Excise Tax Act — E-15 153
Value of consideration 153 (1) Subject to this Division, the value of the consideration, or any part thereof, for a supply shall, for the purposes of this Part, be deemed to be equal to (a) where the consideration or that part is expressed in money, the amount of the money; and (b) where the consideration or that part is other than money, the fair market value of the consideration or that part at the time the supply was made. Combined consideration (2) For the purposes of this Part, where (a) consideration is paid for a supply and other consideration is paid for one or more other supplies or matters, and (b) the consideration for one of the supplies or matters exceeds the consideration that would be reasonable if the other supply were not made or the other matter were not provided, the consideration for each of the supplies and matters shall be deemed to be that part of the total of all amounts, each of which is consideration for one of those supplies or matters, that may reasonably be attributed to each of those supplies and matters. Barters between registrants (3) Where (a) the consideration or a part of the consideration for a supply of property of a particular class or kind is property of that class or kind, (b) both the supplier and the recipient are registrants, and (c) the property is acquired by the recipient and the consideration or that part thereof is acquired by the supplier as inventory for use exclusively in commercial activities of the recipient or supplier, as the case may be, the value of the consideration or that part thereof shall be deemed to be nil. Used tangible personal property trade-ins (4) Where, at the time a supplier makes a supply of tangible personal property to a recipient, the supplier accepts, in full or partial consideration for the supply, other property (in this subsection and subsection (5) referred to as the “trade-in”) that (a) is used tangible personal property or a leasehold interest therein, and (b) is acquired for consumption, use or supply in the course of a commercial activity of the supplier, and the recipient is not required to collect tax in respect of the supply of the trade-in, the value of the consideration for the supply made by the supplier is deemed, for the purposes of this Part, to be equal to the amount, if any, by which the value of the consideration for that supply (as otherwise determined under this Part) exceeds (c) except where paragraph (d) applies, the amount credited to the recipient in respect of the trade-in, and (d) where the supplier and the recipient are not dealing with each other at arm’s length at the time the supply is made and the amount credited to the recipient in respect of the trade-in exceeds the fair market value of the trade-in at the time ownership thereof is transferred to the supplier, that fair market value. Sale-leaseback arrangements (4.1) For the purposes of this Part, if (a) a person (in this subsection and subsections (4.2) to (4.5) referred to as the “lessee”) makes a supply by way of sale of tangible personal property to another person (in this subsection referred to as the “lessor”), (b) the lessee is not required to collect tax in respect of that supply, and (c) the lessor immediately makes a taxable supply by way of lease of the property to the lessee under an agreement (in this subsection and subsections (4.2) to (4.5) referred to as the “original leaseback agreement”), the value of the consideration for a supply of the property by way of lease that, at a particular time, becomes due or is paid without having become due under a particular agreement that is the original leaseback agreement or a subsequent lease in respect of that agreement is deemed to be equal to the amount determined by the formula A - B where A is the value of that consideration as otherwise determined under this Part, and B is the amount (in this subsection referred to as the “purchase credit”) that is equal to the least of (i) the value of A, (ii) the amount de