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

Full Document:  

Act current to 2021-01-10 and last amended on 2020-07-01. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION IIGoods and Services Tax (continued)

SUBDIVISION CSpecial Cases (continued)

Marginal note:Construction of mobile or floating home

  •  (1) For the purposes of this Part, any person who makes a supply of a mobile home or a floating home before it has been used or occupied by any individual as a place of residence or lodging shall be deemed to have engaged in the construction of the home and to have substantially completed the construction at the earlier of the time ownership of the home is transferred to the recipient of the supply and the time possession of the home is transferred to the recipient under the agreement for the supply.

  • Marginal note:Substantial renovation of mobile or floating home

    (2) For the purposes of this Part, where a person engages in the substantial renovation of a mobile home or a floating home, the home shall be deemed not to have been used or occupied, at any time before the person began to substantially renovate the home, by any individual as a place of residence or lodging.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1993, c. 27, s. 55

Marginal note:Self-supply of single unit residential complex or residential condominium unit

  •  (1) For the purposes of this Part, where

    • (a) the construction or substantial renovation of a residential complex that is a single unit residential complex or a residential condominium unit is substantially completed,

    • (b) the builder of the complex

      • (i) gives possession or use of the complex to a particular person under a lease, licence or similar arrangement (other than an arrangement, under or arising as a consequence of an agreement of purchase and sale of the complex, for the possession or occupancy of the complex until ownership of the complex is transferred to the purchaser under the agreement) entered into for the purpose of its occupancy by an individual as a place of residence,

      • (ii) gives possession or use of the complex to a particular person under an agreement for

        • (A) the supply by way of sale of the building or part thereof in which the residential unit forming part of the complex is located, and

        • (B) the supply by way of lease of the land forming part of the complex or the supply of such a lease by way of assignment,

        other than an agreement for the supply of a mobile home and a site for the home in a residential trailer park, or

      • (iii) where the builder is an individual, occupies the complex as a place of residence, and

    • (c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of the complex with the particular person, is the first individual to occupy the complex as a place of residence after substantial completion of the construction or renovation,

    the builder shall be deemed

    • (d) to have made and received, at the later of the time the construction or substantial renovation is substantially completed and the time possession or use of the complex is so given to the particular person or the complex is so occupied by the builder, a taxable supply by way of sale of the complex, and

    • (e) to have paid as a recipient and to have collected as a supplier, at the later of those times, tax in respect of the supply calculated on the fair market value of the complex at the later of those times.

  • Marginal note:Self-supply of residential condominium unit

    (2) For the purposes of this Part, where

    • (a) the construction or substantial renovation of a residential condominium unit is substantially completed,

    • (b) the builder of the unit gives possession of the unit to a particular person who is the purchaser under an agreement of purchase and sale of the unit at a time when the condominium complex in which the unit is situated is not registered as a condominium,

    • (c) the particular person or an individual who is a tenant or licensee of the particular person is the first individual to occupy the unit as a place of residence after substantial completion of the construction or renovation, and

    • (d) the agreement of purchase and sale is at any time terminated (otherwise than by performance of the agreement) and another agreement of purchase and sale of the unit between the builder and the particular person is not entered into at that time,

    the builder shall be deemed

    • (e) to have made and received, at the time the agreement is terminated, a taxable supply by way of sale of the unit, and

    • (f) except where possession of the unit was transferred to the particular person before 1991, 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 unit at that time.

  • Marginal note:Self-supply of multiple unit residential complex

    (3) For the purposes of this Part, where

    • (a) the construction or substantial renovation of a multiple unit residential complex is substantially completed,

    • (b) the builder of the complex

      • (i) gives, to a particular person who is not a purchaser under an agreement of purchase and sale of the complex, possession or use of any residential unit in the complex under a lease, licence or similar arrangement entered into for the purpose of the occupancy of the unit by an individual as a place of residence,

      • (i.1) gives possession or use of any residential unit in the complex to a particular person under an agreement for

        • (A) the supply by way of sale of the building or part thereof forming part of the complex, and

        • (B) the supply by way of lease of the land forming part of the complex or the supply of such a lease by way of assignment, or

      • (ii) where the builder is an individual, occupies any residential unit in the complex as a place of residence, and

    • (c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of a residential unit in the complex with the particular person, is the first individual to occupy a residential unit in the complex as a place of residence after substantial completion of the construction or renovation,

    the builder shall be deemed

    • (d) to have made and received, at the later of the time the construction or substantial renovation is substantially completed and the time possession or use of the unit is so given to the particular person or the unit is so occupied by the builder, a taxable supply by way of sale of the complex, and

    • (e) to have paid as a recipient and to have collected as a supplier, at the later of those times, tax in respect of the supply calculated on the fair market value of the complex at the later of those times.

  • Marginal note:Self-supply of addition to multiple unit residential complex

    (4) For the purposes of this Part, where

    • (a) the construction of an addition to a multiple unit residential complex is substantially completed,

    • (b) the builder of the addition

      • (i) gives, to a particular person who is not a purchaser under an agreement of purchase and sale of the complex, possession or use of any residential unit in the addition under a lease, licence or similar arrangement entered into for the purpose of the occupancy of the unit by an individual as a place of residence,

      • (i.1) gives possession or use of any residential unit in the addition to a particular person under an agreement for

        • (A) the supply by way of sale of the building or part thereof forming part of the complex, and

        • (B) the supply by way of lease of the land forming part of the complex or the supply of such a lease by way of assignment, or

      • (ii) where the builder is an individual, occupies any residential unit in the addition as a place of residence, and

    • (c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of a residential unit in the addition with the particular person, is the first individual to occupy a residential unit in the addition as a place of residence after substantial completion of the construction of the addition,

    the builder shall be deemed

    • (d) to have made and received, at the later of the time the construction of the addition is substantially completed and the time possession or use of the unit is so given to the particular person or the unit is so occupied by the builder, a taxable supply by way of sale of the addition, and

    • (e) to have paid as a recipient and to have collected as a supplier, at the later of those times, tax in respect of the supply calculated on the fair market value of the addition at the later of those times.

  • Marginal note:Reference to lease

    (4.1) A reference in this section to a “lease” in respect of land shall be read as a reference to a “lease, licence or similar arrangement”.

  • Marginal note:Exception for personal use

    (5) Subsections (1) to (4) do not apply to a builder of a residential complex or an addition to a residential complex where

    • (a) the builder is an individual;

    • (b) at any time after the construction or renovation of the complex or addition is substantially completed, the complex is used primarily as a place of residence for the individual, an individual related to the individual or a former spouse or common-law partner of the individual;

    • (c) the complex is not used primarily for any other purpose between the time the construction or renovation is substantially completed and that time; and

    • (d) the individual has not claimed an input tax credit in respect of the acquisition of or an improvement to the complex.

  • Marginal note:Exception for student residence

    (6) Subsections (1) to (4) do not apply to a builder of a residential complex or an addition to a residential complex where

    • (a) the builder is a university, public college or school authority; and

    • (b) the construction or renovation of the complex or addition is carried out, or the complex is acquired, primarily for the purpose of providing a place of residence for students attending the university or college or a school of the school authority.

  • Marginal note:Exception for communal organizations

    (6.1) Subsections (1) to (4) do not apply to a builder of a residential complex or an addition to a residential complex where

    • (a) the builder is a community, society or body of individuals to which section 143 of the Income Tax Act applies; and

    • (b) the construction or substantial renovation of the complex or addition is carried out exclusively for the purpose of providing a place of residence for members of the community, society or body.

  • Marginal note:Remote work site

    (7) For the purposes of this Part, where

    • (a) the builder of a residential complex or an addition to a residential complex is a registrant,

    • (b) the construction or substantial renovation of the complex or addition is carried out, or the complex is acquired, for the purpose of providing a place of residence or lodging for an individual at a location

      • (i) at which the individual is required to be in the performance of the individual’s duties as

        • (A) an employee of the registrant,

        • (B) a contractor, or an employee of the contractor, engaged by the registrant to render services to the registrant at that location, or

        • (C) a subcontractor, or an employee of the subcontractor, engaged by a contractor referred to in clause (B) to render services at that location that are acquired by the contractor for the purpose of supplying services to the registrant, and

      • (ii) at which, because of its remoteness from any established community, the individual could not reasonably be expected to establish and maintain a self-contained domestic establishment, and

    • (c) the registrant makes, under this subsection, an election in prescribed form containing prescribed information in respect of the complex or addition,

    until the complex is supplied by way of sale, or is supplied by way of lease, licence or similar arrangement primarily to persons who are not employees, contractors or subcontractors referred to in subparagraph (b)(i) who are acquiring the complex or residential units therein in the circumstances described in that subparagraph or individuals who are related to such employees, contractors or subcontractors, the supply of the complex or a residential unit in the complex as a place of residence or lodging is deemed not be a supply and any occupation of the complex or unit as a place of residence or lodging is deemed not to be occupation as a place of residence or lodging.

  • (8) [Repealed, 1993, c. 27, s. 56]

  • Marginal note:Substantial completion

    (9) For the purposes of this section, the construction or substantial renovation of a multiple unit residential complex or a condominium complex, or the construction of an addition to a multiple unit residential complex, shall be deemed to be substantially completed not later than the day all or substantially all of the residential units in the complex or addition are occupied after the construction or substantial renovation is begun.

  • Marginal note:Transfer of possession attributed to builder

    (10) For the purposes of this section, if

    • (a) a builder of a residential complex or an addition to a multiple unit residential complex makes a supply of the complex or a residential unit in the complex or addition by way of lease, licence or similar arrangement and the supply is an exempt supply included in section 6.1 or 6.11 of Part I of Schedule V,

    • (b) the recipient of the supply is acquiring the complex or unit for use or supply in the course of making exempt supplies and, as part of an exempt supply, possession or use of the complex, unit or residential units in the complex is given by the recipient under a lease, licence or similar arrangement under which occupancy of the complex or unit is given to an individual as a place of residence or lodging, and

    • (c) the builder at any time gives possession of the complex or unit to the recipient under the arrangement,

    the builder shall be deemed to have at that time given possession of the complex or unit to an individual under a lease, licence or similar arrangement entered into for the purpose of its occupancy by an individual as a place of residence.

  • [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. 56, 204(F)
  • 1997, c. 10, s. 37
  • 2000, c. 12, s. 113, c. 30, s. 40
  • 2008, c. 28, s. 73
 
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