Select Luxury Items Tax Act — S-8.35 14
Value of consideration 14 (1) Subject to this Subdivision, for the purposes of this Act, the value of the consideration, or any part of the consideration, for a supply is deemed to be equal to (a) if the consideration or that part is expressed in money, the amount of the money; and (b) in any other case, the fair market value of the consideration or that part at the time at which the supply was made. Combined consideration (2) Subject to subsections (3) and (4), for the purposes of this Act, if (a) consideration is paid for a supply and other consideration is paid for one or more other supplies or matters, and (b) the consideration for one of the supplies or matters exceeds the consideration that would be reasonable if the other supply were not made or the other matter were not provided, the consideration for each of the supplies and matters is deemed to be that part of the total of all amounts, each of which is consideration for one of those supplies or matters, that may reasonably be attributed to each of those supplies and matters. Consideration for sale includes fees (3) For the purposes of this Act, if consideration is paid for the sale of a subject item and other consideration is paid for one or more other supplies or matters (other than an improvement in respect of the subject item) and the other consideration represents a fee or other similar charge in respect of the subject item or the sale, the following rules apply: (a) the other supplies and matters are deemed to form part of the sale; and (b) the other consideration is to be included in the consideration for the sale. Consideration for improvement includes fees (4) For the purposes of this Act, if consideration is paid for an improvement in respect of a subject item and other consideration is paid for one or more other supplies or matters (other than a sale of the subject item) and the other consideration represents a fee or other similar charge in respect of the improvement, the following rules apply: (a) the other supplies and matters are deemed to form part of the improvement; and (b) the other consideration is to be included in the consideration for the improvement. Incidental supplies (5) For the purposes of this Act, if a particular property or service is supplied together with any other property or service for a single consideration and if it may reasonably be regarded that the provision of the other property or service is incidental to the provision of the particular property or service, the other property or service is deemed to form part of the particular property or service so supplied. Non-arm’s length supplies (6) For the purposes of this Act, if a supply of property or a service is made between persons not dealing with each other at arm’s length for consideration less than the fair market value of the property or service at the time at which the supply is made, the consideration paid for the supply is deemed to be equal to the fair market value of the property or service at that time. Nominal consideration (7) For the purposes of this Act, if a supply of property or a service is made for no consideration or nominal consideration, the consideration paid for the supply is deemed to be equal to the fair market value of the property or service at the time at which the supply is made. Improvement by way of lease, etc. (8) For the purposes of this Act, if an improvement in respect of a subject item is provided by way of lease, licence or similar arrangement and the improvement is the provision of tangible personal property, the consideration paid for the improvement is deemed to be equal to the fair market value of the improvement at the time at which the improvement is completed. Value in Canadian currency (9) For the purposes of this Act, if the consideration for a supply is expressed in a foreign currency, the value of the consideration is to be computed on the basis of the value of that foreign currency in Canadian currency on the day that the supply i