Excise Tax Act — E-15 184
specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property, the insurer shall be deemed (c) to have received a supply by way of sale of the property immediately before that time for consideration equal to the consideration for the particular supply, and (d) except if the supply deemed under paragraph (c) to have been received is a zero-rated supply, to have paid, immediately before that time, all tax payable in respect of the supply deemed to have been received, which is deemed to be equal to the amount determined by the formula A - B where A is (i) if (A) the property was last held by the person in a participating province before being transferred to the insurer, the property was so transferred before the day that is three years after the harmonization date for that province and the particular supply is either made outside Canada or is a zero-rated supply, or (B) either the property was last held by the person in a non-participating province before being transferred or the particular supply is a supply (other than a zero-rated supply) made in a non-participating province, tax under subsection 165(1) calculated on that consideration, and (ii) in any other case, the total of (A) tax under subsection 165(1) calculated on that consideration, and (B) tax under subsection 165(2) calculated on that consideration at the lesser of the tax rate for the participating province in which the particular supply is made and the tax rate for the participating province in which the property was last held by the person before being transferred, and B is the total of all amounts each of which is an input tax credit or a rebate under this Part that the insurer was entitled to claim in respect of the property or an improvement thereto. Lease of personal property (7) For the purposes of this Part, if, at a particular time, an insurer to whom personal property has been transferred from a person in circumstances in which subsection (1) applies makes a particular taxable supply of the property by way of lease, licence or similar arrangement for the first lease interval (within the meaning of subsection 136.1(1)) in respect of the arrangement, the insurer was not deemed under subsection (4) or (5) to have received a supply of the property at an earlier time and no tax would have been payable had the property been purchased in Canada from the person at the time the property was transferred, except if (a) the particular supply is made outside Canada or is a zero-rated supply, and (b) the property was transferred to the insurer before 1994 or was, at the time it was transferred, specified tangible personal property having a fair market value in excess of the prescribed amount in respect of the property, the insurer shall be deemed (c) to have received a supply by way of sale of the property immediately before the particular time, and (d) except if that supply is a zero-rated supply, to have paid, immediately before the particular time, all tax payable in respect of that supply, which is deemed to be equal to (i) if (A) the property was last held by the person in a participating province before being transferred to the insurer, the property was so transferred before the day that is three years after the harmonization date for that province and the particular supply is either made outside Canada or is a zero-rated supply, or (B) either the property was last held by the person in a non-participating province before being transferred or the particular supply is a supply (other than a zero-rated supply) made in a non-participating province, tax under subsection 165(1) calculated on the fair market value of the property at the time it was transferred, and (ii) in any other case, the total of (A) tax under subsection 165(1) calculated on that fair market value, and (B) tax under subsection 165(2) calculated on that fair market value at the lesser of the tax rate for the participating province in w