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

Full Document:  

Act current to 2021-02-15 and last amended on 2020-07-01. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION IXTransitional Provisions (continued)

Property and Services (continued)

Marginal note:Transportation of individuals

  •  (1) No tax is payable in respect of a supply of a service that is the transportation of an individual (other than a service to which subsection (3) applies) where the service begins before 1991.

  • Marginal note:Idem

    (2) Where any consideration for a supply of a service that is the transportation of an individual (other than a service to which subsection (3) applies) is paid after August 1990 and before 1991 without having become due or becomes due after August 1990 and before 1991, that consideration shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991.

  • Marginal note:Transportation pass before February 1991

    (2.1) No tax is payable in respect of a supply made by a person to an individual of a transportation pass that entitles the individual to transportation services during a period beginning before 1991 and ending before February 1991 without payment of consideration by the individual each time a supply of a transportation service is made to the individual.

  • Marginal note:Transportation pass

    (3) Where a supply is made by a person to an individual of a transportation pass that entitles the individual to transportation services during a period beginning before 1991 and ending after January 1991 without payment of consideration by the individual each time a supply of a transportation service is made to the individual, and consideration for the pass becomes due after August 1990 and before May 1991 or is paid after August 1990 and before May 1991 without becoming due, the part of the consideration for the pass determined by the formula

    A × (B/C)

    where

    A
    is amount of the consideration for the pass,
    B
    is the number of days in the period that are after 1990, and
    C
    is the number of days in the period,

    shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991.

  • [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. 141

Marginal note:Freight transportation services

  •  (1) Where one or more carriers make a supply of freight transportation services in respect of a continuous freight movement of tangible personal property and, before 1991, the shipper of the property transferred possession of the property to the first carrier engaged in the continuous freight movement, no tax is payable in respect of any consideration for the supply that is paid or becomes due before May 1991.

  • Marginal note:Freight transportation services after 1990

    (2) Where

    • (a) one or more carriers make a supply in Canada of freight transportation services in respect of a continuous freight movement of tangible personal property,

    • (b) the shipper of the property does not transfer possession of the property before 1991 to the first carrier engaged in the continuous freight movement, and

    • (c) consideration for the supply is paid or becomes due after August 1990 and before 1991,

    that consideration shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991.

  • Marginal note:Interpretation

    (3) For the purposes of this section, “carrier”, “continuous freight movement”, “freight transportation service” and “shipper” have the same meanings as in Part VII of Schedule VI.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12

Meaning of funeral services

  •  (1) In this section, funeral services includes the provision of a coffin, a headstone or any other property relating to the funeral, burial or cremation of an individual that is provided under an arrangement for the provision of funeral services.

  • Marginal note:Funeral arrangements entered into before September 1990

    (2) Where

    • (a) an arrangement for funeral services in respect of an individual is entered into in writing before September 1990,

    • (b) under the terms of the arrangement, the funds required to pay for the funeral services are held by a trustee who is responsible for acquiring funeral services in respect of the individual, and

    • (c) at the time the arrangement is entered into, it is reasonable to expect that all or a part of those funds will be advanced to the trustee before the individual’s death,

    no tax is payable by the trustee in respect of the supply to the trustee of funeral services under the arrangement.

  • Marginal note:Idem

    (3) Where an arrangement for funeral services in respect of an individual is entered into in writing at any time before September 1990 and, at that time, it is reasonable to expect that all or a part of the consideration for the supply of the funeral services will be paid before the individual’s death, no tax is payable in respect of any supply of funeral services under the arrangement.

  • [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. 142

Marginal note:Lifetime memberships

 Notwithstanding subsections 341(1) to (3), where a supply of a membership is made

  • (a) to an individual for the lifetime of the individual, or

  • (b) to a person other than an individual for the lifetime of an individual designated by the person,

to the extent that the total of all amounts that were paid after August 1990 and before 1991 as or on account of consideration for the supply exceeds 25% of the total consideration for the supply, the consideration shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12

Marginal note:Transitional credit for small businesses

  •  (1) Where a person (other than a listed financial institution) is, in the particular fiscal quarter that is the first fiscal quarter of the person beginning in 1991, required to be registered under subsection 240(1) and the total of all consideration that in the particular fiscal quarter became due or was paid without having become due for taxable supplies made by the person in the course of a business does not exceed $500,000,

    • (a) where the reporting period of the person is a fiscal quarter or a fiscal month, the person may deduct the specified amount of the person in determining the person’s net tax for the last reporting period of the person ending in the particular fiscal quarter, or for any subsequent reporting period of the person ending in 1991, the return under Division V for which is filed before 1993, and

    • (b) in any other case, the Minister shall pay a rebate to the person equal to the specified amount of the person,

    and, for the purposes of this subsection, where the total of all amounts each of which is the consideration that became due or that was paid without becoming due for a taxable supply made by a person in the course of a business in any three month period beginning in 1990 throughout which the person carried on business did not exceed $500,000, the total of all consideration that became due or that was paid without becoming due for taxable supplies made by the person in the course of the business in the first fiscal quarter of the person beginning in 1991 shall be deemed not to exceed $500,000.

  • Marginal note:Specified amount

    (2) For the purposes of subsection (1), the specified amount of a particular person is an amount equal to the lesser of

    • (a) the total of $300 and the lesser of

      • (i) $700, and

      • (ii) 2% of the total consideration that became due, or that was paid without becoming due, for taxable supplies made by the particular person in any fiscal quarter of the person beginning after 1989 and before April 1991 in excess of $15,000, and

    • (b) the amount by which $1,000 exceeds the total of all amounts each of which is an amount that was by reason of this section deducted by, or rebated to, a person who was associated with the particular person at the end of the first fiscal quarter of the particular person beginning after 1990.

  • Marginal note:Application for rebate

    (3) A rebate shall not be paid under paragraph (1)(b) to a person unless the person files an application for the rebate on or before the day on or before which the person is required under Division V to file a return for the first fiscal year of the person beginning after 1990.

  • Marginal note:Application of provisions

    (4) Sections 262 to 264 apply in respect of rebates paid or payable under this section as though they were paid or payable under Division VI.

  • [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. 143
 
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