T-0.1 - Act respecting the Québec sales tax

Section 258 Disposition versions

1997-12-19

258. Where a registrant last acquired an immovable for use as capital property in commercial activities of the registrant and the registrant begins, at a particular time, to use the immovable exclusively for other purposes, the registrant is deemed

(1)  to have made, immediately before the particular time, a supply of the immovable by way of sale and, except where the supply is an exempt supply, to have collected, at the particular time, tax in respect of the supply equal to the basic tax content of the immovable at the particular time; and

(2)  to have received, at the particular time, a supply of the immovable by way of sale and, 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 under subparagraph 1.

1991, c. 67, s. 258; 1994, c. 22, s. 505; 1997, c. 85, s. 571.

1994-06-17

258. Where a registrant last acquired an immovable for use as capital property in commercial activities of the registrant and the registrant begins, at a particular time, to use the immovable exclusively for other purposes, the registrant is deemed

(1)  to have made, immediately before the particular time, a supply by way of sale of the immovable and, except where the supply is an exempt supply, to have collected, at the particular time, tax in respect of the supply equal to the amount determined by the formula

       (A x B x C) + (D x (100 % - B) x E); and

(2)  to have received, at the particular time, a supply of the immovable by way of sale and, 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 under subparagraph 1.

For the purposes of the formula in subparagraph 1 of the first paragraph,

(1)  A is 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 immediately before the particular time, to which the registrant used the immovable in commercial activities of the registrant immediately before the particular time;

(3)  C is

(a)  the difference between 100 % and the percentage prescribed for the purposes of section 386 or 386.1 that applied, or would have applied, in determining the amount of that rebate under sections 383 to 397, where the registrant

i.  was entitled to claim a rebate under sections 383 to 397 in respect of any tax payable in respect of the last acquisition of the immovable by the registrant or, where the last acquisition of the immovable was deemed to have been made under section 256, the second last acquisition of the immovable by the registrant, or in respect of an improvement to the immovable acquired or brought into Québec by the registrant after the last or second last acquisition of the immovable by the registrant, as the case may be, or

ii.  would have been entitled to claim a rebate under sections 383 to 397 in respect of the tax payable in respect of the last acquisition of the immovable, the second last acquisition of the immovable or the improvement, as the case may be, but for the fact that the immovable was acquired by the registrant at the time of that last acquisition or second last acquisition, as the case may be, for use exclusively in commercial activities of the registrant, or

(b)  in any other case, 100 %;

(4)  D 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; and

(5)  E 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, or would have been so entitled but for the fact that the registrant last acquired the immovable for use exclusively in commercial activities of the registrant, the difference between 100 % and the percentage prescribed for the purposes of section 386 or 386.1 that applied, or would have applied, in determining the amount of that rebate, and

(b)  in any other case, 100 %.

1991, c. 67, s. 258; 1994, c. 22, s. 505.

1992-07-01

258. Where a registrant acquired an immovable for use as capital property in commercial activities of the registrant and the registrant begins, at any time, to use the immovable exclusively for other purposes, the registrant is deemed

(1)  to have made a supply by way of sale of that immovable immediately before that time;

(2)  to have acquired the immovable at that time for use otherwise than in commercial activities of the registrant; and

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

            (A x B) + (C x (100 % - B)).

For the purposes of this formula,

(1)  A is the tax calculated on the fair market value of the immovable at that time;

(2)  B is the percentage that, immediately before that supply, the use of the immovable in commercial activities of the registrant is of the total use of the immovable; and

(3)  C is the lesser of

(a)  an amount equal to the tax calculated on the fair market value of the immovable at that time; and

(b)  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 256 and 273 to have received a supply of the immovable at an earlier time, the total of the tax deemed under that section to have been paid 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.

1991, c. 67, s. 258.