Excise Tax Act — E-15 354
Prepayments of rent and royalties after specified pre-implementation date 354 (1) Subject to subsection (4), where (a) a taxable supply of property by way of lease, licence or similar arrangement is made (i) in a participating province by a registrant to a person, or (ii) outside the participating provinces to a person to whom the property is delivered or made available, or physical possession of the property is transferred, in a participating province, and (b) consideration for the supply that is rent, royalty or a similar payment attributable to a period on or after the implementation date for that participating province became due on or after the specified pre-implementation date for that participating province and before the implementation date for that province or was paid on or after that specified pre-implementation date and before that implementation date without having become due, that consideration is deemed, for the purpose of applying subsection 165(2), 218.1(1) or 220.08(1) to the supply, as the case may require, to have become due on that implementation date and not to have been paid before that implementation date. Prepayments of rent and royalties before specified pre-implementation date (2) Subject to subsection (4), where (a) a taxable supply of property by way of lease, licence or similar arrangement is made (i) in a participating province by a registrant to a person who is not a consumer, or (ii) outside the participating provinces to a person who is not a consumer and to whom either the property is delivered or made available, or physical possession of the property is transferred, in a participating province, and (b) consideration for the supply that is a rent, royalty or similar payment attributable to a period on or after the implementation date for that participating province became due after the announcement date for that participating province and before the specified pre-implementation date for that province or was paid after that announcement date and before that specified pre-implementation date without having become due, the following rules apply: (c) tax under subsection 165(2), 218.1(1) or 220.08(1), as the case may require, is, notwithstanding subsection 218.1(2) and section 220.04, payable in respect of that consideration if, but for subsection 218.1(2) and section 220.04, it would have been payable if the consideration had become due and been paid on the implementation date for the province and, in the case of tax under subsection 220.08(1), if section 1 of Part II of Schedule X did not apply, unless, in the case of tax under subsection 165(2) or 220.08(1), (i) the person is neither a registrant that is a selected listed financial institution nor a registrant whose net tax is determined under section 225.1 or under Part IV or V of the Streamlined Accounting (GST/HST) Regulations , and (ii) the property is acquired by the person for consumption, use or supply exclusively in commercial activities of the person, (d) where the person is a registrant whose return under section 238 for the reporting period that includes the implementation date for the province is required to be filed on a particular day before the day that is four months after that implementation date, the person shall pay the tax to the Receiver General on or before the particular day and report the tax in that return, and (e) where paragraph (d) does not apply, section 219 and subsection 220.09(1) do not apply in respect of that tax and the person shall, before the day that is four months after that implementation date, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information. Periods before implementation (3) Where a taxable supply of property by way of lease, licence or similar arrangement is made (a) in a participating province to a person, or (b) outside the participating provinces to a person to whom the property is