Excise Tax Act — E-15 181
Definitions 181 (1) The definitions in this subsection apply in this section. coupon includes a voucher, receipt, ticket or other device but does not include a gift certificate or a barter unit (within the meaning of section 181.3). ( bon ) tax fraction of a coupon value or of the discount or exchange value of a coupon means (a) where the coupon is accepted in full or partial consideration for a supply made in a participating province, the fraction A/B where A is the total of the rate set out in subsection 165(1) and the tax rate for that participating province, and B is the total of 100% and the percentage determined for A; and (b) in any other case, the fraction C/D where C is the rate set out in subsection 165(1), and D is the total of 100% and the percentage determined for C. ( fraction de taxe ) Acceptance of reimbursable coupon (2) For the purposes of this Part, other than subsection 223(1), where at any time a registrant accepts, in full or partial consideration for a taxable supply of property or a service (other than a zero-rated supply), a coupon that entitles the recipient of the supply to a reduction of the price of the property or service equal to a fixed dollar amount specified in the coupon (in this subsection referred to as the “coupon value”) and the registrant can reasonably expect to be paid an amount for the redemption of the coupon by another person, the following rules apply: (a) the tax collectible by the registrant in respect of the supply shall be deemed to be the tax that would be collectible if the coupon were not accepted; (b) the registrant shall be deemed to have collected, at that time, a portion of the tax collectible equal to the tax fraction of the coupon value; and (c) the tax payable by the recipient in respect of the supply shall be deemed to be the amount determined by the formula A - B where A is the tax collectible by the registrant in respect of the supply, and B is the tax fraction of the coupon value. Acceptance of non-reimbursable coupon (3) Where at any time a registrant accepts, in full or partial consideration for a taxable supply of property or a service (other than a zero-rated supply), a coupon that entitles the recipient of the supply to a reduction of the price of the property or service equal to a fixed dollar amount specified in the coupon or a fixed percentage, specified in the coupon, of the price (the amount of which reduction is, in each case, referred to in this subsection as the “coupon value”) and the registrant can reasonably expect not to be paid an amount for the redemption of the coupon by another person, (a) the registrant shall, for the purposes of this Part, treat the coupon as (i) reducing the value of the consideration for the supply as provided for in subsection (4), or (ii) a partial cash payment that does not reduce the value of the consideration for the supply; and (b) where the registrant treats the coupon as a partial cash payment that does not reduce the value of the consideration for the supply, paragraphs (2)(a) to (c) apply in respect of the supply and the coupon and the registrant may claim an input tax credit for the registrant’s reporting period that includes that time equal to the tax fraction of the coupon value. Acceptance of other coupons (4) For the purposes of this Part, if a registrant accepts, in full or partial consideration for a supply of property or a service, a coupon that may be exchanged for the property or service or that entitles the recipient of the supply to a reduction of, or a discount on, the price of the property or service and paragraphs (2)(a) to (c) do not apply in respect of the coupon, the value of the consideration for the supply is deemed to be the amount, if any, by which the value of the consideration for the supply as otherwise determined for the purposes of this Part exceeds the discount or exchange value of the coupon. Redemption of coupon (5) For the purposes of this Part, if, in full or partial consideration