Excise Tax Act (R.S.C., 1985, c. E-15)

DIVISION IV.1Tax on Property and Services Brought Into a Participating Province

Marginal note:Definitions

220.01 The following definitions apply in this Division.

provincial authority

autorité provinciale

provincial authority means any department or agency of a province that is empowered under the laws of that province to collect, at the time when a specified motor vehicle is registered in the province, any specified provincial tax imposed in respect of the specified motor vehicle. (autorité provinciale)

specified provincial tax

taxe provinciale déterminée

specified provincial tax means

• (a) in the case of a vehicle registered in the province of Nova Scotia, the tax imposed under Part IIA of the Revenue Act, S.N.S. 1995-96, c. 17, as amended from time to time;

• (b) in the case of a vehicle registered in the province of New Brunswick, the tax imposed under Part V of the Harmonized Sales Tax Act, S.N.B. 1997, c. H-1.01, as amended from time to time;

• (c) in the case of a vehicle registered in the province of Newfoundland and Labrador, the tax imposed under the Retail Sales Tax Act, R.S.N.L. 1990, c. R-15, as amended from time to time; and

• (d) in the case of a vehicle registered in any other participating province, a prescribed tax. (taxe provinciale déterminée)

specified value

valeur déterminée

specified value, in respect of a specified motor vehicle that a person is required to register under the laws of a participating province relating to the registration of motor vehicles, means the value that would be attributed to the specified motor vehicle by the provincial authority for that province for the purpose of calculating the specified provincial tax payable if, at the time of registration, that tax were payable in respect of the specified motor vehicle. (valeur déterminée)

tangible personal property

bien meuble corporel

tangible personal property includes a mobile home that is not affixed to land and a floating home. (bien meuble corporel)

Marginal note:Carriers

220.02 Where a particular person brings property into a province on behalf of another person, for the purposes of this Division, the other person and not the particular person is deemed to have brought the property into the province.

Marginal note:In transit

220.03 Where at any time a person brings tangible personal property into a province in the course of transporting property from a place outside the province to another place outside the province, and the property is not stored in the province for purposes that are not incidental to the transportation, the person is deemed for the purposes of this Division not to have brought the property into the province at that time.

Marginal note:Selected listed financial institutions

220.04 If tax under this Division would, in the absence of this section, become payable by a person when the person is a selected listed financial institution, that tax is not payable unless it is a prescribed amount of tax.

SUBDIVISION ATax on Tangible Personal Property

Marginal note:Tax in participating province

• 220.05 (1) Subject to this Part, if at a particular time a person brings tangible personal property into a participating province from another province, the person shall pay tax to Her Majesty in right of Canada equal to the amount determined in prescribed manner.

• Marginal note:When tax payable

  (2) Tax under subsection (1) on property brought into a participating province by a person becomes payable

  • (a) in the case of a specified motor vehicle that the person is required to register under the laws of the province relating to the registration of motor vehicles, on the earlier of the day the person so registers the vehicle and the day on or before which the person is required to register the vehicle; and

  • (b) in any other case, on the day the property is brought into the province.

• Marginal note:Non-taxable property

  (3) No tax is payable under subsection (1)

  • (a) in respect of property that is included in Part I of Schedule X and is not prescribed property; or

  • (b) in prescribed circumstances.

• Marginal note:Pension entities

  (3.1) No tax is payable under subsection (1) in respect of property if a person that is a pension entity of a pension plan is the recipient of a particular supply of the property made by a participating employer of the pension plan and

  • (a) the amount determined for B in the formula in paragraph 172.1(5)(c) in respect of a supply of the same property that is deemed to have been made by the participating employer under paragraph 172.1(5)(a) is greater than zero; or

  • (b) the amount determined for B in the formula in paragraph 172.1(6)(c) in respect of every supply deemed to have been made under paragraph 172.1(6)(a) of an employer resource (as defined in subsection 172.1(1)) consumed or used for the purpose of making the particular supply is greater than zero.

• Marginal note:Application in offshore areas

  (4) Subsection (1) does not apply to property brought into the Nova Scotia offshore area or the Newfoundland offshore area by a person unless the property is brought into the area for consumption, use or supply in the course of an offshore activity.

Marginal note:Supply by unregistered non-resident

• 220.06 (1) Subject to this Part, where a person is the recipient of a taxable supply (other than a zero-rated or prescribed supply) of tangible personal property that is, at a particular time, delivered or made available to the person in a participating province, or sent by mail or courier to an address in the participating province, by a non-resident supplier who is not registered under subdivision d of Division V, the person shall pay tax to Her Majesty in right of Canada equal to the amount determined by the formula

  A × B

  where

  A

  is the tax rate for the participating province; and

  B

  is

  • (a) where the supply of the property was made to the person by way of sale by a non-resident person with whom the person dealt at arm’s length, the lesser of the value of the consideration paid or payable in respect of the supply and the fair market value of the property at the particular time,

  • (b) notwithstanding paragraph (a), in the case of prescribed property supplied in prescribed circumstances, the value determined in the prescribed manner, and

  • (c) in any other case, the fair market value of the property at the particular time.

• Marginal note:When tax payable

  (2) Tax under subsection (1) in respect of property supplied to a person in a participating province becomes payable on the day the property is delivered or made available to the person in the province.

• Marginal note:Non-taxable property

  (3) No tax is payable under subsection (1)

  • (a) in respect of property that is a specified motor vehicle that is required to be registered under the laws of a participating province relating to the registration of motor vehicles, or that is included in Part I of Schedule X and is not prescribed property; or

  • (b) in prescribed circumstances.

• Marginal note:Application in offshore areas

  (4) Subsection (1) does not apply to a supply of property that is delivered or made available to the recipient in the Nova Scotia offshore area or the Newfoundland offshore area, or that is sent to the recipient at an address in the Nova Scotia offshore area or the Newfoundland offshore area, unless the property is acquired by the recipient for consumption, use or supply in the course of an offshore activity.