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

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.

Marginal note:Exclusive products held on implementation

• 361 (1) Where before the implementation date for a participating province, when an approval of the Minister for the application of section 178.3 to a direct seller is in effect, the direct seller has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of a direct seller who is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect and the independent sales contractor holds, at the beginning of that day, the exclusive product for sale in a participating province, for the purpose of applying subsection 165(2) or 220.05(1), as the case may require, the direct seller is deemed to have made and the independent sales contractor is deemed to have received, on that implementation date, a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.3(1).

• Marginal note:Exclusive products held on implementation

  (2) Where before the implementation date for a participating province, when an approval of the Minister for the application of section 178.4 to a distributor of a direct seller is in effect, the distributor has made a taxable supply by way of sale (other than a zero-rated supply) of an exclusive product of the direct seller to an independent sales contractor of a direct seller who is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with the direct seller is in effect and the independent sales contractor holds, at the beginning of that day, the exclusive product for sale in a participating province, for the purpose of applying subsection 165(2) or 220.05(1), as the case may require, the distributor is deemed to have made and the independent sales contractor is deemed to have received, on that implementation date, a supply by way of sale of the exclusive product in accordance with the rules provided in subsection 178.4(1).

• Marginal note:Definitions

  (3) In this section, direct seller, distributor, exclusive product and independent sales contractor have the meanings assigned by section 178.1.

SUBDIVISION DSpecial Cases

Marginal note:Definitions

• 362 (1) In this section, Advisory Group, Crossing and Developer have the meanings assigned by section 1 of the Northumberland Strait Crossing Act, S.N.B. 1993, c. N-8.1.

• Marginal note:Construction of Northumberland Strait Crossing

  (2) No tax is payable under subsection 165(2) in respect of a supply of property or services that are acquired by the recipient of the supply for consumption or use exclusively in the construction of the Crossing.

• Marginal note:Exemption certificate

  (3) Subsection (2) does not apply to a supply made to a recipient who is not the Developer unless the recipient provides the supplier with a valid exemption certificate in respect of the supply issued by the Advisory Group.

Marginal note:Instalment base following implementation

• 363 (1) Notwithstanding subsection 237(2), where a registrant (other than a selected listed financial institution) to whom subsection 237(1) applies is resident in a participating province and a reporting period of the registrant begins during the calendar year in which the province becomes a participating province, for the purpose of determining the amount of instalment payments under subsection 237(1), if any, that become payable after the first fiscal quarter of the registrant beginning on or after the implementation date for the province, the registrant’s instalment base for the reporting period is equal to the lesser of

  • (a) the amount determined under paragraph 237(2)(a); and

  • (b) 200% of the amount determined under paragraph 237(2)(b).

• Marginal note:Selected listed financial institutions — instalments in transitional year

  (2) Notwithstanding subsection 237(1), where a particular reporting period of a selected listed financial institution ends in a particular fiscal year ending in a taxation year of the financial institution and the particular fiscal year begins before April 1, 1997 and ends on or after that day, the instalment to be paid under that subsection within one month after the end of each fiscal quarter ending on or after that day in the particular reporting period is the amount determined under whichever of the following paragraphs the financial institution has elected in prescribed form to determine the instalments for those fiscal quarters under:

  • (a) the lesser of

    • (i) 1/4 of the amount determined under paragraph 237(2)(a), and

    • (ii) the amount determined by the formula

      A + (B/4)

      where

      A

      is the total of all amounts, each of which is determined, for a participating province, by the formula

      [C × D × (E/F) × G/365]/H

      where

      C

      is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1,

      D

      is the lesser of the financial institution’s percentage for the participating province for the taxation year and the financial institution’s percentage for the participating province for the immediately preceding taxation year, each determined in accordance with the prescribed rules that apply to that financial institution,

      E

      is the tax rate for the participating province,

      F

      is 7%,

      G

      is the number of days in the particular reporting period after March 1997, and

      H

      is the number of fiscal quarters ending on or after April 1, 1997 and in the particular reporting period, and

      B

      is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1;

  • (b) the amount determined by the formula

    A + (B/4)

    where

    A

    is the total of all amounts, each of which is determined, for a participating province, by the formula

    [C × D × (E/F) × G/365]/H

    where

    C

    is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1,

    D

    is the financial institution’s percentage for the participating province for the immediately preceding taxation year, determined in accordance with the prescribed rules that apply to that financial institution,

    E

    is the tax rate for the participating province,

    F

    is 7%,

    G

    is the number of days in the particular reporting period after March 1997, and

    H

    is the number of fiscal quarters ending on or after April 1, 1997 and in the particular reporting period, and

    B

    is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1;

  • (c) the lesser of

    • (i) 1/4 of the amount determined under paragraph 237(2)(a), and

    • (ii) the amount determined by the formula

      (A + B) + C/4

      where

      A

      is the total of all amounts, each of which is determined, for a participating province, by the formula

      [[(D - E) × F × (G/H) × I/365] - K]/J

      where

      D

      is the total of

      • (A) all tax (other than an amount of tax that is prescribed for the purposes of paragraph (a) of the description of A in subsection 225.2(2)) that became payable under any of subsection 165(1) and sections 212 and 218 by the financial institution during the particular reporting period or that was paid by the financial institution during the particular reporting period without having become payable,

      • (B) all amounts each of which is tax under subsection 165(1) in respect of a supply (other than a supply to which clause (C) applies) made by a person other than a selected listed financial institution to the financial institution that would, but for an election made under section 150, have become payable by the financial institution during the particular reporting period, and

      • (C) all amounts each of which is an amount, in respect of a supply made during the particular reporting period of property or a service to which the financial institution and another person have elected to have paragraph (c) of the description of A in subsection 225.2(2) apply, equal to tax calculated on the cost to the other person of supplying the property or service to the financial institution excluding any remuneration to employees of the other person, the cost of financial services and tax under this Part,

      E

      is the total of

      • (A) all input tax credits (other than input tax credits in respect of an amount of tax that is prescribed for the purposes of paragraph (a) of the description of A in subsection 225.2(2)) of the financial institution for the particular reporting period or preceding reporting periods of the financial institution claimed by the financial institution in the return under Division V filed by the financial institution for the particular reporting period, and

      • (B) all amounts each of which would be an input tax credit of the financial institution for the particular reporting period of the financial institution in respect of property or a service if tax became payable during the particular reporting period in respect of the supply of the property or service equal to the amount included for the particular reporting period under clause (B) or (C) of the description of D in respect of the supply,

      F

      is the lesser of the financial institution’s percentage for the participating province for the taxation year and the financial institution’s percentage for the participating province for the immediately preceding taxation year, each determined in accordance with the prescribed rules that apply to that financial institution,

      G

      is the tax rate for the participating province,

      H

      is 7%,

      I

      is the number of days in the particular reporting period after March 1997,

      J

      is the number of fiscal quarters ending on or after April 1, 1997 and in the particular reporting period, and

      K

      is the total of

      • (A) all tax (other than an amount of tax that is prescribed for the purposes of paragraph (a) of the description of F in subsection 225.2(2)) under subsection 165(2) in respect of supplies made in the participating province to the financial institution or under section 212.1 in respect of goods imported by the financial institution for use in the participating province that became payable by the financial institution during the fiscal quarter or that was paid by the financial institution during the fiscal quarter without having become payable, and

      • (B) all amounts each of which is an amount, in respect of a supply made during the fiscal quarter of property or a service to which the financial institution and another person have elected to have paragraph (c) of the description of A in subsection 225.2(2) apply, equal to tax payable by the other person under any of subsection 165(2), 212.1, 218.1 or Division IV.1 that is included in the cost to the other person of supplying the property or service to the financial institution,

      B

      is the total of all amounts that became collectible and all other amounts collected by the financial institution in the fiscal quarter as or on account of tax under subsection 165(2), and

      C

      is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1; or

  • (d) the amount determined by the formula

    (A + B) + C/4

    where

    A

    is the total of all amounts, each of which is determined, for a participating province, by the formula

    [[(D - E) × F × (G/H) × (I/365)] - K]/J

    where

    D

    is the total of all amounts each of which is

    • (i) tax (other than an amount of tax that is prescribed for the purposes of paragraph (a) of the description of A in subsection 225.2(2)) that became payable under any of subsection 165(1) and sections 212 and 218 by the financial institution during a reporting period (in this paragraph referred to as the “earlier reporting period”) of the financial institution ending in the twelve-month period immediately preceding the particular reporting period or that was paid by the financial institution during the earlier reporting period without having become payable,

    • (ii) all amounts each of which is tax under subsection 165(1) in respect of a supply (other than a supply to which subparagraph (iii) applies) made by a person other than a selected listed financial institution to the financial institution that would, but for an election made under section 150, have become payable by the financial institution during the earlier reporting period, and

    • (iii) all amounts each of which is an amount, in respect of a supply made during the earlier reporting period of property or a service to which the financial institution and another person have elected to have paragraph (c) of the description of A in subsection 225.2(2) apply, equal to tax calculated on the cost to the other person of supplying the property or service to the financial institution excluding any remuneration to employees of the other person, the cost of financial services and tax under this Part,

    E

    is the total of

    • (i) all input tax credits (other than input tax credits in respect of an amount of tax that is prescribed for the purposes of paragraph (a) of the description of A in subsection 225.2(2)) of the financial institution for the earlier reporting period or preceding reporting periods of the financial institution claimed by the financial institution in the return under Division V filed by the financial institution for the earlier reporting period, and

    • (ii) all amounts each of which would be an input tax credit of the financial institution for the earlier reporting period of the financial institution in respect of property or a service if tax became payable during the earlier reporting period in respect of the supply of the property or service equal to the amount included for the earlier reporting period under subparagraph (ii) or (iii) of the description of D in respect of the supply,

    F

    is the financial institution’s percentage for the participating province for the immediately preceding taxation year, determined in accordance with the prescribed rules that apply to that financial institution,

    G

    is the tax rate for the participating province,

    H

    is 7%,

    I

    is the number of days in the particular reporting period after March 1997,

    J

    is the number of fiscal quarters ending on or after April 1, 1997 and in the particular reporting period, and

    K

    is the total of

    • (i) all tax (other than an amount of tax that is prescribed for the purposes of paragraph (a) of the description of F in subsection 225.2(2)) under subsection 165(2) in respect of supplies made in the participating province to the financial institution or under section 212.1 in respect of goods imported by the financial institution for use in the participating province that became payable by the financial institution during the fiscal quarter or that was paid by the financial institution during the fiscal quarter without having become payable, and

    • (ii) all amounts each of which is an amount, in respect of a supply made during the fiscal quarter of property or a service to which the financial institution and another person have elected to have paragraph (c) of the description of A in subsection 225.2(2) apply, equal to tax payable the other person under any of subsection 165(2), 212.1, 218.1 or Division IV.1 that is included in the cost to the other person of supplying the property or service to the financial institution,

    B

    is the total of all amounts that became collectible and all other amounts collected by the financial institution in the fiscal quarter as or on account of tax under subsection 165(2), and

    C

    is the financial institution’s instalment base for the particular reporting period determined under paragraph 237(2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1.

• Marginal note:Information requirements

  (3) For the purposes of this section, subsections 169(4) and (5) and 223(2) apply with respect to any amount that is included in the description of K in paragraphs (2)(c) and (d) as if that amount were an input tax credit.

• Marginal note:Exclusions

  (4) No amount of tax paid or payable by a selected listed financial institution in respect of property or services acquired, imported or brought into a participating province otherwise than for consumption, use or supply in the course of an endeavour (as defined in subsection 141.01(1)) of the financial institution shall be included in determining the instalment to be paid by the institution under subsection (2).