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Excise Tax Act

Version of section 240 from 2007-06-22 to 2012-12-13:


Marginal note:Registration required

  •  (1) Every person who makes a taxable supply in Canada in the course of a commercial activity engaged in by the person in Canada is required to be registered for the purposes of this Part, except where

    • (a) the person is a small supplier;

    • (b) the only commercial activity of the person is the making of supplies of real property by way of sale otherwise than in the course of a business; or

    • (c) the person is a non-resident person who does not carry on any business in Canada.

  • Marginal note:Taxi business

    (1.1) Notwithstanding subsection (1), every small supplier who carries on a taxi business is required to be registered for the purposes of this Part in respect of that business.

  • Marginal note:Non-resident performers, etc.

    (2) Every person who enters Canada for the purpose of making taxable supplies of admissions in respect of a place of amusement, a seminar, an activity or an event is required to be registered for the purposes of this Part and shall, before making any such supply, apply to the Minister for registration.

  • Marginal note:Application

    (2.1) A person required under subsection (1) or (1.1) to be registered shall apply to the Minister for registration before the day that is thirty days after

    • (a) in the case of a person required under subsection (1.1) to be registered in respect of a taxi business, the day the person first makes a taxable supply in Canada in the course of that business; and

    • (b) in any other case, the day the person first makes a taxable supply in Canada, otherwise than as a small supplier, in the course of a commercial activity engaged in by the person in Canada.

  • Marginal note:Registration permitted

    (3) An application for registration for the purposes of this Part may be made to the Minister by any person who is not required under subsection (1), (1.1), (2) or (4) to be registered and who

    • (a) is engaged in a commercial activity in Canada;

    • (b) is a non-resident person who in the ordinary course of carrying on business outside Canada

      • (i) regularly solicits orders for the supply by the person of tangible personal property for export to, or delivery in, Canada, or

      • (ii) has entered into an agreement for the supply by the person of

        • (A) services to be performed in Canada, or

        • (B) intangible personal property to be used in Canada or that relates to

          • (I) real property situated in Canada,

          • (II) tangible personal property ordinarily situated in Canada, or

          • (III) services to be performed in Canada;

    • (c) is a listed financial institution resident in Canada;

    • (d) is a particular corporation resident in Canada

      • (i) that owns shares of the capital stock of, or holds indebtedness of, any other corporation that is related to the particular corporation, or

      • (ii) that is acquiring, or proposes to acquire, all or substantially all of the issued and outstanding shares of the capital stock of another corporation, having full voting rights under all circumstances,

      where all or substantially all of the property of the other corporation is, for the purposes of section 186, property that was last acquired or imported by the other corporation for consumption, use or supply exclusively in the course of its commercial activities;

    • (e) is the recipient of a qualifying supply (as defined in subsection 167.11(1)), or of a supply that would be a qualifying supply if the recipient were a registrant, and the recipient files an election referred to in subsection 167.11(2) with the Minister in respect of the qualifying supply before the particular day that is referred to in paragraph 167.11(7)(a); or

    • (f) a corporation that would be a temporary member, as defined in subsection 156(1), in the absence of paragraph (a) of that definition.

  • Marginal note:Extended registration permitted for taxi business

    (3.1) Where a person who is a small supplier carrying on a taxi business files with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to have the registration of the person apply in respect of all commercial activities engaged in by the person in Canada, the Minister may approve the request and shall thereupon notify the person in writing of the date from which the registration so applies.

  • Marginal note:Suppliers of prescribed property

    (4) Every person (other than a small supplier), whether or not resident in Canada, who, in Canada, whether through an employee or agent or by means of advertising directed at the Canadian market, solicits orders for the supply by the person of, or offers to supply, property that is prescribed property for the purposes of section 143.1 and that is to be sent by mail or courier to the recipient at an address in Canada

    • (a) shall be deemed, for the purposes of this Part, to be carrying on business in Canada; and

    • (b) is required to be registered for the purposes of this Part.

  • Marginal note:Form and contents of application

    (5) An application for registration shall be made in prescribed form containing prescribed information and shall be filed with the Minister in prescribed manner.

  • Marginal note:Security

    (6) Every person who

    • (a) is not resident in Canada or would not, but for subsection 132(2), be resident in Canada,

    • (b) does not have a permanent establishment in Canada or would not, but for paragraph (b) of the definition permanent establishment in subsection 123(1), have such an establishment, and

    • (c) applies or is required to be registered for the purposes of this Part

    shall give and thereafter maintain security, in an amount and a form satisfactory to the Minister, that the person will pay or remit all amounts payable or remittable by the person under this Part.

  • Marginal note:Failure to comply

    (7) Where, at any time, a person referred to in subsection (6) fails to give or maintain, as required under that subsection, security in an amount satisfactory to the Minister, the Minister may retain as security, out of any amount that may be or may become payable under this Part to the person, an amount not exceeding the amount by which

    • (a) the amount of security that would, at that time, be satisfactory to the Minister if it were given by the person in accordance with that subsection

    exceeds

    • (b) the amount of security, if any, given and maintained by the person in accordance with that subsection,

    and the amount so retained is deemed

    • (c) to have been paid, at that time, by the Minister to the person, and

    • (d) to have been given, immediately after that time, by the person as security in accordance with subsection (6).

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 100
  • 1997, c. 10, ss. 54, 218
  • 2007, c. 18, s. 33
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