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42-43 ELIZABETH II
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CHAPTER 9
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An Act to amend the Excise Tax Act and a
related Act
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[Assented to 12th May, 1994]
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Her Majesty, by and with the advice and
consent of the Senate and House of Commons
of Canada, enacts as follows:
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| R.S., c. E-15;
R.S., c. 15 (1st
Supp.), cc. 1,
7, 42 (2nd
Supp.), cc. 18,
28, 41, 42
(3rd Supp.),
cc. 12, 47 (4th
Supp.); 1988,
c. 65; 1989, c.
22; 1990, c.
45; 1991, c.
42; 1992, cc.
1, 27, 28, 29;
1993, cc. 25,
27, 28, 38
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| 1990, c. 45, s.
12(1)
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1. (1) The definition ``estimated federal
sales tax'' in subsection 121(1) of the Excise
Tax Act
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``estimated
federal sales
tax''
« taxe de
vente fédérale
estimative »
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``estimated federal sales tax'' for a residential
complex means the prescribed amount in
respect of the complex;
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(2) Subsection (1) shall be deemed to have
come into force on December 17, 1990 and
any regulations made for the purposes of
the definition ``estimated federal sales tax''
in subsection 121(1) of the Excise Tax Act, as
enacted by subsection (1), may have effect
from that date.
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| 1990, c. 45 s.
12(1)
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2. (1) The definitions ``capital property'',
``small supplier'' and ``taxation year'' in
subsection 123(1) of the Act are replaced by
the following:
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``capital
property''
« immobilisati
on »
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``capital property'', in respect of a person,
means property that is, or would be if the
person were a taxpayer under the Income
Tax Act, capital property of the person
within the meaning of that Act, other than
property described in Class 12, 14 or 44 of
Schedule II to the Income Tax Regulations;
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``small
supplier''
« petit
fournisseur »
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``small supplier'', at any time, means a person
who is at that time a small supplier under
section 148 or 148.1;
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``taxation
year''
« année
d'imposition »
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``taxation year'' of a person means
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(a) where the person is a taxpayer, within
the meaning of that term in the Income
Tax Act (other than an unincorporated
person exempt because of
subsection 149(1) of that Act from tax
under Part I of that Act on all or part of the
person's taxable income), the taxation
year of the person for the purposes of that
Act, and
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(b) in any other case, the period that
would be the taxation year of the person
for the purposes of that Act if the person
were a corporation;
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| 1990, c. 45, s.
12(1); 1993,
c. 27, s. 10(3)
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(2) Subparagraphs (d)(i) and (ii) of the
definition ``constructeur'' in
subsection 123(1) of the French version of
the Act are replaced by the following:
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(i) dans le cas d'un immeuble
d'habitation en copropriété ou d'un
logement en copropriété, soit à un
moment où l'immeuble n'est pas
enregistré à titre d'immeuble
d'habitation en copropriété, soit avant
qu'il soit occupé à titre résidentiel ou
d'hébergement,
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(ii) dans les autres cas, avant qu'il soit
occupé à titre résidentiel ou
d'hébergement;
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(3) The definition ``capital property'' in
subsection 123(1) of the Act, as enacted by
subsection (1), applies to property acquired
after April 26, 1993.
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(4) The definition ``small supplier'' in
subsection 123(1) of the Act, as enacted by
subsection (1), shall be deemed to have
come into force on April 1, 1993.
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(5) The definition ``taxation year'' in
subsection 123(1) of the Act, as enacted by
subsection (1), shall be deemed to have
come into force on June 10, 1993.
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(6) Subsection (2) shall be deemed to have
come into force on December 17, 1990.
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| 1993, c. 27, s.
13(1)
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3. (1) The portion of paragraph 129(1)(b)
of the Act before subparagraph (i) is
replaced by the following:
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(b) would be a small supplier under
section 148 if
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(2) Subsection (1) shall be deemed to have
come into force on April 1, 1993.
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4. (1) The Act is amended by adding the
following after section 141:
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| Meaning of
``endeavour''
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141.01 (1) In this section, ``endeavour'' of
a person means
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(a) a business of the person, other than a
business in the ordinary course of which the
person has not made, and does not intend to
make, supplies;
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(b) an adventure or concern in the nature of
trade of the person; or
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(c) the making of a supply by the person of
real property of the person, including
anything done by the person in the course of
or in connection with the making of the
supply.
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| Acquisition
for purpose of
making
supplies
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(2) Where a person acquires or imports
property or a service for consumption or use in
the course of an endeavour of the person, the
person shall, for the purposes of this Part, be
deemed to have acquired or imported the
property or service
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(a) for consumption or use in the course of
commercial activities of the person, to the
extent that the property or service is
acquired or imported by the person for the
purpose of making taxable supplies in the
course of that endeavour; and
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(b) for consumption or use otherwise than in
the course of commercial activities of the
person, to the extent that the property or
service is acquired or imported by the
person
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(i) for the purpose of making supplies in
the course of that endeavour that are not
taxable supplies, or
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(ii) for a purpose other than the making of
supplies in the course of that endeavour.
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| Use for
purpose of
making
supplies
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(3) Where a person consumes or uses
property or a service in the course of an
endeavour of the person, that consumption or
use shall, for the purposes of this Part, be
deemed to be
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(a) in the course of commercial activities of
the person, to the extent that the
consumption or use is for the purpose of
making taxable supplies in the course of
that endeavour; and
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(b) otherwise than in the course of
commercial activities of the person, to the
extent that the consumption or use is
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(i) for the purpose of making supplies in
the course of that endeavour that are not
taxable supplies, or
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(ii) for a purpose other than the making of
supplies in the course of that endeavour.
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| Free supplies
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(4) Where
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(a) a supplier makes a taxable supply (in
this subsection referred to as a ``free
supply'') of property or a service for no
consideration or nominal consideration in
the course of a particular endeavour of the
supplier, and
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(b) it can reasonably be regarded that
among the purposes (in this subsection
referred to as the ``specified purposes'') for
which the free supply is made is the purpose
of facilitating, furthering or promoting
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(i) the acquisition, consumption or use of
other property or services by any other
person, or
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(ii) an endeavour of any person,
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the following rules apply:
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(c) to the extent that the supplier acquired or
imported a particular property or service for
the purpose of making the free supply of
that property or service or for consumption
or use in the course of making the free
supply, the supplier shall be deemed, for the
purposes of subsection (2), to have acquired
or imported the particular property or
service
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(i) for use in the course of the particular
endeavour, and
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(ii) for the specified purposes and not for
the purpose of making the free supply,
and
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(d) to the extent that the supplier consumed
or used a particular property or service for
the purpose of making the free supply, the
supplier shall be deemed, for the purposes
of subsection (3), to have consumed or used
the particular property or service for the
specified purposes and not for the purpose
of making the free supply.
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| Method of
determining
extent of use,
etc.
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(5) The methods used by a person in a fiscal
year to determine
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(a) the extent to which properties or
services are acquired or imported by the
person for the purpose of making taxable
supplies or for other purposes, and
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(b) the extent to which the consumption or
use of properties or services is for the
purpose of making taxable supplies or for
other purposes,
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shall be fair and reasonable and shall be used
consistently by the person throughout the
year.
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| Application to
other
provisions
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(6) Where
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(a) a particular provision of this Part, other
than subsections (2) to (4), deems certain
circumstances or facts to exist, and
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(b) that deeming is dependent, in whole or
in part, on the particular circumstance that
property or a service is or was consumed or
used, or acquired or imported for
consumption or use, to a certain extent in
the course of, or otherwise than in the
course of, commercial activities or other
activities,
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that certain extent shall be determined under
subsection (2) or (3), as the case requires, for
the purpose of determining whether the
particular circumstance exists, but where it is
so determined that the particular circumstance
exists and all other circumstances necessary
for the particular provision to apply exist, the
deeming by the particular provision shall
apply notwithstanding subsections (2) and (3).
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| Idem
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(7) Where a provision of this Part deems the
consideration for a supply not to be
consideration for the supply, a supply to be
made for no consideration or a supply not to
have been made by a person, that deeming
shall not apply for the purposes of any of
subsections (1) to (4).
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(2) Subsection (1) shall be deemed to have
come into force on December 17, 1990
except that
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(a) in applying subsection 141.01(2) of the
Act, as enacted by subsection (1), before
October 1992, the portion before
paragraph (a) shall be read as follows:
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(2) Notwithstanding subsection 141(5),
where a person acquires or imports property or
a service for consumption or use in the course
of an endeavour of the person, the person
shall, for the purposes of this Part, be deemed
to have acquired or imported the property or
service
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(b) in applying subsection 141.01(3) of the
Act, as enacted by subsection (1), before
October 1992, the portion before
paragraph (a) shall be read as follows:
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(3) Notwithstanding subsection 141(5),
where a person consumes or uses property or
a service in the course of an endeavour of the
person, that consumption or use shall, for the
purposes of this Part, be deemed to be
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(c) subsection 141.01(4) of the Act, as
enacted by subsection (1), does not apply
for the purposes of determining
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(i) any amount claimed (other than an
amount deemed under
paragraph 296(5)(a) of the Act to have
been claimed) in a return under
Division V, or in an application under
Division VI, of Part IX of the Act filed
on or before February 14, 1994, or
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(ii) any change in use of property
occurring on or before that day.
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| 1990, c. 45, s.
12(1)
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5. (1) Section 147 of the Act is repealed.
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(2) Subsection (1) shall be deemed to have
come into force on December 17, 1990.
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6. (1) The Act is amended by adding the
following after section 148:
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| Meaning of
``gross
revenue''
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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
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(a) the total of all amounts each of which is
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(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,
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(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,
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(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),
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(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
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(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,
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and that is not included in determining the
total under this paragraph for a preceding
fiscal year of the person,
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exceeds
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(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.
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| Charity as
small supplier
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(2) For the purposes of this Part, a person
who is a charity at any time in a particular
fiscal year of the person is a small supplier
throughout the particular fiscal year if
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(a) the particular fiscal year is the first fiscal
year of the person;
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(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 $175,000 or less; or
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(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 $175,000 or less.
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(2) Subsection (1) shall be deemed to have
come into force on April 1, 1993.
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| 1993, c. 27, s.
30(1)
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7. (1) Subsection 164.1(1) is amended by
striking out the word ``and'' at the end of
paragraph (a) and by replacing
paragraph (b) with the following:
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(b) feed that is a complete feed, supplement,
macro-premix, micro-premix or mineral
feed (other than a trace mineral salt feed),
the supply of which in bulk quantities of at
least 20 kg would be a zero-rated supply
included in Part IV of Schedule VI; and
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(c) by-products of the food processing
industry and plant or animal products, the
supply of which in bulk quantities of at
least 20 kg would be a zero-rated supply
included in Part IV of Schedule VI.
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(2) Subsection (1) applies to supplies of
property delivered to recipients after
June 10, 1993.
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