Excise Tax Act

Marginal note:Non-resident rebate respecting installation services

• 252.41 (1) Where tangible personal property is supplied on an installed basis by a non-resident supplier who is not registered under Subdivision d of Division V to a particular person who is so registered and the supplier or another non-resident person who is not so registered is the recipient of a taxable supply in Canada of a service of installing, in real property located in Canada, the tangible personal property so that it can be used by the particular person,

  • (a) the Minister shall, on the application of the non-resident recipient of the service filed within one year after the completion of the service, pay a rebate to the non-resident recipient equal to the tax paid by the non-resident recipient in respect of the supply of the service to the non-resident recipient; and

  • (b) the particular person is deemed, for the purposes of this Part, to have received from the non-resident supplier of the tangible personal property a taxable supply of the service that is separate from and not incidental to the supply of the property and is for consideration equal to that part of the total consideration paid or payable by the particular person for the property and the installation of the property that can reasonably be attributed to the installation.

• Marginal note:Application to supplier

  (2) Where a non-resident person submits to a supplier an application for a rebate under subsection (1) to which the non-resident person would be entitled in respect of a supply made by the supplier to the non-resident person if the non-resident person had paid the tax in respect of the supply and had applied for the rebate in accordance with that subsection, the supplier may pay to, or credit in favour of, the non-resident person the amount of the rebate in which event the supplier shall transmit the application to the Minister with the supplier’s return filed under Division V for the reporting period in which the rebate is paid or credited and interest under subsection 297(4) is not payable in respect of the rebate.

• Marginal note:Joint and several liability

  (3) Where, under subsection (2), a supplier pays to, or credits in favour of, a person an amount on account of a rebate and the supplier knows or ought to know that the person is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the person is entitled, the supplier and the person are jointly and severally liable to pay to the Receiver General under section 264 the amount that was paid or credited on account of the rebate or the excess amount, as the case may be.