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

DIVISION IXTransitional Provisions

Real Property

Marginal note:Transfer of real property before 1991

• 336 (1) Where

  • (a) a taxable supply by way of sale of real property is made to a person, and

  • (b) ownership or possession of the property is transferred under the agreement for that supply to the person before 1991,

  no tax is payable in respect of the supply.

• Marginal note:Transfer of single unit residential complex after 1990

  (2) Where

  • (a) a taxable supply by way of sale of a single unit residential complex in Canada is made to an individual under an agreement in writing entered into before October 14, 1989 between the supplier and the individual,

  • (b) ownership and possession of the complex are not transferred to the individual under the agreement before 1991, and

  • (c) possession of the complex is transferred to the individual under the agreement at any time after 1990,

  the following rules apply:

  • (d) no tax is payable by the individual in respect of the supply,

  • (e) subsection 191(1) does not apply in respect of the complex before possession thereof is transferred to the individual,

  • (f) where the individual is a builder of the complex,

    • (i) if the individual is a builder of the complex only because of paragraph (d) of the definition builder in subsection 123(1),

      • (A) the individual shall be deemed not to be a builder of the complex, and

      • (B) for the purposes of determining whether any other person who, after that time, makes a supply of the complex or an interest therein is a builder of the complex, the complex shall be deemed to have been occupied at that time by an individual as a place of residence, and

    • (ii) in any other case, for the purposes of determining an input tax credit of the individual, the individual shall be deemed to have paid, at that time, tax in respect of the supply equal to 4% of the consideration for the supply,

  • (g) the supplier shall be deemed to have collected, at that time, tax in respect of the supply equal to

    • (i) 4% of the consideration for the supply where the complex was, on January 1, 1991, not more than 20% completed,

    • (ii) 2.5% of the consideration for the supply where the complex was, on January 1, 1991, more than 20% completed and not more than 60% completed,

    • (iii) 1% of the consideration for the supply where the complex was, on January 1, 1991, more than 60% completed and not more than 90% completed, and

    • (iv) 0% of the consideration for the supply where the complex was, on January 1, 1991, more than 90% completed, and

  • (h) for the purposes of section 121, the complex shall be deemed not to be a specified single unit residential complex.

• Marginal note:Transfer of residential condominium unit after 1990

  (3) Where

  • (a) a taxable supply by way of sale of a residential condominium unit in Canada is made to a person under an agreement in writing entered into before October 14, 1989 between the supplier and the person,

  • (b) ownership and possession of the unit are not transferred to the person under the agreement before 1991, and

  • (c) possession of the unit is transferred to the person under the agreement at any time after 1990,

  the following rules apply:

  • (d) no tax is payable by the person in respect of the supply,

  • (e) subsection 191(1) does not apply in respect of the unit before possession thereof is transferred to the person,

  • (f) where the person is a builder of the unit,

    • (i) if the person is a builder of the unit only because of paragraph (d) of the definition builder in subsection 123(1),

      • (A) the person shall be deemed not to be a builder of the unit, and

      • (B) for the purposes of determining whether any other person who, after that time, makes a supply of the unit or an interest therein is a builder of the unit, the condominium complex in which the unit is located shall be deemed to have been registered at that time as a condominium and the unit shall be deemed to have been occupied at that time by an individual as a place of residence, and

    • (ii) in any other case, for the purposes of determining an input tax credit of the person, the person shall be deemed to have paid, at that time, tax in respect of the supply equal to 4% of the consideration for the supply, and

  • (g) the supplier shall be deemed to have collected, at that time, tax in respect of the supply equal to 4% of the consideration for the supply.

• Marginal note:Transfer of condominium complex after 1990

  (4) Where

  • (a) a taxable supply by way of sale of a condominium complex in Canada is made to a person under an agreement in writing entered into before October 14, 1989 between the supplier and the person,

  • (b) ownership and possession of the complex are not transferred to the person under the agreement before 1991, and

  • (c) at any time after 1990, ownership of the complex is transferred to the person under the agreement or the complex is registered as a condominium,

  the following rules apply:

  • (d) no tax is payable by the person in respect of the supply,

  • (e) subsection 191(1) does not apply in respect of any residential condominium unit located in the complex before ownership of the complex is transferred to the person,

  • (f) where the person is a builder of the complex,

    • (i) if the person is a builder of the complex only because of paragraph (d) of the definition builder in subsection 123(1),

      • (A) the person shall be deemed not to be a builder of the complex or of any residential condominium unit located in the complex, and

      • (B) for the purposes of determining whether any other person who, after that time, makes a supply of the complex, a residential condominium unit located in the complex or an interest in the complex or unit is a builder of the complex or of any unit located in the complex, the complex shall be deemed to have been registered at that time as a condominium and each of the units shall be deemed to have been occupied at that time by an individual as a place of residence, and

    • (ii) in any other case, for the purposes of determining an input tax credit of the person, the person shall be deemed to have paid, at that time, tax in respect of the supply equal to 4% of the consideration for the supply, and

  • (g) the supplier shall be deemed to have collected, on the earlier of

    • (i) the day ownership of the complex is transferred to the person, and

    • (ii) the day that is sixty days after the day the complex is registered as a condominium,

    tax in respect of the supply equal to 4% of the consideration for the supply.

• Marginal note:Self-supply of residential condominium unit by limited partnership

  (5) Where

  • (a) an offering memorandum, in respect of an offer to sell interests in a limited partnership, is issued to prospective subscribers before October 14, 1989,

  • (b) at the time the offering memorandum is issued, it is proposed that the limited partnership will exclusively engage in the activities of acquiring land or a beneficial interest therein, constructing a condominium complex on the land, owning residential condominium units located in the complex and supplying those units by way of lease, licence or similar arrangement for the purpose of their occupancy by individuals as places of residence,

  • (c) the offering memorandum does not provide for an increase in the subscription prices of the interests in the partnership because of a change in the application of taxes and those subscription prices are not increased after October 13, 1989 and before the offer to sell the interests expires,

  • (d) a particular interest in the limited partnership is transferred to a subscriber before 1991 in accordance with the offering memorandum,

  • (e) the limited partnership, whether or not in concert with another person,

    • (i) acquires ownership of land or a beneficial interest therein before 1991, and

    • (ii) engages a person to construct a condominium complex on that land

    under agreements in writing entered into before October 14, 1989 or under agreements in writing entered into on or after that date that substantially conform with terms and conditions relating to those agreements as set out in the offering memorandum,

  • (f) the particular interest relates to a particular residential condominium unit that is owned by the limited partnership and is located in the condominium complex, and

  • (g) possession of the particular residential condominium unit is given after 1990 to a person under a lease, licence or similar arrangement for the purpose of its occupancy by an individual as a place of residence,

  the amount of tax that is payable and collectible by the limited partnership, and the amount of tax deemed to have been paid and collected by the limited partnership under paragraph 191(1)(e), in respect of the supply of the particular residential condominium unit that is deemed to have been made under paragraph 191(1)(d) are equal to 4% of 80% of the subscription price for the particular interest.

• Marginal note:Definitions

  (6) The definitions in this subsection apply in subsection (5).

  offering memorandum

  offering memorandum, in respect of an offer to sell interests in a limited partnership to the prospective subscribers, means one or more documents in writing that set out

  • (a) all facts concerning the limited partnership and its activities or proposed activities that significantly affect, or could reasonably be expected to have a significant effect on, the value of those interests;

  • (b) the price at which those interests are being offered; and

  • (c) the date on which ownership of the interests in the partnership are to be transferred to persons who subscribe to the offering. (notice d’offre)

  subscription price

  subscription price, for an interest in a limited partnership, means the consideration payable for the interest as set out in the offering memorandum. (prix de souscription)

Property and Services

Marginal note:Transfer of personal property before 1991

• 337 (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.