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

Marginal note:Registration required

• 240 (1) Every person who makes a taxable supply in Canada in the course of a commercial activity engaged in by the person in Canada is required to be registered for the purposes of this Part, except where

  • (a) the person is a small supplier;

  • (b) the only commercial activity of the person is the making of supplies of real property by way of sale otherwise than in the course of a business; or

  • (c) the person is a non-resident person who does not carry on any business in Canada.

• Marginal note:Taxi business

  (1.1) Notwithstanding subsection (1), every small supplier who carries on a taxi business is required to be registered for the purposes of this Part in respect of that business.

• Marginal note:Prescribed selected listed financial institutions

  (1.2) Every selected listed financial institution that is prescribed is required to be registered for the purposes of this Part.

• Marginal note:Group registration of selected listed financial institutions

  (1.3) The following rules apply in respect of a prescribed group of selected listed financial institutions:

  • (a) the group is required to be registered for the purposes of this Part;

  • (b) a person that is prescribed in respect of the group must apply to the Minister for registration of the group before the day that is prescribed;

  • (c) each member of the group is deemed to be a registrant for the purposes of this Part; and

  • (d) despite subsections (1) to (1.2), each member of the group is not required to be separately registered.

• Marginal note:Additional member of group

  (1.4) If a selected listed financial institution becomes, on a particular day, a member of an existing group that is required to be registered for the purposes of this Part or that is registered under this Subdivision, the following rules apply:

  • (a) if the group is required to be registered, the application for the registration of the group under paragraph (1.3)(b) must list the financial institution as a member of the group;

  • (b) if the group is registered, the financial institution or the person that is prescribed in respect of the group for the purpose of paragraph (1.3)(b) must, before the day that is 30 days after the particular day, apply to the Minister to add the financial institution to the registration of the group;

  • (c) the financial institution is deemed to be a registrant for the purposes of this Part as of the particular day; and

  • (d) despite subsections (1) to (1.2), the financial institution is not required to be separately registered as of the particular day.

• Marginal note:Non-resident supplier — tangible personal property

  (1.5) Despite subsection (1), every person that is required under section 211.22 to be registered under this Subdivision is required to be registered for the purposes of this Part.

• Marginal note:Non-resident performers, etc.

  (2) Every person (other than a person registered under Subdivision E of Division II) that enters Canada for the purpose of making taxable supplies of admissions in respect of a place of amusement, a seminar, an activity or an event is required to be registered for the purposes of this Part and shall, before making any such supply, apply to the Minister for registration.

• Marginal note:Application

  (2.1) A person required under any of subsections (1) to (1.2) and (1.5) to be registered must apply to the Minister for registration before the day that is 30 days after

  • (a) in the case of a person required under subsection (1.1) to be registered in respect of a taxi business, the day the person first makes a taxable supply in Canada in the course of that business;

  • (a.1) in the case of a selected listed financial institution required under subsection (1.2) to be registered, the day that is prescribed;

  • (a.2) in the case of a person required under subsection (1.5) to be registered, the first day on which the person is required under section 211.22 to be registered under this Subdivision; and

  • (b) in any other case, the day the person first makes a taxable supply in Canada, otherwise than as a small supplier, in the course of a commercial activity engaged in by the person in Canada.

• Marginal note:Registration permitted

  (3) An application for registration for the purposes of this Part may be made to the Minister by any person that is not required under subsection (1), (1.1), (1.2), (1.5), (2) or (4) to be registered, that is not required to be included in, or added to, the registration of a group under subsection (1.3) or (1.4) and that

  • (a) is engaged in a commercial activity in Canada;

  • (b) is a non-resident person who in the ordinary course of carrying on business outside Canada

    • (i) regularly solicits orders for the supply by the person of tangible personal property for export to, or delivery in, Canada, or

    • (ii) has entered into an agreement for the supply by the person of

      • (A) services to be performed in Canada, or

      • (B) intangible personal property to be used in Canada or that relates to

        • (I) real property situated in Canada,

        • (II) tangible personal property ordinarily situated in Canada, or

        • (III) services to be performed in Canada;

  • (c) is a listed financial institution resident in Canada;

  • (d) is resident in Canada and is

    • (i) a particular corporation, partnership or trust that owns units (as defined in subsection 186(0.1)) or holds indebtedness of a corporation that is, for the purposes of section 186, an operating corporation of the particular corporation, partnership or trust, or

    • (ii) a particular corporation that is acquiring, or proposes to acquire, all or substantially all of the issued and outstanding shares of the capital stock of another corporation, having full voting rights under all circumstances, if all or substantially all of the property of the other corporation is, for the purposes of section 186, property that was last manufactured, produced, acquired or imported by the other corporation for consumption, use or supply exclusively in the course of its commercial activities,

  • (e) is the recipient of a qualifying supply (as defined in subsection 167.11(1)), or of a supply that would be a qualifying supply if the recipient were a registrant, and the recipient files an election referred to in subsection 167.11(2) with the Minister in respect of the qualifying supply before the particular day that is referred to in paragraph 167.11(7)(a); or

  • (f) a corporation that would be a temporary member, as defined in subsection 156(1), in the absence of paragraph (a) of that definition.

• Marginal note:Extended registration permitted for taxi business

  (3.1) Where a person who is a small supplier carrying on a taxi business files with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to have the registration of the person apply in respect of all commercial activities engaged in by the person in Canada, the Minister may approve the request and shall thereupon notify the person in writing of the date from which the registration so applies.

• Marginal note:Suppliers of prescribed property

  (4) Every person (other than a small supplier), whether or not resident in Canada, who, in Canada, whether through an employee or agent or by means of advertising directed at the Canadian market, solicits orders for the supply by the person of, or offers to supply, property that is prescribed property for the purposes of section 143.1 and that is to be sent by mail or courier to the recipient at an address in Canada

  • (a) shall be deemed, for the purposes of this Part, to be carrying on business in Canada; and

  • (b) is required to be registered for the purposes of this Part.

• Marginal note:Form and contents of application

  (5) An application for registration, or an application to be added to the registration of a group, is to be filed with the Minister in prescribed manner and is to be made in prescribed form containing prescribed information.

• Marginal note:Security

  (6) Every person who

  • (a) is not resident in Canada or would not, but for subsection 132(2), be resident in Canada,

  • (b) does not have a permanent establishment in Canada or would not, but for paragraph (b) of the definition permanent establishment in subsection 123(1), have such an establishment, and

  • (c) applies or is required to be registered for the purposes of this Part

  shall give and thereafter maintain security, in an amount and a form satisfactory to the Minister, that the person will pay or remit all amounts payable or remittable by the person under this Part.

• Marginal note:Failure to comply

  (7) Where, at any time, a person referred to in subsection (6) fails to give or maintain, as required under that subsection, security in an amount satisfactory to the Minister, the Minister may retain as security, out of any amount that may be or may become payable under this Part to the person, an amount not exceeding the amount by which

  • (a) the amount of security that would, at that time, be satisfactory to the Minister if it were given by the person in accordance with that subsection

  exceeds

  • (b) the amount of security, if any, given and maintained by the person in accordance with that subsection,

  and the amount so retained is deemed

  • (c) to have been paid, at that time, by the Minister to the person, and

  • (d) to have been given, immediately after that time, by the person as security in accordance with subsection (6).