Excise Tax Act — E-15 217
Definitions 217 The following definitions apply in this Division. Canadian activity of a person means an activity of the person carried on, engaged in or conducted in Canada. ( activité au Canada ) ceding commission means an amount that is paid to a particular insurer by another insurer under an agreement for the supply of a financial service that includes the issuance, renewal, variation or transfer of ownership of a policy of reinsurance issued by the other insurer in respect of one or more particular insurance policies issued by the particular insurer and that compensates the particular insurer for property acquired, manufactured or produced, and for services acquired or performed, exclusively in Canada by the particular insurer in order to issue and administer the particular insurance policies. ( commission de réassurance ) duty means anything done by an employee in the course of, or in relation to, the office or employment of the employee. ( tâche ) employee includes an individual who agrees to become an employee. ( salarié ) external charge for a specified year of a qualifying taxpayer in respect of an outlay or expense described in any of paragraphs 217.1(2)(a) to (c) means the amount in respect of the outlay or expense determined by the formula A – B where A is the amount of the outlay or expense that (a) is allowed as a deduction, an allowance or an allocation for a reserve under the Income Tax Act in computing the qualifying taxpayer’s income for the specified year, or would be so allowed if (i) the qualifying taxpayer’s income were computed in accordance with that Act, (ii) the qualifying taxpayer carried on a business in Canada, and (iii) that Act applied to the qualifying taxpayer, and (b) may reasonably be regarded as being applicable to a Canadian activity of the qualifying taxpayer; and B is the total of all amounts, each of which is included in the amount determined under the description of A and is (a) a permitted deduction for the specified year or a preceding specified year of the qualifying taxpayer, other than a returned commission included in paragraph (b), or (b) if a particular amount, included in the amount determined under the description of A, is any part of the value of the consideration for a supply made to the qualifying taxpayer of a financial service that includes the issuance, renewal, variation or transfer of ownership of a policy of reinsurance in respect of one or more particular insurance policies issued by the qualifying taxpayer, an amount (in this description referred to as a returned commission ) included in the particular amount that (i) is attributable to expenses incurred exclusively in Canada by the qualifying taxpayer to issue and administer the particular insurance policies, (ii) is returned to the qualifying taxpayer as a ceding commission in respect of the particular insurance policies, and (iii) is required to be included under the Income Tax Act in computing the qualifying taxpayer’s income for the specified year or for another specified year of the qualifying taxpayer, or would be so required to be included if the conditions set out in subparagraphs (a)(i) to (iii) of the description of A applied to the qualifying taxpayer. ( frais externes ) imported taxable supply means (a) a taxable supply (other than a zero-rated or prescribed supply) of a service made outside Canada to a person who is resident in Canada, other than a supply of a service that is (i) acquired for consumption, use or supply exclusively in the course of commercial activities of the person or activities that are engaged in exclusively outside Canada by the person and that are not part of a business or an adventure or concern in the nature of trade engaged in by the person in Canada, (ii) consumed by an individual exclusively outside Canada (other than a training service the supply of which is made to a person who is not a consumer), (iii) in respect of real property situated outside Canada, (iv) a service (o