Excise Tax Act — E-15 150
Election for exempt supplies 150 (1) For the purposes of this Part, where at any time a person who is a member of a closely related group of which a listed financial institution is a member files an election made jointly by the person and a corporation that is also a member of the group at that time, every supply between the person and the corporation of property by way of lease, licence or similar arrangement or of a service that is made at a time when the election is in effect and that would, but for this subsection, be a taxable supply is deemed to be a supply of a financial service. Exceptions (2) Subsection (1) does not apply to (a) property held or services rendered by a member of a closely related group as a participant in a joint venture with another person while an election under section 273 made jointly by the member and the other person is in effect; (b) an imported taxable supply, as defined in section 217; or (c) a supply of services in relation to the clearing or settlement of cheques and other payment items under the national payments system of the Canadian Payments Association if the recipient (in this paragraph referred to as the “related purchaser”) is acquiring all or part of those services for the purpose of making a supply of exempt services to (i) an unrelated party, or (ii) a supplier that is a member of a closely related group of which the related purchaser is a member and that acquires all or part of the exempt services for the purpose of making a supply of exempt services to an unrelated party or to a supplier described by this subparagraph. Definitions (2.1) The following definitions apply in subsection (2). exempt services means services prescribed by section 3 of the Financial Services (GST/HST) Regulations . ( services exonérés ) unrelated party , in respect of a supply of services, means a person that is not a member of a closely related group of which the supplier is a member and that is acquiring the services for the purpose of making a supply of services in relation to the clearing or settlement of cheques and other payment items under the national payments system of the Canadian Payments Association. ( tiers non lié ) Form and manner of filing (3) An election under subsection (1) relating to supplies between a member of a closely related group and a corporation shall (a) be made in prescribed form containing prescribed information; (b) specify the day the election is to become effective; and (c) be filed by the member with the Minister in prescribed manner on or before the day on or before which a return under Division V for the reporting period of the member in which the election is to become effective is required to be filed. Effect of election (4) An election under subsection (1) shall be effective for the period beginning on the day specified in the election and ending on the earliest of (a) the day either member ceases to be a member of the closely related group, (b) the first day the closely related group does not include a listed financial institution (other than a person that is a financial institution only by reason of section 151), and (c) the day specified in the revocation of the election, which day is at least 365 days after the day specified in the election. Form of revocation (4.1) A revocation of an election made under subsection (1) by a member of a closely related group and a corporation shall (a) be made jointly in prescribed form containing prescribed information by the member and the corporation; (b) specify the day on which the revocation is to become effective; and (c) be filed with the Minister in prescribed manner on or before (i) the particular day that is the earlier of (A) the day on or before which the member is required to file a return under Division V for the reporting period of the member that includes the day specified in the revocation, and (B) the day on or before which the corporation is required to file a return under Division V for the reporting period o