Excise Tax Act

Marginal note:Supply by small supplier division

• 129.1 (1) Where a public service body makes a taxable supply, other than a supply of real property by way of sale, through a branch or division of the body and the consideration or a part thereof for the supply becomes due to the body at a time when the branch or division is a small supplier division or is paid to the body at such a time without having become due,

  • (a) that consideration or part thereof, as the case may be, shall not be included in calculating the tax payable in respect of the supply or in determining a threshold amount of the body under section 249; and

  • (b) that supply shall, for the purposes of this Part, be deemed not to have been made by a registrant.

• Marginal note:Restriction on input tax credits for purchases

  (2) In determining an input tax credit of a public service body, there shall not be included an amount in respect of tax that, at any time after March 27, 1991, became payable, or was paid without having become payable, by the body, to the extent that the tax

  • (a) is in respect of property (other than capital property or improvements thereto) acquired, imported or brought into a participating province by the body for the purpose of consumption, use or supply in the course of activities engaged in by the body through a small supplier division of the body; or

  • (b) is calculated on consideration, or a part thereof, that is reasonably attributable to services that were, before that time, consumed, used or supplied by the body in the course of activities engaged in by the body through a small supplier division of the body or that are, at that time, intended to be so consumed, used or supplied.

• (3) [Repealed, 1997, c. 10, s. 151]

• Marginal note:Change in use of non-capital property

  (4) Where

  • (a) at any time after March 27, 1991, a public service body that is a registrant begins to hold property of the body (other than capital property) for consumption, use or supply primarily in the course of activities engaged in by the body through its small supplier divisions, and

  • (b) immediately before that time, the body was holding the property for consumption, use or supply

    • (i) in the course of commercial activities of the body, and

    • (ii) otherwise than primarily in the course of activities engaged in by the body through its small supplier divisions,

  except where subsection 129(6) or 171(3) applies, the body shall be deemed to have made, immediately before that time, a supply of the property and, except where the supply is an exempt supply, to have collected, immediately before that time, tax in respect of the supply equal to the total of all input tax credits in respect of the property that the body was entitled to claim at or before that time.

• Marginal note:Idem

  (5) Where

  • (a) a public service body begins, at any time after March 27, 1991, to hold property of the body (other than capital property) for consumption, use or supply primarily in the course of activities engaged in by the body otherwise than through its small supplier divisions,

  • (b) immediately before that time the property was held by the body for consumption, use or supply primarily in the course of activities engaged in by the body through its small supplier divisions, and

  • (c) immediately after that time the property is held by the body for consumption, use or supply in the course of commercial activities engaged in by the body otherwise than through its small supplier divisions,

  except where subsection 171(1) applies, for the purpose of determining an input tax credit of the body, it shall be deemed to have received a supply of the property and to have paid, at that time, tax in respect of the supply equal to the lesser of

  • (d) the amount, if any, by which

    • (i) the total of all amounts each of which is tax that, before that time, was paid or became payable by the body in respect of the last acquisition or importation of the property by the body or that was deemed under subsection 129(6) to have been collected by the body in respect of the property

    exceeds

    • (ii) the total of all input tax credits and rebates that the body was entitled to claim under this Part before that time in respect of that acquisition or importation, and

  • (e) tax calculated on the fair market value of the property at that time.

• Marginal note:Use of capital property

  (6) For the purposes of determining an input tax credit in respect of capital property of a public service body and for the purposes of Subdivision d of Division II, an activity engaged in by a public service body shall be deemed not to be a commercial activity of the body to the extent that the activity is engaged in through a small supplier division of the body.

• Marginal note:Application of change in use rules

  (7) Subsections 200(2) and 206(4) and (5) do not apply to a public service body in respect of a reduction in the extent to which property is used in commercial activities of the body where the reduction in use occurs

  • (a) before March 28, 1991; and

  • (b) as a result of the application of subsection (6) but not as a result of a branch or division of the body becoming a small supplier division.