Section 172 — Excise Tax Act: Use by registrant

For the purposes of this Part, where a registrant who is an individual and who has, in the course of commercial activities of the registrant, acquired, manufactured or produced any property (other than capital property of the registrant) or acquired or performed any service appropriates the property or service, at any time, for the personal use, consumption or enjoyment of the registrant or another individual related to the registrant, the registrant shall be deemed to have made a supply of the property or service for consideration paid at that time equal to the fair market value of the property or service at that time; and except where the supply is an exempt supply, to have collected, at that time, tax in respect of the supply, calculated on that consideration. For the purposes of this Part, where at any time a registrant that is a corporation, partnership, trust, charity, public institution or non-profit organization appropriates any property (other than capital property of the registrant) that was acquired, manufactured or produced, or any service acquired or performed, in the course of commercial activities of the registrant, to or for the benefit of a shareholder, partner, beneficiary or member of the registrant or any individual related to such a shareholder, partner, beneficiary or member, in any manner whatever (otherwise than by way of a supply made for consideration equal to the fair market value of the property or service), the registrant is deemed to have made a supply of the property or service for consideration paid at that time equal to the fair market value of the property or service at that time; and except where the supply is an exempt supply, to have collected, at that time, tax in respect of the supply, calculated on that consideration. This section does not apply to property or a service appropriated by a registrant to or for the benefit of a person where the registrant was, because of section 170, not entitled to claim an input tax credit in respect of the last acquisition or importation of the property or service by the registrant; or section 173 applies to the property or service so appropriated for the purpose of making it available to the person.