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

Marginal note:Disposition of personal property

• 141.1 (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.