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

Marginal note:Small suppliers

• 171.1 (1) Where 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,

  • (a) 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; and

  • (b) for 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.

• Marginal note:Becoming a registrant for other activities

  (2) Where 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:

  • (a) 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; and

  • (b) for 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,

    • (i) 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, or

    • (ii) that 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.

• Marginal note:Ceasing to be a registrant for other activities

  (3) Where 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:

  • (a) for the purposes of this Part, the person shall be deemed

    • (i) to 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, and

    • (ii) to 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);

  • (b) 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,

    • (i) 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, or

    • (ii) that 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; and

  • (c) where, 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,

    • (i) that is reasonably attributable to services that are to be rendered to the person after that time, or

    • (ii) that 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.