Excise Tax Act — E-15 253
ducted. 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 exceed the amount that would be an input tax credit of the partnership in respect of the property or service for the last reporting period of the partnership in its last fiscal year ending in that calendar year if (a) in the case of a musical instrument that is capital property of the individual, the partnership had, in that reporting period, (i) acquired the instrument by way of lease exclusively for use in activities of the partnership and for use in commercial activities thereof to the same extent that the individual’s consumption or use of the instrument during that calendar year in activities of the partnership was in commercial activities thereof, and (ii) paid tax in respect of the instrument equal to the amount determined by the formula A × B 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 C/D where C is the rate set out in subsection 165(1), and D is the total of 100% and the percentage determined for C, (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 E/F where E is the percentage determined in prescribed manner, and F is the total of 100% and the percentage determined for E, and (C) in any other case, the amount determined by the formula G/H where G is the total of the rate set out in subsection 165(1) and the percentage determined in prescribed manner, and H is the total of 100% and the percentage determined for G, and B is the capital cost allowance in respect of that instrument that was deductible under the Income Tax Act in computing the individual’s income from the partnership for that calendar year; (b) in the case of a motor vehicle or aircraft that is capital property of the individual, (i) the partnership had acquired the vehicle or aircraft in that reporting period in circumstances in which subsection 202(4) applies and had used the vehicle or aircraft during that last fiscal year of the partnership in commercial activities of the partnership to the same extent that the individual’s use of the vehicle or aircraft during that calendar year in activities of the partnership was in commercial activities thereof, and (ii) the capital cost allowance deductible in respect of that vehicle or aircraft under the Income Tax Act in computing the individual’s income from the partnership for that calendar year were the capital cost allowance so deductible in computing the income of the partnership for that last fiscal year of the partnership; and (c) in any other case, the partnership had (i) acquired the property or service exclusively for use in activities of the partnership and for use in commercial activities thereof to the same extent that the individual’s consumption or use of the property or service during that calendar year in activities of the partnership was in commercial activities thereof, and (ii) paid, in that reporting period, tax in respect of that acquisition equal to the amount determined by the formula A × B 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 C/D where C is the rate set out in subsection 165(1), and D is the total of 100% and the percentage determined for C, (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 E/F where E is the percentage determined in prescribed manner, and F is the total of 100% and the percentage determined for E, and (C) in any other case, the amount determined by the formula G/H where G is the total of the rate set out in subsection 165(1) and the percentage determin