Excise Tax Act

Marginal note:Value of passenger vehicle

201 For the purpose of determining an input tax credit of a registrant in respect of a passenger vehicle that the registrant at a particular time acquires, imports or brings into a participating province for use as capital property in commercial activities of the registrant, the tax payable by the registrant in respect of the acquisition, importation or bringing in, as the case may be, of the vehicle is deemed to be the lesser of

• (a) the tax that was payable by the registrant in respect of the acquisition, importation or bringing in, as the case may be, of the vehicle; and

• (b) the amount determined by the formula

  (A × B) - C

  where

  A

  is the tax that would be payable by the registrant in respect of the vehicle if the registrant acquired the vehicle at the particular time

  • (i) where the registrant is bringing the vehicle into a participating province at the particular time, in that province, and

  • (ii) in any other case, in Canada

  for consideration equal to the amount that would, under whichever of paragraphs 13(7)(g) to (i) of the Income Tax Act is applicable in respect of the vehicle, be deemed to be, for the purposes of section 13 of that Act, the capital cost to a taxpayer of a passenger vehicle in respect of which that paragraph applies if the formulae in paragraph 7307(1)(b) and subsection 7307(1.1) of the Income Tax Regulations were read without reference to the description of B,

  B

  is

  • (i) if the registrant is deemed under subsection 199(3) or 206(2) or (3) to have acquired the vehicle or a portion of it at the particular time, or the registrant is bringing the vehicle into a participating province at the particular time, and the registrant was previously entitled to claim a rebate under section 259 in respect of the vehicle or any improvement to it, the difference between 100% and the specified percentage (within the meaning of that section) that applied in determining the amount of that rebate, and

  • (ii) in any other case, 100%; and

  C

  is

  • (i) where the registrant is bringing the vehicle into a participating province at the particular time, the total of all input tax credits that the registrant was entitled to claim in respect of the last acquisition or importation of the vehicle by the registrant or in respect of any improvement to it acquired or imported by the registrant after the vehicle was last so acquired or imported, and

  • (ii) in any other case, zero.