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

Full Document:  

Act current to 2020-07-28 and last amended on 2020-07-01. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION IInterpretation (continued)

Supplies and Commercial Activities (continued)

Marginal note:Disposition of personal property

  •  (1) For the purposes of this Part,

    • (a) where a person makes a supply (other than an exempt supply) of personal property that

      • (i) was last acquired or imported by the person, or was brought into a participating province by the person after it was last acquired or imported by the person, for consumption or use in the course of commercial activities of the person or was consumed or used by the person in the course of a commercial activity of the person after it was last acquired or imported by the person, or

      • (ii) was manufactured or produced by the person in the course of a commercial activity of the person or for consumption or use in the course of a commercial activity of the person, or was manufactured or produced by the person and consumed or used in the course of a commercial activity of the person, and was not deemed under this Part to have been acquired by the person,

      the person shall be deemed to have made the supply in the course of the commercial activity; and

    • (b) where a person makes a supply (other than a supply made by way of lease, licence or similar arrangement in the course of a business of the person) of personal property that

      • (i) was last acquired or imported by the person exclusively for consumption or use in the course of activities of the person that are not commercial activities, was not brought into a participating province for consumption or use in the course of commercial activities of the person after it was last acquired or imported by the person and was not consumed or used by the person in the course of commercial activities of the person after it was last acquired or imported by the person, or

      • (ii) was manufactured or produced by the person in the course of activities of the person that are not commercial activities exclusively for consumption or use in the course of activities of the person that are not commercial activities, was not brought into a participating province for consumption or use in the course of commercial activities of the person and was not consumed or used in the course of a commercial activity of the person and was not deemed under this Part to have been acquired by the person,

      the person shall be deemed to have made the supply otherwise than in the course of commercial activities.

  • Marginal note:Disposition of inventory, etc.

    (2) For the purposes of this Part,

    • (a) where a person makes a particular supply by way of sale of personal property or a service that was acquired, imported, brought into a participating province, manufactured or produced by the person exclusively for the purpose of making a supply of that property or service by way of sale in the course of a business of the person or in the course of an adventure or concern of the person in the nature of trade, except where

      • (i) the particular supply is an exempt supply,

      • (ii) paragraph (b) applies in respect of the particular supply, or

      • (iii) the person is an individual or a partnership, all of the members of which are individuals, who carries on the business or engages in the adventure or concern without a reasonable expectation of profit,

      the person shall be deemed to have made the particular supply in the course of commercial activities of the person; and

    • (b) where a person makes a supply by way of sale of personal property or a service that was acquired, imported, manufactured or produced by the person exclusively for the purpose of making an exempt supply of the property or service by way of sale, the person shall be deemed to have made the supply otherwise than in the course of commercial activities.

  • Marginal note:Acquisition, etc., of activities

    (3) For the purposes of this Part,

    • (a) to the extent that a person does anything (other than make a supply) in connection with the acquisition, establishment, disposition or termination of a commercial activity of the person, the person shall be deemed to have done that thing in the course of commercial activities of the person; and

    • (b) to the extent that a person does anything (other than make a supply) in connection with the acquisition, establishment, disposition or termination of an activity of the person that is not a commercial activity, the person shall be deemed to have done that thing otherwise than in the course of commercial activities.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1993, c. 27, s. 18
  • 1997, c. 10, s. 157

Marginal note:Sale of personal property of a municipality

  •  (1) Despite section 141.1, for the purposes of this Part, a supply (other than an exempt supply) made by way of sale of personal property of a municipality is deemed to have been made in the course of its commercial activities.

  • Marginal note:Sale of personal property of a designated municipality

    (2) Despite section 141.1, for the purposes of this Part, a supply (other than an exempt supply) made by way of sale of personal property of a person designated to be a municipality for the purposes of section 259 is deemed to have been made in the course of its commercial activities if the property is designated municipal property of the person.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2004, c. 22, s. 30

Marginal note:General rule — in Canada

  •  (1) For the purposes of this Part, subject to sections 143, 144 and 179, a supply shall be deemed to be made in Canada if

    • (a) in the case of a supply by way of sale of tangible personal property, the property is, or is to be, delivered or made available in Canada to the recipient of the supply;

    • (b) in the case of a supply of tangible personal property otherwise than by way of sale, possession or use of the property is given or made available in Canada to the recipient of the supply;

    • (c) in the case of a supply of intangible personal property,

      • (i) the property may be used in whole or in part in Canada, or

      • (ii) the property relates to real property situated in Canada, to tangible personal property ordinarily situated in Canada or to a service to be performed in Canada;

    • (d) in the case of a supply of real property or of a service in relation to real property, the real property is situated in Canada;

    • (e) [Repealed, 1997, c. 10, s. 6]

    • (f) the supply is a supply of a prescribed service; or

    • (g) in the case of a supply of any other service, the service is, or is to be, performed in whole or in part in Canada.

  • Marginal note:General rule — outside Canada

    (2) For the purposes of this Part, a supply shall be deemed to be made outside Canada if

    • (a) in the case of a supply by way of sale of tangible personal property, the property is, or is to be, delivered or made available outside Canada to the recipient of the supply;

    • (b) in the case of a supply of tangible personal property otherwise than by way of sale, possession or use of the property is given or made available outside Canada to the recipient of the supply;

    • (c) in the case of a supply of intangible personal property,

      • (i) the property may not be used in Canada, or

      • (ii) the property relates to real property situated outside Canada, to tangible personal property ordinarily situated outside Canada or to a service to be performed wholly outside Canada;

    • (d) in the case of a supply of real property or a service in relation to real property, the real property is situated outside Canada;

    • (e) [Repealed, 1997, c. 10, s. 6]

    • (f) the supply is a supply of a prescribed service; or

    • (g) in the case of a supply of any other service, the service is, or is to be, performed wholly outside Canada.

  • Marginal note:Mobile and floating homes

    (3) For the purposes of this section,

    • (a) a floating home, and

    • (b) a mobile home that is not affixed to land

    shall each be deemed to be tangible personal property and not real property.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 19
  • 1997, c. 10, s. 6
 
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