Section 342 — Excise Tax Act: Transportation of individuals

No tax is payable in respect of a supply of a service that is the transportation of an individual (other than a service to which subsection (3) applies) where the service begins before 1991. Where any consideration for a supply of a service that is the transportation of an individual (other than a service to which subsection (3) applies) is paid after August 1990 and before 1991 without having become due or becomes due after August 1990 and before 1991, that consideration shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991. No tax is payable in respect of a supply made by a person to an individual of a transportation pass that entitles the individual to transportation services during a period beginning before 1991 and ending before February 1991 without payment of consideration by the individual each time a supply of a transportation service is made to the individual. Where a supply is made by a person to an individual of a transportation pass that entitles the individual to transportation services during a period beginning before 1991 and ending after January 1991 without payment of consideration by the individual each time a supply of a transportation service is made to the individual, and consideration for the pass becomes due after August 1990 and before May 1991 or is paid after August 1990 and before May 1991 without becoming due, the part of the consideration for the pass determined by the formula A × (B/C) where A is amount of the consideration for the pass, B is the number of days in the period that are after 1990, and C is the number of days in the period, shall be deemed to have become due on January 1, 1991 and not to have been paid before 1991.