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

147 [Repealed, 1994, c. 9, s. 5]

Small Suppliers

Marginal note:Small suppliers

• 148 (1) For the purposes of this Part, a person is a small supplier throughout a particular calendar quarter and the first month immediately following the particular calendar quarter if

  • (a) the total of all amounts each of which is the value of the consideration (other than consideration referred to in section 167.1 that is attributable to goodwill of a business) that became due in the four calendar quarters immediately preceding the particular calendar quarter, or that was paid in those four calendar quarters without having become due, to the person or an associate of the person at the beginning of the particular calendar quarter for taxable supplies (other than supplies of financial services and supplies by way of sale of capital property of the person or associate) made inside or outside Canada by the person or associate

  does not exceed the total of

  • (b) $30,000 or, where the person is a public service body, $50,000, and

  • (c) where, in the four calendar quarters immediately preceding the particular calendar quarter, the person or an associate of the person at the beginning of the particular calendar quarter made a taxable supply of a right to participate in a game of chance or is deemed, under section 187, to have made a supply in respect of a bet and the supply is a taxable supply, the total of all amounts each of which is

    • (i) an amount of money paid or payable by the person or the associate as a prize or winnings in the game or in satisfaction of the bet, or

    • (ii) consideration paid or payable by the person or the associate for property or a service that is given as a prize or winnings in the game or in satisfaction of the bet.

• Marginal note:Exception

  (2) Notwithstanding subsection (1), where at any time in a calendar quarter

  • (a) the total of all amounts each of which is the value of the consideration (other than consideration referred to in section 167.1 that is attributable to goodwill of a business) that became due in the calendar quarter, or that was paid in that calendar quarter without having become due, to a person or an associate of the person at the beginning of the calendar quarter for taxable supplies (other than supplies of financial services and supplies by way of sale of capital property of the person or associate) made inside or outside Canada by the person or associate

  exceeds the total of

  • (b) $30,000 or, where the person is a public service body, $50,000, and

  • (c) where, in the calendar quarter, the person or an associate of the person at the beginning of the calendar quarter made a taxable supply of a right to participate in a game of chance or is deemed, under section 187, to have made a supply in respect of a bet and the supply is a taxable supply, the total of all amounts each of which is

    • (i) an amount of money paid or payable by the person or the associate as a prize or winnings in the game or in satisfaction of the bet, or

    • (ii) consideration paid or payable by the person or the associate for property or a service that is given as a prize or winnings in the game or in satisfaction of the bet,

  the person is not a small supplier throughout the period beginning immediately before that time and ending on the last day of the calendar quarter.

• Marginal note:Non-application

  (3) This section does not apply to

  • (a) a person registered under Subdivision E of Division II; or

  • (b) a non-resident person that makes a supply in Canada of admissions in respect of a place of amusement, a seminar, an activity or an event and whose only business carried on in Canada is the making of such supplies.

• Meaning of associate

  (4) In this section, associate of a particular person at any time means another person who is associated at that time with the particular person.

Meaning of gross revenue

• 148.1 (1) In this section, gross revenue of a person for a fiscal year of the person means the amount, if any, by which

  • (a) the total of all amounts each of which is

    • (i) a gift that is received or becomes receivable (depending on the method, in this paragraph referred to as the “accounting method”, followed by the person in determining the person’s revenue for the year) by the person during the fiscal year,

    • (ii) a grant, subsidy, forgivable loan or other assistance (other than a refund or rebate of, or credit in respect of, taxes, duties or fees imposed by an Act of Parliament or the legislature of a province) in the form of money that is received or becomes receivable (depending on the accounting method) by the person during the fiscal year from a government, municipality or other public authority,

    • (iii) revenue that is or would be, if the person were a taxpayer under the Income Tax Act, included for the purposes of that Act in determining the person’s income for the fiscal year from property, a business, an adventure or concern in the nature of trade or other source and that is not included in subparagraph (ii),

    • (iv) an amount that is or would be, if the person were a taxpayer under the Income Tax Act, a capital gain for the fiscal year for the purposes of that Act from the disposition of property of the person, or

    • (v) other revenue of any kind whatever (other than an amount that is or would be, if the person were a taxpayer under the Income Tax Act, included in determining the amount of a capital gain or loss of the person for the purposes of that Act) that is received or becomes receivable (depending on the accounting method) by the person during the fiscal year,

    and that is not included in determining the total under this paragraph for a preceding fiscal year of the person,

  exceeds

  • (b) the total of all amounts each of which is or would be, if the person were a taxpayer under the Income Tax Act, a capital loss for the fiscal year for the purposes of that Act from the disposition of property of the person.

• Marginal note:Charity and public institution as small supplier

  (2) For the purposes of this Part, a person that is a charity or a public institution at any time in a particular fiscal year of the person is a small supplier throughout the particular fiscal year if

  • (a) the particular fiscal year is the first fiscal year of the person;

  • (b) the particular fiscal year is the second fiscal year of the person and the gross revenue of the person for the first fiscal year of the person was $250,000 or less; or

  • (c) the particular fiscal year is not the first or second fiscal year of the person and the gross revenue of the person for either of the two fiscal years of the person immediately preceding the particular fiscal year was $250,000 or less.

Financial Institutions

Marginal note:Financial institutions

• 149 (1) For the purposes of this Part, a person is a financial institution throughout a particular taxation year of the person if

  • (a) the person is

    • (i) a bank,

    • (ii) a corporation that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as a trustee,

    • (iii) a person whose principal business is as a trader or dealer in, or as a broker or salesperson of, financial instruments or money,

    • (iv) a credit union,

    • (v) an insurer or any other person whose principal business is providing insurance under insurance policies,

    • (vi) a segregated fund of an insurer,

    • (vii) the Canada Deposit Insurance Corporation,

    • (viii) a person whose principal business is the lending of money or the purchasing of debt securities or a combination thereof,

    • (ix) an investment plan,

    • (x) a person providing services referred to in section 158, or

    • (xi) a corporation deemed under section 151 to be a financial institution,

    at any time in the particular year;

  • (b) the total (in this section referred to as the “financial revenue”) of all amounts each of which is an amount that is interest, a dividend (other than a dividend in kind or a patronage dividend) or a separate fee or charge for a financial service and that is included in computing, for the purposes of the Income Tax Act, the person’s income, or, if the person is an individual, the person’s income from a business, for the taxation year of the person preceding the particular year exceeds the greater of

    • (i) 10% of the total of

      • (A) the amount that would, but for subsection (4), be the financial revenue, and

      • (B) the total of all consideration that became due in that preceding taxation year, or that was paid in that preceding taxation year without having become due, to the person for supplies (other than supplies by way of sale of capital property of the person and supplies of financial services that are not zero-rated supplies described by section 3 of Part IX of Schedule VI) made by the person, and

    • (ii) the amount determined by the formula

      $10,000,000 × A/365

      where

      A

      is the number of days in that preceding taxation year; or

  • (c) the total of all amounts each of which is an amount that is included in computing, for the purposes of that Act, the person’s income, or, where the person is an individual, the person’s income from a business, for that preceding taxation year and that is interest, or a separate fee or charge, with respect to

    • (i) a credit card or charge card issued by the person, or

    • (ii) the making of an advance, the lending of money or the granting of credit

    exceeds

    • (iii) the amount determined by the formula

      $1,000,000 × A/365

      where

      A

      is the number of days in that preceding taxation year.

• Marginal note:Amalgamations

  (2) For the purposes of this Part, where

  • (a) at any time two or more corporations (in this subsection referred to as the “predecessors”) are merged or amalgamated to form one corporation (in this subsection referred to as the “new corporation”), and

  • (b) the principal business of the new corporation immediately after that time is the same as or similar to the business of one or more of the predecessors that immediately before that time was a financial institution,

  the new corporation is a financial institution throughout the taxation year of the new corporation that began at that time.

• Marginal note:Acquisition of business

  (3) For the purposes of this Part, where

  • (a) a particular person, at any time in a taxation year of the particular person, acquires a business as a going concern from another person who was immediately before that time a financial institution, and

  • (b) immediately after that time the principal business of the particular person is the business so acquired,

  the particular person is a financial institution throughout the part of that taxation year that is after that time.

• Marginal note:Exclusion of interest and dividend

  (4) In determining a total for a person under paragraph (1)(b) or (c), there shall not be included interest, or any dividend, from

  • (a) if the person is a partnership, a corporation that is controlled by

    • (i) the person,

    • (ii) a corporation that is controlled by the person,

    • (iii) a corporation that is related to a corporation described in subparagraph (ii), or

    • (iv) a combination of persons described in subparagraphs (i) to (iii); or

  • (b) in any other case, a corporation related to the person.

• Marginal note:Exclusion — sales of precious metals

  (4.01) In determining an amount of financial revenue, there shall not be included a separate fee or charge for a financial service the supply of which is a zero-rated supply described by section 3 of Part IX of Schedule VI.

• Marginal note:Exclusion of interest

  (4.02) In determining a total under paragraph (1)(c) for a person (in this subsection and subsection (4.03) referred to as the “depositor”), interest from another person in respect of a deposit of money received or held by the other person in the usual course of its deposit-taking business is not to be included if

  • (a) the other person is

    • (i) a bank,

    • (ii) a credit union,

    • (iii) a corporation authorized under the laws of Canada or a province to carry on the business of offering to the public its services as a trustee, or

    • (iv) a corporation authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real property or investing in indebtedness on the security of mortgages or hypothecs on real property; and

  • (b) the other person is obligated, or may by the demand of the depositor become obligated, to repay the money on or before the particular day that is 364 days after the day on which the deposit of money is made.

• Marginal note:Repayment obligation — special cases

  (4.03) For the purpose of paragraph (4.02)(b), in determining whether the other person is obligated, or may by the demand of the depositor become obligated, to repay the money on or before the particular day that is 364 days after the day on which the deposit of money is made, the following rules apply:

  • (a) if the other person is obligated to repay the money to the depositor on a fixed day and also is or may become obligated to repay the money on an earlier day by virtue of a right of withdrawal, reinvestment or other right afforded to the depositor by the terms under which the money was solicited or received or is held, then only the obligation to repay on the fixed day is to be considered, whether or not the right is exercised; and

  • (b) if the other person is obligated to repay the money to the depositor on a fixed day and also is or may become obligated to repay the money on a later day by virtue of a right afforded to any person to extend the term of the deposit at a rate or rates of interest determined at the time the money was solicited or received, then only the obligation to repay on the later day is to be considered, whether or not the right is exercised.

• Marginal note:Charities, municipalities, etc.

  (4.1) Paragraphs (1)(b) and (c) do not apply for the purpose of determining if a person is a financial institution throughout a particular taxation year where the person is

  • (a) at the beginning of the particular year,

    • (i) a charity, municipality, school authority, hospital authority, public college or university, or

    • (ii) a non-profit organization that operated, otherwise than for profit, a health care facility within the meaning of paragraph (c) of the definition of that expression in section 1 of Part II of Schedule V; or

  • (b) on the last day of the taxation year of the person preceding the particular year, a qualifying non-profit organization (within the meaning of subsection 259(2)).

• Marginal note:Meaning of investment plan

  (5) In this section, investment plan means

  • (a) a trust governed by

    • (i) a registered pension plan,

    • (i.1) a pooled registered pension plan,

    • (ii) an employees profit sharing plan,

    • (iii) a registered supplementary unemployment benefit plan,

    • (iv) a registered retirement savings plan,

    • (iv.1) a TFSA,

    • (v) a deferred profit sharing plan,

    • (vi) a registered education savings plan,

    • (vi.1) a registered disability savings plan,

    • (vii) a registered retirement income fund,

    • (viii) an employee benefit plan,

    • (ix) an employee trust,

    • (x) a mutual fund trust,

    • (xi) [Repealed, 2017, c. 33, s. 109]

    • (xii) a unit trust, or

    • (xiii) a retirement compensation arrangement,

    as each of those terms is defined for the purposes of the Income Tax Act or the Income Tax Regulations;

  • (b) an investment corporation, as that term is defined for the purposes of that Act;

  • (c) a mortgage investment corporation, as that term is defined for the purposes of that Act;

  • (d) a mutual fund corporation, as that term is defined for the purposes of that Act;

  • (e) a non-resident owned investment corporation, as that term is defined for the purposes of that Act;

  • (f) a corporation exempt from tax under that Act by reason of paragraph 149(1)(o.1) or (o.2) of that Act;

  • (f.1) an investment limited partnership; and

  • (g) a prescribed person or a person of a prescribed class.