Select Luxury Items Tax Act — S-8.35 24
Tax — lease of subject vehicle 24 (1) Subject to this Act, if a registered vendor in respect of subject vehicles is an owner of a subject vehicle, if the registered vendor provides the right to use the subject vehicle to another person under a lease, licence or similar arrangement, if the subject vehicle has not previously been registered with the Government of Canada or a province otherwise than in connection with the lease, licence or similar arrangement and if the taxable amount of the subject vehicle exceeds the price threshold in respect of the subject vehicle, the registered vendor must pay to Her Majesty in right of Canada tax in respect of the subject vehicle in the amount determined under section 34 . When tax payable (2) The tax under subsection (1) becomes payable at the time at which the other person first has the right to use the subject item under the lease, licence or similar arrangement. Tax not payable (3) The tax under subsection (1) in respect of a subject vehicle that is owned by a registered vendor and in respect of which the right to use the subject item is provided to another person under a lease, licence or similar arrangement is not payable if (a) the subject vehicle is equipped for policing activities and (i) the other person is a police authority or military authority, (ii) the other person has the right to use the subject item for a period of at least six months under the lease, licence or similar arrangement, (iii) the registered vendor transfers possession of the subject vehicle to the other person under the lease, licence or similar arrangement, and (iv) the registered vendor retains evidence satisfactory to the Minister that the conditions in subparagraphs (i) to (iii) are met in respect of the subject item; or (b) the subject vehicle is equipped for military activities and (i) the other person is a military authority, (ii) the other person has the right to use the subject item for a period of at least six months under the lease, licence or similar arrangement, (iii) the registered vendor transfers possession of the subject vehicle to the other person under the lease, licence or similar arrangement, and (iv) the registered vendor retains evidence satisfactory to the Minister that the conditions in subparagraphs (i) to (iii) are met in respect of the subject item. Taxable amount (4) Subject to subsection (5), the taxable amount of a subject vehicle that is owned by a registered vendor and in respect of which the right to use the subject item is provided to another person under a lease, licence or similar arrangement is, for the purposes of this section and for the purposes of determining under section 34 the amount of tax payable under this section, the amount determined by the formula A + B where A is the greater of (a) the retail value of the subject vehicle at the time at which possession of the subject vehicle is first transferred to the other person under the lease, licence or similar arrangement, and (b) the retail value of the subject vehicle at the time at which the other person first has the right to use the subject vehicle under the lease, license or similar arrangement; and B is a prescribed amount. Taxable amount — regulations (5) For the purposes of this section and for the purposes of determining under section 34 the amount of tax payable under this section, the taxable amount of a subject item in prescribed circumstances is to be determined in prescribed manner.