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

Full Document:  

Act current to 2019-08-28 and last amended on 2019-08-28. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION IVTax on Imported Taxable Supplies (continued)

Marginal note:When tax payable

 Tax under this Division (other than tax under section 218.01 or subsection 218.1(1.2)) that is calculated on an amount of consideration for a supply that becomes due at any time, or is paid at any time without having become due, becomes payable at that time.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1997, c. 10, s. 203
  • 2010, c. 12, s. 65

Marginal note:When tax payable

 Tax under section 218.01 and subsection 218.1(1.2) that is determined for a specified year of a qualifying taxpayer becomes payable by the qualifying taxpayer on

  • (a) if the specified year is a taxation year of the qualifying taxpayer for the purposes of the Income Tax Act and the qualifying taxpayer is required under Division I of that Act to file a return of income for the specified year, the filing-due date for the specified year for the purposes of that Act; and

  • (b) in any other case, the day that is six months after the end of the specified year.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2010, c. 12, s. 65

Marginal note:Filing of returns and payment of tax

 Where tax under this Division is payable by a person,

  • (a) if the person is a registrant, the person shall, on or before the day on or before which the person’s return under section 238 for the reporting period in which the tax became payable is required to be filed, pay the tax to the Receiver General and

    • (i) if the person is not a qualifying taxpayer, report the tax in that return, or

    • (ii) if the person is a qualifying taxpayer, file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information; and

  • (b) in any other case, the person shall, on or before the last day of the month following the calendar month in which the tax became payable, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1997, c. 10, s. 43
  • 2010, c. 12, s. 66

Marginal note:Definitions

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

    intangible capital

    intangible capital of a specified person means any of the following that is consumed or used by the specified person in the process of creating, developing or bringing into existence intangible personal property:

    • (a) all or part of a labour activity of the specified person;

    • (b) all or part of property (other than intangible personal property described in paragraph (a) of the definition intangible resource); or

    • (c) all or part of a service. (capital incorporel)

    intangible resource

    intangible resource of a specified person means

    • (a) all or part of intangible personal property supplied to, or created, developed or brought into existence by, the specified person that is not support capital of the specified person;

    • (b) intangible capital of the specified person; or

    • (c) any combination of the items referred to in paragraphs (a) and (b). (ressource incorporelle)

    labour activity

    labour activity of a specified person means anything done by an employee of the specified person in the course of, or in relation to, the office or employment of the employee. (activité de main-d’oeuvre)

    support capital

    support capital of a specified person means all or part of intangible personal property that is consumed or used by the specified person in the process of creating, developing or bringing into existence property (other than intangible personal property) or in supporting, assisting or furthering a labour activity of the specified person. (capital d’appui)

    support resource

    support resource of a specified person means

    • (a) all or part of property (other than intangible personal property) supplied to, or created, developed or brought into existence by, the specified person that is not intangible capital of the specified person;

    • (b) all or part of a service supplied to the specified person that is not intangible capital of the specified person;

    • (c) all or part of a labour activity of the specified person that is not intangible capital of the specified person;

    • (d) support capital of the specified person; or

    • (e) any combination of the items referred to in paragraphs (a) to (d). (ressource d’appui)

  • Marginal note:Specified person and specified business

    (2) For the purposes of this section,

    • (a) a person (other than a financial institution) is a specified person throughout a taxation year of the person if the person

      • (i) carries on, at any time in the taxation year, a business through a permanent establishment of the person outside Canada, and

      • (ii) carries on, at any time in the taxation year, a business through a permanent establishment of the person in Canada; and

    • (b) a business of a person is a specified business of the person throughout a taxation year of the person if the business is carried on, at any time in the taxation year, in Canada through a permanent establishment of the person.

  • Marginal note:Internal use

    (3) For the purposes of this section, internal use of a support resource, or of an intangible resource, of a specified person occurs during a taxation year of the specified person if

    • (a) the specified person at any time in the taxation year uses outside Canada any part of the resource in relation to the carrying on of a specified business of the specified person; or

    • (b) the specified person is permitted under the Income Tax Act, or would be so permitted if that Act applied to the specified person, to allocate for the taxation year, as an amount in respect of a specified business of the specified person,

      • (i) any part of an outlay made, or expense incurred, by the specified person in respect of any part of the resource, or

      • (ii) any part of an allowance, or allocation for a reserve, in respect of any part of such an outlay or expense.

  • Marginal note:Dealings between permanent establishments

    (4) If internal use of a support resource of a specified person occurs during a taxation year of the specified person, the following rules apply:

    • (a) for the purposes of this Division, the specified person is deemed

      • (i) to have rendered, during the taxation year, a service of internally using the support resource at a permanent establishment of the specified person outside Canada in the course of carrying on a specified business of the specified person, and to be the person to which the service was rendered,

      • (ii) to be the recipient of a supply made outside Canada of the service, and

      • (iii) to be, in the case of a non-resident specified person, resident in Canada;

    • (b) for the purposes of this Division, the supply is deemed not to be a supply of a service that is in respect of

      • (i) real property situated outside Canada, or

      • (ii) tangible personal property that is situated outside Canada at the time the service is performed;

    • (c) for the purposes of this Division, the value of the consideration for the supply is deemed to be the total of all amounts, each of which is the fair market value of a part, or of the use of a part, as the case may be, of the support resource referred to in subsection (3)

      • (i) if the part is only referred to in paragraph (3)(a), at the time referred to in that paragraph, and

      • (ii) otherwise, on the last day of the taxation year;

    • (d) for the purposes of this Division, the consideration for the supply is deemed to have become due and to have been paid, on the last day of the taxation year, by the specified person; and

    • (e) for the purposes of section 217 and of determining an input tax credit of the specified person under this Part, the specified person is deemed to have acquired the service for the same purpose as that for which the part of the support resource referred to in subsection (3) was acquired, consumed or used by the specified person.

  • Marginal note:Dealings between permanent establishments

    (5) If internal use of an intangible resource of a specified person occurs during a taxation year of the specified person, the following rules apply:

    • (a) for the purposes of this Division, the specified person is deemed

      • (i) to have made available, during the taxation year, at a permanent establishment of the specified person outside Canada intangible personal property in the course of carrying on a specified business of the specified person and to be the person to which the property was made available,

      • (ii) to be the recipient of a supply made outside Canada of the property, and

      • (iii) to be, in the case of a non-resident specified person, resident in Canada;

    • (b) for the purposes of this Division, the supply is deemed not to be a supply of property that relates to real property situated outside Canada, to a service to be performed wholly outside Canada or to tangible personal property situated outside Canada;

    • (c) for the purposes of this Division, the value of the consideration for the supply is deemed to be the total of all amounts, each of which is the fair market value of a part, or of the use of a part, as the case may be, of the intangible resource referred to in subsection (3)

      • (i) if the part is only referred to in paragraph (3)(a), at the time referred to in that paragraph, and

      • (ii) otherwise, on the last day of the taxation year;

    • (d) for the purposes of this Division, the consideration for the supply is deemed to have become due and to have been paid, on the last day of the taxation year, by the specified person; and

    • (e) for the purposes section 217 and of determining an input tax credit of the specified person under this Part, the specified person is deemed to have acquired the property for the same purpose as that for which the part of the intangible resource referred to in subsection (3) was acquired, consumed or used by the specified person.

  • [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. 84
  • 2010, c. 12, s. 67
 
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