Section 207 — Excise Tax Act: Individual ceasing use in commercial activities

For the purposes of this Part, where an individual who is a registrant last acquired real property 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 property exclusively for other purposes, or primarily for the personal use and enjoyment of the individual or a related individual, the individual shall be deemed to have made, immediately before the particular time, a supply of the property 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 where A is the basic tax content of the property at the particular time, and B is the tax, if any, that the individual is deemed under section 190 to have collected at the particular time in respect of the property;

and to have received, at the particular time, a supply of the property 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 paragraph (a). Except where subsection (1) applies, where an individual who is a registrant last acquired real property 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 reduces, at a particular time, the extent to which the property is used in commercial activities of the individual without beginning to use the property primarily for the personal use and enjoyment of the individual or a related individual, for the purposes of determining the net tax of the individual, the individual shall be deemed to have made, immediately before the particular time, a supply by way of sale of a portion of the property; 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) - C where A is the basic tax content of the property at the particular time, B is the extent (expressed as a percentage of the total use of the property by the individual at the particular time) to which the individual reduced the use of the property in commercial activities of the individual at the particular time, and C is the tax, if any, that the individual is deemed under section 190 to have collected at the particular time in respect of the property.