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

Statement as to Use of Real Property

Marginal note:Incorrect statement

 For the purposes of this Part, where a supplier makes a taxable supply by way of sale of real property and incorrectly states or certifies in writing to the recipient of the supply that the supply is an exempt supply described in any of sections 2 to 5.3, 8 and 9 of Part I of Schedule V, except where the recipient knows or ought to know that the supply is not an exempt supply,

  • (a) the tax payable in respect of the supply is deemed to be equal to the amount determined by the formula

    (A/B) × C

    where

    A
    is
    • (i) if tax under subsection 165(2) was payable in respect of the supply, the total of the rate set out in subsection 165(1) and the tax rate for the participating province in which the supply was made, and

    • (ii) in any other case, the rate set out in subsection 165(1),

    B
    is the total of 100% and the percentage determined for A, and
    C
    is the consideration for the supply; and
  • (b) the supplier shall be deemed to have collected, and the recipient shall be deemed to have paid, that tax on the earlier of the day ownership of the property was transferred to the recipient and the day possession of the property was transferred to the recipient under the agreement for the supply.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 1993, c. 27, s. 58;
  • 1997, c. 10, s. 184;
  • 2006, c. 4, s. 16.

SUBDIVISION DCapital Property

Marginal note:Prescribed property

 For the purposes of this Part, where a person acquires or imports prescribed property or brings it into a participating province for use as capital property of the person, the property is deemed to be personal property and not real property.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 1993, c. 27, s. 59;
  • 1997, c. 10, s. 185.
Marginal note:Residential complex not capital property
  •  (1) For the purposes of this Part, other than sections 148 and 249, a residential complex shall be deemed not to be, at a particular time, capital property of a builder of the complex unless

    • (a) at or before the particular time, the construction or substantial renovation of the complex was substantially completed; and

    • (b) at or after the time the construction or substantial renovation of the complex was substantially completed and at or before the particular time, the builder received an exempt supply of the complex or was deemed under section 191 to have received a taxable supply of the complex.

  • Marginal note:Addition not capital property

    (2) For the purposes of this Part, other than sections 148 and 249, an addition to a multiple unit residential complex shall be deemed not to be, at a particular time, capital property of a builder of the addition unless

    • (a) at or before the particular time, the construction of the addition was substantially completed; and

    • (b) at or after the time the construction of the addition was substantially completed and at or before the particular time, the builder received an exempt supply of the complex or was deemed under subsection 191(4) to have received a taxable supply of the addition.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1993, c. 27, s. 59.
Marginal note:Last acquisition or importation
  •  (1) For the purposes of this Part (other than Division III and Schedule VII), an importation of property shall not be considered in determining the last acquisition or importation of the property

    • (a) where tax under Division III was not paid on the property in respect of that importation because the property was included in section 1 or 9 of Schedule VII or the property was included in section 8 of that Schedule and was classified under heading 98.13 or 98.14 of Schedule I to the Customs Tariff, or would have been so classified but for Note 11(a) to Chapter 98 of that Schedule;

    • (b) where tax under Division III on the property in respect of that importation was calculated on a value determined under the Value of Imported Goods (GST/HST) Regulations, other than section 8 or 12 or a prescribed section of those Regulations; or

    • (c) in prescribed circumstances.

  • Marginal note:Importation of improvement

    (2) For the purposes of this Part (other than Division III and Schedule VII), where a person imports capital property of the person that was improved outside Canada and tax under Division III is payable on a value, determined under the Value of Imported Goods (GST/HST) Regulations, that does not exceed the value of the improvement, the importation shall be deemed to be an importation of the improvement.

  • Marginal note:Application before 1991

    (3) For the purposes of determining the last acquisition or importation of property, this Part shall be deemed to have been in force at all times before 1991.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1993, c. 27, s. 60;
  • 2007, c. 18, s. 63.
Marginal note:Intended and actual use
  •  (1) For the purposes of this Part, where a person at any time acquires or imports property for use to a particular extent in a particular way, the person shall be deemed to use the property immediately after that time to the particular extent in the particular way.

  • Marginal note:Intended and actual use

    (2) For the purposes of this Part, if a person at any time brings capital property of the person into a particular participating province from another province and the person was using the property to a particular extent in a particular way immediately after the property or a portion of the property was last acquired, imported or brought into a participating province by the person, the person is deemed to bring it into the particular participating province for use to the particular extent in the particular way.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 1993, c. 27, s. 61;
  • 1997, c. 10, s. 186;
  • 2009, c. 32, s. 12.
Marginal note:Appropriation to use as capital property

 For the purposes of this Part, where a registrant, at a particular time, appropriates property of the registrant for use as capital property of the registrant or in improving capital property of the registrant and, immediately before the particular time, the property was not capital property of the registrant or an improvement to capital property of the registrant,

  • (a) the registrant shall be deemed

    • (i) to have made, immediately before the particular time, a supply of the property by way of sale, and

    • (ii) where the property was last acquired or imported by the registrant before the particular time for consumption, use or supply, or was consumed or used before the particular time, in the course of commercial activities of the registrant, to have collected, at the particular time, tax in respect of the supply calculated on the fair market value of the property at the particular time; and

  • (b) the registrant shall be deemed to have received, at the particular time, a supply of the property by way of sale and to have paid, at the particular time, tax in respect of the supply equal to

    • (i) where the property was last acquired or imported by the registrant before the particular time for consumption, use or supply, or was consumed or used before the particular time, in the course of commercial activities of the registrant and the supply is not an exempt supply, tax calculated on the fair market value of the property at the particular time, and

    • (ii) in any other case, the basic tax content of the property at the particular time.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1993, c. 27, s. 61;
  • 1997, c. 10, s. 187.
Marginal note:Insignificant changes in use

 For the purposes of subsections 206(2), (3) and (5), 207(2) and 208(2) and (3), where in any period

  • (a) beginning on the later of

    • (i) the day a registrant last acquired or imported property for use as capital property of the registrant, and

    • (ii) the day subsection 206(3) or (5), 207(2) or 208(3) last applied to the property, and

  • (b) ending at any time after that day,

the extent to which the registrant changed the use of the property in commercial activities of the registrant is less than 10% of the total use of the property, the registrant shall be deemed to have used the property throughout that period to the same extent and in the same way as the registrant used the property at the beginning of that period, unless the registrant is an individual who began in that period to use the property primarily for the personal use and enjoyment of the individual or a related individual.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 1993, c. 27, s. 62;
  • 2000, c. 30, s. 41(F).
 
Date modified: