Excise Tax Act

Marginal note:Tax in participating province

• 220.05 (1) Subject to this Part, where at a particular time a person brings tangible personal property into a particular participating province from a non-participating province, the person shall pay tax to Her Majesty in right of Canada equal to the amount determined by the formula

  A × B

  where

  A

  is the tax rate for the particular participating province; and

  B

  is

  • (a) where the property is a specified motor vehicle that the person is required to register under the laws of the participating province relating to the registration of motor vehicles, the prescribed value,

  • (b) where the property is not a specified motor vehicle referred to in paragraph (a) and consideration was paid or payable in respect of a supply of the property made by way of sale at any time to the person by another person with whom the person dealt at arm’s length, the lesser of the value of that consideration and the fair market value of the property at the particular time,

  • (c) notwithstanding paragraphs (a) and (b), in the case of prescribed property brought into a province in prescribed circumstances, the value determined in the prescribed manner, and

  • (d) in any other case, the fair market value of the property at the particular time.

• Marginal note:When tax payable

  (2) Tax under subsection (1) on property brought into a participating province by a person becomes payable

  • (a) in the case of a specified motor vehicle that the person is required to register under the laws of the province relating to the registration of motor vehicles, on the earlier of the day the person so registers the vehicle and the day on or before which the person is required to register the vehicle; and

  • (b) in any other case, on the day the property is brought into the province.

• Marginal note:Non-taxable property

  (3) No tax is payable under subsection (1) in respect of property where

  • (a) the recipient of the supply of the property has paid tax under section 220.06 in respect of the property;

  • (b) tax under section 220.07 has been paid in respect of the property; or

  • (c) the property is included in Part I of Schedule X.

• Marginal note:Application in offshore areas

  (4) Subsection (1) does not apply to property brought into the Nova Scotia offshore area or the Newfoundland offshore area by a person unless the property is brought into the area for consumption, use or supply in the course of an offshore activity.