T-0.1 - Act respecting the Québec sales tax

Section 257 Disposition versions

1997-12-19

257. Where a registrant last acquired an immovable for use as capital property in commercial activities of the registrant and the registrant increases, at a particular time, the extent to which the immovable is used in commercial activities of the registrant, for the purpose of determining an input tax refund of the registrant, the registrant is deemed

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

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

A × B.

For the purposes of this formula,

(1)  A is the basic tax content of the immovable at the particular time; and

(2)  B is the extent, expressed as a percentage of the total use of the immovable by the registrant at the particular time, to which the registrant increased the use of the immovable in commercial activities of the registrant at the particular time;

(3)  (subparagraph repealed).

1991, c. 67, s. 257; 1994, c. 22, s. 505; 1997, c. 85, s. 570.

1994-06-17

257. Where a registrant last acquired an immovable for use as capital property in commercial activities of the registrant and the registrant increases, at a particular time, the extent to which the immovable is used in commercial activities of the registrant, for the purpose of determining an input tax refund of the registrant, the registrant is deemed

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

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

                      A x B x C.

For the purposes of this formula,

(1)  A is the lesser of

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

(b)  an amount equal to the tax calculated on the fair market value of the immovable at the particular time;

(2)  B is the extent, expressed as a percentage of the total use of the immovable by the registrant at the particular time, to which the registrant increased the use of the immovable in commercial activities of the registrant at the particular time; and

(3)  C 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 immovable, 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. 257; 1994, c. 22, s. 505.

1992-07-01

257. Where a registrant acquired an immovable for use as capital property in commercial activities of the registrant and the registrant increases, at a particular time, the extent to which the immovable is used in commercial activities of the registrant, the registrant is deemed

(1)  to have received, immediately before the particular time, a supply by way of sale of a portion of the immovable for use as capital property exclusively in commercial activities of the registrant; and

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

                    A x (B - C).

For the purposes of this formula,

(1)  A is the lesser of

(a)  an amount equal to 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 or would, but for sections 75 and 80, have been payable by the registrant in respect of the acquisition of the immovable and the tax that was payable by the registrant in respect of improvements to the immovable or, where the registrant was deemed under sections 258 and 273 to have made a supply of the immovable 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 immovable;

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 had acquired the immovable at the particular time for consideration equal to its fair market value at the particular time;

(2)  B is 100 % or, where the immovable was not used exclusively in commercial activities of the registrant immediately after the particular time, the percentage that, immediately after the particular time, the use of the immovable in commercial activities of the registrant is of the total use of the immovable; and

(3)  C is the percentage that, immediately before the particular time, the use of the immovable in commercial activities of the registrant is of the total use of the immovable.

1991, c. 67, s. 257.