T-0.1 - Act respecting the Québec sales tax

Section 242 Disposition versions

1997-12-19

242. Where a registrant last acquired or brought into Québec movable property for use as capital property of the registrant but not for use primarily in commercial activities of the registrant and the registrant begins, at any time, to use the property as capital property primarily in commercial activities of the registrant, except where the registrant becomes a registrant at that time, the registrant is deemed

(1)  to have received, at that time, a supply of the property by way of sale; and

(2)  except where the supply is an exempt supply, to have paid, at that time, tax in respect of the supply equal to the basic tax content of the property at that time.

1991, c. 67, s. 242; 1994, c. 22, s. 495; 1997, c. 85, s. 561.

1994-06-17

242. Where a registrant last acquired or brought into Québec movable property for use as capital property of the registrant but not for use primarily in commercial activities of the registrant and the registrant begins, at any time, to use the property as capital property primarily in commercial activities of the registrant, except where the registrant becomes a registrant at that time, the registrant is deemed

(1)  to have received, at that time, a supply of the property by way of sale; and

(2)  except where the supply is an exempt supply, to have paid, at that time, tax in respect of the supply equal to the amount determined by the formula

                        A x B.

For the purposes of this formula,

(1)  A is the lesser of

(a)  the total (in this section referred to as “the total tax charged in respect of the property”) of the tax that was or would, but for section 75.1 or 80, have been payable by the registrant in respect of the last acquisition or bringing into Québec of the property by the registrant and the tax that was payable by the registrant in respect of improvements to the property acquired or brought into Québec by the registrant after the property was last so acquired or brought into Québec, and

(b)  tax calculated on the fair market value of the property at that time; and

(2)  B is

(a)  where the registrant was entitled to claim a rebate under sections 383 to 397 in respect of any tax included in the total tax charged in respect of the property, the difference between 100 % and the percentage prescribed for the purposes of section 386 or 386.1 that applied in determining the amount of that rebate, and

(b)  in any other case, 100 %.

1991, c. 67, s. 242; 1994, c. 22, s. 495.

1992-07-01

242. Where movable property was acquired or brought into Québec by a registrant and the registrant was not entitled, by reason of the use for which the property was acquired or brought, to claim an input tax refund in respect of the property, or the registrant was deemed under section 243 to have made a supply of the property and the registrant begins, at a particular time, to use the property as capital property primarily in commercial activities of the registrant, the following rules apply:

(1)  the registrant is deemed to have received, immediately before the particular time, a supply of the property for use as capital property exclusively in commercial activities of the registrant; and

(2)  the registrant is deemed to have paid at the particular time tax in respect of the supply equal to the lesser of

(a)  the amount, if any, by which the total determined under subparagraph i exceeds the total determined under subparagraph ii:

i.  the total of the tax that was payable by the registrant in respect of the acquisition or bringing into Québec of the property and the tax that was payable by the registrant in respect of improvements to the property or, where the registrant was deemed under section 243 to have made a supply of the property at an earlier time, the total of the tax deemed under that section to have been collected by the registrant at that earlier time and the tax that was payable by the registrant after that earlier time in respect of improvements to the property;

ii.  the total of all rebates in respect of tax referred to in subparagraph i that the registrant has claimed or is entitled to claim under Division I of Chapter VII; and

(b)  an amount equal to the tax that would be payable by the registrant if the registrant acquired the property at the particular time by way of a taxable supply from another registrant for consideration equal to its fair market value at the particular time.

1991, c. 67, s. 242.