Excise Tax Act — E-15 118
Tax under Part VI 118 (1) No tax shall be imposed, levied or collected under Part VI on any goods (a) that are sold by a licensed wholesaler and that, before 1991, have not been delivered to the purchaser of the goods, and the property in which has not, before 1991, passed to the purchaser thereof; (b) the importation of which has not been accounted for under subsection 32(1), (2) or (5) of the Customs Act before 1991; (c) that are manufactured or produced in Canada and that have not, before 1991, been delivered to a purchaser of the goods, and the property in which has not, before 1991, passed to a purchaser thereof; or (d) that are retained by the manufacturer or producer thereof or by a licensed wholesaler for that person’s own use after 1990 or for rental after 1990 by that person to others. Idem (2) Where goods sold by a licensed wholesaler are delivered after 1990 to a purchaser of the goods but property in the goods passed to the purchaser before 1991, the goods shall, for the purposes of paragraph 50(1)(c), be deemed to have been delivered to the purchaser on the day the property in the goods passed to the purchaser. Idem (3) Where a person is a manufacturer or producer who has, before November 1989, entered into a contract referred to in subparagraph 50(1)(a)(ii) in respect of the sale of goods of the person’s manufacture or production (a) no tax shall be imposed, levied or collected under Part VI in respect of instalments that become payable under that contract after 1990; and (b) where an invoice issued or dated before 1991 is issued for an instalment payable under that contract after 1990, subsection 152(1) does not apply in respect of the instalment. Idem (4) Where a person is a manufacturer or producer who has, after October 1989, entered into a contract referred to in subparagraph 50(1)(a)(ii) in respect of the sale of goods of the person’s manufacture or production and the goods have not been delivered to the purchaser, and the property therein has not passed to the purchaser, before 1991, (a) no tax shall be imposed, levied or collected under Part VI in respect of instalments that become payable under that contract after 1990; and (b) where an invoice issued or dated before 1991 is issued for an instalment payable under that contract after 1990, subsection 152(1) does not apply in respect of the instalment. Idem (5) Where a person who is a manufacturer or producer has, after October 1989, entered into a contract referred to in subparagraph 50(1)(a)(ii) in respect of the sale of goods of the person’s manufacture or production and the goods have been delivered to the purchaser, or the property therein has passed to the purchaser, before 1991, any instalments that become payable under the contract after November 1990 shall, for the purposes of this Act, be deemed to have become payable on December 31, 1990. Idem (6) Notwithstanding subsection (3), subsection (5) applies in respect of the instalments as set out in a contract entered into before November 1989 where any amendments or alterations to the contract that vary the timing or amounts of the instalment under the contract are made after October 1989 and before 1991, except where the amendments or alterations to the contract are reasonable to accommodate a change in the total consideration payable under the contract. Diversions after 1990 (6.1) Where any of the events described in subsection 50(7) or (8) in respect of goods occur after 1990, no tax under Part VI shall be imposed, levied or collected under that subsection in respect of the goods. Continuous supplies (7) Where Part VI applies in respect of goods that are delivered on a continuous basis, by means of a wire, pipeline or other conduit, by a vendor who is a licensed wholesaler or the manufacturer or producer of the goods and who invoices on a regular or periodic basis, and the invoice for a sale of the goods is issued by the vendor to the purchaser after August 1990, no tax shall be imposed, levied