Excise Tax Act (R.S.C., 1985, c. E-15)

Marginal note:Conversion to residential use

• 190. (1) Where at any time a person begins to hold or use real property as a residential complex and

  • (a) the property was

    • (i) last acquired by the person to hold or use as a residential complex, or

    • (ii) immediately before that time, held for supply, or used or held for use as capital property, in a business or commercial activity of the person,

  • (b) immediately before that time, the property was not a residential complex, and

  • (c) the 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,

  • (d) the person shall be deemed to have substantially renovated the complex,

  • (e) 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, and

  • (f) except where the person is

    • (i) a 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, or

    • (ii) a 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.

• Marginal note:Idem

  (2) Where 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 property

  • (a) was held for supply, or was used or held for use as capital property, in a business or commercial activity of the individual, and

  • (b) was not a residential complex,

  the individual shall, for the purposes of this Part, be deemed

  • (c) to have made and received a taxable supply by way of sale of the property immediately before that time, and

  • (d) 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 property at that time.

• Marginal note:Lease of land for residential use

  (3) Where

  • (a) a 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,

  • (b) the person at any time gives possession of the land to the recipient of the supply under the arrangement,

  • (c) 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),

  • (d) 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, and

  • (e) the recipient of the supply is not acquiring possession of the land for the purpose of

    • (i) constructing a residential complex thereon in the course of a commercial activity, or

    • (ii) making 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 deemed

  • (f) to 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, and

  • (g) to 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.

• Marginal note:First use of residential trailer park

  (4) Where

  • (a) a 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,

  • (b) the person at any time gives possession or occupancy of the site to the recipient of the supply under the arrangement,

  • (c) none of the sites in the park were occupied immediately before that time under an arrangement for a supply referred to in paragraph (a), and

  • (d) either

    • (i) the 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 deemed

      • (A) under this subsection to have made before that time, or

      • (B) under subsection 200(2), 206(4) or 207(1) to have made at or immediately before that time

      a supply of land included in the park as a consequence of using the land for purposes of the park, or

    • (ii) the 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 deemed

  • (e) to 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, and

  • (f) to 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.

• Marginal note:First use of additional area

  (5) Where

  • (a) a person increases the area of land included in a residential trailer park of the person,

  • (b) 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,

  • (c) the person at any time gives possession or occupancy of the site to the recipient of the supply under the arrangement,

  • (d) 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), and

  • (e) either

    • (i) the 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 deemed

      • (A) under this section to have made before that time, or

      • (B) under subsection 200(2), 206(4) or 207(1) to have made at or before that time

      a supply of the additional area as a consequence of using the additional area for purposes of the park, or

    • (ii) the 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 deemed

  • (f) to 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, and

  • (g) to 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.