Marginal note:Financial institution making election for exempt supplies
205 (1) Where an election made by a registrant under subsection 150(1) becomes effective at a particular time, the registrant was a financial institution immediately before the particular time and, as a result of the election becoming effective, the registrant reduces at the particular time the extent to which personal property of the registrant is used as capital property in commercial activities of the registrant, subsections 193(1) and 206(4) and (5) apply, with such modifications as the circumstances require, to the reduction in use, as if the property were real property.
Marginal note:Registrant becoming financial institution
(2) Where a registrant at any time becomes a financial institution and, immediately before that time, the registrant was using personal property of the registrant as capital property of the registrant, the following rules apply:
(a) where, immediately before that time, the registrant was not using the property primarily in commercial activities of the registrant and, immediately after that time, the property is for use in commercial activities of the registrant, the registrant shall be deemed, for the purposes of this Part, to have changed at that time the extent to which the property is used in commercial activities of the registrant, and subsection 206(2) applies, with such modifications as the circumstances require, to the change in use as if the property were real property that was not used immediately before that time in commercial activities of the registrant; and
(b) where, immediately before that time, the registrant was using the property primarily in commercial activities of the registrant and, immediately after that time, the property is not for use exclusively in commercial activities of the registrant, the registrant shall be deemed, for the purposes of this Part, to have changed at that time the extent to which the property is used in commercial activities of the registrant, and subsections 193(1) and 206(4) and (5) apply, with such modifications as the circumstances require, to the change in use as if the property were real property used immediately before that time exclusively in commercial activities of the registrant.
Marginal note:Registrant ceasing to be financial institution
(3) Where a registrant at any time ceases to be a financial institution and, immediately before that time, the registrant was using personal property of the registrant as capital property of the registrant, the following rules apply:
(a) where, immediately before that time, the registrant was using the property as capital property but not exclusively in commercial activities of the registrant and, immediately after that time, the property is for use primarily in commercial activities of the registrant, the registrant shall be deemed, for the purposes of this Part, to have begun at that time to use the property exclusively in commercial activities of the registrant, and subsections 206(2) and (3) apply, with such modifications as the circumstances require, to the change in use as if the property were real property; and
(b) where, immediately before that time, the registrant was using the property as capital property in commercial activities of the registrant and, immediately after that time, the property is not for use primarily in commercial activities of the registrant, the registrant shall be deemed, for the purposes of this Part, to have ceased at that time to use the property in commercial activities of the registrant, and subsections 193(1) and 206(4) apply, with such modifications as the circumstances require, to the change in use as if the property were real property.
Marginal note:Acquisition of a business
(4) Notwithstanding section 197, where
(a) in acquiring a business or part of a business from a registrant, a financial institution that is a registrant is deemed under subsection 167(1) to have acquired property for use exclusively in commercial activities of the institution, and
(b) immediately after the time possession of the property is transferred to the institution under the agreement for the supply of the business or part, the property is for use by the institution as capital property of the institution but not exclusively in commercial activities of the institution,
subsections 193(1) and 206(4) and (5) apply, with such modifications as the circumstances require, to the change in use of the property as if the property were real property.
Marginal note:Idem
(5) Notwithstanding section 197, where
(a) in acquiring a business or part of a business from a registrant, a financial institution that is a registrant is deemed under subsection 167(1) to have acquired property but not for use in commercial activities of the institution,
(b) possession of the property is transferred to the institution under the agreement for the supply of the business or part after 1993, and
(c) immediately after the transfer, the property is for use by the institution as capital property of the institution in commercial activities of the institution,
subsection 206(2) applies, with such modifications as the circumstances require, to the change in use of the property as if the property were real property.
Marginal note:Amalgamation
(6) Where
(a) a particular corporation that is not a financial institution is merged or amalgamated with one or more other corporations to form a corporation (in this subsection referred to as the “new corporation”) that is a financial institution in circumstances to which section 271 applies,
(b) the new corporation is a registrant, and
(c) personal property that was capital property of the particular corporation becomes at any time the property of the new corporation as a consequence of the merger or amalgamation,
subsection (2) applies to the property as if the new corporation became a financial institution at that time.
Marginal note:Winding-up
(7) Where
(a) a particular corporation that is not a financial institution is wound up at a particular time in circumstances to which section 272 applies,
(b) not less than 90% of the issued shares of each class of the capital stock of the corporation were, immediately before the particular time, owned by another corporation (in this subsection referred to as the “new corporation”) that is a financial institution,
(c) the new corporation is a registrant, and
(d) personal property that was capital property of the particular corporation becomes at any time the property of the new corporation as a consequence of the winding-up,
subsection (2) applies to the property as if the new corporation became a financial institution at the particular time.
- [NOTE: Application provisions are not included in the consolidated text
- see relevant amending Acts and regulations.]
- 1990, c. 45, s. 12
- 1993, c. 27, s. 71
- Date modified: