Section 158 — Excise Tax Act: Tax refund discounts

For the purposes of this Part, where a discounter (within the meaning of the Tax Rebate Discounting Act ) pays an amount to a person to acquire from the person a right to a refund of tax (within the meaning of that Act), notwithstanding section 139, the discounter shall be deemed to have made a taxable supply of a service for consideration equal to the lesser of 2/3 of the amount, if any, by which the amount of the refund exceeds the amount paid by the discounter to the person to acquire the right, and $30; and a separate supply of a financial service for consideration equal to the amount by which the amount of the refund exceeds the total of the amount paid by the discounter to the person to acquire the right and the amount determined under paragraph (a).