Excise Tax Act — E-15 179
ply, for the purposes of this section and the definition imported taxable supply in section 217, (i) the particular registrant is deemed to have caused physical possession of the property to be transferred to the other registrant, (ii) the other registrant is deemed to have acquired physical possession of the property, as the recipient of the other supply, from the particular registrant, and (iii) the particular registrant is deemed to have caused that transfer, and the other registrant is deemed to have so acquired physical possession of the property, at the time when, and at the place where, the property is delivered or made available to the other registrant under the agreement for the other supply. Deemed possession during lease (10) For the purposes of this section and the definition imported taxable supply in section 217, if a registrant (in this subsection referred to as the “lessee”) acquires — as the recipient of a particular taxable supply of tangible personal property made by way of lease, licence or similar arrangement by a particular non-resident person that is not registered under Subdivision D of Division V — physical possession of the property at a particular time and either (a) gives a certificate described in paragraph (2)(d) in respect of that acquisition of physical possession of the property, or (b) claims an input tax credit in respect of tax that is deemed to have been paid or payable by the lessee under subsection 178.8(2) or paragraph 180(d) in respect of the property, the lessee is deemed to retain physical possession of the property at all times throughout the period that begins at the particular time and ends at the earliest of (c) the time at which the lessee causes physical possession of the property to be transferred to another registrant that (i) is acquiring physical possession of the property for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the particular non-resident person or to another non-resident person that is not registered under Subdivision D of Division V, and (ii) retains physical possession of the property during a part of the period during which possession or use of the property is provided to the lessee under the arrangement, (d) the time at which the lessee causes physical possession of the property to be transferred to the particular non-resident person or to another non-resident person that is not registered under Subdivision D of Division V, and (e) the time at which the lessee causes physical possession of the property to be transferred to a person that is not referred to in paragraph (c) or (d), if that time is not included in (i) the period during which possession or use of the property is provided to the lessee under the arrangement, or (ii) another period during which the lessee has possession or use of the property as the recipient of another taxable supply of the property made by way of lease, licence or similar arrangement by the particular non-resident person or by another non-resident person that is not registered under Subdivision D of Division V. Possession by service provider during lease (11) For the purposes of this section and the definition imported taxable supply in section 217, if (a) a registrant (in this subsection referred to as the “lessee”) is the recipient of a particular taxable supply of tangible personal property made by way of lease, licence or similar arrangement by a particular non-resident person that is not registered under Subdivision D of Division V, (b) another registrant acquires physical possession of the property at a particular time for the purpose of making a taxable supply in Canada of a commercial service in respect of the property to the particular non-resident person or to another non-resident person that is not registered under Subdivision D of Division V, and (c) the other registrant retains physical possession of the property during a part of the particular period during wh