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

Act current to 2017-06-05 and last amended on 2017-03-22. Previous Versions

Supplies and Commercial Activities

Marginal note:Agreement as supply

 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.

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

 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.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12.
Marginal note:Sponsorship of public sector bodies

 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.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 1997, c. 10, s. 3.
Marginal note:Lease etc. of property
  •  (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.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 1993, c. 27, s. 15;
  • 1997, c. 10, ss. 4, 153.
Marginal note:Lease, etc. of property
  •  (1) For the purposes of this Part, where a supply of property is made by way of lease, licence or similar arrangement to a person for consideration that includes a payment that is attributable to a period (in this subsection referred to as the “lease interval”) that is the whole or a part of the period during which possession or use of the property is provided under the arrangement,

    • (a) the supplier is deemed to have made, and the person is deemed to have received, a separate supply of the property for the lease interval;

    • (b) the supply of the property for the lease interval is deemed to be made on the earliest of

      • (i) the first day of the lease interval,

      • (ii) the day on which the payment that is attributable to the lease interval becomes due, and

      • (iii) the day on which the payment that is attributable to the lease interval is paid;

    • (c) the payment that is attributable to the lease interval is deemed to be consideration payable in respect of the supply of the property for the lease interval; and

    • (d) if, in the absence of paragraph (a), the supply of the property under the arrangement would be deemed to be made in or outside Canada, all of the supplies of the property that are, because of that paragraph, deemed to be made under the arrangement are deemed to be made in or outside Canada, as the case may be.

  • Marginal note:Delivery on exercise of option

    (1.1) For the purposes of this Part, if a recipient of a supply by way of lease, licence or similar arrangement of tangible personal property exercises an option to purchase the property that is provided for under the arrangement and the recipient begins to have possession of the property under the agreement of purchase and sale of the property at the same time and place as the recipient ceases to have possession of the property as lessee or licensee under the arrangement, that time and place is, for greater certainty, deemed to be the time and place at which the property is delivered or made available to the recipient in respect of the supply by way of sale of the property to the recipient.

  • Marginal note:Ongoing services

    (2) For the purposes of this Part, where a supply of a service is made to a person for consideration that includes a payment that is attributable to a period (in this subsection referred to as a “billing period”) that is the whole or a part of the period during which the service is or is to be rendered under the agreement for the supply,

    • (a) the supplier is deemed to have made, and the person is deemed to have received, a separate supply of the service for the billing period;

    • (b) the supply of the service for the billing period is deemed to be made on the earliest of

      • (i) the first day of the billing period,

      • (ii) the day on which the payment that is attributable to the billing period becomes due, and

      • (iii) the day on which the payment that is attributable to the billing period is made;

    • (c) the payment that is attributable to the billing period is deemed to be consideration payable in respect of the supply of the service for the billing period; and

    • (d) if, in the absence of paragraph (a), the supply of the service under the agreement would be deemed to be made in or outside Canada, all of the supplies of the service that are, because of that paragraph, deemed to be made under the agreement are, except in the case of a telecommunication service, deemed to be made in or outside Canada, as the case may be.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1997, c. 10, s. 154;
  • 2000, c. 30, s. 20.
Marginal note:Supply of real property partly outside province

 For the purposes of determining in which participating province, if any, a taxable supply of real property is made and determining the tax payable, if any, under subsection 165(2) in respect of the supply for the purposes of this Part, where the supply includes the provision of real property situated in a particular province and real property situated in another province or outside Canada, the provision of the part of the real property that is situated in the particular province and the provision of the part of the real property that is situated in the other province or outside Canada, as the case may be, are each deemed to be a separate taxable supply made for separate consideration equal to the portion of the total consideration for all the property that is reasonably attributable to the part.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1997, c. 10, s. 154.
 
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