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

Marginal note:Budget arrangements

• 338. (1) Where a supply of property or a service (other than a subscription for newspapers, magazines or other publications published periodically) is made and the consideration for the supply of the property or service delivered, performed or made available during any period beginning before 1991 and ending after 1990 is paid by the recipient under a budget payment arrangement with a reconciliation of the payments to take place at or after the end of the period and before 1992, at the time the supplier issues an invoice for the reconciliation of the payments, the supplier shall determine the positive or negative amount determined by the formula

  A - B

  where

  A 

  is the tax that would be payable by the recipient for the part of the property or service supplied during the period that was delivered, performed or made available after 1990, if the consideration therefor had become due and been paid after 1990; and

  B 

  is the total tax payable by the recipient in respect of the supply of the property or service delivered, performed or made available during the period.

• Marginal note:Collection of tax

  (2) Where the amount determined under subsection (1) in respect of a supply of property or a service is a positive amount and the supplier is a registrant, the supplier shall collect, and be deemed to have collected on the day the invoice for the reconciliation of payments is issued, that amount from the recipient as tax.

• Marginal note:Refund of excess

  (3) Where the amount determined under subsection (1) in respect of a supply of property or a service is a negative amount and the supplier is a registrant, the supplier shall refund or credit that amount to the recipient and issue a credit note for that amount in accordance with section 232.

• Marginal note:Continuous supply

  (4) Where a supply of property or a service, during any period for which the supplier issues an invoice for the supply, is made on a continuous basis by means of a wire, pipeline or other conduit and, because of the method of recording the delivery of the property or the provision of the service, the time at which the property or a part thereof is delivered, or the time at which the service or a part thereof is provided, cannot reasonably be determined, an equal part of the whole of the property delivered, or of the whole of the service provided, in the period shall, for the purposes of this section, be deemed to have been delivered or provided, as the case may be, on each day of the period.

Marginal note:Progress payments

339. Where a taxable supply is made under a contract to construct, renovate, alter or repair real property or a ship or other marine vessel,

• (a) any consideration for the supply that becomes due or is paid without becoming due after August 1989 and before 1991 as a progress payment required under the contract shall be deemed, for the purposes of this Part, to have become due on January 1, 1991 and not to have been paid before 1991;

• (b) no tax is payable in respect of any part of the consideration for the supply that may reasonably be attributed to property delivered and services performed under the contract before 1991; and

• (c) where paragraph 168(3)(c) applies in respect of the supply, tax is payable in respect thereof and the construction, renovation, alteration or repair is substantially completed before December 1990, the construction, renovation, alteration or repair shall be deemed, for the purposes of this Part, to have been substantially completed on December 1, 1990 and not before that day.