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

Marginal note:Specified motor vehicle leases

354.1 If

• (a) a supply of a specified motor vehicle is made by way of lease, licence or similar arrangement for a lease interval (within the meaning of subsection 136.1(1)) under an agreement entered into before the implementation date for a participating province,

• (b) used tangible personal property, or a leasehold interest in such property, (in this section referred to as the “trade-in”) is accepted by the supplier as full or partial consideration for the supply,

• (c) the retail sales tax of the province would have been payable by the recipient in respect of that lease interval had the trade-in not been accepted and that tax not been suspended or repealed concurrent with the application to that supply of subsection 165(2) or 218.1(1), as the case may be, and

• (d) the value of the consideration for the supply as otherwise determined under this Part exceeds the amount (in this section referred to as the “adjusted value”) that is the value, excluding the amount of any tax under this Part in respect of the supply, on which that retail sales tax in respect of that lease interval would have been calculated but for the suspension or repeal of that tax,

for the purposes of subsection 165(2) or 218.1(1), as the case may be, the value of the consideration for the supply is deemed to be equal to the adjusted value.

Marginal note:Adjustments

• 355 (1) Where a person pays tax under subsections 352(9) or (10) or 354(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 payable under subsection 165(2), 218.1(1) or 220.08(1) that was calculated on the amount by which the consideration or part thereof was reduced, that portion is deemed, for the purpose 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 applies.

Marginal note:Services substantially all performed before implementation

• 356 (1) Where a supply (other than a supply to which subsection (6) applies) of a service (other than a freight transportation service or a service that is the transportation of an individual) is made in a participating province, or is made outside the participating provinces to a person who is resident in a participating province, and all or substantially all of the service was performed before the implementation date for that participating province, no tax is payable under subsection 165(2), 218.1(1) or 220.08(1) in respect of any consideration for the supply that is paid or becomes due before the day that is four months after that implementation date.

• Marginal note:Services partly performed before implementation

  (2) Where a supply (other than a supply to which subsection (6) applies) of a service (other than a freight transportation service or a service that is the transportation of an individual) is made in a participating province, or is made outside the participating provinces to a person who is resident in a participating province, and all or substantially all of the service was not performed before the implementation date for that province, no tax is payable under subsection 165(2), 218.1(1) or 220.08(1) in respect of any consideration for the supply that is paid or becomes due before the day that is four months after that implementation date to the extent that the consideration relates to any part of the service that was performed before that implementation date.

• Marginal note:Pre-payments after specified pre-implementation date for services

  (3) Subject to subsections 351(8) and 352(5), where a taxable supply (other than a supply to which subsection (6) applies) of a service (other than a freight transportation service or a service that is the transportation of an individual) is made in a participating province, or is made outside the participating provinces to a person who is resident in a participating province, and any consideration for the supply becomes due, or is paid without having become due, on or after the specified pre-implementation date for that province and before the implementation date for that province, for any part of the service that was not performed before that implementation date, that consideration is deemed, for the purpose of applying subsection 165(2), section 218.1 or subsection 220.08(1), as the case may require, to the supply, to have become due on that implementation date and not to have been paid before that implementation date.

• 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 in a participating province are each deemed to be a supply of a service, but a supply of a right to acquire a membership in a club, an organization or an association is deemed to be a supply of property.

• Marginal note:Admissions sold before announcement

  (5) Where a taxable supply of an admission to a dinner, ball, concert, show or like event in a participating province is made to a person on or before the announcement date for the participating province,

  • (a) no tax is payable under subsection 165(2) in respect of any supply of an admission to that event; 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 supplies of those admissions or in holding that event.

• Marginal note:Lifetime memberships

  (6) Where a supply of a membership for the lifetime of an individual is made in a participating province, or is made outside the participating provinces to a person who is resident in a participating province, and the total of all amounts that were paid after the announcement date for that province and before the implementation date for that province as consideration for the supply exceeds 25% of the total consideration for the supply, for the purpose of applying subsection 165(2), 218.1(1) or 220.08(1) to the supply, as the case may require, the excess amount is deemed to have become due on that implementation date and not to have been paid before that implementation date.

• Marginal note:Combined supply

  (7) For the purpose of determining when tax under subsection 165(2) becomes payable in respect of a supply made in a participating province, 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 in a participating province,

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

  • (c) no tax would be payable under subsection 165(2) in respect of an element that is property, the ownership or possession of which is transferred to the recipient before the implementation date for that province, if that element were supplied separately,

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

• Marginal note:Application

  (8) This section does not apply to a supply in respect of which section 353 applies.

Marginal note:Legal service performed before implementation

• 357 (1) Where a supply of a legal service is made in a participating province, or is made outside the participating provinces to a person who is resident in a participating province, and the consideration for the supply does not become due under the agreement for the supply until allowed, directed or ordered by a court or until the completion or termination of the service provided by the supplier, no tax is payable under subsection 165(2), 218.1(1) or 220.08(1) in respect of that consideration to the extent that it relates to any part of the service that was performed before the implementation date for that province.

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

  (2) Where

  • (a) a supply of

    • (i) a service of a personal representative in respect of the administration of an estate, or

    • (ii) a service of a trustee, receiver or liquidator

    is made in a participating province, or is made outside the participating provinces to a person who is resident in a participating province, and

  • (b) consideration for the supply does not become due

    • (i) 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,

    • (ii) 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

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

  no tax is payable under subsection 165(2), 218.1(1) or 220.08(1) in respect of that consideration to the extent that it relates to any part of the service that was performed before the implementation date for that province.

• Marginal note:Services performed before implementation

  (3) For the purposes of subsections (1) and (2), where substantially all of a service supplied in a participating province, or outside the participating provinces, to a person resident in a participating province, is performed before the implementation date for that province, all of the service is deemed to have been performed before that implementation date.

Marginal note:Transportation of individuals

• 358 (1) Where a supply is made by a person in a participating province of a service that is the transportation of an individual (other than a service to which subsection (4) applies) and the service begins before the implementation date for that province, no tax is payable under subsection 165(2) in respect of any consideration, that is paid or becomes due before the day that is four months after the implementation date, for that supply or for a supply of a service provided by the person of transporting the individual’s baggage in connection with the transportation of the individual.

• Marginal note:Transportation of individuals

  (2) Where any consideration for a supply made in a participating province of a service that is the transportation of an individual (other than a service to which subsection (4) applies) becomes due, or is paid without having become due, on or after the specified pre-implementation date for that province and before the implementation date for that province for any part of the service that was not performed before the implementation date for that province, for the purpose of applying subsection 165(2) to the supply, that consideration is deemed to have become due on that implementation date and not to have been paid before that implementation date.

• Marginal note:Transportation pass within 30 days of implementation

  (3) No tax is payable under subsection 165(2) in respect of a supply made in a participating province by a person to an individual of a transportation pass that entitles the individual to transportation services, during a period beginning before the implementation date for that province and ending before the day that is one month after that implementation date, without payment of consideration by the individual each time a supply of a transportation service is made to the individual.

• Marginal note:Transportation pass

  (4) Where a supply is made in a participating province by a person to an individual of a transportation pass that entitles the individual to transportation services, during a period beginning before the implementation date for that province and ending on or after the day that is one month after that implementation date, 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, or is paid without having become due, on or after the specified pre-implementation date for that province and before the day that is four months after the implementation date for that province, 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 on or after that implementation date, and

  C

  is the number of days in the period,

  is deemed, for the purpose of applying subsection 165(2) to the supply, to have become due on that implementation date and not to have been paid before that implementation date.

Marginal note:Freight transportation services

• 359 (1) Where one or more carriers make a supply in a participating province of freight transportation services in respect of a continuous freight movement of tangible personal property and, before the implementation date for that province, the shipper of the property transfers possession of the property to the first carrier engaged in the continuous freight movement, no tax is payable under subsection 165(2) in respect of any consideration for the supply that is paid or becomes due before the day that is four months after that implementation date.

• Marginal note:Freight transportation services after implementation

  (2) Where

  • (a) one or more carriers make a supply of freight transportation services in a participating province 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 the implementation date for that province to the first carrier engaged in the continuous freight movement, and

  • (c) consideration for the supply is paid or becomes due on or after the specified pre-implementation date for that province and before that implementation date,

  that consideration is deemed, for the purpose of applying subsection 165(2) to the supply, to have become due on that implementation date and not to have been paid before that implementation date.

• Marginal note:Interpretation

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

Meaning of funeral services

• 360 (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 implementation

  (2) Where

  • (a) an arrangement to supply funeral services in respect of an individual is entered into in writing before the implementation date for a participating province,

  • (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 under subsection 165(2) in respect of the supply in that province of funeral services under the arrangement or under section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) in respect of funeral services supplied under the arrangement for consumption or use in that province.

• Marginal note:Funeral arrangements entered into before implementation

  (3) Where an arrangement to supply funeral services in respect of an individual is entered into in writing at any time before the implementation date for a participating province 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 under subsection 165(2) in respect of the supply in that province of funeral services under the arrangement or under section 212.1 or subsection 218.1(1), 220.05(1), 220.06(1), 220.07(1) or 220.08(1) in respect of funeral services supplied under the arrangement for consumption or use in that province.