Excise Tax Act — E-15 120
Definitions 120 (1) In this section, capital property , in respect of a person, means property that is, or that would be if the person were a taxpayer under the Income Tax Act , capital property of the person within the meaning of that Act, other than property described in Class 12 or 14 of Schedule II to the Income Tax Regulations ; ( immobilisation ) commercial activity of a person means a business carried on by the person (other than a business carried on by an individual without a reasonable expectation of profit), except to the extent to which the business involves the making of exempt supplies (within the meaning assigned by subsection 123(1)) by the person; ( activité commerciale ) inventory of a person as of any time means items of tax-paid goods that are described in the person’s inventory in Canada at that time and that are (a) held at that time for sale, lease or rental separately, for a price or rent in money, to others in the ordinary course of a commercial activity of the person, or (b) building materials held at that time for use by the person in a business of constructing, renovating or improving buildings or structures carried on by the person, but not including any such goods that before that time have been incorporated into new construction or a renovation or improvement or have otherwise been delivered to a construction, renovation or improvement job site, and that are not (c) capital properties of the person, (d) held by the person for use in the construction, renovation or improvement of property that is or is to be capital property of the person, or (e) included in the description of any other person’s inventory at that time; ( inventaire ) sales tax means the consumption or sales tax imposed under Part VI; ( taxe de vente ) tax-paid goods means goods, acquired before 1991 by a person, that have not been previously written off in the accounting records of the person’s business for the purposes of the Income Tax Act and that are, as of the beginning of January 1, 1991, (a) new goods that are unused, (b) remanufactured or rebuilt goods that are unused in their condition as remanufactured or rebuilt goods, or (c) used goods and on the sale price or on the volume sold of which tax (other than tax payable in accordance with subparagraph 50(1)(a)(ii)) was imposed under subsection 50(1), was paid and is not, but for this section, recoverable. ( marchandises libérées de taxe ) Goods in inventory (2) Where, under a contract referred to in subsection 118(3), sales tax has been paid on instalments under the contract in respect of any goods included in the purchaser’s inventory and the goods have been delivered to the purchaser, or the title thereto has passed to the purchaser, before 1991, the goods shall be included in the inventory of that purchaser only to the extent of the instalments made before 1991 in respect thereof under the contract. Goods not expected to be sold (2.1) For the purposes of paragraph (a) of the definition inventory in subsection (1), that portion of the tax-paid goods that are described in a person’s inventory in Canada at any time that can reasonably be expected to be consumed or used by the person shall be deemed not to be held at that time for sale, lease or rental. Rebate of sales tax (3) Subject to this section, where a person who, as of January 1, 1991, is registered under Subdivision D of Division V of Part IX has any tax-paid goods in inventory at the beginning of that day, (a) where the tax-paid goods are goods other than used goods, the Minister shall, on application made by the person, pay to that person a rebate in accordance with subsections (5) and (8); and (b) where the tax-paid goods are used goods, the goods shall be deemed, for the purposes of section 176, to be used tangible personal property supplied in Canada by way of sale on January 1, 1991 to the person in respect of which tax was not payable by the person and to have been acquired for the purpose of supply in the co