PART III

INTANGIBLE PERSONAL PROPERTY

1. In this Part, ``Canadian rights'', in respect of intangible personal property, means that part of the property that can be used in Canada.

2. A supply of intangible personal property is made in a province if

    (a) in the case of property that relates to real property,

      (i) all or substantially all of the real property that is situated in Canada is situated in the province, or

      (ii) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the real property is situated outside the province;

    (b) in the case of property that relates to tangible personal property,

      (i) all or substantially all of the tangible personal property that is ordinarily located in Canada is ordinarily located in the province, or

      (ii) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the tangible personal property is ordinarily located outside the province;

    (c) in the case of property that relates to services to be performed,

      (i) all or substantially all of the services that are to be performed in Canada are to be performed in the province, or

      (ii) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the services are to be performed outside the province; and

    (d) in any other case,

      (i) all or substantially all of the Canadian rights in respect of the property can be used only in the province, or

      (ii) the place of negotiation of the supply is in the province and the property can be used otherwise than exclusively outside the province.

3. Subject to section 2, where a supply of intangible personal property is made and

    (a) in the case of intangible personal property that relates to real property,

      (i) the real property that is situated in Canada is situated primarily in the participating provinces, and

      (ii) where the place of negotiation of the supply is outside Canada, all or substantially all of the real property is situated in Canada,

    (b) in the case of intangible personal property that relates to tangible personal property,

      (i) the tangible personal property that is ordinarily located in Canada is ordinarily located primarily in the participating provinces, and

      (ii) where the place of negotiation of the supply is outside Canada, all or substantially all of the personal property is ordinarily located in Canada,

    (c) in the case of intangible personal property that relates to services to be performed,

      (i) the services to be performed in Canada are to be performed primarily in the participating provinces, and

      (ii) where the place of negotiation of the supply is outside Canada, all or substantially all of the services are to be performed in Canada, and

    (d) in the case of intangible personal property that does not relate to real property, tangible personal property or services to be performed,

      (i) the Canadian rights in respect of the intangible personal property cannot be used otherwise than primarily in the participating provinces, and

      (ii) where the place of negotiation of the supply is outside Canada, the property cannot be used otherwise than exclusively in Canada,

the supply of the intangible personal property is made in the participating province in which the greatest proportion of the real property that is situated in the participating provinces is situated, the tangible personal property ordinarily located in the participating provinces is ordinarily located, the services to be performed in the participating provinces are to be performed, or the Canadian rights that can be used only in the participating provinces can be used, as the case may be.

PART IV

REAL PROPERTY

1. A supply of real property is made in a province if the property is situated in the province.

2. A supply of a service in relation to real property is made in a province if

    (a) all or substantially all of the real property that is situated in Canada is situated in the province; or

    (b) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the real property is situated outside the province.

3. Subject to section 2, where a supply of a service in relation to real property is made and the real property that is situated in Canada is situated primarily in participating provinces, the supply is made in the participating province in which the greatest proportion of the real property that is situated in the participating provinces is situated, unless the place of negotiation of the supply is outside Canada and it is not the case that all or substantially all of the property is situated in Canada.

PART V

SERVICES

1. In this Part, ``Canadian element'' of a service means the portion of the service that is performed in Canada.

2. Subject to Parts IV and VI to VIII, a supply of a service is made in a province if

    (a) all or substantially all of the Canadian element of the service is performed in the province; or

    (b) the place of negotiation of the supply is in the province and it is not the case that all or substantially all of the service is performed outside the province.

3. Subject to section 2, where the Canadian element of a service is performed primarily in the participating provinces, the supply of the service is made in the participating province in which the greatest proportion of the Canadian element is performed, unless the place of negotiation of the supply is outside Canada and it is not the case that all or substantially all of the service is performed in Canada.

PART VI

TRANSPORTATION SERVICES

1. The definitions in this section apply in this Part.

``continuous journey'' has the meaning assigned by section 1 of Part VII of Schedule VI.

``destination'' of a freight transportation service means the place specified by the shipper of the property where possession of the property is transferred to the person to whom the property is consigned or addressed by the shipper.

``freight transportation service'' has the meaning assigned by section 1 of Part VII of Schedule VI.

``leg'' of a journey on a conveyance means a part of the journey that begins where passengers embark or disembark the conveyance or where it is stopped to allow for its servicing or refuelling and ends where it is next stopped for any of those purposes.

``origin'' of a continuous journey has the meaning assigned by section 1 of Part VII of Schedule VI.

``stopover'', in respect of a continuous journey, has the meaning assigned by section 1 of Part VII of Schedule VI except that it does not include, in the case of a continuous journey of an individual or group of individuals that does not include transportation by air and the origin and termination of which are in Canada, any place outside Canada where, at the time the journey begins, the individual or group is not scheduled to be outside Canada for an uninterrupted period of at least 24 hours during the course of the journey.

``termination'' of a continuous journey has the meaning assigned by section 1 of Part VII of Schedule VI.

2. A supply of a passenger transportation service that is part of a continuous journey is made in a province if,

    (a) where the ticket or voucher issued in respect of the passenger transportation service included in the continuous journey that is provided first specifies the origin of the continuous journey, the origin is a place in the province and the termination, and all stopovers, in respect of the continuous journey are in Canada; and

    (b) in any other case, the place of negotiation of the supply is in the province.

3. Where a supply by way of sale of tangible personal property or a service (other than a passenger transportation service) is made to an individual on board a conveyance in the course of a business of supplying passenger transportation services and physical possession of the property is transferred to the individual, or the service is wholly performed, on board the conveyance during any leg of the journey that begins in any participating province and ends in any participating province, the supply is made in the participating province in which that leg of the journey begins.

4. A supply by a person of a service of transporting an individual's baggage in connection with a passenger transportation service supplied by the person to the individual is made in a province if the supply of the transportation service is made in the province.

5. Subject to Part VII, a supply of a freight transportation service is made in a province if the destination of the service is in the province.

PART VII

POSTAGE

1. The definitions in this section apply in this Part.

``postage stamp''
« timbre-
poste »

``postage stamp'' means a stamp authorized by the Canada Post Corporation for use as evidence of the payment of postage, but does not include a postage meter impression, a permit imprint or any ``business reply'' indicia or item bearing that indicia.

``permit imprint''
« marque de permis »

``permit imprint'' means an indicia the use of which as evidence of the payment of postage exclusively by a person is authorized under an agreement between the Canada Post Corporation and the person, but does not include a postage meter impression or any ``business reply'' indicia or item bearing that indicia.

2. A supply of a postage stamp or a postage-paid card, package or similar item (other than an item bearing a ``business reply'' indicia) that is authorized by the Canada Post Corporation is made in a province if the supplier delivers the stamp or item in the province to the recipient of the supply and, where the stamp or item is used as evidence of the payment of postage for a mail delivery service, the supply of the service is made in that province, unless

    (a) the supply of the service is made pursuant to a bill of lading; or

    (b) the consideration for the supply of the service is $5 or more and the address to which the mail is sent is not in a participating province.

3. Where the payment of postage for a mail delivery service supplied by the Canada Post Corporation is evidenced by a postage meter impression printed by a meter, the supply of the service is made in a province if the ordinary location of the meter, as determined at the time the recipient of the supply pays an amount to the Corporation for the purpose of paying that postage, is in the province, unless the supply is made pursuant to a bill of lading.

4. Where the payment of postage for a mail delivery service supplied by the Canada Post Corporation otherwise than pursuant to a bill of lading is evidenced by a permit imprint, the supply of the service is made in the province in which the recipient of the supply deposits the mail with the Corporation in accordance with the agreement between the recipient and the Corporation authorizing the use of the permit imprint.

PART VIII

TELECOMMUNICATION SERVICES

1. For the purposes of this Part, the billing location for a telecommunication service supplied to a recipient is in a province if,

    (a) where the consideration paid or payable for the service is charged or applied to an account that the recipient has with a person who carries on the business of supplying telecommunication services and the account relates to telecommunications facilities that are used or are available for use by the recipient to obtain telecommunication services, all those telecommunications facilities are ordinarily located in the province; and

    (b) in any other case, the telecommunications facility used to initiate the service is located in the province.

2. A supply of a telecommunication service (other than a service referred to in section 3) is made in a province if,

    (a) in the case of a telecommunication service of making telecommunications facilities available,

      (i) all of those facilities are ordinarily located in the province, or

      (ii) where not all of those telecommunications facilities are ordinarily located in the province, the invoice for the supply of the service is sent to an address in the province; and

    (b) in any other case,

      (i) the telecommunication is emitted and received in the province,

      (ii) the telecommunication is emitted or received in the province and the billing location for the service is in the province, or

      (iii) the telecommunication is emitted in the province and is received outside the province and the billing location for the service is not in a province in which the telecommunication is emitted or received.

3. A supply of a telecommunication service of granting to the recipient of the supply sole access to a telecommunications channel, within the meaning assigned by section 136.4 of the Act, is made in a province if the supply is deemed under that section to be made in the province.