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

Marginal note:Lifetime memberships

345. Notwithstanding subsections 341(1) to (3), where a supply of a membership is made

• (a) to an individual for the lifetime of the individual, or

• (b) to a person other than an individual for the lifetime of an individual designated by the person,

to the extent that the total of all amounts that were paid after August 1990 and before 1991 as or on account of consideration for the supply exceeds 25% of the total consideration for the supply, the consideration shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991.

Marginal note:Transitional credit for small businesses

• 346. (1) Where a person (other than a listed financial institution) is, in the particular fiscal quarter that is the first fiscal quarter of the person beginning in 1991, required to be registered under subsection 240(1) and the total of all consideration that in the particular fiscal quarter became due or was paid without having become due for taxable supplies made by the person in the course of a business does not exceed $500,000,

  • (a) where the reporting period of the person is a fiscal quarter or a fiscal month, the person may deduct the specified amount of the person in determining the person’s net tax for the last reporting period of the person ending in the particular fiscal quarter, or for any subsequent reporting period of the person ending in 1991, the return under Division V for which is filed before 1993, and

  • (b) in any other case, the Minister shall pay a rebate to the person equal to the specified amount of the person,

  and, for the purposes of this subsection, where the total of all amounts each of which is the consideration that became due or that was paid without becoming due for a taxable supply made by a person in the course of a business in any three month period beginning in 1990 throughout which the person carried on business did not exceed $500,000, the total of all consideration that became due or that was paid without becoming due for taxable supplies made by the person in the course of the business in the first fiscal quarter of the person beginning in 1991 shall be deemed not to exceed $500,000.

• Marginal note:Specified amount

  (2) For the purposes of subsection (1), the specified amount of a particular person is an amount equal to the lesser of

  • (a) the total of $300 and the lesser of

    • (i) $700, and

    • (ii) 2% of the total consideration that became due, or that was paid without becoming due, for taxable supplies made by the particular person in any fiscal quarter of the person beginning after 1989 and before April 1991 in excess of $15,000, and

  • (b) the amount by which $1,000 exceeds the total of all amounts each of which is an amount that was by reason of this section deducted by, or rebated to, a person who was associated with the particular person at the end of the first fiscal quarter of the particular person beginning after 1990.

• Marginal note:Application for rebate

  (3) A rebate shall not be paid under paragraph (1)(b) to a person unless the person files an application for the rebate on or before the day on or before which the person is required under Division V to file a return for the first fiscal year of the person beginning after 1990.

• Marginal note:Application of provisions

  (4) Sections 262 to 264 apply in respect of rebates paid or payable under this section as though they were paid or payable under Division VI.