Excise Tax Act — E-15 184
lar time, the total of the rate set out in subsection 165(1) and the tax rate for that province, and (B) in any other case, the rate set out in subsection 165(1), B is the total of 100% and the percentage determined for A, and C is the fair market value of the property at the time it was transferred, and (ii) to have paid, immediately after the particular time, tax in respect of the particular supply equal to the amount determined under subparagraph (i). Use of personal property transferred after 1993 (5) For the purposes of this Part, where an insurer to whom personal property has been transferred from a person after 1993, in circumstances in which subsection (1) applies, begins at a particular time to use the property otherwise than in the making of a supply of the property, (a) the insurer is deemed (i) to have received, immediately after the particular time, a supply by way of sale of the property, and (ii) except where (A) that supply is a zero-rated supply, or (B) in the case of property that was, at the time it was transferred, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property, tax would not have been payable had the property been purchased in Canada from the person at that time, to have paid, immediately after the particular time, all tax payable in respect of that supply, which is deemed to be equal to the amount determined by the formula (A/B) × C where A is (A) the rate set out in subsection 165(1) if (I) the property is situated in a participating province at the particular time, it was transferred before the day that is three years after the harmonization date for that province and tax would not have been payable had the property been purchased in Canada from the person at the time it was transferred, or (II) the property is situated in a non-participating province at the particular time, and (B) in any other case, the total of the rate set out in subsection 165(1) and the tax rate for the participating province in which the property is situated at the particular time, B is the total of 100% and the percentage determined for A, and C is the fair market value of the property at the time it was transferred; and (b) where tax would have been payable had the property been purchased in Canada from the person at the time it was transferred, the insurer is deemed to have made, at the particular time, a taxable supply of the property and to have collected, at the particular time, all tax payable in respect of that supply, which is deemed to be equal to the amount determined by the formula (A/B) × C where A is (i) if the property is situated in a participating province at the particular time, the total of the rate set out in subsection 165(1) and the tax rate for that province, and (ii) in any other case, the rate set out in subsection 165(1), B is the total of 100% and the percentage determined for A, and C is the fair market value of the property at the time it was transferred. Sale of personal property (6) For the purposes of this Part, where an insurer to whom personal property has been transferred from a person in circumstances in which subsection (1) applies makes at any time a particular taxable supply of the property by way of sale (other than a supply deemed under this Part to have been made), the insurer was not deemed under subsection (4), (5) or (7) to have received a supply of the property at an earlier time and no tax would have been payable by the insurer had the insurer purchased the property from the person in Canada at the time it was transferred, except where (a) the particular supply is made outside Canada or is a zero-rated supply, and (b) the property was transferred to the insurer before 1994 or was, at the time of the transfer, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property, the insurer shall be deemed (c) to have received a supply by way of sale