Excise Tax Act — E-15 178
Definitions 178 (1) The following definitions apply in this section and section 236.5. network commission of a sales representative of a person means an amount that is payable by the person to the sales representative under an agreement between the person and the sales representative (a) as consideration for a supply of a service, made by the sales representative, of arranging for the sale of a select product or a sales aid of the person; or (b) solely as a consequence of a supply of a service, made by any sales representative of the person described in paragraph (a) of the definition sales representative , of arranging for the sale of a select product or a sales aid of the person. ( commission de réseau ) network seller means a person notified by the Minister of an approval under subsection (5). ( vendeur de réseau ) sales aid of a particular person that is a network seller or a sales representative of a network seller means property (other than a select product of any person) that (a) is a customized business form or a sample, demonstration kit, promotional or instructional item, catalogue or similar personal property acquired, manufactured or produced by the particular person for sale to assist in the promotion, sale or distribution of select products of the network seller; and (b) is neither sold nor held for sale by the particular person to a sales representative of the network seller that is acquiring the property for use as capital property. ( matériel de promotion ) sales representative of a particular person means (a) a person (other than a person that is an employee of the particular person or that acts, in the course of its commercial activities, as agent in making supplies of select products of the particular person on behalf of the particular person) that (i) has a contractual right under an agreement with the particular person to arrange for the sale of select products of the particular person, and (ii) does not arrange for the sale of select products of the particular person primarily at a fixed place of business of the person other than a private residence; or (b) a person (other than a person that is an employee of the particular person or that acts, in the course of its commercial activities, as agent in making supplies of select products of the particular person on behalf of the particular person) that has a contractual right under an agreement with the particular person to be paid an amount by the particular person solely as a consequence of a supply of a service, made by a person described in paragraph (a), of arranging for the sale of a select product or a sales aid of the particular person. ( représentant commercial ) select product of a person means tangible personal property that (a) is acquired, manufactured or produced by the person for supply by the person for consideration, otherwise than as used property, in the ordinary course of business of the person; and (b) is ordinarily acquired by consumers by way of sale. ( produit déterminé ) Qualifying network seller (2) For the purposes of this section, a person is a qualifying network seller throughout a fiscal year of the person if (a) all or substantially all of the total of all consideration, included in determining the income from a business of the person for the fiscal year, for supplies made in Canada by way of sale is for (i) supplies of select products of the person, made by the person, by way of sales that are arranged for by sales representatives of the person (in this subsection referred to as “select supplies”), or (ii) where the person is a direct seller (as defined in section 178.1), supplies by way of sale of exclusive products (as defined in that section) of the person made by the person to independent sales contractors (as defined in that section) of the person at any time when an approval of the Minister for the application of section 178.3 to the person is in effect; (b) all or substantially all of the total of all consideration, inc