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Excise Tax Act

Version of section 258.1 from 2007-06-22 to 2024-11-26:


Definition of qualifying motor vehicle

  •  (1) In this section, qualifying motor vehicle means a motor vehicle that is equipped with a device designed exclusively to assist in placing a wheelchair in the vehicle without having to collapse the wheelchair or with an auxiliary driving control to facilitate the operation of the vehicle by an individual with a disability.

  • Marginal note:Qualifying motor vehicle purchased in Canada

    (2) If

    • (a) a registrant makes a taxable supply by way of sale of a qualifying motor vehicle,

    • (b) the recipient has paid all tax payable in respect of the supply, and

    • (c) the supplier identifies in writing to the recipient a portion (in this subsection referred to as the “certified amount of the purchase price”) of the consideration for the supply that can reasonably be attributed to special features that have been incorporated into, or adaptations that have been made to, the vehicle

      • (i) for the purpose of its use by or in transporting an individual using a wheelchair, or

      • (ii) to equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability,

    the Minister shall, on application by the recipient filed within four years after the first day on which any tax in respect of the supply becomes payable, pay to the recipient a rebate of that portion of the total tax payable in respect of the supply that is equal to tax calculated on the certified amount of the purchase price.

  • Marginal note:Application to supplier

    (3) If

    • (a) a registrant has made a taxable supply by way of sale of a qualifying motor vehicle,

    • (b) tax has been paid or become payable in respect of the supply, and

    • (c) the recipient submits to the registrant, within four years after the first day on which any tax in respect of the supply becomes payable, an application for the rebate to which the recipient would be entitled under subsection (2) in respect of the vehicle if the recipient had paid all the tax payable in respect of the supply and applied for the rebate in accordance with that subsection,

    the registrant may pay to or credit in favour of the recipient the amount of the rebate.

  • Marginal note:Forwarding of application by supplier

    (4) If an application of a recipient for a rebate under subsection (2) is submitted to a registrant in the circumstances described in subsection (3),

    • (a) the registrant shall transmit the application to the Minister with the registrant’s return filed under Division V for the reporting period in which an amount on account of the rebate is paid or credited by the registrant to or in favour of the recipient;

    • (b) interest under subsection 297(4) is not payable in respect of the rebate; and

    • (c) the recipient is not entitled to claim any input tax credit in respect of the tax to which the amount of the rebate paid or credited by the registrant relates.

  • Marginal note:Joint and several liability

    (5) If, under subsection (3), a registrant pays to or credits in favour of a recipient an amount on account of a rebate and the registrant knows or ought to know that the recipient is not entitled to the rebate or that the amount paid or credited exceeds the rebate to which the recipient is entitled, the registrant and the recipient are jointly and severally or solidarily 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.

  • Marginal note:Qualifying motor vehicle purchased outside Canada or a participating province

    (6) If

    • (a) a supply by way of sale of a qualifying motor vehicle is made outside Canada or a participating province,

    • (b) the supplier identifies in writing to the recipient a portion (in this subsection referred to as the “certified amount of the purchase price”) of the consideration for the supply that can reasonably be attributed to special features that have been incorporated into, or adaptations that have been made to, the vehicle

      • (i) for the purpose of its use by or in transporting an individual using a wheelchair, or

      • (ii) to equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability,

    • (c) the recipient imports the vehicle or brings it into the participating province, and

    • (d) [Repealed, 2007, c. 18, s. 42]

    • (e) the recipient has paid all tax payable in respect of the importation or bringing in, as the case may be,

    the Minister shall, on application by the recipient filed within four years after the recipient imports the vehicle or brings it into the participating province, as the case may be, pay to the recipient a rebate of

    • (f) if the vehicle is imported, that portion of the total tax payable under Division III in respect of the vehicle that is calculated on the total of

      • (i) the portion of the certified amount of the purchase price that is included in determining the value of the vehicle under section 215, and

      • (ii) the amount of all duties and taxes, if any, payable under the Customs Tariff, the Special Import Measures Act or any other law relating to customs in respect of the importation and calculated on the portion of the certified amount of the purchase price that is included in determining the value of the vehicle under that section, and

    • (g) if the vehicle is brought into the participating province, that portion of the total tax payable under Division IV.1 in respect of the vehicle that is calculated on the portion of the certified amount of the purchase price that is included in determining the value of the vehicle to which the tax rate for the participating province applies.

  • Marginal note:Lease of qualifying motor vehicle

    (7) If, at any time after April 3, 1998, a registrant enters into a particular agreement in writing with a recipient for the taxable supply by way of lease of a motor vehicle that is, at that time, a qualifying motor vehicle,

    • (a) there shall not be included, in determining the tax payable in respect of any supply to that recipient by way of lease of the vehicle made under the particular agreement or under any agreement for the variation or renewal of that lease, the portion of the consideration for that supply that is identified in writing to the recipient by the supplier and can reasonably be attributed to special features that have been incorporated into, or adaptations that have been made to, the vehicle

      • (i) for the purpose of its use by or in transporting an individual using a wheelchair, or

      • (ii) to equip the vehicle with an auxiliary driving control that facilitates the operation of the vehicle by an individual with a disability; and

    • (b) if, at a later time, the recipient exercises an option under the particular agreement, or under an agreement for the variation or renewal of that lease, to purchase the vehicle, the vehicle is deemed, for the purposes of subsections (2) and (6), to be a qualifying motor vehicle at that later time.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2000, c. 30, s. 75
  • 2007, c. 18, s. 42

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