Excise Tax Act — E-15 178
 province for supply to a sales representative of the network seller or an individual related to the sales representative, (b) tax becomes payable in respect of the acquisition, importation or bringing in, as the case may be, (c) the property or service is so supplied by the registrant for no consideration or for consideration that is less than the fair market value of the property or service, and (d) the sales representative or individual is not acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the sales representative or individual, as the case may be, the following rules apply: (e) no tax is payable in respect of the supply, and (f) in determining an input tax credit of the registrant, no amount shall be included in respect of tax that becomes payable, or is paid without having become payable, by the registrant in respect of the property or service. Appropriations for sales representatives (19) For the purposes of this Part, if a registrant that is a network seller in respect of which an approval granted under subsection (5) is in effect appropriates, at any time, property (other than a select product of the network seller) that was acquired, manufactured or produced, or any service acquired or performed, in the course of commercial activities of the registrant, to or for the benefit of a sales representative of the network seller, or any individual related to the sales representative, that is not acquiring the property or service for consumption, use or supply exclusively in the course of commercial activities of the sales representative or individual, in any manner (otherwise than by way of supply for consideration equal to the fair market value of the property or service), the registrant shall be deemed (a) to have made a supply of the property or service for consideration paid at that time equal to the fair market value of the property or service at that time; and (b) except where the supply is an exempt supply, to have collected, at that time, tax in respect of the supply calculated on that consideration. Exception (20) Subsection (19) does not apply to property or a service appropriated by a registrant if the registrant was not entitled to claim an input tax credit in respect of the property or service because of section 170. Ceasing to be a registrant (21) If, at any time when an approval granted under subsection (5) in respect of a network seller and each of its sales representatives is in effect, a sales representative of the network seller ceases to be a registrant, paragraph 171(3)(a) does not apply to sales aids of the sales representative that were supplied to the sales representative by the network seller or another sales representative of the network seller at any time when the approval was in effect. Non-arm’s length supply (22) Section 155 does not apply to the supply described in subsection (9) made to an individual acting as a host. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 1990, c. 45, s. 12; 1997, c. 10, s. 27; 2010, c. 12, s. 59; 2017, c. 33, s. 116(F)