Section 339 — Excise Tax Act: Progress payments

Where a taxable supply is made under a contract to construct, renovate, alter or repair real property or a ship or other marine vessel, any consideration for the supply that becomes due or is paid without becoming due after August 1989 and before 1991 as a progress payment required under the contract shall be deemed, for the purposes of this Part, to have become due on January 1, 1991 and not to have been paid before 1991; no tax is payable in respect of any part of the consideration for the supply that may reasonably be attributed to property delivered and services performed under the contract before 1991; and where paragraph 168(3)(c) applies in respect of the supply, tax is payable in respect thereof and the construction, renovation, alteration or repair is substantially completed before December 1990, the construction, renovation, alteration or repair shall be deemed, for the purposes of this Part, to have been substantially completed on December 1, 1990 and not before that day.