Marginal note:Meaning of “returnable container”
226 (1) In this section, returnable container means a beverage container (other than a usual container for a beverage the supply of which is included in Part III of Schedule VI) of a class that
(a) is ordinarily acquired by consumers;
(b) when acquired by consumers, is ordinarily filled and sealed; and
(c) is ordinarily supplied empty by consumers for consideration.
Marginal note:Separate supply of beverage and container
(2) For the purposes of this section, where a person supplies a beverage in a returnable container,
(a) the provision of the container shall be deemed to be a supply separate from, and not incidental to, the provision of the beverage;
(b) section 137 does not apply to deem the container to form part of the beverage; and
(c) the consideration for the supply of the container shall be deemed to be equal to that part of the total consideration for the beverage and the container that is reasonably attributable to the container.
Marginal note:Tax collectible on returnable containers
(3) Tax that is collected or that becomes collectible by a registrant in respect of a supply of a returnable container shall not be included in determining the net tax of the registrant.
Marginal note:Input tax credit for returnable containers
(4) Tax that is paid or that becomes payable by a registrant in respect of a supply or the bringing into a participating province of a returnable container shall not be included in determining an input tax credit of the registrant unless the registrant is acquiring the container or bringing it into the province, as the case may be, for the purpose of making a zero-rated supply of the container or a supply of the container outside Canada.
Marginal note:Application
(5) Subsections (3) and (4) do not apply to a registrant in respect of a supply of a returnable container of a particular class made by or to the registrant where, at the time tax in respect of the supply becomes payable, the usual practice of the registrant is
(a) to charge consideration for supplies of filled and sealed containers of that class that exceeds the consideration the registrant pays to registrants for supplies of filled and sealed containers of that class;
(b) to charge consideration for supplies of empty containers of that class made to other registrants that exceeds the consideration the registrant pays or would pay to other registrants for supplies of empty containers of that class;
(c) to pay consideration for supplies of empty containers of that class received from persons who are not registrants that is less than the total of the consideration that the registrant charges for supplies of empty containers of that class and tax calculated on that consideration;
(d) to import filled and sealed containers of that class;
(e) to engage other persons to fill and seal containers of that class for the registrant; or
(f) to manufacture, produce or fill and seal returnable containers of any class.
Marginal note:Change in practice
(6) Where subsection (3) at any time ceases to apply to a registrant in respect of a returnable container owned by the registrant at that time and the registrant was not entitled, because of subsection (4), to claim an input tax credit in respect of the last acquisition of the container by the registrant or in respect of bringing the container into a participating province after it was last acquired, for the purposes of this Part, the registrant is deemed to have received at that time a supply of the container and to have paid at that time tax in respect of the supply equal to the basic tax content of the container at that time.
Marginal note:Change in practice
(7) Where subsection (3) at any time begins to apply to a registrant in respect of a returnable container owned by the registrant at that time and the registrant was entitled to claim an input tax credit in respect of the last acquisition of the container by the registrant or in respect of bringing the container into a participating province after it was last acquired, for the purposes of this Part, the registrant is deemed
(a) to have made immediately before that time a supply of the container and to have collected at that time tax in respect of the supply equal to the basic tax content of the container at that time; and
(b) to have received at that time a supply of the container and to have paid at that time tax in respect of the supply equal to the tax referred to in paragraph (a).
Marginal note:Supplies under s. 156 or 167
(8) For the purposes of this Part, where a supplier at any time makes a supply of a returnable container to a registrant in circumstances in which section 156 or 167 applies and, if those sections had not applied, subsection (3) would not have applied to the supplier in respect of the supply and subsection (4) would have applied to the registrant in respect of the container,
(a) the registrant shall be deemed to have made a supply of the container at that time and to have collected at that time tax in respect of the supply calculated on the consideration that the registrant would charge if the registrant made the supply to a person with whom the registrant was dealing at arm’s length, and subsection (3) does not apply to the registrant in respect of the supply; and
(b) the registrant shall be deemed to have received a supply of the container immediately after that time and to have paid immediately after that time tax in respect of the supply equal to the amount determined under paragraph (a).
Marginal note:Idem
(9) For the purposes of this Part, where a supplier at any time makes a supply of a returnable container to a registrant in circumstances in which section 156 or 167 applies and, if those sections had not applied, subsection (3) would have applied to the supplier in respect of the supply and subsection (4) would not have applied to the registrant in respect of the container, the registrant shall be deemed to have paid at that time tax in respect of the supply calculated on the consideration that the registrant would charge if the registrant made the supply to a person with whom the registrant was dealing at arm’s length.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 1990, c. 45, s. 12
- 1993, c. 27, s. 89
- 1997, c. 10, s. 209
- Date modified: