Select Luxury Items Tax Act (S.C. 2022, c. 10, s. 135)

Marginal note:Tax not payable — registered vendor of vehicles

• 19 (1) The tax under section 18 in respect of a subject vehicle sold by a vendor to a purchaser is not payable if an exemption certificate applies in respect of the sale of the subject vehicle in accordance with section 36 and if the vendor is a registered vendor in respect of subject vehicles or a prescribed person.

• Marginal note:Tax not payable — previously registered vehicle

  (2) The tax under section 18 in respect of a subject vehicle sold by a vendor to a purchaser is not payable if the subject vehicle has been registered with the Government of Canada or a province except if

  • (a) the subject vehicle was registered only because of the sale and has never otherwise been registered with the Government of Canada or a province; or

  • (b) the vendor

    • (i) is Her Majesty in right of Canada or a province, an agent of Her Majesty in right of Canada or a province or an Indigenous governing body,

    • (ii) imported the subject vehicle, and

    • (iii) did not pay tax under section 20 in respect of the importation of the subject vehicle.

• Marginal note:Tax not payable — certain vehicles

  (3) The tax under section 18 in respect of a subject vehicle sold by a vendor to a purchaser is not payable if

  • (a) the subject vehicle is equipped for policing activities and

    • (i) the purchaser is a police authority or a military authority, or

    • (ii) it is the case that

      • (A) the purchaser and a police authority or military authority enter into an agreement that is a lease, licence or similar arrangement,

      • (B) the agreement is entered into at or before the time at which the sale is completed,

      • (C) the police authority or military authority has the right to use the subject vehicle for a period of at least six months under the agreement,

      • (D) the purchaser transfers possession of the subject vehicle to the police authority or military authority under the agreement, and

      • (E) the purchaser provides to the vendor, and the vendor retains, evidence satisfactory to the Minister that the conditions in clauses (A) to (D) are met in respect of the subject vehicle; or

  • (b) the subject vehicle is equipped for military activities and

    • (i) the purchaser is a military authority, or

    • (ii) it is the case that

      • (A) the purchaser and a military authority enter into an agreement that is a lease, licence or similar arrangement,

      • (B) the agreement is entered into at or before the time at which the sale is completed,

      • (C) the military authority has the right to use the subject vehicle for a period of at least six months under the agreement,

      • (D) the purchaser transfers possession of the subject vehicle to the military authority under the agreement, and

      • (E) the purchaser provides to the vendor, and the vendor retains, evidence satisfactory to the Minister that the conditions in clauses (A) to (D) are met in respect of the subject vehicle.

• Marginal note:Exemption certificate for aircraft or vessel

  (4) The tax under section 18 in respect of a subject aircraft or subject vessel sold by a vendor to a purchaser is not payable if an exemption certificate applies in respect of the sale in accordance with section 36.

• Marginal note:Tax certificate for aircraft or vessel

  (5) The tax under section 18 in respect of a subject aircraft or subject vessel sold by a vendor to a purchaser is not payable if a tax certificate in respect of the subject aircraft or subject vessel is in effect in accordance with section 37 at the time at which the sale is completed.

SUBDIVISION BTax on Importation

Marginal note:Tax — importation into Canada

• 20 (1) Subject to this Act, a person that is liable under the Customs Act to pay duty on an imported subject item, or that would be so liable if the subject item were subject to duty, must pay to Her Majesty in right of Canada tax in respect of the subject item in the amount determined under section 34 if the taxable amount of the subject item exceeds the price threshold in respect of the subject item.

• Marginal note:Taxable amount

  (2) Subject to subsection (3), the taxable amount of a subject item that is imported is, for the purposes of this section and for the purposes of determining under section 34 the amount of tax payable under this section, the amount determined by the formula

  A + B + C

  where

  A

  is the value of the subject item, as it would be determined under the Customs Act for the purposes of calculating duties imposed on the subject item at a percentage rate, whether the subject item is in fact subject to duty;

  B

  is the amount of all duties and taxes, if any, payable on the subject item under the Customs Tariff, the Excise Tax Act (other than Part IX of that Act), the Special Import Measures Act or any other law relating to customs; and

  C

  is a prescribed amount.

• Marginal note:Taxable amount — regulations

  (3) For the purposes of this section and for the purposes of determining under section 34 the amount of tax payable under this section, the taxable amount of a subject item in prescribed circumstances is to be determined in prescribed manner.

• Marginal note:Application of Customs Act

  (4) Subject to this Act, tax under this section in respect of a subject item is to be paid and collected under the Customs Act, and interest and penalties are to be imposed, calculated, paid and collected under that Act, as if the tax were a customs duty levied on the subject item under the Customs Tariff and, for those purposes, the Customs Act applies with any modifications that the circumstances require.

Marginal note:Tax not payable — registered vendor

• 21 (1) The tax under section 20 in respect of a subject item that is imported is not payable if the subject item is imported by a registered vendor in respect of that type of subject item.

• Marginal note:Tax not payable — previously registered vehicles

  (2) The tax under section 20 in respect of a subject vehicle that is imported is not payable if the subject vehicle has been registered with the Government of Canada or a province before the importation unless

  • (a) the registration was done in connection with the importation; and

  • (b) the subject vehicle has never otherwise been registered with the Government of Canada or a province.

• Marginal note:Tax not payable — certain vehicles

  (3) The tax under section 20 in respect of a subject vehicle that is imported is not payable if

  • (a) the subject vehicle is equipped for policing activities and imported by a police authority or a military authority; or

  • (b) the subject vehicle is equipped for military activities and imported by a military authority.

• Marginal note:Tax not payable — tax certificate

  (4) The tax under section 20 in respect of a subject aircraft or subject vessel is not payable if a tax certificate in respect of the subject aircraft or subject vessel is in effect in accordance with section 37 at the time at which the tax would become payable in the absence of this subsection.

• Marginal note:Tax not payable — special import certificate

  (5) The tax under section 20 in respect of a subject aircraft or subject vessel (other than a select subject vessel) that is imported is not payable if, at the time at which the tax would become payable in the absence of this subsection, a special import certificate in respect of the importation is in effect in accordance with section 38.

• Marginal note:Tax not payable — special cases

  (6) The tax under section 20 in respect of a subject item that is imported is not payable if

  • (a) the subject item is classified under heading No. 98.01 or tariff item No. 9802.00.00 or 9803.00.00 of the schedule to the Customs Tariff, to the extent that the subject item is not subject to duty under that Act;

  • (b) the subject item is imported for the sole purpose of maintenance, overhaul or repair of the subject item in Canada and

    • (i) neither title to, nor beneficial use of, the subject item is intended to pass, or passes, to a person in Canada while the subject item is in Canada, and

    • (ii) the subject item is exported as soon after the maintenance, overhaul or repair is completed as is reasonable having regard to the circumstances surrounding the importation and, where applicable, to the normal business practice of the importer;

  • (c) it is the case that

    • (i) the subject item is a foreign-based conveyance,

    • (ii) the importation of the subject item was non-taxable by reason of the reference to heading No. 98.01 of the schedule to the Customs Tariff in paragraph (a) but the subject item is diverted solely for maintenance, overhaul or repair in Canada,

    • (iii) neither title to, nor beneficial use of, the subject item is intended to pass, or passes, to a person in Canada while the subject item is in Canada, and

    • (iv) the subject item is exported as soon after the maintenance, overhaul or repair is completed as is reasonable having regard to the circumstances surrounding the importation and, where applicable, to the normal business practice of the importer;

  • (d) the subject item is a subject vessel imported in circumstances where customs duties have been removed under subsection 7(1) of the Vessel Duties Reduction or Removal Regulations;

  • (e) the subject item is a subject vehicle that is imported temporarily by an individual resident in Canada and

    • (i) the subject item was last provided in the course of a vehicle rental business to the individual by way of lease, licence or similar arrangement under which continuous possession or use of the subject item is provided for a period of less than 180 days,

    • (ii) immediately before the importation, the individual was outside Canada for an uninterrupted period of at least 48 hours, and

    • (iii) the subject item is exported within 30 days after the importation; or

  • (f) the subject item would be classified under tariff item No. 9802.00.00 of the schedule to the Customs Tariff to the extent that the subject item would not be subject to duty under that Act if the definition conveyance in section 2 of the Temporary Importation of Conveyances by Residents of Canada Regulations were read as follows:

    conveyance

    conveyance means any vehicle, aircraft, water-borne craft or other contrivance that is used to move persons or goods;

Marginal note:Definition of determination of the tax status

• 22 (1) In this section, determination of the tax status of a subject item means a determination, re-determination or further re-determination that tax under this Subdivision is, or is not, payable in respect of the subject item.

• Marginal note:Application of Customs Act — determination

  (2) Subject to subsections (4) to (6), the Customs Act (other than subsections 67(2) and (3) and sections 68 and 70) and the regulations made under that Act apply, with any modifications that the circumstances require, to the determination of the tax status of a subject item for the purposes of this Subdivision as if it were the determination, re-determination or further re-determination, as the case requires, of the tariff classification of the subject item.

• Marginal note:Application of Customs Act — appraisal

  (3) The Customs Act and the regulations made under that Act apply, with any modifications that the circumstances require, to the appraisal, re-appraisal or further re-appraisal of the value of a subject item for the purposes of this Subdivision as if it were the appraisal, re-appraisal or further re-appraisal, as the case requires, of the value for duty of the subject item.

• Marginal note:Appeals of determination of tax status

  (4) In applying the Customs Act to a determination of the tax status of a subject item, the references in that Act to the “Canadian International Trade Tribunal” are to be read as references to the “Tax Court of Canada”.

• Marginal note:Application — this Act and Tax Court of Canada Act

  (5) The provisions of this Act and of the Tax Court of Canada Act that apply to an appeal taken under section 100 apply, with any modifications that the circumstances require, to an appeal taken under subsection 67(1) of the Customs Act from a decision of the President of the Canada Border Services Agency made under section 60 or 61 of the Customs Act in a determination of the tax status of a subject item as if the decision of the President were a confirmation of an assessment or a reassessment made by the Minister under subsection 97(8) or (9) as a consequence of a notice of objection filed under subsection 97(1) by the person to which the President is required to give notice under section 60 or 61 of the Customs Act, as the case may be, of the decision.

• Marginal note:Rebate — appraisal or re-appraisal

  (6) If, because of an appraisal, a re-appraisal or a further re-appraisal of the value of a subject item or a determination of the tax status of a subject item, it is determined that the amount that was paid as tax under this Subdivision in respect of the subject item exceeds the amount of tax that is required under this Subdivision to be paid in respect of the subject item and a refund of the excess would be given under paragraph 59(3)(b) or 65(1)(b) of the Customs Act if the tax under this Subdivision in respect of the subject item were a customs duty in respect of the subject item levied under the Customs Tariff, a rebate of the excess is to be paid, subject to section 46, to the person that paid the excess, and the provisions of the Customs Act that relate to the payment of such refunds and interest on such refunds apply, with any modifications that the circumstances require, as if the rebate of the excess were a refund of duty.

• Marginal note:Application of section 69 of Customs Act

  (7) Subject to section 46, section 69 of the Customs Act applies, with any modifications that the circumstances require, if an appeal in respect of the value of a subject item or a determination of the tax status of a subject item is taken for the purpose of determining whether tax under this Subdivision in respect of the subject item is payable or of determining the amount of such tax.

SUBDIVISION CTax in Other Circumstances

Marginal note:Tax — registration of registered vendor’s vehicle

• 23 (1) Subject to this Act, if a registered vendor in respect of subject vehicles is an owner of a subject vehicle at a particular time, if the subject vehicle is registered at the particular time with the Government of Canada or a province, if the subject vehicle has never otherwise been registered with the Government of Canada or a province and if the taxable amount of the subject vehicle exceeds the price threshold in respect of the subject vehicle, the registered vendor must pay to Her Majesty in right of Canada tax in respect of the subject vehicle in the amount determined under section 34.

• Marginal note:When tax payable

  (2) The tax under subsection (1) becomes payable at the particular time referred to in that subsection.

• Marginal note:Tax not payable

  (3) The tax under subsection (1) in respect of a registration of a subject vehicle owned by a registered vendor is not payable if the registration of the subject vehicle is done only because

  • (a) the subject vehicle is sold by the registered vendor to a purchaser; or

  • (b) the right to use the subject vehicle is provided by the registered vendor to a person under a lease, licence or similar arrangement.

• Marginal note:Taxable amount

  (4) Subject to subsection (5), the taxable amount of a subject vehicle that is owned by a registered vendor is, for the purposes of this section and for the purposes of determining under section 34 the amount of tax payable under this section, the amount determined by the formula

  A + B

  where

  A

  is the greater of

  • (a) the retail value of the subject vehicle at the time at which the subject vehicle is registered with the Government of Canada or a province, and

  • (b) the retail value of the subject vehicle at the time at which the registered vendor first uses the subject vehicle; and

  B

  is a prescribed amount.

• Marginal note:Taxable amount — regulations

  (5) For the purposes of this section and for the purposes of determining under section 34 the amount of tax payable under this section, the taxable amount of a subject vehicle in prescribed circumstances is to be determined in prescribed manner.