Excise Tax Act — E-15 178.4
rmining the net tax of the distributor for the particular reporting period or a subsequent reporting period, in a return under Division V filed by the distributor within four years after the day on or before which the return under Division V for the particular reporting period is required to be filed. Idem (4) Where (a) at a particular time a distributor of a direct seller makes a supply of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the distributor, (b) after March 1993 a particular independent sales contractor of the direct seller (other than the distributor) (i) makes a supply of the product that is (A) a zero-rated supply, (B) a supply made outside Canada, or (C) a supply in respect of which the recipient is not required to pay tax because of an Act of Parliament, (ii) makes a supply of the product to a person other than an independent sales contractor of the direct seller for consideration (A) that is less than the suggested retail price of the product at the particular time and more than nominal, and (B) on which was calculated tax that was paid by the person, or (iii) makes a supply of the product to a person other than an independent sales contractor of the direct seller for no consideration or for nominal consideration or appropriates the product for the consumption, use or enjoyment of the particular contractor, and (c) the distributor pays to, or credits in favour of, the particular contractor an amount in respect of the product equal to (i) where subparagraph (b)(i) applies, tax calculated on the suggested retail price of the product at the particular time, and (ii) where subparagraph (b)(ii) or (iii) applies, the amount determined by the formula A - B where A is the tax calculated on the suggested retail price of the product at the particular time, and B is (A) where subparagraph (b)(ii) applies, tax calculated on the consideration for the supply of the product by the particular contractor, and (B) where subparagraph (b)(iii) applies, tax calculated on the consideration for the supply of the product to the particular contractor determined without reference to paragraph (1)(a), the distributor may deduct the amount determined under paragraph (c), in determining the net tax for the particular reporting period of the distributor in which the payment or credit is given or a subsequent reporting period, in a return under Division V filed by the distributor within four years after the day on or before which the return under Division V for the particular reporting period is required to be filed. Adjustment where supply not in participating province (5) Where (a) at a particular time a distributor of a direct seller makes a supply in a participating province of an exclusive product of the direct seller in circumstances in which an amount is required under paragraph (1)(d) to be added in determining the net tax of the distributor, (b) included in the amount required under paragraph (1)(d) to be added in determining the net tax of the distributor is tax payable under subsection 165(2) in respect of the supply, (c) a particular independent sales contractor of the direct seller (other than the distributor) makes a supply of the product outside the participating provinces, and (d) the distributor pays to, or credits in favour of, the particular contractor an amount in respect of the product equal to the amount of the tax payable under subsection 165(2) calculated on the suggested retail price of the product at the particular time, the distributor may deduct the amount determined under paragraph (d) in determining the net tax for the particular reporting period of the distributor in which the payment or credit is given or a subsequent reporting period, in a return under Division V filed by the distributor within four years after the day on or before which the return under Division V for the particular reporting period