PART IX

DEEMED SUPPLIES AND PRESCRIBED SUPPLIES

1. Notwithstanding any other Part of this Schedule, a supply of property that is deemed under any of sections 129, 129.1, 171, 171.1 and 172, subsections 183 (1) and (4) and 184(1) and (3) and sections 196.1 and 268 of the Act to have been made or received at any time is made where the property is situated at that time.

2. Notwithstanding any other Part of this Schedule, a supply of property or a service is made in a province if the supply is deemed under Part IX of the Act or regulations made under that Part to be made in the province.

3. Notwithstanding any other Part of this Schedule, a supply of property or a service is made in a province if the supply is prescribed to be made in the province.

SCHEDULE X

NON-TAXABLE PROPERTY AND SERVICES FOR PURPOSES OF DIVISION IV.1 OF PART IX

PART I

NON-TAXABLE PROPERTY FOR PURPOSES OF SUBDIVISION A

(Subsections 220.05(3) and 220.06(3))

1. Property that is at any time brought into a participating province and that is described in heading No. 98.01, 98.10 or 98.12 of Schedule I to the Customs Tariff to the extent that the property would not be subject to customs duties under that Act.

2. Conveyances temporarily brought into a participating province, by a person who is resident in that province, to be employed in the international non-commercial transportation of that person and accompanying persons using the same conveyance.

3. Conveyances and baggage temporarily brought into a participating province by a non-resident person for use by that person in that province.

4. Arms, military stores and munitions of war brought into a participating province by the Government of Canada in replacement of or in anticipation or actual exchange for similar goods loaned to or exchanged or to be exchanged with the governments of a foreign country designated by the Governor in Council under heading No. 98.10 of Schedule I to the Customs Tariff, under such regulations as the Minister may make for purposes of heading No. 98.11 of that Act.

5. Property that is clothing or books brought into a participating province for charitable purposes, and photographs, not exceeding three, where they are brought into a participating province other than for the purpose of sale.

6. Property, (other than advertising matter, tobacco or an alcoholic beverage) that is a casual donation sent by a person in a non-participating province to a person in a participating province, or brought into a particular participating province by a person who is not resident in the participating provinces as a gift to a person in that participating province, where the fair market value of the property does not exceed $60, under such regulations as the Minister may make for purposes of heading No. 98.16 of Schedule I to the Customs Tariff.

7. Property that is brought into a participating province for a period not exceeding six months for the purpose of display at a convention (within the meaning assigned by the Display Goods Temporary Importation Regulations made under the Customs Tariff) or a public exhibition at which the goods of various manufacturers or producers are displayed.

8. Property that is brought into a participating province on a temporary basis after having been removed from Mexico or the United States, where the property is

    (a) intended for display or demonstration;

    (b) commercial samples;

    (c) advertising films; or

    (d) conveyances or containers based in the United States or Mexico engaged in the international traffic of goods.

9. Property that is at any time brought into a participating province by an individual who

    (a) was formerly resident in the participating province and is, at that time, returning to resume residence in the participating province after being resident in another province for a period of not less than one year,

    (b) is a resident of the participating province who is, at that time, returning after being absent from the participating province for a period of not less than one year, or

    (c) is, at that time, entering the province with the intention of establishing a residence for a period of not less than twelve months, (other than a person who enters Canada in order to reside in Canada for the purpose of employment for a temporary period not exceeding 36 months or for the purpose of studying at an institute of learning)

where the property is for the individual's personal or household use and was owned and in the individual's possession before that time, provided that, where the property was owned and in the individual's possession for less than 31 days prior to the time when it is brought into the participating province

    (d) the individual has paid any retail sales tax applicable to the property in the province from which the property has been brought, and

    (e) the individual is not entitled to claim a rebate or a refund of that retail sales tax.

10. Property that is brought into a participating province, where the property is

    (a) personal and household effects of an individual who died outside the participating provinces and was, at the time of death, resident in a participating province, or

    (b) personal and household effects received, by an individual who is resident in a participating province, as a result or in anticipation of the death of an individual who was not resident in a participating province,

where the property is given as a gift or bequest to an individual who is resident in a participating province.

11. Medals, trophies and other prizes, not including usual merchantable goods, that are won outside the participating provinces in competitions, that are bestowed, received or accepted outside the participating provinces or that are donated by persons outside the participating provinces, for heroic deeds, valour or distinction.

12. Printed matter that is to be made available to the general public, without charge, for the promotion of tourism, where the printed matter is brought into a participating province

    (a) by or on the order of a foreign government or a government outside the participating province or by an agency or representative of such a government; or

    (b) by a board of trade, chamber of commerce, municipal or automobile association or similar organization to which it was supplied for no consideration, other than shipping and handling charges.

13. Property that is brought into a participating province by a charity or a public institution and that has been donated to the charity or the institution.

14. Property that is brought into a participating province by a person where it is supplied to the person for no consideration, other than shipping and handling charges, as a replacement part under a warranty in respect of tangible personal property.

15. Property that is brought into a participating province, the supply of which is included in any of Parts I to IV and VIII of Schedule VI.

16. Containers that are brought into a participating province where, because of regulations made under Note 11(c) to Chapter 98 of Schedule I to the Customs Tariff, they would, if they were imported, be imported free of customs duties under that Act.

17. Money or certificates or other documents evidencing a right that is a financial instrument.

18. Property that is brought into a participating province by a person after having been supplied to the person by another person in circumstances in which tax was payable in respect of the property by the person under subsection 165(2) or section 218.1 of the Act.

19. Property that a person brings at any time into a participating province and that at that time is being supplied in a non-participating province to the person by way of lease, licence or similar arrangement under which continuous possession or use of the property is provided for a period of more than three months and in circumstances in which tax under subsection 165(1) is payable by the person in respect of that supply.

20. Property that is brought into a participating province by a person after having been imported by the person in circumstances in which

    (a) tax was not payable under section 212 of the Act in respect of the property because of section 213 of the Act; or

    (b) tax was payable under section 212.1 of the Act and the person was not entitled to a rebate of that tax under section 261.2 of the Act.

21. Property that is brought into a participating province by a person after having been used in, and removed from, a participating province by the person and in respect of which the person was not entitled to claim a rebate under section 261.1.

22. Property, other than a returnable container (within the meaning assigned by subsection 226(1)) or a specified motor vehicle, that is brought into a participating province by a registrant (other than a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST) Regulations) for consumption, use or supply exclusively in the course of commercial activities of the registrant.

23. Prescribed property brought into a participating province in prescribed circumstances, subject to such terms and conditions as may be prescribed.

24. A specified motor vehicle that is brought into a participating province by a person after having been supplied to the person by way of sale in a non-participating province in circumstances in which tax was not payable under subsection 165(1) of the Act in respect of the supply.

25. A mobile home or a floating home that has been used or occupied in Canada as a place of residence for individuals.

26. Property referred to in subsection 178.3(1) or 178.4(1) of the Act where it is brought into a participating province by an independent sales contractor (within the meaning of section 178.1 of the Act) who is not a distributor in respect of whom an approval granted under subsection 178.2(4) on application made jointly with a direct seller is in effect.

PART II

NON-TAXABLE PROPERTY AND SERVICES FOR PURPOSES OF SUBDIVISION B

(Subsection 220.08(3))

1. A supply of property or a service to a registrant (other than a registrant whose net tax is determined under section 225.1 of the Act or under Part IV or V of the Streamlined Accounting (GST) Regulations) who is acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the registrant.

2. A zero-rated supply.

3. A supply of a service (other than a custodial or nominee service in respect of securities or precious metals of the person) in respect of tangible personal property that is removed from the participating provinces as soon after the service is performed as is reasonable having regard to the circumstances surrounding the removal and is not consumed, used or supplied in the participating provinces after the service is performed and before the removal of the property.

4. A supply of a service rendered in connection with criminal, civil or administrative litigation outside the participating provinces, other than a service rendered before the commencement of such litigation.

5. A supply of a transportation service.

6. A supply of a telecommunication service.

7. A prescribed supply of property or a service where the property or service is acquired by the recipient of the supply in prescribed circumstances, subject to such terms and conditions as may be prescribed.

255. (1) The Act is amended in the manner and to the extent set out in the schedule.

(2) Subsection (1) comes into force on April 1, 1997.

PART III

TRANSITIONAL PROVISIONS

Deregistra-
tion of public service body

256. Where, under subsection 242(2) of the Excise Tax Act, the Minister of National Revenue receives a request from a public service body to cancel the registration of the body at any time in the two-year period commencing on April 23, 1996 and that registration was not one which had become effective in that period and for which an application under subsection 240(3) of that Act had been made by the body, paragraph 242(2)(b) of that Act does not apply in respect of the request and where the registration is cancelled at that time,

    (a) subsection 171(3) of that Act does not apply to deem the body to have, at or immediately before that time, made or received supplies of property of the body that was held by the body immediately before that time, to have collected tax or to have, immediately before that time, ceased to use such property in commercial activities;

    (b) paragraph 171(4)(b) of that Act does not apply for the purpose of determining the net tax of the body for the last reporting period of the body beginning before that time; and

    (c) in determining the input tax credits of the body for the first reporting period of the body ending after the body next becomes a registrant,

      (i) subsection 171(1) of that Act does not apply to any property referred to in paragraph (a), and

      (ii) paragraph 171(2)(a) of that Act does not apply to any tax that was included in determining an input tax credit of the body for a reporting period of the body ending before that first reporting period.

Small supplier divisions of a public service body

257. Where at any time in the two-year period commencing on April 23, 1996 a branch or division of a public service body that is a registrant becomes a small supplier division within the meaning of subsection 129(1) of the Excise Tax Act,

    (a) subsection 129(6) of that Act does not apply to deem the body to have, immediately before that time, made a supply of any property that was held by the body immediately before that time for consumption, use or supply in the course of activities engaged in by the body through the branch or division or to have collected tax in respect of the property;

    (b) any consumption, use or supply of the property in the course of activities engaged in by the body through the branch or division during the period beginning at that time and ending at the time the branch or division ceases to be a small supplier division is deemed, for the purposes of subsections 129.1(4) to (6) of that Act, not to be in the course of activities engaged in through a small supplier division; and

    (c) paragraph 129(7)(e) of that Act does not apply for the purpose of determining the net tax of the body for its reporting period that includes that time.

Charities and change in use caused by enactment

258. Where, because of the enactment of a provision of this Act amending the Excise Tax Act, a charity (within the meaning assigned by subsection 123(1) of that Act, as amended by subsection 1(1)), is deemed under subsection 200(2), 203(2) or 206(4) or (5) of that Act to have made a supply of property and to have collected, at any time, tax in respect of the supply, for the purpose of determining the amount of tax that is deemed under that subsection to have been collected or paid at that time, the amount of tax calculated on the fair market value of the property at that time is deemed to be equal to zero.

Application of subsection 334(1) of the Excise Tax Act

259. Subsection 334(1) of the Excise Tax Act does not apply for the purposes of subsections 1(15) to (17) and (19) to (21), 23(5), 24(2), 33(12), 59(13), 60(4), 62(4), 64(6) and (8), 69(11), 76(2), 86(2), 88(3), 89(2), 116(5) and (6) and 145(2).

Application to imported goods

260. Where a provision of the Excise Tax Act, as enacted or amended by this Act, applies to goods imported on or after a particular day, that provision also applies to goods imported before that day that were not accounted for under section 32 of the Customs Act before that day.