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

Marginal note:Incorrect statement

194. For 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,

• (a) the tax payable in respect of the supply is deemed to be equal to the amount determined by the formula

  (A/B) × C

  where

  A 

  is

  • (i) if 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, and

  • (ii) in any other case, the rate set out in subsection 165(1),

  B 

  is the total of 100% and the percentage determined for A, and

  C 

  is the consideration for the supply; and

• (b) the 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.

Marginal note:Prescribed property

195. For 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.

Marginal note:Residential complex not capital property

• 195.1 (1) For 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 unless

  • (a) at or before the particular time, the construction or substantial renovation of the complex was substantially completed; and

  • (b) at 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.

• Marginal note:Addition not capital property

  (2) For 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 unless

  • (a) at or before the particular time, the construction of the addition was substantially completed; and

  • (b) at 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.