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

Full Document:  

Act current to 2024-05-01 and last amended on 2024-01-01. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION IIGoods and Services Tax (continued)

SUBDIVISION CSpecial Cases (continued)

Cryptoassets

Marginal note:Definitions

  •  (1) The following definitions apply in this section.

    cryptoasset

    cryptoasset means property (other than prescribed property) that is a digital representation of value and that only exists at a digital address of a publicly distributed ledger. (cryptoactif)

    mining activity

    mining activity means an activity of

    • (a) validating transactions in respect of a cryptoasset and adding them to a publicly distributed ledger on which the cryptoasset exists at a digital address;

    • (b) maintaining and permitting access to a publicly distributed ledger on which a cryptoasset exists at a digital address; or

    • (c) allowing computing resources to be used for the purpose of, or in connection with, performing activities described in paragraph (a) or (b) in respect of a cryptoasset. (activité de minage)

    mining group

    mining group means a group of persons that, under an agreement,

    • (a) pool property or services for the performance of mining activities; and

    • (b) share mining payments in respect of the mining activities among members of the group. (groupe de minage)

    mining group operator

    mining group operator, in respect of a mining group, means a person that coordinates, oversees or manages the mining activities of the mining group. (exploitant d’un groupe de minage)

    mining payment

    mining payment, in respect of a mining activity, means money, property or a service that is a fee, reward or other form of payment and that is received or generated as a consequence of the mining activity being performed. (paiement de minage)

  • Marginal note:Acquisition, etc., for mining activities

    (2) For the purposes of this Part, to the extent that a person acquires, imports or brings into a participating province property or a service for consumption, use or supply in the course of, or in connection with, mining activities, the person is deemed to have acquired, imported or brought into the participating province, as the case may be, the property or service for consumption, use or supply otherwise than in the course of commercial activities of the person.

  • Marginal note:Use, etc., for mining activities

    (3) For the purposes of this Part, if a person consumes, uses or supplies property or a service in the course of, or in connection with, mining activities, that consumption, use or supply is deemed to be otherwise than in the course of commercial activities of the person.

  • Marginal note:Mining payment

    (4) For the purposes of this Part, if a person receives a mining payment in respect of a mining activity,

    • (a) the provision of the mining activity is deemed not to be a supply;

    • (b) the provision of the mining payment is deemed not to be a supply; and

    • (c) in determining an input tax credit of another person that provides the mining payment, no amount is to be included in respect of tax that becomes payable, or is paid without having become payable, by the other person in respect of any property or service acquired, imported or brought into a participating province for consumption, use or supply in the course of, or in connection with, the provision of the mining payment by the other person.

  • Marginal note:Exception

    (5) Subsections (2) to (4) do not apply in respect of a mining activity to the extent that the mining activity is performed by a particular person for another person if

    • (a) the identity of the other person is known to the particular person;

    • (b) where the mining activity is in respect of a mining group that includes the particular person, the other person is not a mining group operator in respect of the mining group; and

    • (c) where the other person is a non-resident person and is not dealing at arm’s length with the particular person, each property or service — being property or a service that is received by the other person from the particular person as a consequence of the performance of the mining activity — is supplied, or is used or consumed in the course of making a supply, by the other person to one or more persons each of which

      • (i) is a person whose identity is known to the other person,

      • (ii) deals at arm’s length with the other person, and

      • (iii) is not a mining group operator in respect of a mining group that includes the other person if the mining activity is in respect of that mining group.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2023, c. 26, s. 118
Dues

Marginal note:Dues in respect of employment

 For the purposes of this Part, where an amount is paid by a person to an organization as

  • (a) a membership due paid to a trade union as defined

    • (i) in section 3 of the Canada Labour Code, or

    • (ii) in any Act of the legislature of a province providing for the investigation, conciliation or settlement of industrial disputes,

    or to an association of public servants the primary object of which is to promote the improvement of the members’ conditions of employment or work,

  • (b) a due that was, pursuant to the provisions of a collective agreement, retained by the person from an individual’s remuneration and paid to a trade union or association referred to in paragraph (a) of which the individual was not a member, or

  • (c) a due to a parity or advisory committee or similar body, the payment of which was required under the laws of a province in respect of an individual’s employment,

the organization shall be deemed to have made an exempt supply to the person and the amount shall be deemed to be consideration for the supply.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
Fees

Marginal note:Government fees

 For the purposes of this Part, where a person who is the holder of, or an applicant for, a right the supply of which is an exempt supply described by paragraph 20(c) of Part VI of Schedule V is required to pay to a government or municipality or a board, commission or other body established by a government or municipality an amount that is levied for the purposes of recovering the costs of administration of a regulatory program relating to the right and a failure to pay the amount would result in a denial or loss of, a restriction in the exercise of, or a change in the person’s entitlements under, the right, the government, municipality or body, as the case may be, shall be deemed to have made an exempt supply to the person and the amount shall be deemed to be consideration for that supply.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1993, c. 27, s. 53
Foreign Conventions

Marginal note:Foreign conventions

 Where a sponsor of a foreign convention

  • (a) makes a supply of an admission to the convention,

  • (b) makes a supply by way of lease, licence or similar arrangement of real property for use by the recipient of the supply exclusively as the site for the promotion, at the convention, of property or services supplied by, or a business of, the recipient, or

  • (c) makes a supply of related convention supplies to a recipient of a supply referred to in paragraph (b),

the supply shall be deemed to have been made otherwise than in the course of a commercial activity of the sponsor.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1993, c. 27, s. 53
Real Property

Marginal note:Conversion to residential use

  •  (1) Where at any time a person begins to hold or use real property as a residential complex and

    • (a) the property was

      • (i) last acquired by the person to hold or use as a residential complex, or

      • (ii) immediately before that time, held for supply, or used or held for use as capital property, in a business or commercial activity of the person,

    • (b) immediately before that time, the property was not a residential complex, and

    • (c) the person did not engage in the construction or substantial renovation of, and is not, but for this section, a builder of, the complex,

    for the purposes of this Part,

    • (d) the person shall be deemed to have substantially renovated the complex,

    • (e) the renovation shall be deemed to have begun at that time and to have been substantially completed at the earlier of the time the complex is occupied by any individual as a place of residence or lodging and the time the person transfers ownership of the complex to another person, and

    • (f) except where the person is

      • (i) a particular individual who acquires the property at that time to hold or use exclusively as a place of residence of the particular individual or another individual who is related to the particular individual or who is a former spouse or common-law partner of the particular individual, or

      • (ii) a personal trust that acquires the property at that time to hold or use exclusively as a place of residence of an individual who is a beneficiary of the trust,

    the person shall be deemed to be a builder of the complex.

  • Marginal note:Idem

    (2) Where at any time an individual appropriates real property for the personal use or enjoyment of the individual, another individual related to the individual or a former spouse or common-law partner of the individual and, immediately before that time, the property

    • (a) was held for supply, or was used or held for use as capital property, in a business or commercial activity of the individual, and

    • (b) was not a residential complex,

    the individual shall, for the purposes of this Part, be deemed

    • (c) to have made and received a taxable supply by way of sale of the property immediately before that time, and

    • (d) to have paid as a recipient and to have collected as a supplier, at that time, tax in respect of the supply, calculated on the fair market value of the property at that time.

  • Marginal note:Lease of land for residential use

    (3) Where

    • (a) a person who has an interest in land makes a supply of the land by way of lease, licence or similar arrangement and the supply is an exempt supply described by section 6.1 or paragraph 7(a) of Part I of Schedule V,

    • (b) the person at any time gives possession of the land to the recipient of the supply under the arrangement,

    • (c) the last use of the land by the person before that time was not under an arrangement for a supply referred to in paragraph (a),

    • (d) the person was not deemed under subsection 200(2), 206(4) or 207(1) to have made a supply of the land at or immediately before that time, and

    • (e) the recipient of the supply is not acquiring possession of the land for the purpose of

      • (i) constructing a residential complex thereon in the course of a commercial activity, or

      • (ii) making an exempt supply of the land described by section 6.1 of Part I of Schedule V,

    the person shall, for the purposes of this Part, be deemed

    • (f) to have made, immediately before that time, a taxable supply by way of sale of the land and to have collected, at that time, tax in respect of the supply calculated on the fair market value of the land at that time, and

    • (g) to have received, at that time, a taxable supply by way of sale of the land and to have paid, at that time, tax in respect of that supply calculated on the fair market value of the land at that time.

  • Marginal note:First use of residential trailer park

    (4) Where

    • (a) a person makes a supply of a site in a residential trailer park of the person by way of lease, licence or similar arrangement and the supply is an exempt supply described by paragraph 7(b) of Part I of Schedule V,

    • (b) the person at any time gives possession or occupancy of the site to the recipient of the supply under the arrangement,

    • (c) none of the sites in the park were occupied immediately before that time under an arrangement for a supply referred to in paragraph (a), and

    • (d) either

      • (i) the last acquisition of the park by the person was not under an exempt supply described by section 5.3 of Part I of Schedule V and the person was not deemed

        • (A) under this subsection to have made before that time, or

        • (B) under subsection 200(2), 206(4) or 207(1) to have made at or immediately before that time

        a supply of land included in the park as a consequence of using the land for purposes of the park, or

      • (ii) the person was entitled, after the park or land was last acquired or deemed to have been supplied by the person, to claim an input tax credit in respect of the acquisition thereof or an improvement thereto,

    the person shall, for the purposes of this Part, be deemed

    • (e) to have made, immediately before that time, a taxable supply by way of sale of the park and to have collected, at that time, tax in respect of the supply calculated on the fair market value of the park at that time, and

    • (f) to have received, at that time, a taxable supply by way of sale of the park and to have paid, at that time, tax in respect of the supply calculated on the fair market value of the park at that time.

  • Marginal note:First use of additional area

    (5) Where

    • (a) a person increases the area of land included in a residential trailer park of the person,

    • (b) the person makes a supply of a site in the area of land by which the park was increased (in this subsection referred to as the “additional area”) by way of lease, licence or similar arrangement and the supply is an exempt supply described by paragraph 7(b) of Part I of Schedule V,

    • (c) the person at any time gives possession or occupancy of the site to the recipient of the supply under the arrangement,

    • (d) none of the sites in the additional area were occupied immediately before that time under an arrangement for a supply referred to in paragraph (b), and

    • (e) either

      • (i) the last acquisition of the additional area by the person was not under an exempt supply described by section 5.3 of Part I of Schedule V and the person was not deemed

        • (A) under this section to have made before that time, or

        • (B) under subsection 200(2), 206(4) or 207(1) to have made at or before that time

        a supply of the additional area as a consequence of using the additional area for purposes of the park, or

      • (ii) the person was entitled, after the additional area was last acquired or deemed to have been supplied by the person, to claim an input tax credit in respect of the acquisition thereof or an improvement thereto,

    the person shall, for the purposes of this Part, be deemed

    • (f) to have made, immediately before that time, a taxable supply by way of sale of the additional area and to have collected, at that time, tax in respect of the supply calculated on the fair market value of the additional area at that time, and

    • (g) to have received, at that time, a taxable supply by way of sale of the additional area and to have paid, at that time, tax in respect of the supply calculated on the fair market value of the additional area at that time.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, ss. 54, 204(F)
  • 1997, c. 10, s. 36
  • 2000, c. 12, s. 113
 

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