Select Luxury Items Tax Act — S-8.35 11
Where vessel journeys originate and terminate 11 (1) For the purposes of this section, a journey by a subject vessel originates at the location at which any of the following activities occur and terminates at the location where the subject vessel is next stopped and at which any of the following activities occur: (a) individuals embark on or disembark from the subject vessel; (b) goods are loaded onto or removed from the subject vessel; and (c) the subject vessel is stopped to allow for its servicing or refuelling or for emergency or safety purposes. Use in Canada — vessel (2) For the purposes of this section, if a journey by a subject vessel originates or terminates at a location in Canada, the subject vessel is deemed to be used in Canada for the duration of the entire journey. Qualifying activities — vessel (3) For the purposes of this section, except in prescribed circumstances, a subject vessel (other than a select subject vessel) is used in Canada in the course of a qualifying activity at any time if (a) the subject vessel is used in Canada at that time otherwise than for the leisure, recreation, sport or other enjoyment of (i) an owner of the subject vessel, (ii) a guest of an owner of the subject vessel on the subject vessel, or (iii) another person that has the right to use the subject vessel under a lease, licence or similar arrangement or a guest of the other person on the subject vessel; or (b) prescribed circumstances exist. Qualifying subject vessel (4) For the purposes of this Act, except in prescribed circumstances, a subject vessel (other than a select subject vessel) is a qualifying subject vessel of a person at a particular time that is on a particular day if the person is an owner of the subject vessel at the particular time and the amount determined by the following formula is greater than or equal to 0.9: (A + B + C) / (D + E + F) where A is (a) if the particular time is the time at which the person acquires ownership of the subject vessel, zero, and (b) in any other case, the total of all amounts, each of which is a duration of time that the subject vessel was used in Canada in the course of a qualifying activity during the period that ends on the particular day and begins on the later of (i) the day on which the person acquired ownership of the subject vessel, and (ii) the day that is one year before the particular day; B is the total of all amounts, each of which is a duration of time for which it can reasonably be expected that the subject vessel will be used in Canada in the course of a qualifying activity during the period that begins on the day after the particular day and that ends on (a) if it can reasonably be expected that the person will transfer ownership of the subject vessel before the day that is one year after the particular day, the day on which it can reasonably be expected that the person will transfer ownership of the subject vessel, and (b) in any other case, the day that is one year after the particular day; C is a prescribed amount; D is (a) if the particular time is the time at which the person acquires ownership of the subject vessel, zero, and (b) in any other case, the total of all amounts, each of which is a duration of time that the subject vessel was used in Canada during the period that ends on the particular day and begins on the later of (i) the day on which the person acquired ownership of the subject vessel, and (ii) the day that is one year before the particular day; E is the total of all amounts, each of which is a duration of time for which it can reasonably be expected that the subject vessel will be used in Canada during the period that begins on the day after the particular day and that ends on (a) if it can reasonably be expected that the person will transfer ownership of the subject vessel before the day that is one year after the particular day, the day on which it can reasonably be expected that the person will transfer ownership of the subject vessel to anoth