compounded monthly on the total amount of the payment and interest outstanding.LimitationNo rebate shall be paid under this section unless the application therefor is filed with the Minister before 1992.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 6;
1999, c. 31, s. 233(F).
New Housing RebateDefinitionsIn this section,estimated federal sales taxtaxe de vente fédérale estimativeestimated federal sales tax for a residential complex means the prescribed amount in respect of the complex;specified residential compleximmeuble d’habitation déterminéspecified residential complex meansa multiple unit residential complex containing more than two residential units where the construction or substantial renovation of the complex began before 1991 and subsection 191(3) did not apply and, notwithstanding subsections 191(6) and (7), would not have applied, after the construction or substantial renovation began and before 1991, to deem a supply of the complex to have been made, ora residential condominium unit where the construction or substantial renovation of the condominium complex in which the unit is situated began before 1991 and neither subsection 191(1) nor (2) applied, after the construction or substantial renovation began and before 1991, to deem a supply of the unit to have been made;specified single unit residential compleximmeuble d’habitation à logement unique déterminéspecified single unit residential complex means a residential complex (other than a floating home or a mobile home)that is a single unit residential complex or a multiple unit residential complex containing not more than two residential units,the construction or substantial renovation of which began before 1991, andthat was not occupied by any individual as a place of residence or lodging after the construction or substantial renovation began and before 1991.Rebate for specified single unit residential complexWherea builder of a specified single unit residential complexgives possession of the complex to a person under a lease, licence or similar arrangement and thereby is deemed under subsection 191(1) or (3) to have made a taxable supply of the complex, ormakes a taxable supply by way of sale of the complex to an individual,tax under Part IX is payable in respect of the supply,the individual or person, as the case may be, first takes possession of the complex after 1990 and before 1995, andthe construction or substantial renovation of the complex is substantially completedbefore July 1991, where the individual or person, as the case may be, first takes possession of the complex before July 1991, andbefore 1991, in any other case,the Minister shall, subject to subsections (4) and (4.1), pay a rebate to the individual or, in the case described in subparagraph (a)(i), to the builder equal to2/3 of the estimated federal sales tax for the complex where, before April 1991, the construction or substantial renovation of the complex is substantially completed and possession of the complex is transferred, and1/3 of the estimated federal sales tax for the complex in any other case.Liability of the builderWhere a rebate in respect of a residential complex is paid under subsection (2) to an individual who is not a builder of the complex, or to an assignee of the individual, andthe builder has given to the individual or to the Minister incorrect information in writing as to the substantial completion before 1991 of the construction or substantial renovation of the complex,the builder knew or ought to have known that the information was incorrect, andthe individual did not know and could not reasonably be expected to have known that the information was incorrect,the rebate shall be deemed, for the purposes of section 81.39, to have been received by the builder as if the builder had applied therefor.Rebate for specified residential complexWhere, immediately before 1991, a builder of a specified residential complex (other than a builder of the complex to whom, because of subsection 191(5) or (6), subsections 191(1) to (4) do not apply) owned or had possession of the complex and had not transferred ownership or possession under an agreement of purchase and sale to any person who is not a builder of the complex, the Minister shall, subject to subsections (4) and (4.1), pay a rebate to the builder equal towhere the complex is a multiple unit residential complex,50% of the estimated federal sales tax for the complex, where the construction or substantial renovation of the complex was, on January 1, 1991, more than 25% completed and not more than 50% completed, and75% of the estimated federal sales tax for the complex, where the construction or substantial renovation of the complex was, on January 1, 1991, more than 50% completed; andwhere the complex is a residential condominium unit in a condominium complex,50% of the estimated federal sales tax for the unit, where the construction or substantial renovation of the condominium complex was, on January 1, 1991, more than 25% completed and not more than 50% completed, and75% of the estimated federal sales tax for the unit, where the construction or substantial renovation of the condominium complex was, on January 1, 1991, more than 50% completed.Application for rebateA rebate in respect of a residential complex shall not be paid under this section to a person where the person fails to apply to the Minister for the rebate in prescribed form and manner before 1995 or where a rebate under this section in respect of the complex was paid to any other person entitled thereto.Rebate based on considerationWhere the estimated federal sales tax for a residential complex is an amount based on the consideration, or a portion of the consideration, for a supply of the complex, a rebate in respect of the complex shall not be paid under this section to a person unless the person has applied for the rebate after tax under Part IX became payable in respect of that supply.Application of section 191For the purposes of this section, section 191 shall be deemed to have been in force at all times before 1991.Application of Parts VI and VIIParts VI and VII apply in respect of an application for a rebate and of a payment of a rebate under this section as if the application were an application for a refund under section 68 and the payment were made under section 72.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 7;
1994, c. 9, s. 1.
Application of anti-avoidance ruleSection 274 applies to this Part with such modifications as the circumstances require, and for that purpose every reference in that section to “an assessment, a reassessment or an additional assessment” shall be read as a reference to “an assessment, a reassessment, an additional assessment, a determination or a redetermination”.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 8.
GOODS AND SERVICES TAXApplicationThis Part is bindingon Her Majesty in right of Canada; andon Her Majesty in right of a province in respect of obligations as a supplier to collect and to remit tax in respect of taxable supplies made by Her Majesty in right of the province.[Repealed, 1993, c. 27, s. 9]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 9.
InterpretationDefinitionsIn section 121, this Part and Schedules V to X,admissiondroit d’entréeadmission, in respect of a place of amusement or a seminar, an activity or an event, means a right of entry or access to, or attendance at, the place of amusement or the seminar, activity or event;AgencyAgenceAgency means the Canada Revenue Agency continued by subsection 4(1) of the Canada Revenue Agency Act;amountmontantamount means money, property or a service, expressed in terms of the amount of money or the value in terms of money of the property or service;assessmentcotisationassessment means an assessment under this Part and includes a reassessment under this Part;asset management serviceservice de gestion des actifsasset management service means a service (other than a prescribed service) rendered by a particular person in respect of the assets or liabilities of another person that is a service ofmanaging or administering the assets or liabilities, irrespective of the level of discretionary authority the particular person has to manage some or all of the assets or liabilities,providing research, analysis, advice or reports in respect of the assets or liabilities,determining which assets or liabilities are to be acquired or disposed of, oracting to realize performance targets or other objectives in respect of the assets or liabilities;bankbanquebank means a bank or an authorized foreign bank within the meaning of section 2 of the Bank Act;basic tax contentteneur en taxebasic tax content, at a particular time, of property of a person meansexcept where paragraph (b) applies, the amount determined by the formula(A - B) × CwhereAis the total ofthe tax that was payable by the person in respect of the last acquisition or importation of the property by the person,the tax that was payable by the person in respect of improvements to the property acquired, imported or brought into a participating province by the person after the property was last acquired or imported by the person,the tax under section 165 that would have been payable by the person, in respect of the last acquisition of the property by the person or in respect of improvements to the property acquired by the person after the property was last acquired or imported by the person, in the absence of subsection 153(4), section 167, section 167.11 in the case of property acquired under an agreement for a qualifying supply (as defined in that section) that was not, immediately before that acquisition, capital property of the supplier or the fact that the property or improvements were acquired by the person for consumption, use or supply exclusively in commercial activities,the tax under any of sections 218 and 218.1 and Division IV.1 that would have become payable by the person in respect of the last acquisition or importation of the property by the person, and the tax thereunder that would have become payable by the person in respect of improvements to the property acquired, imported or brought into a participating province by the person after the property was last acquired or imported by the person, but for the fact that the person acquired or imported the property or improvement or brought the improvement into the participating province, as the case may be, for consumption, use or supply exclusively in the course of commercial activities of the person, andall amounts determined by the formulaD × E × F/GwhereDis an amount of tax (other than tax that the person was exempt from paying under any other Act or law) under subsection 165(1) or section 212 or 218 referred to in any of subparagraphs (i) to (iii) of the description of A that became payable, or would have become payable in the circumstances described in that subparagraph, by the person while the person was a selected listed financial institution,Eis the person’s percentage for a participating province determined for the purposes of subsection 225.2(2) for the person’s taxation year that includes the time that amount so became payable, or would have so become payable,Fis that province’s tax rate, andGis7%, if the amount determined for D is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends before July 1, 2006,6%, if the amount determined for D is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends after June 30, 2006, but before January 1, 2008, and5%, in any other case,Bis the total ofall tax referred to in subparagraphs (i) to (iv) of the description of A that the person was exempt from paying under any other Act or law,all tax (other than tax referred to in subparagraph (i)) under subsection 165(2) and section 212.1 referred to in any of subparagraphs (i) to (iv) of the description of A that became payable by the person, or would have become payable by the person in the circumstances described in that subparagraph, while the person was a selected listed financial institution,all amounts (other than input tax credits and amounts referred to in subparagraphs (i) and (ii)) in respect of tax referred to in subparagraphs (i) and (ii) of the description of A that the person was entitled to recover by way of rebate, refund, remission or otherwise under this or any other Act or law or would have been entitled to so recover if the property or improvement had been acquired for use exclusively in activities that are not commercial activities, andall amounts (other than input tax credits and amounts referred to in subparagraphs (i) and (ii)) in respect of tax referred to in subparagraphs (iii) and (iv) of the description of A that the person would have been entitled to recover by way of rebate, refund, remission or otherwise under this or any other Act or law if that tax had been payable and the property or improvement had been acquired for use exclusively in activities that are not commercial activities, andCis the lesser of 1 and the fractionH/IwhereHis the fair market value of the property at the particular time, andIis the total ofthe value of the consideration for the last supply to the person of the property or, where the property was last imported by the person, the value of the property determined under section 215, andwhere the person acquired or imported improvements to the property after the property was last so acquired or imported, the total of all amounts each of which is the value of the consideration for a supply to the person of such an improvement or, where such an improvement is property that was imported or brought into a participating province by the person, the value of the property determined under section 215 or subsection 220.05(1), 220.06(1) or 220.07(3), as the case may require, andif the person brought the property into a participating province from another province for consumption, use or supply in the participating province in circumstances in which the person was required to pay tax in respect of the property under section 220.05, or would have been required to pay that tax but for the fact that the property was brought into that province for consumption, use or supply exclusively in commercial activities or the person was exempt from paying that tax under any other Act or law, the amount determined by the formula(J - K) × LwhereJis the total ofthe basic tax content of the property, determined under paragraph (a), immediately before the property was brought into the province,the tax that became payable by the person in respect of the property under section 220.05 when the property was brought into the participating province,the tax that was payable by the person in respect of improvements to the property acquired, imported or brought into a participating province by the person after the property was brought into the participating province,the tax under section 165 that would have been payable by the person, in respect of improvements to the property acquired by the person after the property was brought into the participating province, in the absence of subsection 153(4), section 167, section 167.11 in the case of property acquired under an agreement for a qualifying supply (as defined in that section) that was not, immediately before that acquisition, capital property of the supplier or the fact that the improvements were acquired by the person for consumption, use or supply exclusively in commercial activities, orthe tax under section 220.05 that would have become payable by the person in respect of the property, and the tax under any of sections 218 and 218.1 and Division IV.1 that would have become payable by the person in respect of improvements to the property acquired, imported or brought into a participating province by the person after the property was brought into the participating province, but for the fact that the person brought the property into the participating province, or acquired or imported the improvement or brought it into the province, as the case may be, for consumption, use or supply exclusively in the course of commercial activities of the person, andall amounts determined by the formulaM × N × O/PwhereMis an amount of tax (other than tax that the person was exempt from paying under any other Act or law) under subsection 165(1) or section 212 or 218 referred to in subparagraph (iii) or (iv) of the description of J that became payable, or would have become payable in the circumstances described in that subparagraph, by the person after the property was brought into the participating province and while the person was a selected listed financial institution,Nis the person’s percentage for a participating province determined for the purposes of subsection 225.2(2) for the person’s taxation year that includes the time that amount so became payable, or would have so become payable,Ois that province’s tax rate, andPis7%, if the amount determined for M is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends before July 1, 2006,6%, if the amount determined for M is included, or would be included if the tax became payable, in the description of A in subsection 225.2(2) for a reporting period of the selected listed financial institution that ends after June 30, 2006, but before January 1, 2008, and5%, in any other case,Kis the total ofall tax referred to in subparagraphs (ii) to (v) of the description of J that the person was exempt from paying under any other Act or law,all tax (other than tax referred to in subparagraph (i)) under subsection 165(2) and section 212.1 referred to in any of subparagraphs (ii) to (v) of the description of J that became payable by the person, or would have become payable by the person in the circumstances described in that subparagraph, while the person was a selected listed financial institution,all amounts (other than input tax credits and amounts referred to in subparagraphs (i) and (ii)) in respect of tax referred to in subparagraphs (ii) and (iii) of the description of J that the person was entitled to recover by way of rebate, refund, remission or otherwise under this or any other Act or law or would have been entitled to so recover if the property or improvement had been acquired for use exclusively in activities that are not commercial activities, andall amounts (other than input tax credits and amounts referred to in subparagraphs (i) and (ii)) in respect of tax referred to in subparagraphs (iv) and (v) of the description of J that the person would have been entitled to recover by way of rebate, refund, remission or otherwise under this or any other Act or law if that tax had been payable and the property or improvement had been acquired for use exclusively in activities that are not commercial activities, andLis lesser of 1 and the fractionQ/RwhereQis the fair market value of the property at the particular time, andRis the total ofthe value of the property determined under subsection 220.05(1), 220.06(1) or 220.07(3), as the case may require, at the time the property was brought into the participating province, andwhere the person acquired or imported improvements to the property after the property was brought into the participating province, the total of all amounts each of which is the value of the consideration for a supply to the person of such an improvement or, where such an improvement is property that was imported or brought into a participating province by the person, the value of the improvement determined under section 215 or subsection 220.05(1), 220.06(1) or 220.07(3), as the case may require;builderconstructeurbuilder of a residential complex or of an addition to a multiple unit residential complex means a person whoat a time when the person has an interest in the real property on which the complex is situated, carries on or engages another person to carry on for the personin the case of an addition to a multiple unit residential complex, the construction of the addition to the multiple unit residential complex,in the case of a residential condominium unit, the construction of the condominium complex in which the unit is situated, andin any other case, the construction or substantial renovation of the complex,acquires an interest in the complex at a time whenin the case of an addition to a multiple unit residential complex, the addition is under construction, andin any other case, the complex is under construction or substantial renovation,in the case of a mobile home or floating home, makes a supply of the home before the home has been used or occupied by any individual as a place of residence,acquires an interest in the complexin the case of a condominium complex or residential condominium unit, at a time when the complex is not registered as a condominium, orin any case, before it has been occupied by an individual as a place of residence or lodging,for the primary purpose ofmaking one or more supplies of the complex or parts thereof or interests therein by way of sale, ormaking one or more supplies of the complex or parts thereof by way of lease, licence or similar arrangement to persons other than to individuals who are acquiring the complex or parts otherwise than in the course of a business or an adventure or concern in the nature of trade, orin any case, is deemed under subsection 190(1) to be a builder of the complex,but does not includean individual described in paragraph (a), (b) or (d) whocarries on the construction or substantial renovation,engages another person to carry on the construction or substantial renovation for the individual, oracquires the complex or interest in it,otherwise than in the course of a business or an adventure or concern in the nature of trade,an individual described in paragraph (c) who makes a supply of the mobile home or floating home otherwise than in the course of a business or an adventure or concern in the nature of trade, ora person described in any of paragraphs (a) to (c) whose only interest in the complex is a right to purchase the complex or an interest in it from a builder of the complex;businessentreprisebusiness includes a profession, calling, trade, manufacture or undertaking of any kind whatever, whether the activity or undertaking is engaged in for profit, and any activity engaged in on a regular or continuous basis that involves the supply of property by way of lease, licence or similar arrangement, but does not include an office or employment;calendar quartertrimestre civilcalendar quarter means a period of three months beginning on the first day of January, April, July or October in each calendar year;capital propertyimmobilisationcapital property, in respect of a person, means property that is, or would be if the person were a taxpayer under the Income Tax Act, capital property of the person within the meaning of that Act, other than property described in Class 12, 14 or 44 of Schedule II to the Income Tax Regulations;carriertransporteurcarrier means a person who supplies a freight transportation service within the meaning assigned by subsection 1(1) of Part VII of Schedule VI;charityorganisme de bienfaisancecharity means a registered charity or registered Canadian amateur athletic association within the meaning assigned to those expressions by subsection 248(1) of the Income Tax Act, but does not include a public institution;closely related groupgroupe étroitement liéclosely related group means a group of corporations, each member of which is a registrant resident in Canada and is closely related, within the meaning assigned by section 128, to each other member of the group, and for the purposes of this definition,a non-resident insurer that has a permanent establishment in Canada is deemed to be resident in Canada, andcredit unions and members of a mutual insurance group are deemed to be registrants;commercial activityactivité commercialecommercial activity of a person meansa business carried on by the person (other than a business carried on without a reasonable expectation of profit by an individual, a personal trust or a partnership, all of the members of which are individuals), except to the extent to which the business involves the making of exempt supplies by the person,an adventure or concern of the person in the nature of trade (other than an adventure or concern engaged in without a reasonable expectation of profit by an individual, a personal trust or a partnership, all of the members of which are individuals), except to the extent to which the adventure or concern involves the making of exempt supplies by the person, andthe making of a supply (other than an exempt supply) by the person of real property of the person, including anything done by the person in the course of or in connection with the making of the supply;commercial serviceservice commercialcommercial service, in respect of tangible personal property, means any service in respect of the property other thana service of shipping the property supplied by a carrier, anda financial service;CommissionercommissaireCommissioner means the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act;common-law partnerconjoint de faitcommon-law partner of an individual at any time means a person who is the common-law partner of the individual at that time for the purposes of the Income Tax Act;condominium compleximmeuble d’habitation en copropriétécondominium complex means a residential complex that contains more than one residential condominium unit;considerationcontrepartieconsideration includes any amount that is payable for a supply by operation of law;consideration fraction[Repealed, 1997, c. 10, s. 150]consumerconsommateurconsumer of property or a service means a particular individual who acquires or imports the property or service for the particular individual’s personal consumption, use or enjoyment or the personal consumption, use or enjoyment of any other individual at the particular individual’s expense, but does not include an individual who acquires or imports the property or service for consumption, use or supply in the course of commercial activities of the individual or other activities in the course of which the individual makes exempt supplies;continuous transmission commodityproduit transporté en continucontinuous transmission commodity means electricity, crude oil, natural gas, or any tangible personal property, that is transportable by means of a wire, pipeline or other conduit;conventioncongrèsconvention means a formal meeting or assembly that is not open to the general public, but does not include a meeting or assembly the principal purpose of which isto provide any type of amusement, entertainment or recreation,to conduct contests or games of chance, orto transact the business of the convenor or attendeesin the course of a trade show that is open to the general public, orotherwise than in the course of a trade show;convention facilitycentre de congrèsconvention facility means real property that is acquired by way of lease, licence or similar arrangement by the sponsor or organizer of a convention for use exclusively as the site for the convention;cooperative corporationcoopérativecooperative corporation means a cooperative housing corporation and any other cooperative corporation within the meaning assigned by subsection 136(2) of the Income Tax Act;cooperative housing corporationcoopérative d’habitationcooperative housing corporation means a corporation that was incorporated, by or under a law of Canada or a province providing for the establishment of the corporation or respecting the establishment of cooperative corporations, for the purpose of making supplies by way of lease, licence or similar arrangement of residential units to its members for the purpose of their occupancy as places of residence for individuals wherethe statute by or under which it was incorporated, its charter, articles of association or by-laws or its contracts with its members require that the activities of the corporation be engaged in at or near cost after providing for reasonable reserves and hold forth the prospect that surplus funds arising from those activities will be distributed among its members in proportion to patronage,none of its members (except other cooperative corporations) have more than one vote in the conduct of the affairs of the corporation, andat least 90% of its members are individuals or other cooperative corporations and at least 90% of its shares are held by such persons;couriermessagercourier has the meaning assigned by subsection 2(1) of the Customs Act;credit notenote de créditcredit note means a credit note issued under subsection 232(3);credit unioncaisse de créditcredit union has the meaning assigned by subsection 137(6) of the Income Tax Act and includes a corporation described in subparagraph 137.1(5)(a)(i) of that Act;debit notenote de débitdebit note means a debit note issued under subsection 232(3);debt securitytitre de créancedebt security means a right to be paid money and includes a deposit of money, but does not include a lease, licence or similar arrangement for the use of, or the right to use, property other than a financial instrument;Department[Repealed, 1999, c. 17, s. 152]Deputy Minister[Repealed, 1999, c. 17, s. 152]designated municipal propertybien municipal désignédesignated municipal property means propertythat is property of a person who is at any time designated to be a municipality for the purposes of section 259,that the person intended at that time to consume, use or supply in the course of activities specified in the designation and otherwise than exclusively in the course of activities that are not activities specified in the designation, andin respect of which, or in respect of an improvement to which, an amount included in the total tax charged in respect of the property or service under paragraph (a) of the definition non-creditable tax charged in subsection 259(1) isan amount of tax in respect of a supply made to, or the importation or bringing into a participating province of the property or an improvement to it by, the person at that time,an amount deemed to have been paid or collected at that time by the person,an amount required to be added under subsection 129(7) in determining the person’s net tax as a result of a branch or division of the person becoming a small supplier division at that time, oran amount required to be added under paragraph 171(4)(b) in determining the person’s net tax as a result of the person ceasing at that time to be a registrant;direct costcoût directdirect cost of a supply of tangible personal property or a service means the total of all amounts each of which is the consideration paid or payable by the supplierfor the property or service if it was purchased by the supplier for the purpose of making a supply by way of sale of the property or service, orfor an article or material (other than capital property of the supplier) that was purchased by the supplier, to the extent that the article or material is to be incorporated into or is to form a constituent or component part of the property, or is to be consumed or expended directly in the process of manufacturing, producing, processing or packaging the propertyand, for the purposes of this definition, the consideration paid or payable by a supplier for property or a service is deemed to includetax under this Part payable by the supplier in respect of the acquisition or importation of the property or service by the supplier,if the property was brought into a participating province from another province, any tax under this Part payable by the supplier in respect of the bringing in of the property into the participating province, andany tax, duty or fee payable in respect of the acquisition or importation of the property or service by the supplier and prescribed for the purposes of section 154, excluding the portion of the tax (other than tax that became payable under the first paragraph of section 16 of An Act respecting the Québec sales tax, R.S.Q., c. T-0.1, by the supplier at a time when the supplier was a registrant as defined in section 1 of that Act), duty or fee that is recovered or recoverable by the supplier;documentdocumentdocument includes money, a security and a record;employeesalariéemployee includes an officer;employeremployeuremployer, in relation to an officer, means the person from whom the officer receives remuneration;equity securitytitre de participationequity security means a share of the capital stock of a corporation or any interest in or right to such a share;excisable goodsproduit soumis à l’acciseexcisable goodsmeans beer or malt liquor (within the meaning assigned by section 4 of the Excise Act) and spirits, wine and tobacco products (within the meaning assigned by section 2 of the Excise Act, 2001); exclusiveexclusifexclusive meansin respect of the consumption, use or supply of property or a service by a person that is not a financial institution, all or substantially all of the consumption, use or supply of the property or service, andin respect of the consumption, use or supply of property or a service by a financial institution, all of the consumption, use or supply of the property or service;exempt supplyfourniture exonéréeexempt supply means a supply included in Schedule V;exportexportationexport means export from Canada;fair market valuejuste valeur marchandefair market value of property or a service supplied to a person means the fair market value of the property or service without reference to any tax excluded by section 154 from the consideration for the supply;financial institutioninstitution financièrefinancial institution, at any time, means a person who is at that time a financial institution under section 149;financial instrumenteffet financierfinancial instrument meansa debt security,an equity security,an insurance policy,an interest in a partnership, a trust or the estate of a deceased individual, or any right in respect of such an interest,a precious metal,an option or a contract for the future supply of a commodity, where the option or contract is traded on a recognized commodity exchange,a prescribed instrument,a guarantee, an acceptance or an indemnity in respect of anything described in paragraph (a), (b), (d), (e) or (g), oran option or a contract for the future supply of money or anything described in any of paragraphs (a) to (h);financial serviceservice financierfinancial service meansthe exchange, payment, issue, receipt or transfer of money, whether effected by the exchange of currency, by crediting or debiting accounts or otherwise,the operation or maintenance of a savings, chequing, deposit, loan, charge or other account,the lending or borrowing of a financial instrument,the issue, granting, allotment, acceptance, endorsement, renewal, processing, variation, transfer of ownership or repayment of a financial instrument,the provision, variation, release or receipt of a guarantee, an acceptance or an indemnity in respect of a financial instrument,the payment or receipt of money as dividends (other than patronage dividends), interest, principal, benefits or any similar payment or receipt of money in respect of a financial instrument,the payment or receipt of an amount in full or partial satisfaction of a claim arising under an insurance policy,the making of any advance, the granting of any credit or the lending of money,the underwriting of a financial instrument,any service provided pursuant to the terms and conditions of any agreement relating to payments of amounts for which a credit card voucher or charge card voucher has been issued,the service of investigating and recommending the compensation in satisfaction of a claim wherethe claim is made under a marine insurance policy, orthe claim is made under an insurance policy that is not in the nature of accident and sickness or life insurance andthe service is supplied by an insurer or by a person who is licensed under the laws of a province to provide such a service, orthe service is supplied to an insurer or a group of insurers by a person who would be required to be so licensed but for the fact that the person is relieved from that requirement under the laws of a province,the service of providing an insurer or a person who supplies a service referred to in paragraph (j) with an appraisal of the damage caused to property, or in the case of a loss of property, the value of the property, where the supplier of the appraisal inspects the property, or in the case of a loss of the property, the last-known place where the property was situated before the loss,any supply deemed by subsection 150(1) or section 158 to be a supply of a financial service,the agreeing to provide, or the arranging for, a service that isreferred to in any of paragraphs (a) to (i), andnot referred to in any of paragraphs (n) to (t), ora prescribed service,but does not includethe payment or receipt of money as consideration for the supply of property other than a financial instrument or of a service other than a financial service,the payment or receipt of money in settlement of a claim (other than a claim under an insurance policy) under a warranty, guarantee or similar arrangement in respect of property other than a financial instrument or a service other than a financial service,the service of providing advice, other than a service included in this definition because of paragraph (j) or (j.1),the provision, to an investment plan (as defined in subsection 149(5)) or any corporation, partnership or trust whose principal activity is the investing of funds, ofa management or administrative service, orany other service (other than a prescribed service),if the supplier is a person who provides management or administrative services to the investment plan, corporation, partnership or trust,an asset management service,a professional service provided by an accountant, actuary, lawyer or notary in the course of a professional practice,the arranging for the transfer of ownership of shares of a cooperative housing corporation,a debt collection service, rendered under an agreement between a person agreeing to provide, or arranging for, the service and a particular person other than the debtor, in respect of all or part of a debt, including a service of attempting to collect, arranging for the collection of, negotiating the payment of, or realizing or attempting to realize on any security given for, the debt, but does not include a service that consists solely of accepting from a person (other than the particular person) a payment of all or part of an account unlessunder the terms of the agreement the person rendering the service may attempt to collect all or part of the account or may realize or attempt to realize on any security given for the account, orthe principal business of the person rendering the service is the collection of debt,a service (other than a prescribed service) of managing credit that is in respect of credit cards, charge cards, credit accounts, charge accounts, loan accounts or accounts in respect of any advance and is provided to a person granting, or potentially granting, credit in respect of those cards or accounts, including a service provided to the person ofchecking, evaluating or authorizing credit,making decisions on behalf of the person in relation to a grant, or an application for a grant, of credit,creating or maintaining records for the person in relation to a grant, or an application for a grant, of credit or in relation to the cards or accounts, ormonitoring another person’s payment record or dealing with payments made, or to be made, by the other person,a service (other than a prescribed service) that is preparatory to the provision or the potential provision of a service referred to in any of paragraphs (a) to (i) and (l), or that is provided in conjunction with a service referred to in any of those paragraphs, and that isa service of collecting, collating or providing information, ora market research, product design, document preparation, document processing, customer assistance, promotional or advertising service or a similar service,property (other than a financial instrument or prescribed property) that is delivered or made available to a person in conjunction with the rendering by the person of a service referred to in any of paragraphs (a) to (i) and (l),any service the supply of which is deemed under this Part to be a taxable supply, ora prescribed service;fiscal monthmois d’exercicefiscal month of a person means a period that is determined under section 243 to be the fiscal month of the person;fiscal quartertrimestre d’exercicefiscal quarter of a person means a period that is determined under section 243 to be the fiscal quarter of the person;fiscal yearexercicefiscal year of a person meanswhere the person has made an election under section 244 that is in effect, the period that the person elected to be the fiscal year of the person, andin all other cases, the taxation year of the person;floating homemaison flottantefloating home means a structure that is composed of a floating platform and a building designed to be occupied as a place of residence for individuals that is permanently affixed to the platform, but does not include any freestanding appliances or furniture sold with the structure or any structure that has means of, or is capable of being readily adapted for, self-propulsion;foreign conventioncongrès étrangerforeign convention means a conventionat least 75% of the admissions to which are, at the time the sponsor of the convention determines the amount to be charged as consideration therefor, reasonably expected to be supplied to non-resident persons, andthe sponsor of which is an organization whose head office is situated outside Canada or, where the organization has no head office, the member, or majority of members, of which having management and control of the organization is or are non-resident;former spouse[Repealed, 2000, c. 12, s. 111]game of chancejeu de hasardgame of chance means a lottery or other scheme under which prizes or winnings are awarded by way of chance or by way of a mixture of chance and other factors where the result depends more on chance than on the other factors;goodsproduitsgoods has the same meaning as in the Customs Act;governmentgouvernementgovernment means Her Majesty in right of Canada or a province;harmonization datedate d’harmonisationharmonization date for a participating province meansApril 1, 1997 in the case of Nova Scotia, New Brunswick, Newfoundland and Labrador, the Nova Scotia offshore area or the Newfoundland offshore area,July 1, 2010 in the case of Ontario or British Columbia, andthe prescribed date in the case of another participating province;hospital authorityadministration hospitalièrehospital authority means an organization that operates a public hospital and that is designated by the Minister as a hospital authority for the purposes of this Part;importimportationimport means import into Canada;improvementaméliorationsimprovement, in respect of property of a person, means any property or service supplied to, or goods imported by, the person for the purpose of improving the property, to the extent that the consideration paid or payable by the person for the property or service or the value of the goods is, or would be if the person were a taxpayer under the Income Tax Act, included in determining the cost or, in the case of property that is capital property of the person, the adjusted cost base to the person of the property for the purposes of that Act;individualVersion anglaise seulementindividual means a natural person;insurance policypolice d’assuranceinsurance policy meansa policy or contract of insurance (other than a warranty in respect of the quality, fitness or performance of tangible property, where the warranty is supplied to a person who acquires the property otherwise than for resale) that is issued by an insurer, includinga policy of reinsurance issued by an insurer,an annuity contract issued by an insurer, or a contract issued by an insurer that would be an annuity contract except that the payments under the contractare payable on a periodic basis at intervals that are longer or shorter than one year, orvary in amount depending on the value of a specified group of assets or on changes in interest rates, anda contract issued by an insurer all or part of the insurer’s reserves for which vary in amount depending on the value of a specified group of assets,a policy or contract in the nature of accident and sickness insurance, whether the policy is issued, or the contract is entered into, by an insurer, anda bid, performance, maintenance or payment bond issued in respect of a construction contract;insurerassureurinsurer means a person who is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada an insurance business or under the laws of another jurisdiction to carry on in that other jurisdiction an insurance business;inter vivos trustVersion anglaise seulementinter vivos trust means a trust other than a testamentary trust;invoicefactureinvoice includes a statement of account, a bill and any other similar record, regardless of its form or characteristics, and a cash register slip or receipt;listed financial institutioninstitution financière désignéelisted financial institution means a person referred to in paragraph 149(1)(a);listed international agreementaccord international désignélisted international agreement meansthe Convention on Mutual Administrative Assistance in Tax Matters, concluded at Strasbourg on January 25, 1988, as amended from time to time by a protocol, or other international instrument, as ratified by Canada, ora comprehensive tax information exchange agreement that Canada has entered into and that has effect, in respect of another country or jurisdiction;management or administrative serviceservice de gestion ou d’administrationmanagement or administrative service includes an asset management service;membershipdroit d’adhésionmembership includes a right granted by a particular person that entitles another person to services that are provided by, or to the use of facilities that are operated by, the particular person and that are not available, or are not available to the same extent or for the same fee or charge, to persons to whom such a right has not been granted, and also includes such a right that is conditional on the acquisition or ownership of a share, bond, debenture or other security;mineralminéralmineral includes ammonite gemstone, bituminous sands, calcium chloride, coal, gravel, kaolin, oil shale, silica, sand and petroleum, natural gas and related hydrocarbons;MinisterministreMinister means the Minister of National Revenue;mobile homemaison mobilemobile home means a building, the manufacture and assembly of which is completed or substantially completed, that is equipped with complete plumbing, electrical and heating facilities and that is designed to be moved to a site for installation on a foundation and connection to service facilities and to be occupied as a place of residence, but does not include any travel trailer, motor home, camping trailer or other vehicle or trailer designed for recreational use;moneyargentmoney includes any currency, cheque, promissory note, letter of credit, draft, traveller’s cheque, bill of exchange, postal note, money order, postal remittance and other similar instrument, whether Canadian or foreign, but does not include currency the fair market value of which exceeds its stated value as legal tender in the country of issuance or currency that is supplied or held for its numismatic value;monthmoismonth means a period beginning on a particular day in a calendar month and ending onthe day immediately before the day in the next calendar month that has the same calendar number as the particular day, orwhere the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month;multiple unit residential compleximmeuble d’habitation à logements multiplesmultiple unit residential complex means a residential complex that contains more than one residential unit, but does not include a condominium complex;municipalitymunicipalitémunicipality meansan incorporated city, town, village, metropolitan authority, township, district, county or rural municipality or other incorporated municipal body however designated, andsuch other local authority as the Minister may determine to be a municipality for the purposes of this Part;mutual insurance federationfédération de sociétés mutuelles d’assurancemutual insurance federation means a corporation each member of which is a mutual insurance corporation that is required, under an Act of the legislature of a province, to be a member of the corporation, but does not include a corporation the main purpose of which isrelated to automobile insurance,to provide compensation to insurance policy holders of, or claimants on, insolvent insurers, orto establish and manage a guarantee fund, cash reserve fund, mutual aid fund or similar fund for the benefit of its members and to provide financial assistance with regard to losses sustained on the winding-up or dissolution of its members;mutual insurance groupregroupement de sociétés mutuelles d’assurancemutual insurance group means a group that consists ofa mutual insurance federation and its members,where the members of the mutual insurance federation are the sole investors in an investment fund, that fund, andwhere there exists a mutual reinsurance corporation each member of which is a member of the mutual insurance federation and is not entitled to obtain reinsurance from any other reinsurance corporation, that mutual reinsurance corporation;Newfoundland offshore areazone extracôtière de Terre-NeuveNewfoundland offshore area means the offshore area as defined in section 2 of the Canada-Newfoundland Atlantic Accord Implementation Act;new harmonized value-added tax systemnouveau régime de la taxe à valeur ajoutée harmoniséenew harmonized value-added tax system has the same meaning as in subsection 277.1(1);non-participating provinceprovince non participantenon-participating province meansa province that is not a participating province, oranother area in Canada that is outside the participating provinces;non-profit organizationorganisme à but non lucratifnon-profit organization means a person (other than an individual, an estate, a trust, a charity, a public institution, a municipality or a government) that was organized and is operated solely for a purpose other than profit, no part of the income of which is payable to, or otherwise available for the personal benefit of, any proprietor, member or shareholder thereof unless the proprietor, member or shareholder is a club, a society or an association the primary purpose and function of which is the promotion of amateur athletics in Canada;non-residentnon résidantnon-resident means not resident in Canada;Nova Scotia offshore areazone extracôtière de la Nouvelle-ÉcosseNova Scotia offshore area means the offshore area as defined in section 2 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act;officechargeoffice has the meaning assigned by subsection 248(1) of the Income Tax Act, but does not includethe position of trustee in bankruptcy,the position of receiver (including the position of a receiver within the meaning assigned by subsection 266(1)), orthe position of trustee of a trust or personal representative of a deceased individual where the person who acts in that capacity is entitled to an amount for doing so that is included in computing, for the purposes of that Act, the person’s income or, where the person is an individual, the person’s income from a business;officercadreofficer means a person who holds an office;offshore activityactivité extracôtièreoffshore activity meanswhen used in connection with an activity carried on in the Nova Scotia offshore area, an activity in respect of which tax would be imposed under section 212 of the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act if this Part were one of the Nova Scotia Consumption Tax Acts (as defined in section 211 of that Act); andwhen used in connection with an activity carried on in the Newfoundland offshore area, an activity in respect of which tax would be imposed under section 207 of the Canada-Newfoundland Atlantic Accord Implementation Act if this Part were one of the Newfoundland Consumption Tax Acts (as defined in section 206 of that Act);organizerorganisateurorganizer of a convention means a person who acquires the convention facility or related convention supplies and who organizes the convention for another person who is the sponsor of the convention;participating provinceprovince participanteparticipating province meansa province or area referred to in Schedule VIII, but does not include the Nova Scotia offshore area or the Newfoundland offshore area except to the extent that offshore activities are carried on in that area, andif there is a sales tax harmonization agreement with the government of a province relating to the new harmonized value-added tax system and the province is a prescribed province, that province;passenger vehiclevoiture de tourismepassenger vehicle has the meaning assigned by subsection 248(1) of the Income Tax Act;patronage dividendristournepatronage dividend means an amount that is deductible under section 135 of the Income Tax Act in computing, for the purposes of that Act, the income of the person paying the amount;permanent establishmentétablissement stablepermanent establishment, in respect of a particular person, meansa fixed place of business of the particular person, includinga place of management, a branch, an office, a factory or a workshop, anda mine, an oil or gas well, a quarry, timberland or any other place of extraction of natural resources,through which the particular person makes supplies, ora fixed place of business of another person (other than a broker, general commission agent or other independent agent acting in the ordinary course of business) who is acting in Canada on behalf of the particular person and through whom the particular person makes supplies in the ordinary course of business;personpersonneperson means an individual, a partnership, a corporation, the estate of a deceased individual, a trust, or a body that is a society, union, club, association, commission or other organization of any kind;personal propertybien meublepersonal property means property that is not real property;personal representativereprésentant personnelpersonal representative, of a deceased individual or the estate of a deceased individual, means the executor of the individual’s will, the liquidator of the individual’s succession, the administrator of the estate or any person who is responsible under the appropriate law for the proper collection, administration, disposition and distribution of the assets of the estate;personal trustfiducie personnellepersonal trust meansa testamentary trust, oran inter vivos trust that is a personal trust (within the meaning assigned by subsection 248(1) of the Income Tax Act) all the beneficiaries (other than contingent beneficiaries) of which are individuals and all the contingent beneficiaries of which, if any, are individuals, charities or public institutions;place of amusementlieu de divertissementplace of amusement means any premises or place, whether or not enclosed, at or in any part of which is staged or held anyfilm, slide show, sound and light or similar presentation,artistic, literary, theatrical, musical or other performance, entertainment or exhibition,fair, circus, menagerie, rodeo or similar event, orrace, game of chance, athletic contest or other contest or game,and includes a museum, historical site, zoo, wildlife or other park, place where bets are placed and any place, structure, apparatus, machine or device the purpose of which is to provide any type of amusement or recreation;precious metalmétal précieuxprecious metal means a bar, ingot, coin or wafer that is composed of gold, silver or platinum and that is refined to a purity level of at least99.5% in the case of gold and platinum, and99.9% in the case of silver;prescribedVersion anglaise seulementprescribed meansin the case of a form or the manner of filing a form, authorized by the Minister,in the case of the information to be given on a form, specified by the Minister,in the case of the manner of making or filing an election, authorized by the Minister, andin any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation;propertybienproperty means any property, whether real or personal, movable or immovable, tangible or intangible, corporeal or incorporeal, and includes a right or interest of any kind, a share and a chose in action, but does not include money;provinceprovinceprovince includes a participating province;public collegecollège publicpublic college means an organization that operates a post-secondary college or post-secondary technical institutethat receives from a government or a municipality funds that are paid for the purpose of assisting the organization in the ongoing provision of educational services to the general public, andthe primary purpose of which is to provide programs of instruction in one or more fields of vocational, technical or general education;public institutioninstitution publiquepublic institution means a registered charity (within the meaning assigned by subsection 248(1) of the Income Tax Act) that is a school authority, a public college, a university, a hospital authority or a local authority determined under paragraph (b) of the definition municipality to be a municipality;public sector bodyorganisme du secteur publicpublic sector body means a government or a public service body;public service bodyorganisme de services publicspublic service body means a non-profit organization, a charity, a municipality, a school authority, a hospital authority, a public college or a university;qualifying subsidiaryfiliale déterminéequalifying subsidiary of a particular corporation means another corporation not less than 90% of the value and number of the issued and outstanding shares of the capital stock of which, having full voting rights under all circumstances, are owned by the particular corporation, and includesa corporation that is a qualifying subsidiary of a qualifying subsidiary of the particular corporation,where the particular corporation is a credit union, every other credit union, andwhere the particular corporation is a member of a mutual insurance group, every other member of that group;real propertyimmeublereal property includesin respect of property in the Province of Quebec, immovable property and every lease thereof,in respect of property in any other place in Canada, messuages, lands and tenements of every nature and description and every estate or interest in real property, whether legal or equitable, anda mobile home, a floating home and any leasehold or proprietary interest therein;recipientacquéreurrecipient of a supply of property or a service meanswhere consideration for the supply is payable under an agreement for the supply, the person who is liable under the agreement to pay that consideration,where paragraph (a) does not apply and consideration is payable for the supply, the person who is liable to pay that consideration, andwhere no consideration is payable for the supply,in the case of a supply of property by way of sale, the person to whom the property is delivered or made available,in the case of a supply of property otherwise than by way of sale, the person to whom possession or use of the property is given or made available, andin the case of a supply of a service, the person to whom the service is rendered,and any reference to a person to whom a supply is made shall be read as a reference to the recipient of the supply;recordregistrerecord includes an account, an agreement, a book, a chart or table, a diagram, a form, an image, an invoice, a letter, a map, a memorandum, a plan, a return, a statement, a telegram, a voucher, and any other thing containing information, whether in writing or in any other form;registrantinscritregistrant means a person who is registered, or who is required to be registered, under Subdivision d of Division V;related convention suppliesfournitures liées à un congrèsrelated convention supplies means property or services acquired, imported or brought into a participating province by a person exclusively for consumption, use or supply by the person in connection with a convention, but does not includetransportation services, other than a chartered service acquired by the person solely for the purpose of transporting attendees of the convention between any of the convention facilities, places of lodging of the attendees or transportation terminals,entertainment,except for the purposes of subsection 167.2(1) and section 252.4, property or services that are food or beverages or are supplied to the person under a contract for catering, orproperty or services supplied by the person in connection with the convention for consideration that is separate from the consideration for the admission to the convention, unless the recipient of the supply is acquiring the property or services exclusively for consumption or use in the course of promoting, at the convention, property or services supplied by, or a business of, the recipient;releasedédouanementrelease has the same meaning as in the Customs Act;reporting periodpériode de déclarationreporting period of a person means the reporting period of the person as determined under sections 245 to 251;residential compleximmeuble d’habitationresidential complex meansthat part of a building in which one or more residential units are located, together withthat part of any common areas and other appurtenances to the building and the land immediately contiguous to the building that is reasonably necessary for the use and enjoyment of the building as a place of residence for individuals, andthat proportion of the land subjacent to the building that that part of the building is of the whole building,that part of a building that isthe whole or part of a semi-detached house, rowhouse unit, residential condominium unit or other similar premises that is, or is intended to be, a separate parcel or other division of real property owned, or intended to be owned, apart from any other unit in the building, anda residential unit,together with that proportion of any common areas and other appurtenances to the building and the land subjacent or immediately contiguous to the building that is attributable to the unit and that is reasonably necessary for its use and enjoyment as a place of residence for individuals,the whole of a building described in paragraph (a), or the whole of a premises described in subparagraph (b)(i), that is owned by or has been supplied by way of sale to an individual and that is used primarily as a place of residence of the individual, an individual related to the individual or a former spouse or common-law partner of the individual, together within the case of a building described in paragraph (a), any appurtenances to the building, the land subjacent to the building and that part of the land immediately contiguous to the building, that are reasonably necessary for the use and enjoyment of the building, andin the case of a premises described in subparagraph (b)(i), that part of any common areas and other appurtenances to the building and the land subjacent or immediately contiguous to the building that is attributable to the unit and that is reasonably necessary for the use and enjoyment of the unit,a mobile home, together with any appurtenances to the home and, where the home is affixed to land (other than a site in a residential trailer park) for the purpose of its use and enjoyment as a place of residence for individuals, the land subjacent or immediately contiguous to the home that is attributable to the home and is reasonably necessary for that purpose, anda floating home,but does not include a building, or that part of a building, that is a hotel, a motel, an inn, a boarding house, a lodging house or other similar premises, or the land and appurtenances attributable to the building or part, where the building is not described in paragraph (c) and all or substantially all of the leases, licences or similar arrangements, under which residential units in the building or part are supplied, provide, or are expected to provide, for periods of continuous possession or use of less than sixty days;residential condominium unitlogement en copropriétéresidential condominium unit means a residential complex that is, or is intended to be, a bounded space in a building designated or described as a separate unit on a registered condominium or strata lot plan or description, or a similar plan or description registered under the laws of a province, and includes any interest in land pertaining to ownership of the unit;residential trailer parkparc à roulottes résidentielresidential trailer park of a person means the land that is included in a trailer park of the person or, where the person has two or more trailer parks that are immediately contiguous to each other, the land that is included in those contiguous trailer parks, and any buildings, fixtures and other appurtenances to the land that are reasonably necessary forthe use and enjoyment of sites in the trailer parks by individuals residing in or occupying mobile homes, or travel trailers, motor homes or similar vehicles or trailers, situated or to be situated on those sites, orthe purpose of engaging in the business of supplying those sites by way of lease, licence or similar arrangement,but does not include such land and appurtenances or any part of them unless the land encompasses at least two sites and all or substantially all of the sites in the trailer parksare supplied, or are intended to be supplied, under a lease, licence or similar arrangement under which continuous possession or use of a site is provided for a period of at leastone month, in the case of a mobile home or other residential unit, andtwelve months, in the case of a travel trailer, motor home or similar vehicle or trailer that is not a residential unit, andif the sites were occupied by mobile homes, would be suitable for use by individuals as places of residence throughout the year;residential unithabitationresidential unit meansa detached house, semi-detached house, rowhouse unit, condominium unit, mobile home, floating home or apartment,a suite or room in a hotel, a motel, an inn, a boarding house or a lodging house or in a residence for students, seniors, individuals with a disability or other individuals, orany other similar premises,or that part thereof thatis occupied by an individual as a place of residence or lodging,is supplied by way of lease, licence or similar arrangement for the occupancy thereof as a place of residence or lodging for individuals,is vacant, but was last occupied or supplied as a place of residence or lodging for individuals, orhas never been used or occupied for any purpose, but is intended to be used as a place of residence or lodging for individuals;saleventesale, in respect of property, includes any transfer of the ownership of the property and a transfer of the possession of the property under an agreement to transfer ownership of the property;sales tax harmonization agreementaccord d’harmonisation de la taxe de ventesales tax harmonization agreement has the same meaning as in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act;school authorityadministration scolaireschool authority means an organization that operates an elementary or secondary school in which it provides instruction that meets the standards of educational instruction established by the government of the province in which the school is operated;secured creditorcréancier garantisecured creditor meansa particular person who has a security interest in the property of another person, ora person who acts for or on behalf of the particular person with respect to the security interest and includesa trustee appointed under a trust deed relating to a security interest,a receiver or receiver-manager appointed by the particular person or appointed by a court on the application of the particular person,a sequestrator, orany other person performing a function similar to that of a person referred to in any of subparagraphs (i) to (iii);security interestdroit en garantiesecurity interest means any interest in property that secures payment or performance of an obligation, and includes an interest created by or arising out of a debenture, mortgage, hypothec, lien, pledge, charge, deemed or actual trust, assignment or encumbrance of any kind whatever, however or whenever arising, created, deemed to arise or otherwise provided for;segregated fundfonds réservésegregated fund of an insurer means a specified group of properties that is held in respect of insurance policies all or part of the reserves for which vary in amount depending on the fair market value of the properties;selected listed financial institutioninstitution financière désignée particulièreselected listed financial institution means, at any time, a listed financial institution who is at that time a selected listed financial institution under subsection 225.2(1);self-contained domestic establishmentétablissement domestique autonomeself-contained domestic establishment has the meaning assigned by subsection 248(1) of the Income Tax Act;serviceserviceservice means anything other thanproperty,money, andanything that is supplied to an employer by a person who is or agrees to become an employee of the employer in the course of or in relation to the office or employment of that person;short-term accommodationlogement provisoireshort-term accommodation means a residential complex or a residential unit that is supplied to a recipient by way of lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence or lodging, where the period throughout which the individual is given continuous occupancy of the complex or unit is less than one month and, for the purposes of sections 252.1, 252.2 and 252.4,includes any type of overnight shelter (other than shelter on a train, trailer, boat or structure that has means of, or is capable of being readily adapted for, self-propulsion) when supplied as part of a tour package (within the meaning assigned by subsection 163(3)) that also includes food and the services of a guide, anddoes not include a complex or unit when itis supplied to the recipient under a timeshare arrangement, oris included in that part of a tour package that is not the taxable portion of the tour package (within the meaning assigned to those expressions by subsection 163(3));single unit residential compleximmeuble d’habitation à logement uniquesingle unit residential complex means a residential complex that does not contain more than one residential unit, but does not include a residential condominium unit;small supplierpetit fournisseursmall supplier, at any time, means a person who is at that time a small supplier under section 148 or 148.1;specified Crown agentmandataire désignéspecified Crown agent meansa prescribed agent of Her Majesty in right of Canada, oran agent of Her Majesty in right of a provincethat pays tax because of an agreement under section 32 of the Federal-Provincial Fiscal Arrangements Act entered into by the government of the province, orthat is prescribed;specified motor vehiclevéhicule à moteur déterminéspecified motor vehicle meansgoods that are or would, if they were imported, be classified under any of tariff item 8701.20.00, subheading Nos. 8701.30 and 8701.90, heading No. 87.02, tariff item 8703.10.10, subheading Nos. 8703.21 to 8703.90 and 8704.21 to 8704.90, heading 87.05, tariff items 8711.20.00 to 8711.90.00 and 8713.90.00, 8716.10.21, 8716.10.29 and 8716.39.30 to 8716.40.00 and subheading No. 8716.80 of Schedule I to the Customs Tariff, other than racing cars classified under heading No. 87.03 of that Schedule and prescribed motor vehicles, andprescribed motor vehicles;specified tangible personal propertybien meuble corporel désignéspecified tangible personal property means property that is, or is an interest in,a print, an etching, a drawing, a painting, a sculpture or other similar work of art,jewellery,a rare folio, a rare manuscript or a rare book,a stamp,a coin, orprescribed personal property;sponsorpromoteursponsor of a convention means the person who convenes the convention and supplies admissions to it;straddle plantinstallation de traitement complémentairestraddle plant means a natural gas processing plant devoted primarily to the recovery of natural gas liquids or ethane from natural gas that is transported by pipeline to the plant by a common carrier of natural gas;substantial renovationrénovations majeuressubstantial renovation of a residential complex means the renovation or alteration of a building to such an extent that all or substantially all of the building that existed immediately before the renovation or alteration was begun, other than the foundation, external walls, interior supporting walls, floors, roof and staircases, has been removed or replaced where, after completion of the renovation or alteration, the building is, or forms part of, a residential complex;SuperintendentsurintendantSuperintendent means the Superintendent of Financial Institutions appointed pursuant to the Office of the Superintendent of Financial Institutions Act;supplierVersion anglaise seulementsupplier, in respect of a supply, means the person making the supply;supplyfournituresupply means, subject to sections 133 and 134, the provision of property or a service in any manner, including sale, transfer, barter, exchange, licence, rental, lease, gift or disposition;taxtaxetax means tax payable under this Part;taxable supplyfourniture taxabletaxable supply means a supply that is made in the course of a commercial activity;taxation yearannée d’impositiontaxation year of a person meanswhere the person is a taxpayer, within the meaning of that term in the Income Tax Act (other than an unincorporated person exempt because of subsection 149(1) of that Act from tax under Part I of that Act on all or part of the person’s taxable income), the taxation year of the person for the purposes of that Act,where the person is a partnership described in subparagraph 249.1(1)(b)(ii) of that Act, the fiscal period of the person’s business determined under subsection 249.1(1) of that Act, andin any other case, the period that would be the taxation year of the person for the purposes of that Act if the person were a corporation other than a professional corporation (within the meaning assigned by subsection 248(1) of that Act);Tax CourtVersion anglaise seulementTax Court means the Tax Court of Canada;tax fraction[Repealed, 1997, c. 10, s. 150]taxi businessentreprise de taxistaxi business means a business carried on in Canada of transporting passengers by taxi for fares that are regulated under the laws of Canada or a province;tax ratetaux de taxetax rate, for or in relation to a participating province, meansif there is a sales tax harmonization agreement with the government of the participating province relating to the new harmonized value-added tax system, the rate that is prescribed for the participating province,if the participating province is an offshore area referred to in the definition participating province, the rate that is prescribed for the participating province, andin the absence of a rate that is prescribed for the participating province, the rate set opposite the name of the participating province in Schedule VIII;telecommunication serviceservice de télécommunicationtelecommunication service meansthe service of emitting, transmitting or receiving signs, signals, writing, images or sounds or intelligence of any nature by wire, cable, radio, optical or other electromagnetic system, or by any similar technical system, ormaking available for such emission, transmission or reception telecommunications facilities of a person who carries on the business of supplying services referred to in paragraph (a);telecommunications facilityinstallation de télécommunicationtelecommunications facility means any facility, apparatus or other thing (including any wire, cable, radio, optical or other electromagnetic system, or any similar technical system, or any part thereof) that is used or is capable of being used for telecommunications;testamentary trustfiducie testamentairetestamentary trust has the meaning assigned by subsection 248(1) of the Income Tax Act;trailer parkparc à roulottestrailer park of a person means a piece of land that is owned by or leased to the person and that is exclusively composed ofone or more sites each of which is, or is intended to be, supplied by the person by way of lease, licence or similar arrangement to the owner, lessee or person in occupation or possession of a mobile home, or a travel trailer, motor home or similar vehicle or trailer, situated or to be situated on the site, andother land that is reasonably necessary forthe use and enjoyment of the sites by individuals residing in or occupying mobile homes, or travel trailers, motor homes or similar vehicles or trailers, situated or to be situated on those sites, orthe purpose of engaging in the business of supplying the sites by way of lease, licence or similar arrangement;universityuniversitéuniversity means a recognized degree-granting institution or an organization that operates a college affiliated with, or a research body of, such an institution;used tangible personal propertybien meuble corporel d’occasionused tangible personal property means tangible personal property that has been used in Canada;zero-rated supplyfourniture détaxéezero-rated supply means a supply included in Schedule VI.Meaning of CanadaSubject to subsection (3), in this Part, Canada includesthe sea bed and subsoil of the submarine areas adjacent to the coasts of Canada in respect of which the government of Canada or of a province may grant a right, licence or privilege to explore for or exploit any minerals; andthe seas and airspace above the submarine areas referred to in paragraph (a) in respect of any activities carried on in connection with the exploration for or exploitation of minerals.IdemIn or in respect of Division III, Canada has the same meaning as in the Customs Act.Application of provisions to schedulesAny provision of this Part that applies for the purposes of this Part also applies for the purposes of Schedules V to X.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, ss. 10, 204(F);
1994, c. 9, s. 2, c. 13, s. 7;
1996, c. 21, s. 64;
1997, c. 10, ss. 1, 150, 255;
1998, c. 19, s. 281;
1999, c. 17, s. 152, c. 28, s. 159;
2000, c. 12, ss. 111, 113, c. 30, s. 18;
2001, c. 17, s. 236;
2002, c. 22, s. 387;
2004, c. 22, s. 29;
2005, c. 38, s. 104;
2006, c. 4, ss. 2, 136;
2007, c. 18, s. 2, c. 35, s. 183;
2009, c. 32, s. 2;
2010, c. 12, s. 55;
2011, c. 15, s. 11.
Previous VersionCompound interestInterest computed at a prescribed rate and any penalty computed at a rate per year under any provision of this Part shall be compounded daily.IdemWhere, on any day, both penalty computed at a rate per year and interest are required to be compounded, they shall, on that day, be compounded together at a single rate equal to the total of the penalty rate and the interest rate as though both the penalty and interest were interest computed at that single rate.Application of interestWhere an amendment to this Part, or an amendment or an enactment that relates to this Part,applies to a person who did something or to or for whom something was done,applies to property or a service that was supplied or in respect of which something was done,applies to an event or a transaction that occurred,applies to a period all or part of which is, orcomes into force on a particular day that is,before the day the amendment or enactment is assented to or promulgated, for the purposes of applying the provisions of this Part that relate to or that provide for the payment, or the liability for payment, of interest in respect of any amount, the amount shall be determined and interest shall be computed thereon as though the amendment or enactment had been assented to or promulgated before the thing was done, the supply was made, the occurrence of the event or transaction, the beginning of the period or the particular day, as the case may be.ExceptionSubsection (3) does not apply for the purposes of computing any penalties under this Part.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 11.
Negative amountsExcept as specifically otherwise provided, where an amount or a number is required under this Part to be determined or calculated by or in accordance with an algebraic formula, if the amount or number when so determined or calculated would, but for this section, be a negative amount or number, it shall be deemed to be nil.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
Relationships, Associations, Separate Persons and ResidenceArm’s lengthFor the purposes of this Part, related persons shall be deemed not to deal with each other at arm’s length and it is a question of fact whether persons not related to each other were, at any particular time, dealing with each other at arm’s length.Related personsPersons are related to each other for the purposes of this Part if, by reason of subsections 251(2) to (6) of the Income Tax Act, they are related to each other for the purposes of that Act.IdemFor the purposes of this Part, a member of a partnership shall be deemed to be related to the partnership.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
Associated personsA particular corporation is associated with another corporation for the purposes of this Part if, by reason of subsections 256(1) to (6) of the Income Tax Act, the particular corporation is associated with the other corporation for the purposes of that Act.IdemA person other than a corporation is associated with a particular corporation for the purposes of this Part if the particular corporation is controlled by the person or by a group of persons of which the person is a member and each of whom is associated with each of the others.IdemFor the purposes of this Part, a person is associated witha partnership if the total of the shares of the profits of the partnership to which the person and all other persons who are associated with the person are entitled is more than half of the total profits of the partnership, or would be more than half of the total profits of the partnership if it had profits; anda trust if the total of the values of the interests in the trust of the person and all other persons who are associated with the person is more than half of the total value of all interests in the trust.IdemFor the purposes of this Part, a person is associated with another person if each of them is associated with the same third person.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
Closely related corporationFor the purposes of this Part, a particular corporation and another corporation are closely related to each other at any time if at that timenot less than 90% of the value and number of the issued and outstanding shares of the capital stock of the other corporation, having full voting rights under all circumstances, are owned bythe particular corporation,a qualifying subsidiary of the particular corporation,a corporation of which the particular corporation is a qualifying subsidiary,a qualifying subsidiary of a corporation of which the particular corporation is a qualifying subsidiary, orany combination of the corporations or subsidiaries referred to in subparagraphs (i) to (iv),[Repealed, 1993, c. 27, s. 12]the other corporation is a prescribed corporation in relation to the particular corporation.Corporations closely related to the same corporationIf under subsection (1) two corporations are closely related to the same corporation, they are closely related to each other for the purposes of this Part.Investment fundsFor the purposes of this section, an investment fund that is a member of a mutual insurance group is deemed to be a corporation.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 12;
2007, c. 18, s. 3.
Previous VersionMeaning of small supplier divisionIn this section and section 129.1, small supplier division of a public service body, at any time, means a branch or division of the body that, at that time,is a branch or division designated by the Minister as an eligible division for the purposes of this section; andwould be a small supplier under section 148 ifthe branch or division were a person separate from the body and its other branches or divisions,the branch or division were not associated with any other person, andevery supply made by the body through the branch or division were made by the branch or division.Branches of public service bodiesA public service body that is engaged in one or more activities in separate branches or divisions may apply to the Minister, in prescribed form containing prescribed information, to have a branch or division specified in the application designated by the Minister as an eligible division for the purposes of this section.Designation by MinisterWhere the Minister receives an application under subsection (2), the Minister may, by notice in writing, designate a branch or division specified in the application as an eligible division for the purposes of this section, effective on a day specified in the notice, if the Minister is satisfied thatthe branch or division can be separately identified by reference to its location or the nature of the activities engaged in by it;separate records, books of account and accounting systems are maintained in respect of the branch or division; anda revocation under subsection (4) pursuant to a request made by the body in respect of the branch or division has not become effective in the 365-day period ending on that day.Revocation of designationThe Minister may, in writing, revoke a designation under subsection (3) of a branch or division of a public service body where the conditions described in paragraph (3)(a) or (b) are no longer met in respect of the branch or division or the body makes a request in writing to the Minister that the designation be revoked.Notice of revocationWhere, under subsection (4), the Minister revokes a designation of a branch or division of a public service body, the Minister shall send a notice in writing of the revocation to the body and shall specify in the notice the effective date of the revocation.Supply of property on becoming a small supplier divisionFor the purposes of this Part, where a branch or division of a public service body that is a registrant becomes at any time a small supplier division and the body does not, at that time, cease to be a registrant, the body shall be deemedto have made, immediately before that time, a supply of each of its properties, other than capital property or an improvement thereto, that was held immediately before that time for consumption, use or supply in the course of commercial activities of the body and that the body begins, immediately after that time, to hold for consumption, use or supply primarily in the course of activities engaged in by the body through its small supplier divisions; andexcept where the supply is an exempt supply, to have collected, immediately before that time, tax in respect of the supply equal to the total of all input tax credits in respect of the property that the body was entitled to claim at or before that time.Services and rented properties on becoming a small supplier divisionWhere,at any time in a particular reporting period of a public service body that is a registrant, a branch or division of the body becomes a small supplier division,the body does not, at that time, cease to be a registrant, andin or before that period, tax became payable, or was paid without having become payable, by the body and is calculated on consideration, or a part thereof,that is a rent, royalty or similar payment in respect of property and that is reasonably attributable to a period (in this subsection referred to as the “lease period”) after that time, orthat is reasonably attributable to services that are to be rendered after that time,the following rules apply:there shall not be included, in determining the input tax credits in respect of that tax that are claimed by the body in the return under section 238 for that or any subsequent reporting period, any portion of the amount determined by the formulaA × BwhereAis that tax, andBis the extent (expressed as a percentage) to which the property is used by the body during the lease period, or the services were acquired or imported by the body for consumption, use or supply, in the course of activities engaged in by the body through the branch or division, andwhere all or any portion of the amount determined under paragraph (d) was included in determining an input tax credit claimed by the body in a return under section 238 for a reporting period of the body ending before the particular reporting period, that amount or portion thereof shall be added in determining the net tax for the particular reporting period.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 13;
1994, c. 9, s. 3.
Supply by small supplier divisionIf a public service body makes a taxable supply through a branch or division of the body and the consideration or a part of the consideration for the supply becomes due to the body at a time when the branch or division is a small supplier division or is paid to the body at such a time without having become due, the consideration or the part of the consideration, as the case may be, shall not be included in calculating the tax payable in respect of the supply or in determining a threshold amount of the body under section 249 and that supply is, for the purposes of this Part, deemed not to have been made by a registrant, except if the supply isa supply by way of sale of real property;a supply by way of sale of personal property by a municipality that is capital property of the municipality; ora supply by way of sale of designated municipal property of a person designated to be a municipality for the purposes of section 259 that is capital property of the person.Restriction on input tax credits for purchasesIn determining an input tax credit of a public service body, there shall not be included an amount in respect of tax that, at any time after March 27, 1991, became payable, or was paid without having become payable, by the body, to the extent that the taxis in respect of property (other than capital property or improvements thereto) acquired, imported or brought into a participating province by the body for the purpose of consumption, use or supply in the course of activities engaged in by the body through a small supplier division of the body; oris calculated on consideration, or a part thereof, that is reasonably attributable to services that were, before that time, consumed, used or supplied by the body in the course of activities engaged in by the body through a small supplier division of the body or that are, at that time, intended to be so consumed, used or supplied.[Repealed, 1997, c. 10, s. 151]Change in use of non-capital propertyWhereat any time after March 27, 1991, a public service body that is a registrant begins to hold property of the body (other than capital property) for consumption, use or supply primarily in the course of activities engaged in by the body through its small supplier divisions, andimmediately before that time, the body was holding the property for consumption, use or supplyin the course of commercial activities of the body, andotherwise than primarily in the course of activities engaged in by the body through its small supplier divisions,except where subsection 129(6) or 171(3) applies, the body shall be deemed to have made, immediately before that time, a supply of the property and, except where the supply is an exempt supply, to have collected, immediately before that time, tax in respect of the supply equal to the total of all input tax credits in respect of the property that the body was entitled to claim at or before that time.IdemWherea public service body begins, at any time after March 27, 1991, to hold property of the body (other than capital property) for consumption, use or supply primarily in the course of activities engaged in by the body otherwise than through its small supplier divisions,immediately before that time the property was held by the body for consumption, use or supply primarily in the course of activities engaged in by the body through its small supplier divisions, andimmediately after that time the property is held by the body for consumption, use or supply in the course of commercial activities engaged in by the body otherwise than through its small supplier divisions,except where subsection 171(1) applies, for the purpose of determining an input tax credit of the body, it shall be deemed to have received a supply of the property and to have paid, at that time, tax in respect of the supply equal to the lesser ofthe amount, if any, by whichthe total of all amounts each of which is tax that, before that time, was paid or became payable by the body in respect of the last acquisition or importation of the property by the body or that was deemed under subsection 129(6) to have been collected by the body in respect of the propertyexceedsthe total of all input tax credits and rebates that the body was entitled to claim under this Part before that time in respect of that acquisition or importation, andtax calculated on the fair market value of the property at that time.Use of capital propertyFor the purposes of determining an input tax credit in respect of capital property of a public service body and for the purposes of Subdivision d of Division II, an activity engaged in by a public service body shall be deemed not to be a commercial activity of the body to the extent that the activity is engaged in through a small supplier division of the body.Application of change in use rulesSubsections 200(2) and 206(4) and (5) do not apply to a public service body in respect of a reduction in the extent to which property is used in commercial activities of the body where the reduction in use occursbefore March 28, 1991; andas a result of the application of subsection (6) but not as a result of a branch or division of the body becoming a small supplier division.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 13;
1997, c. 10, s. 151;
2007, c. 18, s. 4.
Previous VersionMembers of unincorporated organizationsWhere a particular unincorporated organization is a member of another unincorporated organization, the particular organization and the other organization may apply jointly to the Minister, in prescribed form containing prescribed information, to have the particular organization deemed to be a branch of the other organization and not to be a separate person.Approval by MinisterWhere the Minister receives an application under subsection (1) in respect of a particular organization that is a member of another organization and is satisfied that it is appropriate, for the purposes of this Part, to approve the application, the Minister may, in writing, approve the application and, subject to subsection (3), the particular organization shall, for the purposes of this Part (other than the purposes for which the particular organization is deemed under subsection 129(2) to be a separate person), be deemed to be a branch of the other organization and not to be a separate person.Revocation of approvalWherethe Minister has approved an application made under subsection (1) in respect of a particular organization that is a member of another organization, andeither the particular organization or the other organization requests the Minister in writing to revoke the approval,the Minister may revoke the approval and thereafter the particular organization shall be deemed to be a separate person and not to be a branch of the other organization.Notice of revocationWhere under subsection (3) the Minister revokes an approval, the Minister shall send a notice in writing of the revocation to the organizations affected and shall specify therein the effective date of the revocation.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
Segregated fund a separate personFor the purposes of this Part, a segregated fund of an insurer shall be deemed to be a trust that is a separate person from the insurer and that does not deal at arm’s length with the insurer andthe insurer shall be deemed to be a trustee of that trust;the activities of the segregated fund shall be deemed to be activities of the trust and not activities of the insurer; andwhere, at any time, an amount (other than an amount in respect of tax under this Part) is deducted from the fund,if the amount is in respect of property or a service that the fund is, because of the operation of this Part other than this paragraph, considered to have acquired from the insurer, that supply shall be deemed to be a taxable supply and the amount shall be deemed to be consideration for that supply that becomes due at that time, andif the amount is not in respect of property or a service that the fund is, because of the operation of this Part other than this paragraph, considered to have acquired either from the insurer or another person, the insurer shall be deemed to have made, and the fund shall be deemed to have received, at that time, a taxable supply of a service and the amount shall be deemed to be consideration for the supply that becomes due at that time.ExceptionsParagraph (1)(c) does not apply to an amount deducted from a segregated fund of an insurer ifthe amount is a distribution of income, a payment of a benefit, or the amount of a redemption, in respect of an interest of another person in the fund; orthe amount is a prescribed amount.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
2000, c. 30, s. 19.
Person resident in CanadaFor the purposes of this Part, a person shall be deemed to be resident in Canada at any timein the case of a corporation, if the corporation is incorporated or continued in Canada and not continued elsewhere;in the case of a partnership, an unincorporated society, a club, an association or an organization, or a branch thereof, if the member, or a majority of the members, having management and control thereof is or are resident in Canada at that time;in the case of a labour union, if it is carrying on activities as such in Canada and has a local union or branch in Canada at that time; orin the case of an individual, if the individual is deemed under any of paragraphs 250(1)(b) to (f) of the Income Tax Act to be resident in Canada at that time.Permanent establishment of non-residentFor the purposes of this Part, where a non-resident person has a permanent establishment in Canada, the person shall be deemed to be resident in Canada in respect of, but only in respect of, activities of the person carried on through that establishment.Permanent establishment of residentFor the purposes of this Part, where a person who is resident in Canada has a permanent establishment in a country other than Canada, the person shall be deemed to be a non-resident person in respect of, but only in respect of, activities of the person carried on through that establishment.Supplies between permanent establishmentsFor the purposes of this Part, where a person carries on a business through a permanent establishment of the person in Canada and through another permanent establishment of the person outside Canada,any transfer of personal property or rendering of a service by the establishment in Canada to the establishment outside Canada shall be deemed to be a supply of the property or service; andin respect of that supply, the permanent establishments shall be deemed to be separate persons who deal with each other at arm’s length.Residence of international shipping corporationsWhere under subsection 250(6) of the Income Tax Act a corporation is deemed for the purposes of that Act to be resident in a country other than Canada throughout a taxation year of the corporation and not to be resident in Canada at any time in the year, the corporation shall, for the purposes of this Part but subject to subsection (2), be deemed to be resident in that other country throughout the year and not to be resident in Canada at any time in the year.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 14;
1997, c. 10, s. 2.
Person resident in a provinceFor the purposes of this Part, other than determining the place of residence of an individual in the individual’s capacity as a consumer, a person is deemed to be resident in a province if the person is resident in Canada andin the case of a corporation, the corporation is incorporated or continued under the laws of that province and not continued elsewhere;in the case of a partnership, an unincorporated society, a club, an association or an organization, or a branch thereof, the member, or a majority of the members, having management and control thereof is or are resident in that province;in the case of a labour union, it is carrying on activities as such in that province and has a local union or branch in that province; orin any case, the person has a permanent establishment in that province.Meaning of “permanent establishment”In this section and Schedule IX, permanent establishment of a person meansin the case of an individual, the estate of a deceased individual or a trust that carries on a business (within the meaning assigned by subsection 248(1) of the Income Tax Act), a permanent establishment (as defined for the purposes of Part XXVI of the Income Tax Regulations) of the person;in the case of a corporation that carries on a business (within the meaning assigned by subsection 248(1) of that Act), a permanent establishment (as defined for the purposes of Part IV of those Regulations) of the person;in the case of a particular partnershipa permanent establishment (as defined for the purposes of Part XXVI of those Regulations) of a member that is an individual, the estate of a deceased individual or a trust where the establishment relates to a business (within the meaning assigned by subsection 248(1) of that Act) carried on through the partnership,a permanent establishment (as defined for the purposes of Part IV of those Regulations) of a member that is a corporation where the establishment relates to a business (within the meaning assigned by subsection 248(1) of that Act) carried on by the particular partnership, ora permanent establishment (within the meaning of this subsection) of a member that is a partnership where the establishment relates to a business (within the meaning assigned by subsection 248(1) of that Act) carried on by the particular partnership; andin any other case, a place that would be a permanent establishment (as defined for the purposes of Part IV of those Regulations) of the person if the person were a corporation and its activities were a business for purposes of that Act.Permanent establishment in a provinceA prescribed person, or a person of a prescribed class, is deemed, under prescribed circumstances and for prescribed purposes, to have a permanent establishment in a prescribed province.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1997, c. 10, s. 152;
2009, c. 32, s. 3.
Previous VersionSupplies and Commercial ActivitiesAgreement as supplyFor the purposes of this Part, where an agreement is entered into to provide property or a service,the entering into of the agreement shall be deemed to be a supply of the property or service made at the time the agreement is entered into; andthe provision, if any, of property or a service under the agreement shall be deemed to be part of the supply referred to in paragraph (a) and not a separate supply.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
Transfer of security interestFor the purposes of this Part, where, under an agreement entered into in respect of a debt or obligation, a person transfers property or an interest in property for the purpose of securing payment of the debt or performance of the obligation, the transfer shall be deemed not to be a supply, and where, on payment of the debt or performance of the obligation or the forgiveness of the debt or obligation, the property or interest is retransferred, the retransfer of the property or interest shall be deemed not to be a supply.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
Sponsorship of public sector bodiesFor the purposes of this Part, where a public sector body makesa supply of a service, ora supply by way of licence of the use of a copyright, trade-mark, trade-name or other similar property of the body,to a person who is the sponsor of an activity of the body for use by the person exclusively in publicizing the person’s business, the supply by the body of the service or the use of the property shall be deemed not to be a supply, except where it may reasonably be regarded that the consideration for the supply is primarily for a service of advertising by means of radio or television or in a newspaper, magazine or other publication published periodically or for a prescribed service.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1997, c. 10, s. 3.
Lease etc. of propertyFor the purposes of this Part, a supply, by way of lease, licence or similar arrangement, of the use or right to use real property or tangible personal property shall be deemed to be a supply of real property or tangible personal property, as the case may be.Combined supply of real propertyFor the purposes of this Part, where a supply of real property includes the provision ofreal property that isa residential complex,land, a building or part of a building that forms or is reasonably expected to form part of a residential complex, ora residential trailer park, andother real property that is not part of the property referred to in paragraph (a),the property referred to in paragraph (a) and the property referred to in paragraph (b) shall each be deemed to be a separate property and the provision of the property referred to in paragraph (a) shall be deemed to be a separate supply from the provision of the property referred to in paragraph (b), and neither supply is incidental to the other.[Repealed, 1997, c. 10, s. 153]IdemFor the purposes of this Part, where a builder of an addition to a multiple unit residential complex makes a supply of the complex or an interest in it by way of sale that, but for this subsection, would be a taxable supply and, but for the construction of the addition, would be an exempt supply described in section 5 of Part I of Schedule V, the addition and the remainder of the complex shall each be deemed to be a separate property and the sale of the addition or the interest in it shall be deemed to be a separate supply from the sale of the remainder of the complex or the interest in it, and neither supply is incidental to the other.IdemFor the purposes of this Part, where a person who has increased the area of land included in a residential trailer park of the person makes a supply of the park or an interest in it that, but for this subsection, would be a taxable supply and, but for the increase in the area of land included in the park, would be an exempt supply described in section 5.3 of Part I of Schedule V, the area of land by which the park was increased and the remainder of the park shall each be deemed to be a separate property and the sale of the additional area or the interest therein shall be deemed to be a supply separate from the sale of the remainder of the park or the interest in the park, and neither supply is incidental to the other.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 15;
1997, c. 10, ss. 4, 153.
Lease, etc. of propertyFor the purposes of this Part, where a supply of property is made by way of lease, licence or similar arrangement to a person for consideration that includes a payment that is attributable to a period (in this subsection referred to as the “lease interval”) that is the whole or a part of the period during which possession or use of the property is provided under the arrangement,the supplier is deemed to have made, and the person is deemed to have received, a separate supply of the property for the lease interval;the supply of the property for the lease interval is deemed to be made on the earliest ofthe first day of the lease interval,the day on which the payment that is attributable to the lease interval becomes due, andthe day on which the payment that is attributable to the lease interval is paid;the payment that is attributable to the lease interval is deemed to be consideration payable in respect of the supply of the property for the lease interval; andif, in the absence of paragraph (a), the supply of the property under the arrangement would be deemed to be made in or outside Canada, all of the supplies of the property that are, because of that paragraph, deemed to be made under the arrangement are deemed to be made in or outside Canada, as the case may be.Delivery on exercise of optionFor the purposes of this Part, if a recipient of a supply by way of lease, licence or similar arrangement of tangible personal property exercises an option to purchase the property that is provided for under the arrangement and the recipient begins to have possession of the property under the agreement of purchase and sale of the property at the same time and place as the recipient ceases to have possession of the property as lessee or licensee under the arrangement, that time and place is, for greater certainty, deemed to be the time and place at which the property is delivered or made available to the recipient in respect of the supply by way of sale of the property to the recipient.Ongoing servicesFor the purposes of this Part, where a supply of a service is made to a person for consideration that includes a payment that is attributable to a period (in this subsection referred to as a “billing period”) that is the whole or a part of the period during which the service is or is to be rendered under the agreement for the supply,the supplier is deemed to have made, and the person is deemed to have received, a separate supply of the service for the billing period;the supply of the service for the billing period is deemed to be made on the earliest ofthe first day of the billing period,the day on which the payment that is attributable to the billing period becomes due, andthe day on which the payment that is attributable to the billing period is made;the payment that is attributable to the billing period is deemed to be consideration payable in respect of the supply of the service for the billing period; andif, in the absence of paragraph (a), the supply of the service under the agreement would be deemed to be made in or outside Canada, all of the supplies of the service that are, because of that paragraph, deemed to be made under the agreement are, except in the case of a telecommunication service, deemed to be made in or outside Canada, as the case may be.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1997, c. 10, s. 154;
2000, c. 30, s. 20.
Supply of real property partly outside provinceFor the purposes of determining in which participating province, if any, a taxable supply of real property is made and determining the tax payable, if any, under subsection 165(2) in respect of the supply for the purposes of this Part, where the supply includes the provision of real property situated in a particular province and real property situated in another province or outside Canada, the provision of the part of the real property that is situated in the particular province and the provision of the part of the real property that is situated in the other province or outside Canada, as the case may be, are each deemed to be a separate taxable supply made for separate consideration equal to the portion of the total consideration for all the property that is reasonably attributable to the part.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1997, c. 10, s. 154.
Separate supplies of freight servicesFor the purposes of determining, for the purposes of this Part, the tax payable, if any, under subsection 165(2) in respect of a supply of a freight transportation service (within the meaning of Part VI of Schedule IX) that includes the provision of a service of transporting particular tangible personal property to a destination in a province and other tangible personal property to a destination outside the province and determining in which participating province, if any, the supply is made, the provision of the service of transporting the particular property and the provision of the service of transporting the other property are each deemed to be a separate supply made for separate consideration equal to the portion of the total consideration for the supply that is reasonably attributable to the transportation of the particular property or other property, as the case may be.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1997, c. 10, s. 154.
Definition telecommunications channelIn this section, telecommunications channel means a telecommunications circuit, line, frequency, channel, partial channel or other means of sending or receiving a telecommunication but does not include a satellite channel.Dedicated telecommunications channelFor the purposes of this Part, where a person supplies a telecommunication service of granting to the recipient of the supply sole access to a telecommunications channel for transmitting telecommunications between a place in a particular province and a place in another province,the person is deemed to have made a separate supply of the service in each of those two provinces and in each province, if any, that is between those provinces; andthe consideration for the supply in each province is deemed to be equal to the amount determined by the formula(A/B) × CwhereAis the distance over which the telecommunications would be transmitted in that province if the telecommunications were transmitted solely by means of cable and related telecommunications facilities located in Canada that connected, in a direct line, the transmitters for emitting and receiving the telecommunications,Bis the distance over which the telecommunications would be transmitted in Canada if the telecommunications were transmitted solely by such means, andCis the total consideration paid or payable by the recipient for the sole access to the telecommunications channel.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1997, c. 10, s. 154.
Coverings and containersFor the purposes of this Part, where tangible personal property of a particular class is supplied in a covering or container that is usual for that class of property, the covering or container shall be deemed to form part of the property so supplied.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
Incidental suppliesFor the purposes of this Part, wherea particular property or service is supplied together with any other property or service for a single consideration, andit may reasonably be regarded that the provision of the other property or service is incidental to the provision of the particular property or service,the other property or service shall be deemed to form part of the particular property or service so supplied.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
Financial services in mixed supplyFor the purposes of this Part, whereone or more financial services are supplied together with one or more other services that are not financial services, or with properties that are not capital properties of the supplier, for a single consideration,the financial services are related to the other services or the properties, as the case may be,it is the usual practice of the supplier to supply those or similar services, or those or similar properties and services, together in the ordinary course of the business of the supplier, andthe total of all amounts, each of which would be the consideration for a financial service so supplied if that financial service had been supplied separately, is greater than 50% of the total of all amounts, each of which would be the consideration for a service or property so supplied if that service or property had been supplied separately,the supply of each of the services and properties shall be deemed to be a supply of a financial service.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 16.
Supply of membership with securityFor the purposes of this Part, wherea person makes a supply of a share, bond, debenture or other security (other than a share in a credit union or in a cooperative corporation the main purpose of which is not to provide dining, recreational or sporting facilities) that represents capital stock or debt of a particular organization, andownership of the security by the recipient of the supply is a condition of the recipient’s, or another person’s, obtaining a membership, or a right to acquire a membership, in the particular organization or in another organization that is related to the particular organization,the supply of the security shall be deemed to be a supply of a membership and not a supply of a financial service.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 17.
Use in commercial activitiesFor the purposes of this Part, where substantially all of the consumption or use of property or a service by a person, other than a financial institution, is in the course of the person’s commercial activities, all of the consumption or use of the property or service by the person shall be deemed to be in the course of those activities.Intended use in commercial activitiesFor the purposes of this Part, where substantially all of the consumption or use for which a person, other than a financial institution, acquires or imports property or a service or brings it into a participating province is in the course of the person’s commercial activities, all of the consumption or use for which the person acquired or imported the property or service or brought it into the province, as the case may be, is deemed to be in the course of those activities.Use in other activitiesFor the purposes of this Part, where substantially all of the consumption or use of property or a service by a person, other than a financial institution, is in the course of particular activities of the person that are not commercial activities, all of the consumption or use of the property or service by the person shall be deemed to be in the course of those particular activities.Intended use in other activitiesFor the purposes of this Part, where substantially all of the consumption or use for which a person, other than a financial institution, acquires or imports property or a service or brings it into a participating province is in the course of particular activities of the person that are not commercial activities, all of the consumption or use for which the person acquired or imported the property or service or brought it into the province, as the case may be, is deemed to be in the course of those particular activities.Real property that includes residential complexFor the purposes of subsections (1) to (4), where real property includes a residential complex and another part that is not part of the residential complex,the residential complex and the other part shall each be deemed to be a separate property; andwhere property or a service is acquired, imported or brought into a participating province for consumption or use in relation to the real property, subsections (1) to (4) apply to the property or service only to the extent it is acquired, imported or brought into the province, as the case may be, for consumption or use in relation to the part that is not part of the residential complex.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 18;
1997, c. 10, s. 155.
Meaning of endeavourIn this section, endeavour of a person meansa business of the person;an adventure or concern in the nature of trade of the person; orthe making of a supply by the person of real property of the person, including anything done by the person in the course of or in connection with the making of the supply.Meaning of considerationIn subsections (1.2), (2) and (3), consideration does not include nominal consideration.Grants and subsidiesWhere a registrant receives an amount that is not consideration for a supply and is a grant, subsidy, forgivable loan or other form of assistance provided by a person who isa government, a municipality or a band (within the meaning assigned by section 2 of the Indian Act),a corporation that is controlled by a person referred to in paragraph (a) and one of the main purposes of which is to provide such assistance, ora trust, board, commission or other body that is established by a person referred to in paragraph (a) or (b) and one of the main purposes of which is to provide such assistance,and the assistance can reasonably be considered to be provided for the purpose of funding an activity of the registrant that involves the making of taxable supplies for no consideration, the amount is, for the purposes of this section, deemed to be consideration for those supplies.Acquisition for purpose of making suppliesWhere a person acquires or imports property or a service or brings it into a participating province for consumption or use in the course of an endeavour of the person, the person shall, for the purposes of this Part, be deemed to have acquired or imported the property or service or brought it into the province, as the case may be,for consumption or use in the course of commercial activities of the person, to the extent that the property or service is acquired, imported or brought into the province by the person for the purpose of making taxable supplies for consideration in the course of that endeavour; andfor consumption or use otherwise than in the course of commercial activities of the person, to the extent that the property or service is acquired, imported or brought into the province by the personfor the purpose of making supplies in the course of that endeavour that are not taxable supplies made for consideration, orfor a purpose other than the making of supplies in the course of that endeavour.Use for purpose of making suppliesWhere a person consumes or uses property or a service in the course of an endeavour of the person, that consumption or use shall, for the purposes of this Part, be deemed to bein the course of commercial activities of the person, to the extent that the consumption or use is for the purpose of making taxable supplies for consideration in the course of that endeavour; andotherwise than in the course of commercial activities of the person, to the extent that the consumption or use isfor the purpose of making supplies in the course of that endeavour that are not taxable supplies made for consideration, orfor a purpose other than the making of supplies in the course of that endeavour.Free suppliesWherea supplier makes a taxable supply (in this subsection referred to as a “free supply”) of property or a service for no consideration or nominal consideration in the course of a particular endeavour of the supplier, andit can reasonably be regarded that among the purposes (in this subsection referred to as the “specified purposes”) for which the free supply is made is the purpose of facilitating, furthering or promotingthe acquisition, consumption or use of other property or services by any other person, oran endeavour of any person,the following rules apply:to the extent that the supplier acquired or imported a particular property or service or brought it into a participating province for the purpose of making the free supply of that property or service or for consumption or use in the course of making the free supply, the supplier shall be deemed, for the purposes of subsection (2), to have acquired or imported the particular property or service or brought it into the province, as the case may be,for use in the course of the particular endeavour, andfor the specified purposes and not for the purpose of making the free supply, andto the extent that the supplier consumed or used a particular property or service for the purpose of making the free supply, the supplier shall be deemed, for the purposes of subsection (3), to have consumed or used the particular property or service for the specified purposes and not for the purpose of making the free supply.Method of determining extent of use, etc.Subject to section 141.02, the methods used by a person in a fiscal year to determinethe extent to which properties or services are acquired, imported or brought into a participating province by the person for the purpose of making taxable supplies for consideration or for other purposes, andthe extent to which the consumption or use of properties or services is for the purpose of making taxable supplies for consideration or for other purposes,shall be fair and reasonable and shall be used consistently by the person throughout the year.Application to other provisionsWherea particular provision of this Part, other than subsections (2) to (4), deems certain circumstances or facts to exist, andthat deeming is dependent, in whole or in part, on the particular circumstance that property or a service is or was consumed or used, or acquired, imported or brought into a participating province for consumption or use, to a certain extent in the course of, or otherwise than in the course of, commercial activities or other activities,that certain extent shall be determined under subsection (2) or (3), as the case requires, for the purpose of determining whether the particular circumstance exists, but where it is so determined that the particular circumstance exists and all other circumstances necessary for the particular provision to apply exist, the deeming by the particular provision shall apply notwithstanding subsections (2) and (3).IdemWhere a provision of this Part deems the consideration for a supply not to be consideration for the supply, a supply to be made for no consideration or a supply not to have been made by a person, that deeming shall not apply for the purposes of any of subsections (1) to (4).
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 9, s. 4;
1997, c. 10, ss. 5, 156, 255;
2010, c. 12, s. 56.
Previous VersionDefinitionsThe definitions in this subsection apply in this section.adjusted tax credit amountmontant de crédit de taxe rajustéadjusted tax credit amount means the amount determined, for a fiscal year of a person, by the formulaA × 365/BwhereAis the tax credit amount of the person for the fiscal year; andBis the number of days in the fiscal year.adjusted total tax amountmontant total de taxe rajustéadjusted total tax amount means the amount determined, for a fiscal year of a person, by the formulaA × 365/BwhereAis the total tax amount of the person for the fiscal year; andBis the number of days in the fiscal year.business inputintrant d’entreprisebusiness input means an excluded input, an exclusive input or a residual input.direct attribution methodméthode d’attribution directedirect attribution method means a method, conforming to criteria, rules, terms and conditions specified by the Minister, of determining in the most direct manner the operative extent and the procurative extent of property or a service.direct inputintrant directdirect input means property or a service, other thanan excluded input;an exclusive input; ora non-attributable input.excluded inputintrant excluexcluded input of a person means property that is for use by the person as capital property;property or a service that is acquired, imported or brought into a participating province by the person for use as an improvement to property described in paragraph (a); ora prescribed property or service.exclusive inputintrant exclusifexclusive input of a person means property or a service (other than an excluded input) that is acquired, imported or brought into a participating province by the person for consumption or use directly and exclusively for the purpose of making taxable supplies for consideration or directly and exclusively for purposes other than making taxable supplies for consideration.non-attributable inputintrant non attribuablenon-attributable input of a person means property or a service that isnot an excluded input or an exclusive input of the person;acquired, imported or brought into a participating province by the person; andnot attributable to the making of any particular supply by the person.operative extentmesure d’utilisationoperative extent of property or a service means, as the case may be, the extent to which the consumption or use of the property or service is for the purpose of making taxable supplies for consideration or the extent to which the consumption or use of the property or service is for purposes other than making taxable supplies for consideration.procurative extentmesure d’acquisitionprocurative extent of property or a service means, as the case may be, the extent to which the property or service is acquired, imported or brought into a participating province for the purpose of making taxable supplies for consideration or the extent to which the property or service is acquired, imported or brought into a participating province for purposes other than making taxable supplies for consideration.qualifying institutioninstitution admissiblequalifying institution for a particular fiscal year means a person thatis a financial institution of a prescribed class throughout the particular fiscal year of the person; andhas two fiscal years immediately preceding the particular fiscal year and, for each of those two fiscal years,the adjusted tax credit amount of the person equals or exceeds the prescribed amount for that prescribed class for the particular fiscal year, andthe tax credit rate of the person equals or exceeds the prescribed percentage for that prescribed class for the particular fiscal year.requested informationrenseignement demandérequested information means any information, additional information or document in respect of an application made by a person under subsection (18) that the Minister requests in writing from the person.residual inputintrant résiduelresidual input means a direct input or a non-attributable input.residual input tax amountmontant de taxe pour intrant résiduelresidual input tax amount of a person for a fiscal year meansif the person is a selected listed financial institution at any time in the fiscal year, an amount of tax under any of subsection 165(1) and sections 212, 218 and 218.01 in respect of a supply or importation of a residual input that became payable by the person during the fiscal year without having been paid before the fiscal year or was paid by the person during the fiscal year without having become payable; andin any other case, an amount of tax in respect of a supply, importation or bringing into a participating province of a residual input that became payable by the person during the fiscal year without having been paid before the fiscal year or was paid by the person during the fiscal year without having become payable.specified methodméthode déterminéespecified method means a method, conforming to criteria, rules, terms and conditions specified by the Minister, of determining the operative extent and the procurative extent of property or a service.tax credit amountmontant de crédit de taxetax credit amount of a person for a fiscal year of the person means if the person has made an election under subsection (9) in respect of the fiscal year, the total of all amounts each of which is an input tax credit for the fiscal year in respect of a residual input tax amount of the person for the fiscal year that the person would, in the absence of that subsection, be entitled to claim under this Part;if the person is a qualifying institution for the fiscal year, has not made an election under subsection (7) or (27) in respect of the fiscal year and has not received an authorization from the Minister to use for the fiscal year the particular methods set out in an application made under subsection (18), the total of all amounts each of which is an input tax credit for the fiscal year in respect of a residual input tax amount of the person for the fiscal year that the person would, if the person were not a qualifying institution for the fiscal year and did not make an election under subsection (9) in respect of the fiscal year, be entitled to claim under this Part; andin any other case, the total of all amounts each of which is an input tax credit for the fiscal year in respect of a residual input tax amount of the person for the fiscal year that the person is entitled to claim under this Part.tax credit ratetaux de crédit de taxetax credit rate of a person for a fiscal year of the person means the quotient, expressed as a percentage, determined by dividing the tax credit amount of the person for the fiscal year by the total tax amount of the person for the fiscal year.total tax amountmontant total de taxetotal tax amount of a person for a fiscal year of the person means the total of all amounts each of which is a residual input tax amount of the person for the fiscal year.Meaning of considerationIn this section, consideration does not include nominal consideration.Financial institution throughout a yearFor the purposes of this section, a person is a financial institution of a prescribed class throughout a particular fiscal year of the person if the person is a financial institution of that class at any time in the particular fiscal year.Mergers and amalgamationsIf two or more corporations (each of which is referred to in this subsection as a “predecessor”) are merged or amalgamated to form one corporation (in this subsection referred to as the “new corporation”), otherwise than as the result of the acquisition of property of one corporation by another corporation pursuant to the purchase of the property by the other corporation or as the result of the distribution of the property to the other corporation on the winding-up of the corporation, despite section 271 and for the purposes of determining the tax credit amount and the tax credit rate of the new corporation for a fiscal year of the new corporation, the following rules apply:the new corporation is deemed to have had two fiscal years, each of 365 days, immediately preceding the first fiscal year of the new corporation;the tax credit amount of the new corporation for the fiscal year of the new corporation (in this subsection referred to as the “prior year of the new corporation”) immediately preceding the first fiscal year of the new corporation is deemed to be equal to the total of all amounts each of which is the adjusted tax credit amount of a predecessor for the last fiscal year, if any, of the predecessor (in this subsection referred to as the “prior year of the predecessor”) ending before the time of the merger or amalgamation otherwise than as a result of the merger or amalgamation;the tax credit amount of the new corporation for the fiscal year of the new corporation (in this subsection referred to as the “second prior year of the new corporation”) immediately preceding the prior year of the new corporation is deemed to be equal to the total of all amounts each of which is the adjusted tax credit amount of a predecessor for the fiscal year, if any, of the predecessor (in this subsection referred to as the “second prior year of the predecessor”) immediately preceding the prior year of the predecessor;the total tax amount of the new corporation for the prior year of the new corporation is deemed to be the total of all amounts, each of which is the adjusted total tax amount of a predecessor for the prior year of the predecessor, if any; andthe total tax amount of the new corporation for the second prior year of the new corporation is deemed to be the total of all amounts, each of which is the adjusted total tax amount of a predecessor for the second prior year of the predecessor, if any.Winding-upIf at any time a particular corporation is wound up and not less than 90% of the issued shares of each class of the capital stock of the particular corporation were, immediately before that time, owned by another corporation, despite section 272 and for the purposes of determining the tax credit amount and the tax credit rate of the other corporation for a fiscal year of the other corporation, the following rules apply:the tax credit amount of the other corporation for the fiscal year of the other corporation (in this subsection referred to as the “specified year of the other corporation”) that includes the day on which the particular corporation is wound up is deemed to be equal to the total ofthe amount that would, if this subsection did not apply to the winding-up of the particular corporation, be the adjusted tax credit amount of the other corporation for the specified year of the other corporation, andthe amount that is the adjusted tax credit amount of the particular corporation for the last fiscal year, if any, of the particular corporation (in this subsection referred to as the “prior year of the particular corporation”) ending before the day on which the particular corporation is wound up;the tax credit amount of the other corporation for the fiscal year, if any, of the other corporation (in this subsection referred to as the “prior year of the other corporation”) immediately preceding the specified year of the other corporation is deemed to be equal to the total ofthe amount that would, if this subsection did not apply to the winding-up of the particular corporation, be the adjusted tax credit amount of the other corporation for the prior year of the other corporation, andthe amount that is the adjusted tax credit amount of the particular corporation for the fiscal year, if any, of the particular corporation (in this subsection referred to as the “second prior year of the particular corporation”) immediately preceding the prior year of the particular corporation;the total tax amount of the other corporation for the specified year of the other corporation is deemed to be the total ofthe amount that would, if this subsection did not apply to the winding-up of the particular corporation, be the adjusted total tax amount of the other corporation for the specified year of the other corporation, andthe amount that is the adjusted total tax amount of the particular corporation for the prior year of the particular corporation, if any; andthe total tax amount of the other corporation for the prior year of the other corporation, if any, is deemed to be the total ofthe amount that would, if this subsection did not apply to the winding-up of the particular corporation, be the adjusted total tax amount of the other corporation for the prior year of the other corporation, andthe amount that is the adjusted total tax amount of the particular corporation for the second prior year of the particular corporation, if any.Allocation of exclusive inputsFor the purposes of this Part, the following rules apply in respect of any exclusive input of a financial institution:if the exclusive input is acquired, imported or brought into a participating province for consumption or use directly and exclusively for the purpose of making taxable supplies for consideration, the financial institution is deemed to have acquired, imported or brought into the participating province the exclusive input for consumption or use exclusively in the course of commercial activities of the financial institution; andif the exclusive input is acquired, imported or brought into a participating province for consumption or use directly and exclusively for purposes other than making taxable supplies for consideration, the financial institution is deemed to have acquired, imported or brought into the participating province the exclusive input for consumption or use exclusively otherwise than in the course of commercial activities of the financial institution.Residual inputs — election for transitional yearIf a person is a qualifying institution for the first fiscal year of the person that begins after March 2007, the Minister has assessed the net tax of the person for any reporting period included in any of the four fiscal years immediately preceding that first fiscal year, the notice of assessment, subsequent assessment or reassessment in respect of the reporting period does not reflect any inappropriateness in respect of the methods used by the person for the purpose of determining input tax credits in respect of residual inputs of the person and those methods would be fair and reasonable if used in the same manner by the person in that first fiscal year for the purposes of determining the operative extent and the procurative extent of all residual inputs of the person, the person may elect to use those methods in that same manner for that first fiscal year to determine, for the purposes of this Part, the operative extent and the procurative extent of all residual inputs of the person.Residual inputs — prescribed extent of useFor the purposes of this Part, if a financial institution is a qualifying institution for a fiscal year of the financial institution and has not made an election under subsection (7) for the fiscal year, the following rules apply for the fiscal year in respect of each residual input of the financial institution:the extent to which the consumption or use of the residual input is for the purpose of making taxable supplies for consideration is deemed to be equal to the prescribed percentage for the prescribed class of the financial institution;the extent to which the consumption or use of the residual input is for purposes other than making taxable supplies for consideration is deemed to be equal to the difference between 100% and the prescribed percentage for the prescribed class of the financial institution;the extent to which the residual input is acquired, imported or brought into a participating province by the qualifying institution for the purpose of making taxable supplies for consideration is deemed to be equal to the prescribed percentage for the prescribed class of the financial institution;the extent to which the residual input is acquired, imported or brought into a participating province by the qualifying institution for purposes other than making taxable supplies for consideration is deemed to be equal to the difference between 100% and the prescribed percentage for the prescribed class of the financial institution; andfor the purpose of determining an input tax credit in respect of the residual input, the description of B in the formula in subsection 169(1) is deemed to be equal to the prescribed percentage for the prescribed class of the financial institution.Residual inputs — elected extent of useFor the purposes of this Part, if a person is a financial institution (other than a qualifying institution) of a prescribed class throughout a particular fiscal year of the person and the tax credit rate of the person for each of the two fiscal years immediately preceding the particular fiscal year equals or exceeds the prescribed percentage for the prescribed class of financial institutions of the person for the particular fiscal year, the person may elect to have the following rules apply for the particular fiscal year in respect of each residual input of the person:the extent to which the consumption or use of the residual input is for the purpose of making taxable supplies for consideration is deemed to be equal to the prescribed percentage for the prescribed class;the extent to which the consumption or use of the residual input is for purposes other than making taxable supplies for consideration is deemed to be equal to the difference between 100% and the prescribed percentage for the prescribed class;the extent to which the residual input is acquired, imported or brought into a participating province by the person for the purpose of making taxable supplies for consideration is deemed to be equal to the prescribed percentage for the prescribed class;the extent to which the residual input is acquired, imported or brought into a participating province by the person for purposes other than making taxable supplies for consideration is deemed to be equal to the difference between 100% and the prescribed percentage for the prescribed class; andfor the purpose of determining an input tax credit in respect of the residual input, the description of B in the formula in subsection 169(1) is deemed to be equal to the prescribed percentage for the prescribed class.Non-attributable inputs — specified methodFor the purposes of this Part, if a financial institution (other than a qualifying institution) has not made an election under subsection (9) in respect of a fiscal year of the financial institution, the financial institution shall use a specified method to determine for the fiscal year the operative extent and the procurative extent of each non-attributable input of the financial institution.Non-attributable inputs — exceptionFor the purposes of this Part, despite subsection (10), if a financial institution (other than a qualifying institution) has not made an election under subsection (9) in respect of a fiscal year of the financial institution and no specified method applies during the fiscal year to a particular non-attributable input of the financial institution, the financial institution shall use another attribution method to determine for the fiscal year the operative extent and the procurative extent of the particular non-attributable input.Direct inputs — direct attribution methodFor the purposes of this Part, if a financial institution (other than a qualifying institution) has not made an election under subsection (9) in respect of a fiscal year of the financial institution, the financial institution shall use a direct attribution method to determine for the fiscal year the operative extent and the procurative extent of each direct input of the financial institution.Direct inputs — exceptionFor the purposes of this Part, despite subsection (12), if a financial institution (other than a qualifying institution) has not made an election under subsection (9) in respect of a fiscal year of the financial institution and no direct attribution method applies during the fiscal year to a particular direct input of the financial institution, the financial institution shall use another attribution method to determine in the most direct manner for the fiscal year the operative extent and the procurative extent of the particular direct input.Excluded inputs — specified methodFor the purposes of this Part, a financial institution shall use a specified method to determine for a fiscal year of the financial institution the operative extent and the procurative extent of each excluded input of the financial institution.Excluded inputs — exceptionFor the purposes of this Part, despite subsection (14), if no specified method applies during a fiscal year of a financial institution to a particular excluded input of the financial institution, the financial institution shall use another attribution method to determine for the fiscal year the operative extent and the procurative extent of the particular excluded input.Attribution method — conditionsAny method that a financial institution is required in accordance with any of subsections (10) to (15) to use in respect of a fiscal year of the financial institution shall befair and reasonable;used consistently by the financial institution throughout the fiscal year; andsubject to subsection (17), determined by the financial institution no later than the day on or before which the financial institution is required to file a return under Division V with the Minister for the first reporting period in the fiscal year.Alteration or substitution of methodAny method used by a financial institution under any of subsections (10) to (15) in respect of a fiscal year of the financial institution shall not, after the day on or before which the financial institution is required to file a return under Division V with the Minister for the first reporting period in the fiscal year, be altered or be substituted with another method by the financial institution for the fiscal year without the written consent of the Minister.Application for pre-approved methodA person that is, or is reasonably expected to be, a qualifying institution for a fiscal year may apply to the Minister to use particular methods to determine for the fiscal year the operative extent and the procurative extent of each business input of the person.Form and manner of applicationAn application made by a person under subsection (18) shallbe made in prescribed form containing prescribed information, including the particular method to be used in respect of each direct input, excluded input, exclusive input and non-attributable input of the person; andbe filed by the person with the Minister in prescribed manner on or beforethe day that is 180 days before the first day of the fiscal year to which the application applies, orany later day that the Minister may allow on application by the person.AuthorizationOn receipt of an application made under subsection (18), the Minister shallconsider the application and authorize or deny the use of the particular methods; andnotify the person in writing of the decision on or beforethe later ofthe day that is 180 days after that receipt, andthe day that is 180 days before the first day of the fiscal year to which the application applies, orany later day that the Minister may specify, if the day is set out in a written application filed by the person with the Minister.Effect of authorizationFor the purposes of this Part, if the Minister under subsection (20) authorizes the use of particular methods for a fiscal year of the person,the particular methods shall be used consistently, and as indicated in the application, by the person throughout the fiscal year to determine the operative extent and the procurative extent of each business input of the person; andsubsections (6) to (15) and (27) do not apply, for the fiscal year, in respect of any business input of the person.Reasons for denialIf the Minister denies under subsection (20) the use of the particular methods specified in an application made under subsection (18) and the person has, in respect of the application, complied with the requirements set out in subsection (19) and provided to the Minister all requested information within any reasonable time set out in the written notice requesting the information, the Minister shall notify the person in writing of the reasons for not authorizing the use of the particular methods on or before the particular day that is the later ofthe day that is 60 days after the day the person last provided any requested information to the Minister; andthe day on or before which the notification of the decision is required to be given to the person under subsection (20).RevocationAn authorization granted under subsection (20) to a person in respect of a fiscal year of the person ceases to have effect on the first day of the fiscal year and, for the purposes of this Part, is deemed never to have been granted, ifthe Minister revokes the authorization and sends a notice of revocation to the person on or before the day that is 60 days before the day that is the first day of the fiscal year;the person files in prescribed manner with the Minister a notice of revocation in prescribed form containing prescribed information on or before the day that is 60 days before the first day of the fiscal year; orthe person is not a qualifying institution for the fiscal year.Application to be designated a qualifying institutionA person may apply to the Minister, in prescribed form containing prescribed information, to be designated as a qualifying institution for a particular fiscal year of the person ifthe person is, or is reasonably expected to be, a financial institution of a prescribed class throughout the particular fiscal year; andit is the case thatthe person has two fiscal years immediately preceding the particular fiscal year and, for each of those two fiscal years, the adjusted tax credit amount of the person equals or exceeds, or is reasonably expected to equal or exceed, the prescribed amount for that class for the particular fiscal year, oran authorization under subsection (20) for the particular fiscal year has ceased to have effect only because of the application of paragraph (23)(c).Effect of approvalOn receipt of the application made under subsection (24) in respect of a fiscal year of a person, the Minister shall, with all due dispatch, consider the application and notify the person in writing of the decision and, if the Minister makes the designation, the person is deemed for the purposes of subsection (18) and paragraph (23)(c) to be a qualifying institution for the fiscal year.Revocation of designation as a qualifying institutionA designation made under subsection (25) in respect of a fiscal year of a person ceases to have effect on the first day of the fiscal year and is deemed, for the purposes of this Part, to have never been granted if, on or before the day that is 60 days before the first day of the fiscal yearthe Minister revokes the designation and sends a notice of revocation to the person; orthe person files in prescribed manner with the Minister a notice of revocation of the designation in prescribed form containing prescribed information.Qualifying institution’s own methodsDespite subsections (6), (8), (14) and (15), a qualifying institution for a fiscal year may elect to use particular methods for the fiscal year to determine, for the purposes of this Part, the operative extent and the procurative extent of every business input of the qualifying institution, ifthe particular methods were specified in an application filed under subsection (18) by the qualifying institution for the fiscal year thatcomplies with the requirements set out in subsection (19), andis the last such application filed by the qualifying institution for the fiscal year;the use of the particular methods was not authorized by the Minister under paragraph (20)(a);the qualifying institution has provided all requested information within the time set out in the written notice requesting the information;the Minister has not complied with the notification requirements set out in paragraph (20)(b) and subsection (22) in respect of the application; andif the Minister has provided modifications in writing to the particular methods on or before the particular day described in subsection (22), the particular methods with those modifications (in this section referred to as the “modified methods”) are not fair and reasonable for the purpose of determining the operative extent and the procurative extent of the business inputs of the qualifying institution for the fiscal year.Elected method — conditionsIf a qualifying institution makes an election under subsection (27), the particular methods shall befair and reasonable for the purpose of determining the operative extent and the procurative extent of the business inputs of the qualifying institution for the fiscal year; andused consistently, and as indicated in the application referred to in paragraph (27)(a), by the qualifying institution throughout the fiscal year.Making of electionAn election under subsection (7), (9) or (27) in respect of a fiscal year of a person shall bemade in prescribed form containing prescribed information; andfiled by the person with the Minister in prescribed manner on or before the day that isthe day on or before which a return under Division V for the first reporting period of the fiscal year is required to be filed, orany later day that the Minister may allow on application by the person.Revocation of electionAn election under subsection (7), (9) or (27) in respect of a fiscal year of a person ceases to have effect on the first day of the fiscal year and is deemed, for the purposes of this Part, never to have been made ifa notice of revocation of the election in prescribed form containing prescribed information is filed in prescribed manner with the Minister on or before the day on or before which the return under Division V is required to be filed for the first reporting period of the fiscal year;in the case of an election under subsection (7) to use methods for the fiscal year to determine, for the purposes of this Part, the operative extent and the procurative extent of all residual inputs of the person,the person is not a qualifying institution for the fiscal year, orthe methods arenot fair and reasonable for the purpose of determining the operative extent and the procurative extent of those residual inputs, ornot used consistently by the financial institution throughout the fiscal year;in the case of an election made under subsection (9),the person is not a financial institution of a prescribed class throughout the fiscal year, orthe tax credit rate of the person for each of the two fiscal years immediately preceding the fiscal year does not equal or exceed the prescribed percentage for the prescribed class of financial institutions of the person for the fiscal year; orin the case of an election made under subsection (27),any of the requirements to make the election that are set out in that subsection is not met, orthe particular methods referred to in that subsection arenot fair and reasonable for the purpose of determining the operative extent and the procurative extent of the business inputs of the qualifying institution for the fiscal year, ornot used consistently, or as indicated in the application referred to in paragraph (27)(a), by the financial institution throughout the fiscal year.Burden of proofIf a financial institution appeals an assessment under this Part for a reporting period in a fiscal year of the financial institution in respect of an issue relating to the determination, under any of subsections (7), (10) to (15), (21) and (27), of the operative extent or the procurative extent of a business input, the financial institution must establish on a balance of probabilities in any court proceeding relating to the assessment thatin the case of the determination, under subsection (7), of the operative extent or the procurative extent of the business input, the methods used by the financial institution to determine the operative extent and the procurative extent of all residual inputs of the financial institution for the fiscal year werefair and reasonable, andused consistently by the financial institution throughout the fiscal year;in the case of the determination, under subsection (10) or (14), of the operative extent or the procurative extent of the business input, the financial institution used a specified method consistently throughout the fiscal year to determine that extent;in the case of the determination, under subsection (11) or (15), of the operative extent or the procurative extent of the business input, no specified method applied to the business input and the other attribution method used by the financial institution to determine that extent was fair and reasonable and used consistently by the financial institution throughout the fiscal year;in the case of the determination, under subsection (12), of the operative extent or the procurative extent of the business input, the financial institution used a direct attribution method consistently throughout the fiscal year to determine that extent;in the case of the determination, under subsection (13), of the operative extent or the procurative extent of the business input, no direct attribution method applied to the business input and the other attribution method used by the financial institution to determine that extent was fair and reasonable and used consistently by the financial institution throughout the fiscal year; andin the case of the determination, under subsection (21), of the operative extent or the procurative extent of the business input, the particular methods referred to in that subsection were used consistently, and as indicated in the application referred to in that subsection, throughout the fiscal year.in the case of the determination, under subsection (27), of the operative extent or the procurative extent of the business input,the methods specified by the financial institution in the application referred to in that subsection werefair and reasonable, andused consistently, and as indicated in the application referred to in paragraph (27)(a), by the financial institution throughout the fiscal year, andif the Minister has provided modifications to those methods as described in paragraph (27)(e), the modified methods are not fair and reasonable for the purpose of determining the operative extent and the procurative extent of the business inputs of the financial institution for the fiscal year.Ministerial directionIf a financial institution is required to use a method (in this subsection referred to as the “previous method”) in accordance with any of subsections (10) to (15) in respect of a fiscal year of the financial institution, the Minister may at any time, by notice in writing, direct the financial institution to use, for the purposes of determining for the fiscal year, and any subsequent fiscal year, the operative extent and the procurative extent of each business input referred to in that subsection, another method that is fair and reasonable and, if the Minister so directs, the other method, and not the previous method, shall apply for those purposes.Method directed by the Minister — appealsIf under subsection (32) the Minister directs a financial institution to use a method in respect of a business input for a fiscal year, the Minister assesses the net tax of the financial institution for a reporting period included in the fiscal year and the financial institution appeals the assessment under this Part in respect of an issue relating to the application of that subsection,the Minister shall establish on a balance of probabilities that the method is fair and reasonable; andif the final determination of the courts is that the method is not fair and reasonable, the Minister shall not direct the financial institution under subsection (32) to use another method for the fiscal year in respect of the business input.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2010, c. 12, s. 57.
Disposition of personal propertyFor the purposes of this Part,where a person makes a supply (other than an exempt supply) of personal property thatwas last acquired or imported by the person, or was brought into a participating province by the person after it was last acquired or imported by the person, for consumption or use in the course of commercial activities of the person or was consumed or used by the person in the course of a commercial activity of the person after it was last acquired or imported by the person, orwas manufactured or produced by the person in the course of a commercial activity of the person or for consumption or use in the course of a commercial activity of the person, or was manufactured or produced by the person and consumed or used in the course of a commercial activity of the person, and was not deemed under this Part to have been acquired by the person,the person shall be deemed to have made the supply in the course of the commercial activity; andwhere a person makes a supply (other than a supply made by way of lease, licence or similar arrangement in the course of a business of the person) of personal property thatwas last acquired or imported by the person exclusively for consumption or use in the course of activities of the person that are not commercial activities, was not brought into a participating province for consumption or use in the course of commercial activities of the person after it was last acquired or imported by the person and was not consumed or used by the person in the course of commercial activities of the person after it was last acquired or imported by the person, orwas manufactured or produced by the person in the course of activities of the person that are not commercial activities exclusively for consumption or use in the course of activities of the person that are not commercial activities, was not brought into a participating province for consumption or use in the course of commercial activities of the person and was not consumed or used in the course of a commercial activity of the person and was not deemed under this Part to have been acquired by the person,the person shall be deemed to have made the supply otherwise than in the course of commercial activities.Disposition of inventory, etc.For the purposes of this Part,where a person makes a particular supply by way of sale of personal property or a service that was acquired, imported, brought into a participating province, manufactured or produced by the person exclusively for the purpose of making a supply of that property or service by way of sale in the course of a business of the person or in the course of an adventure or concern of the person in the nature of trade, except wherethe particular supply is an exempt supply,paragraph (b) applies in respect of the particular supply, orthe person is an individual or a partnership, all of the members of which are individuals, who carries on the business or engages in the adventure or concern without a reasonable expectation of profit,the person shall be deemed to have made the particular supply in the course of commercial activities of the person; andwhere a person makes a supply by way of sale of personal property or a service that was acquired, imported, manufactured or produced by the person exclusively for the purpose of making an exempt supply of the property or service by way of sale, the person shall be deemed to have made the supply otherwise than in the course of commercial activities.Acquisition, etc., of activitiesFor the purposes of this Part,to the extent that a person does anything (other than make a supply) in connection with the acquisition, establishment, disposition or termination of a commercial activity of the person, the person shall be deemed to have done that thing in the course of commercial activities of the person; andto the extent that a person does anything (other than make a supply) in connection with the acquisition, establishment, disposition or termination of an activity of the person that is not a commercial activity, the person shall be deemed to have done that thing otherwise than in the course of commercial activities.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 18;
1997, c. 10, s. 157.
Sale of personal property of a municipalityDespite section 141.1, for the purposes of this Part, a supply (other than an exempt supply) made by way of sale of personal property of a municipality is deemed to have been made in the course of its commercial activities.Sale of personal property of a designated municipalityDespite section 141.1, for the purposes of this Part, a supply (other than an exempt supply) made by way of sale of personal property of a person designated to be a municipality for the purposes of section 259 is deemed to have been made in the course of its commercial activities if the property is designated municipal property of the person.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2004, c. 22, s. 30.
General rule — in CanadaFor the purposes of this Part, subject to sections 143, 144 and 179, a supply shall be deemed to be made in Canada ifin the case of a supply by way of sale of tangible personal property, the property is, or is to be, delivered or made available in Canada to the recipient of the supply;in the case of a supply of tangible personal property otherwise than by way of sale, possession or use of the property is given or made available in Canada to the recipient of the supply;in the case of a supply of intangible personal property,the property may be used in whole or in part in Canada, orthe property relates to real property situated in Canada, to tangible personal property ordinarily situated in Canada or to a service to be performed in Canada;in the case of a supply of real property or of a service in relation to real property, the real property is situated in Canada;[Repealed, 1997, c. 10, s. 6]the supply is a supply of a prescribed service; orin the case of a supply of any other service, the service is, or is to be, performed in whole or in part in Canada.General rule — outside CanadaFor the purposes of this Part, a supply shall be deemed to be made outside Canada ifin the case of a supply by way of sale of tangible personal property, the property is, or is to be, delivered or made available outside Canada to the recipient of the supply;in the case of a supply of tangible personal property otherwise than by way of sale, possession or use of the property is given or made available outside Canada to the recipient of the supply;in the case of a supply of intangible personal property,the property may not be used in Canada, orthe property relates to real property situated outside Canada, to tangible personal property ordinarily situated outside Canada or to a service to be performed wholly outside Canada;in the case of a supply of real property or a service in relation to real property, the real property is situated outside Canada;[Repealed, 1997, c. 10, s. 6]the supply is a supply of a prescribed service; orin the case of a supply of any other service, the service is, or is to be, performed wholly outside Canada.Mobile and floating homesFor the purposes of this section,a floating home, anda mobile home that is not affixed to landshall each be deemed to be tangible personal property and not real property.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 19;
1997, c. 10, s. 6.
Billing locationFor the purposes of this section, the billing location for a telecommunication service supplied to a recipient is in Canada ifwhere the consideration payable for the service is charged or applied to an account that the recipient has with a person who carries on the business of supplying telecommunication services and the account relates to a telecommunications facility that is used or is available for use by the recipient to obtain telecommunication services, that telecommunications facility is ordinarily located in Canada; andin any other case, the telecommunications facility used to initiate the service is located in Canada.Place of supply of telecommunication serviceNotwithstanding section 142 and subject to section 143, for the purposes of this Part, a supply of a telecommunication service is deemed to be made in Canada wherein the case of a telecommunication service of making telecommunications facilities available, the facilities or any part thereof are located in Canada; andin any other case,the telecommunication is emitted and received in Canada, orthe telecommunication is emitted or received in Canada and the billing location for the service is in Canada.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1997, c. 10, s. 7.
Supply by non-residentFor the purposes of this Part, a supply of personal property or a service made in Canada by a non-resident person shall be deemed to be made outside Canada, unlessthe supply is made in the course of a business carried on in Canada;at the time the supply is made, the person is registered under Subdivision d of Division V; orthe supply is the supply of an admission in respect of a place of amusement, a seminar, an activity or an event where the non-resident person did not acquire the admission from another person.[Repealed, 1993, c. 27, s. 20]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 20.
Supply by mail or courierNotwithstanding subsections 142(2) and 143(1), for the purposes of this Part, a supply of prescribed tangible personal property made by a person who is registered under Subdivision d of Division V shall be deemed to be made in Canada if the property is sent, by mail or courier, to the recipient of the supply at an address in Canada.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 21.
Supply before releaseFor the purposes of this Part, a supply of goods that have been imported in compliance with the Customs Act or any other Act of Parliament that prohibits, controls or regulates the importation of goods, but have not been released before the goods are delivered or made available in Canada to the recipient of the supply, shall be deemed to be made outside Canada.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
Property in transitFor the purposes of this Part (other than sections 4, 15.3 and 15.4 of Part V of Schedule VI), if a continuous transmission commodity is transported by means of a wire, pipeline or other conduitoutside Canada in the course of, and solely for the purpose of, being delivered by that means from a place in Canada to another place in Canada,in Canada in the course of, and solely for the purpose of, being delivered by that means from a place outside Canada to another place outside Canada,from a place in Canada to a place outside Canada where it is stored or taken up as surplus for a period until further transported by that means to a place in Canada in the same measure and state except to the extent of any consumption or alteration necessary or incidental to its transportation, orfrom a place outside Canada to a place in Canada where it is stored or taken up as surplus for a period until further transported by that means to a place outside Canada in the same measure and state except to the extent of any consumption or alteration necessary or incidental to its transportation,the commodity is deemed not to be exported or imported in the course of that transportation or further transportation.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2000, c. 30, s. 21.
Supply in a provinceFor the purposes of this Part, a supply is deemed to be made in a province if it is made in Canada and is, under the rules set out in Schedule IX, made in the province, but is deemed to be made outside the province in any other case and a supply made in Canada that is not made in any participating province is deemed to be made in a non-participating province.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1997, c. 10, s. 158.
[Repealed, 1997, c. 10, s. 8]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1997, c. 10, s. 8.
Supplies by governments and municipalitiesFor the purposes of this Part, the following supplies, when made for consideration by a government or municipality or a board, commission or other body established by a government or municipality, shall, for greater certainty, be deemed to be made in the course of a commercial activity, except where the supply is an exempt supply:a supply of a service of testing or inspecting any property for the purpose of verifying or certifying that the property meets particular standards of quality or is suitable for consumption, use or supply in a particular manner;a supply to a consumer of a right to hunt or fish;a supply of a right to take or remove forestry products, products that grow in water, fishery products, minerals or peat, where the supply is made toa consumer, ora person who is not a registrant and who acquires the right in the course of a business of the person of making supplies of the products, minerals or peat to consumers;a supply of a licence, permit, quota or similar right in respect of the importation of alcoholic beverages; anda supply of a right to enter, to have access to or to use property of the government, municipality or other body.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 22.
[Repealed, 1994, c. 9, s. 5]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1994, c. 9, s. 5.
Small SuppliersSmall suppliersFor the purposes of this Part, a person is a small supplier throughout a particular calendar quarter and the first month immediately following the particular calendar quarter ifthe total of all amounts each of which is the value of the consideration (other than consideration referred to in section 167.1 that is attributable to goodwill of a business) that became due in the four calendar quarters immediately preceding the particular calendar quarter, or that was paid in those four calendar quarters without having become due, to the person or an associate of the person at the beginning of the particular calendar quarter for taxable supplies (other than supplies of financial services and supplies by way of sale of capital property of the person or associate) made inside or outside Canada by the person or associatedoes not exceed the total of$30,000 or, where the person is a public service body, $50,000, andwhere, in the four calendar quarters immediately preceding the particular calendar quarter, the person or an associate of the person at the beginning of the particular calendar quarter made a taxable supply of a right to participate in a game of chance or is deemed, under section 187, to have made a supply in respect of a bet and the supply is a taxable supply, the total of all amounts each of which isan amount of money paid or payable by the person or the associate as a prize or winnings in the game or in satisfaction of the bet, orconsideration paid or payable by the person or the associate for property or a service that is given as a prize or winnings in the game or in satisfaction of the bet.ExceptionNotwithstanding subsection (1), where at any time in a calendar quarterthe total of all amounts each of which is the value of the consideration (other than consideration referred to in section 167.1 that is attributable to goodwill of a business) that became due in the calendar quarter, or that was paid in that calendar quarter without having become due, to a person or an associate of the person at the beginning of the calendar quarter for taxable supplies (other than supplies of financial services and supplies by way of sale of capital property of the person or associate) made inside or outside Canada by the person or associateexceeds the total of$30,000 or, where the person is a public service body, $50,000, andwhere, in the calendar quarter, the person or an associate of the person at the beginning of the calendar quarter made a taxable supply of a right to participate in a game of chance or is deemed, under section 187, to have made a supply in respect of a bet and the supply is a taxable supply, the total of all amounts each of which isan amount of money paid or payable by the person or the associate as a prize or winnings in the game or in satisfaction of the bet, orconsideration paid or payable by the person or the associate for property or a service that is given as a prize or winnings in the game or in satisfaction of the bet,the person is not a small supplier throughout the period beginning immediately before that time and ending on the last day of the calendar quarter.ApplicationThis section does not apply to a non-resident person who makes a supply in Canada of admissions in respect of a place of amusement, a seminar, an activity or an event and whose only business carried on in Canada is the making of such supplies.Meaning of associateIn this section, associate of a particular person at any time means another person who is associated at that time with the particular person.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 23;
1997, c. 10, s. 9.
Meaning of gross revenueIn this section, gross revenue of a person for a fiscal year of the person means the amount, if any, by whichthe total of all amounts each of which isa gift that is received or becomes receivable (depending on the method, in this paragraph referred to as the “accounting method”, followed by the person in determining the person’s revenue for the year) by the person during the fiscal year,a grant, subsidy, forgivable loan or other assistance (other than a refund or rebate of, or credit in respect of, taxes, duties or fees imposed by an Act of Parliament or the legislature of a province) in the form of money that is received or becomes receivable (depending on the accounting method) by the person during the fiscal year from a government, municipality or other public authority,revenue that is or would be, if the person were a taxpayer under the Income Tax Act, included for the purposes of that Act in determining the person’s income for the fiscal year from property, a business, an adventure or concern in the nature of trade or other source and that is not included in subparagraph (ii),an amount that is or would be, if the person were a taxpayer under the Income Tax Act, a capital gain for the fiscal year for the purposes of that Act from the disposition of property of the person, orother revenue of any kind whatever (other than an amount that is or would be, if the person were a taxpayer under the Income Tax Act, included in determining the amount of a capital gain or loss of the person for the purposes of that Act) that is received or becomes receivable (depending on the accounting method) by the person during the fiscal year,and that is not included in determining the total under this paragraph for a preceding fiscal year of the person,exceedsthe total of all amounts each of which is or would be, if the person were a taxpayer under the Income Tax Act, a capital loss for the fiscal year for the purposes of that Act from the disposition of property of the person.Charity and public institution as small supplierFor the purposes of this Part, a person that is a charity or a public institution at any time in a particular fiscal year of the person is a small supplier throughout the particular fiscal year ifthe particular fiscal year is the first fiscal year of the person;the particular fiscal year is the second fiscal year of the person and the gross revenue of the person for the first fiscal year of the person was $250,000 or less; orthe particular fiscal year is not the first or second fiscal year of the person and the gross revenue of the person for either of the two fiscal years of the person immediately preceding the particular fiscal year was $250,000 or less.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1994, c. 9, s. 6;
1997, c. 10, s. 10.
Financial InstitutionsFinancial institutionsFor the purposes of this Part, a person is a financial institution throughout a particular taxation year of the person ifthe person isa bank,a corporation that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as a trustee,a person whose principal business is as a trader or dealer in, or as a broker or salesperson of, financial instruments or money,a credit union,an insurer or any other person whose principal business is providing insurance under insurance policies,a segregated fund of an insurer,the Canada Deposit Insurance Corporation,a person whose principal business is the lending of money or the purchasing of debt securities or a combination thereof,an investment plan,a person providing services referred to in section 158, ora corporation deemed under section 151 to be a financial institution,at any time in the particular year;the total (in this section referred to as the “financial revenue”) of all amounts each of which is an amount that is interest, a dividend (other than a dividend in kind or a patronage dividend) or a separate fee or charge for a financial service and that is included in computing, for the purposes of the Income Tax Act, the person’s income, or, if the person is an individual, the person’s income from a business, for the taxation year of the person preceding the particular year exceeds the greater of10% of the total ofthe amount that would, but for subsection (4), be the financial revenue, andthe total of all consideration that became due in that preceding taxation year, or that was paid in that preceding taxation year without having become due, to the person for supplies (other than supplies by way of sale of capital property of the person and supplies of financial services that are not zero-rated supplies described by section 3 of Part IX of Schedule VI) made by the person, andthe amount determined by the formula$10,000,000 × A/365whereAis the number of days in that preceding taxation year; orthe total of all amounts each of which is an amount that is included in computing, for the purposes of that Act, the person’s income, or, where the person is an individual, the person’s income from a business, for that preceding taxation year and that is interest, or a separate fee or charge, with respect toa credit card or charge card issued by the person, orthe making of an advance, the lending of money or the granting of creditexceedsthe amount determined by the formula$1,000,000 × A/365whereAis the number of days in that preceding taxation year.AmalgamationsFor the purposes of this Part, whereat any time two or more corporations (in this subsection referred to as the “predecessors”) are merged or amalgamated to form one corporation (in this subsection referred to as the “new corporation”), andthe principal business of the new corporation immediately after that time is the same as or similar to the business of one or more of the predecessors that immediately before that time was a financial institution,the new corporation is a financial institution throughout the taxation year of the new corporation that began at that time.Acquisition of businessFor the purposes of this Part, wherea particular person, at any time in a taxation year of the particular person, acquires a business as a going concern from another person who was immediately before that time a financial institution, andimmediately after that time the principal business of the particular person is the business so acquired,the particular person is a financial institution throughout the part of that taxation year that is after that time.Exclusion of interest and dividendIn determining a total for a person under paragraph (1)(b) or (c), there shall not be included interest, or any dividend, from a corporation related to the person.Exclusion — sales of precious metalsIn determining an amount of financial revenue, there shall not be included a separate fee or charge for a financial service the supply of which is a zero-rated supply described by section 3 of Part IX of Schedule VI.[Repealed, 2000, c. 30, s. 22]Charities, municipalities, etc.Paragraphs (1)(b) and (c) do not apply for the purpose of determining if a person is a financial institution throughout a particular taxation year where the person isat the beginning of the particular year,a charity, municipality, school authority, hospital authority, public college or university, ora non-profit organization that operated, otherwise than for profit, a health care facility within the meaning of paragraph (c) of the definition of that expression in section 1 of Part II of Schedule V; oron the last day of the taxation year of the person preceding the particular year, a qualifying non-profit organization (within the meaning of subsection 259(2)).Meaning of investment planIn this section, investment plan meansa trust governed bya registered pension plan,an employees profit sharing plan,a registered supplementary unemployment benefit plan,a registered retirement savings plan,a deferred profit sharing plan,a registered education savings plan,a registered retirement income fund,an employee benefit plan,an employee trust,a mutual fund trust,a pooled fund trust,a unit trust, ora retirement compensation arrangement,as each of those terms is defined for the purposes of the Income Tax Act or the Income Tax Regulations;an investment corporation, as that term is defined for the purposes of that Act;a mortgage investment corporation, as that term is defined for the purposes of that Act;a mutual fund corporation, as that term is defined for the purposes of that Act;a non-resident owned investment corporation, as that term is defined for the purposes of that Act;a corporation exempt from tax under that Act by reason of paragraph 149(1)(o.1) or (o.2) of that Act; anda prescribed person, or a person of a prescribed class, but only where the person would be a selected listed financial institution for a reporting period in a fiscal year that ends in a taxation year of the person if the person were a listed financial institution included in subparagraph 149(1)(a)(ix) during the taxation year and the preceding taxation year of the person.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 24;
1997, c. 10, s. 11;
2000, c. 30, s. 22;
2009, c. 32, s. 4.
Previous VersionElection for exempt suppliesFor the purposes of this Part, where at any time a person who is a member of a closely related group of which a listed financial institution is a member files an election made jointly by the person and a corporation that is also a member of the group at that time, every supply between the person and the corporation of property by way of lease, licence or similar arrangement or of a service that is made at a time when the election is in effect and that would, but for this subsection, be a taxable supply is deemed to be a supply of a financial service.ExceptionsSubsection (1) does not apply toproperty held or services rendered by a member of a closely related group as a participant in a joint venture with another person while an election under section 273 made jointly by the member and the other person is in effect;an imported taxable supply, as defined in section 217; ora supply of services in relation to the clearing or settlement of cheques and other payment items under the national payments system of the Canadian Payments Association if the recipient (in this paragraph referred to as the “related purchaser”) is acquiring all or part of those services for the purpose of making a supply of exempt services toan unrelated party, ora supplier that is a member of a closely related group of which the related purchaser is a member and that acquires all or part of the exempt services for the purpose of making a supply of exempt services to an unrelated party or to a supplier described by this subparagraph.DefinitionsThe following definitions apply in subsection (2).exempt servicesservices exonérésexempt services means services prescribed by section 3 of the Financial Services (GST/HST) Regulations.unrelated partytiers non liéunrelated party, in respect of a supply of services, means a person that is not a member of a closely related group of which the supplier is a member and that is acquiring the services for the purpose of making a supply of services in relation to the clearing or settlement of cheques and other payment items under the national payments system of the Canadian Payments Association.Form and manner of filingAn election under subsection (1) relating to supplies between a member of a closely related group and a corporation shallbe made in prescribed form containing prescribed information;specify the day the election is to become effective; andbe filed by the member with the Minister in prescribed manner on or before the day on or before which a return under Division V for the reporting period of the member in which the election is to become effective is required to be filed.Effect of electionAn election under subsection (1) shall be effective for the period beginning on the day specified in the election and ending on the earliest ofthe day either member ceases to be a member of the closely related group,the first day the closely related group does not include a listed financial institution (other than a person that is a financial institution only by reason of section 151), anda day that the members specify in a notice of revocation in prescribed form containing prescribed information filed jointly by the members with the Minister in prescribed manner, which day is at least three hundred and sixty-five days after the day specified in the election.Subsequent electionsWhere an election made under subsection (1) jointly by a member of a closely related group and a corporation ceases to be effective, the member and the corporation shall not thereafter make an election jointly under subsection (1) without the written concurrence of the Minister.Credit unions deemed to have electedFor the purposes of this Part,every credit union shall be deemed to be at all times a member of a closely related group of which every other credit union is a member;every credit union shall be deemed to have made an election under subsection (1) with every other credit union that is in effect at all times; andevery supply of tangible personal property by a credit union, other than a capital property of the credit union, to another credit union shall be deemed to be a supply of a financial service.[Repealed, 1993, c. 27, s. 25]Mutual insurance group — deemed electionFor the purposes of this Part, every member of a mutual insurance group shall be deemedto be at all times a member of a closely related group of which every other member of the mutual insurance group is a member; andto have made, with every other member of the group, an election under subsection (1) that is in effect at all times.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 25;
1997, c. 10, s. 12;
2007, c. 18, s. 5.
Previous VersionEffect of election under subsection 150(1)For the purposes of this Part, where a corporation that is a member of a closely related group has made an election under subsection 150(1), the corporation shall be deemed to be a financial institution throughout the period during which the election is in effect.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
ConsiderationWhen consideration dueFor the purposes of this Part, the consideration, or a part thereof, for a taxable supply shall be deemed to become due on the earliest ofthe earlier of the day the supplier first issues an invoice in respect of the supply for that consideration or part and the date of that invoice,the day the supplier would have, but for an undue delay, issued an invoice in respect of the supply for that consideration or part, andthe day the recipient is required to pay that consideration or part to the supplier pursuant to an agreement in writing.Consideration under leases, etc.Notwithstanding subsection (1), where property is supplied by way of lease, licence or similar arrangement under an agreement in writing, the consideration, or any part thereof, for the supply shall, for the purposes of this Part, be deemed to become due on the day the recipient is required to pay the consideration or part to the supplier pursuant to the agreement.PaymentFor the purposes of this Part, where consideration that is not money is given or required to be given, the consideration that is given or required to be given shall be deemed to be paid or required to be paid, as the case may be.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
Value of considerationSubject to this Division, the value of the consideration, or any part thereof, for a supply shall, for the purposes of this Part, be deemed to be equal towhere the consideration or that part is expressed in money, the amount of the money; andwhere the consideration or that part is other than money, the fair market value of the consideration or that part at the time the supply was made.Combined considerationFor the purposes of this Part, whereconsideration is paid for a supply and other consideration is paid for one or more other supplies or matters, andthe consideration for one of the supplies or matters exceeds the consideration that would be reasonable if the other supply were not made or the other matter were not provided,the consideration for each of the supplies and matters shall be deemed to be that part of the total of all amounts, each of which is consideration for one of those supplies or matters, that may reasonably be attributed to each of those supplies and matters.Barters between registrantsWherethe consideration or a part of the consideration for a supply of property of a particular class or kind is property of that class or kind,both the supplier and the recipient are registrants, andthe property is acquired by the recipient and the consideration or that part thereof is acquired by the supplier as inventory for use exclusively in commercial activities of the recipient or supplier, as the case may be,the value of the consideration or that part thereof shall be deemed to be nil.Used tangible personal property trade-insWhere, at the time a supplier makes a supply of tangible personal property to a recipient, the supplier accepts, in full or partial consideration for the supply, other property (in this subsection and subsection (5) referred to as the “trade-in”) thatis used tangible personal property or a leasehold interest therein, andis acquired for consumption, use or supply in the course of a commercial activity of the supplier,and the recipient is not required to collect tax in respect of the supply of the trade-in, the value of the consideration for the supply made by the supplier is deemed, for the purposes of this Part, to be equal to the amount, if any, by which the value of the consideration for that supply (as otherwise determined under this Part) exceedsexcept where paragraph (d) applies, the amount credited to the recipient in respect of the trade-in, andwhere the supplier and the recipient are not dealing with each other at arm’s length at the time the supply is made and the amount credited to the recipient in respect of the trade-in exceeds the fair market value of the trade-in at the time ownership thereof is transferred to the supplier, that fair market value.Sale-leaseback arrangementsFor the purposes of this Part, ifa person (in this subsection and subsections (4.2) to (4.5) referred to as the “lessee”) makes a supply by way of sale of tangible personal property to another person (in this subsection referred to as the “lessor”),the lessee is not required to collect tax in respect of that supply, andthe lessor immediately makes a taxable supply by way of lease of the property to the lessee under an agreement (in this subsection and subsections (4.2) to (4.5) referred to as the “original leaseback agreement”),the value of the consideration for a supply of the property by way of lease that, at a particular time, becomes due or is paid without having become due under a particular agreement that is the original leaseback agreement or a subsequent lease in respect of that agreement is deemed to be equal to the amount determined by the formulaA - BwhereAis the value of that consideration as otherwise determined under this Part, andBis the amount (in this subsection referred to as the “purchase credit”) that is equal to the least ofthe value of A,the amount determined by the formulaB1/B2whereB1is the amount (in this subsection and subsection (4.5) referred to as the “unused total purchase credit”), if any, by which the consideration for the supply by way of sale exceeds the total of all amounts each of which is the purchase credit that was determined in calculating the amount deemed under this subsection to be the value of any consideration that, before the particular time, became due or was paid without having become due under the original leaseback agreement or a subsequent lease in respect of that agreement, andB2is the specified number of remaining lease payments under the particular agreement at the particular time, andif there is no unused total purchase credit, zero.Meaning of specified number of remaining lease paymentsIn subsection (4.1), the specified number of remaining lease payments, at a particular time, in respect of a particular agreement for the supply of property by way of lease that is an original leaseback agreement or a subsequent lease in respect of that agreement, is the amount determined by the formulaA - BwhereAis the total number of payments that the lessee was obligated to make as consideration for the supplies of the property by way of lease under the particular agreement based on the terms of that agreement at the time it was entered into; andBis the total number of the payments referred to in the description of A that, before the particular time, became due or were paid by the lessee.Meaning of subsequent leaseIn subsections (4.1) to (4.5), subsequent lease, in respect of an original leaseback agreement for the supply by way of lease of property to a lessee, meansan agreement for the supply by way of lease of the property that constitutes a new agreement between the lessee and an assignee of the rights and obligations of the person who is the supplier under the original leaseback agreement or under an agreement referred to in this paragraph or in paragraph (b); oran agreement for the supply of the property to the lessee by way of lease that succeeds, as a new agreement, either the original leaseback agreement or a particular agreement referred to in paragraph (a) or in this paragraph upon a renewal or variation of that original leaseback agreement or particular agreement.Deemed subsequent leaseFor the purposes of subsections (4.1), (4.2) and (4.5), if a supplier agrees, at any time, to renew, vary, terminate (otherwise than upon the exercise of an option to purchase) or assign a particular agreement for the supply of property to a lessee by way of lease that is an original leaseback agreement or a subsequent lease in respect of that agreement and the renewal, variation, termination or assignment does not constitute a novation of the particular agreement but has the effect of changing the number of payments that the lessee is obligated to make for supplies by way of lease of the property under the particular agreement,the supplier and lessee are deemed to have, at that time, entered into a subsequent lease in respect of the original leaseback agreement; andall supplies by way of lease for which consideration becomes due, or is paid without having become due, at or after the time the renewal, variation, termination or assignment takes effect that would, but for this subsection, be made under the particular agreement are deemed to be made under that subsequent lease and not under the particular agreement.Exercise of option to purchaseFor the purposes of this Part other than a purpose referred to in paragraph (5)(a), ifa supply by way of sale of property is made to a lessee on the exercise by the lessee of an option to purchase the property provided for in an original leaseback agreement entered into by the lessee in respect of the property, or in a subsequent lease in respect of that agreement, to which subsection (4.1) applied, andimmediately before the earliest time at which consideration for the supply becomes due or is paid without having become due, there is an unused total purchase credit in respect of the property,the following rules apply:the value of the consideration for the supply is deemed to be equal to the amount determined by the formulaA - BwhereAis the value of that consideration as otherwise determined under this Part, andBis that unused total purchase credit, andsubsection (4.1) does not apply to any consideration that, after that earliest time, becomes due or is paid without having become due for any supply by way of lease of the property that was made under the original leaseback agreement or under a subsequent lease in respect of that agreement.Non-arm’s length suppliesFor the purposes of subsection (4.1), if a person makes a supply by way of sale of property to a recipient with whom the person is not dealing at arm’s length and the consideration for the supply exceeds the fair market value of the property at the time ownership of the property is transferred to the recipient, the consideration for the supply is deemed to be equal to that fair market value.ExceptionSubsections (4) and (4.1) do not applyfor the purpose of determining, for the purposes of any provision of this Part or any Schedule to this Act other than Schedules I to IV, whether the value of consideration for a supply of property equals, exceeds or is less than another amount specified in the provision;for the purposes of section 148 or 249; orif the supply of the trade-in, or the supply by way of sale referred to in paragraph (4.1)(a), as the case may be, isa zero-rated supply,a supply made outside Canada, ora supply in respect of which no tax is payable because of subsection 156(2) or paragraph 167(1.1)(a).Exchange of natural gas liquids for make-up gasFor the purposes of this Part, ifnatural gas is transported by pipeline to a straddle plant at which natural gas liquids or ethane (each of which is, in this subsection, referred to as “natural gas liquids”) is recovered from the natural gas,the residue gas is returned to the pipeline after the recovery along with other natural gas (in this subsection referred to as “make-up gas”) that is supplied solely to make up for the loss of energy content due to the recovery, andthe consideration or a part of the consideration for any supply of the natural gas liquids (or the right to recover the liquids) or any supply of the make-up gas isin the case of a supply of the natural gas liquids or the right to recover the liquids, the make-up gas, andin the case of a supply of the make-up gas, the natural gas liquids or the right to recover the liquids,the value of that consideration or part, as the case may be, is deemed to be nil.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1997, c. 10, s. 13;
2000, c. 30, s. 23.
Meaning of provincial levyIn this section, provincial levy means a tax, duty or fee imposed under an Act of the legislature of a province in respect of the supply, consumption or use of property or a service.Levies included in considerationFor the purposes of this Part, the consideration for a supply of property or a service includesany tax, duty or fee imposed under an Act of Parliament that is payable by the recipient, or payable or collectible by the supplier, in respect of that supply or in respect of the production, importation, consumption or use of the property or service, other than tax under this Part that is payable by the recipient;any provincial levy that is payable by the recipient, or payable or collectible by the supplier, in respect of that supply or in respect of the consumption or use of the property or service, other than a prescribed provincial levy that is payable by the recipient; andany other amount that is collectible by the supplier under an Act of the legislature of a province and that is equal to, or is collectible on account of or in lieu of, a provincial levy, except where the amount is payable by the recipient and the provincial levy is a prescribed provincial levy.Reference to “recipient”If, under this Part, a person is deemed to be the recipient of a supply in respect of which another person would, but for that deeming, be the recipient, a reference in this section to the recipient of the supply shall be read as a reference to that other person.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1997, c. 10, s. 14;
2000, c. 30, s. 24.
Non-arm’s length suppliesFor the purposes of this Part, where a supply of property or a service is made between persons not dealing with each other at arm’s length for no consideration or for consideration less than the fair market value of the property or service at the time the supply is made, and the recipient of the supply is not a registrant who is acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the recipient,if no consideration is paid for the supply, the supply shall be deemed to be made for consideration, paid at that time, of a value equal to the fair market value of the property or service at that time; andif consideration is paid for the supply, the value of the consideration shall be deemed to be equal to the fair market value of the property or service at that time.ExceptionSubsection (1) does not apply to a supply of property or a service by a person wherean amount is deemed under section 173 to be the total consideration for the supply; orin the absence of subsection (1),the person, because of subsection 170(1), would not be entitled to claim an input tax credit in respect of the acquisition or importation of the property or service by the person,subsection 172(2) would apply to the supply, orthe supply would be an exempt supply included in Part V.1 or VI of Schedule V.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 26;
1997, c. 10, s. 15.
DefinitionsThe definitions in this subsection apply in this section.Canadian partnershipsociété de personnes canadienneCanadian partnership means a partnership each member of which is a corporation or partnership and is resident in Canada.distributionattributiondistribution has the meaning assigned by subsection 55(1) of the Income Tax Act.qualifying groupgroupe admissiblequalifying group meansa group of corporations, each member of which is closely related, within the meaning assigned by section 128, to each other member of the group; ora group of Canadian partnerships, or of Canadian partnerships and corporations, each member of which is closely related, within the meaning of this section, to each other member of the group.qualifying membermembre admissiblequalifying member of a qualifying group means a registrant that is a corporation resident in Canada or a Canadian partnership and that meets the following conditions:the registrant is a member of the group;the registrant is not a party to an election under subsection 150(1); andthe registrant last manufactured, produced, acquired or imported all or substantially all of its property (other than financial instruments) for consumption, use or supply exclusively in the course of commercial activities of the registrant or, if the registrant has no property (other than financial instruments), all or substantially all of the supplies made by the registrant are taxable supplies.secured creditor[Repealed, 2000, c. 30, s. 25]security interest[Repealed, 2000, c. 30, s. 25]specified membermembre déterminéspecified member of a qualifying group meansa qualifying member of the group; ora temporary member of the group during the course of the reorganization referred to in paragraph (f) of the definition temporary member.temporary membermembre temporairetemporary member of a qualifying group means a corporationthat is a registrant;that is resident in Canada;that is a member of the qualifying group;that is not a qualifying member of the qualifying group;that is not a party to an election under subsection 150(1);that receives a supply of property made in contemplation of a distribution made in the course of a reorganization described in subparagraph 55(3)(b)(i) of the Income Tax Act from the distributing corporation referred to in that subparagraph that is a qualifying member of the qualifying group;that, before receiving the supply, does not carry on any business or have any property (other than financial instruments); andthe shares of which are transferred on the distribution.Closely related personsFor the purposes of this section, a particular Canadian partnership and another person that is a Canadian partnership or a corporation are closely related to each other at any time if, at that time,in the case where the other person is a Canadian partnership,all or substantially all of the interest in the other person is held bythe particular partnership,a corporation, or a Canadian partnership, that is a member of a qualifying group of which the particular partnership is a member, orany combination of corporations or partnerships referred to in clauses (A) and (B), orthe particular partnershipowns at least 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of a corporation that is a member of a qualifying group of which the other person is a member, orholds all or substantially all of the interest in a Canadian partnership that is a member of a qualifying group of which the other person is a member; andin the case where the other person is a corporation,not less than 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of the other person are owned bythe particular partnership,a corporation, or a Canadian partnership, that is a member of a qualifying group of which the particular partnership is a member, orany combination of corporations or partnerships referred to in clauses (A) and (B),not less than 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of a corporation are owned byif the corporation is a member of a qualifying group of which the particular partnership is a member, the other person, andif the corporation is a member of a qualifying group of which the other person is a member, the particular partnership,all or substantially all of the interest in the particular partnership is held bythe other person,a corporation, or a Canadian partnership, that is a member of a qualifying group of which the other person is a member, orany combination of corporations or partnerships referred to in clauses (A) and (B), orall or substantially all of the interest in a Canadian partnership is held byif the Canadian partnership is a member of a qualifying group of which the particular partnership is a member, the other person, andif the Canadian partnership is a member of a qualifying group of which the other person is a member, the particular partnership.Persons closely related to the same personIf, under subsection (1.1), two persons are closely related to the same corporation or partnership, or would be so related if each member of that partnership were resident in Canada, the two persons are closely related to each other for the purposes of this section.Interest in a partnershipFor the purposes of this section, a person, or a group of persons, holds, at any time, all or substantially all of the interest in a partnership only if, at that time,the person, or every person in the group of persons, is a member of the partnership; andthe person, or the members of the group collectively, as the case may be, is or areentitled to receive at least 90% ofif the partnership had income for the last fiscal period (within the meaning of the Income Tax Act) of the partnership that ended before that time (or, if the partnership’s first fiscal period includes that time, for that period), the total of all amounts each of which is the share of that income from all sources that each member of the partnership is entitled to receive, orif the partnership had no income for the last fiscal period or the first fiscal period referred to in clause (A), as the case may be, the total of all amounts each of which is the share of the income of the partnership that each member of the partnership would be entitled to receive if the income of the partnership from each source were one dollar,entitled to receive at least 90% of the total amount that would be paid to all members of the partnership (otherwise than as a share of any income of the partnership) if it were wound up at that time, andable to direct the business and affairs of the partnership or would be so able if no secured creditor had any security interest in an interest in, or the property of, the partnership.Election for nil considerationFor the purposes of this Part, if a specified member of a qualifying group elects jointly with another specified member of the group, every taxable supply made between them at a time when the election is in effect is deemed to have been made for no consideration.Non-applicationSubsection (2) does not apply toa supply by way of sale of real property;a supply of property, or of a service, that is not acquired by the recipient for consumption, use or supply exclusively in the course of commercial activities of the recipient; ora supply that is not a supply of property made in contemplation of a distribution made in the course of a reorganization described in subparagraph 55(3)(b)(i) of the Income Tax Act, if the recipient of the supply is a temporary member.CessationAn election under subsection (2) made jointly by a particular member of a qualifying group and another member of the group ceases to have effect on the earliest ofthe day on which the particular member ceases to be a specified member of the group,the day on which the other member ceases to be a specified member of the group, andthe day on which the election is revoked jointly by those members.Form of election and revocationAn election under subsection (2) and a revocation of the election shall be made in prescribed form containing prescribed information and shall specify the effective date thereof.
NOTE: Application provisions are not included in the consolidated text;
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 28.
Tax refund discountsFor the purposes of this Part, where a discounter (within the meaning of the Tax Rebate Discounting Act) pays an amount to a person to acquire from the person a right to a refund of tax (within the meaning of that Act, notwithstanding section 139, the discounter shall be deemed to have madea taxable supply of a service for consideration equal to the lesser of2/3 of the amount, if any, by which the amount of the refund exceeds the amount paid by the discounter to the person to acquire the right, and$30; anda separate supply of a financial service for consideration equal to the amount by which the amount of the refund exceeds the total of the amount paid by the discounter to the person to acquire the right and the amount determined under paragraph (a).
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
Value in Canadian currencyWhere the consideration for a supply is expressed in a foreign currency, the value of the consideration shall, for the purposes of this Part, be computed on the basis of the value of that foreign currency in Canadian currency on the day the tax is payable, or on such other day as is acceptable to the Minister.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
Coin-operated devicesWhere a supply is made, and the consideration therefor is paid, by means of a coin-operated device, the following rules apply for the purposes of this Part:the recipient shall be deemed to havereceived the supply,paid the consideration for the supply, andpaid any tax payable in respect of the supply,on the day the consideration for the supply is inserted into the device; andthe supplier shall be deemed to havemade the supply,received the consideration for the supply, andcollected any tax payable in respect of the supply,on the day the consideration for the supply is removed from the device.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
Early or late paymentsFor the purposes of this Part, where tangible personal property or services are supplied and the amount of consideration for the supply shown in the invoice in respect of the supply may be reduced if the amount thereof is paid within a time specified in the invoice or an additional amount is charged to the recipient by the supplier if the amount of the consideration is not paid within a reasonable period specified in the invoice, the consideration due shall be deemed to be the amount of consideration shown in the invoice.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
DefinitionsThe definitions in this subsection apply in this section.estimated reservesréserves estiméesestimated reserves of minerals means the estimated quantities of minerals that geological and engineering data demonstrate, with reasonable certainty, to be recoverable under existing economic and operating conditions.farm-out agreementaccord d’amodiationfarm-out agreement means an agreement referred to in subsection (4).natural resource rightdroit relatif à des ressourcesnatural resource right meansa right to explore for or exploit a mineral deposit;a right of entry or user relating to a right referred to in paragraph (a); ora right to an amount computed by reference to the production (including profit) from, or to the value of production from, a mineral deposit.specified mining or well-site equipmentmatériel déterminéspecified mining or well-site equipment, in relation to the exploration or development of unproven property under a farm-out agreement, meansequipment, installations and structures for use at a mine site in the production of minerals from the mine and not in the milling, smelting, refining or other processing of the minerals after production; andequipment, installations and structures for use at a well site in the production of minerals from the well, including a heater, dehydrator or other well-site facility for the initial treatment of substances produced from the well to prepare such production for transportation but excludingany equipment, installation, structure or facility that serves or is intended to serve a well that has not been drilled in the course of the exploration or development under that agreement, andany equipment, installation, structure or facility for use in the refining of oil or the processing of natural gas including the separation therefrom of liquid hydrocarbons, sulphur or other joint products or by-products.unproven propertybien non prouvéunproven property means real property for which estimated reserves of minerals have not been attributed.Natural resourcesFor the purposes of this Part, the supply ofa right to explore for or exploit a mineral deposit, a peat bog or deposit of peat or a forestry, water or fishery resource,a right of entry or user relating to a right referred to in paragraph (a),a right to an amount computed by reference to the production (including profit) from, or to the value of production from, any such deposit, bog or resource, ora right to enter or use land to generate, or evaluate the feasibility of generating, electricity from the sun or wind,shall be deemed not to be a supply and any consideration paid or due, or any fee or royalty charged or reserved, in respect of the right shall be deemed not to be consideration for the right.ExceptionSubsection (2) does not apply to a supply of a right to take or remove forestry products, products that grow in water, fishery products, minerals or peat, a right of entry or user relating thereto or a right referred to in paragraph (2)(d), if the supply is made toa consumer; ora person who is not a registrant and who acquires the right in the course of a business of the person of making supplies of the products, minerals, peat or electricity to consumers.Exploration and development of mineral depositsFor the purposes of this Part, if, under an agreement in writing between a person (in this subsection referred to as the “farmor”) and another person (in this subsection referred to as the “farmee”), the farmor transfers to the farmee particular natural resource rights, or portions of them, relating to unproven property in consideration or part consideration for the farmee undertaking the exploration of the property for mineral deposits, providing information (or the right to it) gathered from the exploration and, subject to any conditions that may be provided in the agreement, developing the property for the production of minerals,the value, as consideration, of any property or service given by the farmor to the farmee under the agreement is deemed to be nil to the extent that the property or service is given as consideration for any of the following (each of which is referred to in this subsection as the “farmee’s contribution”):the undertaking of that exploration or development,the provision of that information (or the right to it), andany transfer under the agreement by the farmee to the farmor of any interest in specified mining or well-site equipment that is used by the farmee exclusively in that exploration or development;the value of the farmee’s contribution as consideration for any property or service given by the farmor to the farmee under the agreement is deemed to be nil; andif part of the consideration given by the farmor for the farmee’s contribution is a service or property (each of which is referred to in this paragraph as the “farmor’s additional contribution”) that is not a natural resource right relating to unproven property,the farmee is deemed to have made, at the place at which the unproven property is situated, a taxable supply of a service to the farmor separate from any supply by the farmee under the agreement and that service is deemed to be consideration for the farmor’s additional contribution,the value of that service and the value of the farmor’s additional contribution as consideration for the supply of that service are each deemed to be equal to the fair market value of the farmor’s additional contribution determined at the time (in this paragraph referred to as the “time of transfer”) thatif the farmor’s additional contribution is a service, performance of the service commences, andin any other case, ownership of the farmor’s additional contribution is transferred to the farmee,all of the consideration for the farmor’s additional contribution and the consideration for the service deemed to have been supplied by the farmee are deemed to become due at the time of transfer, andif, in addition to the farmee’s contribution, the farmee supplies to the farmor other property or services (other than the service deemed under subparagraph (i) to have been supplied) for which part of the consideration is the farmor’s additional contribution, the value of the consideration for the supply of the other property or services is deemed to be equal to the amount, if any, by which the value of that consideration, determined without reference to this subparagraph, exceeds the fair market value of the farmor’s additional contribution.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 29;
2000, c. 30, s. 26;
2008, c. 28, s. 72.
Previous VersionRolling stock penalties and demurrageFor the purposes of this Part, an amount that is paidas or on account of demurrage, orby one railway corporation to another railway corporation as or on account of a penalty for failure to return rolling stock within a stipulated time,shall be deemed not to be consideration for a supply.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 29.
Consideration for portions of tour packageFor the purposes of determining tax payable in respect of portions of a tour package, the consideration for a supply of the provincially taxable portion of the tour package or the non-provincially taxable portion of the tour package, as the case may be, (in this subsection referred to as the “relevant portion”) is deemed to bewhere the supply is made by the first supplier of the tour package, the amount determined by the formulaA × BwhereAis the taxable percentage in respect of the relevant portion at the time the supply is made, andBis the total consideration for the entire tour package; andwhere the supply is made by any other person, the amount determined by the formulaA × BwhereAis the percentage that the consideration for the supply to the person of the relevant portion is of the total consideration paid or payable by the person for the entire tour package, andBis the total consideration paid or payable to the person for the entire tour package.Taxable and non-taxable portionsFor the purpose of determining tax payable in respect of a tour package and for the purposes of Part VI of Schedule VI, the provision of all that part of the taxable portion of a tour package that is not included in the provincially taxable portions of the tour package and the provision of the part of the tour package that is not included in the taxable portion of the tour package are each deemed to be a supply separate from, and not incidental to, the provision of the remaining parts of the tour package.Provincially taxable portionFor the purpose of determining tax payable in respect of a tour package and for the purposes of Part VI of Schedule VI, the provision of the part of the taxable portion of a tour package that is the provincially taxable portion of the tour package in respect of a participating province is deemed to be a supply made in the participating province that is separate from, and not incidental to, the provision of the other parts, if any, of the tour package and those other parts are deemed to be supplied outside the participating province.TransitionWhere a supply of a provincially taxable portion of a tour package in respect of a participating province is made by a supplier who acquired the tour package from another person and was not required to pay tax under subsection 165(2) in respect of the tour package, the supplier is deemed to be the first supplier of the tour package for the purposes of determining the base percentage, initial taxable percentage and taxable percentage, in respect of the provincially taxable portion of the tour package and the non-provincially taxable portion of the tour package.DefinitionsIn this section and in Part VI of Schedule VI,base fraction [Repealed, 1997, c. 10, s. 159]base percentagepourcentage de référencebase percentage, at any time, in respect of the provincially taxable portion of a tour package or the non-provincially taxable portion of a tour package, as the case may be, (in this definition referred to as the relevant portion) means the percentage determined by the formulaA/BwhereAis the part of the amount (in this definition referred to as the base price) that would be charged by the first supplier of the tour package for a supply at that time of the tour package that is, at that time, reasonably attributable to the relevant portion, andBis the base price;first supplierpremier fournisseurfirst supplier of a tour package means the person who first supplies the package in Canada;initial taxable percentagepourcentage taxable initialinitial taxable percentage in respect of the provincially taxable portion of a tour package or the non-provincially taxable portion of a tour package, as the case may be, (in this definition referred to as the relevant portion) means the percentage determined, at the time the first supplier of the tour package first determines the amount (in this definition referred to as the initial price) to be charged by that supplier for a supply of the tour package, by the formulaA/BwhereAis the part of the initial price that is, at that time, reasonably attributable to the relevant portion, andBis the initial price;non-provincially taxable portionpartie non taxable au provincialnon-provincially taxable portion of a tour package means all property and services included in the taxable portion of the tour package that are not included in the provincially taxable portions of the tour package;provincially taxable portionpartie taxable au provincialprovincially taxable portion of a tour package, in respect of a participating province, means all property and services that are included in the tour package and the supplies of which, if made otherwise than as part of the tour package, would be supplies made in the participating province in respect of which tax under subsection 165(2) would be payable;taxable percentagepourcentage taxabletaxable percentage, at a particular time, in respect of the provincially taxable portion of a tour package or the non-provincially taxable portion of a tour package, as the case may be, (in this definition referred to as the relevant portion) meanswhere the difference between the base percentage at that time in respect of the relevant portion and either the initial taxable percentage in respect of the relevant portion or the base percentage at an earlier time in respect of the relevant portion is more than 10 percentage points, the base percentage at the particular time in respect of the relevant portion, andin any other case, the initial taxable percentage in respect of the relevant portion;taxable portionpartie taxabletaxable portion of a tour package means all property and services included in the tour package and in respect of which tax under Division II would be payable if the property or service were supplied otherwise than as part of a tour package;tour packagevoyage organisétour package means a combination of two or more services, or of property and services, that includes transportation services, accommodation, a right to use a campground or trailer park, or guide or interpreter services, where the property and services are supplied together for an all-inclusive price.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1997, c. 10, s. 159.
[Repealed, 1997, c. 10, s. 16]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 30;
1997, c. 10, s. 16.
Meaning of feedFor the purposes of this section, feed meansgrain, seed or fodder that is described in section 2 of Part IV of Schedule VI and used as feed for farm livestock that is ordinarily raised or kept to produce, or to be used as, food for human consumption or to produce wool;feed that is a complete feed, supplement, macro-premix, micro-premix or mineral feed (other than a trace mineral salt feed), the supply of which in bulk quantities of at least 20 kg would be a zero-rated supply included in Part IV of Schedule VI; andby-products of the food processing industry and plant or animal products, the supply of which in bulk quantities of at least 20 kg would be a zero-rated supply included in Part IV of Schedule VI.Supplies by a feedlotFor the purposes of this Part, where, in the course of operating a feedlot that is a farming business within the meaning of the Income Tax Act, a person makes a supply of a service and the consideration for the supply (in this subsection referred to as the “total charge”) includes a particular amount that is identified in the invoice or agreement in writing for the supply as being attributable to feed,the provision of the feed shall be deemed to be a supply separate from the supply of the service and not to be incidental to the provision of any other property or service;the portion, not exceeding 90%, of the total charge that is reasonably attributable to the feed and is included in the particular amount shall be deemed to be the consideration for the supply of the feed; andthe difference between the total charge and the consideration for the supply of the feed shall be deemed to be the consideration for the supply of the service.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 30;
1994, c. 9, s. 7.
Payments by unions or associationsFor the purposes of this Part, wherean individual, because of membership in a trade union or association referred to in paragraph 189(a), participates in activities of the union or association and, as a consequence, is unable to perform duties, under a contract of employment, for the individual’s employer during a period during which the individual would, were it not for the individual’s participation in those activities, be obligated to provide such services, andthe union or association pays an amount to the employer as compensation for expenses incurred by the employer as a consequence of the individual’s participation in those activities or for remuneration or benefits given by the employer to the individual in respect of that period,the amount shall be deemed not to be consideration for a supply.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 30.
Goods and Services TaxImposition of TaxImposition of goods and services taxSubject to this Part, every recipient of a taxable supply made in Canada shall pay to Her Majesty in right of Canada tax in respect of the supply calculated at the rate of 5% on the value of the consideration for the supply.Tax in participating provinceSubject to this Part, every recipient of a taxable supply made in a participating province shall pay to Her Majesty in right of Canada, in addition to the tax imposed by subsection (1), tax in respect of the supply calculated at the tax rate for that province on the value of the consideration for the supply.Zero-rated supplyThe tax rate in respect of a taxable supply that is a zero-rated supply is 0%.Application in offshore areasSubsection (2) does not apply to a supply of property or a service made in the Nova Scotia offshore area or the Newfoundland offshore area unless the supplier makes the supply in the course of an offshore activity or the recipient of the supply acquires the property or service for consumption, use or supply in the course of an offshore activity.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 31;
1997, c. 10, ss. 17, 160;
2006, c. 4, s. 3;
2007, c. 18, s. 7, c. 35, s. 184.
Previous VersionPay telephonesWhere the consideration for a supply of a telecommunication service is paid by depositing coins in a coin-operated telephone, the tax payable in respect of the supply is equal tozero where the amount deposited for the supply does not exceed $0.25; andin any other case, the total of the amounts computed in accordance with subsections 165(1) and (2), except that where that total is equal to a multiple of $0.05 plus a fraction of $0.05, the fractionif less than $0.025, may be disregarded for the purposes of this Part, andif equal to or greater than $0.025, shall be deemed, for the purposes of this Part, to be an amount equal to $0.05.Coin-operated devicesWhere the consideration for a supply of tangible personal property or a service is paid by depositing a single coin in a mechanical coin-operated device that is designed to accept only a single coin of twenty-five cents or less as the total consideration for the supply and the tangible personal property is dispensed from the device or the service is rendered through the operation of the device, the tax payable in respect of the supply is equal to zero.Supply of right to use deviceFor the purpose of subsection (2), a supply of a right to use a device described in that subsection is deemed to be a supply of a service rendered through the operation of the device.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1997, c. 10, s. 160;
2007, c. 18, s. 8.
Previous VersionCalculation of tax on several suppliesWhere two or more taxable supplies are included in an invoice, receipt or agreement and tax under section 165 is imposed in respect of each of those supplies at the same rate or rates, the tax payable in respect of those supplies, calculated on the consideration for those supplies that is included in the invoice, receipt or agreement, may be calculated on the total of that consideration.Rounding of taxWhere tax that is at any time payable under this Division in respect of one or more supplies included in an invoice, receipt or agreement is an amount that includes a fraction of a cent, the fractionif less than half of a cent, may be disregarded for the purposes of this Part; andif equal to or greater than half of a cent, shall be deemed, for the purposes of this Part, to be an amount equal to one cent.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1997, c. 10, s. 160.
Supply by small supplier not a registrantIf a person makes a taxable supply and the consideration or a part of it for the supply becomes due, or is paid before it becomes due, at a time when the person is a small supplier who is not a registrant, that consideration or part, as the case may be, shall not be included in calculating the tax payable in respect of the supply except if the supply isa supply by way of sale of real property;a supply by way of sale of personal property by a municipality that is capital property of the municipality; ora supply by way of sale of designated municipal property of a person designated to be a municipality for the purposes of section 259 that is capital property of the person.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
2004, c. 22, s. 31.
Previous VersionSupply of assets of businessWhere a supplier makes a supply of a business or part of a business that was established or carried on by the supplier or that was established or carried on by another person and acquired by the supplier, and, under the agreement for the supply, the recipient is acquiring ownership, possession or use of all or substantially all of the property that can reasonably be regarded as being necessary for the recipient to be capable of carrying on the business or part as a business,for the purposes of this Part, the supplier shall be deemed to have made a separate supply of each property and service that is supplied under the agreement for consideration equal to that part of the consideration for the supply of the business or part that can reasonably be attributed to that property or service; andexcept where the supplier is a registrant and the recipient is not a registrant, the supplier and the recipient may make a joint election in prescribed form containing prescribed information to have subsection (1.1) apply to those supplies.Effect of electionWhere a supplier and a recipient make a joint election under subsection (1) in respect of a supply of a business or part of a business and the recipient, if a registrant, files the election with the Minister not later than the day on or before which the return under Division V is required to be filed for the recipient’s first reporting period in which tax would, but for this subsection, have become payable in respect of the supply of any property or service made under the agreement for the supply of the business or part, or on such later day as the Minister may determine on application of the recipient,no tax is payable in respect of a supply of any property or service made under the agreement other thana taxable supply of a service that is to be rendered by the supplier,a taxable supply of property by way of lease, licence or similar arrangement, andwhere the recipient is not a registrant, a taxable supply by way of sale of real property; andfor the purposes of this Part,where, but for this subsection, tax would have been payable by the recipient in respect of a supply made under the agreement of property that was capital property of the supplier and that is being acquired by the recipient for use as capital property of the recipient, the recipient shall be deemed to have so acquired the property for use exclusively in the course of commercial activities of the recipient, andwhere, notwithstanding this subsection, tax would not have been payable by the recipient in respect of a supply made under the agreement of property that was capital property of the supplier and that is being acquired by the recipient for use as capital property of the recipient, the recipient shall be deemed to have so acquired the property for use exclusively in activities of the recipient that are not commercial activities.Supply of business assets of deceasedWhereimmediately before death, an individual held property for consumption, use or supply in the course of a business carried on immediately before the individual’s death,the estate of the deceased individual makes a supply, in accordance with the individual’s will or the laws relating to the succession of property on death, of the property to another individual who is a beneficiary of the estate and a registrant,the property is received for consumption, use or supply in the course of commercial activities of the other individual, andthe estate and the other individual jointly elect under this subsection,no tax is payable in respect of the supply and the other individual shall, for the purposes of this Part, be deemed to have acquired the property for use exclusively in commercial activities of the individual.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 32;
1994, c. 9, s. 8;
1997, c. 10, s. 18.
GoodwillFor the purposes of this Part, where a supplier makes a supply of a business or part of a business that was established or carried on by the supplier or that was established or carried on by another person and acquired by the supplier, the recipient is acquiring ownership, possession or use of all or substantially all of the property that can reasonably be regarded as being necessary for the recipient to be capable of carrying on the business or part as a business, and part of the consideration for the supply can reasonably be attributed to goodwill of the business or part, that part of the consideration shall not be included in calculating the tax payable in respect of the supply.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 33.
DefinitionsThe following definitions apply in this section.authorized foreign bankbanque étrangère autoriséeauthorized foreign bank has the meaning assigned by section 2 of the Bank Act.foreign bank branchsuccursale de banque étrangèreforeign bank branch means a branch as defined in paragraph (b) of the definition branch in section 2 of the Bank Act.qualifying supplyfourniture admissiblequalifying supply means a supply of property or a service that is made in Canada under an agreement for the supply (other than an agreement between a supplier that is a registrant and a recipient that is not a registrant at the time the agreement is entered into) andthat is made by a corporation resident in Canada related to the recipient;that is made after June 27, 1999, and beforeif the Superintendent makes an order under subsection 534(1) of the Bank Act in respect of the recipient after the particular day on which the Act enacting this section receives royal assent but before the day that is one year after the particular day, the day that is one year after the day on which the Superintendent makes the order, andin any other case, the day that is one year after the particular day referred to in subparagraph (i); andthat is received by a recipient thatis a non-resident person,is, or has filed an application with the Superintendent for an order under subsection 524(1) of the Bank Act to become, an authorized foreign bank, andacquired the property or service for consumption, use or supply by the recipient for the purpose of the establishment and commencement of business in Canada by the recipient as an authorized foreign bank at a foreign bank branch of the authorized foreign bank.Supply of assetsFor the purposes of this Part, if a supplier and a recipient of a qualifying supply make a joint election in accordance with subsection (7) in respect of the qualifying supply,the supplier is deemed to have made, and the recipient is deemed to have received, a separate supply of each property and service that is supplied under the agreement for the qualifying supply for consideration equal to that part of the consideration for the qualifying supply that can reasonably be attributed to that property or service;any part of the consideration for the qualifying supply attributed to goodwill is deemed to be attributed to a taxable supply of intangible personal property unless section 167.1 applies to the qualifying supply; andsubsections (3) to (6) apply to the supply of each property and service that is supplied under the agreement for the qualifying supply.Effect of electionFor the purposes of this Part, if a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply made at any time,no tax is payable in respect of a supply of any property or service made under the agreement for the qualifying supply other thana taxable supply of a service that is to be rendered by the supplier,a taxable supply of a service unless paragraph 167(1)(a) applies to the qualifying supply,a taxable supply of property by way of lease, licence or similar arrangement,if the recipient is not a registrant, a taxable supply by way of sale of real property,a taxable supply of property or a service, if the property or service was previously supplied under an agreement for a qualifying supply and, by reason of this subsection, no tax was payable in respect of that previous supply of property or service, anda taxable supply of intangible personal property (other than capital property) if the percentage determined by the following formula is greater than 10%:A - BwhereAis the extent (expressed as a percentage of the total use of the property by the supplier) to which the supplier used the property in commercial activities immediately before that time, andBis the extent (expressed as a percentage of the total use of the property by the recipient) to which the recipient used the property in commercial activities immediately after that time;if, in the absence of this subsection, tax would have been payable by the recipient in respect of a supply of property made under the agreement for the qualifying supply, the property was capital property of the supplier and the property is being acquired by the recipient for use as capital property of the recipient, the recipient is deemed to have so acquired the property for use exclusively in the course of commercial activities of the recipient;if, despite this subsection, tax would not have been payable by the recipient in respect of a supply of property made under the agreement for the qualifying supply, the property was capital property of the supplier and the property is being acquired by the recipient for use as capital property of the recipient, the recipient is deemed to have so acquired the property for use exclusively in activities of the recipient that are not commercial activities; andif the recipient acquires under the agreement for the qualifying supply property of the supplier that was used by the supplier immediately before that time otherwise than as capital property of the supplier and, in the absence of this paragraph, tax would have been payable by the recipient in respect of the supply of the property, the recipient is deemed to have acquired the property for consumption, use or supply in the course of commercial activities and otherwise than as capital property of the recipient.Basic tax contentFor the purposes of this Part, if a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply and, under the agreement for the qualifying supply, the supplier makes a supply of property that is, immediately before the time the qualifying supply is made, capital property of the supplier and, by reason of subsection (3), no tax is payable in respect of the supply of the property, the basic tax content of the property of the recipient at any time shall be determined by applying the following rules:if the last acquisition of the property by the recipient is the acquisition by the recipient at the time the qualifying supply is made, any reference in paragraphs (a) and (b) of the definition basic tax content in subsection 123(1) to the last acquisition or importation of the property by the person shall be read as a reference to the last acquisition or importation of the property by the supplier and not the acquisition by the recipient at the time the qualifying supply is made;if the last supply to the recipient of the property is the supply to the recipient at the time the qualifying supply is made, the reference in paragraph (a) of the definition basic tax content in subsection 123(1) to the last supply of the property to the person shall be read as a reference to the last supply of the property to the supplier and not the supply to the recipient at the time the qualifying supply is made; andif, at any particular time on or after the last acquisition or importation of the property by the supplier and before the time the qualifying supply is made, the property is acquired, imported or brought into a participating province or an improvement to the property is acquired, imported or brought into a participating province, any reference in paragraphs (a) and (b) of the definition basic tax content in subsection 123(1) toany acquisition, importation or bringing into a participating province of the property at that particular time or any acquisition, importation or bringing into a participating province of an improvement to the property at that particular time (in this paragraph referred to as the “actions”) by the person shall be read as a reference to actions by the supplier and not actions by the recipient,any tax that was payable, that would have been or would have become payable, that became payable or that had been payable by the person in respect of those actions at that particular time shall be read as a reference to tax that was payable, that would have been or would have become payable, that became payable or that had been payable by the supplier and not by the recipient,the person in respect of those actions at that particular time, or in respect of a particular status of the person at that particular time, shall be read as a reference to the supplier and not to the recipient,any tax that the person was exempt from paying in respect of those actions at that particular time shall be read as a reference to tax that the supplier, and not the recipient, was exempt from paying,the person’s percentage for a participating province determined for the purposes of subsection 225.2(2) for the person’s taxation year that includes the time that an amount of tax became payable, or would have become payable by the person while the person was a selected listed financial institution, shall be read as a reference to the supplier’s percentage for a participating province determined for the purposes of subsection 225.2(2) for the supplier’s taxation year that includes the time that an amount of tax became payable, or would have become payable while the supplier was a selected listed financial institution, andall amounts that the person was, or would have been, entitled to recover by way of rebate, refund, remission or otherwise in respect of those actions at that particular time shall be read as a reference to all amounts that the supplier, and not the recipient, was, or would have been, entitled to recover by way of rebate, refund, remission or otherwise in respect of those actions.Adjustment to net taxFor the purposes of this Part, if a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply made before November 17, 2005 under an agreement for the qualifying supply and tax is paid by the recipient in respect of property or a service supplied under the agreement for the qualifying supply despite no tax being payable in respect of that supply as a result of subsection (3), the tax is deemed, except for the purposes of subsection (4) and despite subsection (3), to have been payable by the recipient in respect of the supply of the property or service and, in determining the net tax for the particular reporting period of the recipient in which the election is filed with the Minister, the recipient may deduct in determining the net tax of the recipient for the particular reporting period the total of all amounts each of which is an amount determined by the formulaA - BwhereAis the amount of tax paid, despite no tax being payable as a result of subsection (3), by the recipient in respect of the supply of the property or service made under the agreement for the qualifying supply; andB is the total ofall amounts each of which is an input tax credit that the recipient was entitled to claim in respect of the property or service supplied under the agreement for the qualifying supply,all amounts each of which is an amount (other than an amount determined under this subsection) that may be deducted by the recipient under this Part in determining the net tax of the recipient for a reporting period in respect of the property or service supplied under the agreement for the qualifying supply, andall amounts (other than amounts referred to in paragraphs (a) and (b)) in respect of the tax paid that may be otherwise recovered by way of rebate, refund, remission or otherwise by the recipient in respect of the property or service supplied under the agreement for the qualifying supply.Limitation period where electionIf a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply, section 298 applies to any assessment, reassessment or additional assessment of an amount payable by the recipient in respect of a supply of property or a service made under the agreement for the qualifying supply, but the Minister has until the day that is four years after the later of the day on which the election under subsection (2) is filed with the Minister and the day on which the qualifying supply is made, to make any assessment, reassessment or additional assessment solely for the purpose of taking into account any tax, net tax or any other amount payable by the recipient or remittable by the supplier in respect of a supply of property or a service made under the agreement for the qualifying supply.Validity of electionA joint election referred to in subsection (2) made by a supplier and a recipient in respect of a qualifying supply is valid only ifthe recipient files the election with the Minister in prescribed form containing prescribed information not later than the particular day that is the latest ofif the recipient isa registrant at the time the qualifying supply is made, the day on or before which the return under Division V is required to be filed for the recipient’s reporting period in which tax would, in the absence of this section, have become payable in respect of the supply of property or service made under the agreement for the qualifying supply, ornot a registrant at the time the qualifying supply is made, the day that is one month after the end of the recipient’s reporting period in which tax would, in the absence of this section, have become payable in respect of the supply of property or service made under the agreement for the qualifying supply,the day that is one year after the day on which the Act enacting this section receives royal assent, andthe day that the Minister may determine on application of the recipient;the qualifying supply is made on or before the day that is one year after the day on which the recipient received for the first time a qualifying supply in respect of which an election under subsection (2) has been made; andon or before the day on which the election referred to in subsection (2) is filed in respect of the qualifying supply, the recipient has not made an election under subsection 167(1.1) in respect of the qualifying supply.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2007, c. 18, s. 9.
Supplies to non-resident persons of admissions to conventionsIf a sponsor of a convention makes a taxable supply of an admission to the convention to a non-resident person, the following shall not be included in calculating the tax payable in respect of the supply:that portion of the consideration for the admission that is reasonably attributable to the provision of the convention facility or related convention supplies other than property or services that are food or beverages or are supplied under a contract for catering; and50% of that portion of the consideration for the admission that is reasonably attributable to the provision of related convention supplies that are food or beverages or are supplied under a contract for catering.Supplies to non-resident exhibitorsWhere a sponsor of a convention makes a taxable supply by way of lease, licence or similar arrangement to a non-resident person of real property that is acquired by the person exclusively for use as a site for the promotion, at the convention, of property or services supplied by, or of a business of, the person, no tax is payable in respect of that supply to the person or in respect of any supply by the sponsor to the person of property or services that are acquired by the person for consumption or use as related convention supplies in respect of the convention.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 34;
2000, c. 30, s. 27.
When Tax PayableGeneral ruleTax under this Division in respect of a taxable supply is payable by the recipient on the earlier of the day the consideration for the supply is paid and the day the consideration for the supply becomes due.Partial considerationNotwithstanding subsection (1), where consideration for a taxable supply is paid or becomes due on more than one day,tax under this Division in respect of the supply is payable on each day that is the earlier of the day a part of the consideration is paid and the day that part becomes due; andthe tax that is payable on each such day shall be calculated on the value of the part of the consideration that is paid or becomes due, as the case may be, on that day.Supply completedNotwithstanding subsections (1) and (2), where all or any part of the consideration for a taxable supply has not been paid or become due on or before the last day of the calendar month immediately following the first calendar month in whichwhere the supply is of tangible personal property by way of sale, other than a supply described in paragraph (b) or (c), the ownership or possession of the property is transferred to the recipient,where the supply is of tangible personal property by way of sale under which the supplier delivers the property to the recipient on approval, consignment, sale-or-return basis or other similar terms, the recipient acquires ownership of the property or makes a supply of it to any person, other than the supplier, orwhere the supply is under an agreement in writing for the construction, renovation or alteration of, or repair to,any real property, orany ship or other marine vessel, and it may reasonably be expected that the construction, renovation, alteration or repair will require more than three months to complete,the construction, renovation, alteration or repair is substantially completed,tax under this Division in respect of the supply, calculated on the value of that consideration or part, as the case may be, is payable on that day.Continuous suppliesSubsection (3) does not apply in respect of a supply of water, electricity, natural gas, steam or any other property where the property is delivered or made available to the recipient on a continuous basis by means of a wire, pipeline or other conduit and the supplier invoices the recipient in respect of that supply on a regular or periodic basis.Sale of real propertyNotwithstanding subsections (1) and (2), tax under this Division in respect of a taxable supply of real property by way of sale is payablein the case of a supply of a residential condominium unit where possession of the unit is transferred, after 1990 and before the condominium complex in which the unit is situated is registered as a condominium, to the recipient under the agreement for the supply, on the earlier of the day ownership of the unit is transferred to the recipient and the day that is sixty days after the day the condominium complex is registered as a condominium; andin any other case, on the earlier of the day ownership of the property is transferred to the recipient and the day possession of the property is transferred to the recipient under the agreement for the supply.Value not ascertainableWhere under subsection (3) or (5) tax is payable on a day and the value of the consideration, or any part thereof, for the taxable supply is not ascertainable on that day,tax calculated on the value of the consideration or part, as the case may be, that is ascertainable on that day is payable on that day; andtax calculated on the value of the consideration or part, as the case may be, that is not ascertainable on that day is payable on the day the value becomes ascertainable.Retention of considerationNotwithstanding subsections (1), (2), (3), (5) and (6), where the recipient of a taxable supply retains, pursuant toan Act of Parliament or of the legislature of a province, oran agreement in writing for the construction, renovation or alteration of, or repair to, any real property or any ship or other marine vessel,a part of the consideration for the supply pending full and satisfactory performance of the supply, or any part thereof, tax under this Division, calculated on the value of that part of the consideration, is payable on the earlier of the day that part is paid and the day it becomes payable.Combined supplyFor the purposes of this section, where a supply of any combination of service, personal property or real property (each of which is in this subsection referred to as an “element”) is made and the consideration for each element is not separately identified,where the value of a particular element can reasonably be regarded as exceeding the value of each of the other elements, the supply of all of the elements shall be deemed to be a supply only of the particular element; andin any other case, the supply of all of the elements shall be deemedwhere one of the elements is real property, to be a supply only of real property, andin any other case, to be a supply only of a service.DepositsFor the purposes of this section, a deposit (other than a deposit in respect of a covering or container in respect of which section 137 applies), whether refundable or not, given in respect of a supply shall not be considered as consideration paid for the supply unless and until the supplier applies the deposit as consideration for the supply.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
Input Tax CreditsGeneral rule for creditsSubject to this Part, where a person acquires or imports property or a service or brings it into a participating province and, during a reporting period of the person during which the person is a registrant, tax in respect of the supply, importation or bringing in becomes payable by the person or is paid by the person without having become payable, the amount determined by the following formula is an input tax credit of the person in respect of the property or service for the period:A × BwhereAis the tax in respect of the supply, importation or bringing in, as the case may be, that becomes payable by the person during the reporting period or that is paid by the person during the period without having become payable; andBiswhere the tax is deemed under subsection 202(4) to have been paid in respect of the property on the last day of a taxation year of the person, the extent (expressed as a percentage of the total use of the property in the course of commercial activities and businesses of the person during that taxation year) to which the person used the property in the course of commercial activities of the person during that taxation year,where the property or service is acquired, imported or brought into the province, as the case may be, by the person for use in improving capital property of the person, the extent (expressed as a percentage) to which the person was using the capital property in the course of commercial activities of the person immediately after the capital property or a portion thereof was last acquired or imported by the person, andin any other case, the extent (expressed as a percentage) to which the person acquired or imported the property or service or brought it into the participating province, as the case may be, for consumption, use or supply in the course of commercial activities of the person.Determining credit for improvementWhere a person acquires or imports property or a service or brings it into a participating province partly for use in improving capital property of the person and partly for another purpose, for the purpose of determining an input tax credit of the person in respect of the property or service,notwithstanding section 138, that part of the property or service that is for use in improving the capital property and the remaining part of the property or service are each deemed to be a separate property or service that does not form part of the other;the tax payable in respect of the supply, importation or bringing in, as the case may be, of that part of the property or service that is for use in improving the capital property is deemed to be equal to the amount determined by the formulaA × BwhereAis the tax payable (in this section referred to as the “total tax payable”) by the person in respect of the supply, importation or bringing in, as the case may be, of the property or service, determined without reference to this section, andBis the extent (expressed as a percentage) to which the total consideration paid or payable by the person for the supply in Canada of the property or service or the value of the imported goods or the property brought in is or would be, if the person were a taxpayer under the Income Tax Act, included in determining the adjusted cost base to the person of the capital property for the purposes of that Act; andthe tax payable in respect of that part of the property or service that is not for use in improving the capital property is deemed to be equal to the difference between the total tax payable and the amount determined under paragraph (b).[Repealed, 1997, c. 10, s. 161]Credit for goods imported to provide commercial serviceSubject to this Part, where a registrant imports goods of a non-resident person who is not registered under Subdivision d of Division V for the purpose of making a taxable supply to the non-resident person of a commercial service in respect of the goods and, during a reporting period of the registrant, tax in respect of the importation becomes payable by the registrant or is paid by the registrant without having become payable, the input tax credit of the registrant in respect of the goods for the reporting period is an amount equal to that tax.Restricted credit for selected listed financial institutionsNo amount shall be included in determining an input tax credit of a person in respect of tax that becomes payable by the person under subsection 165(2) or section 212.1 while the person is a selected listed financial institution unlessthe input tax credit is in respect oftax that the person is deemed to have paid under subsection 171(1), 171.1(2), 206(2) or (3) or 208(2) or (3), oran amount of tax that is prescribed for the purposes of paragraph (a) of the description of F in subsection 225.2(2);the person is permitted to claim the input tax credit under subsection 193(1) or (2); orthe amount is a prescribed amount.Required documentationA registrant may not claim an input tax credit for a reporting period unless, before filing the return in which the credit is claimed,the registrant has obtained sufficient evidence in such form containing such information as will enable the amount of the input tax credit to be determined, including any such information as may be prescribed; andwhere the credit is in respect of property or a service supplied to the registrant in circumstances in which the registrant is required to report the tax payable in respect of the supply in a return filed with the Minister under this Part, the registrant has so reported the tax in a return filed under this Part.ExemptionWhere the Minister is satisfied that there are or will be sufficient records available to establish the particulars of any supply or importation or of any supply or importation of a specified class and the tax in respect of the supply or importation paid or payable under this Part, the Minister mayexempt a specified registrant, a specified class of registrants or registrants generally from any of the requirements of subsection (4) in respect of that supply or importation or a supply or importation of that class; andspecify terms and conditions of the exemption.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 35;
1997, c. 10, ss. 19, 161;
2000, c. 30, s. 28;
2009, c. 32, s. 5.
Previous VersionRestrictionIn determining an input tax credit of a registrant, no amount shall be included in respect of the tax payable by the registrant in respect ofa supply of a membership, or a right to acquire a membership, in a club the main purpose of which is to provide dining, recreational or sporting facilities, except where the registrant acquires the membership or right, as the case may be, exclusively for supply in the ordinary course of a business of the registrant of supplying such memberships or rights;a supply, importation or bringing into a participating province of property or a service that is acquired, imported or brought in by the registrant for consumption or use by the registrant (or, where the registrant is a partnership, an individual who is a member of the partnership) in relation to any part (in this paragraph referred to as the “work space”) of a self-contained domestic establishment in which the registrant or the individual, as the case may be, resides unless the work spaceis the principal place of business of the registrant, oris used exclusively for the purpose of earning income from a business and is used on a regular and continuous basis for meeting clients, customers or patients of the registrant in respect of the business;a supply, importation or bringing into a participating province of property or a service that is acquired, imported or brought in by the registrant at any time in or before a reporting period of the registrant exclusively for the personal consumption, use or enjoyment (in this paragraph referred to as the “benefit”) in that period of a particular individual who was, is or agrees to become an officer or employee of the registrant, or of another individual related to the particular individual, except wherethe registrant makes a taxable supply of the property or service to the particular individual or the other individual for consideration that becomes due in that period and that is equal to the fair market value of the property or service at the time the consideration becomes due, orif no amount were payable by the particular individual for the benefit, no amount would be included under section 6 of the Income Tax Act in respect of the benefit in computing the income of the particular individual for the purposes of that Act; anda supply made in or before a reporting period of the registrant of property, by way of lease, licence or similar arrangement, primarily for the personal consumption, use or enjoyment in that period ofwhere the registrant is an individual, the registrant or another individual related to the registrant,where the registrant is a partnership, an individual who is a member of the partnership or another individual who is an employee, officer or shareholder of, or related to, a member of the partnership,where the registrant is a corporation, an individual who is a shareholder of the corporation or another individual related to the shareholder, andwhere the registrant is a trust, an individual who is a beneficiary of the trust or another individual related to the beneficiary,except where the registrant makes a taxable supply of the property in that period to such an individual for consideration that becomes due in that period and that is equal to the fair market value of the supply at the time the consideration becomes due.Further restrictionIn determining an input tax credit of a registrant, no amount shall be included in respect of the tax payable by the registrant in respect of property or a service acquired, imported or brought into a participating province by the registrant, except to the extent thatthe consumption or use of property or services of such quality, nature or cost is reasonable in the circumstances, having regard to the nature of the commercial activities of the registrant; andthe amount is calculated on consideration for the property or service or on a value of the property that is reasonable in the circumstances.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 36;
1997, c. 10, ss. 20, 162.
Special CasesBecoming and Ceasing to be RegistrantPerson becoming registrantWhere at any time a person becomes a registrant and immediately before that time the person was a small supplier, for the purpose of determining an input tax credit of the person, the person shall be deemedto have received, at that time, a supply by way of sale of each property of the person that was held immediately before that time for consumption, use or supply in the course of commercial activities of the person; andto have paid, at that time, tax in respect of the supply equal to the basic tax content of the property at that time.Services and rental propertySubject to this Division, where at any time a person becomes a registrant, in determining the input tax credits of the person for the first reporting period of the person ending after that time,there may be included the total of any tax that became payable by the person before that time, to the extent that the tax was payable in respect of services to be supplied to the person after that time for consumption, use or supply in the course of commercial activities of the person or was calculated on the value of consideration that is a rent, royalty or similar payment attributable to a period after that time in respect of property that is used in the course of commercial activities of the person; andthere shall not be included any tax that becomes payable by the person after that time, to the extent that the tax is payable in respect of services supplied to the person before that time or is calculated on the value of consideration that is a rent, royalty or similar payment attributable to a period before that time.Properties on ceasing to be registrantFor the purposes of this Part, where a person ceases at any time to be a registrant,the person shall be deemedto have made, immediately before that time, a supply of each property of the person (other than capital property) that immediately before that time was held by the person for consumption, use or supply in the course of commercial activities of the person and to have collected, immediately before that time, tax in respect of the supply, calculated on the fair market value of the property at that time, andto have received, at that time, a supply of the property by way of sale and to have paid, at that time, tax in respect of the supply equal to the amount determined under subparagraph (i); andwhere the person was, immediately before that time, using capital property of the person in commercial activities of the person, the person shall be deemed to have, immediately before that time, ceased using the property in commercial activities.Services and rental propertiesWhere a person who engages in commercial activities ceases at any time to be a registrant,in determining the input tax credits of the person for the last reporting period of the person beginning before that time, there may be included the total of any tax that becomes payable by the person after that time, to the extent that the tax is payable in respect of services that were supplied to the person before that time for consumption, use or supply in the course of commercial activities of the person or is calculated on the value of consideration that is a rent, royalty or similar payment attributable to a period before that time in respect of property that is used in the course of commercial activities of the person; andin determining the net tax of the person for the last reporting period of the person beginning before that time, there shall be added to the total for A in the formula set out in subsection 225(1) any input tax credit claimed by the person before that time, to the extent that it relates to services to be supplied to the person after that time or to the value of consideration that is a rent, royalty or similar payment attributable to a period after that time.ExceptionSubsections (1) to (4) do not apply where section 171.1 applies and subsection (3) does not apply to property held by a person immediately before the person ceases to be a registrant where subsection 178.3(1), 178.4(1) or 178.5(1) or (2) applied to that property at an earlier time.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 37;
1997, c. 10, s. 163.
Taxi BusinessesSmall suppliersWhere at any time a person who is a small supplier is engaged in a taxi business and other commercial activities in Canada, other than the supply by way of sale of real property, and the registration of the person under this Part does not apply to those other activities,the person shall be deemed, for the purposes of this Part, not to be a registrant at that time except in respect of that business and anything done by the person in the course of that business or in connection with it; andfor the purposes of section 169 and Subdivision d, those other activities shall be deemed not to be commercial activities of the person at that time.Becoming a registrant for other activitiesWhere at any time a person is engaged in a taxi business and other commercial activities in Canada, other than the supply by way of sale of real property, and the person’s registration under this Part begins, at that time, to apply to those other activities, the following rules apply:for the purpose of determining an input tax credit of the person, the person is deemed to have received, at that time, a supply by way of sale of each property of the person, other than capital property, that was held immediately before that time for consumption, use or supply in the course of those other activities and to have paid, at that time, tax in respect of the supply equal to the basic tax content of the property at that time; andfor the purpose of determining the input tax credits of the person for the reporting period that includes that time, there may be included the total of any tax that became payable by the person before that time, to the extent that the tax is calculated on consideration, or a part thereof,that is reasonably attributable to a service that is to be rendered to the person after that time and that was acquired by the person for consumption, use or supply in the course of those other activities, orthat is a rent, royalty or similar payment in respect of property and that is reasonably attributable to a period after that time during which the property is used in the course of those other activities.Ceasing to be a registrant for other activitiesWhere at any time a person is engaged in a taxi business and other commercial activities in Canada, other than the supply by way of sale of real property, and the person’s registration under this Part ceases, at that time, to apply to those other activities, the following rules apply:for the purposes of this Part, the person shall be deemedto have made, immediately before that time, a supply of each property of the person, other than capital property, that was held immediately before that time for consumption, use or supply in the course of those other activities, and to have collected, immediately before that time, tax in respect of the supply calculated on the fair market value of the property at that time, andto have received, at that time, a supply of the property by way of sale and to have paid, at that time, tax in respect of the supply equal to the amount determined under subparagraph (i);in determining the input tax credits of the person for the reporting period that includes that time, there may be included tax that becomes payable by the person after that time, to the extent that the tax is calculated on consideration, or a part thereof,that is reasonably attributable to services that were rendered to the person before that time and that were acquired by the person for consumption, use or supply in the course of those other activities, orthat is a rent, royalty or similar payment in respect of property and that is reasonably attributable to a period before that time during which the property was used in the course of those other activities; andwhere, in determining an input tax credit claimed by the person in a return under section 238 for a reporting period of the person ending before that time, there was included an amount in respect of tax calculated on consideration, or a part thereof,that is reasonably attributable to services that are to be rendered to the person after that time, orthat is a rent, royalty or similar payment in respect of property and that is reasonably attributable to a period (in this paragraph referred to as the “lease period”) after that time,the amount shall be added in determining the net tax for the reporting period of the person that includes that time, to the extent to which the property is used by the person during the lease period, or the services were acquired by the person for consumption, use or supply, in the course of those other activities.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 38;
1997, c. 10, s. 164.
Appropriation of PropertyUse by registrantFor the purposes of this Part, where a registrant who is an individual and who has, in the course of commercial activities of the registrant, acquired, manufactured or produced any property (other than capital property of the registrant) or acquired or performed any service appropriates the property or service, at any time, for the personal use, consumption or enjoyment of the registrant or another individual related to the registrant, the registrant shall be deemedto have made a supply of the property or service for consideration paid at that time equal to the fair market value of the property or service at that time; andexcept where the supply is an exempt supply, to have collected, at that time, tax in respect of the supply, calculated on that consideration.Benefits to shareholders, etc.For the purposes of this Part, where at any time a registrant that is a corporation, partnership, trust, charity, public institution or non-profit organization appropriates any property (other than capital property of the registrant) that was acquired, manufactured or produced, or any service acquired or performed, in the course of commercial activities of the registrant, to or for the benefit of a shareholder, partner, beneficiary or member of the registrant or any individual related to such a shareholder, partner, beneficiary or member, in any manner whatever (otherwise than by way of a supply made for consideration equal to the fair market value of the property or service), the registrant is deemedto have made a supply of the property or service for consideration paid at that time equal to the fair market value of the property or service at that time; andexcept where the supply is an exempt supply, to have collected, at that time, tax in respect of the supply, calculated on that consideration.ApplicationThis section does not apply to property or a service appropriated by a registrant to or for the benefit of a person wherethe registrant was, because of section 170, not entitled to claim an input tax credit in respect of the last acquisition or importation of the property or service by the registrant; orsection 173 applies to the property or service so appropriated for the purpose of making it available to the person.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 39;
1997, c. 10, s. 21.
Pension PlansDefinitionsThe following definitions apply in this section.active memberparticipant actifactive member has the meaning assigned by subsection 8500(1) of the Income Tax Regulations.employer resourceressource d’employeuremployer resource of a person meansall or part of a labour activity of the person, other than the part of the labour activity consumed or used by the person in the process of creating, developing or bringing into existence property;all or part of property or a service supplied to the person, other than the part of the property or service consumed or used by the person in the process of creating, developing or bringing into existence property;all or part of property created, developed or brought into existence by the person; orany combination of the items referred to in paragraphs (a) to (c).excluded activityactivité exclueexcluded activity, in respect of a pension plan, means an activity undertaken exclusively forcompliance by a participating employer of the pension plan as an issuer, or prospective issuer, of securities with reporting requirements under a law of Canada or of a province in respect of the regulation of securities;evaluating the feasibility or financial impact on a participating employer of the pension plan of establishing, altering or winding-up the pension plan, other than an activity that relates to the preparation of an actuarial report in respect of the plan required under a law of Canada or of a province;evaluating the financial impact of the pension plan on the assets and liabilities of a participating employer of the pension plan;negotiating changes to the benefits under the pension plan with a union or similar organization of employees; orprescribed purposes.labour activityactivité de main-d’oeuvrelabour activity of a person means anything done by an individual who is or agrees to become an employee of the person in the course of, or in relation to, the office or employment of that individual.participating employeremployeur participantparticipating employer of a pension plan means an employer that has made, or is required to make, contributions to the pension plan in respect of the employer’s employees or former employees, or payments under the pension plan to the employer’s employees or former employees, and includes an employer prescribed for the purposes of the definition participating employer in subsection 147.1(1) of the Income Tax Act.pension activityactivité de pensionpension activity, in respect of a pension plan, means an activity (other than an excluded activity) that relates tothe establishment, management or administration of the pension plan or a pension entity of the pension plan; orthe management or administration of assets in respect of the pension plan.pension entityentité de gestionpension entity of a pension plan means a person in respect of the pension plan that isa person referred to in paragraph (a) of the definition pension plan;a corporation referred to in paragraph (b) of that definition; ora prescribed person.pension planrégime de pensionpension plan means a registered pension plan (as defined in subsection 248(1) of the Income Tax Act) that governs a person that is a trust or that is deemed to be a trust for the purposes of that Act;in respect of which a corporation isincorporated and operated eithersolely for the administration of the registered pension plan, orfor the administration of the registered pension plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement (as defined in subsection 248(1) of that Act), where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the registered pension plan, andaccepted by the Minister, under subparagraph 149(1)(o.1)(ii) of that Act, as a funding medium for the purpose of the registration of the registered pension plan; orin respect of which a person is prescribed for the purposes of the definition pension entity.provincial factorfacteur provincialprovincial factor in respect of a pension plan and a participating province, for a fiscal year of a person that is a participating employer of the pension plan, means the amount (expressed as a percentage) determined by the formulaA × BwhereAis the tax rate for the participating province on the last day of the fiscal year; andBisif the person made contributions to the pension plan during the fiscal year that may be deducted by the person under paragraph 20(1)(q) of the Income Tax Act in computing its income (in this paragraph referred to as “pension contributions”) and the number of active members of the pension plan who were employees of the person on the particular day that is the last day of the last calendar year ending on or before the last day of the fiscal year is greater than zero, the amount determined by the formula[(C/D) + (E/F)]/2whereCis the total of all pension contributions made to the pension plan by the person during the fiscal year in respect of employees of the person who were resident in the participating province on the particular day,Dis the total of all pension contributions made to the pension plan by the person during the fiscal year in respect of employees of the person,Eis the number of active members of the pension plan who were, on the particular day, employees of the person and resident in the participating province, andFis the number of active members of the pension plan who were, on the particular day, employees of the person;if paragraph (a) does not apply and the number of active members of the pension plan who were employees of the person on the particular day that is the last day of the last calendar year ending on or before the last day of the fiscal year is greater than zero, the amount determined by the formulaG/HwhereGis the number of active members of the pension plan who were, on the particular day, employees of the person and resident in the participating province, andHis the number of active members of the pension plan who were, on the particular day, employees of the person; orin any other case, zero.Excluded resourceFor the purposes of this section, property or a service that is supplied to a particular person that is a participating employer of a pension plan by another person is an excluded resource of the particular person in respect of the pension plan iffor each pension entity of the pension plan, no tax would become payable under this Part in respect of the supply ifthe supply were made by the other person to the pension entity and not to the particular person, andthe pension entity and the other person were dealing at arm’s length; andwhere the supply is a supply of tangible personal property made outside Canada, the supply would not be an imported taxable supply (as defined in section 217) if the particular person were a registrant not engaged exclusively in commercial activities.Time of acquisitionFor the purposes of this section, if, at a particular time, a supply of property described in paragraph 142(2)(a) or (b) is made to a person who is a participating employer of a pension plan and, at a later time, tax under section 212 becomes payable by the person in respect of the propertythe supply is deemed to have been made to the person at the later time and not at the particular time; andtax is deemed to have been payable in respect of the supply at the later time.Specified pension entityIf a person is a participating employer of a pension plan and the pension plan has,at all times in a fiscal year of the person, no more than one pension entity, that pension entity is the specified pension entity of the pension plan in respect of the person for the fiscal year; andin the fiscal year, two or more pension entities, the person and one of those pension entities may jointly elect, in prescribed form containing prescribed information, for that pension entity to be the specified pension entity of the pension plan in respect of the person for the fiscal year.Acquisition of property or a service for supplyIf a person that is a registrant and a participating employer of a pension plan acquires property or a service (in this subsection referred to as the “specified resource”) for the purpose of making a supply of all or part of the specified resource to a pension entity of the pension plan for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan and the specified resource is not an excluded resource of the person in respect of the pension plan, the following rules apply:for the purposes of this Part, the person is deemed to have made a taxable supply of the specified resource or part on the last day of the particular fiscal year of the person in which the person acquired the specified resource;for the purposes of this Part, tax in respect of the taxable supply is deemed to have become payable on the last day of the particular fiscal year and the person is deemed to have collected that tax on that day;for the purposes of this Part, the tax referred to in paragraph (b) is deemed to be equal to the amount determined by the formulaA + BwhereAis the amount determined by the formulaC × DwhereCis the fair market value of the specified resource or part at the time it was acquired by the person, andDis the rate set out in subsection 165(1), andBis the total of all amounts, each of which is determined for a participating province by the following formulaE × FwhereEis the fair market value of the specified resource or part at the time it was acquired by the person, andFis the provincial factor in respect of the pension plan and the participating province for the particular fiscal year; andfor the purpose of determining an input tax credit of the pension entity under this Part and for the purposes of sections 232.01, 232.02 and 261.01, the pension entity is deemedto have received a supply of the specified resource or part on the last day of the particular fiscal year,to have paid tax in respect of that supply on that day equal toif the pension entity is a selected listed financial institution on that day, the amount determined for A in the formula in paragraph (c) in determining the amount of tax under that paragraph, andin any other case, the amount of tax determined under paragraph (c), andto have acquired the specified resource or part for consumption, use or supply in the course of its commercial activities to the same extent that the specified resource or part was acquired by the person for the purpose of making a supply of the specified resource or part to the pension entity for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan that are commercial activities of the pension entity.Consumption or use of employer resource for supplyIf a person is both a registrant and a participating employer of a pension plan at any time in a particular fiscal year of the person, the person consumes or uses at that time an employer resource of the person for the purpose of making a supply of property or a service (in this subsection referred to as the “pension supply”) to a pension entity of the pension plan for consumption, use or supply by the pension entity in the course of pension activities in respect of the pension plan, and the employer resource is not an excluded resource of the person in respect of the pension plan, the following rules apply:for the purposes of this Part, the person is deemed to have made a taxable supply of the employer resource (in this subsection referred to as the “employer resource supply”) on the last day of the particular fiscal year;for the purposes of this Part, tax in respect of the employer resource supply is deemed to have become payable on the last day of the particular fiscal year and the person is deemed to have collected that tax on that day;for the purposes of this Part, the tax referred to in paragraph (b) is deemed to be equal to the amount determined by the formulaA + BwhereAis the amount determined by the formulaC × DwhereCisif the employer resource was consumed by the person during the particular fiscal year for the purpose of making the pension supply, the product obtained when the fair market value of the employer resource at the time the person began consuming it in the particular fiscal year is multiplied by the extent to which that consumption (expressed as a percentage of the total consumption of the employer resource by the person during the particular fiscal year) occurred when the person was both a registrant and a participating employer of the pension plan, orotherwise, the product obtained when the fair market value of the use of the employer resource during the particular fiscal year as determined on the last day of the particular fiscal year is multiplied by the extent to which the employer resource was used during the particular fiscal year (expressed as a percentage of the total use of the employer resource by the person during the particular fiscal year) for the purpose of making the pension supply when the person was both a registrant and a participating employer of the pension plan, andDis the rate set out in subsection 165(1), andBis the total of all amounts, each of which is determined for a participating province by the following formulaE × FwhereEis the amount determined for C, andFis the provincial factor in respect of the pension plan and the participating province for the particular fiscal year; andfor the purpose of determining an input tax credit of the pension entity under this Part and for the purposes of sections 232.01, 232.02 and 261.01, the pension entity is deemedto have received a supply of the employer resource on the last day of the particular fiscal year,to have paid tax in respect of that supply on that day equal toif the pension entity is a selected listed financial institution on that day, the amount determined for A in the formula in paragraph (c) in determining the amount of tax under that paragraph, andin any other case, the amount of tax determined under paragraph (c), andto have acquired the employer resource for consumption, use or supply in the course of its commercial activities to the same extent that the property or service supplied in the pension supply was acquired by the pension entity for consumption, use or supply by the pension entity in pension activities in respect of the pension plan that are commercial activities of the pension entity.Consumption or use of employer resource otherwise than for supplyIf a person is both a registrant and a participating employer of a pension plan at any time in a particular fiscal year of the person, the person consumes or uses at that time an employer resource of the person in the course of pension activities in respect of the pension plan, the employer resource is not an excluded resource of the person in respect of the pension plan, and subsection (6) does not apply to that consumption or use, the following rules apply:for the purposes of this Part, the person is deemed to have made a taxable supply of the employer resource (in this subsection referred to as the “employer resource supply”) on the last day of the particular fiscal year;for the purposes of this Part, tax in respect of the employer resource supply is deemed to have become payable on the last day of the particular fiscal year and the person is deemed to have collected that tax on that day;for the purposes of this Part, the tax referred to in paragraph (b) is deemed to be equal to the amount determined by the formulaA + BwhereAis the amount determined by the formulaC × DwhereCisif the employer resource was consumed by the person during the particular fiscal year in the course of pension activities in respect of the pension plan, the product obtained when the fair market value of the employer resource at the time the person began consuming it in the particular fiscal year is multiplied by the extent to which that consumption (expressed as a percentage of the total consumption of the employer resource by the person during the particular fiscal year) occurred when the person was both a registrant and a participating employer of the pension plan, orotherwise, the product obtained when the fair market value of the use of the employer resource during the particular fiscal year as determined on the last day of the particular fiscal year is multiplied by the extent to which the employer resource was used during the particular fiscal year (expressed as a percentage of the total use of the employer resource by the person during the particular fiscal year) in the course of pension activities in respect of the pension plan when the person was both a registrant and a participating employer of the pension plan, andDis the rate set out in subsection 165(1), andBis the total of all amounts, each of which is determined for a participating province by the following formulaE × FwhereEis the amount determined for C, andFis the provincial factor in respect of the pension plan and the participating province for the particular fiscal year; andfor the purposes of determining, under section 261.01, an eligible amount of the specified pension entity of the pension plan in respect of the person for the particular fiscal year, the specified pension entity is deemed to have paid tax on the last day of the particular fiscal year equal toif the specified pension entity is a selected listed financial institution on that day, the amount determined for A in the formula in paragraph (c) in determining the amount of tax under that paragraph, andin any other case, the amount of tax determined under paragraph (c).Provision of information to pension entityIf subsection (5), (6) or (7) applies in respect of a person that is a participating employer of a pension plan, the person shall, in prescribed form and in a manner satisfactory to the Minister, provide prescribed information to the pension entity of the pension plan that is deemed to have paid tax under that subsection.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2010, c. 12, s. 58.
Taxable BenefitsEmployee and shareholder benefitsWhere a registrant makes a supply (other than an exempt or zero-rated supply) of property or a service to an individual or a person related to the individual andan amount (in this subsection referred to as the “benefit amount”) in respect of the supply is required under paragraph 6(1)(a), (e), (k) or (l) or subsection 15(1) of the Income Tax Act to be included in computing the individual’s income for a taxation year of the individual, orthe supply relates to the use or operation of an automobile and an amount (in this subsection referred to as a “reimbursement”) is paid by the individual or a person related to the individual that reduces the amount in respect of the supply that would otherwise be required under paragraph 6(1)(e), (k) or (l) or subsection 15(1) of that Act to be so included,the following rules apply:in the case of a supply of property otherwise than by way of sale, the use made by the registrant in so providing the property to the individual or person related to the individual is deemed, for the purposes of this Part, to be use in commercial activities of the registrant and, to the extent that the registrant acquired or imported the property or brought it into a participating province for the purpose of making that supply, the registrant is deemed, for the purposes of this Part, to have so acquired or imported the property or brought it into the province, as the case may be, for use in commercial activities of the registrant, andin any case, except wherethe registrant was, because of section 170, not entitled to claim an input tax credit in respect of the last acquisition, importation or bringing into a participating province of the property or service by the registrant,an election under subsection (2) by the registrant in respect of the property is in effect at the beginning of the taxation year,the registrant is an individual or a partnership and the property is a passenger vehicle or aircraft of the registrant that is not used by the registrant exclusively in commercial activities of the registrant, orthe registrant is not an individual, a partnership or a financial institution and the property is a passenger vehicle or aircraft of the registrant that is not used by the registrant primarily in commercial activities of the registrant,for the purpose of determining the net tax of the registrant,the total of the benefit amount and all reimbursements is deemed to be the total consideration payable in respect of the provision during the year of the property or service to the individual or person related to the individual,the tax calculated on the total consideration is deemed to be equal towhere the benefit amount is an amount that is or would, if the individual were an employee of the registrant and no reimbursements were paid, be required under paragraph 6(1)(k) or (l) of the Income Tax Act to be included in computing the individual’s income, the prescribed percentage of the total consideration, andin any other case, the amount determined by the formula(A/B) × CwhereAiswherethe benefit amount is required to be included under paragraph 6(1)(a) or (e) of the Income Tax Act in computing the individual’s income from an office or employment and the last establishment of the employer at which the individual ordinarily worked or to which the individual ordinarily reported in the year in relation to that office or employment is located in a participating province, orthe benefit amount is required under subsection 15(1) of that Act to be included in computing the individual’s income and the individual is resident in a participating province at the end of the year,the total of 4% and the percentage determined in prescribed manner in respect of the participating province or, in the absence of a percentage determined in prescribed manner in respect of the participating province, the total of 4% and the tax rate for the participating province, andin any other case, 4%,Bis the total of 100% and the percentage determined for A, andCis the total consideration.that tax is deemed to have become collectible, and to have been collected, by the registrantexcept where clause (B) applies, on the last day of February of the year following the taxation year, andwhere the benefit amount is or would, if no reimbursements were paid, be required under subsection 15(1) of that Act to be included in computing the individual’s income and relates to the provision of the property or service in a taxation year of the registrant, on the last day of that taxation year.Election in respect of passenger vehicle or aircraftWherein a reporting period of a registrant other than a financial institution, the registrant acquires a passenger vehicle or aircraft by way of lease for use otherwise than primarily in commercial activities of the registrant or the registrant uses, otherwise than primarily in commercial activities of the registrant, a passenger vehicle or aircraft that was last acquired by the registrant by way of lease, orin a reporting period of a registrant that is a financial institution, the registrant acquires a passenger vehicle or aircraft by way of purchase or lease or uses a passenger vehicle or aircraft that was last so acquired by the registrant,the registrant may make an election under this subsection in respect of the vehicle or aircraft to take effect on the first day of that reporting period of the registrant.Effect of electionFor the purposes of this Part, where an election made by a registrant under subsection (2) in respect of property becomes effective on a day in a particular reporting period of the registrant,notwithstanding paragraph (1)(c), the registrant is deemed to have begun, on that day, to use the property exclusively in activities of the registrant that are not commercial activities and, at all times thereafter until the registrant next disposes of or ceases to lease the property, the registrant is deemed to use the property exclusively in activities of the registrant that are not commercial activities;where the property was last supplied to the registrant by way of lease,there shall not be included, in determining an input tax credit claimed by the registrant in the return under section 238 for the particular or any subsequent reporting period, tax calculated on consideration, or a part thereof, for that supply that is reasonably attributable to a period after that day, andwhere an amount in respect of any tax referred to in subparagraph (i) was included in determining an input tax credit claimed by the registrant in a return under section 238 for a reporting period ending before the particular reporting period, that amount shall be added in determining the net tax of the registrant for the particular reporting period;where the property was last supplied to the registrant by way of sale, the registrant is a financial institution and the cost of the property to the registrant did not exceed $50,000,there shall not be included, in determining an input tax credit claimed by the registrant in the return under section 238 for the particular or any subsequent reporting period, tax that is calculated on consideration or part thereof, for that supply or that is in respect of an improvement to the property acquired, imported or brought into a participating province by the registrant after the property was last so acquired, imported or brought in, as the case may be, andwhere an amount in respect of any tax referred to in subparagraph (i) was included in determining an input tax credit claimed by the registrant in a return under section 238 for a reporting period of the registrant ending before the particular reporting period, that amount shall be added in determining the net tax of the registrant for the particular reporting period; andthere shall not be included, in determining an input tax credit claimed by the registrant in the return under section 238 for the particular or any subsequent reporting period, tax calculated on an amount of consideration, or a value determined under section 215 or subsection 220.05(1), 220.06(1) or 220.07(1), that can reasonably be attributed toany property that is acquired, imported or brought into a participating province for consumption or use in operating the vehicle or aircraft in respect of which the election is made and that is, or is to be used, or consumed after that day, orthat portion of any service relating to the operation of that vehicle or aircraft that is, or is to be, rendered after that day; andwhere an amount in respect of any tax referred to in paragraph (d) was included in determining an input tax credit claimed by the registrant in a return under section 238 for a reporting period ending before the particular reporting period, that amount shall be added in determining the net tax of the registrant for the particular reporting period.Form of electionAn election made under subsection (2) shall be made in prescribed form containing prescribed information.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 40;
1994, c. 21, s. 126;
1997, c. 10, ss. 22, 165;
2006, c. 4, s. 4;
2007, c. 35, s. 185;
2009, c. 32, s. 6.
Previous VersionAllowances and ReimbursementsTravel and other allowancesFor the purposes of this Part, wherea person pays an allowanceto an employee of the person,where the person is a partnership, to a member of the partnership, orwhere the person is a charity or a public institution, to a volunteer who gives services to the charity or institutionforsupplies all or substantially all of which are taxable supplies (other than zero-rated supplies) of property or services acquired in Canada by the employee, member or volunteer in relation to activities engaged in by the person, orthe use in Canada, in relation to activities engaged in by the person, of a motor vehicle,an amount in respect of the allowance is deductible in computing the income of the person for a taxation year of the person for the purposes of the Income Tax Act, or would have been so deductible if the person were a taxpayer under that Act and the activity were a business, andin the case of an allowance to which subparagraph 6(1)(b)(v), (vi), (vii) or (vii.1) of that Act would applyif the allowance were a reasonable allowance for the purposes of that subparagraph, andwhere the person is a partnership and the allowance is paid to a member of the partnership, if the member were an employee of the partnership, or, where the person is a charity or a public institution and the allowance is paid to a volunteer, if the volunteer were an employee of the charity or institution,the person considered, at the time the allowance was paid, that the allowance would be a reasonable allowance for those purposes and it is reasonable for the person to have considered, at that time, that the allowance would be a reasonable allowance for those purposes,the following rules apply:the person is deemed to have received a supply of the property or service,any consumption or use of the property or service by the employee, member or volunteer is deemed to be consumption or use by the person and not by the employee, member or volunteer, andthe person is deemed to have paid, at the time the allowance is paid, tax in respect of the supply equal to the amount determined by the formulaA × (B/C)whereAis the amount of the allowance,Bisin prescribed circumstances relating to a participating province, the percentage determined in prescribed manner, andin any other case, the rate set out in subsection 165(1), andCis the total of 100% and the percentage determined for B.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 40;
1994, c. 9, s. 9;
1997, c. 10, ss. 23, 166;
2006, c. 4, s. 5;
2009, c. 32, s. 7.
Previous VersionEmployee, partner or volunteer reimbursementWhere an employee of an employer, a member of a partnership or a volunteer who gives services to a charity or public institution acquires or imports property or a service or brings it into a participating province for consumption or use in relation to activities of the employer, partnership, charity or public institution (each of which is referred to in this subsection as the “person”), the employee, member or volunteer paid the tax payable in respect of that acquisition, importation or bringing in and the person pays an amount to the employee, member or volunteer as a reimbursement in respect of the property or service, for the purposes of this Part,the person is deemed to have received a supply of the property or service;any consumption or use of the property or service by the employee, member or volunteer in relation to activities of the person is deemed to be consumption or use by the person and not by the employee, member or volunteer; andthe person is deemed to have paid, at the time the reimbursement is paid, tax in respect of the supply equal to the amount determined by the formulaA × BwhereAis the tax paid by the employee, member or volunteer in respect of the acquisition, importation or bringing into a particular province of the property or service by the employee, member or volunteer, andBis the lesser ofthe percentage of the cost to the employee, member or volunteer of the property or service that is reimbursed, andthe extent (expressed as a percentage) to which the property or service was acquired, imported or brought into the province, as the case may be, by the employee, member or volunteer for consumption or use in relation to activities of the person.ExceptionSubsection (1) does not apply to a reimbursement in respect of property or a service acquired, imported or brought into a participating province by a member of a partnership where paragraph 272.1(2)(b) applies to the acquisition, importation or bringing in, as the case may be, and the reimbursement is paid to the member after the member files with the Minister a return of the member under section 238 in which an input tax credit in respect of the property or service is claimed.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1994, c. 9, s. 9;
1997, c. 10, ss. 24, 167.
Warrantee reimbursementWherethe beneficiary of a warranty (other than an insurance policy) in respect of the quality, fitness or performance of tangible property acquires or imports property or a service or brings it into a participating province and tax is payable by the beneficiary in respect of the acquisition, importation or bringing in, anda registrant pays to the beneficiary, under the terms of the warranty, an amount as a reimbursement in respect of the property or service and therewith provides written indication that a portion of the amount is on account of tax,the following rules apply:the registrant may claim an input tax credit, for the reporting period of the registrant in which the reimbursement is paid, equal to the amount (referred to in this section as the “tax reimbursed”) determined by the formulaA × B/CwhereAis the tax payable by the beneficiary,Bis the amount of the reimbursement, andCis the cost to the beneficiary of the property or service, andwhere the beneficiary is a registrant who was entitled to claim an input tax credit, or a rebate under Division VI, in respect of the property or service, the beneficiary is deemed, for the purposes of this Part, to have made a taxable supply and to have collected, at the time the reimbursement is paid, tax in respect of the supply equal to the amount determined by the formulaA × B/CwhereAis the tax reimbursed,Bis the total of the input tax credits and rebates under Division VI that the beneficiary was entitled to claim in respect of the property or service, andCis the tax payable by the beneficiary in respect of the supply to, or importation by, the beneficiary of the property or service.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1997, c. 10, ss. 24, 168.
Used Returnable ContainersAcquisition of used returnable containersSubject to this Division, ifa registrant is the recipient of a supply made in Canada by way of sale of used tangible personal property (other than a returnable container as defined in subsection 226(1)) that is a usual covering or container of a class of coverings or containers in which property (other than property the supply of which is a zero-rated supply) is delivered,tax is not payable by the registrant in respect of the supply,the property is acquired for the purpose of consumption, use or supply in the course of commercial activities of the registrant, andthe registrant pays consideration for the supply that is not less than the total ofthe consideration that the registrant charges for supplies by the registrant of used coverings or containers of that class, andall tax calculated on that consideration,for the purposes of this Part, the registrant is deemed (except where section 167 applies to the supply) to have paid, at the time any amount is paid as consideration for the supply, tax in respect of the supply equal to the amount determined by the formula(A/B) × CwhereAisif the supply is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for that province, andin any other case, the rate set out in subsection 165(1),Bis the total of 100% and the percentage determined for A, andCis the amount paid as consideration for the supply.Consideration exceeding fair market valueFor the purposes of subsection (1), where a person makes a supply of used tangible personal property to a registrant with whom the person is not dealing at arm’s length for consideration that exceeds the fair market value of the property at the time ownership of the property is transferred to the registrant, the value of the consideration for the supply shall be deemed to be equal to the fair market value of the property at that time.[Repealed, 1997, c. 10, s. 25]
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 41;
1997, c. 10, ss. 25, 169;
2006, c. 4, s. 6;
2007, c. 18, s. 10.
Previous VersionAgentsSupply on behalf of person not required to collect taxWherea person (in this subsection referred to as the “principal”) makes a supply (other than an exempt or zero-rated supply) of tangible personal property to a recipient (otherwise than by auction),the principal is not required to collect tax in respect of the supply except as provided in this subsection, anda registrant (in this subsection referred to as the “agent”), in the course of a commercial activity of the agent, acts as agent in making the supply on behalf of the principal,the following rules apply:where the principal is a registrant and the property was last used, or acquired for consumption or use, by the principal in an endeavour of the principal, within the meaning of subsection 141.01(1), and the principal and agent jointly elect in writing, the supply of the property to the recipient is deemed to be a taxable supply for the following purposes:all purposes of this Part, other than determining whether the principal may claim an input tax credit in respect of property or services acquired or imported by the principal for consumption or use in making the supply to the recipient, andthe purpose of determining whether the principal may claim an input tax credit in respect of services supplied by the agent relating to the supply of the property to the recipient, andin any other case, the supply of the property to the recipient is deemed, for the purposes of this Part, to be a taxable supply made by the agent and not by the principal and the agent is deemed, for the purposes of this Part other than section 180, not to have made a supply to the principal of services relating to the supply of the property to the recipient.Election for agent to account for taxWhere a registrant, in the course of a commercial activity of the registrant, acts as agent in making a supply (otherwise than by auction) on behalf of a person who is required to collect tax in respect of the supply otherwise than as a consequence of the application of paragraph (1)(d) and the registrant and the person jointly elect in prescribed form containing prescribed information,the tax collectible in respect of the supply or any amount charged or collected by the registrant on behalf of the person as or on account of tax in respect of the supply is deemed to be collectible, charged or collected, as the case may be, by the registrant, and not by the person, for the purposes ofdetermining the net tax of the registrant and of the person, andapplying sections 222 and 232;the registrant and the person are jointly and severally, or solidarily, liable for all obligations under this Part that arise upon or as a consequence ofthe tax becoming collectible,a failure to account for or pay as and when required under this Part an amount of net tax of the registrant, or an amount required under section 230.1 to be paid by the registrant, that is reasonably attributable to the supply,the registrant claiming, in respect of the supply, an amount as a deduction under section 231 or 232 to which the registrant was not entitled or in excess of the amount to which the registrant was entitled,a failure to pay as and when required under this Part the amount of any underpayment of net tax by the registrant, or an amount required under section 230.1 to be paid by the registrant, that is reasonably attributable to a claim referred to in subparagraph (iii),a recovery of all or part of a bad debt relating to the supply in respect of which the registrant claimed a deduction under subsection 231(1), ora failure to account for or pay as and when required under this Part an amount of net tax of the registrant, or an amount required under section 230.1 to be paid by the registrant, that is reasonably attributable to an amount required under subsection 231(3) to be added to the net tax of the registrant in respect of a bad debt referred to in subparagraph (v); andthe threshold amounts of the registrant and of the person under subsections 249(1) and (2) shall be determined as if any consideration that became due to the person, or was paid to the person without having become due, in respect of the supply had become due to the registrant, or had been paid to the registrant without having become due, as the case may be, and not to the person.Billing agentIf a registrant acts as agent of a supplier in charging and collecting consideration and tax payable in respect of a supply made by the supplier but the registrant does not act as agent in making the supply, the registrant is deemed to have acted as agent of the supplier in making the supply for the purposes ofsubsection (1.1); andif an election under subsection (1.1) is made in respect of the supply, any other provision that refers to a supply in respect of which an election under that subsection has been made.Joint revocationA registrant and a supplier who have jointly made an election under subsection (1.1) may, in prescribed form containing prescribed information, jointly revoke the election with respect to any supply made on or after the effective date specified in the revocation, and the election is thereby deemed, for the purposes of this Part, not to have been made with respect to that supply.Supply by auctioneerWhere a registrant (in this subsection referred to as the “auctioneer”), acting as auctioneer and agent for another person (in this subsection referred to as the “principal”) in the course of a commercial activity of the auctioneer, makes on behalf of the principal a supply by auction of tangible personal property to a recipient, the supply is deemed, for the purposes of this Part, to be a taxable supply made by the auctioneer and not by the principal and the auctioneer is deemed, for the purposes of this Part other than section 180, not to have made a supply to the principal of services relating to the supply of the property to the recipient.Exception where electionWherea registrant (in this subsection referred to as the “auctioneer”), on a particular day, makes a particular supply by auction of prescribed property on behalf of another registrant (in this subsection referred to as the “principal”) and, but for subsection (1.2), that supply would be a taxable supply made by the principal,the auctioneer and principal jointly elect in prescribed form containing prescribed information in respect of the particular supply, andall or substantially all of the consideration for supplies made by auction on the particular day by the auctioneer on behalf of the principal is attributable to supplies of prescribed property in respect of which the auctioneer and principal have elected under this subsection,subsection (1.2) does not apply to the particular supply or to any supply made by the auctioneer to the principal of services relating to the particular supply.[Repealed, 1997, c. 10, s. 26]Supply for artists, etc.For the purposes of this Part other than sections 148 and 249, where a prescribed registrant, acting in the course of a commercial activity, makes a supply on behalf of another person of intangible personal property in respect of a product of an author, performing artist, painter, sculptor or other artist, the following rules apply:the other person shall be deemed not to have made the supply to the recipient;the registrant shall be deemed to have made the supply to the recipient; andthe registrant shall be deemed not to have made a supply to the other person of a service in relation to the supply to the recipient.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 42;
1997, c. 10, s. 26;
2007, c. 18, s. 11.
Previous VersionNetwork SellersDefinitionsThe following definitions apply in this section and section 236.5.network commissioncommission de réseaunetwork commission of a sales representative of a person means an amount that is payable by the person to the sales representative under an agreement between the person and the sales representativeas consideration for a supply of a service, made by the sales representative, of arranging for the sale of a select product or a sales aid of the person; orsolely as a consequence of a supply of a service, made by any sales representative of the person described in paragraph (a) of the definition sales representative, of arranging for the sale of a select product or a sales aid of the person.network sellervendeur de réseaunetwork seller means a person notified by the Minister of an approval under subsection (5).sales aidmatériel de promotionsales aid of a particular person that is a network seller or a sales representative of a network seller means property (other than a select product of any person) thatis a customized business form or a sample, demonstration kit, promotional or instructional item, catalogue or similar personal property acquired, manufactured or produced by the particular person for sale to assist in the promotion, sale or distribution of select products of the network seller; andis neither sold nor held for sale by the particular person to a sales representative of the network seller that is acquiring the property for use as capital property.sales representativereprésentant commercialsales representative of a particular person meansa person (other than a person that is an employee of the particular person or that acts, in the course of its commercial activities, as agent in making supplies of select products of the particular person on behalf of the particular person) thathas a contractual right under an agreement with the particular person to arrange for the sale of select products of the particular person, anddoes not arrange for the sale of select products of the particular person primarily at a fixed place of business of the person other than a private residence; ora person (other than a person that is an employee of the particular person or that acts, in the course of its commercial activities, as agent in making supplies of select products of the particular person on behalf of the particular person) that has a contractual right under an agreement with the particular person to be paid an amount by the particular person solely as a consequence of a supply of a service, made by a person described in paragraph (a), of arranging for the sale of a select product or a sales aid of the particular person.select productproduit déterminéselect product of a person means tangible personal property thatis acquired, manufactured or produced by the person for supply by the person for consideration, otherwise than as used property, in the ordinary course of business of the person; andis ordinarily acquired by consumers by way of sale.Qualifying network sellerFor the purposes of this section, a person is a qualifying network seller throughout a fiscal year of the person ifall or substantially all of the total of all consideration, included in determining the income from a business of the person for the fiscal year, for supplies made in Canada by way of sale is forsupplies of select products of the person, made by the person, by way of sales that are arranged for by sales representatives of the person (in this subsection referred to as “select supplies”), orwhere the person is a direct seller (as defined in section 178.1), supplies by way of sale of exclusive products (as defined in that section) of the person made by the person to independent sales contractors (as defined in that section) of the person at any time when an approval of the Minister for the application of section 178.3 to the person is in effect;all or substantially all of the total of all consideration, included in determining the income from a business of the person for the fiscal year, for select supplies is for select supplies made to consumers;all or substantially all of the sales representatives of the person to which network commissions become payable by the person during the fiscal year are sales representatives, each having a total of such network commissions of not more than the amount determined by the formula$30,000 × A/365whereAis the number of days in the fiscal year; andthe person and each of its sales representatives have made joint elections under subsection (4).ApplicationA person may apply to the Minister, in prescribed form containing prescribed information, to have subsection (7) apply to the person and each of its sales representatives, beginning on the first day of a fiscal year of the person, if the personis registered under Subdivision d of Division V and is reasonably expected to be, throughout the fiscal year,engaged exclusively in commercial activities, anda qualifying network seller; andfiles the application in prescribed manner beforein the case of a person that has never made a supply of a select product of the person, the day in the fiscal year on which the person first makes a supply of a select product of the person, andin any other case, the first day of the fiscal year.Joint electionIf subsection (3) applies to a person or a person is a network seller, the person and a sales representative of the person may jointly elect, in prescribed form containing prescribed information, to have subsection (7) apply to them at all times when an approval granted under subsection (5) is in effect.Approval or refusalIf the Minister receives an application under subsection (3) from a person, the Minister may approve the application of subsection (7) to the person and each of its sales representatives beginning on the first day of a fiscal year of the person or may refuse the application and the Minister shall notify the person in writing of the approval and the day on which it becomes effective or of the refusal.Evidence of joint electionsEvery network seller shall maintain evidence satisfactory to the Minister that the network seller and each of its sales representatives have made joint elections under subsection (4).Effect of approvalFor the purposes of this Part, if, at any time when an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is in effect, a network commission becomes payable by the network seller to a sales representative of the network seller as consideration for a taxable supply (other than a zero-rated supply) of a service made in Canada by the sales representative, the taxable supply is deemed not to be a supply.Sales aidsFor the purposes of this Part, if, at any time when an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is in effect, the network seller or a sales representative of the network seller makes in Canada a taxable supply by way of sale of a sales aid of the network seller or of the sales representative, as the case may be, to a sales representative of the network seller, the taxable supply is deemed not to be a supply.Host giftsFor the purposes of this Part, if, at any time when an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is in effect, the network seller or a particular sales representative of the network seller makes a supply of property to an individual as consideration for the supply by the individual of a service of acting as a host at an occasion that is organized for the purpose of allowing a sales representative of the network seller or the particular sales representative, as the case may be, to promote, or to arrange for the sale of, select products of the network seller, the individual is deemed not to have made a supply of the service and the service is deemed not to be consideration for a supply.Notification of refusalIf the Minister notifies a person of a refusal under subsection (5) at any time when the person and a sales representative of the person have made a joint election under subsection (4), the person shall forthwith notify the sales representative of the refusal in a manner satisfactory to the Minister.Revocation by MinisterThe Minister may revoke an approval granted under subsection (5) in respect of a network seller and each of its sales representatives, effective on the first day of a fiscal year of the network seller, if, before that day, the Minister notifies the network seller of the revocation and the day on which it becomes effective and ifthe network seller fails to comply with any provision of this Part;it can reasonably be expected that the network seller will not be a qualifying network seller throughout the fiscal year;the network seller requests in writing that the Minister revoke the approval;the notice referred to in subsection 242(1) has been given to, or the request referred to in subsection 242(2) has been filed by, the network seller; orit can reasonably be expected that the network seller will not be engaged exclusively in commercial activities throughout the fiscal year.Deemed revocationIf an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is in effect at any time in a particular fiscal year of the network seller and, at any time during the particular fiscal year, the network seller ceases to be engaged exclusively in commercial activities or the Minister cancels the registration of the network seller, the approval is deemed to be revoked, effective on the first day of the fiscal year of the network seller immediately following the particular fiscal year, unless, on that first day, the network seller is registered under Subdivision d of Division V and it is reasonably expected that the network seller will be engaged exclusively in commercial activities throughout that following fiscal year.Effect of revocationIf an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is revoked under subsection (11) or (12), the following rules apply:the approval ceases to have effect immediately before the day on which the revocation becomes effective;the network seller shall forthwith notify each of its sales representatives in a manner satisfactory to the Minister of the revocation and the day on which it becomes effective; anda subsequent approval granted under subsection (5) in respect of the network seller and each of its sales representatives shall not become effective before the first day of a fiscal year of the network seller that is at least two years after the day on which the revocation became effective.Failure to notify on revocationFor the purposes of this Part, a taxable supply (other than a zero-rated supply) of a service made in Canada by a sales representative of a network seller is deemed not to be a supply ifthe consideration for the taxable supply is a network commission that becomes payable by the network seller to the sales representative at any time after an approval granted under subsection (5) in respect of the network seller and each of its sales representatives ceases to have effect as a consequence of a revocation on the basis of any of paragraphs (11)(a) to (c);the approval could not have been revoked on the basis of paragraph (11)(d) or (e) and would not have otherwise been revoked under subsection (12);at the time the network commission becomes payable, the sales representativehas not been notified of the revocation by the network seller, as required under paragraph (13)(b), or by the Minister, andneither knows, nor ought to know, that the approval ceased to have effect; andan amount has not been charged or collected as or on account of tax in respect of the taxable supply.Failure to notify on revocationSubsection (16) applies if the following conditions are satisfied:the consideration for a taxable supply (other than a zero-rated supply) of a service made in Canada by a sales representative of a network seller is a network commission that becomes payable by the network seller to the sales representative at any time after an approval granted under subsection (5) in respect of the network seller and each of its sales representatives ceases to have effect as a consequence of a revocation under subsection (11) or (12);the approval was, or could at any time otherwise have been, revoked on the basis of paragraph (11)(d) or (e) or was, or would at any time otherwise have been, revoked under subsection (12);at the time the network commission becomes payable, the sales representativehas not been notified of the revocation by the network seller, as required under paragraph (13)(b), or by the Minister, andneither knows, nor ought to know, that the approval ceased to have effect; andan amount has not been charged or collected as or on account of tax in respect of the taxable supply.Failure to notify on revocationIf the conditions described in paragraphs (15)(a) to (d) are satisfied, the following rules apply for the purposes of this Part:section 166 shall not apply in respect of the taxable supply described in paragraph (15)(a);tax that becomes payable or that would, in the absence of section 166, become payable in respect of the taxable supply shall not be included in determining the net tax of the sales representative referred to in paragraph (15)(a); andthe consideration for the taxable supply shall not, in determining whether the sales representative is a small supplier, be included in the total referred to in paragraph 148(1)(a) or (2)(a).Sales aids on revocationFor the purposes of this Part, a taxable supply of a sales aid of a particular sales representative of a network seller made in Canada by way of sale to another sales representative of the network seller is deemed not to be a supply ifthe consideration for the taxable supply becomes payable at any time after an approval granted under subsection (5) in respect of the network seller and each of its sales representatives ceases to have effect as a consequence of a revocation under subsection (11) or (12);at the time the consideration becomes payable, the particular sales representativehas not been notified of the revocation by the network seller, as required under paragraph (13)(b), or by the Minister, andneither knows, nor ought to know, that the approval ceased to have effect; andan amount has not been charged or collected as or on account of tax in respect of the taxable supply.Restriction on input tax creditsIfa registrant that is a network seller in respect of which an approval granted under subsection (5) is in effect acquires or imports property (other than a select product of the network seller) or a service or brings it into a participating province for supply to a sales representative of the network seller or an individual related to the sales representative,tax becomes payable in respect of the acquisition, importation or bringing in, as the case may be,the property or service is so supplied by the registrant for no consideration or for consideration that is less than the fair market value of the property or service, andthe sales representative or individual is not acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the sales representative or individual, as the case may be,the following rules apply:no tax is payable in respect of the supply, andin determining an input tax credit of the registrant, no amount shall be included in respect of tax that becomes payable, or is paid without having become payable, by the registrant in respect of the property or service.Appropriations for sales representativesFor the purposes of this Part, if a registrant that is a network seller in respect of which an approval granted under subsection (5) is in effect appropriates, at any time, property (other than a select product of the network seller) that was acquired, manufactured or produced, or any service acquired or performed, in the course of commercial activities of the registrant, to or for the benefit of a sales representative of the network seller, or any individual related to the sales representative, that is not acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the sales representative or individual, in any manner (otherwise than by way of supply for consideration equal to the fair market value of the property or service), the registrant shall be deemedto have made a supply of the property or service for consideration paid at that time equal to the fair market value of the property or service at that time; andexcept where the supply is an exempt supply, to have collected, at that time, tax in respect of the supply calculated on that consideration.ExceptionSubsection (19) does not apply to property or a service appropriated by a registrant if the registrant was not entitled to claim an input tax credit in respect of the property or service because of section 170.Ceasing to be a registrantIf, at any time when an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is in effect, a sales representative of the network seller ceases to be a registrant, paragraph 171(3)(a) does not apply to sales aids of the sales representative that were supplied to the sales representative by the network seller or another sales representative of the network seller at any time when the approval was in effect.Non-arm’s length supplySection 155 does not apply to the supply described in subsection (9) made to an individual acting as a host.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1997, c. 10, s. 27;
2010, c. 12, s. 59.
Previous VersionDirect SellersDefinitionsIn this section and sections 178.2 to 178.5,applicable provincial taxtaxe provinciale applicableapplicable provincial tax means any amount that can reasonably be attributed to a tax, duty or fee imposed under an Act of the legislature of a province and prescribed for the purposes of section 154;direct sellerdémarcheurdirect seller means a person who sells exclusive products of the person to independent sales contractors of the person;distributordistributeurdistributor of a direct seller means a person who is an independent sales contractor of the direct seller and who, in the course of the contractor’s business, sells some or all of the exclusive products of the direct seller acquired by the contractor to other independent sales contractors of the direct seller;exclusive productproduit exclusifexclusive product of a direct seller means personal property that is acquired, manufactured or produced by the direct seller for sale, in the ordinary course of a business of the direct seller, to an independent sales contractor of the direct seller, with the expectation that the property would be ultimately sold, otherwise than as used property, by an independent sales contractor of the direct seller, in the ordinary course of a business of the contractor, for consideration to a person other than another independent sales contractor of the direct seller;independent sales contractorentrepreneur indépendantindependent sales contractor of a direct seller means a person (other than an agent or employee of the direct seller or of a distributor of the direct seller) whohas a contractual right to purchase exclusive products of the direct seller from the direct seller or from a distributor of the direct seller,purchases exclusive products of the direct seller for the purpose of resale to other independent sales contractors of the direct seller or to purchasers, anddoes not solicit, negotiate or enter into contracts for the sale of exclusive products of the direct seller to purchasers primarily at a fixed place of business of the person other than a private residence;purchaseracheteurpurchaser of an exclusive product of a direct seller means a person who is the recipient of a supply of the product and who is not acquiring the product for the purpose of supplying it for consideration;sales aidmatériel de promotionsales aid of a person who is a direct seller or an independent sales contractor of a direct seller meansproperty (other than an exclusive product of the direct seller)that is a customized business form or a sample, demonstration kit, promotional or instructional item, catalogue or other personal property acquired, manufactured or produced by the person for sale to assist in the promotion, sale or distribution of exclusive products of the direct seller, andthat is neither sold nor held for sale by the person to an independent sales contractor of the direct seller who is acquiring the property for use as capital property, andthe service of shipping or handling, or processing an order for, either property included in paragraph (a) or an exclusive product of the direct seller;suggested retail priceprix de vente au détail suggérésuggested retail price at any time of an exclusive product of a direct seller means the lowest price published by the direct seller applicable to supplies of the product made at that time to purchasers, but does not include any amount on account of tax.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 43;
2000, c. 30, s. 29.
Application for alternate collection methodA direct seller who is a registrant may apply, in prescribed form containing prescribed information and filed in prescribed manner, to the Minister to have section 178.3 apply to the direct seller.IdemWhere a direct seller and a distributor of the direct seller are registrants, they may apply jointly, in prescribed form containing prescribed information and filed in prescribed manner, to the Minister to have section 178.4 apply to the distributor.Grant of approvalWhere the Minister receives an application under subsection (1) from a direct seller, the Minister may approve in writing the application of section 178.3 to the direct seller, and the Minister shall, in writing, notify the direct seller of the approval and the day on which it becomes effective.IdemWhere the Minister receives a joint application under subsection (2) from a direct seller and a distributor of the direct seller, the Minister may approve in writing the application of section 178.4 to the distributor, and the Minister shall, in writing, notify both the distributor and the direct seller of the approval and the day on which it becomes effective.Deemed approvalWhere, at a time when an approval for the application of section 178.3 to a direct seller would not, but for this subsection, be in effect, an approval granted under subsection (4) in respect of a distributor of the direct seller becomes effective and no other approval under that subsection in respect of a distributor of the direct seller is in effect at that time, the direct seller shall be deemed, for the purposes of this section and sections 178.3 to 178.5, to have been granted an approval under subsection (3) that becomes effective immediately before that time.Revocation of approvalThe Minister may, effective on any day, revoke an approval granted under subsection (3) in respect of a direct seller where an approval granted under subsection (4) in respect of a distributor of the direct seller is not in effect on that day andthe direct seller fails to comply with any provision of this Part, orexcept in the case of an approval deemed under subsection (5) to have been granted, the direct seller requests, in writing, the Minister to revoke the approval,and where the Minister revokes the approval, the Minister shall, in writing, notify the direct seller of the revocation and the day on which it becomes effective.IdemThe Minister may revoke an approval granted under subsection (4) in respect of a distributor of a direct seller where the distributor fails to comply with any provision of this Part or the distributor and the direct seller, in writing, jointly request the Minister to revoke the approval, and the Minister shall, in writing, notify both the distributor and the direct seller of the revocation and the day on which it becomes effective.CessationAn approval granted under subsection (3) in respect of a direct seller ceases to have effect on the earliest ofthe day the direct seller ceases to be a registrant,the day an approval granted under subsection (4) in respect of any distributor of the direct seller ceases to have effect and there is no other approval granted under that subsection in respect of any distributor of the direct seller in effect, andthe day a revocation of the approval under subsection (6) becomes effective.IdemAn approval granted under subsection (4) on the joint application of a direct seller and a distributor of the direct seller ceases to have effect on the earliest ofthe day the direct seller ceases to be a registrant,the day the distributor ceases to be a registrant, andthe day a revocation of the approval under subsection (7) becomes effective.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 43.
Effect of approval for direct sellerFor the purposes of this Part, where at any time when an approval of the Minister for the application of this section to a direct seller is in effect, the direct seller makes in Canada a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller who is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect at that time or becomes effective immediately after that time, the following rules apply:the supply shall be deemed to have been made for considerationthat becomes due, and is paid, at the particular time that is the earliest time at which any consideration for the supply becomes due or is paid, andthat is equal to the suggested retail price of the product at the time the supply is made;tax is deemed not to be payable by the contractor in respect of the supply;the contractor is not entitled to any rebate under section 261 in respect of the supply; andin determining the net tax of the direct seller for the reporting period of the direct seller that includes the particular time, there shall be added an amount equal to tax calculated on the suggested retail price of the product at the time the supply is made.IdemWhereat any time when an approval of the Minister for the application of this section to a direct seller is in effect, a particular independent sales contractor of the direct seller makes in Canada a particular taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller,the particular contractor is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect at that time or becomes effective immediately after that time, andsubsection (1) applied to a supply of the product made at an earlier time or subsection 178.5(1) applied to the product at an earlier time,the following rules apply:if the recipient of the particular supply is another independent sales contractor of the direct seller, the particular supply shall be deemed, for the purposes of this Part except section 178.1 and this section, not to have been made by the particular contractor and not to have been received by the other contractor, andif the recipient of the particular supply is any person (other than the direct seller and another independent sales contractor of the direct seller),the particular supply is deemed, for the purposes of this Part except section 178.1 and subsections (4) to (6) and 178.5(7), to be a taxable supply made by the direct seller, and not by the particular contractor, for consideration equal to the lesser of the actual consideration for the supply and the suggested retail price of the product at the time the particular supply is made,any tax in respect of the particular supply that is collected by the particular contractor shall be deemed to have been collected on behalf of the direct seller, andtax in respect of the particular supply shall not be included in determining the net tax of the direct seller for any reporting period.Adjustment to direct seller’s net taxFor the purposes of this Part, where a direct seller has made a supply of an exclusive product of the direct seller in circumstances in which an amount was required under paragraph (1)(d) to be added in determining the net tax of the direct seller and an independent sales contractor of the direct seller subsequently supplies the product to the direct seller in a particular reporting period of the direct seller, the contractor is deemed not to have so supplied the product and the amount may be deducted, in determining the net tax of the direct seller for the particular reporting period or a subsequent reporting period, in a return under Division V filed by the direct seller within four years after the day on or before which the return under Division V for the particular reporting period is required to be filed.IdemWhereat a particular time a direct seller makes a supply of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the direct seller,after March 1993 a particular independent sales contractor of the direct sellermakes a supply of the product that isa zero-rated supply,a supply made outside Canada, ora supply in respect of which the recipient is not required to pay tax because of an Act of Parliament,makes a supply of the product to a person other than an independent sales contractor of the direct seller for considerationthat is less than the suggested retail price of the product at the particular time and more than nominal, andon which was calculated tax that was paid by the person, ormakes a supply of the product to a person other than an independent sales contractor of the direct seller for no consideration or for nominal consideration or appropriates the product for the consumption, use or enjoyment of the particular contractor, andthe direct seller pays to, or credits in favour of, the particular contractor an amount in respect of the product equal towhere subparagraph (b)(i) applies, tax calculated on the suggested retail price of the product at the particular time, andwhere subparagraph (b)(ii) or (iii) applies, the amount determined by the formulaA - BwhereAis the tax calculated on the suggested retail price of the product at the particular time, andBiswhere subparagraph (b) (ii) applies, tax calculated on the consideration for the supply of the product by the particular contractor, andwhere subparagraph (b)(iii) applies, tax calculated on the consideration for the supply of the product to the particular contractor determined without reference to paragraph (1)(a),the direct seller may deduct the amount determined under paragraph (c), in determining the net tax for the particular reporting period of the direct seller in which the payment or credit is given or a subsequent reporting period, in a return under Division V filed by the direct seller within four years after the day on or before which the return under Division V for the particular reporting period is required to be filed.Adjustment where supply not in participating provinceWhereat a particular time a direct seller makes a supply in a participating province of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the direct seller,included in the amount required under paragraph (1)(d) to be added in determining the net tax of the direct seller is tax payable under subsection 165(2) in respect of the supply,a particular independent sales contractor of the direct seller makes a supply of the product outside the participating provinces, andthe direct seller pays to, or credits in favour of, the particular contractor an amount in respect of the product equal to the amount of the tax payable under subsection 165(2) calculated on the suggested retail price of the product at the particular time,the direct seller may deduct the amount determined under paragraph (d), in determining the net tax for the particular reporting period of the direct seller in which the payment or credit is given or a subsequent reporting period, in a return under Division V filed by the direct seller within four years after the day on or before which the return under Division V for the particular reporting period is required to be filed.Adjustment where supply is in participating provinceWherea direct seller makes a supply outside the participating provinces of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the direct seller,no tax under subsection 165(2) in respect of the supply is included in the amount required under paragraph (1)(d) to be added in determining the net tax of the direct seller, andan independent sales contractor of the direct seller makes at a particular time a supply of the product in a participating province,in determining the net tax of the direct seller for the reporting period of the direct seller that includes the particular time, there shall be added an amount equal to the tax that would be payable under subsection 165(2) in respect of the supply, calculated on the suggested retail price of the product at the particular time, if the supply by the direct seller were made in that participating province at the particular time.Adjustment in respect of participating provincesIn determining the net tax of a direct seller for a reporting period of the direct seller that includes a prescribed time, the direct seller shall add or may deduct, as the case may require, an amount determined in prescribed manner ifthe direct seller makes a supply in a participating province of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the direct seller;tax payable under subsection 165(2) in respect of the supply is included in the amount required under paragraph (1)(d) to be added in determining the net tax of the direct seller;an independent sales contractor of the direct seller makes a supply of the exclusive product in another participating province; andprescribed conditions, if any, are satisfied.Bad debt on sale by contractorIfa direct seller has made a supply of an exclusive product of the direct seller in circumstances in which an amount was required under paragraph (1)(d) to be added in determining the net tax of the direct seller,a particular independent sales contractor of the direct seller has or would have, but for paragraph (2)(e), also made a supply of the product to a person with whom the particular contractor was dealing at arm’s length (other than the direct seller and another independent sales contractor of the direct seller),the direct seller has obtained evidence satisfactory to the Minister that the consideration and the tax payable in respect of the supply by the particular contractor have become in whole or in part a bad debt and that the amount of the bad debt has, at a particular time, been written off in the particular contractor’s books of account, andthe direct seller pays to, or credits in favour of, the particular contractor an amount in respect of the product equal to the amount determined by the formulaA × B/CwhereAis the tax payable in respect of the supply by the particular contractor,Bis the total of the consideration and tax, and any applicable provincial tax in respect of that supply, remaining unpaid and written off at the particular time as a bad debt, andCis the total of the consideration and tax, and applicable provincial tax, payable in respect of that supply,the direct seller may, in determining the net tax for the particular reporting period of the direct seller in which the payment or credit is given or for a subsequent reporting period, deduct the amount paid or credited in a return under Division V filed by the direct seller within four years after the day on or before which the return for the particular reporting period is required to be filed.Recovery of bad debtIf all or part of a bad debt in respect of which a direct seller has made a deduction under subsection (7) is recovered, the direct seller shall, in determining the net tax for the direct seller’s reporting period in which the bad debt or that part is recovered, add the amount determined by the formulaA × B/CwhereAis the amount recovered;Bis the tax payable in respect of the supply to which the bad debt relates; andCis the total of the consideration and tax, and any applicable provincial tax, payable in respect of that supply.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 43;
1997, c. 10, ss. 28, 170;
2000, c. 30, s. 30;
2009, c. 32, s. 8.
Previous VersionEffect of approval for distributorFor the purposes of this Part, where at any time when an approval of the Minister for the application of this section to a distributor of a direct seller is in effect, the distributor makes in Canada a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of the direct seller who is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect at that time or becomes effective immediately after that time, the following rules apply:the supply shall be deemed to have been made for considerationthat becomes due, and is paid, at the particular time that is the earliest time at which any consideration for the supply becomes due or is paid, andthat is equal to the suggested retail price of the product at the time the supply is made;tax is deemed not to be payable by the contractor in respect of the supply;the contractor is not entitled to any rebate under section 261 in respect of the supply; andin determining the net tax of the distributor for the reporting period of the distributor that includes the particular time, there shall be added an amount equal to tax calculated on the suggested retail price of the product at the time the supply is made.IdemWhereat any time when an approval of the Minister for the application of this section to a distributor of a direct seller is in effect, a particular independent sales contractor of the direct seller (other than the distributor) makes in Canada a particular taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller, andsubsection (1) applied to a supply of the product made at an earlier time by an independent sales contractor of the direct seller or subsection 178.5(2) applied, at an earlier time, to the product,the following rules apply:if the recipient of the particular supply is a person who is an independent sales contractor of the direct seller (other than the distributor), the particular supply shall be deemed, for the purposes of this Part except section 178.1 and this section, not to have been made by the particular contractor and not to have been received by the person, andif the recipient of the particular supply is a person (other than the distributor and another independent sales contractor of the direct seller),the particular supply is deemed, for the purposes of this Part except section 178.1 and subsections (4) to (6) and 178.5(7), to be a taxable supply made by the distributor, and not by the particular contractor, for consideration equal to the lesser of the actual consideration for the supply and the suggested retail price of the product at the time the particular supply is made,any tax in respect of the particular supply that is collected by the particular contractor shall be deemed to have been collected on behalf of the distributor, andtax in respect of the particular supply shall not be included in determining the net tax of the distributor for any reporting period.Adjustment to distributor’s net taxFor the purposes of this Part, where a distributor of a direct seller has made a supply of an exclusive product of the direct seller in circumstances in which an amount was required under paragraph (1)(d) to be added in determining the net tax of the distributor and another independent sales contractor of the direct seller subsequently supplies the product to the distributor in a particular reporting period of the distributor, the other contractor is deemed not to have so supplied the product and the amount may be deducted, in determining the net tax of the distributor for the particular reporting period or a subsequent reporting period, in a return under Division V filed by the distributor within four years after the day on or before which the return under Division V for the particular reporting period is required to be filed.IdemWhereat a particular time a distributor of a direct seller makes a supply of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the distributor,after March 1993 a particular independent sales contractor of the direct seller (other than the distributor)makes a supply of the product that isa zero-rated supply,a supply made outside Canada, ora supply in respect of which the recipient is not required to pay tax because of an Act of Parliament,makes a supply of the product to a person other than an independent sales contractor of the direct seller for considerationthat is less than the suggested retail price of the product at the particular time and more than nominal, andon which was calculated tax that was paid by the person, ormakes a supply of the product to a person other than an independent sales contractor of the direct seller for no consideration or for nominal consideration or appropriates the product for the consumption, use or enjoyment of the particular contractor, andthe distributor pays to, or credits in favour of, the particular contractor an amount in respect of the product equal towhere subparagraph (b)(i) applies, tax calculated on the suggested retail price of the product at the particular time, andwhere subparagraph (b)(ii) or (iii) applies, the amount determined by the formulaA - BwhereAis the tax calculated on the suggested retail price of the product at the particular time, andBiswhere subparagraph (b)(ii) applies, tax calculated on the consideration for the supply of the product by the particular contractor, andwhere subparagraph (b)(iii) applies, tax calculated on the consideration for the supply of the product to the particular contractor determined without reference to paragraph (1)(a),the distributor may deduct the amount determined under paragraph (c), in determining the net tax for the particular reporting period of the distributor in which the payment or credit is given or a subsequent reporting period, in a return under Division V filed by the distributor within four years after the day on or before which the return under Division V for the particular reporting period is required to be filed.Adjustment where supply not in participating provinceWhereat a particular time a distributor of a direct seller makes a supply in a participating province of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the distributor,included in the amount required under paragraph (1)(d) to be added in determining the net tax of the distributor is tax payable under subsection 165(2) in respect of the supply,a particular independent sales contractor of the direct seller (other than the distributor) makes a supply of the product outside the participating provinces, andthe distributor pays to, or credits in favour of, the particular contractor an amount in respect of the product equal to the amount of the tax payable under subsection 165(2) calculated on the suggested retail price of the product at the particular time,the distributor may deduct the amount determined under paragraph (d) in determining the net tax for the particular reporting period of the distributor in which the payment or credit is given or a subsequent reporting period, in a return under Division V filed by the distributor within four years after the day on or before which the return under Division V for the particular reporting period is required to be filed.Adjustment where supply is in participating provinceWherea distributor of a direct seller makes a supply outside the participating provinces of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the distributor,no tax under subsection 165(2) in respect of the supply is included in the amount required under paragraph (1)(d) to be added in determining the net tax of the distributor, anda particular independent sales contractor of the direct seller (other than the distributor) makes at a particular time a supply of the product in a participating province,in determining the net tax of the distributor for the reporting period of the distributor that includes the particular time, there shall be added an amount equal to the tax that would be payable under subsection 165(2) in respect of the supply, calculated on the suggested retail price of the product at the particular time, if the supply by the distributor were made in that participating province at the particular time.Adjustment in respect of participating provincesIn determining the net tax of a distributor of a direct seller for a reporting period of the distributor that includes a prescribed time, the distributor shall add or may deduct, as the case may require, an amount determined in prescribed manner ifthe distributor makes a supply of an exclusive product of the direct seller in a participating province in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the distributor;tax payable under subsection 165(2) in respect of the supply is included in the amount required under paragraph (1)(d) to be added in determining the net tax of the distributor;a particular independent sales contractor of the direct seller (other than the distributor) makes a supply of the exclusive product in another participating province; andprescribed conditions, if any, are satisfied.Bad debt on sale by contractorIfa distributor of a direct seller has made a supply of an exclusive product of the direct seller in circumstances in which an amount was required under paragraph (1)(d) to be added in determining the net tax of the distributor,a particular independent sales contractor of the direct seller (other than the distributor) has or would have, but for paragraph (2)(d), also made a supply of the product to a person with whom the particular contractor was dealing at arm’s length (other than the direct seller, distributor and another independent sales contractor of the direct seller),the distributor has obtained evidence satisfactory to the Minister that the consideration and the tax payable in respect of the supply by the particular contractor have become in whole or in part a bad debt and that the amount of the bad debt has, at a particular time, been written off in the particular contractor’s books of account, andthe distributor pays to, or credits in favour of, the particular contractor an amount in respect of the product equal to the amount determined by the formulaA × B/CwhereAis the tax payable in respect of the supply by the particular contractor,Bis the total of the consideration and tax, and any applicable provincial tax, in respect of that supply remaining unpaid and written off at the particular time as a bad debt, andCis the total of the consideration and tax, and applicable provincial tax, payable in respect of that supply,the distributor may, in determining the net tax for the particular reporting period of the distributor in which the payment or credit is given or for a subsequent reporting period, deduct the amount paid or credited in a return under Division V filed by the distributor within four years after the day on or before which the return for the particular reporting period is required to be filed.Recovery of bad debtIf all or part of a bad debt in respect of which a distributor of a direct seller has made a deduction under subsection (7) is recovered, the distributor shall, in determining the net tax for the distributor’s reporting period in which the bad debt or that part is recovered, add the amount determined by the formulaA × B/CwhereAis the amount recovered;Bis the tax payable in respect of the supply to which the bad debt relates; andCis the total of the consideration and tax, and any applicable provincial tax, payable in respect of that supply.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 43;
1997, c. 10, ss. 29, 171;
2000, c. 30, s. 31;
2009, c. 32, s. 9.
Previous VersionProducts held at time of approvalWherean approval granted under subsection 178.2(3) in respect of a direct seller becomes effective at any time after January 1, 1991,a registrant who is an independent sales contractor of the direct seller has, at that time, in inventory an exclusive product of the direct seller, andthe registrant is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect at that time or becomes effective immediately after that time,the registrant shall be deemed, for the purposes of this Part except sections 148 and 249,to have made, immediately before that time, a supply of the product for consideration, that becomes due and is paid immediately before that time, equal to the suggested retail price of the product at that time, andto have collected, immediately before that time, tax in respect of the supply calculated on that consideration.Products held at time of revocationWhere, at the time an approval granted under subsection 178.2(4) in respect of a distributor of a direct seller ceases to have effect, the distributor has in inventory an exclusive product of the direct seller and an approval granted under subsection 178.2(3) in respect of the direct seller does not cease to have effect at that time, the distributor shall be deemed, for the purposes of this Part except sections 148 and 249,to have made, immediately before that time, a supply of the product for consideration, that becomes due and is paid immediately before that time, equal to the suggested retail price of the product at that time; andto have collected, immediately before that time, tax in respect of the supply calculated on that consideration.IdemFor the purposes of this Part, where an approval granted under subsection 178.2(4) in respect of a distributor of a direct seller ceases to have effect at the same time as an approval granted under subsection 178.2(3) in respect of the direct seller ceases to have effect, each independent sales contractor of the direct seller, other than a distributor in respect of whom an approval granted under subsection 178.2(4) ceases to have effect at that time, shall be deemedto have received, immediately after that time, a supply of each exclusive product of the direct seller that the contractor has in inventory at that time for consideration, that becomes due and is paid immediately after that time, equal to the suggested retail price of the product at that time; andto have paid, immediately after that time, tax in respect of the supply calculated on that consideration.IdemFor the purposes of this Part, where an approval granted under subsection 178.2(3) in respect of a direct seller ceases, at any time after March 1993, to have effect and subsection (3) does not apply, each independent sales contractor of the direct seller shall be deemedto have received, immediately after that time, a supply of each exclusive product of the direct seller that the contractor has in inventory at that time for consideration, that becomes due and is paid immediately after that time, equal to the suggested retail price of the product at that time; andto have paid, immediately after that time, tax in respect of the supply calculated on that consideration.Sales aidsFor the purposes of this Part, where at any time when an approval of the Minister for the application of section 178.3 to a direct seller is in effect, the direct seller or an independent sales contractor of the direct seller makes in Canada a taxable supply by way of sale of a sales aid of the direct seller or of the contractor, as the case may be, to an independent sales contractor of the direct seller, the supply shall be deemed not to be a supply.Bonus paymentsFor the purposes of this Part, where, at any time after March 1993 when an approval of the Minister for the application of section 178.3 to a direct seller is in effect, an amount is paid or payable by the direct seller or an independent sales contractor of the direct seller to an independent sales contractor of the direct seller because of the volume of purchases or sales of exclusive products of the direct seller or of sales aids and otherwise than as consideration for a supply of such a product or sales aid, the amount shall be deemed not to be consideration for a supply.Host giftsFor the purposes of this Part, where, at any time after March 1993 when an approval of the Minister for the application of section 178.3 to a direct seller is in effect, an independent sales contractor of the direct seller, who is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect at that time or becomes effective immediately after that time, makes a supply of property to a person as consideration for the supply by the person of a service of acting as a host at an occasion that is organized for the purpose of the promotion or distribution by the contractor of exclusive products of the direct seller, the person shall be deemed not to have made a supply of the service and the service shall be deemed not to be consideration for a supply.Restriction on input tax creditsWhereafter March, 1993 a registrant, who is a direct seller in respect of whom an approval granted under subsection 178.2(3) is in effect or who is a distributor of such a direct seller, acquires or imports property (other than an exclusive product of the direct seller) or a service or brings it into a participating province for supply to an independent sales contractor of the direct seller or an individual related thereto,the property or service is so supplied by the registrant for no consideration or for consideration that is less than the fair market value of the property or service, andthe contractor or individual is not acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the contractor or individual, as the case may be,the following rules apply:no tax is payable in respect of the supply, andin determining an input tax credit of the registrant, no amount shall be included in respect of tax that becomes payable, or is paid without having become payable, by the registrant in respect of the property or service.Appropriations for contractorsFor the purposes of this Part, where a registrant who is a direct seller in respect of whom an approval granted under subsection 178.2(3) is in effect or who is a distributor of such a direct seller appropriates, at any time after March 1993, property (other than an exclusive product of the direct seller) that was acquired, manufactured or produced, or any service acquired or performed, in the course of commercial activities of the registrant, to or for the benefit of an independent sales contractor of the direct seller, or any individual related thereto, who is not acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the contractor or individual, in any manner whatever (otherwise than by way of supply for consideration equal to the fair market value of the property or service), the registrant shall be deemedto have made a supply of the property or service for consideration paid at that time equal to the fair market value of the property or service at that time; andexcept where the supply is an exempt supply, to have collected, at that time, tax in respect of the supply calculated on that consideration.ExceptionSubsection (9) does not apply to property or a service appropriated by a registrant where the registrant was not entitled to claim an input tax credit in respect of the property or service because of section 170.Ceasing to be registrantWhere, at any time after March 1993 when an approval granted under subsection 178.2(3) in respect of a direct seller is in effect, an independent sales contractor of the direct seller ceases to be a registrant, paragraph 171(3)(a) does not apply to sales aids of the contractor that were supplied to the contractor by the direct seller or another independent sales contractor of the direct seller at any time when the approval was in effect.Non-arm’s length supplySection 155 does not apply to a supply described in subparagraph 178.3(4)(b)(ii) or (iii) or 178.4(4)(b)(ii) or (iii) or subsection (7).
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 43;
1997, c. 10, s. 172.
Buying GroupsDefinitionsIn this section,original supplierfournisseur initialoriginal supplier of tangible personal property or a service means a person who makes a taxable supply of the property or service to another person who, in turn, supplies the property or service by way of a pass-through supply;pass-through supplyfourniture intermédiairepass-through supply means a taxable supply of tangible personal property or a service made by a person for consideration that is equal to the consideration paid or payable by the person to the supplier who supplied the property or service to the person;ultimate recipientdernier acquéreurultimate recipient means a recipient of a pass-through supply.Application for buyer designationWhereall or substantially all of the supplies of property and services made by a particular person in the ordinary course of the particular person’s business are pass-through supplies,in respect of each pass-through supply of tangible personal property or a service made by the particular person, the original supplier of the property or service causes physical possession of the property to be transferred to, or renders the service to, the ultimate recipient, or to another person on behalf of the ultimate recipient, and not to the particular person, andin respect of each pass-through supply of tangible personal property or a service made by the particular person, the ultimate recipient pays, on behalf of the particular person, to the original supplier of the property or service, the amount payable by the particular person to the original supplier as consideration for the property or service,the particular person may apply to the Minister, in prescribed form containing prescribed information and filed in prescribed manner, to be designated as a buyer.Designation as buyerWhere the Minister receives an application of a person under subsection (2), the Minister may, subject to such conditions as the Minister may at any time impose, designate the person as a buyer and notify the person in writing of the designation and the day it becomes effective.Revocation of designationThe Minister may revoke a designation of a person made under subsection (3)on application of the person, orwhere the person fails to comply with any condition imposed in respect of the designation,and, where the designation is revoked, the Minister shall notify the person in writing of the day the designation ceases to be effective.Buying group methodWhere a person makes a pass-through supply of tangible personal property or a service at a time when a designation of the person as a buyer under subsection (3) is in effect, for the purposes of this Part (other than section 148, this section and Subdivision e of Division V), the following rules apply:the supply of the property or service by the original supplier of the property or service shall be deemed to have been made to the ultimate recipient and not to the person;the person shall be deemed not to have received a supply of the property or service from the original supplier nor to have supplied the property or service to the ultimate recipient;the consideration payable for, and the tax payable in respect of, the supply by the original supplier of the property or service shall be deemed to be payable by the ultimate recipient and any amount paid in respect of the consideration or tax shall be deemed to have been paid by the ultimate recipient;notwithstanding paragraph (c), the person and the ultimate recipient are jointly and severally liable for the payment of the tax in respect of the supply made by the original supplier; andif the amount charged or collected by the original supplier of the property or service as or on account of tax under Division II in respect of the supply exceeds the tax that was collectible under that Division in respect of the supply, or if the amount of tax collectible under that Division in respect of the supply is reduced because of a reduction in the consideration for the supply, and the original supplier issues to, or receives from, the person a credit note or a debit note in respect of the supply, the person shall be deemed to have received or issued the note on behalf of the ultimate recipient.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 43.
Designated CharitiesMeaning of specified serviceFor the purposes of this section, specified service means any service, other than a servicethat isthe care, employment or training for employment of individuals with disabilities,an employment placement service rendered to such individuals, orthe provision of instruction to assist such individuals in securing employment; andthe recipient of which is a public sector body or a board, commission or other body established by a government or a municipality.Charity supplying specified serviceA charity may apply to the Minister, in prescribed form containing prescribed information, to be designated for the purposes of paragraph 1(d.1) of Part V.1 of Schedule V ifone of the main purposes of the charity is the provision of employment, training for employment or employment placement services for individuals with disabilities or the provision of instructional services to assist such individuals in securing employment; andthe charity supplies, on a regular basis, specified services that are performed, in whole or in part, by individuals with disabilities.Designation by the MinisterOn application by a charity under subsection (2), the Minister may, by notice in writing, designate the charity for the purposes of paragraph 1(d.1) of Part V.1 of Schedule V, effective on the first day of a reporting period specified in the notice, ifthe Minister is satisfied that the conditions described in paragraphs (2)(a) and (b) are met; anda revocation under subsection (4) pursuant to a request made by the charity has not become effective in the 365-day period ending immediately before that day.Revocation of designationThe Minister may, by notice in writing, revoke a designation of a charity, effective on the first day of a reporting period specified in the notice, ifthe Minister is satisfied that the conditions described in paragraphs (2)(a) and (b) are no longer met; orthe charity makes a request in writing to the Minister that the designation be revoked and the designation had not become effective in the 365-day period ending immediately before that day.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2000, c. 30, s. 32;
2007, c. 18, s. 12(F).
Previous VersionImport ArrangementsDefinition of specified supplyIn this section, specified supply means a supply of goods thatare, at any time after the supply is made, imported; orhave been imported in circumstances in which section 144 deems the supply to have been made outside Canada.Deemed importer of goodsSubject to subsections (4) and (7), if a recipient of a specified supply of goods made outside Canada does not, at any time before the release of the goods, supply the goods outside Canada and the recipient or any other person imported the goods for consumption, use or supply by the recipient (in this section referred to as the “constructive importer”), the constructive importer is deemed to have so imported the goods, and any amount paid or payable as or on account of tax on the goods under Division III in respect of the importation is deemed to have been paid or payable, as the case may be, by or on behalf of the constructive importer and not by or on behalf of any other person.Agreement to treat supply as made in CanadaIf a registrant makes a specified supply of goods outside Canada that is a taxable supply, the recipient of the supply is the constructive importer of the goods and an amount is, in the absence of subsection (2), paid or payable by or on behalf of the registrant as or on account of tax on the goods under Division III in respect of the importation, the registrant and the recipient may at any time agree, in prescribed form containing prescribed information, to have subsection (4) apply in respect of the supply and importation.Effect of agreementIf a registrant and the constructive importer of goods have entered into an agreement under subsection (3) in respect of the supply and importation of the goods and the constructive importer has not entered into an agreement under subsection (5) in respect of any amount paid as or on account of tax on the goods under Division III in respect of the importation,the supply is deemed to have been made in Canadain the case of a constructive importer who is an individual to whom the goods are shipped to a destination in Canada by another person, at the address to which the goods are sent by mail or courier by the shipper or at the destination that is specified in the contract for carriage of the goods or at which the shipper has directed a common carrier or consignee retained on behalf of the constructive importer to transfer physical possession of the goods, andin any other case, at the place at which the goods are released;except if subsection 155(1) applies, the consideration for the supply is deemed to be equal to the amount otherwise determined for the purposes of this Part plus any amount (in this paragraph referred to as “additional consideration”) not otherwise included in that consideration that the constructive importer at a particular time pays or is required to pay to the registrant in respect of duties or taxes payable on the goods under this Act (other than this Part), the Customs Tariff, the Excise Act, 2001, the Special Import Measures Act or any other law relating to customs and, despite section 168, the tax in respect of the supply that is calculated on the additional consideration becomes payable at the particular time;the registrant is deemed to have imported the goods for the purpose of supply in the course of commercial activities of the registrant; andany amount paid or payable as or on account of tax on the goods under Division III in respect of the importation is deemed to have been paid or payable, as the case may be, by or on behalf of the registrant and not by or on behalf of any other person.Agreement regarding rebates, abatements and refundsIf the constructive importer of goods is deemed under subsection (2) to be the person by whom the goods are imported but another person (in this section referred to as the “specified importer”) was identified, for the purposes of the Customs Act, as the importer of the goods when the goods were accounted for under section 32 of that Act and, in the absence of subsection (2), paid an amount as or on account of tax on the goods under Division III, the constructive importer and the specified importer may agree in writing to have subsection (7) apply in respect of that amount.RestrictionSubsection (5) does not apply to any amount in respect of which, because of section 263.01, the constructive importer of goods would not be entitled to a rebate referred to in that section if the constructive importer paid the amount as or on account of tax on the goods under Division III.Effect of agreementIf a constructive importer of goods and a specified importer have entered into an agreement under subsection (5) to have this subsection apply in respect of an amount paid as or on account of tax on the goods under Division III and the constructive importer has not entered into an agreement under subsection (3) with the supplier of the goods in respect of the importation,subsections 215.1(2) and (3) and 216(6) and (7) apply as if the specified importer and not the constructive importer were the person by whom the goods were imported and the amount was paid, but only if, within a reasonable time after any rebate under subsection 215.1(2) or 216(6) in respect of the amount is granted or any abatement or refund is, because of subsection 215.1(3) or 216(7), granted in respect of the amount, the specified importer issues to the constructive importer a note (in this subsection referred to as a “tax adjustment note”), in prescribed form containing prescribed information, indicating the amount of the rebate, abatement or refund;in applying subsection 215.1(2) or (3) in respect of the amount in accordance with paragraph (a), that subsection shall be read without reference to subparagraphs (a)(i) and (ii), and paragraph (c), of that subsection; andif the constructive importer receives a tax adjustment note indicating the amount of a rebate, abatement or refund,the amount that is rebated, abated or refunded is deemed to have been payable as tax and to have been recovered by the constructive importer and, except for the purposes of section 232, the tax adjustment note is deemed to be a credit note referred to in that section received by the constructive importer for the amount of the rebate, abatement or refund,the amount of the rebate, abatement or refund shall be added in determining the net tax of the constructive importer for the reporting period in which the tax adjustment note is received, to the extent that the amount has been included in determining an input tax credit claimed by the constructive importer in a return filed for that or a preceding reporting period or the constructive importer is or was entitled to be compensated under a warranty for loss suffered because of any of the circumstances that gave rise to the rebate, abatement or refund by receiving a supply of replacement parts, or replacement property, that are goods included in section 5 of Schedule VII, andif the amount rebated, abated or refunded has been included in determining a rebate under Division VI paid to, or applied to a liability of, the constructive importer before the particular day on which the tax adjustment note is received and the rebate so paid or applied exceeds the rebate under that Division to which the constructive importer would have been entitled if the amount rebated, abated or refunded had not been paid, the constructive importer shall pay to the Receiver General under section 264 the excess as if it were an excess amount of the rebate under that Division paid to the constructive importerif the constructive importer is a registrant, on the day on or before which the constructive importer’s return for the reporting period that includes the particular day is required to be filed, andin any other case, on the last day of the calendar month immediately following the calendar month that includes the particular day.ApplicationSubject to subsection (9), subsections (2) to (7) apply for the purposes of this Part other thanDivision III except subsections 215.1(2) and (3) and 216(6) and (7);sections 220.07, 236.3 and 273.1;Schedule VII; andthe Non-Taxable Imported Goods (GST/HST) Regulations and the Value of Imported Goods (GST/HST) Regulations.ApplicationSubsections (2) to (7) do not apply in respect of goods imported in circumstances in which subsection 169(2) applies or in which section 180 deems a person to have paid tax in respect of a supply of property equal to the tax under Division III in respect of the importation of goods.Limitation period where retroactive agreementIf a registrant and a constructive importer enter into an agreement under subsection (3) in respect of a previous importation of goods, the Minister has, despite section 298, until the day that is four years after the day on which the agreement under subsection (3) is entered into to make any assessment, reassessment or additional assessment for the purpose of taking into account an amount payable or remittable by the registrant or the constructive importer as a result of the application of subsection (4).
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2007, c. 18, s. 13.
Non-residentDelivery to consignee of a non-residentFor the purposes of this Part, wherea registrant, under an agreement between the registrant and a non-resident person who is not registered under Subdivision d of Division V,makes a taxable supply in Canada of tangible personal property by way of sale, or a taxable supply in Canada of a service of manufacturing or producing tangible personal property, to the non-resident person, or acquires physical possession of tangible personal property (other than property of a person who is resident in Canada or is registered under Subdivision d of Division V) for the purpose of making a taxable supply of a commercial service in respect of the property to the non-resident person, andat any time causes physical possession of the property to be transferred, at a place in Canada, to a third person (in this subsection referred to as the “consignee”) or to the non-resident person, andthe non-resident person is not a consumer of the property or service supplied by the registrant under the agreement,the following rules apply:the registrant is deemed to have made to the non-resident person, and the non-resident person is deemed to have received from the registrant, a taxable supply of the property,where physical possession of the property was so transferred at a place in a participating province, that supply is, subject to subsections (2) and (3), deemed to have been made in that province,that supply is deemed to have been made for consideration, that becomes due and is paid at that time, equal towhere the registrant has caused physical possession of the property to be transferred to a consignee to whom the non-resident person has supplied the property for no consideration, nil, andin any other case, the fair market value of the property at that time, andwhere the registrant made a supply of a service referred to in subparagraph (a)(i) in respect of the property to the non-resident person, except in the case of a supply of a service of storing or shipping the property, the registrant is deemed not to have made that supply of the service.Exception where delivery to registrant consignee of a non-residentFor the purposes of this Part, wherea registrant, under an agreement between the registrant and a non-resident person who is not registered under Subdivision d of Division V,makes a taxable supply in Canada of tangible personal property by way of sale, or a taxable supply in Canada of a service of manufacturing or producing tangible personal property, to the non-resident person, or acquires physical possession of tangible personal property (other than property of a person who is resident in Canada) for the purpose of making a taxable supply of a commercial service in respect of the property to the non-resident person, andcauses physical possession of the property to be transferred, at a place in Canada, to a third person (in this subsection referred to as the “consignee”) who is registered under Subdivision d of Division V,the non-resident person is not a consumer of the property or service supplied by the registrant under the agreement, andthe consignee gives to the registrant, and the registrant retains, a certificate thatstates the consignee’s name and registration number assigned under subsection 241(1), andacknowledges that the consignee, on taking physical possession of the property, is assuming liability to pay or remit any amount that is or may become payable or remittable by the consignee under subsection (1) or Division IV in respect of the property,subsection (1) does not apply to a supply referred to in subparagraph (a)(i) and, except in the case of a supply of a service of shipping the property, any supply made by the registrant and referred to in that subparagraph is deemed to have been made outside Canada.Exception where exportFor the purposes of this Part, wherea registrant, under an agreement between the registrant and a non-resident person who is not registered under Subdivision d of Division V,makes a taxable supply in Canada of tangible personal property by way of sale to the non-resident person,makes a taxable supply in Canada of a service of manufacturing or producing tangible personal property to the non-resident person, oracquires physical possession of tangible personal property (other than the property of a person who is resident in Canada) for the purpose of making a taxable supply of a commercial service in respect of the property to the non-resident person,the non-resident person is not a consumer of the property or service supplied by the registrant under the agreement, andeitherthe registrant causes physical possession of the property to be transferred to a person at a place outside Canada or to a carrier, or the registrant mails the property, for export and delivery to a person at a place outside Canada, orall of the following conditions are met:the registrant causes physical possession of the property to be transferred at a place in Canada to the non-resident person or any other person (each of whom is referred to in this subparagraph as the “exporter”) for export,after physical possession of the property is transferred to the exporter, the exporter exports the property as soon as is reasonable having regard to the circumstances surrounding the exportation and, where applicable, the normal business practices of the exporter and the owner of the property,the property has not been acquired by the non-resident person or any owner of the property for consumption, use or supply in Canada at any time after physical possession of the property is transferred to the exporter and before the property is exported,after physical possession of the property is transferred to the exporter and before the property is exported, the property is not further processed, transformed or altered except to the extent reasonably necessary or incidental to its transportation, andthe registrant maintains evidence satisfactory to the Minister of the exportation of the property or, where the exporter is authorized under subsection 221.1(2), the exporter provides the registrant with a certificate in which the exporter certifies that the property will be exported in the circumstances described in clauses (B) to (D),subsection (1) does not apply to a supply referred to in paragraph (a) and, except in the case of a supply of a service of shipping the property, any supply made by the registrant and referred to in that paragraph is deemed to have been made outside Canada.Retention of possessionFor the purposes of this section, section 180 and paragraph (b) of the definition imported taxable supply in section 217, wherea particular registrant at any time transfers ownership of tangible personal property to a non-resident person, who is not registered under Subdivision d of Division V, under an agreement for the supply of the property, andthe particular registrant, or another registrant who has physical possession of the property at that time and who gives the particular registrant a certificate described in paragraph (2)(c), retains physical possession of the property after that time for the purpose oftransferring physical possession of the property to the non-resident person, a person (in this paragraph referred to as a “subsequent purchaser”) who subsequently acquires ownership of the property or a person designated by the non-resident person or a subsequent purchaser,making a supply of a commercial service in respect of the property to the non-resident person or a subsequent purchaser, orconsumption, use or supply by that registrant under an agreement for a supply of the property made by way of sale or lease to that registrant by the non-resident person, by a subsequent purchaser or by a lessee or sub-lessee of the non-resident person or of the subsequent purchaser,the following rules apply:where the particular registrant so retains physical possession of the property after that time, the particular registrant shall be deemed to have transferred physical possession of the property at that time to another registrant and to have obtained a certificate of the other registrant described in paragraph (2)(c) and to have acquired physical possession of the property at that time for the purpose referred to in paragraph (b), andwhere another registrant so retains physical possession of the property after that time, the particular registrant shall be deemed to have transferred physical possession of the property at that time to the other registrant and the other registrant shall be deemed to have acquired physical possession of the property at that time for the purpose referred to in paragraph (b).Transfer of possession to baileeFor the purposes of this section, section 180 and paragraph (b) of the definition imported taxable supply in section 217, where a registrant at any time transfers physical possession of tangible personal property to a bailee solely for the purpose of storing or shipping the property and eitherthe bailee is a carrier to whom physical possession of the property has been transferred solely for the purpose of shipping the property, orthe bailee has not, at or before that time, given the registrant a certificate described in paragraph (2)(c),the following rules apply:where, under the agreement with the bailee for storing or shipping the property, the bailee is required to transfer physical possession of the property to a person, other than the registrant, who is named at that time in the agreement,the registrant shall be deemed to have transferred physical possession of the property to that person at that time and that person shall be deemed to have acquired physical possession of the property at that time, andthe registrant shall be deemed not to have transferred physical possession of the property to the bailee and the bailee shall be deemed not to have acquired physical possession of the property, andwhere, under the agreement with the bailee for storing or shipping the property, the bailee is required to transfer physical possession of the property to the registrant or to another person (in this paragraph referred to as the “consignee”) who is to be identified at a later time,the registrant shall be deemed to retain physical possession of the property, and the bailee shall be deemed not to have acquired physical possession of the property, throughout the period beginning at that time and ending at the earliest ofthe time the consignee becomes identified,the time the bailee transfers physical possession of the property to the registrant, andwhere the bailee is not a carrier to whom physical possession of the property has been transferred for the sole purpose of shipping the property, the time the bailee gives the registrant a certificate of the bailee described in paragraph (2)(c),where the bailee is not a carrier to whom physical possession of the property has been transferred for the sole purpose of shipping the property and the bailee, at a particular time before the time the consignee becomes identified, gives the registrant a certificate of the bailee described in paragraph (2)(c), the registrant shall be deemed to have transferred physical possession of the property to the bailee at the particular time and the bailee shall be deemed to have acquired physical possession of the property at the particular time for the purpose of making a supply of a commercial service in respect of the property to the owner of the property under an agreement with the owner, andwhere the consignee becomes identified at a particular time before the bailee gives the registrant a certificate of the bailee described in paragraph (2)(c) in circumstances described in subparagraph (ii), the registrant shall be deemed to have transferred physical possession of the property to the consignee at the particular time and the consignee shall be deemed to have acquired physical possession of the property at the particular time,and, for the purposes of this paragraph, a consignee becomes identified at the earliest ofthe time the registrant gives the consignee such documents in writing as are sufficient to enable the consignee to require the bailee to transfer physical possession of the property to the consignee,the time the registrant directs the bailee in writing to transfer physical possession of the property to the consignee, andthe time the bailee transfers physical possession of the property to the consignee.Goods transferred to bailee by non-residentFor the purposes of this section, section 180 and paragraph (b) of the definition imported taxable supply in section 217, where a non-resident person who is not registered under Subdivision d of Division V transfers physical possession of tangible personal property to a bailee who is a registrant for the sole purpose of storing or shipping the property and the baileeis a carrier who is acquiring physical possession of the property for the sole purpose of shipping the property, ordoes not claim an input tax credit in respect of the property,the bailee shall be deemed not to have acquired physical possession of the property.Use of railway rolling stockFor the purpose of clause (3)(c)(ii)(C), if the only use of railway rolling stock after physical possession of it is transferred as described in that clause and before it is next exported is for the purpose of transporting tangible personal property or passengers in the course of that exportation and that exportation occurs within sixty days after the day on which the transfer takes place, that use of the rolling stock is deemed to take place entirely outside Canada.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 44;
1997, c. 10, ss. 30, 173;
2001, c. 15, s. 4.
Receipt of property from non-residentFor the purposes of determining an input tax credit of, or the amount of a rebate payable under section 259 or 260 to, a particular person, where a non-resident person who is not registered under Subdivision d of Division Veithermakes a supply of tangible personal property to the particular person and delivers the property, or makes it available, in Canada to the particular person before the property is used in Canada by or on behalf of the non-resident person, orwhere the particular person is a registrant, causes physical possession of tangible personal property to be transferred in Canada to the particular person in circumstances in which the particular person is acquiring physical possession of the property for the purpose of making a taxable supply of a commercial service in respect of the property to the non-resident person,has paid tax under Division III in respect of the importation of the property or has paid tax in respect of a supply of the property deemed under subsection 179(1) to have been made by a registrant, andprovides to the particular person evidence, satisfactory to the Minister, that the tax has been paid,the particular person shall be deemedto have paid, at the time the non-resident person paid that tax, tax in respect of a supply of the property to the particular person equal to that tax, andin a case described in subparagraph (a)(ii), to have acquired the property for use exclusively in commercial activities of the particular person.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 45.
International TravelDefinitionsThe definitions in this subsection apply in this section.international flightvol internationalinternational flight means any flight (other than a flight originating and terminating in Canada) of an aircraft that is operated by a person in the course of a business of supplying passenger transportation services.international voyagevoyage internationalinternational voyage means any voyage (other than a voyage originating and terminating in Canada) of a vessel that is operated by a person in the course of a business of supplying passenger transportation services.Delivery while on international travelFor the purposes of this Part, where a supply of tangible personal property or a service (other than a passenger transportation service) is made to an individual on board an aircraft on an international flight or a vessel on an international voyage and physical possession of the property is transferred to the individual, or the service is wholly performed, on board the aircraft or vessel, the supply is deemed to have been made outside Canada.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1997, c. 10, s. 31.
Coupons and RebatesDefinitionsThe definitions in this subsection apply in this section.couponboncoupon includes a voucher, receipt, ticket or other device but does not include a gift certificate or a barter unit (within the meaning of section 181.3).tax fractionfraction de taxetax fraction of a coupon value or of the discount or exchange value of a coupon meanswhere the coupon is accepted in full or partial consideration for a supply made in a participating province, the fractionA/BwhereAis the total of the rate set out in subsection 165(1) and the tax rate for that participating province, andBis the total of 100% and the percentage determined for A; andin any other case, the fractionC/DwhereCis the rate set out in subsection 165(1), andDis the total of 100% and the percentage determined for C.Acceptance of reimbursable couponFor the purposes of this Part, other than subsection 223(1), where at any time a registrant accepts, in full or partial consideration for a taxable supply of property or a service (other than a zero-rated supply), a coupon that entitles the recipient of the supply to a reduction of the price of the property or service equal to a fixed dollar amount specified in the coupon (in this subsection referred to as the “coupon value”) and the registrant can reasonably expect to be paid an amount for the redemption of the coupon by another person, the following rules apply:the tax collectible by the registrant in respect of the supply shall be deemed to be the tax that would be collectible if the coupon were not accepted;the registrant shall be deemed to have collected, at that time, a portion of the tax collectible equal to the tax fraction of the coupon value; andthe tax payable by the recipient in respect of the supply shall be deemed to be the amount determined by the formulaA - BwhereAis the tax collectible by the registrant in respect of the supply, andBis the tax fraction of the coupon value.Acceptance of non-reimbursable couponWhere at any time a registrant accepts, in full or partial consideration for a taxable supply of property or a service (other than a zero-rated supply), a coupon that entitles the recipient of the supply to a reduction of the price of the property or service equal to a fixed dollar amount specified in the coupon or a fixed percentage, specified in the coupon, of the price (the amount of which reduction is, in each case, referred to in this subsection as the “coupon value”) and the registrant can reasonably expect not to be paid an amount for the redemption of the coupon by another person,the registrant shall, for the purposes of this Part, treat the coupon asreducing the value of the consideration for the supply as provided for in subsection (4), ora partial cash payment that does not reduce the value of the consideration for the supply; andwhere the registrant treats the coupon as a partial cash payment that does not reduce the value of the consideration for the supply, paragraphs (2)(a) to (c) apply in respect of the supply and the coupon and the registrant may claim an input tax credit for the registrant’s reporting period that includes that time equal to the tax fraction of the coupon value.Acceptance of other couponsFor the purposes of this Part, if a registrant accepts, in full or partial consideration for a supply of property or a service, a coupon that may be exchanged for the property or service or that entitles the recipient of the supply to a reduction of, or a discount on, the price of the property or service and paragraphs (2)(a) to (c) do not apply in respect of the coupon, the value of the consideration for the supply is deemed to be the amount, if any, by which the value of the consideration for the supply as otherwise determined for the purposes of this Part exceeds the discount or exchange value of the coupon.Redemption of couponFor the purposes of this Part, where, in full or partial consideration for a taxable supply of property or a service, a supplier who is a registrant accepts a coupon that may be exchanged for the property or service or that entitles the recipient of the supply to a reduction of, or a discount on, the price of the property or service and a particular person at any time pays, in the course of a commercial activity of the particular person, an amount to the supplier for the redemption of the coupon, the following rules apply:the amount shall be deemed not to be consideration for a supply;the payment and receipt of the amount shall be deemed not to be a financial service; andif the supply is not a zero-rated supply and the coupon entitled the recipient to a reduction of the price of the property or service equal to a fixed dollar amount specified in the coupon (in this paragraph referred to as the “coupon value”), the particular person, if a registrant (other than a registrant who is a prescribed registrant for the purposes of subsection 188(5)) at that time, may claim an input tax credit for the reporting period of the particular person that includes that time equal to the tax fraction of the coupon value, unless all or part of that coupon value is an amount of an adjustment, refund or credit to which subsection 232(3) applies.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 46;
1994, c. 9, s. 10;
1997, c. 10, s. 174;
2000, c. 30, s. 33;
2006, c. 4, s. 7.
Previous VersionRebatesWherea registrant makes a taxable supply in Canada of property or a service (other than a zero-rated supply),a particular person acquires the property or service, either from the registrant or from another person,the registrant pays, at any time, a rebate in respect of the property or service to the particular person and therewith provides written indication that a portion of the rebate is an amount on account of tax, andsubsection 232(3) does not apply to the rebate,the following rules apply:the registrant may claim an input tax credit for the reporting period of the registrant that includes that time equal to the product obtained when the amount of the rebate is multiplied by the fraction (in this section referred to as the “tax fraction in respect of the rebate”)A/BwhereAisif tax under subsection 165(2) was payable in respect of the supply of the property or service to the particular person, the total of the rate set out in subsection 165(1) and the tax rate of the participating province in which that supply was made, andin any other case, the rate set out in subsection 165(1), andBis the total of 100% and the percentage determined for A, andwhere the particular person is a registrant who was entitled to claim an input tax credit, or a rebate under Division VI, in respect of the acquisition of the property or service, the particular person shall be deemed, for the purposes of this Part, to have made a taxable supply and to have collected, at that time, tax in respect of the supply equal to the amount determined by the formulaA × (B/C) × DwhereAis the tax fraction in respect of the rebate,Bis the input tax credit or rebate under Division VI that the particular person was entitled to claim in respect of the acquisition of the property or service,Cis the tax payable by the particular person in respect of the acquisition of the property or service, andDis the amount of the rebate paid to the particular person by the registrant.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 46;
1997, c. 10, s. 175;
2006, c. 4, s. 8.
Previous VersionGift certificatesFor the purposes of this Part, the issuance or sale of a gift certificate for consideration shall be deemed not to be a supply and, when given as consideration for a supply of property or a service, the gift certificate shall be deemed to be money.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 46.
DefinitionsThe definitions in this subsection apply in this section.administratoradministrateuradministrator of a barter exchange network means the person who is responsible for administering, maintaining or operating a system of accounts, to which barter units may be credited, of members of the network.barter exchange networkréseau de trocbarter exchange network means a group of persons each member of which has agreed in writing to accept as full or partial consideration for the supply of property or services by that particular member to any other member of that group one or more credits (in this section referred to as “barter units”) on an account of the particular member maintained or operated by a single administrator of all such accounts of the members, which credits can be used as full or partial consideration for supplies of property or services between members of that group.Application for designationThe administrator of a barter exchange network may make an application to the Minister, in prescribed form containing prescribed information and filed in prescribed manner, to have the network designated for the purposes of subsection (5).Designation of barter exchange networkOn application by an administrator of a barter exchange network under subsection (2), the Minister may designate the barter exchange network for the purposes of subsection (5), in which case the Minister shall notify the administrator in writing of the designation and its effective date.Notification by administratorOn receipt of a notification by the Minister of a designation of a barter exchange network, the administrator of the network shall, within a reasonable time, notify each member of the network in writing of the designation and its effective date.Exchange of barter unitIf a member of a barter exchange network or the administrator of a barter exchange network gives, while a designation of the network under subsection (3) is in effect, property, a service or money in exchange for a barter unit, the value of that property, service or money as consideration for the barter unit is, for the purposes of this Part and despite section 155, deemed to be nil.Deemed non-financial servicesFor the purposes of this Part, each of the following is deemed not to be a financial service:the operation, maintenance or administration of a system of accounts, to which barter units can be credited, of members of a barter exchange network;the crediting of a barter unit to such an account;the supply, receipt or redemption of a barter unit; andthe agreeing to provide, or the arranging for, anything referred to in any of paragraphs (a) to (c).
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2000, c. 30, s. 34.
Forfeiture, extinguished debt, etc.For the purposes of this Part, where at any time, as a consequence of the breach, modification or termination after 1990 of an agreement for the making of a taxable supply (other than a zero-rated supply) of property or a service in Canada by a registrant to a person, an amount is paid or forfeited to the registrant otherwise than as consideration for the supply, or a debt or other obligation of the registrant is reduced or extinguished without payment on account of the debt or obligation,the person is deemed to have paid, at that time, an amount of consideration for the supply equal to the amount determined by the formula(A/B) × CwhereAis 100%,Bisif tax under subsection 165(2) was payable in respect of the supply, the total of 100%, the rate set out in subsection 165(1) and the tax rate for the participating province in which the supply was made, andin any other case, the total of 100% and the rate set out in subsection 165(1), andCis the amount paid, forfeited or extinguished, or by which the debt or obligation was reduced, as the case may be; andthe registrant is deemed to have collected, and the person is deemed to have paid, at that time, all tax in respect of the supply that is calculated on that consideration, which is deemed to be equal towhere tax under subsection 165(2) was payable in respect of the supply, the total of the tax under that subsection and under subsection 165(1) calculated on that consideration, andin any other case, tax under subsection 165(1) calculated on that consideration.TransitionalParagraph (1)(b) does not apply in respect of amounts paid or forfeited, and debts or other obligations reduced or extinguished, as a consequence of a breach, modification or termination of an agreement wherethe agreement was entered into in writing before 1991;the amount is paid or forfeited, or the debt or other obligation is reduced or extinguished, as the case may be, after 1992; andtax in respect of the amount paid, forfeited or extinguished, or by which the debt or obligation was reduced, as the case may be, was not contemplated in the agreement.Application of Division IXDivision IX does not apply for the purposes of subsection (1).ExceptionSubsection (1) does not apply to that part of any amount paid or forfeited in respect of the breach, modification or termination of an agreement for the making of a supply where that part isan additional amount that is charged to a person because the consideration for the supply is not paid within a reasonable period and is such an amount referred to in section 161;an amount paid by one railway corporation to another railway corporation as or on account of a penalty for failure to return rolling stock within a stipulated time; oran amount paid as or on account of demurrage.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 46;
1997, c. 10, ss. 32, 176;
2006, c. 4, s. 9.
Previous VersionSeizure and repossessionWhere at any time after 1990 property of a person is, for the purpose of satisfying in whole or in part a debt or obligation owing by the person to another person (in this section referred to as the “creditor”), seized or repossessed by the creditor under a right or power exercisable by the creditor (other than a right or power that the creditor has under, or because of being a party to, a lease, licence or similar arrangement by which the person acquired the property),for the purposes of this Part, the person shall be deemed to have made, and the creditor shall be deemed to have received, at that time, a supply by way of sale of the property;for the purposes of this Part (other than sections 193 and 257), that supply shall be deemed to have been made for no consideration;where the supply referred to in paragraph (a) is a taxable supply of real property, for the purposes of sections 193 and 257, the tax payable in respect of the supply shall be deemed to be equal to tax calculated on the fair market value of the property at that time; andwhere the supply referred to in paragraph (a) is a supply of real property included in section 9 of Part I of Schedule V, in section 1 of Part V.1 of that Schedule or in section 25 of Part VI of that Schedule, for the purposes of sections 193 and 257, the supply is deemed to be a taxable supply and the tax payable in respect of the supply is deemed to be equal to tax calculated on the fair market value of the property at that time.Supply in commercial activitySubject to subsection (3), where at any time a creditor who has seized or repossessed property, in circumstances in which subsection (1) applies, makes a particular supply (other than an exempt supply) of the property, except where any of subsections (4) to (6) applied at an earlier time in respect of the use of the property by the creditor, the creditor shall be deemed, for the purposes of this Part, to have made the particular supply in the course of a commercial activity of the creditor and anything done by the creditor in the course of, or in connection with, the making of the supply and not in connection with the seizure or repossession shall be deemed to have been done in the course of the commercial activity.Court seizuresWhere a court, for the purposes of satisfying an amount owing under a judgment of the court, orders a sheriff, bailiff or other officer of the court to seize property of the judgment debtor and subsequently makes a supply of the property, the supply of the property by the court shall be deemed, for the purposes of this Part, to be a supply made otherwise than in the course of a commercial activity.Use of real propertyFor the purposes of this Part, where a creditor who has seized or repossessed real property in circumstances in which subsection (1) applies or would, but for subsection (11), apply, begins at any time to use the property otherwise than in the making of a supply of the property, the creditor shall be deemed to have made a supply of the property at that time and, except where the supply is an exempt supply,to have collected, at that time, tax in respect of the supply equal to the amount determined by the formula(A/B) × CwhereAisif the supply is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for that province, andin any other case, the rate set out in subsection 165(1),Bis the total of 100% and the percentage determined for A, andCis the fair market value of the property at that time; andto have acquired the property and paid that tax at that time.Use of personal property seized before 1994For the purposes of this Part, where a creditor who has seized or repossessed personal property from a person before 1994, in circumstances in which subsection (1) applies or would, but for subsection (11), apply, begins at a particular time to use the property otherwise than in the making of a supply of the property, the following rules apply:the creditor is deemed to have received, immediately after the particular time, a particular supply by way of sale of the property; andwhere tax would have been payable had the property been purchased in Canada from the person at the time it was seized or repossessed, the creditor shall be deemedto have made, at the particular time, a taxable supply of the property and to have collected, at the particular time, tax in respect of that supply equal to the amount determined by the formula(A/B) × CwhereAisif the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, andin any other case, the rate set out in subsection 165(1),Bis the total of 100% and the percentage determined for A, andCis the fair market value of the property at the time it was seized or repossessed, andto have paid, immediately after the particular time, tax in respect of the particular supply equal to the amount determined under subparagraph (i).Use of personal property seized after 1993For the purposes of this Part, where a creditor who has seized or repossessed personal property from a person after 1993, in circumstances in which subsection (1) applies or would, but for subsection (11), apply, begins at a particular time to use the property otherwise than in the making of a supply of the property,the creditor is deemedto have received, immediately after the particular time, a supply by way of sale of the property, andexcept wherethat supply is a zero-rated supply, orin the case of property that was, at the time it was seized or repossessed, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property, tax would not have been payable had the property been purchased in Canada from the person at that time,to have paid, immediately after the particular time, all tax payable in respect of the supply, which is deemed to be equal to the amount determined by the formula(A/B) × CwhereAisthe rate set out in subsection 165(1) ifthe property is situated in a participating province at the particular time, it was seized or repossessed before the day that is three years after the harmonization date for that province and tax would not have been payable had the property been purchased in Canada from the person at the time it was seized or repossessed, orthe property is situated in a non-participating province at the particular time, andin any other case, the total of the rate set out in subsection 165(1) and the tax rate for the participating province in which the property is situated at the particular time,Bis the total of 100% and the percentage determined for A, andCis the fair market value of the property at the time it was seized or repossessed; andwhere tax would have been payable had the property been purchased in Canada from the person at the time it was seized or repossessed, the creditor is deemed to have made, at the particular time, a taxable supply of the property and to have collected, at the particular time, all tax payable in respect of that supply, which is deemed to be equal to the amount determined by the formula(A/B) × CwhereAisif the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, andin any other case, the rate set out in subsection 165(1),Bis the total of 100% and the percentage determined for A, andCis the fair market value of the property at the time it was seized or repossessed.Sale of personal propertyFor the purposes of this Part, where a creditor who has seized or repossessed personal property from a person in circumstances in which subsection (1) applies makes at any time a particular taxable supply of the property by way of sale (other than a supply deemed under this Part to have been made), the creditor was not deemed under subsection (5), (6) or (8) to have received a supply of the property at an earlier time and no tax would have been payable by the creditor had the creditor purchased the property from the person in Canada at the time it was seized or repossessed, except wherethe particular supply is made outside Canada or is a zero-rated supply, andthe property was seized or repossessed by the creditor before 1994 or was, at the time of the seizure or repossession, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property,the creditor shall be deemedto have received a supply by way of sale of the property immediately before that time for consideration equal to the consideration for the particular supply, andexcept if the supply deemed under paragraph (c) to have been received is a zero-rated supply, to have paid, immediately before that time, all tax payable in respect of the supply deemed to have been received, which is deemed to be equal to the amount determined by the formulaA - BwhereAisifthe property was seized or repossessed in a participating province by the creditor before the day that is three years after the harmonization date for that province and the particular supply is either made outside Canada or is a zero-rated supply, oreither the property was seized or repossessed in a non-participating province or the particular supply is a supply (other than a zero-rated supply) made in a non-participating province,tax under subsection 165(1) calculated on that consideration, andin any other case, the total oftax under subsection 165(1) calculated on that consideration, andtax under subsection 165(2) calculated on that consideration at the lesser of the tax rate for the participating province in which the particular supply is made and the tax rate for the participating province in which the property was seized or repossessed, andBis the total of all amounts each of which is an input tax credit or a rebate under this Part that the creditor was entitled to claim in respect of the property or an improvement thereto.Lease of personal propertyFor the purposes of this Part, if at a particular time a creditor who has seized or repossessed personal property from a person in circumstances in which subsection (1) applies makes a particular taxable supply of the property by way of lease, licence or similar arrangement for the first lease interval (within the meaning of subsection 136.1(1)) in respect of the arrangement, the creditor was not deemed under subsection (5) or (6) to have received a supply of the property at an earlier time and no tax would have been payable had the property been purchased in Canada from the person at the time it was seized or repossessed, except ifthe particular supply is made outside Canada or is a zero-rated supply, andthe property was seized or repossessed by the creditor before 1994 or was, at the time it was seized or repossessed, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property,the creditor shall be deemedto have received a supply by way of sale of the property immediately before the particular time, andexcept if that supply is a zero-rated supply, to have paid, immediately before the particular time, all tax payable in respect of that supply, which is deemed to be equal toifthe property was seized or repossessed in a participating province by the creditor before the day that is three years after the harmonization date for that province and the particular supply is either made outside Canada or is a zero-rated supply, oreither the property was seized or repossessed in a non-participating province or the particular supply is a supply (other than a zero-rated supply) made in a non-participating province,tax under subsection 165(1) calculated on the fair market value of the property at the time it was seized or repossessed, andin any other case, the total oftax under subsection 165(1) calculated on that fair market value, andtax under subsection 165(2) calculated on that fair market value at the lesser of the tax rate for the participating province in which the particular supply is made and the tax rate for the participating province in which the property was seized or repossessed.Voluntary transferFor the purposes of this section, where property is at any time voluntarily transferred by a particular person to another person for the purpose of satisfying in whole or in part a debt or obligation in respect of which the particular person is in default, the other person shall be deemed to have seized or repossessed the property from the particular person at that time in circumstances in which subsection (1) applies.Debt security, etc.For the purposes of this Part, wherefor the purposes of satisfying in whole or in part a debt or obligation owing by a person, a creditor exercises a right under an Act of Parliament or the legislature of a province or an agreement relating to a debt security to cause the supply of property,subsection (3) does not apply to the supply, anda receiver (within the meaning assigned by subsection 266(1)) does not have authority in respect of the property,the creditor shall be deemed to have seized the property immediately before that supply and that supply shall be deemed to have been made by the creditor and not by the person.Redemption of propertyFor the purposes of this Part, wherefor the purposes of satisfying in whole or in part a debt or obligation owing by a person (in this subsection referred to as the “debtor”), a creditor exercises a right under an Act of Parliament or the legislature of a province or an agreement relating to a debt security to cause the supply of property (in this subsection referred to as the “first supply”),the recipient of the first supply has paid an amount (in this subsection referred to as the “tax amount”) as or on account of tax with respect to that supply, andunder the Act or the agreement, the debtor has a right to redeem the property and the debtor exercises that right,the following rules apply:the redemption of the property is deemed to be a supply of the property made by way of sale by the recipient of the first supply to the debtor for no consideration, andwhere the property was redeemed from the recipient of the first supply and an amount has been reimbursed by the debtor to the creditor or that recipient on account of the tax amount,except for the purposes of this section, the debtor is deemed not to have supplied the property to the creditor under subsection (1) or to have received a supply of the property at the time of the redemption,the debtor is deemed, for the purposes of section 261, to have paid tax in error at the time of the redemption equal to the amount so reimbursed,where the tax amount has been included in determining a rebate or an input tax credit claimed by that recipient in an application or return, the amount of the rebate or the input tax credit shall be added in determining the net tax of that recipient for the reporting period in which the property was redeemed, andthe tax amount shall not be included in determining a rebate or an input tax credit claimed by that recipient in an application or a return filed after the redemption of the property.Application of s. 266Where a creditorexercises a right or power to seize or repossess property for the purpose of satisfying in whole or in part a debt or obligation owing by a person and is, in respect of the property, a receiver (within the meaning assigned by subsection 266(1)), orappoints an agent to exercise a right or power to seize or repossess property for the purpose of satisfying in whole or in part a debt or obligation owing by a person and the agent is, in respect of the property, a receiver (within the meaning assigned by subsection 266(1)),subsections (1), (2) and (7) to (9) do not apply and section 266 applies.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 47;
1997, c. 10, ss. 33, 177;
2000, c. 30, s. 35;
2006, c. 4, s. 10;
2009, c. 32, s. 10.
Previous VersionProperty Acquired by Insurers on Settlement of ClaimSupply to insurer on settlement of claimFor the purposes of this Part, where at any time after 1990 property of a person is transferred to an insurer in the course of settling an insurance claim, the following rules apply:for the purposes of this Part, the person shall be deemed to have made, and the insurer shall be deemed to have received, at that time, a supply by way of sale of the property;for the purposes of this Part (other than sections 193 and 257), that supply shall be deemed to have been made for no consideration;in the case of a taxable supply of real property, for the purposes of sections 193 and 257, the tax payable in respect of the supply shall be deemed to be equal to tax calculated on the fair market value of the property at that time; andin the case of a supply of real property included in section 9 of Part I of Schedule V, in section 1 of Part V.1 of that Schedule or in section 25 of Part VI of that Schedule, for the purposes of sections 193 and 257, the supply is deemed to be a taxable supply and the tax payable in respect of the supply is deemed to be equal to tax calculated on the fair market value of the property at that time.Supply in commercial activityWhere at any time an insurer makes a particular supply (other than an exempt supply) of property transferred to the insurer in circumstances in which subsection (1) applies, except where any of subsections (3) to (5) applied at an earlier time in respect of the use of the property by the insurer, the insurer shall be deemed, for the purposes of this Part, to have made the particular supply in the course of a commercial activity of the insurer and anything done by the insurer in the course of, or in connection with, the making of the supply and not in connection with the transfer of the property shall be deemed to have been done in the course of the commercial activity.Use of real propertyFor the purposes of this Part, where at any time an insurer to whom real property has been transferred, in circumstances in which subsection (1) applies, begins to use the property otherwise than in the making of a supply of the property, the insurer shall be deemed to have made a supply of the property at that time and, except where the supply is an exempt supply,to have collected, at that time, tax in respect of the supply equal to the amount determined by the formula(A/B) × CwhereAisif the supply is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for that province, andin any other case, the rate set out in subsection 165(1),Bis the total of 100% and the percentage determined for A, andCis the fair market value of the property at that time; andto have acquired the property and paid that tax at that time.Use of personal property transferred before 1994For the purposes of this Part, where an insurer to whom personal property has been transferred from a person before 1994, in circumstances in which subsection (1) applies, begins at a particular time to use the property otherwise than in the making of a supply of the property, the following rules apply:the insurer is deemed to have received, immediately after the particular time, a particular supply by way of sale of the property; andwhere tax would have been payable had the property been purchased in Canada from the person for consideration at the time it was transferred, the insurer shall be deemedto have made, at the particular time, a taxable supply of the property and to have collected, at the particular time, tax in respect of that supply equal to the amount determined by the formula(A/B) × CwhereAisif the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, andin any other case, the rate set out in subsection 165(1),Bis the total of 100% and the percentage determined for A, andCis the fair market value of the property at the time it was transferred, andto have paid, immediately after the particular time, tax in respect of the particular supply equal to the amount determined under subparagraph (i).Use of personal property transferred after 1993For the purposes of this Part, where an insurer to whom personal property has been transferred from a person after 1993, in circumstances in which subsection (1) applies, begins at a particular time to use the property otherwise than in the making of a supply of the property,the insurer is deemedto have received, immediately after the particular time, a supply by way of sale of the property, andexcept wherethat supply is a zero-rated supply, orin the case of property that was, at the time it was transferred, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property, tax would not have been payable had the property been purchased in Canada from the person at that time,to have paid, immediately after the particular time, all tax payable in respect of that supply, which is deemed to be equal to the amount determined by the formula(A/B) × CwhereAisthe rate set out in subsection 165(1) ifthe property is situated in a participating province at the particular time, it was transferred before the day that is three years after the harmonization date for that province and tax would not have been payable had the property been purchased in Canada from the person at the time it was transferred, orthe property is situated in a non-participating province at the particular time, andin any other case, the total of the rate set out in subsection 165(1) and the tax rate for the participating province in which the property is situated at the particular time,Bis the total of 100% and the percentage determined for A, andCis the fair market value of the property at the time it was transferred; andwhere tax would have been payable had the property been purchased in Canada from the person at the time it was transferred, the insurer is deemed to have made, at the particular time, a taxable supply of the property and to have collected, at the particular time, all tax payable in respect of that supply, which is deemed to be equal to the amount determined by the formula(A/B) × CwhereAisif the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, andin any other case, the rate set out in subsection 165(1),Bis the total of 100% and the percentage determined for A, andCis the fair market value of the property at the time it was transferred.Sale of personal propertyFor the purposes of this Part, where an insurer to whom personal property has been transferred from a person in circumstances in which subsection (1) applies makes at any time a particular taxable supply of the property by way of sale (other than a supply deemed under this Part to have been made), the insurer was not deemed under subsection (4), (5) or (7) to have received a supply of the property at an earlier time and no tax would have been payable by the insurer had the insurer purchased the property from the person in Canada at the time it was transferred, except wherethe particular supply is made outside Canada or is a zero-rated supply, andthe property was transferred to the insurer before 1994 or was, at the time of the transfer, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property,the insurer shall be deemedto have received a supply by way of sale of the property immediately before that time for consideration equal to the consideration for the particular supply, andexcept if the supply deemed under paragraph (c) to have been received is a zero-rated supply, to have paid, immediately before that time, all tax payable in respect of the supply deemed to have been received, which is deemed to be equal to the amount determined by the formulaA - BwhereAisifthe property was last held by the person in a participating province before being transferred to the insurer, the property was so transferred before the day that is three years after the harmonization date for that province and the particular supply is either made outside Canada or is a zero-rated supply, oreither the property was last held by the person in a non-participating province before being transferred or the particular supply is a supply (other than a zero-rated supply) made in a non-participating province,tax under subsection 165(1) calculated on that consideration, andin any other case, the total oftax under subsection 165(1) calculated on that consideration, andtax under subsection 165(2) calculated on that consideration at the lesser of the tax rate for the participating province in which the particular supply is made and the tax rate for the participating province in which the property was last held by the person before being transferred, andBis the total of all amounts each of which is an input tax credit or a rebate under this Part that the insurer was entitled to claim in respect of the property or an improvement thereto.Lease of personal propertyFor the purposes of this Part, if, at a particular time, an insurer to whom personal property has been transferred from a person in circumstances in which subsection (1) applies makes a particular taxable supply of the property by way of lease, licence or similar arrangement for the first lease interval (within the meaning of subsection 136.1(1)) in respect of the arrangement, the insurer was not deemed under subsection (4) or (5) to have received a supply of the property at an earlier time and no tax would have been payable had the property been purchased in Canada from the person at the time the property was transferred, except ifthe particular supply is made outside Canada or is a zero-rated supply, andthe property was transferred to the insurer before 1994 or was, at the time it was transferred, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property,the insurer shall be deemedto have received a supply by way of sale of the property immediately before the particular time, andexcept if that supply is a zero-rated supply, to have paid, immediately before the particular time, all tax payable in respect of that supply, which is deemed to be equal toifthe property was last held by the person in a participating province before being transferred to the insurer, the property was so transferred before the day that is three years after the harmonization date for that province and the particular supply is either made outside Canada or is a zero-rated supply, oreither the property was last held by the person in a non-participating province before being transferred or the particular supply is a supply (other than a zero-rated supply) made in a non-participating province,tax under subsection 165(1) calculated on the fair market value of the property at the time it was transferred, andin any other case, the total oftax under subsection 165(1) calculated on that fair market value, andtax under subsection 165(2) calculated on that fair market value at the lesser of the tax rate for the participating province in which the particular supply is made and the tax rate for the participating province in which the property was last held by the person before being transferred.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 48;
1997, c. 10, ss. 34, 178;
2000, c. 30, s. 36;
2006, c. 4, s. 11;
2009, c. 32, s. 11.
Previous VersionCarrying on constructionIn this section, 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.Performance bondsIf a person (in this subsection 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 real property situated in Canada carries on the particular construction that is undertaken in full or partial satisfaction of the surety’s obligations under the bond,for the purposes of this Part, other than those described in paragraph (b), if the surety is entitled to receive at any time from the obligee, by reason of carrying on the particular construction, an amount (in this subsection referred to as a “contract payment”) that is not an amount the tax in respect of which was or will be required to be included in determining the net tax of the principal under the bond and is not an amount paid or payable as or on account of either tax under this Part or a tax, duty or fee payable by the obligee that is prescribed for the purposes of section 154,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,sections 150, 156 and 166 do not apply to that supply, andthe contract payment is deemed to be consideration for that supply;for the purposes of determining the extent to which property or a service is acquired, imported or brought into a participating province by the surety for consumption, use or supply in the course of commercial activities and the extent to which the property or service is consumed, used or supplied by the surety in the course of commercial activities, the carrying on of the particular construction is deemed not to be for the purpose of making a taxable supply and not to be a commercial activity of the surety;despite paragraph (b), if paragraph (a) deems a surety to be making a taxable supply, any property or service (each of which is, in this section, referred to as a “direct input”) that the surety acquires, imports or brings into a participating province for consumption, use or supply exclusively and directly in the course of carrying on the particular construction and not for use as capital property of the surety or in improving capital property of the surety is deemed, for the purposes of this Part other than sections 155 and 156 and Divisions IV and IV.1, to have been acquired, imported or brought in by the surety for consumption, use or supply exclusively in the course of commercial activities of the surety; andthe total amount of all input tax credits in respect of direct inputs that the surety is entitled to claim is equal to the lesser of that total determined without reference to this paragraph andifthe amount determined by the formulaA × BwhereAisif the supply deemed under subparagraph (a)(i) to be made by the surety is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for the participating province, andin any other case, the rate set out in subsection 165(1), andBis the total of all contract payments (other than contract payments that are not in respect of the particular construction)exceedsthe total of all amounts, each of which would be an input tax credit of the surety in respect of a direct input but for the fact that tax is not payable by the surety in respect of the acquisition, importation or bringing into a participating province of the direct input because of section 150 or 167 or because of the fact that the surety is deemed to have acquired or imported it, or brought it in, for consumption, use or supply exclusively in the course of commercial activities,that excess, andin any other case, zero.Determining credit for construction inputsIf a person acquires, imports or brings into a participating province property or a service for consumption, use or supply exclusively and directly in the course of carrying on construction that includes the particular construction that is undertaken in full or partial satisfaction of the person’s obligations as a surety under a performance bond and other construction, for the purposes of this section and of determining an input tax credit of the person and the total amount of all input tax credits of the person in respect of direct inputs that the person is entitled to claim,despite section 138, that part (in this subsection referred to as the “particular construction input”) of the property or service that is for consumption, use or supply in the course of carrying on the particular construction and the remaining part (in this subsection referred to as the “additional construction input”) of the property or service are each deemed to be a separate property or service that does not form part of the other;the particular construction input is deemed to have been acquired, imported or brought in, as the case may be, exclusively and directly for use in the course of carrying on the particular construction;the additional construction input is deemed not to have been acquired, imported or brought in, as the case may be, for consumption, use or supply in the course of carrying on the particular construction;the tax payable in respect of the supply, importation or bringing in, as the case may be, of the particular construction input is deemed to be equal to the amount determined by the formulaA × BwhereAis the tax payable (in this subsection referred to as the “total tax payable”) by the person in respect of the supply, importation or bringing in, as the case may be, of the property or service, determined without reference to this subsection, andBis the extent (expressed as a percentage) to which the property or service was acquired, imported or brought in, as the case may be, for consumption, use or supply in the course of carrying on the particular construction; andthe tax payable in respect of the additional construction input is deemed to be equal to the difference between the total tax payable and the amount determined under paragraph (d).
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2000, c. 30, s. 37;
2006, c. 4, s. 12.
Previous VersionProperty and Services for Financial ServicesFinancial services – input tax creditsIf tax in respect of property or a service acquired, imported or brought into a participating province by a registrant becomes payable by the registrant at a time when the registrant is neither a listed financial institution nor a person that is a financial institution because of paragraph 149(1)(b), for the purpose of determining an input tax credit of the registrant in respect of the property or service and for the purposes of Subdivision d, to the extent (determined in accordance with subsections 141.01(2) and 141.02(6)) that the property or service was acquired, imported or brought into the province, as the case may be, for consumption, use or supply in the course of making supplies of financial services that relate to commercial activities of the registrant,if the registrant is a financial institution because of paragraph 149(1)(c), the property or service is deemed, despite subsections 141.01(2) and 141.02(6), to have been so acquired, imported or brought into the province for consumption, use or supply in the course of those commercial activities except to the extent that the property or service was so acquired, imported or brought into the province for consumption, use or supply in the course of activities of the registrant that relate tocredit cards or charge cards issued by the registrant, orthe making of any advance, the lending of money or the granting of any credit; andin any other case, the property or service is deemed, despite subsections 141.01(2) and 141.02(6), to have been so acquired, imported or brought into the province for consumption, use or supply in the course of those commercial activities.Financial service relating to commercial activityFor the purposes of subsection (1), financial services shall be deemed not to be related to commercial activities of an individual, except to the extent that the revenues and expenses relating to the services are taken into account in determining the individual’s income from a business for the purposes of the Income Tax Act.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1994, c. 9, s. 11;
1997, c. 10, ss. 35, 179;
2010, c. 12, s. 60.
Previous VersionRelated corporationsWherea registrant (in this subsection referred to as the “parent”) that is a corporation resident in Canada at any time acquires, imports or brings into a participating province particular property or a service that can reasonably be regarded as having been so acquired, imported or brought into the province for consumption or use in relation to shares of the capital stock, or indebtedness, of another corporation that is at that time related to the parent, andat the time that tax in respect of the acquisition, importation or bringing in becomes payable, or is paid without having become payable, by the parent, all or substantially all of the property of the other corporation is property that was last acquired or imported by the other corporation for consumption, use or supply by the other corporation exclusively in the course of its commercial activities,except where subsection (2) applies, for the purpose of determining an input tax credit of the parent, the parent is deemed to have acquired or imported the particular property or service or brought it into the participating province, as the case may be, for use in the course of commercial activities of the parent to the extent that the parent can reasonably be regarded as having so acquired or imported the particular property or service, or as having so brought it into the province, for consumption or use in relation to the shares or indebtedness.Takeover feesFor the purposes of this Part, ifa registrant that is a corporation resident in Canada (in this subsection referred to as the “purchaser”) acquires, imports or brings into a participating province a particular property or service relating to the acquisition or proposed acquisition by it of all or substantially all of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of another corporation, andthroughout the period beginning when the performance of the particular service began or when the purchaser acquired, imported or brought into the participating province, as the case may be, the particular property and ending at the later of the times referred to in paragraph (c), all or substantially all of the property of the other corporation was property that was acquired or imported for consumption, use or supply exclusively in the course of commercial activities,the particular property or service is deemed to have been acquired, imported or brought into the participating province for use exclusively in the course of commercial activities of the purchaser and, for the purpose of claiming an input tax credit, any tax in respect of the supply of the particular property or service to the purchaser, or the importation or bringing in of the particular property by the purchaser, is deemed to have become payable and been paid by the purchaser on the later ofthe later of the day the purchaser acquired all or substantially all of the shares and the day the intention to acquire the shares was abandoned, andthe day the tax became payable or was paid by the purchaser.Shares, etc., held by corporationWhere at any time all or substantially all of the property of a particular corporation is property that was acquired or imported by it for consumption, use or supply exclusively in the course of its commercial activities, all shares of the capital stock of the particular corporation owned by, and all indebtedness of the particular corporation owed to, any other corporation that is related to the particular corporation shall, for the purposes of this section, be deemed to be, at that time, property that was acquired by the other corporation for use exclusively in the course of its commercial activities.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 49;
1997, c. 10, s. 180;
2000, c. 30, s. 38.
Bets and Games of ChanceBets and games of chanceFor the purposes of this Part, where a particular person bets an amount on a game of chance, a race or other event or occurrence, the following rules apply:the person with whom the bet is placed is deemed to have made a supply of a service to the particular person;where the bet is placed in a participating province, that supply is deemed to have been made in that province; andthe consideration for that supply is deemed to be equal to the amount determined by the formula(A/B) × (C - D)whereAis 100%,Bisif that supply is made in a participating province, the total of 100%, the rate set out in subsection 165(1) and the tax rate for that province, andin any other case, the total of 100% and the rate set out in subsection 165(1),Cis the total amount in respect of the bet that is given by the particular person to the person with whom the bet is placed, including any amount given as or on account of tax imposed on the particular person under an Act of the legislature of a province or under this Part, andDis the amount of any tax imposed under an Act of the legislature of a province on the particular person in respect of the amount that is bet.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 50;
1997, c. 10, s. 181;
2006, c. 4, s. 13.
Previous VersionPrizesPrizesIf a commercial activity of a registrant (other than a registrant to whom subsection (5) applies) consists of taking bets or conducting games of chance and, in the course of that activity, the registrant pays an amount of money at any time in a reporting period as a prize or winnings to a bettor or a person playing or participating in the games, for the purpose of determining an input tax credit of the registrant, the registrant shall be deemed to have received at that time a taxable supply of a service for use exclusively in the activity and to have paid, at that time, tax in respect of the supply equal to the amount determined by the formula(A/B) × CwhereAisif the supply is made in a participating province, the total of the rate set out in subsection 165(1) and the tax rate for that province, andin any other case, the rate set out in subsection 165(1),Bis the total of 100% and the percentage determined for A, andCis the amount of money paid as the prize or winnings.Prizes in competitive eventsWhere, in the course of an activity that involves the organization, promotion hosting or other staging of a competitive event, a person gives a prize to a competitor in the event,the giving of the prize shall be deemed, for the purposes of this Part, not to be a supply;the prize shall be deemed, for the purposes of this Part, not to be consideration for a supply by the competitor to the person; andtax payable by the person in respect of any property given as the prize shall not be included in determining any input tax credit of the person for any reporting period.Contributions by competitorsFor the purposes of this Part, where a competitor in a competitive event contributes an amount to the prizes to be given to competitors in the event, the contribution shall be deemed not to be consideration for a supply.Application of subsection (3)Subsection (3) does not apply in respect of a contribution that is made as part of a fee or charge paid by a competitor in a competitive event for the right or privilege of participating in the event and that is not separately identified as a contribution to the prizes.Net tax of prescribed registrantWhere a registrant is a prescribed registrant at any time in a reporting period, the registrant’s net tax for the period shall be determined in a prescribed manner.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 51;
1994, c. 9, s. 12(F);
2006, c. 4, s. 14.
Previous VersionDefinitionsIn this section,distributordistributeurdistributor of an issuer means a person whoas agent of the issuer, supplies rights of the issuer on behalf of the issuer,on the person’s own behalf supplies rights of the issuer,accepts, on behalf of the issuer, a bet on a game of chance conducted by the issuer, ormakes a specified gaming machine supply to the issuer;gaming machineappareil de jeugaming machine means a machine by the operation of which by a person, the person plays a game of chance in which the element of chance is provided by means of the machine, but does not include a machine that dispenses a ticket, token or other device evidencing the right to play or participate in, or receive a prize or winnings in, one or more games of chance unless the device is, for each of those games, sufficient evidence, and in the case of a printed device, contains sufficient information, to ascertain whether the holder of the device is entitled to receive a prize or winnings without reference to any other information;issuerémetteurissuer means a registrant who is a prescribed registrant for the purposes of subsection 188(5);rightdroitright of an issuer means a right to play or participate in a game of chance conducted by the issuer;specified gaming machine supplyfourniture reliée aux appareils de jeuspecified gaming machine supply means a supply in respect of a gaming machine made to an issuer ifthe supply isof the machine, or a site at which the machine is operated, made by way of lease, licence or similar arrangement, orof a service of repairing or maintaining the machine, performing functions necessary to ensure its proper operation or awarding, paying or delivering prizes won in the games of chance played by its operation, andunder the agreement for the supply, all or part of the consideration for the supply is determined as a percentage of the proceeds of the issuer from conducting those games.Supply by issuerFor the purposes of this Part, where an issuer makes a supply of a right of the issuer to a distributor of the issuer,tax shall be deemed not to be payable by the distributor in respect of the supply; andthe distributor is not entitled to any rebate under section 261 in respect of the supply.Supply by distributorWhere a particular distributor of an issuer makes a supply of a right of the issuer,if the recipient of the supply is another distributor of the issuer, the supply shall be deemed, for the purposes of this Part except this section, not to have been made by the particular distributor and not to have been received by the other distributor;if the recipient of the supply is the issuer, the supply shall be deemed, for the purposes of this Part except this section, not to have been made by the particular distributor; andif the recipient of the supply is any other person,the supply shall be deemed, for the purposes of this Part, to be a supply made by the issuer and not by the particular distributor, andany tax in respect of the supply that is collected by the particular distributor shall be deemed, for the purposes of this Part, to have been collected by the issuer, and not by the particular distributor.Deemed non-suppliesFor the purposes of this Part,supplies made to an issuer by a distributor of the issuer of a service in respect ofthe supply of rights of the issuer,the awarding, payment or delivery of prizes won in games of chance conducted by the issuer, orthe maintenance or repair of equipment used by the distributor in the supplying of rights of the issuer,supplies made to an issuer by a distributor of the issuer of a service in respect of the acceptance, on behalf of the issuer, of bets on games of chance conducted by the issuer, including supplies of a service of managing, administering and carrying on the day-to-day operations of the issuer’s gaming activities that are connected with a casino of the issuer,specified gaming machine supplies made to an issuer by a distributor of the issuer, andsupplies made by an issuer to a distributor of the issuer of a service in respect ofthe supply of rights of the issuer, orthe awarding, payment or delivery of prizes won in games of chance conducted by the issuer,shall be deemed not to be supplies.Deemed non-considerationFor the purposes of this Act,promotional bonuses and prizes given by an issuer to a distributor of the issuer for or in respect of the supply by the distributor of rights of the issuer, andamounts paid to an issuer by a distributor of the issuer for or on account of damages to property of the issuer,shall be deemed not to be consideration for a supply.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 52;
2000, c. 30, s. 39.
DuesDues in respect of employmentFor the purposes of this Part, where an amount is paid by a person to an organization asa membership due paid to a trade union as definedin section 3 of the Canada Labour Code, orin any Act of the legislature of a province providing for the investigation, conciliation or settlement of industrial disputes,or to an association of public servants the primary object of which is to promote the improvement of the members’ conditions of employment or work,a due that was, pursuant to the provisions of a collective agreement, retained by the person from an individual’s remuneration and paid to a trade union or association referred to in paragraph (a) of which the individual was not a member, ora due to a parity or advisory committee or similar body, the payment of which was required under the laws of a province in respect of an individual’s employment,the organization shall be deemed to have made an exempt supply to the person and the amount shall be deemed to be consideration for the supply.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
FeesGovernment feesFor the purposes of this Part, where a person who is the holder of, or an applicant for, a right the supply of which is an exempt supply described by paragraph 20(c) of Part VI of Schedule V is required to pay to a government or municipality or a board, commission or other body established by a government or municipality an amount that is levied for the purposes of recovering the costs of administration of a regulatory program relating to the right and a failure to pay the amount would result in a denial or loss of, a restriction in the exercise of, or a change in the person’s entitlements under, the right, the government, municipality or body, as the case may be, shall be deemed to have made an exempt supply to the person and the amount shall be deemed to be consideration for that supply.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 53.
Foreign ConventionsForeign conventionsWhere a sponsor of a foreign conventionmakes a supply of an admission to the convention,makes a supply by way of lease, licence or similar arrangement of real property for use by the recipient of the supply exclusively as the site for the promotion, at the convention, of property or services supplied by, or a business of, the recipient, ormakes a supply of related convention supplies to a recipient of a supply referred to in paragraph (b),the supply shall be deemed to have been made otherwise than in the course of a commercial activity of the sponsor.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 53.
Real PropertyConversion to residential useWhere at any time a person begins to hold or use real property as a residential complex andthe property waslast acquired by the person to hold or use as a residential complex, orimmediately before that time, held for supply, or used or held for use as capital property, in a business or commercial activity of the person,immediately before that time, the property was not a residential complex, andthe person did not engage in the construction or substantial renovation of, and is not, but for this section, a builder of, the complex,for the purposes of this Part,the person shall be deemed to have substantially renovated the complex,the renovation shall be deemed to have begun at that time and to have been substantially completed at the earlier of the time the complex is occupied by any individual as a place of residence or lodging and the time the person transfers ownership of the complex to another person, andexcept where the person isa particular individual who acquires the property at that time to hold or use exclusively as a place of residence of the particular individual or another individual who is related to the particular individual or who is a former spouse or common-law partner of the particular individual, ora personal trust that acquires the property at that time to hold or use exclusively as a place of residence of an individual who is a beneficiary of the trust,the person shall be deemed to be a builder of the complex.IdemWhere at any time an individual appropriates real property for the personal use or enjoyment of the individual, another individual related to the individual or a former spouse or common-law partner of the individual and, immediately before that time, the propertywas held for supply, or was used or held for use as capital property, in a business or commercial activity of the individual, andwas not a residential complex,the individual shall, for the purposes of this Part, be deemedto have made and received a taxable supply by way of sale of the property immediately before that time, andto have paid as a recipient and to have collected as a supplier, at that time, tax in respect of the supply, calculated on the fair market value of the property at that time.Lease of land for residential useWherea person who has an interest in land makes a supply of the land by way of lease, licence or similar arrangement and the supply is an exempt supply described by section 6.1 or paragraph 7(a) of Part I of Schedule V,the person at any time gives possession of the land to the recipient of the supply under the arrangement,the last use of the land by the person before that time was not under an arrangement for a supply referred to in paragraph (a),the person was not deemed under subsection 200(2), 206(4) or 207(1) to have made a supply of the land at or immediately before that time, andthe recipient of the supply is not acquiring possession of the land for the purpose ofconstructing a residential complex thereon in the course of a commercial activity, ormaking an exempt supply of the land described by section 6.1 of Part I of Schedule V,the person shall, for the purposes of this Part, be deemedto have made, immediately before that time, a taxable supply by way of sale of the land and to have collected, at that time, tax in respect of the supply calculated on the fair market value of the land at that time, andto have received, at that time, a taxable supply by way of sale of the land and to have paid, at that time, tax in respect of that supply calculated on the fair market value of the land at that time.First use of residential trailer parkWherea person makes a supply of a site in a residential trailer park of the person by way of lease, licence or similar arrangement and the supply is an exempt supply described by paragraph 7(b) of Part I of Schedule V,the person at any time gives possession or occupancy of the site to the recipient of the supply under the arrangement,none of the sites in the park were occupied immediately before that time under an arrangement for a supply referred to in paragraph (a), andeitherthe last acquisition of the park by the person was not under an exempt supply described by section 5.3 of Part I of Schedule V and the person was not deemedunder this subsection to have made before that time, orunder subsection 200(2), 206(4) or 207(1) to have made at or immediately before that timea supply of land included in the park as a consequence of using the land for purposes of the park, orthe person was entitled, after the park or land was last acquired or deemed to have been supplied by the person, to claim an input tax credit in respect of the acquisition thereof or an improvement thereto,the person shall, for the purposes of this Part, be deemedto have made, immediately before that time, a taxable supply by way of sale of the park and to have collected, at that time, tax in respect of the supply calculated on the fair market value of the park at that time, andto have received, at that time, a taxable supply by way of sale of the park and to have paid, at that time, tax in respect of the supply calculated on the fair market value of the park at that time.First use of additional areaWherea person increases the area of land included in a residential trailer park of the person,the person makes a supply of a site in the area of land by which the park was increased (in this subsection referred to as the “additional area”) by way of lease, licence or similar arrangement and the supply is an exempt supply described by paragraph 7(b) of Part I of Schedule V,the person at any time gives possession or occupancy of the site to the recipient of the supply under the arrangement,none of the sites in the additional area were occupied immediately before that time under an arrangement for a supply referred to in paragraph (b), andeitherthe last acquisition of the additional area by the person was not under an exempt supply described by section 5.3 of Part I of Schedule V and the person was not deemedunder this section to have made before that time, orunder subsection 200(2), 206(4) or 207(1) to have made at or before that timea supply of the additional area as a consequence of using the additional area for purposes of the park, orthe person was entitled, after the additional area was last acquired or deemed to have been supplied by the person, to claim an input tax credit in respect of the acquisition thereof or an improvement thereto,the person shall, for the purposes of this Part, be deemedto have made, immediately before that time, a taxable supply by way of sale of the additional area and to have collected, at that time, tax in respect of the supply calculated on the fair market value of the additional area at that time, andto have received, at that time, a taxable supply by way of sale of the additional area and to have paid, at that time, tax in respect of the supply calculated on the fair market value of the additional area at that time.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, ss. 54, 204(F);
1997, c. 10, s. 36;
2000, c. 12, s. 113.
Construction of mobile or floating homeFor the purposes of this Part, any person who makes a supply of a mobile home or a floating home before it has been used or occupied by any individual as a place of residence or lodging shall be deemed to have engaged in the construction of the home and to have substantially completed the construction at the earlier of the time ownership of the home is transferred to the recipient of the supply and the time possession of the home is transferred to the recipient under the agreement for the supply.Substantial renovation of mobile or floating homeFor the purposes of this Part, where a person engages in the substantial renovation of a mobile home or a floating home, the home shall be deemed not to have been used or occupied, at any time before the person began to substantially renovate the home, by any individual as a place of residence or lodging.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 55.
Self-supply of single unit residential complex or residential condominium unitFor the purposes of this Part, wherethe construction or substantial renovation of a residential complex that is a single unit residential complex or a residential condominium unit is substantially completed,the builder of the complexgives possession or use of the complex to a particular person under a lease, licence or similar arrangement (other than an arrangement, under or arising as a consequence of an agreement of purchase and sale of the complex, for the possession or occupancy of the complex until ownership of the complex is transferred to the purchaser under the agreement) entered into for the purpose of its occupancy by an individual as a place of residence,gives possession or use of the complex to a particular person under an agreement forthe supply by way of sale of the building or part thereof in which the residential unit forming part of the complex is located, andthe supply by way of lease of the land forming part of the complex or the supply of such a lease by way of assignment,other than an agreement for the supply of a mobile home and a site for the home in a residential trailer park, orwhere the builder is an individual, occupies the complex as a place of residence, andthe builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of the complex with the particular person, is the first individual to occupy the complex as a place of residence after substantial completion of the construction or renovation,the builder shall be deemedto have made and received, at the later of the time the construction or substantial renovation is substantially completed and the time possession or use of the complex is so given to the particular person or the complex is so occupied by the builder, a taxable supply by way of sale of the complex, andto have paid as a recipient and to have collected as a supplier, at the later of those times, tax in respect of the supply calculated on the fair market value of the complex at the later of those times.Self-supply of residential condominium unitFor the purposes of this Part, wherethe construction or substantial renovation of a residential condominium unit is substantially completed,the builder of the unit gives possession of the unit to a particular person who is the purchaser under an agreement of purchase and sale of the unit at a time when the condominium complex in which the unit is situated is not registered as a condominium,the particular person or an individual who is a tenant or licensee of the particular person is the first individual to occupy the unit as a place of residence after substantial completion of the construction or renovation, andthe agreement of purchase and sale is at any time terminated (otherwise than by performance of the agreement) and another agreement of purchase and sale of the unit between the builder and the particular person is not entered into at that time,the builder shall be deemedto have made and received, at the time the agreement is terminated, a taxable supply by way of sale of the unit, andexcept where possession of the unit was transferred to the particular person before 1991, to have paid as a recipient and to have collected as a supplier, at that time, tax in respect of the supply calculated on the fair market value of the unit at that time.Self-supply of multiple unit residential complexFor the purposes of this Part, wherethe construction or substantial renovation of a multiple unit residential complex is substantially completed,the builder of the complexgives, to a particular person who is not a purchaser under an agreement of purchase and sale of the complex, possession or use of any residential unit in the complex under a lease, licence or similar arrangement entered into for the purpose of the occupancy of the unit by an individual as a place of residence,gives possession or use of any residential unit in the complex to a particular person under an agreement forthe supply by way of sale of the building or part thereof forming part of the complex, andthe supply by way of lease of the land forming part of the complex or the supply of such a lease by way of assignment, orwhere the builder is an individual, occupies any residential unit in the complex as a place of residence, andthe builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of a residential unit in the complex with the particular person, is the first individual to occupy a residential unit in the complex as a place of residence after substantial completion of the construction or renovation,the builder shall be deemedto have made and received, at the later of the time the construction or substantial renovation is substantially completed and the time possession or use of the unit is so given to the particular person or the unit is so occupied by the builder, a taxable supply by way of sale of the complex, andto have paid as a recipient and to have collected as a supplier, at the later of those times, tax in respect of the supply calculated on the fair market value of the complex at the later of those times.Self-supply of addition to multiple unit residential complexFor the purposes of this Part, wherethe construction of an addition to a multiple unit residential complex is substantially completed,the builder of the additiongives, to a particular person who is not a purchaser under an agreement of purchase and sale of the complex, possession or use of any residential unit in the addition under a lease, licence or similar arrangement entered into for the purpose of the occupancy of the unit by an individual as a place of residence,gives possession or use of any residential unit in the addition to a particular person under an agreement forthe supply by way of sale of the building or part thereof forming part of the complex, andthe supply by way of lease of the land forming part of the complex or the supply of such a lease by way of assignment, orwhere the builder is an individual, occupies any residential unit in the addition as a place of residence, andthe builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of a residential unit in the addition with the particular person, is the first individual to occupy a residential unit in the addition as a place of residence after substantial completion of the construction of the addition,the builder shall be deemedto have made and received, at the later of the time the construction of the addition is substantially completed and the time possession or use of the unit is so given to the particular person or the unit is so occupied by the builder, a taxable supply by way of sale of the addition, andto have paid as a recipient and to have collected as a supplier, at the later of those times, tax in respect of the supply calculated on the fair market value of the addition at the later of those times.Reference to leaseA reference in this section to a “lease” in respect of land shall be read as a reference to a “lease, licence or similar arrangement”.Exception for personal useSubsections (1) to (4) do not apply to a builder of a residential complex or an addition to a residential complex wherethe builder is an individual;at any time after the construction or renovation of the complex or addition is substantially completed, the complex is used primarily as a place of residence for the individual, an individual related to the individual or a former spouse or common-law partner of the individual;the complex is not used primarily for any other purpose between the time the construction or renovation is substantially completed and that time; andthe individual has not claimed an input tax credit in respect of the acquisition of or an improvement to the complex.Exception for student residenceSubsections (1) to (4) do not apply to a builder of a residential complex or an addition to a residential complex wherethe builder is a university, public college or school authority; andthe construction or renovation of the complex or addition is carried out, or the complex is acquired, primarily for the purpose of providing a place of residence for students attending the university or college or a school of the school authority.Exception for communal organizationsSubsections (1) to (4) do not apply to a builder of a residential complex or an addition to a residential complex wherethe builder is a community, society or body of individuals to which section 143 of the Income Tax Act applies; andthe construction or substantial renovation of the complex or addition is carried out exclusively for the purpose of providing a place of residence for members of the community, society or body.Remote work siteFor the purposes of this Part, wherethe builder of a residential complex or an addition to a residential complex is a registrant,the construction or substantial renovation of the complex or addition is carried out, or the complex is acquired, for the purpose of providing a place of residence or lodging for an individual at a locationat which the individual is required to be in the performance of the individual’s duties asan employee of the registrant,a contractor, or an employee of the contractor, engaged by the registrant to render services to the registrant at that location, ora subcontractor, or an employee of the subcontractor, engaged by a contractor referred to in clause (B) to render services at that location that are acquired by the contractor for the purpose of supplying services to the registrant, andat which, because of its remoteness from any established community, the individual could not reasonably be expected to establish and maintain a self-contained domestic establishment, andthe registrant makes, under this subsection, an election in prescribed form containing prescribed information in respect of the complex or addition,until the complex is supplied by way of sale, or is supplied by way of lease, licence or similar arrangement primarily to persons who are not employees, contractors or subcontractors referred to in subparagraph (b)(i) who are acquiring the complex or residential units therein in the circumstances described in that subparagraph or individuals who are related to such employees, contractors or subcontractors, the supply of the complex or a residential unit in the complex as a place of residence or lodging is deemed not be a supply and any occupation of the complex or unit as a place of residence or lodging is deemed not to be occupation as a place of residence or lodging.[Repealed, 1993, c. 27, s. 56]Substantial completionFor the purposes of this section, the construction or substantial renovation of a multiple unit residential complex or a condominium complex, or the construction of an addition to a multiple unit residential complex, shall be deemed to be substantially completed not later than the day all or substantially all of the residential units in the complex or addition are occupied after the construction or substantial renovation is begun.Transfer of possession attributed to builderFor the purposes of this section, ifa builder of a residential complex or an addition to a multiple unit residential complex makes a supply of the complex or a residential unit in the complex or addition by way of lease, licence or similar arrangement and the supply is an exempt supply included in section 6.1 or 6.11 of Part I of Schedule V,the recipient of the supply is acquiring the complex or unit for use or supply in the course of making exempt supplies and, as part of an exempt supply, possession or use of the complex, unit or residential units in the complex is given by the recipient under a lease, licence or similar arrangement under which occupancy of the complex or unit is given to an individual as a place of residence or lodging, andthe builder at any time gives possession of the complex or unit to the recipient under the arrangement,the builder shall be deemed to have at that time given possession of the complex or unit to an individual under a lease, licence or similar arrangement entered into for the purpose of its occupancy by an individual as a place of residence.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, ss. 56, 204(F);
1997, c. 10, s. 37;
2000, c. 12, s. 113, c. 30, s. 40;
2008, c. 28, s. 73.
Previous VersionDefinitionsThe definitions in this subsection apply in this section.government fundingsubventiongovernment funding, in respect of a residential complex, means an amount of money (including a forgivable loan but not including any other loan or a refund or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) paid or payable bya grantor, oran organization that received the amount from a grantor or another organization that received the amount from a grantor,to a builder of the complex or of an addition thereto for the purpose of making residential units in the complex available to individuals referred to in paragraph (2)(b).grantorsubventionneurgrantor meansa government or municipality, other than a corporation all or substantially all of whose activities are commercial activities or the supply of financial services or any combination thereof;a band (within the meaning assigned by section 2 of the Indian Act);a corporation that is controlled by a government, a municipality or a band referred to in paragraph (b) and one of the main purposes of which is to fund charitable or non-profit endeavours; anda trust, board, commission or other body that is established by a government, municipality, band referred to in paragraph (b) or corporation described in paragraph (c) and one of the main purposes of which is to fund charitable or non-profit endeavours.Subsidized residential complexesFor the purposes of subsections 191(1) to (4), wherea builder of a residential complex or an addition thereto is deemed under any of subsections 191(1) to (4) to have, at any time, made and received a supply of the complex or addition,possession or use of at least 10% of the residential units in the complex is intended to be given for the purpose of their occupancy as a place of residence or lodging byseniors,youths,students,individuals with a disability,individuals in distress or individuals in need of assistance,individuals whose eligibility for occupancy of the units as a place of residence or lodging, or for reduced payments in respect of their occupancy as a place of residence or lodging, is dependent on a means or income test,individuals for whose benefit no other persons (other than public sector bodies) pay consideration for supplies that include giving possession or use of the units for occupancy by the individuals as a place of residence or lodging and who either pay no consideration for the supplies or pay consideration that is significantly less than the consideration that could reasonably be expected to be paid for comparable supplies made by a person in the business of making such supplies for the purpose of earning a profit, orany combination of individuals described in any of subparagraphs (i) to (vii), andexcept where the builder is a government or a municipality, the builder, at or before that time, has received or can reasonably expect to receive government funding in respect of the complex,the amount of tax in respect of the supply calculated on the fair market value of the complex or addition, as the case may be, is deemed to be equal to the greater ofthe amount that would, but for this subsection, be the tax calculated on that fair market value, andthe total of all amounts each of which is tax that was payable by the builder in respect ofreal property that forms part of the complex or addition, as the case may be, oran improvement to that real property.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1997, c. 10, s. 38;
2008, c. 28, s. 74.
Previous VersionNon-substantial renovationFor the purposes of this Part, where in the course of a business of making supplies of real property a person renovates or alters a residential complex of the person and the renovation or alteration is not a substantial renovation, the person shall be deemedto have made and received a taxable supply, in the province in which the complex is situated and at the earlier of the time the renovation is substantially completed and the time ownership of the complex is transferred, for consideration equal to the total of all amounts each of which is an amount in respect of the renovation or alteration (other than an amount of consideration paid or payable by the person for a financial service or for any property or service in respect of which the person is required to pay tax) that would be included in determining the adjusted cost base to the person of the complex for the purposes of the Income Tax Act if the complex were capital property of the person and the person were a taxpayer under that Act; andto have paid as a recipient and to have collected as a supplier, at that time, tax in respect of the supply, calculated on the total determined under paragraph (a).
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1997, c. 10, s. 182.
Real Property CreditsSale of real propertySubject to subsection (2.1), if at a particular time a registrant makes a particular taxable supply of real property by way of sale, other thana supply deemed under subsection 206(5) or 207(2) to have been made, ora supply made by a public sector body (other than a financial institution) of property in respect of which an election by the body under section 211 is not in effect at the particular time,the registrant may, notwithstanding section 170 and Subdivision d, claim an input tax credit for the reporting period in which tax in respect of the particular taxable supply becomes payable or is deemed to have been collected, as the case may be, equal to the amount determined by the formulaA × BwhereAis the lesser ofthe basic tax content of the property at the particular time; andthe tax that is or would, in the absence of section 167 or 167.11, be payable in respect of the particular taxable supply, andBis the percentage that, immediately before the particular time, the use of the property otherwise than in commercial activities of the registrant was of the total use of the property.Sale by public sector bodiesSubject to subsection (2.1), if at a particular time a registrant that is a public sector body (other than a financial institution) makes a particular taxable supply of real property by way of sale (other than a supply that is deemed under subsection 200(2) or 206(5) to have been made) and, immediately before the time tax becomes payable in respect of the particular taxable supply, the property was not used by the registrant primarily in commercial activities of the registrant, except where subsection (1) applies, the registrant may, despite section 170 and Subdivision d, claim an input tax credit for the reporting period in which tax in respect of the particular taxable supply became payable or is deemed to have been collected, as the case may be, equal to the lesser ofthe basic tax content of the property at the particular time; andthe tax that is or would, but for section 167, be payable in respect of the particular taxable supply.LimitationIf the particular taxable supply of property referred to in subsection (1) or (2) is made at a particular time by a public sector body to another person with whom the public sector body is not dealing at arm’s length, the value of A in subsection (1) and the input tax credit under subsection (2) shall not exceed the lesser ofthe basic tax content of the property at the particular time, andthe amount determined by the formula(A/B) × CwhereAis the basic tax content of the property at the particular time,Bis the amount that would be the basic tax content of the property at that time if that amount were determined without reference to the description of B in paragraph (a) and the description of K in paragraph (b) of the definition basic tax content in subsection 123(1), andCis the tax that is or would, in the absence of section 167, be payable in respect of the particular taxable supply.Redemption of real propertyWherefor the purposes of satisfying in whole or in part a debt or obligation owing by a person (in this subsection referred to as the “debtor”), a creditor exercises a right under an Act of Parliament or the legislature of a province or an agreement relating to a debt security to cause the supply of real property, andunder the Act or the agreement, the debtor has a right to redeem the property,the following rules apply:the debtor is not entitled to claim an input tax credit under this section in respect of the property unless the time limit for redeeming the property has expired and the debtor has not redeemed the property, andwhere the debtor is entitled to claim the input tax credit, that input tax credit is for the reporting period in which the time limit for redeeming the property expires.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 57;
1997, c. 10, ss. 39, 183;
2006, c. 4, s. 15;
2007, c. 18, s. 14.
Previous VersionStatement as to Use of Real PropertyIncorrect statementFor the purposes of this Part, where a supplier makes a taxable supply by way of sale of real property and incorrectly states or certifies in writing to the recipient of the supply that the supply is an exempt supply described in any of sections 2 to 5.3, 8 and 9 of Part I of Schedule V, except where the recipient knows or ought to know that the supply is not an exempt supply,the tax payable in respect of the supply is deemed to be equal to the amount determined by the formula(A/B) × CwhereAisif tax under subsection 165(2) was payable in respect of the supply, the total of the rate set out in subsection 165(1) and the tax rate for the participating province in which the supply was made, andin any other case, the rate set out in subsection 165(1),Bis the total of 100% and the percentage determined for A, andCis the consideration for the supply; andthe supplier shall be deemed to have collected, and the recipient shall be deemed to have paid, that tax on the earlier of the day ownership of the property was transferred to the recipient and the day possession of the property was transferred to the recipient under the agreement for the supply.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 58;
1997, c. 10, s. 184;
2006, c. 4, s. 16.
Previous VersionCapital PropertyPrescribed propertyFor the purposes of this Part, where a person acquires or imports prescribed property or brings it into a participating province for use as capital property of the person, the property is deemed to be personal property and not real property.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 59;
1997, c. 10, s. 185.
Residential complex not capital propertyFor the purposes of this Part, other than sections 148 and 249, a residential complex shall be deemed not to be, at a particular time, capital property of a builder of the complex unlessat or before the particular time, the construction or substantial renovation of the complex was substantially completed; andat or after the time the construction or substantial renovation of the complex was substantially completed and at or before the particular time, the builder received an exempt supply of the complex or was deemed under section 191 to have received a taxable supply of the complex.Addition not capital propertyFor the purposes of this Part, other than sections 148 and 249, an addition to a multiple unit residential complex shall be deemed not to be, at a particular time, capital property of a builder of the addition unlessat or before the particular time, the construction of the addition was substantially completed; andat or after the time the construction of the addition was substantially completed and at or before the particular time, the builder received an exempt supply of the complex or was deemed under subsection 191(4) to have received a taxable supply of the addition.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 59.
Last acquisition or importationFor the purposes of this Part (other than Division III and Schedule VII), an importation of property shall not be considered in determining the last acquisition or importation of the propertywhere tax under Division III was not paid on the property in respect of that importation because the property was included in section 1 or 9 of Schedule VII or the property was included in section 8 of that Schedule and was classified under heading 98.13 or 98.14 of Schedule I to the Customs Tariff, or would have been so classified but for Note 11(a) to Chapter 98 of that Schedule;where tax under Division III on the property in respect of that importation was calculated on a value determined under the Value of Imported Goods (GST/HST) Regulations, other than section 8 or 12 or a prescribed section of those Regulations; orin prescribed circumstances.Importation of improvementFor the purposes of this Part (other than Division III and Schedule VII), where a person imports capital property of the person that was improved outside Canada and tax under Division III is payable on a value, determined under the Value of Imported Goods (GST/HST) Regulations, that does not exceed the value of the improvement, the importation shall be deemed to be an importation of the improvement.Application before 1991For the purposes of determining the last acquisition or importation of property, this Part shall be deemed to have been in force at all times before 1991.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 60;
2007, c. 18, s. 63.
Previous VersionIntended and actual useFor the purposes of this Part, where a person at any time acquires or imports property for use to a particular extent in a particular way, the person shall be deemed to use the property immediately after that time to the particular extent in the particular way.Intended and actual useFor the purposes of this Part, if a person at any time brings capital property of the person into a particular participating province from another province and the person was using the property to a particular extent in a particular way immediately after the property or a portion of the property was last acquired, imported or brought into a participating province by the person, the person is deemed to bring it into the particular participating province for use to the particular extent in the particular way.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 61;
1997, c. 10, s. 186;
2009, c. 32, s. 12.
Previous VersionAppropriation to use as capital propertyFor the purposes of this Part, where a registrant, at a particular time, appropriates property of the registrant for use as capital property of the registrant or in improving capital property of the registrant and, immediately before the particular time, the property was not capital property of the registrant or an improvement to capital property of the registrant,the registrant shall be deemedto have made, immediately before the particular time, a supply of the property by way of sale, andwhere the property was last acquired or imported by the registrant before the particular time for consumption, use or supply, or was consumed or used before the particular time, in the course of commercial activities of the registrant, to have collected, at the particular time, tax in respect of the supply calculated on the fair market value of the property at the particular time; andthe registrant shall be deemed to have received, at the particular time, a supply of the property by way of sale and to have paid, at the particular time, tax in respect of the supply equal towhere the property was last acquired or imported by the registrant before the particular time for consumption, use or supply, or was consumed or used before the particular time, in the course of commercial activities of the registrant and the supply is not an exempt supply, tax calculated on the fair market value of the property at the particular time, andin any other case, the basic tax content of the property at the particular time.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 61;
1997, c. 10, s. 187.
Insignificant changes in useFor the purposes of subsections 206(2), (3) and (5), 207(2) and 208(2) and (3), where in any periodbeginning on the later ofthe day a registrant last acquired or imported property for use as capital property of the registrant, andthe day subsection 206(3) or (5), 207(2) or 208(3) last applied to the property, andending at any time after that day,the extent to which the registrant changed the use of the property in commercial activities of the registrant is less than 10% of the total use of the property, the registrant shall be deemed to have used the property throughout that period to the same extent and in the same way as the registrant used the property at the beginning of that period, unless the registrant is an individual who began in that period to use the property primarily for the personal use and enjoyment of the individual or a related individual.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 62;
2000, c. 30, s. 41(F).
Use in supply of financial servicesFor the purposes of this Part, to the extent that a registrant who is neither a listed financial institution nor a person who is a financial institution because of paragraph 149(1)(b) uses property as capital property of the registrant in the making of supplies of financial services that relate to commercial activities of the registrant,where the registrant is a financial institution because of paragraph 149(1)(c), the registrant is deemed to use the property in those commercial activities only to the extent that the registrant does not use the property in activities of the registrant that relate tocredit cards or charge cards issued by the registrant, orthe making of any advance, the lending of money or the granting of any credit; andin any other case, the registrant is deemed to use the property in those commercial activities.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 63;
1997, c. 10, s. 40.
Basic tax content of property of a municipalityIn the case of property of a municipality that is not a listed financial institution, the basic tax content of the property at any time after January 30, 2004 shall be determined by applying the following rules:in determining the value of A in paragraph (a) of the definition basic tax content in subsection 123(1), an amount of tax described by any of subparagraphs (i) to (v) of the description of A may be included only if the taxbecame payable, or would have become payable in the absence of the circumstances described in subparagraph (iii) or (iv) of that description, after January 2004 under subsection 165(1) or section 212 or 218 in respect of the property, orwas payable, or would have been payable in the absence of the circumstances described in subparagraph (iii) or (iv) of that description, under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 in respect of the property;in determining the value of B in paragraph (a) of the definition basic tax content in subsection 123(1), any reference in the description of B to tax referred to in a subparagraph of the description of A shall be read to include an amount of tax only if the tax is included in the determination of the value of A in accordance with paragraph (a) of this subsection;in determining the value of J in paragraph (b) of the definition basic tax content in subsection 123(1),paragraphs (a) and (b) of this subsection shall be applied in determining the basic tax content referred to in subparagraph (i) of the description of J, andan amount of tax described by any of subparagraphs (iii) to (vi) of the description of J may be included only if the taxbecame payable, or would have become payable in the absence of the circumstances described in subparagraph (iv) or (v) of that description, after January 2004 under subsection 165(1) or section 212 or 218 in respect of the improvements to the property, orwas payable, or would have been payable in the absence of the circumstances described in subparagraph (iv) or (v) of that description, under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 in respect of improvements to the property; andin determining the value of K in paragraph (b) of the definition basic tax content in subsection 123(1), any reference in the description of K to tax referred to in a subparagraph of the description of J shall be read to include an amount of tax only if the tax is included in the determination of the value of J in accordance with paragraph (c) of this subsection.Application to designated municipalityIn subsection (1), municipality includes a person designated to be a municipality for the purposes of section 259 and, in the case of a person so designated, property means property that, on January 31, 2004, was property of the person and was consumed, used or supplied by the person otherwise than exclusively in the course of activities that are not activities specified in the designation.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 64;
1997, c. 10, s. 188;
2004, c. 22, s. 32.
[Repealed, 1997, c. 10, s. 188]Capital Personal PropertyApplicationThis section does not apply in respect ofproperty of a registrant that is a financial institution or a prescribed registrant; ora passenger vehicle or an aircraft of a registrant who is an individual or a partnership.Acquisition of capital personal propertyWhere a registrant acquires or imports personal property or brings it into a participating province for use as capital property,the tax payable by the registrant in respect of the acquisition, importation or bringing in of the property shall not be included in determining an input tax credit of the registrant for any reporting period unless the property was acquired, imported or brought in, as the case may be, for use primarily in commercial activities of the registrant; andwhere the registrant acquires, imports or brings in the property for use primarily in commercial activities of the registrant, the registrant is deemed, for the purposes of this Part, to have acquired, imported or brought in the property, as the case may be, for use exclusively in commercial activities of the registrant.Beginning use of personal propertyFor the purposes of this Part, where a registrant last acquired or imported personal property for use as capital property of the registrant but not for use primarily in commercial activities of the registrant and the registrant begins, at a particular time, to use the property as capital property primarily in commercial activities of the registrant, except where the registrant becomes a registrant at the particular time, the registrant shall be deemedto have received, at the particular time, a supply of the property by way of sale; andexcept where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the basic tax content of the property at the particular time.Improvement to capital personal propertyWhere a registrant acquires, imports or brings into a participating province an improvement to personal property that is capital property of the registrant, tax payable by the registrant in respect of the acquisition, importation or bringing in shall not be included in determining an input tax credit of the registrant unless, at the time that tax becomes payable or is paid without having become payable, the capital property is used primarily in commercial activities of the registrant.Use of musical instrumentFor the purposes of subsections (2) and (3) and 200(2) and (3), where an individual who is a registrant uses a musical instrument that is capital property of the individual in an employment of the individual or in a business carried on by a partnership of which the individual is a member, that use is deemed to be use in commercial activities of the individual.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 66;
1997, c. 10, s. 189.
ApplicationThis section does not apply in respect ofproperty of a registrant that is a financial institution or a prescribed registrant; ora passenger vehicle or an aircraft of a registrant who is an individual or a partnership.Ceasing use of personal propertyFor the purposes of this Part, where a registrant last acquired or imported personal property for use as capital property primarily in commercial activities of the registrant and the registrant begins, at a particular time, to use the property primarily for other purposes, the registrant shall be deemedto have made, immediately before the particular time, a supply of the property by way of sale and to have collected, at the particular time, tax in respect of the supply equal to the basic tax content of the property at the particular time; andto have received, at the particular time, a supply of the property by way of sale and to have paid, at the particular time, tax in respect of the supply equal to the basic tax content of the property at the particular time.Sale of personal propertyDespite paragraph 141.1(1)(a) but subject to section 141.2, for the purposes of this Part, if a registrant (other than a government) makes a supply by way of sale of personal property that is capital property of the registrant and, before the earlier of the time that ownership of the property is transferred to the recipient and the time that possession of the property is transferred to the recipient under the agreement for the supply, the registrant was last using the property otherwise than primarily in commercial activities of the registrant, the supply is deemed to have been made in the course of activities of the registrant that are not commercial activities.Sale of personal property of a governmentDespite subsection 141.1(1) but subject to section 141.2, for the purposes of this Part, if a supplier that is a government makes a supply by way of sale of particular personal property that is capital property of the supplier,ifit is the case thatthe supplier is an agent of Her Majesty in right of Canada that is prescribed for the purposes of the definition “specified Crown agent” in subsection 123(1),the supplier is an agent of Her Majesty in right of a province that is prescribed for the purposes of that definition and the particular property is prescribed property, orthe supplier is an agent of Her Majesty in right of a province and, if the particular property was last acquired or imported by the supplier after 1990 for consumption, use or supply in the course of particular activities of the supplier, the particular property was so acquired or imported in a period during which, because of an agreement under section 32 of the Federal-Provincial Fiscal Arrangements Act entered into by the government of the province, the supplier generally paid tax in respect of property or services acquired or imported for consumption, use or supply in the course of the particular activities and did not recover that tax pursuant to any entitlement under that Act or the Constitution Act, 1867,the supplier is a registrant, andbefore the earlier of the time that ownership of the particular property is transferred to the recipient of the supply and the time possession of the particular property is transferred to the recipient under the agreement for the supply, the supplier was last using the particular property otherwise than primarily in commercial activities of the supplier,the supply is deemed to have been made in the course of activities of the supplier that are not commercial activities; andif none of clauses (a)(i)(A) to (C) apply, the supply is deemed to have been made in the course of commercial activities of the supplier.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 67;
1997, c. 10, s. 190;
2000, c. 30, s. 42;
2004, c. 22, s. 33.
Previous VersionCredit on sale of personal property of a municipalityIf a registrant is a municipality or a person designated to be a municipality for the purposes of section 259, subsection 193(2) applies, with any modifications that the circumstances require, to personal property (other than a passenger vehicle, an aircraft of a registrant who is an individual or a partnership and property of a person designated to be a municipality for the purposes of section 259 that is not designated municipal property of the person) acquired or imported by the registrant for use as capital property of the registrant as if the personal property were real property.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2004, c. 22, s. 34.
Value of passenger vehicleFor the purpose of determining an input tax credit of a registrant in respect of a passenger vehicle that the registrant at a particular time acquires, imports or brings into a participating province for use as capital property in commercial activities of the registrant, the tax payable by the registrant in respect of the acquisition, importation or bringing in, as the case may be, of the vehicle is deemed to be the lesser ofthe tax that was payable by the registrant in respect of the acquisition, importation or bringing in, as the case may be, of the vehicle; andthe amount determined by the formula(A × B) - CwhereAis the tax that would be payable by the registrant in respect of the vehicle if the registrant acquired the vehicle at the particular timewhere the registrant is bringing the vehicle into a participating province at the particular time, in that province, andin any other case, in Canadafor consideration equal to the amount that would be deemed under paragraph 13(7)(g) or (h) of the Income Tax Act to be, for the purposes of section 13 of that Act, the capital cost to a taxpayer of a passenger vehicle in respect of which that paragraph applies if the formula in paragraph 7307(1)(b) of the Income Tax Regulations were read without reference to the description of B,Bisif the registrant is deemed under subsection 199(3) or 206(2) or (3) to have acquired the vehicle or a portion of it at the particular time, or the registrant is bringing the vehicle into a participating province at the particular time, and the registrant was previously entitled to claim a rebate under section 259 in respect of the vehicle or any improvement to it, the difference between 100% and the specified percentage (within the meaning of that section) that applied in determining the amount of that rebate, andin any other case, 100%; andCiswhere the registrant is bringing the vehicle into a participating province at the particular time, the total of all input tax credits that the registrant was entitled to claim in respect of the last acquisition or importation of the vehicle by the registrant or in respect of any improvement to it acquired or imported by the registrant after the vehicle was last so acquired or imported, andin any other case, zero.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 68;
1997, c. 10, s. 191;
2004, c. 22, s. 35;
2007, c. 18, s. 15.
Previous VersionImprovement to passenger vehicleIf the consideration paid or payable by a registrant for an improvement to a passenger vehicle of the registrant increases the cost to the registrant of the vehicle to an amount that exceeds the amount that would be deemed under paragraph 13(7)(g) or (h) of the Income Tax Act to be, for the purposes of section 13 of that Act, the capital cost to a taxpayer of a passenger vehicle in respect of which that paragraph applies if the formula in paragraph 7307(1)(b) of the Income Tax Regulations were read without reference to the description of B, the tax calculated on that excess shall not be included in determining an input tax credit of the registrant for any reporting period of the registrant.Input tax credit on passenger vehicle or aircraftWhere a registrant who is an individual or a partnership acquires or imports a passenger vehicle or aircraft or brings it into a participating province for use as capital property of the registrant, the tax payable (other than tax deemed to be payable under subsection (4)) by the registrant in respect of that acquisition, importation or bringing in, as the case may be, shall not be included in determining an input tax credit of the registrant unless the vehicle or aircraft was acquired or imported, or brought in, as the case may be, by the registrant for use exclusively in commercial activities of the registrant.Improvement to passenger vehicle or aircraftWhere a registrant who is an individual or a partnership acquires, imports or brings into a participating province an improvement to a passenger vehicle or aircraft that is capital property of the registrant, the tax payable by the registrant in respect of the improvement shall not be included in determining an input tax credit of the registrant unless, throughout the periodbeginning on the later of the day the vehicle or aircraft, as the case may be, was originally acquired or imported by the registrant and the day the individual or partnership becomes a registrant, andending on the day tax in respect of the improvement becomes payable or is paid without having become payable,the vehicle or aircraft was used exclusively in commercial activities of the registrant.Non-exclusive use of passenger vehicle or aircraftNotwithstanding subsections (2) and (3), where a registrant who is an individual or a partnership at any time acquires or imports a passenger vehicle or aircraft, or brings it into a participating province, for use as capital property of the registrant but not for use exclusively in commercial activities of the registrant and tax is payable by the registrant in respect of the acquisition, importation or bringing in, as the case may require, for the purpose of determining an input tax credit of the registrant, the registrant is deemedto have acquired the vehicle or aircraft on the last day of each taxation year of the registrant ending after that time; andto have paid, on that day, tax in respect of the acquisition of the vehicle or aircraft equal to the amount determined by the formulaA × BwhereAisin the case of an acquisition or importation in respect of which tax is payable only under subsection 165(1) or section 212 or 218, as the case may require, and in the case of an acquisition deemed to have been made under subsection (5) of a vehicle or aircraft in respect of which no tax under subsection 165(2) was payable by the registrant, the amount determined by the formulaC/DwhereCis the rate set out in subsection 165(1), andDis the total of 100% and the percentage determined for C,in the case of the bringing into a participating province of the vehicle or aircraft from a non-participating province and in the case of an acquisition in respect of which tax under section 220.06 is payable, the amount determined by the formulaE/FwhereEis the tax rate for the participating province, andFis the total of 100% and the percentage determined for E,in the case of an acquisition or importation in respect of which tax is payable under subsection 165(2), section 212.1 or subsection 218.1(1) calculated at the tax rate for a participating province, the amount determined by the formulaG/HwhereGis the total of the rate set out in subsection 165(1) and the tax rate for the participating province, andHis the total of 100% and the percentage determined for G, andin any other case, the amount determined by the formulaI/JwhereIis the rate determined in prescribed manner, andJis the total of 100% and the percentage determined for I, andBiswhere an amount in respect of the vehicle or aircraft is required by paragraph 6(1)(e) or subsection 15(1) of the Income Tax Act to be included in computing the income of an individual for a taxation year of the individual ending in that taxation year of the registrant, nil, andin any other case, the capital cost allowance in respect of the vehicle or aircraft that was deducted under the Income Tax Act in computing the income of the registrant from those commercial activities for that taxation year of the registrant.Deemed acquisitionFor the purpose of subsection (4), where at any time a registrant is deemed under section 203 to have made a taxable supply of a passenger vehicle or aircraft,the registrant shall be deemed to have acquired the vehicle or aircraft at that time; andtax shall be deemed to be payable at that time by the registrant in respect of the vehicle or aircraft.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 69;
1997, c. 10, s. 192;
2006, c. 4, s. 17;
2007, c. 18, s. 16;
2009, c. 32, s. 13.
Previous VersionSale of passenger vehicleIf a registrant (other than a municipality), at a particular time in a reporting period of the registrant, makes a taxable supply by way of sale of a passenger vehicle (other than a vehicle that is designated municipal property of a person designated at the particular time to be a municipality for the purposes of section 259) that, immediately before the particular time, was used as capital property in commercial activities of the registrant, the registrant may, despite section 170, paragraph 199(2)(a) and subsections 199(4) and 202(1), claim an input tax credit for that period equal to the amount determined by the formulaA × (B - C)/BwhereAis the basic tax content of the vehicle at the particular time;Bis the total ofthe tax that was payable by the registrant in respect of the last acquisition or importation of the vehicle by the registrant,where the registrant brought the vehicle into a participating province after it was last acquired or imported by the registrant, the tax that was payable by the registrant in respect of bringing it into that province, andthe tax that was payable by the registrant in respect of improvements to the vehicle acquired, imported or brought into a participating province by the registrant after the property was last acquired or imported; andCis the total of all input tax credits that the registrant was entitled to claim in respect of any tax included in the total for B.Ceasing to use passenger vehicle, etc.For the purposes of this Part, where a registrant who is an individual or a partnership acquired or imported a passenger vehicle or an aircraft for use as capital property exclusively in commercial activities of the registrant and the registrant begins, at any time, to use the vehicle or aircraft otherwise than exclusively in commercial activities of the registrant, the registrant shall be deemed to havemade, immediately before that time, a taxable supply by way of sale of the vehicle or aircraft; andcollected, at that time, tax in respect of the supply equal to the basic tax content of the vehicle or aircraft immediately before that time.Sale of passenger vehicle, etc.Despite paragraph 141.1(1)(a), for the purposes of this Part, a supply shall be deemed not to be a taxable supply ifan individual or a partnership (other than a municipality) who is a registrant makes, at a particular time, the supply by way of sale of a passenger vehicle or an aircraft (other than a vehicle or an aircraft that is designated municipal property of a person designated at the particular time to be a municipality for the purposes of section 259) that is capital property of the registrant; andat any time after the individual or partnership became a registrant and before the particular time, the registrant did not use the vehicle or aircraft exclusively in commercial activities of the registrant.Sale of passenger vehicle by a municipalityIf a registrant (other than an individual or a partnership) that is a municipality or a person designated to be a municipality for the purposes of section 259, at a particular time in a reporting period of the registrant, makes a taxable supply by way of sale of a passenger vehicle (other than a vehicle of a person designated to be a municipality for the purposes of section 259 that is not designated municipal property of the person) that, immediately before the particular time, was capital property of the registrant, the registrant may, despite section 170, paragraph 199(2)(a) and subsections 199(4) and 202(1), claim an input tax credit for that period equal to the lesser ofthe amount determined by the formulaA × (B – C)/BwhereAis the basic tax content of the vehicle at the particular time,Bis the total ofthe tax that was payable by the registrant in respect of the last acquisition or importation of the vehicle by the registrant,if the registrant brought the vehicle into a participating province after it was last acquired or imported by the registrant, the tax that was payable by the registrant in respect of bringing it into that province, andthe tax that was payable by the registrant in respect of improvements to the vehicle acquired, imported or brought into a participating province by the registrant after the property was last acquired or imported, andCis the total of all input tax credits that the registrant was entitled to claim in respect of any tax included in the total for B, andthe tax that is or would, in the absence of section 167, be payable in respect of the taxable supply.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 70;
1997, c. 10, s. 193;
2004, c. 22, s. 36.
Previous VersionApplicationThis section does not apply to personal property of a financial institution having a cost to the institution of $50,000 or less.Personal property of a financial institutionWhere a financial institution is a registrant, subsections 206(2) to (5) apply, with such modifications as the circumstances require, to personal property acquired or imported by the institution for use as capital property of the institution, and to improvements to personal property that is capital property of the institution, as if the personal property were real property.Credit on saleWhere a financial institution is a registrant, subsection 193(1) applies, with such modifications as the circumstances require, to personal property (other than a passenger vehicle) acquired or imported by the institution for use as capital property of the institution, as if the personal property were real property.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 71.
Financial institution making election for exempt suppliesWhere an election made by a registrant under subsection 150(1) becomes effective at a particular time, the registrant was a financial institution immediately before the particular time and, as a result of the election becoming effective, the registrant reduces at the particular time the extent to which personal property of the registrant is used as capital property in commercial activities of the registrant, subsections 193(1) and 206(4) and (5) apply, with such modifications as the circumstances require, to the reduction in use, as if the property were real property.Registrant becoming financial institutionWhere a registrant at any time becomes a financial institution and, immediately before that time, the registrant was using personal property of the registrant as capital property of the registrant, the following rules apply:where, immediately before that time, the registrant was not using the property primarily in commercial activities of the registrant and, immediately after that time, the property is for use in commercial activities of the registrant, the registrant shall be deemed, for the purposes of this Part, to have changed at that time the extent to which the property is used in commercial activities of the registrant, and subsection 206(2) applies, with such modifications as the circumstances require, to the change in use as if the property were real property that was not used immediately before that time in commercial activities of the registrant; andwhere, immediately before that time, the registrant was using the property primarily in commercial activities of the registrant and, immediately after that time, the property is not for use exclusively in commercial activities of the registrant, the registrant shall be deemed, for the purposes of this Part, to have changed at that time the extent to which the property is used in commercial activities of the registrant, and subsections 193(1) and 206(4) and (5) apply, with such modifications as the circumstances require, to the change in use as if the property were real property used immediately before that time exclusively in commercial activities of the registrant.Registrant ceasing to be financial institutionWhere a registrant at any time ceases to be a financial institution and, immediately before that time, the registrant was using personal property of the registrant as capital property of the registrant, the following rules apply:where, immediately before that time, the registrant was using the property as capital property but not exclusively in commercial activities of the registrant and, immediately after that time, the property is for use primarily in commercial activities of the registrant, the registrant shall be deemed, for the purposes of this Part, to have begun at that time to use the property exclusively in commercial activities of the registrant, and subsections 206(2) and (3) apply, with such modifications as the circumstances require, to the change in use as if the property were real property; andwhere, immediately before that time, the registrant was using the property as capital property in commercial activities of the registrant and, immediately after that time, the property is not for use primarily in commercial activities of the registrant, the registrant shall be deemed, for the purposes of this Part, to have ceased at that time to use the property in commercial activities of the registrant, and subsections 193(1) and 206(4) apply, with such modifications as the circumstances require, to the change in use as if the property were real property.Acquisition of a businessNotwithstanding section 197, wherein acquiring a business or part of a business from a registrant, a financial institution that is a registrant is deemed under subsection 167(1) to have acquired property for use exclusively in commercial activities of the institution, andimmediately after the time possession of the property is transferred to the institution under the agreement for the supply of the business or part, the property is for use by the institution as capital property of the institution but not exclusively in commercial activities of the institution,subsections 193(1) and 206(4) and (5) apply, with such modifications as the circumstances require, to the change in use of the property as if the property were real property.Acquisition of assetDespite section 197, subsection 193(1) applies to the supplier of a supply of capital personal property that is made under an agreement for a qualifying supply (as defined in subsection 167.11(1)), and subsections 206(4) and (5) apply to the recipient of the supply of capital personal property, with any modifications that the circumstances require, as if the property were real property ifthe supplier and the recipient are both registrants at the time the qualifying supply is made and they make a joint election referred to in subsection 167.11(2) in respect of the qualifying supply;in acquiring the property, the recipient is deemed under subsection 167.11(3) to have acquired the property for use exclusively in commercial activities of the recipient; andimmediately after the earlier of the time the ownership of the property and the time the possession of the property is transferred to the recipient under the agreement for the qualifying supply, the property is for use by the recipient as capital property of the recipient but not exclusively in commercial activities of the recipient.IdemNotwithstanding section 197, wherein acquiring a business or part of a business from a registrant, a financial institution that is a registrant is deemed under subsection 167(1) to have acquired property but not for use in commercial activities of the institution,possession of the property is transferred to the institution under the agreement for the supply of the business or part after 1993, andimmediately after the transfer, the property is for use by the institution as capital property of the institution in commercial activities of the institution,subsection 206(2) applies, with such modifications as the circumstances require, to the change in use of the property as if the property were real property.Acquisition of assetDespite section 197, subsection 206(2) applies to the recipient of a supply of capital personal property that is made under an agreement for a qualifying supply (as defined in subsection 167.11(1)), with any modifications that the circumstances require, as if the property were real property ifthe supplier and the recipient of the capital personal property are both registrants at the time the qualifying supply is made and they make a joint election referred to in subsection 167.11(2) in respect of the qualifying supply;in acquiring the property, the recipient is deemed under subsection 167.11(3) to have acquired the property for use exclusively in activities of the recipient that are not commercial activities; andimmediately after the earlier of the time the ownership of the property and the time the possession of the property is transferred to the recipient under the agreement for the qualifying supply, the property is for use by the recipient as capital property of the recipient in commercial activities of the recipient.AmalgamationWherea particular corporation that is not a financial institution is merged or amalgamated with one or more other corporations to form a corporation (in this subsection referred to as the “new corporation”) that is a financial institution in circumstances to which section 271 applies,the new corporation is a registrant, andpersonal property that was capital property of the particular corporation becomes at any time the property of the new corporation as a consequence of the merger or amalgamation,subsection (2) applies to the property as if the new corporation became a financial institution at that time.Winding-upWherea particular corporation that is not a financial institution is wound up at a particular time in circumstances to which section 272 applies,not less than 90% of the issued shares of each class of the capital stock of the corporation were, immediately before the particular time, owned by another corporation (in this subsection referred to as the “new corporation”) that is a financial institution,the new corporation is a registrant, andpersonal property that was capital property of the particular corporation becomes at any time the property of the new corporation as a consequence of the winding-up,subsection (2) applies to the property as if the new corporation became a financial institution at the particular time.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 71;
2007, c. 18, s. 17.
Previous VersionCapital Real PropertyApplicationSubject to subsection 211(1), this section does not apply in respect of property acquired by a registrant who isan individual;a public sector body that is not a financial institution; ora prescribed registrant.Beginning use in commercial activitiesFor the purposes of this Part, where a registrant last acquired real property for use as capital property of the registrant but not for use in commercial activities of the registrant and the registrant begins, at a particular time, to use the property as capital property in commercial activities of the registrant, except where the registrant becomes a registrant at the particular time, the registrant shall be deemedto have received, at the particular time, a supply of the property by way of sale; andexcept where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the basic tax content of the property at the particular time.Increasing use in commercial activitiesWhere a registrant last acquired real property for use as capital property in commercial activities of the registrant and the registrant increases, at a particular time, the extent to which the property is used in commercial activities of the registrant, for the purposes of determining an input tax credit of the registrant, the registrant shall be deemedto have received, immediately before the particular time, a supply of a portion of the property for use as capital property exclusively in commercial activities of the registrant; andexcept where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the amount determined by the formulaA × BwhereAis the basic tax content of the property at the particular time, andBis the extent (expressed as a percentage of the total use of the property by the registrant at the particular time) to which the registrant increased the use of the property in commercial activities of the registrant at the particular time.Ceasing use in commercial activitiesFor the purposes of this Part, where a registrant last acquired real property for use as capital property in commercial activities of the registrant and the registrant begins, at a particular time, to use the property exclusively for other purposes, the registrant shall be deemedto have made, immediately before the particular time, a supply of the property by way of sale and, except where the supply is an exempt supply, to have collected, at the particular time, tax in respect of the supply equal to the basic tax content of the property at the particular time; andto have received, at the particular time, a supply of the property by way of sale and, except where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the amount determined under paragraph (a).Reducing use in commercial activitiesExcept where subsection (4) applies, where a registrant last acquired real property for use as capital property in commercial activities of the registrant and the registrant reduces, at a particular time, the extent to which the property is used in commercial activities of the registrant, for the purposes of determining the net tax of the registrant for the reporting period of the registrant that includes the particular time, the registrant shall be deemedto have made, immediately before the particular time, a supply of a portion of the property; andexcept where the supply is an exempt supply, to have collected, at the particular time, tax in respect of the supply equal to the amount determined by the formulaA × BwhereAis the basic tax content of the property at the particular time, andBis the extent (expressed as a percentage of the total use of the property by the registrant at the particular time) to which the registrant reduced the use of the property in commercial activities of the registrant at the particular time.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 72;
1997, c. 10, s. 194.
Individual ceasing use in commercial activitiesFor the purposes of this Part, where an individual who is a registrant last acquired real property for use as capital property in commercial activities of the individual, and not primarily for the personal use and enjoyment of the individual or a related individual, and the individual begins, at a particular time, to use the property exclusively for other purposes, or primarily for the personal use and enjoyment of the individual or a related individual, the individual shall be deemedto have made, immediately before the particular time, a supply of the property by way of sale and, except where the supply is an exempt supply, to have collected, at the particular time, tax in respect of the supply equal to the amount determined by the formulaA - BwhereAis the basic tax content of the property at the particular time, andBis the tax, if any, that the individual is deemed under section 190 to have collected at the particular time in respect of the property; andto have received, at the particular time, a supply of the property by way of sale and, except where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the amount determined under paragraph (a).Individual reducing use in commercial activitiesExcept where subsection (1) applies, where an individual who is a registrant last acquired real property for use as capital property in commercial activities of the individual, and not primarily for the personal use and enjoyment of the individual or a related individual, and the individual reduces, at a particular time, the extent to which the property is used in commercial activities of the individual without beginning to use the property primarily for the personal use and enjoyment of the individual or a related individual, for the purposes of determining the net tax of the individual, the individual shall be deemedto have made, immediately before the particular time, a supply by way of sale of a portion of the property; andexcept where the supply is an exempt supply, to have collected, at the particular time, tax in respect of the supply equal to the amount determined by the formula(A × B) - CwhereAis the basic tax content of the property at the particular time,Bis the extent (expressed as a percentage of the total use of the property by the individual at the particular time) to which the individual reduced the use of the property in commercial activities of the individual at the particular time, andCis the tax, if any, that the individual is deemed under section 190 to have collected at the particular time in respect of the property.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 73;
1997, c. 10, s. 195.
Acquisition of capital real property by individualSubject to this section, where an individual who is a registrant acquires real property for use as capital property of the individual but primarily for the personal use and enjoyment of the individual or a related individual, the tax payable by the individual in respect of the acquisition of the property shall not be included in determining an input tax credit of the individual.Individual beginning use in commercial activitiesFor the purposes of this Part, where an individual who is a registrant last acquired real property for use as capital property of the individual andprimarily for the personal use and enjoyment of the individual or a related individual, ornot for use in commercial activities of the individual,and the individual begins, at a particular time, to use the property as capital property in commercial activities of the individual and not primarily for the personal use and enjoyment of the individual or a related individual, the individual is deemedto have received, at the particular time, a supply by way of sale of the property; andexcept where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the basic tax content of the property at the particular time.Individual increasing use in commercial activitiesWhere an individual who is a registrant last acquired real property for use as capital property in commercial activities of the individual and not primarily for the personal use and enjoyment of the individual or a related individual, and the individual increases, at a particular time, the extent to which the property is used in commercial activities of the individual without beginning to use the property primarily for the personal use and enjoyment of the individual or a related individual, for the purposes of determining an input tax credit of the individual, the individual shall be deemedto have received, at the particular time, a supply by way of sale of a portion of the property for use as capital property exclusively in commercial activities of the individual; andexcept where the supply is an exempt supply, to have paid, at the particular time, tax in respect of the supply equal to the amount determined by the formulaA × BwhereAis the basic tax content of the property at the particular time, andBis the extent (expressed as a percentage of the total use of the property by the individual at the particular time) to which the individual increased the use of the property in commercial activities of the individual at the particular time.Improvement to capital real property by individualWhere an individual who is a registrant acquires, imports or brings into a participating province an improvement to real property that is capital property of the individual, the tax payable by the individual in respect of the improvement shall not be included in determining an input tax credit of the individual if, at the time that tax becomes payable or is paid without having become payable, the property is primarily for the personal use and enjoyment of the individual or a related individual.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 74;
1997, c. 10, ss. 40.1, 196.
Real property of certain public service bodiesIf a registrant (other than a financial institution or a government) is a public service body, section 141.2 and subsections 199(2) to (4) and 200(2) and (3) apply, with any modifications that the circumstances require, to real property acquired by the registrant for use as capital property of the registrant or, in the case of subsection 199(4), to improvements to real property that is capital property of the registrant, as if the real property were personal property.Real property of certain Crown agentsIf a registrant (other than a financial institution) is a specified Crown agent, section 141.2 and subsections 199(2) to (4) and 200(2) and (4) apply, with any modifications that the circumstances require, to real property acquired by the registrant for use as capital property of the registrant or, in the case of subsection 199(4), to improvements to real property that is capital property of the registrant, as if the real property were personal property.ExceptionDespite subsections (1) and (2), section 141.2 and subsections 200(3) and (4) do not apply toa supply of a residential complex or an interest in one made by way of sale; ora supply of real property made by way of sale to an individual.
NOTE: Application provisions are not included in the consolidated text;
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 75.
Election for real property of a public service bodyWhere a public service body files an election made under this subsection in respect ofreal property that is capital property of the body,real property of the body that is held by the body in inventory for the purpose of supply, orreal property acquired by the body by way of lease, licence or similar arrangement for the purpose of making a supply of the property by way of lease, licence or similar arrangement or making a supply of the arrangement by way of assignment,throughout the period the election is in effect, subsection 193(1) and section 206 apply, and section 209 does not apply, to the property.Deemed sale where electionFor the purposes of this Part, where a public service body has filed an election made under subsection (1) in respect of real property described in paragraph (1)(a) or (b) that takes effect on a particular day and the body does not acquire the property on the particular day or become a registrant on the particular day, the body shall be deemedto have made, immediately before the particular day, a taxable supply of the property by way of sale and to have collected, on the particular day, tax in respect of the supply equal to the basic tax content of the property on the particular day; andto have received, on the particular day, a taxable supply of the property by way of sale and to have paid, on the particular day, tax in respect of the supply equal to the amount determined under paragraph (a).Effect of electionAn election under subsection (1) in respect of real property of a person is effective for the period beginning on the day specified in the election and ending on the day that the person specifies in a notice of revocation of the election filed under this section.Deemed sale where revocationFor the purposes of this Part, where an election made under subsection (1) by a public service body in respect of real property described in paragraph (1)(a) or (b) is revoked and ceases to be effective on a day and the body does not cease to be a registrant on that day, the body shall be deemedto have made, immediately before that day, a taxable supply of the property by way of sale and to have collected, on that day, tax in respect of the supply equal to the basic tax content of the property on that day; andto have received, on that day, a taxable supply of the property by way of sale and to have paid, on that day, tax in respect of the supply equal to the basic tax content of the property on that day.Manner and form of election or revocationAn election made under subsection (1) by a person and a notice of revocation of such an election shallbe made in prescribed form containing prescribed information;specify the real property in respect of which the election or notice applies and the day the election becomes effective or, in the case of a notice of revocation, ceases to be effective; andbe filed with the Minister in prescribed manner within one month after the end of the reporting period of the person in which the election becomes effective or, in the case of a notice of revocation, ceases to be effective.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 76;
1997, c. 10, s. 197;
2006, c. 4, s. 18.
Previous VersionTax on Importation of GoodsImposition of goods and services taxSubject to this Part, every person who is liable under the Customs Act to pay duty on imported goods, or who would be so liable if the goods were subject to duty, shall pay to Her Majesty in right of Canada tax on the goods calculated at the rate of 5% on the value of the goods.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 77;
1997, c. 10, s. 198;
2006, c. 4, s. 19;
2007, c. 35, s. 186.
Previous VersionMeaning of commercial goodsIn this section, commercial goods means goods that are imported for sale or for any commercial, industrial, occupational, institutional or other like use.Tax in participating provinceSubject to this Part, every person who is resident in a participating province and is liable under the Customs Act to pay duty on imported goods, or who would be so liable if the goods were subject to duty, shall pay to Her Majesty in right of Canada, in addition to the tax imposed by section 212, a tax on the goods calculated at the tax rate for that province on the value of the goods.ExceptionTax under subsection (2) does not apply to goods that are accounted for as commercial goods under section 32 of the Customs Act, specified motor vehicles or a mobile home or a floating home that has been used or occupied in Canada by any individual.Application in offshore areasSubsection (2) does not apply to goods imported by or on behalf of a person who is resident in the Nova Scotia offshore area or the Newfoundland offshore area unless the goods are imported for consumption, use or supply in the course of an offshore activity or the person is also resident in a participating province that is not an offshore area.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1997, c. 10, s. 198.
ExceptionNo tax under this Division is payable in respect of goods included in Schedule VII.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12.
SecurityFor the purposes of this Division, the Minister may require a person mentioned in section 212 or 212.1 who imports goods to provide security, in an amount determined by the Minister and subject to such terms and conditions as the Minister may specify, for the payment of any amount that is or may become payable by the person under this Division, where provisions of the Customs Act, the Customs Tariff or any other laws relating to customs under which security may be required do not apply to the payment of that amount.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 78;
1997, c. 10, s. 199.
Import certificateThe Minister may, on the request of a registrant who imports goods, issue to the registrant, subject to such conditions as the Minister may specify, a written authorization (in this section referred to as an “import certificate”) for the purpose of applying, on and after the effective date specified in the authorization, section 8.1 of Schedule VII in respect of goods of a particular class imported by the registrant, in which event the Minister shall assign to the registrant a number to be disclosed when the goods are accounted for under section 32 of the Customs Act.ApplicationA request for an import certificate shall contain prescribed information and be filed with the Minister in prescribed manner.CancellationThe Minister may, after giving a person to whom an import certificate has been issued reasonable written notice, cancel the import certificate of the person ifthe person fails to comply with any condition attached to the certificate or any provision of this Division,the Minister determines that it is no longer required for the purposes for which it was issued, or generally for the purposes of this Division, orit can reasonably be expected that the person will no longer be importing goods of a class in respect of which the certificate was issued in circumstances in which the goods would be included in Schedule VII,and, where the Minister cancels the import certificate of a person, the Minister shall notify the person in writing of the cancellation and the effective date of the cancellation.Application after cancellationWhere the Minister has cancelled the import certificate of a person in circumstances described in paragraph (3)(a), the Minister shall not issue a new certificate under subsection (1) before the day that is two years after the day on which the cancellation is effective.CessationAn import certificate issued under this section ceases to have effect on the earlier ofthe effective date of the cancellation of the certificate under subsection (3), andthe day that is three years after the effective date of the certificate.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 78;
2001, c. 15, s. 5.
Payment of taxesTax on goods under this Division shall be paid and collected under the Customs Act, and interest and penalties shall be imposed, calculated, paid and collected under that Act, as if the tax were a customs duty levied on the goods under the Customs Tariff and, for those purposes, the Customs Act, with such modifications as the circumstances require, applies subject to this Division.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 79;
1997, c. 10, s. 200.
DeductionWhere tax under section 212.1 is payable by a person and all or any portion of that tax is an amount that is prescribed for the purposes of subsection 234(3), that amount shall be deducted from that tax in determining the amount required to be paid and collected under section 214.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1997, c. 10, s. 200.
Value of goodsFor the purposes of this Division, the value of goods shall be deemed to be equal to the total ofthe value of the goods, as it would be determined under the Customs Act for the purpose of calculating duties imposed on the goods at a percentage rate, whether the goods are in fact subject to duty, andthe amount of all duties and taxes, if any, payable on the goods under the Customs Tariff, the Excise Act, 2001, the Special Import Measures Act, this Act (other than this Part) or any other law relating to customs.IdemNotwithstanding subsection (1), for the purposes of this Division, the value of goods imported in prescribed circumstances shall be determined in prescribed manner.Value of goods re-imported after processingThe value of goods that are being imported for the first time after having been processed (as defined in subsection 2(1) of the Value of Imported Goods (GST/HST) Regulations) outside Canada shall be determined for the purposes of this Division without regard to section 13 of those Regulations ifthe value of the goods would, but for this subsection, be determined for the purposes of this Division under that section; andthey are the same goods, in their processed state, as other goods, or incorporate, as a result of their processing, other goods, that were last imported in circumstances in which no tax was payable under this Division because of section 8.1 or 11 of Schedule VII.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 80;
2001, c. 15, s. 6;
2007, c. 18, s. 143.
Previous VersionRebate for returned goodsWherea person paid tax under this Division on goods that were acquired by the person on consignment, approval, sale-or-return basis or other similar terms,the goods are, within sixty days after their release and before they are used or consumed otherwise than on a trial basis, exported by the person for the purpose of returning them to the supplier and are not damaged after their release and before the exportation, andwithin two years after the day the tax was paid, the person files with the Minister an application, in prescribed form containing prescribed information, for a rebate of the tax,the Minister shall, subject to section 263, pay a rebate to the person equal to the amount of the tax paid on the goods.Rebate for goods damaged, etc.Wherea person paid an amount as tax under this Division on goods that were importedfor consumption, use or supply otherwise than exclusively in the course of a commercial activity of the person, orfor consumption, use or supply in the course of a commercial activity of the person and the person was, at the time of the release of the goods, a small supplier who was not registered under Subdivision d of Division V,the Minister of Public Safety and Emergency Preparedness has, under any of sections 73, 74 and 76 of the Customs Act, granted an abatement or refund of all or part of the duties paid on the goods,the person has not been and is not entitled to be compensated under a warranty for loss suffered because of any of the circumstances described in those sections by receiving a supply of replacement parts, or replacement property, that are goods included in section 5 of Schedule VII, andwithin two years after the day the amount was paid as tax under this Division, the person files with the Minister an application, in prescribed form containing prescribed information, for a rebate of the amount,the Minister shall, subject to section 263, pay a rebate to the person equal to the amount determined by the formula(A × B) + [A × (B/C) × D]whereAis the total of the rate of tax imposed under section 212 at the time the goods were accounted for under subsection 32(1), (2) or (5) of the Customs Act and, where an amount was paid as tax under section 212.1, the rate of tax imposed under that section at that time;Bis the amount of the abatement or refund granted under the Customs Act,Cis the amount of the duties that were the subject of the abatement or refund, andDis the value for duty of the goods under that Act.Abatement or refund of tax as if it were dutySubject to section 263, sections 73, 74 and 76 of the Customs Act apply, with any modifications that the circumstances require, to an amount paid by a person as tax under this Division as though the amount were duties paid under that Act, wherethe amount was paid as tax on goods that were importedfor consumption, use or supply otherwise than exclusively in the course of a commercial activity of the person, orfor consumption, use or supply in the course of a commercial activity of the person and the person was, at the time of the release of the goods, a small supplier who was not registered under Subdivision d of Division V;if the goods had been subject to duties paid under that Act, an abatement or refund of the whole or part of the duties could have been granted under section 73, 74 or 76 of that Act because of circumstancesdescribed in paragraph 73(a) or (b), any of paragraphs 74(1)(a) to (c) or subsection 76(1) of that Act, orin which an error was made in the determination under subsection 58(2) of that Act of the value of the goods and the determination has not been the subject of a decision under any of sections 59 to 61 of that Act;the person has not been and is not entitled to be compensated under a warranty for loss suffered because of any of those circumstances by receiving a supply of replacement parts, or replacement property, that are goods included in section 5 of Schedule VII; andwithin two years after the day on which the amount was paid as tax under this Division, the person files with the Minister an application, in prescribed form containing prescribed information, for a rebate of the amount.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1993, c. 27, s. 81;
1997, c. 10, ss. 41, 201;
2000, c. 30, s. 44;
2005, c. 38, ss. 105, 145;
2007, c. 18, s. 18.
Previous VersionMeaning of determination of the tax statusIn this section, determination of the tax status of goods means a determination, re-determination or further re-determination that the goods are, or are not, included in Schedule VII.Application of Customs ActSubject to subsections (4) to (6), the Customs Act (other than subsections 67(2) and (3) and sections 68 and 70) and the regulations made under that Act apply, with such modifications as the circumstances require, to the determination of the tax status of goods for the purposes of this Division as if it were the determination, re-determination or further re-determination, as the case requires, of the tariff classification of the goods.IdemThe Customs Act and the regulations made under that Act apply, with such modifications as the circumstances require, to the appraisal, re-appraisal or further re-appraisal of the value of goods for the purposes of this Division as if it were the appraisal, re-appraisal or further re-appraisal, as the case requires, of the value for duty of the goods.Appeals of determination of tax statusIn applying the Customs Act to a determination of the tax status of goods, the references in that Act to the “Canadian International Trade Tribunal” and to the “Secretary of the Canadian International Trade Tribunal” shall be read as references to the “Tax Court of Canada” and to the “Registrar of the Tax Court of Canada”, respectively.Application of Part IX and Tax Court of Canada ActThe provisions of this Part and of the Tax Court of Canada Act that apply to an appeal taken under section 302 apply, with any modifications that the circumstances require, to an appeal taken under subsection 67(1) of the Customs Act from a decision of the President of the Canada Border Services Agency made under section 60 or 61 of that Act in a determination of the tax status of goods as if the decision of the President were a confirmation of an assessment or a reassessment made by the Minister under subsection 301(3) or (4) as a consequence of a notice of objection filed under subsection 301(1.1) by the person to whom the President is required to give notice under section 60 or 61 of the Customs Act, as the case may be, of the decision.Rebate resulting from appraisal or re-appraisalIf, because of an appraisal, a re-appraisal or a further re-appraisal of the value of goods or a determination of the tax status of goods, it is determined that the amount that was paid as tax under this Division on the goods exceeds the amount of tax that is required under this Division to be paid on the goods and a refund of the excess would be given under paragraph 59(3)(b) or 65(1)(b) of the Customs Act if the tax under this Division on the goods were a customs duty on the goods levied under the Customs Tariff, a rebate of the excess shall, subject to section 263, be paid to the person who paid the excess, and the provisions of the Customs Act that relate to the payment of such refunds and interest on such refunds apply, with any modifications that the circumstances require, as if the rebate of the excess were a refund of duty.Application of s. 69 of Customs ActSubject to section 263, section 69 of the Customs Act applies, with such modifications as the circumstances require, where an appeal in respect of the value of goods or a determination of the tax status of goods is taken for the purpose of determining whether tax under this Division on the goods is payable or of determining the amount of such tax.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 82;
1997, c. 10, s. 41.1;
1999, c. 17, s. 155;
2005, c. 38, s. 106;
2007, c. 18, s. 19.
Previous VersionTax on Imported Taxable SuppliesDefinitionsThe following definitions apply in this Division.Canadian activityactivité au CanadaCanadian activity of a person means an activity of the person carried on, engaged in or conducted in Canada.dutytâcheduty means anything done by an employee in the course of, or in relation to, the office or employment of the employee.employeesalariéemployee includes an individual who agrees to become an employee.external chargefrais externesexternal charge for a specified year of a qualifying taxpayer in respect of an outlay or expense described in any of paragraphs 217.1(2)(a) to (c) means the amount in respect of the outlay or expense determined by the formulaA – BwhereAis the amount of the outlay or expense thatis allowed as a deduction, an allowance or an allocation for a reserve under the Income Tax Act in computing the qualifying taxpayer’s income for the specified year, or would be so allowed ifthe qualifying taxpayer’s income were computed in accordance with that Act,the qualifying taxpayer carried on a business in Canada, andthat Act applied to the qualifying taxpayer, andmay reasonably be regarded as being applicable to a Canadian activity of the qualifying taxpayer; andBis the total of all amounts, each of which is included in the amount determined under the description of A and is a permitted deduction for the specified year or a preceding specified year of the qualifying taxpayer.imported taxable supplyfourniture taxable importéeimported taxable supply means a taxable supply (other than a zero-rated or prescribed supply) of a service made outside Canada to a person who is resident in Canada, other than a supply of a service that isacquired for consumption, use or supply exclusively in the course of commercial activities of the person or activities that are engaged in exclusively outside Canada by the person and that are not part of a business or an adventure or concern in the nature of trade engaged in by the person in Canada,consumed by an individual exclusively outside Canada (other than a training service the supply of which is made to a person who is not a consumer),in respect of real property situated outside Canada,a service (other than a custodial or nominee service in respect of securities or precious metals of the person) in respect of tangible personal property that issituated outside Canada at the time the service is performed, orexported as soon after the service is performed as is reasonable having regard to the circumstances surrounding the exportation and is not consumed, used or supplied in Canada after the service is performed and before the exportation of the property,a transportation service, ora service rendered in connection with criminal, civil or administrative litigation outside Canada, other than a service rendered before the commencement of such litigation,a taxable supply (other than a zero-rated or prescribed supply) of tangible personal property made by a non-resident person who is not registered under Subdivision d of Division V to a recipient who is a registrant wherephysical possession of the property is transferred to the recipient in Canada by another registrant whomade a supply in Canada of the property by way of sale, or a supply in Canada of a service of manufacturing or producing the property, to a non-resident person, oracquired physical possession of the property for the purpose of making a supply of a commercial service in respect of the property to a non-resident person,the recipient gives the other registrant a certificate of the recipient described in paragraph 179(2)(c), andthe recipient is not acquiring the property for consumption, use or supply exclusively in the course of commercial activities of the recipient or the property is a passenger vehicle that the recipient is acquiring for use in Canada as capital property in commercial activities of the recipient and that has a capital cost to the recipient exceeding the amount deemed under paragraph 13(7)(g) or (h) of the Income Tax Act to be the capital cost of the vehicle to the recipient for the purposes of section 13 of that Act,a taxable supply (other than a zero-rated or prescribed supply) of tangible personal property made at a particular time by a non-resident person who is not registered under Subdivision d of Division V to a particular recipient who is resident in Canada, wherethe property is delivered or made available in Canada to the particular recipient and the particular recipient is not a registrant who is acquiring the property exclusively for consumption, use or supply in the course of commercial activities of the recipient, andthe non-resident person previously made a taxable supply of the property by way of lease, licence or similar arrangement to a registrant who was not dealing at arm’s length with the non-resident person or who was related to the particular recipient, the property was delivered or made available in Canada to the registrant, the registrant was entitled to claim an input tax credit in respect of the property or was not required to pay tax under this Division in respect of the supply only because the registrant acquired the property exclusively for consumption, use or supply in the course of commercial activities of the registrant, and that supply was the last supply of the property made before the particular time by the non-resident person to a registrant,a particular taxable supply (other than a zero-rated supply) of property by way of lease, licence or similar arrangement that is deemed under subsection 143(1) to be made outside Canada to a recipient (in this paragraph referred to as the “lessee”) who is resident in Canada, ifa previous supply of the property to the lessee was made by way of lease, licence or similar arrangement (in this paragraph referred to as the “first lease”) that was deemed under subsection 178.8(4) to be made in Canada,the agreement for the particular taxable supply is an agreement (in this subparagraph referred to as a “subsequent lease”) that results from the assignment of, or that succeeds, upon the renewal or variation of, the first lease or a subsequent lease, andthe lessee is not a registrant who is acquiring the property for consumption, use or supply exclusively in the course of commercial activities of the lessee;a taxable supply of a continuous transmission commodity, if the supply is deemed under section 143 to be made outside Canada to a registrant by a person who was the recipient of a supply of the commodity that was a zero-rated supply included in section 15.1 of Part V of Schedule VI or that would, but for subparagraph (a)(v) of that section, have been included in that section, and the registrant is not acquiring the commodity for consumption, use or supply exclusively in the course of commercial activities of the registrant,a supply, included in section 15.2 of Part V of Schedule VI, of a continuous transmission commodity that is neither exported, as described in paragraph (a) of that section, nor supplied, as described in paragraph (b) of that section, by the recipient and the recipient is not acquiring the commodity for consumption, use or supply exclusively in the course of commercial activities of the recipient,a taxable supply (other than a zero-rated or prescribed supply) of intangible personal property made outside Canada to a person who is resident in Canada, other than a supply of property thatis acquired for consumption, use or supply exclusively in the course of commercial activities of the person or activities that are engaged in exclusively outside Canada by the person and that are not part of a business or an adventure or concern in the nature of trade engaged in by the person in Canada,may not be used in Canada, orrelates to real property situated outside Canada, to a service to be performed wholly outside Canada or to tangible personal property situated outside Canada,a taxable supply made in Canada of intangible personal property that is a zero-rated supply only because it is included in section 10 or 10.1 of Part V of Schedule VI, other thana supply that is made to a consumer of the property, ora supply of intangible personal property that is acquired for consumption, use or supply exclusively in the course of commercial activities of the recipient of the supply or activities that are engaged in exclusively outside Canada by the recipient of the supply and that are not part of a business or adventure or concern in the nature of trade engaged in by that recipient in Canada,a supply of property that is a zero-rated supply only because it is included in section 1.1 of Part V of Schedule VI, if the recipient is not acquiring the property for consumption, use or supply exclusively in the course of commercial activities of the recipient andan authorization of the recipient to use the certificate referred to in that section is not in effect at the time the supply is made, orthe recipient does not export the property in the circumstances described in paragraphs 1(b) to (d) of that Part; ora supply of property that is a zero-rated supply only because it is included in section 1.2 of Part V of Schedule VI, if the recipient is not acquiring the property for consumption, use or supply exclusively in the course of commercial activities of the recipient andan authorization of the recipient to use the certificate referred to in that section is not in effect at the time the supply is made, orthe recipient is not acquiring the property for use or supply as domestic inventory or as added property (as those expressions are defined in subsection 273.1(1)).loadingchargementloading means any part of the value of the consideration for a supply of a financial service that is attributable to administrative expenses, an error or profit margin, business handling costs, commissions, communications expenses, claims handling costs, employee compensation or benefits, execution or clearing costs, management fees, marketing or advertising costs, occupancy or equipment expenses, operating expenses, acquisition costs, premium collection costs, processing costs or any other costs or expenses of a person that makes the supply, other than commissions for a specified financial service or the part of the value of the consideration that is equal toif the financial service includes the issuance, renewal, variation or transfer of ownership of an insurance policy but not of any other qualifying instrument, the estimate of the net premium of the insurance policy;if the financial service includes the issuance, renewal, variation or transfer of ownership of a qualifying instrument (other than an insurance policy), the estimate of the default risk premium that is directly associated with the qualifying instrument; andif the financial service includes the issuance, renewal, variation or transfer of ownership of an insurance policy and a qualifying instrument (other than an insurance policy), the amount determined by the formulaA + BwhereAis the estimate of the net premium of the insurance policy, andBis the estimate of the default risk premium that is directly associated with the qualifying instrument.permitted deductiondéduction autoriséepermitted deduction for a specified year of a qualifying taxpayer means an amount that isconsideration for a supply of property or a service, or the value of imported goods, upon which tax under this Part (other than section 218.01 or subsection 218.1(1.2)) became payable during the specified year by the qualifying taxpayer;tax referred to in paragraph (a) in respect of a supply or importation referred to in that paragraph;a provincial levy that is prescribed for the purposes of section 154 and is in respect of a supply referred to in paragraph (a);an amount that is deemed, under subsection 248(18) or (18.1) of the Income Tax Act, to be assistance repaid by the qualifying taxpayer in respect of property or a service referred to in paragraph (a);consideration for a supply of property or a service (other than a financial service) made to the qualifying taxpayer as part of a transaction or series of transactions in which all participants deal at arm’s length with the qualifying taxpayer, unlessthat consideration is included in paragraph (a), oran activity carried on, engaged in or conducted outside Canada, through a qualifying establishment of the qualifying taxpayer or of a person related to the qualifying taxpayer, relates in any manner to the supply;qualifying compensation of an employee of the qualifying taxpayer that is paid in the specified year by the qualifying taxpayer if the employee was primarily in Canada while performing its duties during the specified year;interest that is paid or payable by the qualifying taxpayer as the consideration for a supply of a financial service made to the qualifying taxpayer (other than an amount paid or credited by the qualifying taxpayer, or deemed by Part I of the Income Tax Act to have been paid or credited in the specified year by the qualifying taxpayer, to a person as, on account or in lieu of payment of, or in satisfaction of, a management or administration fee or charge (within the meaning of subsection 212(4) of that Act));dividends;consideration (other than interest referred to in paragraph (g) or dividends referred to in paragraph (h)) for a specified arm’s length supply made to the qualifying taxpayer;consideration (other than interest referred to in paragraph (g) or dividends referred to in paragraph (h)) for a supply (other than a specified derivative supply) of a specified financial service made to the qualifying taxpayer;consideration (other than interest referred to in paragraph (g), dividends referred to in paragraph (h) or loading) for a specified non-arm’s length supply made to the qualifying taxpayer;consideration (other than interest referred to in paragraph (g) or dividends referred to in paragraph (h)) for a specified derivative supply made to the qualifying taxpayer; ora prescribed amount.qualifying compensationrétribution admissiblequalifying compensation of an employee means any salary, wages and other remuneration of the employee and any other amount that is required to be included as income from an office or employment in computing the income of the employee for the purposes of the Income Tax Act.qualifying considerationcontrepartie admissiblequalifying consideration for a specified year of a qualifying taxpayer in respect of an outlay made, or expense incurred, outside Canada means the amount in respect of the outlay or expense determined by the formulaA – BwhereAis the amount of the outlay or expense thatis allowed as a deduction, an allowance or an allocation for a reserve under the Income Tax Act in computing the qualifying taxpayer’s income for the specified year, or would be so allowed ifthe qualifying taxpayer’s income were computed in accordance with that Act,the qualifying taxpayer carried on a business in Canada, andthat Act applied to the qualifying taxpayer, andmay reasonably be regarded as being applicable to a Canadian activity of the qualifying taxpayer; andBis the total of all amounts each of which is included in the amount determined under the description of A and isan amount (other than an amount included in paragraph (b)) that is a permitted deduction for the specified year or a preceding specified year of the qualifying taxpayer, oran amount that represents a cost to a qualifying establishment of the qualifying taxpayer in a country other than Canada, or a share of a profit of the qualifying taxpayer that is redistributed from a qualifying establishment of the qualifying taxpayer in Canada to a qualifying establishment of the qualifying taxpayer in a country other than Canada, that is solely attributable to the issuance, renewal, variance or transfer of ownership by the qualifying taxpayer of a financial instrument that is a derivative, provided that all or substantially all of the amount isan error or profit margin, or employee compensation or benefits, that is reasonably attributable to the issuance, renewal, variance or transfer of ownership, orthe estimate of the default risk premium that is directly associated with the derivative.qualifying establishmentétablissement admissiblequalifying establishment means a permanent establishment as defined in subsection 123(1) or a permanent establishment as defined in subsection 132.1(2).qualifying instrumentinstrument admissiblequalifying instrument means money, a credit card voucher, a charge card voucher or a financial instrument.qualifying serviceservice admissiblequalifying service means a service or duty.reporting period[Repealed, 1997, c. 10, s. 42]specified arm’s length supplyfourniture déterminée entre personnes sans lien de dépendancespecified arm’s length supply means a supply (other than a specified derivative supply) of a financial service (other than a specified financial service) made to a qualifying taxpayer as part of a transaction or series of transactions in which all participants deal at arm’s length with the qualifying taxpayer.specified derivative supplyfourniture déterminée d’instrument dérivéspecified derivative supply means a supplythat is a supply of a financial service of issuing, renewing, varying or transferring the ownership of a financial instrument that is a derivative, or that is a supply made by an agent, salesperson or broker of arranging for the issuance, renewal, variance or transfer of ownership of a financial instrument that is a derivative; andfor which all or substantially all of the value of the consideration is attributable toany error or profit margin, or employee compensation or benefits, reasonably attributable to the supply, andamounts that are not loading.specified financial serviceservice financier déterminéspecified financial service means a financial service supplied to a qualifying taxpayer by an agent, salesperson or broker of arranging for the issuance, renewal, variation or transfer of ownership of a financial instrument that is property of a person other than the agent, salesperson or broker.specified non-arm’s length supplyfourniture déterminée entre personnes ayant un lien de dépendancespecified non-arm’s length supply means a supply (other than a specified derivative supply) of a financial service (other than a specified financial service) that includes the issuance, renewal, variation or transfer of ownership of a qualifying instrument, made to a qualifying taxpayer as part of a transaction or series of transactions in which any participant does not deal at arm’s length with the qualifying taxpayer.specified yearannée déterminéespecified year of a person meansin the case of a person that is described in paragraph (a) or (b) of the definition “taxation year” in subsection 123(1), the taxation year of the person;in the case of a person that is a registrant but is not described in paragraph (a) or (b) of the definition “taxation year” in subsection 123(1), the fiscal year of the person; andin any other case, the calendar year.taxing statuteloi fiscaletaxing statute of a country means a statute of the country, or of a state, province or other political subdivision of the country, that imposes a levy or charge of general application that is an income or profits tax.transactionopérationtransaction includes an arrangement or event.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 1990, c. 45, s. 12;
1993, c. 27, s. 83;
1997, c. 10, s. 42;
1999, c. 31, s. 86(F);
2000, c. 30, s. 45;
2001, c. 15, s. 7;
2007, c. 18, s. 20, c. 35, s. 2;
2010, c. 12, s. 61.
Previous VersionQualifying taxpayerFor the purposes of this Division, a person is a qualifying taxpayer throughout a specified year of the person ifthe person is a financial institution at any time in the specified year; andthe person, at any time in the specified yearis resident in Canada,has a qualifying establishment in Canada,where a majority of the persons having beneficial ownership of the person’s property in Canada are resident in Canada, carries on, engages in or conducts an activity in Canada, oris a prescribed person or a person of a prescribed class.Outlay made, or expense incurred, outside CanadaFor the purposes of this Division, an outlay made, or expense incurred, outside Canada includes any amount representingan outlay made, or expense incurred, by a qualifying taxpayer in respect ofproperty that is, in whole or in part, transferred outside Canada to the qualifying taxpayer,property, the possession or use of which is, in whole or in part, given or made available outside Canada to the qualifying taxpayer, ora service that is performed, in whole or in part, outside Canada for the benefit of the qualifying taxpayer or is rendered, in whole or in part, outside Canada to the qualifying taxpayer;an adjustment (within the meaning of subsection 247(2) of the Income Tax Act) to an outlay or expense described in paragraph (a);an expenditure or purchase in respect of a reportable transaction (as defined in section 233.1 of the Income Tax Act) in respect of which a qualifying taxpayer is required under that section to file with the Minister a return in prescribed form containing prescribed information, or would be so required if the qualifying taxpayer carried on a business in Canada and that Act applied to the qualifying taxpayer;in the case of a qualifying taxpayer that is resident in Canada, qualifying compensation of an employee paid in a specified year by the qualifying taxpayer ifin the specified year, a duty is performed by the employee outside Canada (in this subsection referred to as a “duty performed outside Canada”) at a qualifying establishment of the qualifying taxpayer or of a person related to the qualifying taxpayer, andit is not the case that all or substantially all of the duties performed outside Canada by the employee in the specified year are performed elsewhere than at such qualifying establishments; andin the case of a qualifying taxpayer that is not resident in Canada,an allocation by the qualifying taxpayer of an outlay or expense as an amount in respect of a business carried on in Canada by the qualifying taxpayer for the purpose of computing the qualifying taxpayer’s income under the Income Tax Act, or an amount that would be such an allocation ifthe qualifying taxpayer’s income were computed in accordance with that Act,anything done by the qualifying taxpayer through a qualifying establishment in Canada of the qualifying taxpayer were the carrying on of a business in Canada by the qualifying taxpayer, andthat Act applied to the qualifying taxpayer,an outlay or expense that may reasonably be regarded under the Income Tax Act as an amount that is applicable to a qualifying establishment in Canada of the qualifying taxpayer, or that would reasonably be so regarded if the qualifying establishment were a permanent establishment for purposes of that Act, the qualifying taxpayer carried on a business in Canada and that Act applied to the qualifying taxpayer, andqualifying compensation of an employee paid in a specified year by the qualifying taxpayer.Series of transactionsFor the purposes of this Division, if there is a reference to a series of transactions, the series is deemed to include any related transactions completed in contemplation of the series.Internal chargeFor the purposes of this Division, any part of an amount in respect of a transaction or dealing between a particular qualifying establishment of a qualifying taxpayer in Canada and another qualifying establishment of the qualifying taxpayer in a particular country other than Canada is an internal charge for a specified year of the qualifying taxpayer ifthe amount meets the following criteria:the amount would be allowed as a deduction, an allowance or an allocation for a reserve under the Income Tax Act in computing the income of the particular qualifying establishment for the specified year ifthat Act applied to the particular qualifying establishment,the income of the particular qualifying establishment were computed in accordance with that Act, andfor the purposes of that Act,anything done by the qualifying taxpayer through the particular qualifying establishment were the carrying on of a business in Canada,the particular qualifying establishment were a permanent establishment, andthe specified year were the particular qualifying establishment’s taxation year,where the qualifying taxpayer has not specified pursuant to paragraph 217.2(2)(c) that subparagraph (iii) is to apply in all cases in determining the internal charges for the specified year and the particular country is a taxing country (as defined in subsection 126(7) of the Income Tax Act) that has a tax treaty (as defined in subsection 248(1) of that Act) with Canada, the amount would be required to be included in computing, under a taxing statute of the particular country that applies to the qualifying taxpayer, or that would apply if the other qualifying establishment were a permanent establishment for the purposes of that statute, the other qualifying establishment’s income or profits for any period (in this paragraph referred to as a “taxing period”) that ends during the specified year ifthe taxing statute applied to the other qualifying establishment,the other qualifying establishment’s income or profits were computed in accordance with the taxing statute, andfor the purposes of the taxing statute,anything done by the qualifying taxpayer through the other qualifying establishment were the carrying on of a business in the particular country, andthe other qualifying establishment were a permanent establishment and had the same taxing periods that the qualifying taxpayer would have under the taxing statute, andwhere subparagraph (ii) does not apply, the amount would be required to be included in computing under the Income Tax Act the other qualifying establishment’s income for the specified year ifthe laws of Canada, and not the laws of the particular country, applied, with any modifications that the circumstances require, in the particular country,that Act applied to the other qualifying establishment,the other qualifying establishment’s income were computed in accordance with that Act, andfor the purposes of that Act,anything done by the qualifying taxpayer through the other qualifying establishment were the carrying on of a business in the particular country,the other qualifying establishment were a permanent establishment, andthe specified year were the other qualifying establishment’s taxation year; andthe part of the amount is notan amount determined under the description of A in the formula in the definition external charge in section 217 in calculating an external charge of the qualifying taxpayer for the specified year or a preceding specified year of the qualifying taxpayer,a permitted deduction of the qualifying taxpayer for the specified year or a preceding specified year of the qualifying taxpayer, other than a permitted deduction of the qualifying taxpayer that is included in determining an amount under the description of B in the formula in the definition external charge in section 217 in calculating an external charge of the qualifying taxpayer for the specified year or a preceding specified year of the qualifying taxpayer,an amount that represents a cost to the other qualifying establishment, or a share of a profit of the qualifying taxpayer that is redistributed from the particular qualifying establishment to the other qualifying establishment, that is solely attributable to the issuance, renewal, variance or transfer of ownership by the qualifying taxpayer of a financial instrument that is a derivative, provided that all or substantially all of the amount isan error or profit margin, or employee compensation or benefits, that is reasonably attributable to the issuance, renewal, variance or transfer of ownership, orthe estimate of the default risk premium that is directly associated with the derivative, ora prescribed amount.Separate entitiesFor the purposes of applying paragraph (4)(a) in respect of a particular qualifying establishment of a qualifying taxpayer in a country other than Canada and another qualifying establishment of the qualifying taxpayer in Canada, the following rules apply:the particular qualifying establishment is deemed to be a distinct and separate enterprise from the qualifying taxpayer, engaged in the same or similar activities under the same or similar conditions as the particular qualifying establishment and dealing wholly independently with the other qualifying establishment and with the part (in this subsection referred to as the “remainder of the qualifying taxpayer”) of the qualifying taxpayer, if any, that is neither the particular qualifying establishment nor the other qualifying establishment;the other qualifying establishment is deemed to be a distinct and separate enterprise from the qualifying taxpayer, engaged in the same or similar activities under the same or similar conditions as the other qualifying establishment and dealing wholly independently with the particular qualifying establishment and with the remainder of the qualifying taxpayer; andany transactions or dealings between any of the particular qualifying establishment, the other qualifying establishment and the remainder of the qualifying taxpayer are deemed to be supplies made on such terms as would have been agreed upon between parties dealing at arm’s length.Qualifying rule for creditsIf an amount (in this subsection referred to as a “qualifying expenditure”) of qualifying consideration, or of an external charge, of a qualifying taxpayer in respect of an outlay made, or expense incurred, outside Canada is greater than zero and, during a reporting period of the qualifying taxpayer during which the qualifying taxpayer is a registrant, tax under section 218.01 or subsection 218.1(1.2) in respect of the qualifying expenditure becomes payable by the qualifying taxpayer or is paid by the qualifying taxpayer without having become payable, the following rules apply for the purpose of determining an input tax credit of the qualifying taxpayer:the whole or part of property (in this subsection and subsection (8) referred to as “attributable property”) or of a qualifying service (in this subsection and subsection (8) referred to as an “attributable service”) to which the qualifying expenditure is attributable is deemed to have been acquired by the qualifying taxpayer at the time at which the outlay was made or the expense was incurred;the tax is deemed to be tax in respect of a supply of the attributable property or attributable service; andthe extent to which the qualifying taxpayer acquired the attributable property or attributable service for consumption, use or supply in the course of commercial activities of the qualifying taxpayer is deemed to be the same extent as that to which the whole or part of the outlay or expense, which corresponds to the qualifying expenditure, was made or incurred to consume, use or supply the attributable property or attributable service in the course of commercial activities of the qualifying taxpayer.Qualifying rule for credits — internal chargeIf tax (in this subsection referred to as “internal tax”) under section 218.01 or subsection 218.1(1.2) in respect of an internal charge becomes payable by a qualifying taxpayer, or is paid by the qualifying taxpayer without having become payable, and the internal charge is determined based in whole or in part on the inclusion of an outlay made, or an expense incurred, outside Canada by the qualifying taxpayer, the following rules apply for the purpose of determining an input tax credit of the qualifying taxpayer:the whole or part of property (in this subsection and subsection (8) referred to as “internal property”) or of a qualifying service (in this subsection and subsection (8) referred to as an “internal service”) to which the outlay or expense is attributable is deemed to have been supplied to the qualifying taxpayer at the time the outlay was made or the expense was incurred;the amount of the internal tax that can reasonably be attributed to the outlay or expense is deemed to be tax (in this paragraph referred to as “attributed tax”) in respect of the supply of the internal property or the internal service, and the attributed tax is deemed to have become payable at the time the internal tax becomes payable by the qualifying taxpayer or is paid by the qualifying taxpayer without having become payable; andthe extent to which the qualifying taxpayer acquired the internal property or internal service for consumption, use or supply in the course of commercial activities of the qualifying taxpayer is deemed to be the same extent as that to which the outlay or expense was made or incurred to consume, use or supply the internal property or internal service in the course of commercial activities of the qualifying taxpayer.Input tax creditsFor the purpose of determining an input tax credit of a qualifying taxpayer under section 169in respect of attributable property or an attributable service, the reference in that section to “property or a service” is to be read as a reference to “attributable property or an attributable service, within the meaning of those terms in paragraph 217.1(6)(a)”; andin respect of internal property or an internal service, the reference in that section to “property or a service” is to be read as a reference to “internal property or an internal service, within the meaning of those terms in paragraph 217.1(7)(a)”.
NOTE: Application provisions are not included in the consolidated text;
see relevant amending Acts. 2010, c. 12, s. 62.
ElectionA qualifying taxpayer that is resident in Canada may elect to determine tax under section 218.01 in accordance with paragraph 218.01(a) and tax under subsection 218.1(1.2) in accordance with paragraph 218.1(1.2)(a) for each specified year of the qualifying taxpayer during which the election is in effect.Form and contents of electionAn election made under subsection (1) by a qualifying taxpayer shallbe made in prescribed form containing prescribed information;set out the first specified year of the qualifying taxpayer during which the election is to be in effect;specify if subparagraph 217.1(4)(a)(iii) is to apply in all cases in determining the internal charges for all specified years of the qualifying taxpayer during which the election is to be in effect; andbe filed with the Minister in prescribed manner on or before the day on or before which the qualifying taxpayer’s return under section 219 in respect of tax under section 218.01 or subsection 218.1(1.2) for the first specified year is required to be filed.Effective dateAn election made under subsection (1) by a qualifying taxpayer shall become effective on the first day of the specified year set out in the form.CessationAn election made under subsection (1) by a qualifying taxpayer ceases to have effect on the earlier of