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

Marginal note:Agreement as supply

133. For the purposes of this Part, where an agreement is entered into to provide property or a service,

• (a) 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; and

• (b) the 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.

Marginal note:Transfer of security interest

134. For 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.

Marginal note:Sponsorship of public sector bodies

135. For the purposes of this Part, where a public sector body makes

• (a) a supply of a service, or

• (b) a 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.

Marginal note:Lease etc. of property

• 136. (1) For 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.

• Marginal note:Combined supply of real property

  (2) For the purposes of this Part, where a supply of real property includes the provision of

  • (a) real property that is

    • (i) a residential complex,

    • (ii) land, a building or part of a building that forms or is reasonably expected to form part of a residential complex, or

    • (iii) a residential trailer park, and

  • (b) other 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.

• (2.1) [Repealed, 1997, c. 10, s. 153]

• Marginal note:Idem

  (3) For 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.

• Marginal note:Idem

  (4) For 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.