Excise Tax Act — E-15 183
ed or repossessed personal property from a person before 1994, in circumstances in which subsection (1) applies or would, but for subsection (11), apply, begins at a particular time to use the property otherwise than in the making of a supply of the property, the following rules apply: (a) the creditor is deemed to have received, immediately after the particular time, a particular supply by way of sale of the property; and (b) where tax would have been payable had the property been purchased in Canada from the person at the time it was seized or repossessed, the creditor shall be deemed (i) to have made, at the particular time, a taxable supply of the property and to have collected, at the particular time, tax in respect of that supply equal to the amount determined by the formula (A/B) × C where A is (A) 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 (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 seized or repossessed, 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 seized after 1993 (6) For the purposes of this Part, where a creditor who has seized or repossessed personal property from a person after 1993, in circumstances in which subsection (1) applies or would, but for subsection (11), apply, begins at a particular time to use the property otherwise than in the making of a supply of the property, (a) the creditor 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 seized or repossessed, 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 the supply, which is deemed to be equal to the amount determined by the formula (A/B) × C where A is (I) the rate set out in subsection 165(1) if 1 the property is situated in a participating province at the particular time, it was seized or repossessed 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 seized or repossessed, or 2 the property is situated in a non-participating province at the particular time, and (II) 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 seized or repossessed; and (b) where tax would have been payable had the property been purchased in Canada from the person at the time it was seized or repossessed, the creditor 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 seized or repossess