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

Marginal note:Definitions

178.1 In this section and sections 178.2 to 178.5,

applicable provincial tax

applicable provincial tax means any amount that can reasonably be attributed to a tax, duty or fee imposed under an Act of the legislature of a province and prescribed for the purposes of section 154; (taxe provinciale applicable)

direct seller

direct seller means a person who sells exclusive products of the person to independent sales contractors of the person; (démarcheur)

distributor

distributor of a direct seller means a person who is an independent sales contractor of the direct seller and who, in the course of the contractor’s business, sells some or all of the exclusive products of the direct seller acquired by the contractor to other independent sales contractors of the direct seller; (distributeur)

exclusive product

exclusive product of a direct seller means personal property that is acquired, manufactured or produced by the direct seller for sale, in the ordinary course of a business of the direct seller, to an independent sales contractor of the direct seller, with the expectation that the property would be ultimately sold, otherwise than as used property, by an independent sales contractor of the direct seller, in the ordinary course of a business of the contractor, for consideration to a person other than another independent sales contractor of the direct seller; (produit exclusif)

independent sales contractor

independent sales contractor of a direct seller means a person (other than an agent or employee of the direct seller or of a distributor of the direct seller) who

• (a) has a contractual right to purchase exclusive products of the direct seller from the direct seller or from a distributor of the direct seller,

• (b) purchases exclusive products of the direct seller for the purpose of resale to other independent sales contractors of the direct seller or to purchasers, and

• (c) does not solicit, negotiate or enter into contracts for the sale of exclusive products of the direct seller to purchasers primarily at a fixed place of business of the person other than a private residence; (entrepreneur indépendant)

purchaser

purchaser of an exclusive product of a direct seller means a person who is the recipient of a supply of the product and who is not acquiring the product for the purpose of supplying it for consideration; (acheteur)

sales aid

sales aid of a person who is a direct seller or an independent sales contractor of a direct seller means

• (a) property (other than an exclusive product of the direct seller)

  • (i) that is a customized business form or a sample, demonstration kit, promotional or instructional item, catalogue or other personal property acquired, manufactured or produced by the person for sale to assist in the promotion, sale or distribution of exclusive products of the direct seller, and

  • (ii) that is neither sold nor held for sale by the person to an independent sales contractor of the direct seller who is acquiring the property for use as capital property, and

• (b) the service of shipping or handling, or processing an order for, either property included in paragraph (a) or an exclusive product of the direct seller; (matériel de promotion)

suggested retail price

suggested retail price at any time of an exclusive product of a direct seller means the lowest price published by the direct seller applicable to supplies of the product made at that time to purchasers, but does not include any amount on account of tax. (prix de vente au détail suggéré)