Excise Tax Act — E-15 153
onsideration as otherwise determined under this Part, and B is the amount (in this subsection referred to as the “purchase credit”) that is equal to the least of (i) the value of A, (ii) the amount determined by the formula B 1 /B 2 where B 1 is the amount (in this subsection and subsection (4.5) referred to as the “unused total purchase credit”), if any, by which the consideration for the supply by way of sale exceeds the total of all amounts each of which is the purchase credit that was determined in calculating the amount deemed under this subsection to be the value of any consideration that, before the particular time, became due or was paid without having become due under the original leaseback agreement or a subsequent lease in respect of that agreement, and B 2 is the specified number of remaining lease payments under the particular agreement at the particular time, and (iii) if there is no unused total purchase credit, zero. Meaning of specified number of remaining lease payments (4.2) In subsection (4.1), the specified number of remaining lease payments , at a particular time, in respect of a particular agreement for the supply of property by way of lease that is an original leaseback agreement or a subsequent lease in respect of that agreement, is the amount determined by the formula A - B where A is the total number of payments that the lessee was obligated to make as consideration for the supplies of the property by way of lease under the particular agreement based on the terms of that agreement at the time it was entered into; and B is the total number of the payments referred to in the description of A that, before the particular time, became due or were paid by the lessee. Meaning of subsequent lease (4.3) In subsections (4.1) to (4.5), subsequent lease , in respect of an original leaseback agreement for the supply by way of lease of property to a lessee, means (a) an agreement for the supply by way of lease of the property that constitutes a new agreement between the lessee and an assignee of the rights and obligations of the person who is the supplier under the original leaseback agreement or under an agreement referred to in this paragraph or in paragraph (b); or (b) an agreement for the supply of the property to the lessee by way of lease that succeeds, as a new agreement, either the original leaseback agreement or a particular agreement referred to in paragraph (a) or in this paragraph upon a renewal or variation of that original leaseback agreement or particular agreement. Deemed subsequent lease (4.4) For the purposes of subsections (4.1), (4.2) and (4.5), if a supplier agrees, at any time, to renew, vary, terminate (otherwise than upon the exercise of an option to purchase) or assign a particular agreement for the supply of property to a lessee by way of lease that is an original leaseback agreement or a subsequent lease in respect of that agreement and the renewal, variation, termination or assignment does not constitute a novation of the particular agreement but has the effect of changing the number of payments that the lessee is obligated to make for supplies by way of lease of the property under the particular agreement, (a) the supplier and lessee are deemed to have, at that time, entered into a subsequent lease in respect of the original leaseback agreement; and (b) all supplies by way of lease for which consideration becomes due, or is paid without having become due, at or after the time the renewal, variation, termination or assignment takes effect that would, but for this subsection, be made under the particular agreement are deemed to be made under that subsequent lease and not under the particular agreement. Exercise of option to purchase (4.5) For the purposes of this Part other than a purpose referred to in paragraph (5)(a), if (a) a supply by way of sale of property is made to a lessee on the exercise by the lessee of an option to purchase the property provided for in an original leaseback