Excise Tax Act — E-15 167.11
Definitions 167.11 (1) The following definitions apply in this section. authorized foreign bank has the meaning assigned by section 2 of the Bank Act . ( banque étrangère autorisée ) foreign bank branch means a branch as defined in paragraph (b) of the definition branch in section 2 of the Bank Act . ( succursale de banque étrangère ) qualifying supply means a supply of property or a service that is made in Canada under an agreement for the supply (other than an agreement between a supplier that is a registrant and a recipient that is not a registrant at the time the agreement is entered into) and (a) that is made by a corporation resident in Canada related to the recipient; (b) that is made after June 27, 1999, and before (i) if the Superintendent makes an order under subsection 534(1) of the Bank Act in respect of the recipient after the particular day on which the Act enacting this section receives royal assent but before the day that is one year after the particular day, the day that is one year after the day on which the Superintendent makes the order, and (ii) in any other case, the day that is one year after the particular day referred to in subparagraph (i); and (c) that is received by a recipient that (i) is a non-resident person, (ii) is, or has filed an application with the Superintendent for an order under subsection 524(1) of the Bank Act to become, an authorized foreign bank, and (iii) acquired the property or service for consumption, use or supply by the recipient for the purpose of the establishment and commencement of business in Canada by the recipient as an authorized foreign bank at a foreign bank branch of the authorized foreign bank. ( fourniture admissible ) Supply of assets (2) For the purposes of this Part, if a supplier and a recipient of a qualifying supply make a joint election in accordance with subsection (7) in respect of the qualifying supply, (a) the supplier is deemed to have made, and the recipient is deemed to have received, a separate supply of each property and service that is supplied under the agreement for the qualifying supply for consideration equal to that part of the consideration for the qualifying supply that can reasonably be attributed to that property or service; (b) any part of the consideration for the qualifying supply attributed to goodwill is deemed to be attributed to a taxable supply of intangible personal property unless section 167.1 applies to the qualifying supply; and (c) subsections (3) to (6) apply to the supply of each property and service that is supplied under the agreement for the qualifying supply. Effect of election (3) For the purposes of this Part, if a supplier and a recipient make a joint election referred to in subsection (2) in respect of a qualifying supply made at any time, (a) no tax is payable in respect of a supply of any property or service made under the agreement for the qualifying supply other than (i) a taxable supply of a service that is to be rendered by the supplier, (ii) a taxable supply of a service unless paragraph 167(1)(a) applies to the qualifying supply, (iii) a taxable supply of property by way of lease, licence or similar arrangement, (iv) if the recipient is not a registrant, a taxable supply by way of sale of real property, (v) a taxable supply of property or a service, if the property or service was previously supplied under an agreement for a qualifying supply and, by reason of this subsection, no tax was payable in respect of that previous supply of property or service, and (vi) a taxable supply of intangible personal property (other than capital property) if the percentage determined by the following formula is greater than 10%: A - B where A is the extent (expressed as a percentage of the total use of the property by the supplier) to which the supplier used the property in commercial activities immediately before that time, and B is the extent (expressed as a percentage of the total use of the property by the recipient) to