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

Full Document:  

Act current to 2022-09-11 and last amended on 2022-09-01. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION IInterpretation (continued)

Relationships, Associations, Separate Persons and Residence (continued)

Marginal note:Members of unincorporated organizations

  •  (1) Where a particular unincorporated organization is a member of another unincorporated organization, the particular organization and the other organization may apply jointly to the Minister, in prescribed form containing prescribed information, to have the particular organization deemed to be a branch of the other organization and not to be a separate person.

  • Marginal note:Approval by Minister

    (2) Where the Minister receives an application under subsection (1) in respect of a particular organization that is a member of another organization and is satisfied that it is appropriate, for the purposes of this Part, to approve the application, the Minister may, in writing, approve the application and, subject to subsection (3), the particular organization shall, for the purposes of this Part (other than the purposes for which the particular organization is deemed under subsection 129(2) to be a separate person), be deemed to be a branch of the other organization and not to be a separate person.

  • Marginal note:Revocation of approval

    (3) Where

    • (a) the Minister has approved an application made under subsection (1) in respect of a particular organization that is a member of another organization, and

    • (b) either the particular organization or the other organization requests the Minister in writing to revoke the approval,

    the Minister may revoke the approval and thereafter the particular organization shall be deemed to be a separate person and not to be a branch of the other organization.

  • Marginal note:Notice of revocation

    (4) Where under subsection (3) the Minister revokes an approval, the Minister shall send a notice in writing of the revocation to the organizations affected and shall specify therein the effective date of the revocation.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12

Marginal note:Arrangements deemed to be trusts

 If an arrangement is deemed to be a trust under paragraph 248(3)(b) or (c) of the Income Tax Act, the following rules apply for the purposes of this Part:

  • (a) the arrangement is deemed to be a trust;

  • (b) property subject to rights and obligations under the arrangement is deemed to be held in trust and not otherwise;

  • (c) in the case of an arrangement referred to in paragraph 248(3)(b) of that Act, a person that has a right (whether immediate or future and whether absolute or contingent) to receive all or part of the income or capital in respect of property that is referred to in that paragraph is deemed to be beneficially interested in the trust; and

  • (d) in the case of an arrangement referred to in paragraph 248(3)(c) of that Act, any property contributed at any time to the arrangement by an annuitant, a holder or a subscriber of the arrangement, as the case may be, is deemed to have been transferred, at that time, to the trust by the contributor.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2017, c. 33, s. 107

Marginal note:Segregated fund a separate person

  •  (1) For the purposes of this Part, a segregated fund of an insurer shall be deemed to be a trust that is a separate person from the insurer and that does not deal at arm’s length with the insurer and

    • (a) the insurer shall be deemed to be a trustee of that trust;

    • (b) the activities of the segregated fund shall be deemed to be activities of the trust and not activities of the insurer; and

    • (c) where, at any time, an amount (other than an amount in respect of tax under this Part) is deducted from the fund,

      • (i) if the amount is in respect of property or a service that the fund is, because of the operation of this Part other than this paragraph, considered to have acquired from the insurer, that supply shall be deemed to be a taxable supply and the amount shall be deemed to be consideration for that supply that becomes due at that time, and

      • (ii) if the amount is not in respect of property or a service that the fund is, because of the operation of this Part other than this paragraph, considered to have acquired either from the insurer or another person, the insurer shall be deemed to have made, and the fund shall be deemed to have received, at that time, a taxable supply of a service and the amount shall be deemed to be consideration for the supply that becomes due at that time.

  • Marginal note:Exceptions

    (2) Paragraph (1)(c) does not apply to an amount deducted from a segregated fund of an insurer if

    • (a) the amount is a distribution of income, a payment of a benefit, or the amount of a redemption, in respect of an interest of another person in the fund; or

    • (b) the amount is a prescribed amount.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 2000, c. 30, s. 19

Marginal note:Person resident in Canada

  •  (1) For the purposes of this Part, a person shall be deemed to be resident in Canada at any time

    • (a) in the case of a corporation, if the corporation is incorporated or continued in Canada and not continued elsewhere;

    • (b) in the case of a partnership, an unincorporated society, a club, an association or an organization, or a branch thereof, if the member, or a majority of the members, having management and control thereof is or are resident in Canada at that time;

    • (c) in the case of a labour union, if it is carrying on activities as such in Canada and has a local union or branch in Canada at that time; or

    • (d) in the case of an individual, if the individual is deemed under any of paragraphs 250(1)(b) to (f) of the Income Tax Act to be resident in Canada at that time.

  • Marginal note:Permanent establishment of non-resident

    (2) For the purposes of this Part, where a non-resident person has a permanent establishment in Canada, the person shall be deemed to be resident in Canada in respect of, but only in respect of, activities of the person carried on through that establishment.

  • Marginal note:Permanent establishment of resident

    (3) For the purposes of this Part, where a person who is resident in Canada has a permanent establishment in a country other than Canada, the person shall be deemed to be a non-resident person in respect of, but only in respect of, activities of the person carried on through that establishment.

  • Marginal note:Supplies between permanent establishments

    (4) For the purposes of this Part, where a person carries on a business through a permanent establishment of the person in Canada and through another permanent establishment of the person outside Canada,

    • (a) any transfer of personal property or rendering of a service by the establishment in Canada to the establishment outside Canada shall be deemed to be a supply of the property or service; and

    • (b) in respect of that supply, the permanent establishments shall be deemed to be separate persons who deal with each other at arm’s length.

  • Marginal note:Residence of international shipping corporations

    (5) Where under subsection 250(6) of the Income Tax Act a corporation is deemed for the purposes of that Act to be resident in a country other than Canada throughout a taxation year of the corporation and not to be resident in Canada at any time in the year, the corporation shall, for the purposes of this Part but subject to subsection (2), be deemed to be resident in that other country throughout the year and not to be resident in Canada at any time in the year.

  • Marginal note:Residence of investment limited partnerships

    (6) For the purposes of this Part but subject to subsection (2), an investment limited partnership is deemed not to be resident in Canada at any time if, at that time, the total value of all interests in the partnership held by non-resident members of the partnership (other than prescribed members) is 95% or more of the total value of all interests in the partnership.

  • [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. 14
  • 1997, c. 10, s. 2
  • 2018, c. 27, s. 42

Marginal note:Person resident in a province

  •  (1) For the purposes of this Part, other than determining the place of residence of an individual in the individual’s capacity as a consumer, a person is deemed to be resident in a province if the person is resident in Canada and

    • (a) in the case of a corporation, the corporation is incorporated or continued under the laws of that province and not continued elsewhere;

    • (b) in the case of a partnership, an unincorporated society, a club, an association or an organization, or a branch thereof, the member, or a majority of the members, having management and control thereof is or are resident in that province;

    • (c) in the case of a labour union, it is carrying on activities as such in that province and has a local union or branch in that province; or

    • (d) in any case, the person has a permanent establishment in that province.

  • Marginal note:Meaning of “permanent establishment”

    (2) In this section and Schedule IX, permanent establishment of a person means

    • (a) in the case of an individual, the estate of a deceased individual or a trust that carries on a business (within the meaning assigned by subsection 248(1) of the Income Tax Act), a permanent establishment (as defined for the purposes of Part XXVI of the Income Tax Regulations) of the person;

    • (b) in the case of a corporation that carries on a business (within the meaning assigned by subsection 248(1) of that Act), a permanent establishment (as defined for the purposes of Part IV of those Regulations) of the person;

    • (c) in the case of a particular partnership

      • (i) a permanent establishment (as defined for the purposes of Part XXVI of those Regulations) of a member that is an individual, the estate of a deceased individual or a trust where the establishment relates to a business (within the meaning assigned by subsection 248(1) of that Act) carried on through the partnership,

      • (ii) a permanent establishment (as defined for the purposes of Part IV of those Regulations) of a member that is a corporation where the establishment relates to a business (within the meaning assigned by subsection 248(1) of that Act) carried on by the particular partnership, or

      • (iii) a permanent establishment (within the meaning of this subsection) of a member that is a partnership where the establishment relates to a business (within the meaning assigned by subsection 248(1) of that Act) carried on by the particular partnership; and

    • (d) in any other case, a place that would be a permanent establishment (as defined for the purposes of Part IV of those Regulations) of the person if the person were a corporation and its activities were a business for purposes of that Act.

  • Marginal note:Permanent establishment in a province

    (3) A prescribed person, or a person of a prescribed class, is deemed, under prescribed circumstances and for prescribed purposes, to have a permanent establishment in a prescribed province.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1997, c. 10, s. 152
  • 2009, c. 32, s. 3

Supplies and Commercial Activities

Marginal note:Agreement as supply

 For the purposes of this Part, where an agreement is entered into to provide property or a service,

  • (a) the entering into of the agreement shall be deemed to be a supply of the property or service made at the time the agreement is entered into; and

  • (b) the provision, if any, of property or a service under the agreement shall be deemed to be part of the supply referred to in paragraph (a) and not a separate supply.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12

Marginal note:Transfer of security interest

 For the purposes of this Part, where, under an agreement entered into in respect of a debt or obligation, a person transfers property or an interest in property for the purpose of securing payment of the debt or performance of the obligation, the transfer shall be deemed not to be a supply, and where, on payment of the debt or performance of the obligation or the forgiveness of the debt or obligation, the property or interest is retransferred, the retransfer of the property or interest shall be deemed not to be a supply.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12

Marginal note:Sponsorship of public sector bodies

 For the purposes of this Part, where a public sector body makes

  • (a) a supply of a service, or

  • (b) a supply by way of licence of the use of a copyright, trademark, trade-name or other similar property of the body,

to a person who is the sponsor of an activity of the body for use by the person exclusively in publicizing the person’s business, the supply by the body of the service or the use of the property shall be deemed not to be a supply, except where it may reasonably be regarded that the consideration for the supply is primarily for a service of advertising by means of radio or television or in a newspaper, magazine or other publication published periodically or for a prescribed service.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1997, c. 10, s. 3
  • 2014, c. 20, s. 366(E)

Marginal note:Lease etc. of property

  •  (1) For the purposes of this Part, a supply, by way of lease, licence or similar arrangement, of the use or right to use real property or tangible personal property shall be deemed to be a supply of real property or tangible personal property, as the case may be.

  • Marginal note:Combined supply of real property

    (2) For the purposes of this Part, where a supply of real property includes the provision of

    • (a) real property that is

      • (i) a residential complex,

      • (ii) land, a building or part of a building that forms or is reasonably expected to form part of a residential complex, or

      • (iii) a residential trailer park, and

    • (b) other real property that is not part of the property referred to in paragraph (a),

    the property referred to in paragraph (a) and the property referred to in paragraph (b) shall each be deemed to be a separate property and the provision of the property referred to in paragraph (a) shall be deemed to be a separate supply from the provision of the property referred to in paragraph (b), and neither supply is incidental to the other.

  • (2.1) [Repealed, 1997, c. 10, s. 153]

  • Marginal note:Idem

    (3) For the purposes of this Part, where a builder of an addition to a multiple unit residential complex makes a supply of the complex or an interest in it by way of sale that, but for this subsection, would be a taxable supply and, but for the construction of the addition, would be an exempt supply described in section 5 of Part I of Schedule V, the addition and the remainder of the complex shall each be deemed to be a separate property and the sale of the addition or the interest in it shall be deemed to be a separate supply from the sale of the remainder of the complex or the interest in it, and neither supply is incidental to the other.

  • Marginal note:Idem

    (4) For the purposes of this Part, where a person who has increased the area of land included in a residential trailer park of the person makes a supply of the park or an interest in it that, but for this subsection, would be a taxable supply and, but for the increase in the area of land included in the park, would be an exempt supply described in section 5.3 of Part I of Schedule V, the area of land by which the park was increased and the remainder of the park shall each be deemed to be a separate property and the sale of the additional area or the interest therein shall be deemed to be a supply separate from the sale of the remainder of the park or the interest in the park, and neither supply is incidental to the other.

  • [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. 15
  • 1997, c. 10, ss. 4, 153
 
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