Excise Tax Act — E-15 186
Definition of unit 186 (0.1) In this section, unit means (a) in respect of a corporation, a share of the capital stock of the corporation; (b) in respect of a partnership, an interest of a person in the partnership; and (c) in respect of a trust, a unit of the trust. Operating corporations (0.2) For the purposes of this section, a particular corporation is at a particular time an operating corporation of another person that is a corporation, partnership or trust if, at the particular time, all or substantially all of the property of the particular corporation is property that was last manufactured, produced, acquired or imported by the particular corporation for consumption, use or supply by the particular corporation exclusively in the course of its commercial activities and (a) if the other person is a corporation or a trust, the particular corporation is, at the particular time, related to the other person; or (b) if the other person is a partnership, the particular corporation is, at the particular time, controlled by (i) the other person, (ii) a corporation that is controlled by the other person, (iii) a corporation that is related to a corporation described in subparagraph (ii), or (iv) a combination of persons described in subparagraphs (i) to (iii). Input tax credit (1) Unless subsection (2) applies, if at a particular time a registrant (in this subsection referred to as the “parent”) that is resident in Canada and that is a corporation, partnership or trust acquires, imports or brings into a participating province a particular property or service and if at the particular time a particular corporation is an operating corporation of the parent, the parent is deemed, for the purpose of determining an input tax credit of the parent, to have acquired or imported the particular property or service or brought it into the participating province, as the case may be, for use in the course of commercial activities of the parent to the extent that (a) the parent acquired or imported the particular property or service or brought it into the participating province, as the case may be, for the purpose of (i) selling or otherwise disposing of, purchasing or otherwise obtaining, or holding units or indebtedness of the particular corporation by the parent, or (ii) redeeming, issuing or converting or otherwise modifying units or indebtedness of the particular corporation by the particular corporation; (b) the parent acquired or imported the particular property or service or brought it into the participating province, as the case may be, for the purpose of issuing or selling units or indebtedness of the parent, the parent transfers to the particular corporation the proceeds from the issuance or sale by lending money to the particular corporation or by purchasing or otherwise obtaining from the particular corporation units or indebtedness of the particular corporation, and the proceeds that are transferred to the particular corporation are for use in the course of its commercial activities; or (c) if at the particular time all or substantially all of the property of the parent is property that was manufactured, produced, acquired or imported by the parent for consumption, use or supply exclusively in the course of its commercial activities, property that is units or indebtedness of operating corporations of the parent or a combination of such property, the parent acquired or imported the particular property or service or brought it into the participating province, as the case may be, for the purpose of carrying on, engaging in or conducting an activity of the parent other than (i) an activity that is primarily in respect of units or indebtedness of a person that is neither the parent nor an operating corporation of the parent, or (ii) an activity that is carried on, engaged in or conducted in the course of making an exempt supply by the parent unless the activity is a financial service that is (A) the lending or borrowing of units or inde