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

Act current to 2017-09-27 and last amended on 2017-07-01. Previous Versions

Property and Services

Marginal note:Transfer of personal property before 1991
  •  (1) Where a taxable supply by way of sale of tangible personal property is made to a person, to the extent that

    • (a) the property is delivered to the person before 1991, or

    • (b) ownership of the property is transferred to the person before 1991,

    no tax is payable in respect of any consideration for the supply that is paid or becomes due before May 1991.

  • Marginal note:Conditional sales and instalment sales

    (1.1) No tax is payable in respect of a supply by way of sale (other than a sale resulting from the exercise, after 1990, of an option to purchase contained in a lease, licence or similar arrangement) of tangible personal property to the extent that the property was delivered, or ownership thereof was transferred, to the recipient before 1991 in accordance with the terms of an agreement in writing entered into before 1991 for the supply.

  • Marginal note:Continuous supplies

    (2) To the extent that consideration for a supply of electricity, natural gas, steam or any property or service that

    • (a) in the case of property, is delivered or made available, or

    • (b) in the case of a service, is performed or made available

    on a continuous basis by means of a wire, pipeline or other conduit is paid or becomes due before May 1991, no tax is payable in respect of the property or service delivered, performed or made available, as the case may be, to the recipient before 1991.

  • Marginal note:Idem

    (3) To the extent that consideration for a taxable supply in Canada of electricity, natural gas, steam or any property or service that

    • (a) in the case of property, is delivered or made available, or

    • (b) in the case of a service, is performed or made available

    on a continuous basis by means of a wire, pipeline or other conduit becomes due after April 1991, or is paid after April 1991 without becoming due, and at a time when the supplier is a registrant, tax is payable in respect of that consideration regardless of when the property or service is delivered, performed or made available, as the case may be.

  • Marginal note:Payment before 1991 for subscription

    (4) No tax is payable in respect of any consideration for a taxable supply of a subscription for newspapers, magazines or other publications published periodically that is paid before 1991.

  • Marginal note:Supplies after 1990

    (5) Except where subsection (4) applies, where a taxable supply of tangible personal property by way of sale is made, any consideration (other than an instalment payable under a contract in respect of which subsection 118(3) or (4) applies) that becomes due or is paid, without becoming due, after August 1990 and before 1991 for property that is not delivered to the recipient and ownership of which is not transferred to the recipient before 1991 shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991.

  • Marginal note:Idem

    (6) Subject to subsections (2) and (4) and 341(1), 342(1) and 343(1), where a taxable supply of tangible personal property by way of sale or of a service is made in Canada to a person other than a consumer by a supplier in the ordinary course of a business, to the extent that any consideration (other than an instalment payable under a contract in respect of which subsection 118(3) or (4) applies) became due or was paid without having become due after August 1989 and before September 1990 for property that was not delivered to the person and the ownership of which was not transferred to the person before 1991 or for any of the service that was not performed before 1991, tax is payable in respect of that consideration and the person shall, on or before April 1, 1991, file with the Minister in prescribed manner a return in prescribed form containing prescribed information and remit that tax to the Receiver General.

  • Marginal note:Prepaid supplies to consumers

    (7) Where a person makes a taxable supply by way of sale to a consumer of property that is a specified property the consideration for which exceeds $5,000 or that is a motor vehicle, ownership and possession of the property are transferred to the consumer under the agreement for the supply after 1990, and all or part of the consideration for the supply is paid or becomes due before September 1, 1990, the following rules apply:

    • (a) the amount of any rebate under section 120 to which the person is entitled, or of any input tax credit of the person, in respect of the property shall be deemed to be the proportion of the rebate or input tax credit otherwise determined that the total of all amounts that became due, or were paid without becoming due, after August 1990 as consideration for the supply of the property to the consumer is of the total consideration for that supply; and

    • (b) where the person is a licensed manufacturer or a licensed wholesaler under Part VI who would, if the property were delivered to the consumer before 1991, be required to pay tax under that Part in respect of the property, the person shall be deemed

      • (i) to have made and received, on January 1, 1991, a particular taxable supply of the property for consideration equal to the consideration for the supply of the property to the consumer, and

      • (ii) to have paid as a recipient and to have collected as a supplier, on January 1, 1991, tax in respect of the particular supply.

  • Meaning of specified property

    (8) For the purposes of subsection (7), specified property means property in respect of which a person would be required to pay tax under paragraph 50(1)(a) if the person were a licensed manufacturer of the property under Part VI and the person had sold and delivered the property to a consumer in Canada in 1990.

  • (9) [Repealed, 1997, c. 10, s. 240]

  • Marginal note:Supply completed

    (10) Where all or part of the consideration for a taxable supply by way of sale of tangible personal property becomes due or is paid without becoming due after April 1991 and ownership or possession of the property was transferred before 1991 to the recipient under the agreement for the supply,

    • (a) where paragraph 168(3)(a) applies, ownership and possession of the property, and

    • (b) where paragraph 168(3)(b) applies, ownership of the property,

    shall, for the purposes of section 168, be deemed to have been transferred to the recipient in April 1991.

  • Marginal note:Application

    (11) This section does not apply to a supply to which section 338 applies.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 1993, c. 27, s. 137;
  • 1997, c. 10, s. 240.
Marginal note:Budget arrangements
  •  (1) Where a supply of property or a service (other than a subscription for newspapers, magazines or other publications published periodically) is made and the consideration for the supply of the property or service delivered, performed or made available during any period beginning before 1991 and ending after 1990 is paid by the recipient under a budget payment arrangement with a reconciliation of the payments to take place at or after the end of the period and before 1992, at the time the supplier issues an invoice for the reconciliation of the payments, the supplier shall determine the positive or negative amount determined by the formula

    A - B

    where

    A
    is the tax that would be payable by the recipient for the part of the property or service supplied during the period that was delivered, performed or made available after 1990, if the consideration therefor had become due and been paid after 1990; and
    B
    is the total tax payable by the recipient in respect of the supply of the property or service delivered, performed or made available during the period.
  • Marginal note:Collection of tax

    (2) Where the amount determined under subsection (1) in respect of a supply of property or a service is a positive amount and the supplier is a registrant, the supplier shall collect, and be deemed to have collected on the day the invoice for the reconciliation of payments is issued, that amount from the recipient as tax.

  • Marginal note:Refund of excess

    (3) Where the amount determined under subsection (1) in respect of a supply of property or a service is a negative amount and the supplier is a registrant, the supplier shall refund or credit that amount to the recipient and issue a credit note for that amount in accordance with section 232.

  • Marginal note:Continuous supply

    (4) Where a supply of property or a service, during any period for which the supplier issues an invoice for the supply, is made on a continuous basis by means of a wire, pipeline or other conduit and, because of the method of recording the delivery of the property or the provision of the service, the time at which the property or a part thereof is delivered, or the time at which the service or a part thereof is provided, cannot reasonably be determined, an equal part of the whole of the property delivered, or of the whole of the service provided, in the period shall, for the purposes of this section, be deemed to have been delivered or provided, as the case may be, on each day of the period.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12.
Marginal note:Progress payments

 Where a taxable supply is made under a contract to construct, renovate, alter or repair real property or a ship or other marine vessel,

  • (a) any consideration for the supply that becomes due or is paid without becoming due after August 1989 and before 1991 as a progress payment required under the contract shall be deemed, for the purposes of this Part, to have become due on January 1, 1991 and not to have been paid before 1991;

  • (b) no tax is payable in respect of any part of the consideration for the supply that may reasonably be attributed to property delivered and services performed under the contract before 1991; and

  • (c) where paragraph 168(3)(c) applies in respect of the supply, tax is payable in respect thereof and the construction, renovation, alteration or repair is substantially completed before December 1990, the construction, renovation, alteration or repair shall be deemed, for the purposes of this Part, to have been substantially completed on December 1, 1990 and not before that day.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12.
 
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