Excise Tax Act — E-15 253
Employees and partners 253 (1) Where (a) a musical instrument, motor vehicle, aircraft or any other property or a service is or would, but for subsection 272.1(1), be regarded as having been acquired, imported or brought into a participating province by an individual who is (i) a member of a partnership that is a registrant, or (ii) an employee of a registrant (other than a listed financial institution), (a.1) in the case of an individual who is a member of a partnership, the instrument, vehicle, aircraft or other property or service acquired, imported or brought into a participating province was not acquired or imported by the individual on the account of the partnership, (b) the individual has paid the tax (in this subsection referred to as the “tax paid by the individual”) payable in respect of the acquisition or importation of the property or service, or the bringing into a participating province of the property, as the case may be, and (c) in the case of an acquisition, importation or bringing into a participating province, of a musical instrument, the individual is not entitled to claim an input tax credit in respect of the instrument, the Minister shall, subject to subsections (2) and (3), pay a rebate in respect of the property or service to the individual for each calendar year equal to the amount determined by the formula A × (B - C) where A is (a) where the tax paid by the individual includes only tax imposed under subsection 165(1) or section 212 or 218, the amount determined by the formula D/E where D is the rate set out in subsection 165(1), and E is the total of 100% and the percent­age determined for D, (b) where the tax paid by the individual does not include any tax imposed under any of those provisions, the amount determined by the formula F/G where F is the percentage determined in prescribed manner, and G is the total of 100% and the percent­age determined for F, and (c) in any other case, the amount determined by the formula H/I where H is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and I is the total of 100% and the percent­age determined for H, B is an amount equal to (a) the capital cost allowance in respect of the instrument, vehicle or aircraft, (b) the amount in respect of the acquisition and importation of the other property imported by the individual (not exceeding the total of the value of that property determined under section 215 and the tax calculated on it), or (c) the amount in respect of (i) the supply by way of lease, licence or similar arrangement of the instrument, vehicle or aircraft, (ii) the supply of the service, or (iii) the supply in Canada of the other property, as the case may be, that was deducted under the Income Tax Act in computing the individual’s income for the year from an office or employment or from the partnership, as the case may be, and in respect of which the individual did not receive an allowance from a person, other than an allowance in respect of which the person certifies, in prescribed form containing prescribed information, that, at the time the allowance was paid, the person did not consider (d) the allowance to be a reasonable allowance for the purposes of subparagraph 6(1)(b)(v), (vi), (vii) or (vii.1) of that Act, or (e) where that person is a partnership of which the individual is a member, that the allowance would be a reasonable allowance for the purposes of subparagraph 6(1)(b)(v), (vi), (vii) or (vii.1) of that Act if the individual were an employee of that partnership at that time, and C is the total of all amounts that the individual received or is entitled to receive from the individual’s employer or the partnership, as the case may be, as a reimbursement in respect of the amount that was so deducted. Restriction on rebate to partner (2) The rebate in respect of property or a service payable under subsection (1) for a calendar year to an individual who is a member of a partnership shall not