Excise Tax Act (R.S.C., 1985, c. E-15)

Marginal note:Non-registrant sale of real property

• 257 (1) If a person who is not a registrant makes a particular taxable supply of real property by way of sale, the Minister shall, subject to subsections (1.1) and (2), pay a rebate to the person equal to the lesser of

  • (a) the basic tax content of the property at the particular time, and

  • (b) the tax that is or would, in the absence of section 167 or 167.11, be payable in respect of the particular supply.

• Marginal note:Limitation

  (1.1) If the particular taxable supply referred to in subsection (1) is made at a particular time by a public sector body to another person with whom the public sector body is not dealing at arm’s length, the rebate under subsection (1) shall not exceed the lesser of

  • (a) the basic tax content of the property at the particular time, and

  • (b) the amount determined by the formula

    (A/B) × C

    where

    A

    is the basic tax content of the property at the particular time,

    B

    is the amount that would be the basic tax content of the property at that time if that amount were determined without reference to the description of B in paragraph (a) and the description of K in paragraph (b) of the definition basic tax content in subsection 123(1), and

    C

    is the tax that is or would, in the absence of section 167, be payable in respect of the particular taxable supply.

• Marginal note:Application for rebate

  (2) A rebate shall not be paid under subsection (1) to a person in respect of the supply by way of sale of real property by the person unless the person files an application for the rebate within two years after the day the consideration for the supply became due or was paid without having become due.

• Marginal note:Redemption of real property

  (3) Where

  • (a) for the purposes of satisfying in whole or in part a debt or obligation owing by a person (in this subsection referred to as the “debtor”), a creditor exercises a right under an Act of Parliament or the legislature of a province or an agreement relating to a debt security to cause the supply of real property, and

  • (b) under the Act or the agreement, the debtor has a right to redeem the property,

  the following rules apply:

  • (c) the debtor is not entitled to claim a rebate under subsection (1) with respect to the property unless the time limit for redeeming the property has expired and the debtor has not redeemed the property, and

  • (d) where the debtor is entitled to claim the rebate, consideration for the supply is deemed, for the purposes of subsection (2), to have become due on the day on which the time limit for redeeming the property expires.