Section 196.1 — Excise Tax Act: Appropriation to use as capital property

For the purposes of this Part, where a registrant, at a particular time, appropriates property of the registrant for use as capital property of the registrant or in improving capital property of the registrant and, immediately before the particular time, the property was not capital property of the registrant or an improvement to capital property of the registrant, the registrant shall be deemed to have made, immediately before the particular time, a supply of the property by way of sale, and where the property was last acquired or imported by the registrant before the particular time for consumption, use or supply, or was consumed or used before the particular time, in the course of commercial activities of the registrant, to have collected, at the particular time, tax in respect of the supply calculated on the fair market value of the property at the particular time; and the registrant shall be deemed to have received, at the particular time, a supply of the property by way of sale and to have paid, at the particular time, tax in respect of the supply equal to where the property was last acquired or imported by the registrant before the particular time for consumption, use or supply, or was consumed or used before the particular time, in the course of commercial activities of the registrant and the supply is not an exempt supply, tax calculated on the fair market value of the property at the particular time, and in any other case, the basic tax content of the property at the particular time.