Excise Tax Act — E-15 217.1
med to be tax in respect of a supply of the attributable property or attributable service; and (c) the extent to which the qualifying taxpayer acquired the attributable property or attributable service for consumption, use or supply in the course of commercial activities of the qualifying taxpayer is deemed to be the same extent as that to which the whole or part of the outlay or expense, which corresponds to the qualifying expenditure, was made or incurred to consume, use or supply the attributable property or attributable service in the course of commercial activities of the qualifying taxpayer. Qualifying rule for credits and rebates — internal charge (7) If tax (in this subsection referred to as “internal tax”) under section 218.01 or subsection 218.1(1.2) in respect of an internal charge becomes payable by a qualifying taxpayer, or is paid by the qualifying taxpayer without having become payable, and the internal charge is determined based in whole or in part on the inclusion of an outlay made, or an expense incurred, outside Canada by the qualifying taxpayer, the following rules apply for the purpose of determining an input tax credit or an eligible amount , as defined in subsection 261.01(1), of the qualifying taxpayer: (a) the whole or part of property (in this subsection and subsection (8) referred to as “internal property”) or of a qualifying service (in this subsection and subsection (8) referred to as an “internal service”) to which the outlay or expense is attributable is deemed to have been supplied to the qualifying taxpayer at the time the outlay was made or the expense was incurred; (b) the amount of the internal tax that can reasonably be attributed to the outlay or expense is deemed to be tax (in this paragraph referred to as “attributed tax”) in respect of the supply of the internal property or the internal service, and the attributed tax is deemed to have become payable at the time the internal tax becomes payable by the qualifying taxpayer or is paid by the qualifying taxpayer without having become payable; and (c) the extent to which the qualifying taxpayer acquired the internal property or internal service for consumption, use or supply in the course of commercial activities of the qualifying taxpayer is deemed to be the same extent as that to which the outlay or expense was made or incurred to consume, use or supply the internal property or internal service in the course of commercial activities of the qualifying taxpayer. Input tax credits (8) For the purpose of determining an input tax credit of a qualifying taxpayer under section 169 (a) in respect of attributable property or an attributable service, the reference in that section to “property or a service” is to be read as a reference to “attributable property or an attributable service, within the meaning of those terms in paragraph 217.1(6)(a)”; and (b) in respect of internal property or an internal service, the reference in that section to “property or a service” is to be read as a reference to “internal property or an internal service, within the meaning of those terms in paragraph 217.1(7)(a)”. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2010, c. 12, s. 62; 2016, c. 7, s. 66; 2017, c. 33, s. 126