T-0.1 - Act respecting the Québec sales tax

Section 261 Disposition versions

1997-12-19

261. 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 begins, at a particular time, to use the immovable exclusively for other purposes, or primarily for the personal use and enjoyment of the individual or a related individual, the individual 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 amount determined by the formula

A − B;

(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 basic tax content of the immovable at the particular time; and

(2)  B is the tax, if any, that the individual is deemed under section 221 or sections 222.1 to 222.3 to have collected at the particular time in respect of the immovable;

(3)  (subparagraph repealed);

(4)  (subparagraph repealed).

1991, c. 67, s. 261; 1994, c. 22, s. 506; 1997, c. 85, s. 573.

1994-06-17

261. 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 begins, at a particular time, to use the immovable exclusively for other purposes, or primarily for the personal use and enjoyment of the individual or a related individual, the individual 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 amount determined by the formula

         (A x B) + (C x (100 % - B)) - D; 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 individual immediately before the particular time, to which the individual used the immovable in commercial activities of the individual immediately before the particular time;

(3)  C 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

(4)  D is the tax, if any, that the individual is deemed under section 221 or sections 222.1 to 222.3 to have collected at the particular time in respect of the immovable.

1991, c. 67, s. 261; 1994, c. 22, s. 506.

1992-07-01

261. 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 begins, at any time, to use the immovable exclusively for other purposes, or primarily for the personal use and enjoyment of the registrant or any related individual, the registrant is deemed

(1)  to have made a supply by way of sale of the 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)) - D.

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;

(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)  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 section 264 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; and

(4)  D is the tax, if any, that the registrant is deemed under section 221 to have collected at that time in respect of the immovable.

1991, c. 67, s. 261.