Select Luxury Items Tax Act (S.C. 2022, c. 10, s. 135)

Marginal note:Sale — subject item

• 7 (1) For the purposes of this Act, a vendor sells a subject item to a purchaser if

  • (a) the vendor transfers ownership of the subject item to the purchaser by way of sale under an agreement; and

  • (b) the subject item is delivered or made available in Canada in relation to the agreement.

• Marginal note:Partial ownership

  (2) For the purposes of this Act, a particular person transfers ownership of a subject item to another person even if, at the time ownership is transferred to the other person, the particular person retains partial ownership or transfers partial ownership to any third person.

• Marginal note:Security interest — not a sale

  (3) For the purposes of this Act and despite subsection (1), if, under an agreement entered into in respect of a debt or obligation, a person transfers a subject item or an interest in a subject item for the purpose of securing payment of the debt or performance of the obligation, the transfer is deemed not to be a sale of the subject item and the transferee is deemed not to be an owner of the subject item only because of the transfer, and if, on payment of the debt or performance of the obligation or the forgiveness of the debt or obligation, the subject item or interest is retransferred, the retransfer of the subject item or interest is deemed not to be a sale of a subject item.

• Marginal note:When sale completed

  (4) Subject to subsection (5), for the purposes of this Act, the sale of a subject item to a purchaser is completed at the earlier of

  • (a) the time at which possession of the subject item is transferred to the purchaser or to another person, and

  • (b) the time at which ownership of the subject item is transferred to the purchaser.

• Marginal note:When sale completed — regulations

  (5) For the purposes of this Act, if prescribed conditions are met in respect of the sale of a subject item to a purchaser, the sale is completed at the prescribed time.

• Marginal note:Deemed sale

  (6) For the purposes of this Act, except if prescribed circumstances exist, if ownership of a subject item is transferred in any manner otherwise than by way of sale from a particular person to another person and if the subject item is delivered or made available in Canada, the following rules apply:

  • (a) the particular person is deemed to sell the subject item to the other person;

  • (b) the particular person is deemed to be the vendor in respect of the sale and the other person is deemed to be the purchaser in respect of the sale;

  • (c) the sale is deemed to be completed at the earlier of the time at which the possession of the subject item is transferred and the time at which ownership of the subject item is transferred; and

  • (d) the value of the consideration paid for the sale of the subject item is deemed to be equal to the total of

    • (i) the retail value of the subject item at the time at which the sale is completed as determined under paragraph (c), and

    • (ii) a prescribed amount.