Marginal note:Sale of passenger vehicle
203 (1) Where a registrant, at a particular time in a reporting period of the registrant, makes a taxable supply by way of sale of a passenger vehicle that, immediately before the particular time, was used as capital property in commercial activities of the registrant, the registrant may, notwithstanding section 170, paragraphs 199(2)(a) and (4)(a) and subsection 202(1), claim an input tax credit for that period equal to the amount determined by the formula
A × (B - C)/B
where
- A
- is the basic tax content of the vehicle at the particular time;
- B
- is the total of
(a) the tax that was payable by the registrant in respect of the last acquisition or importation of the vehicle by the registrant,
(b) where the registrant brought the vehicle into a participating province after it was last acquired or imported by the registrant, the tax that was payable by the registrant in respect of bringing it into that province, and
(c) the tax that was payable by the registrant in respect of improvements to the vehicle acquired, imported or brought into a participating province by the registrant after the property was last acquired or imported; and
- C
- is the total of all input tax credits that the registrant was entitled to claim in respect of any tax included in the total for B.
Marginal note:Ceasing to use passenger vehicle, etc.
(2) For the purposes of this Part, where a registrant who is an individual or a partnership acquired or imported a passenger vehicle or an aircraft for use as capital property exclusively in commercial activities of the registrant and the registrant begins, at any time, to use the vehicle or aircraft otherwise than exclusively in commercial activities of the registrant, the registrant shall be deemed to have
(a) made, immediately before that time, a taxable supply by way of sale of the vehicle or aircraft; and
(b) collected, at that time, tax in respect of the supply equal to the basic tax content of the vehicle or aircraft immediately before that time.
Marginal note:Sale of passenger vehicle, etc.
(3) Notwithstanding paragraph 141.1(1)(a), for the purposes of this Part, where
(a) an individual or a partnership who is a registrant makes, at a particular time, a supply by way of sale of a passenger vehicle or an aircraft that is capital property of the registrant, and
(b) at any time after the individual or partnership became a registrant and before the particular time, the registrant did not use the vehicle or aircraft exclusively in commercial activities of the registrant,
the supply shall be deemed not to be a taxable supply.
- [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. 70
- 1997, c. 10, s. 193
- Date modified: