Excise Tax Act

Marginal note:Election for exempt supplies

• 150 (1) For the purposes of this Part, where at any time a person who is a member of a closely related group of which a listed financial institution is a member files an election made jointly by the person and a corporation that is also a member of the group at that time, every supply between the person and the corporation of property by way of lease, licence or similar arrangement or of a service that is made at a time when the election is in effect and that would, but for this subsection, be a taxable supply is deemed to be a supply of a financial service.

• Marginal note:Exception

  (2) Subsection (1) does not apply to an imported taxable supply (within the meaning assigned by section 217) or to property held or services rendered by a member of a closely related group as a participant in a joint venture with another person at a time when an election under section 273 between the member and the other person is in effect.

• Marginal note:Form and manner of filing

  (3) An election under subsection (1) relating to supplies between a member of a closely related group and a corporation shall

  • (a) be made in prescribed form containing prescribed information;

  • (b) specify the day the election is to become effective; and

  • (c) be filed by the member with the Minister in prescribed manner on or before the day on or before which a return under Division V for the reporting period of the member in which the election is to become effective is required to be filed.

• Marginal note:Effect of election

  (4) An election under subsection (1) shall be effective for the period beginning on the day specified in the election and ending on the earliest of

  • (a) the day either member ceases to be a member of the closely related group,

  • (b) the first day the closely related group does not include a listed financial institution (other than a person that is a financial institution only by reason of section 151), and

  • (c) a day that the members specify in a notice of revocation in prescribed form containing prescribed information filed jointly by the members with the Minister in prescribed manner, which day is at least three hundred and sixty-five days after the day specified in the election.

• Marginal note:Subsequent elections

  (5) Where an election made under subsection (1) jointly by a member of a closely related group and a corporation ceases to be effective, the member and the corporation shall not thereafter make an election jointly under subsection (1) without the written concurrence of the Minister.

• Marginal note:Credit unions deemed to have elected

  (6) For the purposes of this Part,

  • (a) every credit union shall be deemed to be at all times a member of a closely related group of which every other credit union is a member;

  • (b) every credit union shall be deemed to have made an election under subsection (1) with every other credit union that is in effect at all times; and

  • (c) every supply of tangible personal property by a credit union, other than a capital property of the credit union, to another credit union shall be deemed to be a supply of a financial service.

  • (d) [Repealed, 1993, c. 27, s. 25]

• Marginal note:Mutual insurance group — deemed election

  (7) For the purposes of this Part, every member of a mutual insurance group shall be deemed

  • (a) to be at all times a member of a closely related group of which every other member of the mutual insurance group is a member; and

  • (b) to have made, with every other member of the group, an election under subsection (1) that is in effect at all times.