Excise Tax Act — E-15 218.1
s greater than zero determined by the formula B 1 × B 2 where B 1 is the external charge, and B 2 is the extent (expressed as a percentage) to which the whole or part of the outlay or expense, which corresponds to the external charge, was made or incurred to consume, use or supply the whole or part of property or of a qualifying service, in respect of which the external charge is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in the particular participating province; and (b) in any other case, the total of all amounts, each of which is an amount in respect of qualifying consideration for the specified year that is greater than zero determined by the formula C × D where C is the qualifying consideration, and D is the extent (expressed as a percentage) to which the whole or part of the outlay or expense, which corresponds to the qualifying consideration, was made or incurred to consume, use or supply the whole or part of property or of a qualifying service, in respect of which the qualifying consideration is attributable, in carrying on, engaging in or conducting an activity of the qualifying taxpayer in the particular participating province. Qualifying taxpayer resident in a province (1.3) Despite section 132.1 and for the purposes of subsection (1.2), a qualifying taxpayer is deemed to be resident in a province at any time if, at that time, (a) the qualifying taxpayer has a qualifying establishment in the province; or (b) in the case of a qualifying taxpayer that is resident in Canada, the qualifying taxpayer is (i) a corporation incorporated or continued under the laws of the province and not continued elsewhere, (ii) an entity that is a partnership, an unincorporated society, a club, an association or an organization, or a branch of such an entity, in respect of which a majority of the members having management and control of the entity or branch are resident in the province, or (iii) a trust, carrying on activities as a trust in the province, that has a local office or branch in the province. Selected listed financial institutions (2) If tax under subsection (1) or (1.2) would, in the absence of this subsection, become payable by a person when the person is a selected listed financial institution, that tax is not payable unless it is an amount of tax that (a) is prescribed for the purposes of paragraph (a) of the description of F in subsection 225.2(2); (b) is in respect of an imported taxable supply of property or a service acquired otherwise than for consumption, use or supply in the course of an endeavour (as defined in subsection 141.01(1)) of the person; or (c) is a prescribed amount. Application in offshore areas (3) Subsection (1) does not apply to (a) an imported taxable supply of intangible personal property or a service made to a person who is resident in the Nova Scotia offshore area or the Newfoundland offshore area unless the property or service is acquired by the person for consumption, use or supply in the course of an offshore activity or the person is also resident in a participating province that is not an offshore area; or (b) an imported taxable supply of tangible personal property the physical possession of which is transferred, or that is delivered or made available, to the recipient of the supply in the Nova Scotia offshore area or the Newfoundland offshore area unless the property is acquired by the recipient for consumption, use or supply in the course of an offshore activity. Use in offshore areas (4) For the purposes of subsection (1), a person that acquires property or a service for consumption, use or supply in the Nova Scotia offshore area or the Newfoundland offshore area is deemed to acquire the property or service for consumption, use or supply in that area only to the extent that it is acquired for consumption, use or supply in that area in the course of an offshore activity. [NOTE: Application provisions are not included in the consolidated t