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

Marginal note:Construction of mobile or floating home

• 190.1 (1) For the purposes of this Part, any person who makes a supply of a mobile home or a floating home before it has been used or occupied by any individual as a place of residence or lodging shall be deemed to have engaged in the construction of the home and to have substantially completed the construction at the earlier of the time ownership of the home is transferred to the recipient of the supply and the time possession of the home is transferred to the recipient under the agreement for the supply.

• Marginal note:Substantial renovation of mobile or floating home

  (2) For the purposes of this Part, where a person engages in the substantial renovation of a mobile home or a floating home, the home shall be deemed not to have been used or occupied, at any time before the person began to substantially renovate the home, by any individual as a place of residence or lodging.

Marginal note:Self-supply of single unit residential complex or residential condominium unit

• 191 (1) For the purposes of this Part, where

  • (a) the construction or substantial renovation of a residential complex that is a single unit residential complex or a residential condominium unit is substantially completed,

  • (b) the builder of the complex

    • (i) gives possession or use of the complex to a particular person under a lease, licence or similar arrangement (other than an arrangement, under or arising as a consequence of an agreement of purchase and sale of the complex, for the possession or occupancy of the complex until ownership of the complex is transferred to the purchaser under the agreement) entered into for the purpose of its occupancy by an individual as a place of residence,

    • (ii) gives possession or use of the complex to a particular person under an agreement for

      • (A) the supply by way of sale of the building or part thereof in which the residential unit forming part of the complex is located, and

      • (B) the supply by way of lease of the land forming part of the complex or the supply of such a lease by way of assignment,

      other than an agreement for the supply of a mobile home and a site for the home in a residential trailer park, or

    • (iii) where the builder is an individual, occupies the complex as a place of residence, and

  • (c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of the complex with the particular person, is the first individual to occupy the complex as a place of residence after substantial completion of the construction or renovation,

  the builder shall be deemed

  • (d) to have made and received, at the later of the time the construction or substantial renovation is substantially completed and the time possession or use of the complex is so given to the particular person or the complex is so occupied by the builder, a taxable supply by way of sale of the complex, and

  • (e) to have paid as a recipient and to have collected as a supplier, at the later of those times, tax in respect of the supply calculated on the fair market value of the complex at the later of those times.

• Marginal note:Self-supply of residential condominium unit

  (2) For the purposes of this Part, where

  • (a) the construction or substantial renovation of a residential condominium unit is substantially completed,

  • (b) the builder of the unit gives possession of the unit to a particular person who is the purchaser under an agreement of purchase and sale of the unit at a time when the condominium complex in which the unit is situated is not registered as a condominium,

  • (c) the particular person or an individual who is a tenant or licensee of the particular person is the first individual to occupy the unit as a place of residence after substantial completion of the construction or renovation, and

  • (d) the agreement of purchase and sale is at any time terminated (otherwise than by performance of the agreement) and another agreement of purchase and sale of the unit between the builder and the particular person is not entered into at that time,

  the builder shall be deemed

  • (e) to have made and received, at the time the agreement is terminated, a taxable supply by way of sale of the unit, and

  • (f) except where possession of the unit was transferred to the particular person before 1991, to have paid as a recipient and to have collected as a supplier, at that time, tax in respect of the supply calculated on the fair market value of the unit at that time.

• Marginal note:Self-supply of multiple unit residential complex

  (3) For the purposes of this Part, where

  • (a) the construction or substantial renovation of a multiple unit residential complex is substantially completed,

  • (b) the builder of the complex

    • (i) gives, to a particular person who is not a purchaser under an agreement of purchase and sale of the complex, possession or use of any residential unit in the complex under a lease, licence or similar arrangement entered into for the purpose of the occupancy of the unit by an individual as a place of residence,

    • (i.1) gives possession or use of any residential unit in the complex to a particular person under an agreement for

      • (A) the supply by way of sale of the building or part thereof forming part of the complex, and

      • (B) the supply by way of lease of the land forming part of the complex or the supply of such a lease by way of assignment, or

    • (ii) where the builder is an individual, occupies any residential unit in the complex as a place of residence, and

  • (c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of a residential unit in the complex with the particular person, is the first individual to occupy a residential unit in the complex as a place of residence after substantial completion of the construction or renovation,

  the builder shall be deemed

  • (d) to have made and received, at the later of the time the construction or substantial renovation is substantially completed and the time possession or use of the unit is so given to the particular person or the unit is so occupied by the builder, a taxable supply by way of sale of the complex, and

  • (e) to have paid as a recipient and to have collected as a supplier, at the later of those times, tax in respect of the supply calculated on the fair market value of the complex at the later of those times.

• Marginal note:Self-supply of addition to multiple unit residential complex

  (4) For the purposes of this Part, where

  • (a) the construction of an addition to a multiple unit residential complex is substantially completed,

  • (b) the builder of the addition

    • (i) gives, to a particular person who is not a purchaser under an agreement of purchase and sale of the complex, possession or use of any residential unit in the addition under a lease, licence or similar arrangement entered into for the purpose of the occupancy of the unit by an individual as a place of residence,

    • (i.1) gives possession or use of any residential unit in the addition to a particular person under an agreement for

      • (A) the supply by way of sale of the building or part thereof forming part of the complex, and

      • (B) the supply by way of lease of the land forming part of the complex or the supply of such a lease by way of assignment, or

    • (ii) where the builder is an individual, occupies any residential unit in the addition as a place of residence, and

  • (c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of a residential unit in the addition with the particular person, is the first individual to occupy a residential unit in the addition as a place of residence after substantial completion of the construction of the addition,

  the builder shall be deemed

  • (d) to have made and received, at the later of the time the construction of the addition is substantially completed and the time possession or use of the unit is so given to the particular person or the unit is so occupied by the builder, a taxable supply by way of sale of the addition, and

  • (e) to have paid as a recipient and to have collected as a supplier, at the later of those times, tax in respect of the supply calculated on the fair market value of the addition at the later of those times.

• Marginal note:Reference to lease

  (4.1) A reference in this section to a “lease” in respect of land shall be read as a reference to a “lease, licence or similar arrangement”.

• Marginal note:Exception for personal use

  (5) Subsections (1) to (4) do not apply to a builder of a residential complex or an addition to a residential complex where

  • (a) the builder is an individual;

  • (b) at any time after the construction or renovation of the complex or addition is substantially completed, the complex is used primarily as a place of residence for the individual, an individual related to the individual or a former spouse or common-law partner of the individual;

  • (c) the complex is not used primarily for any other purpose between the time the construction or renovation is substantially completed and that time; and

  • (d) the individual has not claimed an input tax credit in respect of the acquisition of or an improvement to the complex.

• Marginal note:Exception for student residence

  (6) Subsections (1) to (4) do not apply to a builder of a residential complex or an addition to a residential complex where

  • (a) the builder is a university, public college or school authority; and

  • (b) the construction or renovation of the complex or addition is carried out, or the complex is acquired, primarily for the purpose of providing a place of residence for students attending the university or college or a school of the school authority.

• Marginal note:Exception for communal organizations

  (6.1) Subsections (1) to (4) do not apply to a builder of a residential complex or an addition to a residential complex where

  • (a) the builder is a community, society or body of individuals to which section 143 of the Income Tax Act applies; and

  • (b) the construction or substantial renovation of the complex or addition is carried out exclusively for the purpose of providing a place of residence for members of the community, society or body.

• Marginal note:Remote work site

  (7) For the purposes of this Part, where

  • (a) the builder of a residential complex or an addition to a residential complex is a registrant,

  • (b) the construction or substantial renovation of the complex or addition is carried out, or the complex is acquired, for the purpose of providing a place of residence or lodging for an individual at a location

    • (i) at which the individual is required to be in the performance of the individual’s duties as

      • (A) an employee of the registrant,

      • (B) a contractor, or an employee of the contractor, engaged by the registrant to render services to the registrant at that location, or

      • (C) a subcontractor, or an employee of the subcontractor, engaged by a contractor referred to in clause (B) to render services at that location that are acquired by the contractor for the purpose of supplying services to the registrant, and

    • (ii) at which, because of its remoteness from any established community, the individual could not reasonably be expected to establish and maintain a self-contained domestic establishment, and

  • (c) the registrant makes, under this subsection, an election in prescribed form containing prescribed information in respect of the complex or addition,

  until the complex is supplied by way of sale, or is supplied by way of lease, licence or similar arrangement primarily to persons who are not employees, contractors or subcontractors referred to in subparagraph (b)(i) who are acquiring the complex or residential units therein in the circumstances described in that subparagraph or individuals who are related to such employees, contractors or subcontractors, the supply of the complex or a residential unit in the complex as a place of residence or lodging is deemed not be a supply and any occupation of the complex or unit as a place of residence or lodging is deemed not to be occupation as a place of residence or lodging.

• (8) [Repealed, 1993, c. 27, s. 56]

• Marginal note:Substantial completion

  (9) For the purposes of this section, the construction or substantial renovation of a multiple unit residential complex or a condominium complex, or the construction of an addition to a multiple unit residential complex, shall be deemed to be substantially completed not later than the day all or substantially all of the residential units in the complex or addition are occupied after the construction or substantial renovation is begun.

• Marginal note:Transfer of possession attributed to builder

  (10) For the purposes of this section, if

  • (a) a builder of a residential complex or an addition to a multiple unit residential complex makes a supply of the complex or a residential unit in the complex or addition by way of lease, licence or similar arrangement and the supply is an exempt supply included in section 6.1 or 6.11 of Part I of Schedule V,

  • (b) the recipient of the supply is acquiring the complex or unit for use or supply in the course of making exempt supplies and, as part of an exempt supply, possession or use of the complex, unit or residential units in the complex is given by the recipient under a lease, licence or similar arrangement under which occupancy of the complex or unit is given to an individual as a place of residence or lodging, and

  • (c) the builder at any time gives possession of the complex or unit to the recipient under the arrangement,

  the builder shall be deemed to have at that time given possession of the complex or unit to an individual under a lease, licence or similar arrangement entered into for the purpose of its occupancy by an individual as a place of residence.

Marginal note:Definitions

• 191.1 (1) The definitions in this subsection apply in this section.

  government funding

  government funding, in respect of a residential complex, means an amount of money (including a forgivable loan but not including any other loan or a refund or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) paid or payable by

  • (a) a grantor, or

  • (b) an organization that received the amount from a grantor or another organization that received the amount from a grantor,

  to a builder of the complex or of an addition thereto for the purpose of making residential units in the complex available to individuals referred to in paragraph (2)(b). (subvention)

  grantor

  grantor means

  • (a) a government or municipality, other than a corporation all or substantially all of whose activities are commercial activities or the supply of financial services or any combination thereof;

  • (b) a band (within the meaning assigned by section 2 of the Indian Act);

  • (c) a corporation that is controlled by a government, a municipality or a band referred to in paragraph (b) and one of the main purposes of which is to fund charitable or non-profit endeavours; and

  • (d) a trust, board, commission or other body that is established by a government, municipality, band referred to in paragraph (b) or corporation described in paragraph (c) and one of the main purposes of which is to fund charitable or non-profit endeavours. (subventionneur)

• Marginal note:Subsidized residential complexes

  (2) For the purposes of subsections 191(1) to (4), where

  • (a) a builder of a residential complex or an addition thereto is deemed under any of subsections 191(1) to (4) to have, at any time, made and received a supply of the complex or addition,

  • (b) possession or use of at least 10% of the residential units in the complex is intended to be given for the purpose of their occupancy as a place of residence or lodging by

    • (i) seniors,

    • (ii) youths,

    • (iii) students,

    • (iv) individuals with a disability,

    • (v) individuals in distress or individuals in need of assistance,

    • (vi) individuals whose eligibility for occupancy of the units as a place of residence or lodging, or for reduced payments in respect of their occupancy as a place of residence or lodging, is dependent on a means or income test,

    • (vii) individuals for whose benefit no other persons (other than public sector bodies) pay consideration for supplies that include giving possession or use of the units for occupancy by the individuals as a place of residence or lodging and who either pay no consideration for the supplies or pay consideration that is significantly less than the consideration that could reasonably be expected to be paid for comparable supplies made by a person in the business of making such supplies for the purpose of earning a profit, or

    • (viii) any combination of individuals described in any of subparagraphs (i) to (vii), and

  • (c) except where the builder is a government or a municipality, the builder, at or before that time, has received or can reasonably expect to receive government funding in respect of the complex,

  the amount of tax in respect of the supply calculated on the fair market value of the complex or addition, as the case may be, is deemed to be equal to the greater of

  • (d) the amount that would, but for this subsection, be the tax calculated on that fair market value, and

  • (e) the amount determined by the formula

    A + B + C + D

    where

    A

    is the total of all amounts each of which is an amount determined by the formula

    E × (F/G)

    where

    E

    is an amount of tax, calculated at a particular rate, that was payable under subsection 165(1) or section 212, 218 or 218.01 by the builder in respect of an acquisition of real property that forms part of the complex or addition or in respect of an acquisition or importation of an improvement to real property that forms part of the complex or addition,

    F

    is the rate set out in subsection 165(1) at the time referred to in paragraph (a), and

    G

    is the particular rate,

    B

    is the total of all amounts each of which is an amount determined by the formula

    H × (I/J)

    where

    H

    is an amount (other than an amount referred to in the description of E) that would have been payable as tax, calculated at a particular rate, under subsection 165(1) or section 212, 218 or 218.01 by the builder in respect of an acquisition or importation of an improvement to real property that forms part of the complex or addition but for the fact that the improvement was acquired or imported for consumption, use or supply exclusively in the course of commercial activities of the builder,

    I

    is the rate set out in subsection 165(1) at the time referred to in paragraph (a), and

    J

    is the particular rate,

    C

    is

    • (i) if the complex or addition is situated in a participating province, the total of all amounts each of which is an amount determined by the formula

      K × (L/M)

      where

      K

      is an amount of tax, calculated at a particular rate, that was payable under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 by the builder in respect of an acquisition of real property that forms part of the complex or addition or in respect of an acquisition, importation or bringing into the participating province of an improvement to real property that forms part of the complex or addition,

      L

      is the tax rate for the participating province at the time referred to in paragraph (a), and

      M

      is the particular rate, and

    • (ii) in any other case, zero, and

    D

    is

    • (i) if the complex or addition is situated in a participating province, the total of all amounts each of which is an amount determined by the formula

      N × (O/P)

      where

      N

      is an amount (other than an amount referred to in the description of K) that would have been payable as tax, calculated at a particular rate, under subsection 165(2), 212.1(2) or 218.1(1) or Division IV.1 by the builder in respect of an acquisition, importation or bringing into the participating province of an improvement to real property that forms part of the complex or addition but for the fact that the improvement was acquired, imported or brought into the participating province for consumption, use or supply exclusively in the course of commercial activities of the builder,

      O

      is the tax rate for the participating province at the time referred to in paragraph (a), and

      P

      is the particular rate, and

    • (ii) in any other case, zero.