T-0.1 - Act respecting the Québec sales tax

Section 265 Disposition versions

1997-12-19

265. Where an individual who is a registrant last acquired an immovable for use as capital property in commercial activities of the individual and not primarily for the personal use and enjoyment of the individual or a related individual, and the individual increases, at a particular time, the extent to which the immovable is used in commercial activities of the individual without beginning to use the immovable primarily for the personal use and enjoyment of the individual or a related individual, for the purposes of determining an input tax refund of the individual, the individual is deemed

(1)  to have received, at 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 individual; 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 individual at the particular time, to which the individual increased the use of the immovable in commercial activities of the individual at the particular time.

1991, c. 67, s. 265; 1994, c. 22, s. 506; 1997, c. 85, s. 576.

1994-06-17

265. Where an individual who is a registrant last acquired an immovable for use as capital property in commercial activities of the individual and not primarily for the personal use and enjoyment of the individual or a related individual, and the individual increases, at a particular time, the extent to which the immovable is used in commercial activities of the individual without beginning to use the immovable primarily for the personal use and enjoyment of the individual or a related individual, for the purposes of determining an input tax refund of the individual, the individual is deemed

(1)  to have received, at 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 individual; 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.

For the purposes of this formula,

(1)  A is the lesser of

(a)  an amount equal to the total of the tax that was or would, but for sections 75.1 and 80, have been payable by the individual in respect of the last acquisition of the immovable by the individual and the tax that was payable by the individual in respect of improvements to the immovable acquired or brought into Québec by the individual 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

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

1991, c. 67, s. 265; 1994, c. 22, s. 506.

1992-07-01

265. Where a registrant who is an individual acquired an immovable for use as capital property in commercial activities of the registrant, and not primarily for the personal use and enjoyment of the registrant or any related individual, 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 part of that 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 total of the tax that was or would be, but for sections 75 and 80, 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 section 261 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; and

(b)  the tax that would be payable by the registrant if the registrant had acquired the immovable at the particular time for consideration equal to the fair market value of the immovable 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. 265.