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

Marginal note:Adjustments

• 340.1 (1) Where a person remits tax under subsection 337(6) or 340(2) calculated on the consideration or a part thereof for a taxable supply and that consideration or part thereof is subsequently reduced, to the extent that the person did not claim, and is not, but for this section, entitled to claim, an input tax credit or a rebate in respect of the portion of the tax that was calculated on the amount by which the consideration or part thereof was reduced, that portion shall be deemed, for the purposes of determining a rebate under section 261, to be an amount that was not payable or remittable by the person.

• Marginal note:Application

  (2) Subsection (1) does not apply in circumstances in which section 161 or 176 applies.

Marginal note:Services before 1991

• 341 (1) No tax is payable in respect of any consideration that is paid or becomes due before May 1991 for a supply of a service (other than a freight transportation service or a service that is the transportation of an individual) to a person if all or substantially all of the service was performed before 1991.

• Marginal note:Idem

  (2) Where all or substantially all of a service (other than a freight transportation service or a service that is the transportation of an individual) that is supplied to a person is not performed before 1991, no tax is payable in respect of any consideration for the supply that is paid or becomes due before May 1991 to the extent that that consideration relates to any part of the service that was performed before 1991.

• Marginal note:Payments before 1991

  (3) Subject to subsection 337(2), where any consideration for a taxable supply of a service (other than a freight transportation service or a service that is the transportation of an individual) is paid after August 1990 and before 1991 without having become due or becomes due after August 1990 and before 1991, that consideration shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991.

• Marginal note:Memberships and admissions

  (4) For the purposes of this Division, a supply of a membership in a club, an organization or an association and a supply of an admission in respect of a place of amusement, a seminar, an activity or an event shall be deemed to be supplies of a service, but a supply of a right to acquire a membership in a club, an organization or an association shall be deemed to be a supply of property.

• Marginal note:Combined supply

  (5) For the purposes of subsection 168(8), where

  • (a) any combination of service, personal property or real property (each of which is in this subsection referred to as an “element”) is supplied,

  • (b) the consideration for each element is not separately identified, and

  • (c) no tax would be payable in respect of an element that is property the ownership or possession of which is transferred to the recipient before 1991 if that element were supplied separately,

  the element mentioned in paragraph (c) shall be deemed to have been supplied separately from all of the other elements.

• Marginal note:Application

  (6) This section does not apply to a supply in respect of which section 338 applies.

Marginal note:Legal service performed before 1991

• 341.1 (1) No tax is payable in respect of the consideration for a supply of a legal service to the extent that the consideration relates to any part of the service that was performed before 1991 and, under the agreement for the supply, does not become due

  • (a) until allowed, directed or ordered by a court; or

  • (b) until the completion or termination of the service provided by the supplier.

• Marginal note:Service of representative, trustee, receiver or liquidator

  (2) No tax is payable in respect of the consideration for a supply of a service of a personal representative in respect of the administration of an estate, or a service of a trustee, receiver or liquidator, to the extent that the consideration relates to any part of the service that was performed before 1991 and does not become due

  • (a) in the case of the service of a personal representative, until it is approved by all beneficiaries of the estate or in accordance with the terms of the trust binding the personal representative;

  • (b) in the case of the service of a trustee, until a date determined under the terms of the trust or an agreement in writing for the supply; or

  • (c) in any case, until it is allowed, directed or ordered by a court.

• Marginal note:Idem

  (3) For the purposes of subsections (1) and (2), where substantially all of a service is performed before 1991, all of the service shall be deemed to have been performed before 1991.

Marginal note:Transportation of individuals

• 342 (1) No tax is payable in respect of a supply of a service that is the transportation of an individual (other than a service to which subsection (3) applies) where the service begins before 1991.

• Marginal note:Idem

  (2) Where any consideration for a supply of a service that is the transportation of an individual (other than a service to which subsection (3) applies) is paid after August 1990 and before 1991 without having become due or becomes due after August 1990 and before 1991, that consideration shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991.

• Marginal note:Transportation pass before February 1991

  (2.1) No tax is payable in respect of a supply made by a person to an individual of a transportation pass that entitles the individual to transportation services during a period beginning before 1991 and ending before February 1991 without payment of consideration by the individual each time a supply of a transportation service is made to the individual.

• Marginal note:Transportation pass

  (3) Where a supply is made by a person to an individual of a transportation pass that entitles the individual to transportation services during a period beginning before 1991 and ending after January 1991 without payment of consideration by the individual each time a supply of a transportation service is made to the individual, and consideration for the pass becomes due after August 1990 and before May 1991 or is paid after August 1990 and before May 1991 without becoming due, the part of the consideration for the pass determined by the formula

  A × (B/C)

  where

  A

  is amount of the consideration for the pass,

  B

  is the number of days in the period that are after 1990, and

  C

  is the number of days in the period,

  shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991.

Marginal note:Freight transportation services

• 343 (1) Where one or more carriers make a supply of freight transportation services in respect of a continuous freight movement of tangible personal property and, before 1991, the shipper of the property transferred possession of the property to the first carrier engaged in the continuous freight movement, no tax is payable in respect of any consideration for the supply that is paid or becomes due before May 1991.

• Marginal note:Freight transportation services after 1990

  (2) Where

  • (a) one or more carriers make a supply in Canada of freight transportation services in respect of a continuous freight movement of tangible personal property,

  • (b) the shipper of the property does not transfer possession of the property before 1991 to the first carrier engaged in the continuous freight movement, and

  • (c) consideration for the supply is paid or becomes due after August 1990 and before 1991,

  that consideration shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991.

• Marginal note:Interpretation

  (3) For the purposes of this section, “carrier”, “continuous freight movement”, “freight transportation service” and “shipper” have the same meanings as in Part VII of Schedule VI.

Meaning of funeral services

• 344 (1) In this section, funeral services includes the provision of a coffin, a headstone or any other property relating to the funeral, burial or cremation of an individual that is provided under an arrangement for the provision of funeral services.

• Marginal note:Funeral arrangements entered into before September 1990

  (2) Where

  • (a) an arrangement for funeral services in respect of an individual is entered into in writing before September 1990,

  • (b) under the terms of the arrangement, the funds required to pay for the funeral services are held by a trustee who is responsible for acquiring funeral services in respect of the individual, and

  • (c) at the time the arrangement is entered into, it is reasonable to expect that all or a part of those funds will be advanced to the trustee before the individual’s death,

  no tax is payable by the trustee in respect of the supply to the trustee of funeral services under the arrangement.

• Marginal note:Idem

  (3) Where an arrangement for funeral services in respect of an individual is entered into in writing at any time before September 1990 and, at that time, it is reasonable to expect that all or a part of the consideration for the supply of the funeral services will be paid before the individual’s death, no tax is payable in respect of any supply of funeral services under the arrangement.

Marginal note:Lifetime memberships

345 Notwithstanding subsections 341(1) to (3), where a supply of a membership is made

• (a) to an individual for the lifetime of the individual, or

• (b) to a person other than an individual for the lifetime of an individual designated by the person,

to the extent that the total of all amounts that were paid after August 1990 and before 1991 as or on account of consideration for the supply exceeds 25% of the total consideration for the supply, the consideration shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991.

Marginal note:Transitional credit for small businesses

• 346 (1) Where a person (other than a listed financial institution) is, in the particular fiscal quarter that is the first fiscal quarter of the person beginning in 1991, required to be registered under subsection 240(1) and the total of all consideration that in the particular fiscal quarter became due or was paid without having become due for taxable supplies made by the person in the course of a business does not exceed $500,000,

  • (a) where the reporting period of the person is a fiscal quarter or a fiscal month, the person may deduct the specified amount of the person in determining the person’s net tax for the last reporting period of the person ending in the particular fiscal quarter, or for any subsequent reporting period of the person ending in 1991, the return under Division V for which is filed before 1993, and

  • (b) in any other case, the Minister shall pay a rebate to the person equal to the specified amount of the person,

  and, for the purposes of this subsection, where the total of all amounts each of which is the consideration that became due or that was paid without becoming due for a taxable supply made by a person in the course of a business in any three month period beginning in 1990 throughout which the person carried on business did not exceed $500,000, the total of all consideration that became due or that was paid without becoming due for taxable supplies made by the person in the course of the business in the first fiscal quarter of the person beginning in 1991 shall be deemed not to exceed $500,000.

• Marginal note:Specified amount

  (2) For the purposes of subsection (1), the specified amount of a particular person is an amount equal to the lesser of

  • (a) the total of $300 and the lesser of

    • (i) $700, and

    • (ii) 2% of the total consideration that became due, or that was paid without becoming due, for taxable supplies made by the particular person in any fiscal quarter of the person beginning after 1989 and before April 1991 in excess of $15,000, and

  • (b) the amount by which $1,000 exceeds the total of all amounts each of which is an amount that was by reason of this section deducted by, or rebated to, a person who was associated with the particular person at the end of the first fiscal quarter of the particular person beginning after 1990.

• Marginal note:Application for rebate

  (3) A rebate shall not be paid under paragraph (1)(b) to a person unless the person files an application for the rebate on or before the day on or before which the person is required under Division V to file a return for the first fiscal year of the person beginning after 1990.

• Marginal note:Application of provisions

  (4) Sections 262 to 264 apply in respect of rebates paid or payable under this section as though they were paid or payable under Division VI.