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

Marginal note:Payments by unions or associations

 For the purposes of this Part, where

  • (a) an individual, because of membership in a trade union or association referred to in paragraph 189(a), participates in activities of the union or association and, as a consequence, is unable to perform duties, under a contract of employment, for the individual’s employer during a period during which the individual would, were it not for the individual’s participation in those activities, be obligated to provide such services, and

  • (b) the union or association pays an amount to the employer as compensation for expenses incurred by the employer as a consequence of the individual’s participation in those activities or for remuneration or benefits given by the employer to the individual in respect of that period,

the amount shall be deemed not to be consideration for a supply.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1993, c. 27, s. 30.

DIVISION IIGoods and Services Tax

SUBDIVISION AImposition of Tax

Marginal note:Imposition of goods and services tax
  •  (1) Subject to this Part, every recipient of a taxable supply made in Canada shall pay to Her Majesty in right of Canada tax in respect of the supply calculated at the rate of 5% on the value of the consideration for the supply.

  • Marginal note:Tax in participating province

    (2) Subject to this Part, every recipient of a taxable supply made in a participating province shall pay to Her Majesty in right of Canada, in addition to the tax imposed by subsection (1), tax in respect of the supply calculated at the tax rate for that province on the value of the consideration for the supply.

  • Marginal note:Zero-rated supply

    (3) The tax rate in respect of a taxable supply that is a zero-rated supply is 0%.

  • Marginal note:Application in offshore areas

    (4) Subsection (2) does not apply to a supply of property or a service made in the Nova Scotia offshore area or the Newfoundland offshore area unless the supplier makes the supply in the course of an offshore activity or the recipient of the supply acquires the property or service for consumption, use or supply in the course of an offshore activity.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 1993, c. 27, s. 31;
  • 1997, c. 10, ss. 17, 160;
  • 2006, c. 4, s. 3;
  • 2007, c. 18, s. 7, c. 35, s. 184.
Marginal note:Pay telephones
  •  (1) Where the consideration for a supply of a telecommunication service is paid by depositing coins in a coin-operated telephone, the tax payable in respect of the supply is equal to

    • (a) zero where the amount deposited for the supply does not exceed $0.25; and

    • (b) in any other case, the total of the amounts computed in accordance with subsections 165(1) and (2), except that where that total is equal to a multiple of $0.05 plus a fraction of $0.05, the fraction

      • (i) if less than $0.025, may be disregarded for the purposes of this Part, and

      • (ii) if equal to or greater than $0.025, shall be deemed, for the purposes of this Part, to be an amount equal to $0.05.

  • Marginal note:Coin-operated devices

    (2) Where the consideration for a supply of tangible personal property or a service is paid by depositing a single coin in a mechanical coin-operated device that is designed to accept only a single coin of twenty-five cents or less as the total consideration for the supply and the tangible personal property is dispensed from the device or the service is rendered through the operation of the device, the tax payable in respect of the supply is equal to zero.

  • Marginal note:Supply of right to use device

    (3) For the purpose of subsection (2), a supply of a right to use a device described in that subsection is deemed to be a supply of a service rendered through the operation of the device.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1997, c. 10, s. 160;
  • 2007, c. 18, s. 8.
Marginal note:Calculation of tax on several supplies
  •  (1) Where two or more taxable supplies are included in an invoice, receipt or agreement and tax under section 165 is imposed in respect of each of those supplies at the same rate or rates, the tax payable in respect of those supplies, calculated on the consideration for those supplies that is included in the invoice, receipt or agreement, may be calculated on the total of that consideration.

  • Marginal note:Rounding of tax

    (2) Where tax that is at any time payable under this Division in respect of one or more supplies included in an invoice, receipt or agreement is an amount that includes a fraction of a cent, the fraction

    • (a) if less than half of a cent, may be disregarded for the purposes of this Part; and

    • (b) if equal to or greater than half of a cent, shall be deemed, for the purposes of this Part, to be an amount equal to one cent.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1997, c. 10, s. 160.
Marginal note:Supply by small supplier not a registrant

 If a person makes a taxable supply and the consideration or a part of it for the supply becomes due, or is paid before it becomes due, at a time when the person is a small supplier who is not a registrant, that consideration or part, as the case may be, shall not be included in calculating the tax payable in respect of the supply except if the supply is

  • (a) a supply by way of sale of real property;

  • (b) a supply by way of sale of personal property by a municipality that is capital property of the municipality; or

  • (c) a supply by way of sale of designated municipal property of a person designated to be a municipality for the purposes of section 259 that is capital property of the person.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 2004, c. 22, s. 31.
Marginal note:Supply of assets of business
  •  (1) Where a supplier makes a supply of a business or part of a business that was established or carried on by the supplier or that was established or carried on by another person and acquired by the supplier, and, under the agreement for the supply, the recipient is acquiring ownership, possession or use of all or substantially all of the property that can reasonably be regarded as being necessary for the recipient to be capable of carrying on the business or part as a business,

    • (a) for the purposes of this Part, the supplier shall be deemed to have made a separate supply of each property and service that is supplied under the agreement for consideration equal to that part of the consideration for the supply of the business or part that can reasonably be attributed to that property or service; and

    • (b) except where the supplier is a registrant and the recipient is not a registrant, the supplier and the recipient may make a joint election in prescribed form containing prescribed information to have subsection (1.1) apply to those supplies.

  • Marginal note:Effect of election

    (1.1) Where a supplier and a recipient make a joint election under subsection (1) in respect of a supply of a business or part of a business and the recipient, if a registrant, files the election with the Minister not later than the day on or before which the return under Division V is required to be filed for the recipient’s first reporting period in which tax would, but for this subsection, have become payable in respect of the supply of any property or service made under the agreement for the supply of the business or part, or on such later day as the Minister may determine on application of the recipient,

    • (a) no tax is payable in respect of a supply of any property or service made under the agreement other than

      • (i) a taxable supply of a service that is to be rendered by the supplier,

      • (ii) a taxable supply of property by way of lease, licence or similar arrangement, and

      • (iii) where the recipient is not a registrant, a taxable supply by way of sale of real property; and

    • (b) for the purposes of this Part,

      • (i) where, but for this subsection, tax would have been payable by the recipient in respect of a supply made under the agreement of property that was capital property of the supplier and that is being acquired by the recipient for use as capital property of the recipient, the recipient shall be deemed to have so acquired the property for use exclusively in the course of commercial activities of the recipient, and

      • (ii) where, notwithstanding this subsection, tax would not have been payable by the recipient in respect of a supply made under the agreement of property that was capital property of the supplier and that is being acquired by the recipient for use as capital property of the recipient, the recipient shall be deemed to have so acquired the property for use exclusively in activities of the recipient that are not commercial activities.

  • Marginal note:Supply of business assets of deceased

    (2) Where

    • (a) immediately before death, an individual held property for consumption, use or supply in the course of a business carried on immediately before the individual’s death,

    • (b) the estate of the deceased individual makes a supply, in accordance with the individual’s will or the laws relating to the succession of property on death, of the property to another individual who is a beneficiary of the estate and a registrant,

    • (c) the property is received for consumption, use or supply in the course of commercial activities of the other individual, and

    • (d) the estate and the other individual jointly elect under this subsection,

    no tax is payable in respect of the supply and the other individual shall, for the purposes of this Part, be deemed to have acquired the property for use exclusively in commercial activities of the individual.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 1993, c. 27, s. 32;
  • 1994, c. 9, s. 8;
  • 1997, c. 10, s. 18.
 
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