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

Dues

Marginal note:Dues in respect of employment

189 For the purposes of this Part, where an amount is paid by a person to an organization as

• (a) a membership due paid to a trade union as defined

  • (i) in section 3 of the Canada Labour Code, or

  • (ii) in any Act of the legislature of a province providing for the investigation, conciliation or settlement of industrial disputes,

  or to an association of public servants the primary object of which is to promote the improvement of the members’ conditions of employment or work,

• (b) a due that was, pursuant to the provisions of a collective agreement, retained by the person from an individual’s remuneration and paid to a trade union or association referred to in paragraph (a) of which the individual was not a member, or

• (c) a due to a parity or advisory committee or similar body, the payment of which was required under the laws of a province in respect of an individual’s employment,

the organization shall be deemed to have made an exempt supply to the person and the amount shall be deemed to be consideration for the supply.

Fees

Marginal note:Government fees

189.1 For the purposes of this Part, where a person who is the holder of, or an applicant for, a right the supply of which is an exempt supply described by paragraph 20(c) of Part VI of Schedule V is required to pay to a government or municipality or a board, commission or other body established by a government or municipality an amount that is levied for the purposes of recovering the costs of administration of a regulatory program relating to the right and a failure to pay the amount would result in a denial or loss of, a restriction in the exercise of, or a change in the person’s entitlements under, the right, the government, municipality or body, as the case may be, shall be deemed to have made an exempt supply to the person and the amount shall be deemed to be consideration for that supply.

Foreign Conventions

Marginal note:Foreign conventions

189.2 Where a sponsor of a foreign convention

• (a) makes a supply of an admission to the convention,

• (b) makes a supply by way of lease, licence or similar arrangement of real property for use by the recipient of the supply exclusively as the site for the promotion, at the convention, of property or services supplied by, or a business of, the recipient, or

• (c) makes a supply of related convention supplies to a recipient of a supply referred to in paragraph (b),

the supply shall be deemed to have been made otherwise than in the course of a commercial activity of the sponsor.

Real Property

Marginal note:Conversion to residential use

• 190 (1) Where at any time a person begins to hold or use real property as a residential complex and

  • (a) the property was

    • (i) last acquired by the person to hold or use as a residential complex, or

    • (ii) immediately before that time, held for supply, or used or held for use as capital property, in a business or commercial activity of the person,

  • (b) immediately before that time, the property was not a residential complex, and

  • (c) the person did not engage in the construction or substantial renovation of, and is not, but for this section, a builder of, the complex,

  for the purposes of this Part,

  • (d) the person shall be deemed to have substantially renovated the complex,

  • (e) the renovation shall be deemed to have begun at that time and to have been substantially completed at the earlier of the time the complex is occupied by any individual as a place of residence or lodging and the time the person transfers ownership of the complex to another person, and

  • (f) except where the person is

    • (i) a particular individual who acquires the property at that time to hold or use exclusively as a place of residence of the particular individual or another individual who is related to the particular individual or who is a former spouse or common-law partner of the particular individual, or

    • (ii) a personal trust that acquires the property at that time to hold or use exclusively as a place of residence of an individual who is a beneficiary of the trust,

  the person shall be deemed to be a builder of the complex.

• Marginal note:Idem

  (2) Where at any time an individual appropriates real property for the personal use or enjoyment of the individual, another individual related to the individual or a former spouse or common-law partner of the individual and, immediately before that time, the property

  • (a) was held for supply, or was used or held for use as capital property, in a business or commercial activity of the individual, and

  • (b) was not a residential complex,

  the individual shall, for the purposes of this Part, be deemed

  • (c) to have made and received a taxable supply by way of sale of the property immediately before that time, and

  • (d) to have paid as a recipient and to have collected as a supplier, at that time, tax in respect of the supply, calculated on the fair market value of the property at that time.

• Marginal note:Lease of land for residential use

  (3) Where

  • (a) a person who has an interest in land makes a supply of the land by way of lease, licence or similar arrangement and the supply is an exempt supply described by section 6.1 or paragraph 7(a) of Part I of Schedule V,

  • (b) the person at any time gives possession of the land to the recipient of the supply under the arrangement,

  • (c) the last use of the land by the person before that time was not under an arrangement for a supply referred to in paragraph (a),

  • (d) the person was not deemed under subsection 200(2), 206(4) or 207(1) to have made a supply of the land at or immediately before that time, and

  • (e) the recipient of the supply is not acquiring possession of the land for the purpose of

    • (i) constructing a residential complex thereon in the course of a commercial activity, or

    • (ii) making an exempt supply of the land described by section 6.1 of Part I of Schedule V,

  the person shall, for the purposes of this Part, be deemed

  • (f) to have made, immediately before that time, a taxable supply by way of sale of the land and to have collected, at that time, tax in respect of the supply calculated on the fair market value of the land at that time, and

  • (g) to have received, at that time, a taxable supply by way of sale of the land and to have paid, at that time, tax in respect of that supply calculated on the fair market value of the land at that time.

• Marginal note:First use of residential trailer park

  (4) Where

  • (a) a person makes a supply of a site in a residential trailer park of the person by way of lease, licence or similar arrangement and the supply is an exempt supply described by paragraph 7(b) of Part I of Schedule V,

  • (b) the person at any time gives possession or occupancy of the site to the recipient of the supply under the arrangement,

  • (c) none of the sites in the park were occupied immediately before that time under an arrangement for a supply referred to in paragraph (a), and

  • (d) either

    • (i) the last acquisition of the park by the person was not under an exempt supply described by section 5.3 of Part I of Schedule V and the person was not deemed

      • (A) under this subsection to have made before that time, or

      • (B) under subsection 200(2), 206(4) or 207(1) to have made at or immediately before that time

      a supply of land included in the park as a consequence of using the land for purposes of the park, or

    • (ii) the person was entitled, after the park or land was last acquired or deemed to have been supplied by the person, to claim an input tax credit in respect of the acquisition thereof or an improvement thereto,

  the person shall, for the purposes of this Part, be deemed

  • (e) to have made, immediately before that time, a taxable supply by way of sale of the park and to have collected, at that time, tax in respect of the supply calculated on the fair market value of the park at that time, and

  • (f) to have received, at that time, a taxable supply by way of sale of the park and to have paid, at that time, tax in respect of the supply calculated on the fair market value of the park at that time.

• Marginal note:First use of additional area

  (5) Where

  • (a) a person increases the area of land included in a residential trailer park of the person,

  • (b) the person makes a supply of a site in the area of land by which the park was increased (in this subsection referred to as the “additional area”) by way of lease, licence or similar arrangement and the supply is an exempt supply described by paragraph 7(b) of Part I of Schedule V,

  • (c) the person at any time gives possession or occupancy of the site to the recipient of the supply under the arrangement,

  • (d) none of the sites in the additional area were occupied immediately before that time under an arrangement for a supply referred to in paragraph (b), and

  • (e) either

    • (i) the last acquisition of the additional area by the person was not under an exempt supply described by section 5.3 of Part I of Schedule V and the person was not deemed

      • (A) under this section to have made before that time, or

      • (B) under subsection 200(2), 206(4) or 207(1) to have made at or before that time

      a supply of the additional area as a consequence of using the additional area for purposes of the park, or

    • (ii) the person was entitled, after the additional area was last acquired or deemed to have been supplied by the person, to claim an input tax credit in respect of the acquisition thereof or an improvement thereto,

  the person shall, for the purposes of this Part, be deemed

  • (f) to have made, immediately before that time, a taxable supply by way of sale of the additional area and to have collected, at that time, tax in respect of the supply calculated on the fair market value of the additional area at that time, and

  • (g) to have received, at that time, a taxable supply by way of sale of the additional area and to have paid, at that time, tax in respect of the supply calculated on the fair market value of the additional area at that time.

Marginal note:Construction of mobile or floating home

• 190.1 (1) For the purposes of this Part, any person who makes a supply of a mobile home or a floating home before it has been used or occupied by any individual as a place of residence or lodging shall be deemed to have engaged in the construction of the home and to have substantially completed the construction at the earlier of the time ownership of the home is transferred to the recipient of the supply and the time possession of the home is transferred to the recipient under the agreement for the supply.

• Marginal note:Substantial renovation of mobile or floating home

  (2) For the purposes of this Part, where a person engages in the substantial renovation of a mobile home or a floating home, the home shall be deemed not to have been used or occupied, at any time before the person began to substantially renovate the home, by any individual as a place of residence or lodging.

Marginal note:Self-supply of single unit residential complex or residential condominium unit

• 191 (1) For the purposes of this Part, where

  • (a) the construction or substantial renovation of a residential complex that is a single unit residential complex or a residential condominium unit is substantially completed,

  • (b) the builder of the complex

    • (i) gives possession or use of the complex to a particular person under a lease, licence or similar arrangement (other than an arrangement, under or arising as a consequence of an agreement of purchase and sale of the complex, for the possession or occupancy of the complex until ownership of the complex is transferred to the purchaser under the agreement) entered into for the purpose of its occupancy by an individual as a place of residence,

    • (ii) gives possession or use of the complex to a particular person under an agreement for

      • (A) the supply by way of sale of the building or part thereof in which the residential unit forming part of the complex is located, and

      • (B) the supply by way of lease of the land forming part of the complex or the supply of such a lease by way of assignment,

      other than an agreement for the supply of a mobile home and a site for the home in a residential trailer park, or

    • (iii) where the builder is an individual, occupies the complex as a place of residence, and

  • (c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of the complex with the particular person, is the first individual to occupy the complex as a place of residence after substantial completion of the construction or renovation,

  the builder shall be deemed

  • (d) to have made and received, at the later of the time the construction or substantial renovation is substantially completed and the time possession or use of the complex is so given to the particular person or the complex is so occupied by the builder, a taxable supply by way of sale of the complex, and

  • (e) to have paid as a recipient and to have collected as a supplier, at the later of those times, tax in respect of the supply calculated on the fair market value of the complex at the later of those times.

• Marginal note:Self-supply of residential condominium unit

  (2) For the purposes of this Part, where

  • (a) the construction or substantial renovation of a residential condominium unit is substantially completed,

  • (b) the builder of the unit gives possession of the unit to a particular person who is the purchaser under an agreement of purchase and sale of the unit at a time when the condominium complex in which the unit is situated is not registered as a condominium,

  • (c) the particular person or an individual who is a tenant or licensee of the particular person is the first individual to occupy the unit as a place of residence after substantial completion of the construction or renovation, and

  • (d) the agreement of purchase and sale is at any time terminated (otherwise than by performance of the agreement) and another agreement of purchase and sale of the unit between the builder and the particular person is not entered into at that time,

  the builder shall be deemed

  • (e) to have made and received, at the time the agreement is terminated, a taxable supply by way of sale of the unit, and

  • (f) except where possession of the unit was transferred to the particular person before 1991, to have paid as a recipient and to have collected as a supplier, at that time, tax in respect of the supply calculated on the fair market value of the unit at that time.

• Marginal note:Self-supply of multiple unit residential complex

  (3) For the purposes of this Part, where

  • (a) the construction or substantial renovation of a multiple unit residential complex is substantially completed,

  • (b) the builder of the complex

    • (i) gives, to a particular person who is not a purchaser under an agreement of purchase and sale of the complex, possession or use of any residential unit in the complex under a lease, licence or similar arrangement entered into for the purpose of the occupancy of the unit by an individual as a place of residence,

    • (i.1) gives possession or use of any residential unit in the complex to a particular person under an agreement for

      • (A) the supply by way of sale of the building or part thereof forming part of the complex, and

      • (B) the supply by way of lease of the land forming part of the complex or the supply of such a lease by way of assignment, or

    • (ii) where the builder is an individual, occupies any residential unit in the complex as a place of residence, and

  • (c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of a residential unit in the complex with the particular person, is the first individual to occupy a residential unit in the complex as a place of residence after substantial completion of the construction or renovation,

  the builder shall be deemed

  • (d) to have made and received, at the later of the time the construction or substantial renovation is substantially completed and the time possession or use of the unit is so given to the particular person or the unit is so occupied by the builder, a taxable supply by way of sale of the complex, and

  • (e) to have paid as a recipient and to have collected as a supplier, at the later of those times, tax in respect of the supply calculated on the fair market value of the complex at the later of those times.

• Marginal note:Self-supply of addition to multiple unit residential complex

  (4) For the purposes of this Part, where

  • (a) the construction of an addition to a multiple unit residential complex is substantially completed,

  • (b) the builder of the addition

    • (i) gives, to a particular person who is not a purchaser under an agreement of purchase and sale of the complex, possession or use of any residential unit in the addition under a lease, licence or similar arrangement entered into for the purpose of the occupancy of the unit by an individual as a place of residence,

    • (i.1) gives possession or use of any residential unit in the addition to a particular person under an agreement for

      • (A) the supply by way of sale of the building or part thereof forming part of the complex, and

      • (B) the supply by way of lease of the land forming part of the complex or the supply of such a lease by way of assignment, or

    • (ii) where the builder is an individual, occupies any residential unit in the addition as a place of residence, and

  • (c) the builder, the particular person, or an individual who has entered into a lease, licence or similar arrangement in respect of a residential unit in the addition with the particular person, is the first individual to occupy a residential unit in the addition as a place of residence after substantial completion of the construction of the addition,

  the builder shall be deemed

  • (d) to have made and received, at the later of the time the construction of the addition is substantially completed and the time possession or use of the unit is so given to the particular person or the unit is so occupied by the builder, a taxable supply by way of sale of the addition, and

  • (e) to have paid as a recipient and to have collected as a supplier, at the later of those times, tax in respect of the supply calculated on the fair market value of the addition at the later of those times.

• Marginal note:Reference to lease

  (4.1) A reference in this section to a “lease” in respect of land shall be read as a reference to a “lease, licence or similar arrangement”.

• Marginal note:Exception for personal use

  (5) Subsections (1) to (4) do not apply to a builder of a residential complex or an addition to a residential complex where

  • (a) the builder is an individual;

  • (b) at any time after the construction or renovation of the complex or addition is substantially completed, the complex is used primarily as a place of residence for the individual, an individual related to the individual or a former spouse or common-law partner of the individual;

  • (c) the complex is not used primarily for any other purpose between the time the construction or renovation is substantially completed and that time; and

  • (d) the individual has not claimed an input tax credit in respect of the acquisition of or an improvement to the complex.

• Marginal note:Exception for student residence

  (6) Subsections (1) to (4) do not apply to a builder of a residential complex or an addition to a residential complex where

  • (a) the builder is a university, public college or school authority; and

  • (b) the construction or renovation of the complex or addition is carried out, or the complex is acquired, primarily for the purpose of providing a place of residence for students attending the university or college or a school of the school authority.

• Marginal note:Exception for communal organizations

  (6.1) Subsections (1) to (4) do not apply to a builder of a residential complex or an addition to a residential complex where

  • (a) the builder is a community, society or body of individuals to which section 143 of the Income Tax Act applies; and

  • (b) the construction or substantial renovation of the complex or addition is carried out exclusively for the purpose of providing a place of residence for members of the community, society or body.

• Marginal note:Remote work site

  (7) For the purposes of this Part, where

  • (a) the builder of a residential complex or an addition to a residential complex is a registrant,

  • (b) the construction or substantial renovation of the complex or addition is carried out, or the complex is acquired, for the purpose of providing a place of residence or lodging for an individual at a location

    • (i) at which the individual is required to be in the performance of the individual’s duties as

      • (A) an employee of the registrant,

      • (B) a contractor, or an employee of the contractor, engaged by the registrant to render services to the registrant at that location, or

      • (C) a subcontractor, or an employee of the subcontractor, engaged by a contractor referred to in clause (B) to render services at that location that are acquired by the contractor for the purpose of supplying services to the registrant, and

    • (ii) at which, because of its remoteness from any established community, the individual could not reasonably be expected to establish and maintain a self-contained domestic establishment, and

  • (c) the registrant makes, under this subsection, an election in prescribed form containing prescribed information in respect of the complex or addition,

  until the complex is supplied by way of sale, or is supplied by way of lease, licence or similar arrangement primarily to persons who are not employees, contractors or subcontractors referred to in subparagraph (b)(i) who are acquiring the complex or residential units therein in the circumstances described in that subparagraph or individuals who are related to such employees, contractors or subcontractors, the supply of the complex or a residential unit in the complex as a place of residence or lodging is deemed not be a supply and any occupation of the complex or unit as a place of residence or lodging is deemed not to be occupation as a place of residence or lodging.

• (8) [Repealed, 1993, c. 27, s. 56]

• Marginal note:Substantial completion

  (9) For the purposes of this section, the construction or substantial renovation of a multiple unit residential complex or a condominium complex, or the construction of an addition to a multiple unit residential complex, shall be deemed to be substantially completed not later than the day all or substantially all of the residential units in the complex or addition are occupied after the construction or substantial renovation is begun.

• Marginal note:Transfer of possession attributed to builder

  (10) For the purposes of this section, if

  • (a) a builder of a residential complex or an addition to a multiple unit residential complex makes a supply of the complex or a residential unit in the complex or addition by way of lease, licence or similar arrangement and the supply is an exempt supply included in section 6.1 or 6.11 of Part I of Schedule V,

  • (b) the recipient of the supply is acquiring the complex or unit for use or supply in the course of making exempt supplies and, as part of an exempt supply, possession or use of the complex, unit or residential units in the complex is given by the recipient under a lease, licence or similar arrangement under which occupancy of the complex or unit is given to an individual as a place of residence or lodging, and

  • (c) the builder at any time gives possession of the complex or unit to the recipient under the arrangement,

  the builder shall be deemed to have at that time given possession of the complex or unit to an individual under a lease, licence or similar arrangement entered into for the purpose of its occupancy by an individual as a place of residence.