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:Exceptions

  (2) Subsection (1) does not apply to

  • (a) property held or services rendered by a member of a closely related group as a participant in a joint venture with another person while an election under section 273 made jointly by the member and the other person is in effect;

  • (b) an imported taxable supply, as defined in section 217; or

  • (c) a supply of services in relation to the clearing or settlement of cheques and other payment items under the national payments system of the Canadian Payments Association if the recipient (in this paragraph referred to as the “related purchaser”) is acquiring all or part of those services for the purpose of making a supply of exempt services to

    • (i) an unrelated party, or

    • (ii) a supplier that is a member of a closely related group of which the related purchaser is a member and that acquires all or part of the exempt services for the purpose of making a supply of exempt services to an unrelated party or to a supplier described by this subparagraph.

• Marginal note:Definitions

  (2.1) The following definitions apply in subsection (2).

  exempt services

  exempt services means services prescribed by section 3 of the Financial Services (GST/HST) Regulations. (services exonérés)

  unrelated party

  unrelated party, in respect of a supply of services, means a person that is not a member of a closely related group of which the supplier is a member and that is acquiring the services for the purpose of making a supply of services in relation to the clearing or settlement of cheques and other payment items under the national payments system of the Canadian Payments Association. (tiers non lié)

• 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.