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

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.

Marginal note:Transitional credit for taxi businesses

• 347 (1) Where a small supplier carrying on a taxi business is registered under Subdivision D of Division V before April 1991, the supplier may, in determining the net tax for

  • (a) where the reporting period of the supplier is a fiscal quarter or a fiscal month, each reporting period of the supplier that ends in 1991 on or after the last day of the first fiscal quarter of the supplier beginning in that year, and

  • (b) in any other case, the first reporting period of the supplier beginning after 1990,

  deduct the specified amount of the supplier for that reporting period, where that net tax would be a positive amount if it were determined without reference to this subsection and the return under Division V for that period is filed before 1993.

• Marginal note:Specified amount

  (2) For the purposes of subsection (1), the specified amount of a supplier for a reporting period of the supplier is an amount equal to the lesser of

  • (a) the positive amount, if any, that would be the net tax for the period if that amount were determined without reference to that subsection, and

  • (b) the amount determined by the formula

    A - B

    where

    A

    is $300, and

    B

    is the total of all amounts each of which is an amount that, because of that subsection, was deducted in determining the net tax for a preceding reporting period of the supplier.

DIVISION XTransitional Provisions for Participating Provinces

SUBDIVISION AInterpretation

Marginal note:Definitions

348 The definitions in this section apply in this Division.

announcement date

announcement date for a participating province means

• (a) October 23, 1996 in the case of Nova Scotia, New Brunswick or Newfoundland; and

• (b) February 10, 1997 in the case of the Nova Scotia offshore area or the Newfoundland offshore area. (date de publication)

implementation date

implementation date for a participating province means April 1, 1997 in the case of Nova Scotia, New Brunswick, Newfoundland, the Nova Scotia offshore area or the Newfoundland offshore area. (date de mise en oeuvre)

retail sales tax

retail sales tax means a general retail sales tax imposed under an Act of the legislature of a province at a percentage rate on all goods other than those specifically enumerated in that Act. (taxe de vente au détail)

specified pre-implementation date

specified pre-implementation date for a participating province means

• (a) February 1, 1997 in the case of Nova Scotia, New Brunswick or Newfoundland; and

• (b) February 10, 1997 in the case of the Nova Scotia offshore area or the Newfoundland offshore area. (date de mise en oeuvre anticipée)

SUBDIVISION BApplication

Marginal note:Real property

• 349 (1) Subject to Subdivision C, where a province is a participating province, subsection 165(2) and the provisions of this Part (other than Division IX) relating to tax under that subsection apply to

  • (a) any supply by way of sale of real property made in that participating province where ownership and possession of the property are transferred on or after the implementation date for that province,

  • (b) any supply of real property made in a participating province by way of lease, licence or similar arrangement where all of the consideration for the supply becomes due or is paid, or is deemed to have become due or to have been paid, on or after the implementation date for that province and is not deemed to have become due or to have been paid before that day, and

  • (c) any supply of real property made in a participating province by way of lease, licence or similar arrangement where part of the consideration for the supply becomes due or is paid, or is deemed to have become due or been paid, on or after the implementation date for that province,

  except that tax is not payable under that subsection (otherwise than because of Subdivision C) in respect of any part of the consideration for a supply referred to in paragraph (c) that becomes due or is paid before that day and is not deemed to have become due or to have been paid on or after that day.

• Marginal note:Personal property and services

  (2) Subject to Subdivision C, where a province is a participating province, subsection 165(2), section 218.1 and subsection 220.08(1) and the provisions of this Part (other than Division IX) relating to tax under that section or either of those subsections apply to

  • (a) any supply of

    • (i) personal property or a service made in that participating province,

    • (ii) tangible personal property made outside Canada to a person to whom the property is delivered or made available, or physical possession of the property is transferred, in a participating province, or

    • (iii) intangible personal property or a service made outside the participating provinces where the property or service is acquired for consumption, use or supply in that participating province

    where all of the consideration for the supply becomes due or is paid, or is deemed to have become due or to have been paid, on or after the implementation date for that province and is not deemed to have become due or to have been paid before that day, and

  • (b) any supply of

    • (i) personal property or a service made in that participating province,

    • (ii) tangible personal property made outside Canada to a person to whom the property is delivered or made available, or physical possession of the property is transferred, in a participating province, or

    • (iii) intangible personal property or a service made outside the participating provinces where the property or service is acquired for consumption, use or supply in that participating province

    where part of the consideration for the supply becomes due or is paid, or is deemed to have become due or to have been paid, on or after the implementation date for that province,

  except that tax is not payable under any of those provisions (otherwise than because of Subdivision C) in respect of any part of the consideration for a supply referred to in paragraph (b) that becomes due or is paid before that day and is not deemed to have become due or to have been paid on or after that day.

• Marginal note:Imported goods

  (3) Subject to Subdivision C, where a province is a participating province, sections 212.1 and 220.07 and the provisions of this Part (other than Division IX) relating to tax under those sections apply to tangible personal property, a mobile home that is not affixed to land and a floating home imported by a person on or after the implementation date for that province and to such property that is imported by a person before that day and that is accounted for under subsection 32(1), (2) or (5) of the Customs Act on or after that day.

• Marginal note:Tangible personal property brought into a participating province

  (4) Subject to Subdivision C, where a province is a participating province, subsections 220.05(1) and 220.06(1) and the provisions of this Part (other than Division IX) relating to tax under those subsections apply to tangible personal property, a mobile home that is not affixed to land and a floating home brought into that participating province on or after the implementation date for that province and to such property brought into that province before that day by a carrier where the property is delivered in the province to a consignee on or after that day.

SUBDIVISION CTransition

Marginal note:Transfer of real property before implementation

350 Where a taxable supply by way of sale of real property is made in a participating province and ownership or possession of the property is transferred under the agreement for that supply to the recipient of the supply before the implementation date for that province, no tax is payable under subsection 165(2) in respect of the supply.

Marginal note:Transfer of single unit residential complex after implementation

• 351 (1) Where

  • (a) a supply by way of sale of a single unit residential complex, or of a building or part of it in which a residential unit forming part of such a complex is located, is made in a participating province to an individual under an agreement in writing between the supplier and the individual entered into on or before the announcement date for that province, and

  • (b) in the case of a sale of the complex, ownership of it is not transferred to the individual under the agreement before the implementation date for that province and, in any case, possession of the complex is transferred to the individual under the agreement on or after that implementation date,

  the following rules apply:

  • (c) no tax is payable under subsection 165(2) in respect of the supply made under that agreement or in respect of any supply of the complex deemed under subsection 191(1) to have been made before, or as a consequence of, the transfer of possession of the complex to the individual under that agreement, and

  • (d) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the supplier in respect of

    • (i) the complex, the land included in the complex or an improvement thereto, or

    • (ii) any other property or service to the extent that it was acquired, imported or brought into a participating province by the supplier for consumption or use in making a supply of the complex.

• Marginal note:Resupply of a single unit residential complex

  (2) If a supply referred to in paragraph (1)(a) of a residential complex or a building, or part of a building, forming part of a residential complex is made to a recipient who is a builder of the complex only because of paragraph (d) of the definition builder in subsection 123(1),

  • (a) no tax is payable under subsection 165(2) in respect of any supply of the complex made by that builder or any successor in title other than

    • (i) a taxable supply made by way of lease, licence or similar arrangement, or

    • (ii) a taxable supply by way of sale made after either the builder or the successor has used the complex as capital property in a business of the builder or successor, substantially renovated the complex or made another supply by way of sale of the complex and subsequently reacquired it; and

  • (b) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the builder or successor in respect of any property or service to the extent that it was acquired, imported or brought into a participating province by the builder or successor for consumption or use in making a supply of the complex in respect of which tax under subsection 165(2) is not payable because of paragraph (a).

• Marginal note:Transfer of residential condominium unit after implementation

  (3) Where

  • (a) a taxable supply by way of sale of a residential condominium unit is made in a participating province to a person under an agreement in writing between the supplier and the person entered into on or before the announcement date for that province, and

  • (b) ownership of the unit is not transferred to the person under the agreement before the implementation date for that province and possession thereof is transferred to the person under the agreement on or after that implementation date,

  the following rules apply:

  • (c) no tax is payable under subsection 165(2) in respect of the supply made under that agreement or in respect of any supply of the unit deemed under subsection 191(1) to have been made before possession thereof is transferred to the person under that agreement, and

  • (d) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the supplier in respect of

    • (i) the unit, the land included in the unit or an improvement thereto, or

    • (ii) any other property or service to the extent that it was acquired, imported or brought into a participating province by the supplier for consumption or use in making a supply of the unit.

• Marginal note:Resupply of a residential condominium unit

  (4) Where a supply referred to in paragraph (3)(a) of a residential condominium unit is made to a recipient who is a builder of the unit only because of paragraph (d) of the definition builder in subsection 123(1),

  • (a) no tax is payable under subsection 165(2) in respect of any supply of the unit made by that builder or any successor in title other than

    • (i) a taxable supply made by way of lease, licence or similar arrangement, or

    • (ii) a taxable supply by way of sale made after either the builder or the successor has used the unit as capital property in a business of the builder or successor, substantially renovated the unit or made another supply by way of sale of the unit and subsequently reacquired it; and

  • (b) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the builder or successor in respect of any property or service to the extent that it was acquired, imported or brought into a participating province by the builder or successor for consumption or use in making a supply of the unit in respect of which tax under subsection 165(2) is not payable because of paragraph (a).

• Marginal note:Transfer of condominium complex after implementation

  (5) Where

  • (a) a taxable supply by way of sale of a condominium complex is made in a participating province to a person under an agreement in writing between the supplier and the person entered into on or before the announcement date for that province, and

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

  • (c) at any time on or after the implementation date, 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 under subsection 165(2) in respect of the supply made under that agreement or in respect of any supply of any residential condominium unit located in the complex deemed under subsection 191(1) to have been made before ownership thereof is transferred to the person under that agreement, and

  • (e) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the supplier in respect of

    • (i) the complex, the land included in the complex or an improvement thereto, or

    • (ii) any other property or service to the extent that it was acquired, imported or brought into a participating province by the supplier for consumption or use in making a supply of the complex.

• Marginal note:Resupply of condominium complex

  (6) Where a supply referred to in paragraph (5)(a) of a condominium complex is made to a recipient who is a builder of the complex only because of paragraph (d) of the definition builder in subsection 123(1),

  • (a) no tax is payable under subsection 165(2) in respect of any supply of the complex or any residential condominium unit located in the complex made by that builder or any successor in title other than

    • (i) a taxable supply made by way of lease, licence or similar arrangement,

    • (ii) a taxable supply by way of sale of the condominium complex made after either the builder or the successor has used the complex as capital property in a business of the builder or successor, substantially renovated the complex or made another supply by way of sale of the complex and subsequently reacquired it, or

    • (iii) a taxable supply by way of sale of a residential condominium unit located in the complex made after either the builder or the successor has used the unit as capital property in a business of the builder or successor or made another supply by way of sale of the unit and subsequently reacquired it; and

  • (b) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the builder or successor in respect of any property or service to the extent that it was acquired, imported or brought into a participating province by the builder or successor for consumption or use in making a supply of the complex or the residential condominium unit located in the complex in respect of which tax under subsection 165(2) is not payable because of paragraph (a).

• Marginal note:Transfer of residential condominium unit by limited partnership

  (7) Where

  • (a) an offering memorandum (within the meaning assigned by subsection 336(6)), in respect of an offer to sell interests in a limited partnership, is issued to prospective subscribers on or before the announcement date for a participating province,

  • (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 in that province 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 (within the meaning assigned by subsection 336(6)) of the interests in the partnership because of a change in the application of taxes and those subscription prices are not increased after that day and before the offer to sell the interests expires,

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

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

    • (i) acquires ownership of land in that province or a beneficial interest therein before the implementation date for that province, and

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

    under agreements in writing entered into on or before the announcement date for that province or under agreements in writing entered into after that day 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 on or after the implementation date for that province 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 following rules apply:

  • (h) no tax is payable by the limited partnership under subsection 165(2) in respect of a supply made under an agreement referred to in paragraph (e),

  • (i) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the supplier in respect of any property or service to the extent that it was acquired, imported or brought into a participating province by the supplier for consumption or use in making the supply,

  • (j) no tax is payable by the limited partnership under subsection 165(2) in respect of a supply of any unit located in the complex deemed under subsection 191(1) to have been made, and

  • (k) no amount in respect of tax payable by the limited partnership under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the limited partnership in respect of

    • (i) any improvement to the land or complex, or

    • (ii) any other property or service to the extent that it was acquired, imported or brought into a participating province by the limited partnership for consumption or use in making a supply of the complex or a unit located in the complex.

• Marginal note:Agreement for progress payments before implementation

  (8) Where a taxable supply is made in a participating province to an individual under an agreement in writing entered into on or before the announcement date for that province between the supplier and the individual to construct or substantially renovate a single unit residential complex, a residential condominium unit or a multiple unit residential complex that does not contain more than two residential units for use as the primary place of residence of the individual or another individual who is related to, or is the former spouse or common-law partner of, the individual,

  • (a) no tax is payable under subsection 165(2) in respect of the supply; and

  • (b) no amount in respect of tax payable under subsection 165(2), section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) shall be included in determining an input tax credit of the supplier in respect of any property or service to the extent that it was acquired, imported or brought into a participating province by the supplier for consumption or use in making the supply.