T-0.1 - Act respecting the Québec sales tax

Section 259 Disposition versions

1997-12-19

259. Except where section 258 applies, where a registrant last acquired an immovable for use as capital property in commercial activities of the registrant and the registrant reduces, at a particular time, the extent to which the immovable is used in commercial activities of the registrant, for the purpose of determining the net tax of the registrant for the reporting period of the registrant that includes the particular time, the registrant is deemed

(1)  to have made a supply of a portion of the immovable immediately before the particular time; and

(2)  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 × 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 reduced the use of the immovable in commercial activities of the registrant at the particular time;

(3)  (subparagraph repealed).

1991, c. 67, s. 259; 1994, c. 22, s. 505; 1997, c. 85, s. 572.

1994-06-17

259. Except where section 258 applies, where a registrant last acquired an immovable for use as capital property in commercial activities of the registrant and the registrant reduces, at a particular time, the extent to which the immovable is used in commercial activities of the registrant, for the purpose of determining the net tax of the registrant for the reporting period of the registrant that includes the particular time, the registrant is deemed

(1)  to have made a supply of a portion of the immovable immediately before the particular time; and

(2)  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.

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 reduced 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, 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. 259; 1994, c. 22, s. 505.

1992-07-01

259. Except where section 258 applies, where a registrant acquired an immovable for use as capital property in commercial activities of the registrant and the registrant reduces, at any time, the extent to which the immovable is used in commercial activities of the registrant, the registrant is deemed

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

(2)  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).

For the purposes of this formula,

(1)  A 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;

(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 percentage that, immediately after that time, the use of the immovable in commercial activities of the registrant is of the total use of the immovable.

1991, c. 67, s. 259.