Legislative Proposals Relating to the Select Luxury Items Tax Act
Draft Select Luxury Items Tax Act
Enactment of Act
Enactment
1 (1) The Select Luxury Items Tax Act, whose text is as follows and whose
Schedule is set out in the Schedule to this Act, is enacted:
An Act respecting the taxation
of select luxury items
Short Title
Short title
1 This Act may be cited as the Select Luxury
Items Tax Act.
PART 1
Select Luxury Items Tax
DIVISION 1
Interpretation and Application
SUBDIVISION A
Interpretation
Definitions
2 (1) The following definitions apply in this Act.
assessment means an assessment under this Act and includes a reassessment. (cotisation)
bank means a bank as defined in section 2
of the Bank Act or an authorized foreign bank, as defined in that section, that is not
subject to the restrictions and requirements referred to in subsection 524(2) of that Act. (banque)
calendar quarter means a period of three months beginning on the first day of January, April, July
or October. (trimestre civil)
Commissioner means, except in sections 80 and 81 and subsections 153(1) to (8) and (19), the Commissioner of Revenue appointed under
section 25 of the Canada Revenue Agency Act. (commissaire)
common-law partner of an individual at a particular time means a person who is the common–law partner
of the individual at the particular time for the purposes of the Income Tax Act. (conjoint de fait)
confirmed delivery
service means certified or registered mail or any other service that
provides a record that a notice or document has been sent or delivered. (service de messagerie)
consideration includes any amount that is payable by operation of law. (contrepartie)
credit union means a credit union as defined in
subsection 137(6) of the Income Tax Act. (caisse de crédit)
export means export from Canada. (exportation)
government entity means
(a) a department or agency of the government of Canada or of a province;
(b) a municipality;
(c) an aboriginal government as defined
in subsection 2(1) of the Federal-Provincial Fiscal Arrangements
Act;
(d) a corporation all of the shares (except directors’ qualifying shares) of the capital
stock of which are owned by one or more persons each of which is
(i) Her Majesty in right of Canada or a province,
(ii) a municipality, or
(iii) a corporation described in this paragraph; or
(e) a board or commission, established by Her Majesty in right of Canada or a province,
that performs an administrative or regulatory function of government, or by a municipality, that performs an
administrative or regulatory function of a municipality. (entité
gouvernementale)
guest of a particular person on a subject item means an individual that uses or enjoys
the subject item and that
(a) does not deal at arm’s length with the particular person;
(b) is an employee of the particular person or of a person that does not deal at arm’s
length with the particular person; or
(c) uses or enjoys the subject item, at the invitation of the particular person or a
person referred to in paragraph (a) or (b), for no consideration or for nominal consideration. (invité)
identification number of a subject item means an identification number that is satisfactory to the
Minister and is unique to the subject item. (numéro
d’identification)
import means import into Canada. (importation)
indigenous governing
body has the same meaning as in section 2 of the Department of Indigenous Services Act. (corps dirigeant autochtone)
judge, in respect of any matter, means a judge of a superior court having jurisdiction in
the province in which the matter arises or a judge of the Federal Court. (juge)
military authority means the Canadian Forces, within the meaning of section 14 of the National Defence Act, or a visiting force, as defined in section 2 of the Visiting Forces Act. (autorité militaire)
Minister means the Minister of National Revenue. (ministre)
municipality means
(a) an incorporated city, town, village, metropolitan authority, township, district,
county or rural municipality or other incorporated municipal body however designated; or
(b) any other local authority that the Minister may determine to be a municipality for
the purposes of this Act. (municipalité)
officer means, except in sections 75, 127 and 149,
(a) a person who is appointed or employed in the administration or enforcement of this
Act; and
(b) with respect to imported goods that have not been released under the Customs Act, an officer as defined in subsection 2(1) of that Act. (préposé)
passenger seat means a seat on an aircraft other than a pilot seat. (siège passager)
person means an individual, a partnership, a corporation, the estate or succession of a
deceased individual, a trust, a joint venture, a government or a body that is a society, a union, a club, an
association, a commission or another organization of any kind. (personne)
personal
representative, of a deceased individual or the estate or succession of
a deceased individual, means the executor of the individual’s will, the liquidator of the individual’s
succession, the administrator of the estate or any person that is responsible under the appropriate law for
the proper collection, administration, disposition and distribution of the assets of the estate or
succession. (représentant personnel)
pilot seat includes a flight engineer seat or a flight deck observer seat. (siège destiné au pilote)
police authority means
(a) the Royal Canadian Mounted Police, the Ontario Provincial Police, the Sûreté du
Québec, the Canadian Coast Guard or a municipal or regional police force established pursuant to provincial
legislation;
(b) a government entity that is responsible for the preservation and maintenance of the
public peace; or
(c) a prescribed person. (corps
policier)
prescribed means
(a) in the case of a form or the manner of filing a form, authorized by the
Minister;
(b) in the case of the information to be given on or with a form, specified by the
Minister; and
(c) in any other case, prescribed by regulation or determined in accordance with rules
prescribed by regulation. (Version anglaise
seulement)
qualifying aircraft
user means a person (other than a prescribed person) that is
(a) Her Majesty in right of Canada or a province;
(b) a person that is an agent of Her Majesty in right of Canada or a province;
(c) a municipality;
(d) an indigenous governing body;
(e) a police authority;
(f) a government entity that has as its primary responsibility the conduct of emergency
medical response activities or emergency fire response activities;
(g) a government entity that has as its primary responsibility the operation, management
and maintenance of a hospital;
(h) a person that has as its primary responsibility the operation, management and
maintenance of a listed airport, as defined in section 2 of
the Air Travellers Security Charge Act;
(i) NAV CANADA, a corporation incorporated on May 26, 1995 under Part II of the Canada Corporations Act; or
(j) a prescribed person. (utilisateur admissible
d’aéronef)
record means any material on which representations, in any form, of information or
concepts are recorded or marked and that is capable of being read or understood by a person, a computer
system or other device. (registre)
registered vendor, in respect of a type of subject item, means a person that is registered under
Division 5 as a vendor in respect of that type of subject item. (vendeur inscrit)
select subject vessel means
(a) a subject vessel (other than a prescribed subject vessel) that is equipped with a
bed, bunk, berth or similar sleeping amenity; or
(b) a prescribed subject vessel. (navire
assujetti désigné)
subject aircraft means an aircraft that is
(a) an aeroplane, glider or helicopter, as those terms are defined in subsection 101.01(1) of
the Canadian Aviation Regulations, that has a date of
manufacture after 2018 if the aircraft
(i) is equipped only with one or more pilot seats and cannot have any other seating
configuration,
(ii) is equipped only with one or more pilot seats, or is not equipped with any seats,
and cannot have a seating configuration, excluding pilot seats, of 40 or greater, or
(iii) is equipped with one or more pilot seats and one or more passenger seats and has a
seating configuration, excluding pilot seats, of 39 or fewer, or
(b) a prescribed aircraft,
but does not include
(c) an aircraft that is designed and equipped for military activities,
(d) an aircraft that is equipped for the carriage of goods only,
(e) an aircraft
(i) that is registered with a government before September 2022 otherwise than solely for
a purpose incidental to its manufacture, offering for sale or transportation, and
(ii) in respect of which a user of the aircraft has possession before September
2022,
(f) a subject vehicle, or
(g) a prescribed aircraft. (aéronef
assujetti)
subject item means a subject aircraft, a subject vehicle or a subject vessel. (bien assujetti)
subject vehicle means
(a) a motor vehicle that
(i) is designed or adapted primarily to carry individuals on highways and
streets,
(ii) has a seating capacity of not more than 10 individuals,
(iii) has a gross vehicle weight rating, as
that term is defined in subsection 2(1) of the Motor Vehicle Safety
Regulations, that is less than or equal to 3,856 kg,
(iv) has a date of manufacture after 2018, and
(v) is designed to travel with four or more wheels in contact with the ground, or
(b) a prescribed motor vehicle,
but does not include
(c) an ambulance,
(d) a hearse,
(e) a motor vehicle that is clearly marked for policing activities,
(f) a motor vehicle that is clearly marked and equipped for emergency medical response
activities or emergency fire response activities,
(g) a recreational vehicle that is designed or adapted to provide temporary residential
accommodations, and is equipped with at least four of the following elements:
(i) cooking facilities,
(ii) a refrigerator or ice box,
(iii) a self-contained toilet,
(iv) a heating or air-conditioning system that can function independently of the vehicle
engine,
(v) a potable water supply system that includes a faucet and sink, and
(vi) a 110-V to 125-V electric power supply, or a liquefied petroleum gas supply, that
can function independently of the vehicle engine,
(h) a motor vehicle
(i) that is registered before September 2022 with a government, and
(ii) in respect of which possession was transferred to a user of the motor vehicle before
September 2022, or
(i) a prescribed motor vehicle. (véhicule
assujetti)
subject vessel means
(a) a vessel that
(i) is designed or adapted for leisure, recreation or sport activities, and
(ii) has a date of manufacture after 2018, or
(b) a prescribed vessel,
but does not include
(c) a floating home, as defined in
subsection 123(1) of the Excise Tax Act,
(d) a vessel that is designed and equipped solely for
(i) commercially catching, harvesting or transporting fish or other living marine
resources, or
(ii) ferrying passengers or vehicles on a fixed schedule between two or more
points,
(e) a vessel that has sleeping facilities for more than 100 individuals who are not crew
members,
(f) a vessel
(i) that is registered with a government before September 2022, otherwise than solely
for a purpose incidental to its manufacture, offering for sale or transportation, and
(ii) in respect of which a user of the vessel has possession before September
2022,
(g) a subject vehicle or a subject aircraft, or
(h) a prescribed vessel. (navire
assujetti)
tax means, except in subsection 13(1),
sections 15 and 16, subparagraph 18(2)(a)(iv) and paragraph 42(1)(b), tax payable under this Act. (taxe)
vessel means a boat, ship or craft that is designed, or is capable of being used, solely
or partly for navigation in, on, through or immediately above water, without regard to the method or lack of
propulsion. (navire)
Meaning of
Canada
(2) In or in respect of Subdivision B of Division 2, Canada has the same meaning as in the Customs Act.
Meaning of
administration or enforcement of this Act
3 For greater certainty, a reference in this Act to the administration or enforcement
of this Act includes the collection of any amount payable under this Act.
Person resident in
Canada
4 For the purposes of Division 2 of Part 2 and paragraph 21(6)(e), a person is deemed to be resident in Canada at any
time
(a) in the case of a corporation, if the corporation is incorporated or continued in
Canada and not continued elsewhere;
(b) in the case of a partnership, a joint venture, an unincorporated society, a club, an
association or an organization, or a branch thereof, if the member or participant, or a majority of the
members or participants, having management and control thereof is or are resident in Canada at that
time;
(c) in the case of a labour union, if the labour union is carrying on activities as such
in Canada and has a local union or branch in Canada at that time; or
(d) in the case of an individual, if the individual is deemed under any of paragraphs
250(1)(b) to (f) of the Income Tax Act to be resident in
Canada at that time.
Arm’s length
5 (1) For the purposes of this Act
(a) related persons are deemed not to deal with each other at arm’s length;
(b) associated persons are deemed not to deal with each other at arm’s length;
and
(c) it is a question of fact whether persons not related to, or not associated with,
each other are, at any particular time, dealing with each other at arm’s length.
Related persons
(2) For the purposes of this Act, persons are related to each other if they are related
persons within the meaning of subsections 251(2) to (6) of the Income Tax Act, except that
(a) a reference in those subsections to “corporation” is to be read as a reference to
“corporation or partnership”; and
(b) a reference in those subsections to “shares of the capital stock of a corporation”
or “shareholders”, is, in respect of a partnership, to be read as a reference to “rights in a partnership”
or “partners”, respectively.
Related persons —
partnership
(3) For the purposes of this Act, a member of a partnership is deemed to be related to
the partnership.
Associated
persons
(4) A particular corporation is associated with another corporation for the purposes of
this Act if, by reason of subsections 256(1) to (6) of the Income
Tax Act, the particular corporation is associated with the other corporation for the purposes of
that Act.
Corporations
controlled by same person or group
(5) A person other than a corporation is associated with a particular corporation for
the purposes of this Act if the particular corporation is controlled by the person or by a group of persons
of which the person is a member and each of whom is associated with each of the others.
Partnership or
trust
(6) For the purposes of this Act, a person is associated with
(a) a partnership if the total of the shares of the profits of the partnership to which
the person and all other persons who are associated with the person are entitled is more than half of the
total profits of the partnership, or would be more than half of the total profits of the partnership if it
had profits; and
(b) a trust if the total of the values of the interests in the trust of the person and
all other persons who are associated with the person is more than half of the total value of all interests
in the trust.
Association with third
person
(7) For the purposes of this Act, a person is associated with another person if each of
them is associated with the same third person.
Associated persons —
partnership
(8) For the purposes of this Act, a member of a partnership is deemed to be associated
with the partnership.
Negative
amounts
6 Except as specifically otherwise provided, if an amount or a number is required
under this Act to be determined or calculated by or in accordance with an algebraic formula and the amount
or number when so determined or calculated would, in the absence of this subsection, be a negative amount or
number, it is deemed to be zero.
Sale — subject
item
7 (1) For the purposes of this Act, a vendor sells a subject item to a purchaser if
(a) the vendor transfers ownership of the subject item to the purchaser by way of sale
under an agreement; and
(b) the subject item is delivered or made available in Canada in relation to the
agreement.
Partial
ownership
(2) For the purposes of this Act, a particular person transfers ownership of a subject
item to another person even if, at the time ownership is transferred to the other person, the particular
person retains partial ownership or transfers partial ownership to any third person.
Security interest —
not a sale
(3) For the purposes of this Act and despite subsection (1), if, under an agreement
entered into in respect of a debt or obligation, a person transfers a subject item or an interest in a
subject item for the purpose of securing payment of the debt or performance of the obligation, the transfer
is deemed not to be a sale of the subject item and the transferee is deemed not to be an owner of the
subject item only because of the transfer, and if, on payment of the debt or performance of the obligation
or the forgiveness of the debt or obligation, the subject item or interest is retransferred, the retransfer
of the subject item or interest is deemed not to be a sale of a subject item.
When sale
completed
(4) Subject to subsection (5), for the purposes of this Act, the sale of a subject item
to a purchaser is completed at the earlier of
(a) the time at which possession of the subject item is transferred to the purchaser or
to another person; and
(b) the time at which ownership of the subject item is transferred to the
purchaser.
When sale completed —
regulations
(5) For the purposes of this Act, if prescribed conditions are met in respect of the
sale of a subject item to a purchaser, the sale is completed at the prescribed time.
Deemed sale
(6) For the purposes of this Act, except if prescribed circumstances exist, if ownership
of a subject item is transferred in any manner otherwise than by way of sale from a particular person to
another person and if the subject item is delivered or made available in Canada, the following rules
apply:
(a) the particular person is deemed to sell the subject item to the other person;
(b) the particular person is deemed to be the vendor in respect of the sale and the
other person is deemed to be the purchaser in respect of the sale;
(c) the sale is deemed to be completed at the earlier of the time at which the
possession of the subject item is transferred and the time at which ownership of the subject item is
transferred; and
(d) the value of the consideration paid for the sale of the subject item is deemed to be
equal to the total of
(i) the retail value of the subject item at the time at which the sale is completed as
determined under paragraph (c), and
(ii) a prescribed amount.
Improvement to subject
item
8 (1) Subject to subsection (2), for the purposes of this Act, an improvement in respect
of a subject item is the provision of property or a service in any manner, including by way of sale,
transfer, barter, exchange, licence, rental, lease, gift or disposition, that is a provision of
(a) tangible personal property that is installed in or on, or is affixed to, the subject
item;
(b) a service that modifies the subject item and is physically performed in respect of
the subject item; or
(c) a prescribed property or service.
Excluded
improvements
(2) For the purposes of this Act, the provision of property or a service is deemed not
to be an improvement in respect of a subject item if it is
(a) the provision of a repair, cleaning or maintenance service in respect of the subject
item;
(b) the provision of tangible personal property to replace other tangible personal
property that is a part of the subject item and that is damaged, defective or non-functioning;
(c) in the case of a subject vehicle
(i) the provision of tangible personal property that is, or a service that is in respect
of,
(A) a child safety seating system or a child safety restraint system, or
(B) a trailer or camper, or
(ii) the provision of tangible personal property or a service that specially equips or
adapts the subject vehicle
(A) for its use by or in transporting an individual using a wheelchair, or
(B) with an auxiliary driving control to facilitate the operation of the vehicle by an
individual with a disability; or
(d) the provision of a prescribed property or service.
When improvement
completed
(3) Subject to subsection (4), for the purposes of this Act, an improvement in respect
of a subject item is completed at
(a) if the improvement is the provision of tangible personal property that is installed
in or on, or is affixed to, the subject item, the time at which the installation of the tangible personal
property is physically completed; or
(b) if the improvement is the provision of a service that is physically performed in
respect of the subject item, the time at which the performance of the service is physically
completed.
When improvement
completed — regulations
(4) For the purposes of this Act, if prescribed conditions are met in respect of an
improvement in respect of a subject item, the improvement is completed at the prescribed time.
Price threshold
9 For the purposes of this Act, the price threshold in respect of a subject item
is
(a) in the case of a subject vehicle, $100,000;
(b) in the case of a subject aircraft, $100,000; or
(c) in the case of a subject vessel, $250,000.
Meaning of
business
10 (1) For the purposes of this section, a business includes a profession, calling, trade, manufacture or
undertaking of any kind whatever and any activity engaged in on a regular or continuous basis that involves
the provision of property by way of lease, licence or similar arrangement, but does not include an office or
employment.
Where flights
originate and terminate
(2) For the purposes of this section, a flight of a subject aircraft originates at the
location of the take-off, as that term is defined in
subsection 101.01(1) of the Canadian Aviation Regulations,
of the subject aircraft and terminates at the location of the landing, as that term is defined in that subsection, of the
subject aircraft.
Qualifying
flight
(3) For the purposes of this section, except if prescribed circumstances exist, a
subject aircraft is used for a flight that is a qualifying flight if
(a) the purpose of the flight is to provide
(i) a scheduled service, as defined in
subsection 3(1) of the Transportation Information
Regulations,
(ii) an air ambulance service,
(iii) an aerial fire fighting service,
(iv) an aerial forest fire management service,
(v) an aerial search and rescue operation,
(vi) an aerial transportation service for the retrieval and transportation of organs for
human transplant,
(vii) an aerial weather altering service,
(viii) an aerial survey service,
(ix) an aerial construction service,
(x) an aerial spraying or spreading service,
(xi) an air flight training service, or
(xii) for the carriage of goods only;
(b) it is the case that
(i) all or substantially all of the passenger seats on the flight are offered for sale
on a seat-by-seat basis to the general public, and
(ii) all or substantially all of the passengers on the flight are individuals that deal
at arm’s length with
(A) the person that operates the subject aircraft for the flight,
(B) each person that is an owner of the subject aircraft, and
(C) in cases where one or more of those passenger seats are offered for sale by a person
other than a person referred to in clause (A) or (B), that other person;
(c) the flight originates or terminates in a remote community listed in the
Schedule;
(d) the flight is conducted in the course of a business of an owner of the subject
aircraft (other than a business without a reasonable expectation of profit) and otherwise than for the
leisure, recreation, sport or other enjoyment of
(i) an owner of the subject aircraft,
(ii) a guest of an owner of the subject aircraft on the subject aircraft, or
(iii) another person that has the right to use the subject aircraft under a lease, licence
or similar arrangement or a guest of the other person on the subject aircraft; or
(e) prescribed circumstances exist.
Qualifying subject
aircraft
(4) For the purposes of this Act, except in prescribed circumstances, a subject aircraft
is a qualifying subject aircraft of a person at a particular time that is on a particular day if the person
is an owner of the subject aircraft at the particular time and the amount determined by the following
formula is greater than or equal to 0.9:
(A + B + C) / (D + E +
F)
where
A is
(a) if the particular time is the time at which the person acquires ownership of the
subject aircraft, zero, or
(b) in any other case, the total of all amounts, each of which is a duration of time
that the subject aircraft was used for a flight that was a qualifying flight and that originated or
terminated at a location in Canada during the period that ends on the particular day and begins on the later
of
(i) the day on which the person became an owner of the subject aircraft, and
(ii) the day that is one year before the particular day;
B is the total of all amounts,
each of which is a duration of time for which it can reasonably be expected that the subject aircraft will
be used for a flight
(a) that is a qualifying flight,
(b) that originates or terminates at a location in Canada during the period that begins
on the day after the particular day and that ends on the day that is one year after the particular day,
and
(c) throughout which the person is an owner of the subject aircraft;
C is a prescribed
amount;
D is
(a) if the particular time is the time at which the person acquires ownership of the
subject aircraft, zero, or
(b) in any other case, the total of all amounts, each of which is a duration of time
that the subject aircraft was used for a flight that originated or terminated at a location in Canada during
the period that ends on the particular day and begins on the later of
(i) the day on which the person acquired ownership of the subject aircraft, and
(ii) the day that is one year before the particular day;
E is the total of all amounts,
each of which is a duration of time for which it can reasonably be expected that the subject aircraft will
be used for a flight
(a) that originates or terminates at a location in Canada during the period that begins
on the day after the particular day and that ends on the day that is one year after the particular day,
and
(b) throughout which the person is an owner of the subject aircraft; and
F is a prescribed
amount.
Qualifying subject
aircraft — regulations
(5) For the purposes of this Act, a subject aircraft is a qualifying subject aircraft of
a person at any time if prescribed conditions are met.
Where vessel journeys
originate and terminate
11 (1) For the purposes of this section, a journey by a subject vessel originates at the
location at which any of the following activities occur and terminates at the location where the subject
vessel is next stopped and at which any of the following activities occur:
(a) individuals embark on or disembark from the subject vessel;
(b) goods are loaded onto or removed from the subject vessel; or
(c) the subject vessel is stopped to allow for its servicing or refuelling or for
emergency or safety purposes.
Use in Canada —
vessel
(2) For the purposes of this section, if a journey by a subject vessel originates or
terminates at a location in Canada, the subject vessel is deemed to be used in Canada for the duration of
the entire journey.
Qualifying activities
— vessel
(3) For the purposes of this section, except in prescribed circumstances, a subject
vessel (other than a select subject vessel) is used in Canada in the course of a qualifying activity at any
time if
(a) the subject vessel is used in Canada at that time otherwise than for the leisure,
recreation, sport or other enjoyment of
(i) an owner of the subject vessel,
(ii) a guest of an owner of the subject vessel on the subject vessel, or
(iii) another person that has the right to use the subject vessel under a lease, licence
or similar arrangement or a guest of the other person on the subject vessel; or
(b) prescribed circumstances exist.
Qualifying subject
vessel
(4) For the purposes of this Act, except in prescribed circumstances, a subject vessel
(other than a select subject vessel) is a qualifying subject vessel of a person at a particular time that is
on a particular day if the person is an owner of the subject vessel at the particular time and the amount
determined by the following formula is greater than or equal to 0.9:
(A + B + C) / (D + E +
F)
where
A is
(a) if the particular time is the time at which the person acquires ownership of the
subject vessel, zero, or
(b) in any other case, the total of all amounts, each of which is a duration of time
that the subject vessel was used in Canada in the course of a qualifying activity during the period that
ends on the particular day and begins on the later of
(i) the day on which the person acquired ownership of the subject vessel, and
(ii) the day that is one year before the particular day;
B is the total of all amounts,
each of which is a duration of time for which it can reasonably be expected that the subject vessel will be
used in Canada in the course of a qualifying activity during the period that begins on the day after the
particular day and that ends on
(a) if it can reasonably be expected that the person will transfer ownership of the
subject vessel before the day that is one year after the particular day, the day on which it can reasonably
be expected that the person will transfer ownership of the subject vessel, or
(b) in any other case, the day that is one year after the particular day;
C is a prescribed
amount;
D is
(a) if the particular time is the time at which the person acquires ownership of the
subject vessel, zero, or
(b) in any other case, the total of all amounts, each of which is a duration of time
that the subject vessel was used in Canada during the period that ends on the particular day and begins on
the later of
(i) the day on which the person acquired ownership of the subject vessel, and
(ii) the day that is one year before the particular day;
E is the total of all amounts,
each of which is a duration of time for which it can reasonably be expected that the subject vessel will be
used in Canada during the period that begins on the day after the particular day and that ends on
(a) if it can reasonably be expected that the person will transfer ownership of the
subject vessel before the day that is one year after the particular day, the day on which it can reasonably
be expected that the person will transfer ownership of the subject vessel to another person, or
(b) in any other case, the day that is one year after the particular day; and
F is a prescribed
amount.
Qualifying subject
vessel — regulations
(5) For the purposes of this Act, a subject vessel is a qualifying subject vessel of a
person at any time if prescribed conditions are met.
Registration of
vehicle
12 (1) For the purposes of this Act, a subject vehicle is registered with a government if
it is registered with, or licensed by, that government for the purposes of permitting that subject vehicle
to travel on public roads within the jurisdiction of that government.
Registration of
aircraft
(2) For the purposes of this Act, a subject aircraft is registered with a government if
it is registered with, or licensed by, that government for the purposes of permitting that subject aircraft
to fly within the jurisdiction of that government.
Registration of
vessel
(3) For the purposes of this Act, a subject vessel is registered with a government if it
is registered with, or licensed by, that government for the purposes of permitting that subject vessel to
navigate within the jurisdiction of that government.
subdivision b
Consideration and Retail Value
Definitions
13 (1) The following definitions apply in this Subdivision.
money includes any currency, cheque, promissory note, letter of credit, draft,
traveller’s cheque, bill of exchange, postal note, money order, postal remittance and other similar
instrument, whether Canadian or foreign, but does not include currency the fair market value of which
exceeds its stated value as legal tender in the country of issuance or currency that is supplied or held for
its numismatic value. (argent)
provincial levy means
(a) a tax, duty or fee imposed under an Act of the legislature of a province in respect
of the supply, consumption or use of property or a service, other than
(i) a tax, duty or fee that is included in the Taxes, Duties and Fees (GST/HST) Regulations or that would be so
included if paragraph 3(b) of those Regulations were read without reference to subparagraph (iv) of that
paragraph, or
(ii) a prescribed tax, duty, fee or amount; or
(b) a prescribed tax, duty or fee. (prélèvement
provincial)
supply means a provision of property or a service in any manner, including sale, transfer,
barter, exchange, licence, rental, lease, gift or disposition. (fourniture)
When a supply is
made
(2) For the purposes of this Subdivision, a supply is made at the time at which
(a) if the supply is a sale of a subject item, the sale is completed;
(b) if the supply is an improvement in respect of a subject item, the improvement is
completed;
(c) if the supply is made in connection with a sale of a subject item and is not an
improvement in respect of the subject item, the sale is completed;
(d) if the supply is made in connection with an improvement in respect of a subject item
and is not an improvement in respect of the subject item, the improvement is completed; or
(e) in any other case, the supply is made for the purposes of Part IX of the Excise Tax Act.
When a supply is made
— regulations
(3) Despite subsection (2), for the purposes of this Subdivision, if prescribed
conditions are met in respect of a supply, the supply is made at the prescribed time.
Value of
consideration
14 (1) Subject to this Subdivision, for the purposes of this Act, the value of the
consideration, or any part thereof, for a supply is deemed to be equal to
(a) if the consideration or that part is expressed in money, the amount of the money;
and
(b) in any other case, the fair market value of the consideration or that part at the
time at which the supply was made.
Combined
consideration
(2) Subject to subsections (3) and (4), for the purposes of this Act, if
(a) consideration is paid for a supply and other consideration is paid for one or more
other supplies or matters, and
(b) the consideration for one of the supplies or matters exceeds the consideration that
would be reasonable if the other supply were not made or the other matter were not provided,
the consideration for each of the supplies and
matters is deemed to be that part of the total of all amounts, each of which is consideration for one of
those supplies or matters, that may reasonably be attributed to each of those supplies and matters.
Included in
consideration for a sale
(3) For the purposes of this Act, if consideration is paid for the sale of a subject
item and other consideration is paid for one or more other supplies or matters (other than an improvement in
respect of the subject item) and the other consideration represents a fee or other similar charge in respect
of the subject item or the sale, the following rules apply:
(a) the other supplies and matters are deemed to form part of the sale; and
(b) the other consideration is to be included in the consideration for the sale.
Included in
consideration for an improvement
(4) For the purposes of this Act, if consideration is paid for an improvement in respect
of a subject item and other consideration is paid for one or more other supplies or matters (other than a
sale of the subject item) and the other consideration represents a fee or other similar charge in respect of
the improvement, the following rules apply:
(a) the other supplies and matters are deemed to form part of the improvement;
and
(b) the other consideration is to be included in the consideration for the
improvement.
Incidental
supplies
(5) For the purposes of this Act, if a particular property or service is supplied
together with any other property or service for a single consideration and if it may reasonably be regarded
that the provision of the other property or service is incidental to the provision of the particular
property or service, the other property or service is deemed to form part of the particular property or
service so supplied.
Non-arm’s length
supplies
(6) For the purposes of this Act, if a supply of property or a service is made between
persons not dealing with each other at arm’s length for consideration less than the fair market value of the
property or service at the time at which the supply is made, the consideration paid for the supply is deemed
to be equal to the fair market value of the property or service at that time.
Nominal
consideration
(7) For the purposes of this Act, if a supply of property or a service is made for no
consideration or nominal consideration, the consideration paid for the supply is deemed to be equal to the
fair market value of the property or service at the time at which the supply is made.
Improvement by way of
lease, etc.
(8) For the purposes of this Act, if an improvement in respect of a subject item is
provided by way of lease, licence or similar arrangement and the improvement is the provision of tangible
personal property, the consideration paid for the improvement is deemed to be equal to the fair market value
of the improvement at the time at which the improvement is completed.
Value in Canadian
currency
(9) For the purposes of this Act, if the consideration for a supply is expressed in a
foreign currency, the value of the consideration is to be computed on the basis of the value of that foreign
currency in Canadian currency on the day that the supply is made, or on such other day as is acceptable to
the Minister.
Levies included in
consideration
15 For the purposes of this Act, the consideration for a supply of property or a
service includes
(a) any tax, duty or fee imposed under an Act of Parliament that is payable or
collectible in respect of the supply, production or importation of the property or service, other than tax
under this Act or Part IX of the Excise Tax Act that is
payable in respect of the property or service;
(b) any provincial levy that is payable or collectible in respect of the supply or
production of the property or service; and
(c) any other amount that is collectible in respect of the supply or production of the
property or service under an Act of the legislature of a province and that is equal to, or is collectible on
account of or in lieu of, a provincial levy.
Retail value of a
subject item
16 For the purposes of this Act, the retail value of a subject item at any time is the
amount determined by the formula
A + B + C + D
where
A is the fair market value of
the subject item at that time;
B is the total of all amounts,
each of which is a fee or charge in respect of the transportation or freight of the subject item but only to
the extent that the amount is not included in the determination of A;
C is the total of all amounts,
each of which is an amount described in any of the following paragraphs but only to the extent that each
amount is not included in the determination of A:
(a) a tax, duty or fee imposed under an Act of Parliament that is payable or collectible
in respect of a supply of the subject item or in respect of the production or importation of the subject
item, other than tax under this Act or Part IX of the Excise Tax
Act that is payable in respect of the subject item,
(b) a provincial levy that is payable or collectible in respect of a supply of the
subject item or in respect of the production of the subject item, or
(c) another amount that is collectible in respect of a supply of the subject item or in
respect of the production of the subject item under an Act of the legislature of a province and that is
equal to, or is collectible on account of or in lieu of, a provincial levy; and
D is a prescribed
amount.
subdivision C
Her Majesty
Her Majesty
17 This Act is binding on Her Majesty in right of Canada or a province.
DIVISION 2
Application of Tax
SUBDIVISION A
Tax on Sale
Tax — sale of subject
item
18 (1) Subject to this Act, if a vendor sells a subject item to a purchaser and the taxable
amount of the subject item exceeds the price threshold in respect of the subject item, tax in respect of the
subject item is payable to Her Majesty in right of Canada in the amount determined under section 34.
Liability for tax —
vendor or purchaser
(2) The tax under subsection (1) in respect of a subject item sold by a vendor to a
purchaser is payable by
(a) the purchaser, in the case where the vendor is
(i) Her Majesty in right of Canada or a province,
(ii) an agent of Her Majesty in right of Canada or a province,
(iii) an indigenous governing body,
(iv) a person entitled to tax relief privileges under the Foreign Missions and International Organizations Act for the
tax payable under subsection 165(1) of the Excise Tax Act
in respect of the sale, or
(v) a prescribed person; or
(b) the vendor, in any other case.
When tax
payable
(3) The tax under subsection (1) becomes payable at the time at which the sale is
completed.
Taxable amount
(4) Subject to subsections (5) to (7), the taxable amount of a subject item sold by a
vendor to a purchaser is, for the purposes of this section and for the purposes of determining under section
34 the amount of tax payable under this section, the amount
determined by the formula
A + B + C
where
A is the value of the
consideration for the sale of the subject item;
B is the total of all amounts,
each of which is the value of the consideration for an improvement in respect of the subject item that is
provided by the vendor, or a person that does not deal at arm’s length with the vendor, in connection with
the sale of the subject item, but only to the extent that the amount is not included in the determination of
A; and
C is a prescribed
amount.
Taxable amount — lease
by non-arm’s length purchaser
(5) Subject to subsection (7), if a vendor sells a subject item to a purchaser that does
not deal at arm’s length with the vendor, if the purchaser and another person enter into a lease, licence or
similar arrangement (in this subsection referred to as the “lease agreement”) that provides the other person
with the right to use the subject item for a period of at least 6 months and if the lease agreement is
entered into in connection with the sale, the taxable amount of the subject item is, for the purposes of
this section and for the purposes of determining under section 34 the amount of tax payable under this section, the amount
determined by the formula
A + B
where
A is the greatest of
(a) the value of the consideration for the sale,
(b) the retail value of the subject item at the time at which the other person first has
the right to use the subject item under the lease agreement, and
(c) the retail value of the subject item at the time at which possession of the subject
item is transferred to the other person under the lease agreement; and
B is a prescribed
amount.
Taxable amount — lease
to vendor by purchaser
(6) Subject to subsection (7), if a vendor sells a subject item to a purchaser, if the
purchaser and the vendor enter into a lease, licence or similar arrangement (in this subsection referred to
as the “lease agreement”) that provides the vendor with the right to use the subject item for a period of at
least 6 months and if the lease agreement is entered into in connection with the sale, the taxable amount of
the subject item is, for the purposes of this section and for the purposes of determining under section
34 the amount of tax payable under this section, the amount
determined by the formula
A + B
where
A is the greater of
(a) the value of the consideration for the sale, and
(b) the retail value of the subject item at the time at which the vendor first has the
right to use the subject item under the lease agreement; and
B is a prescribed
amount.
Taxable amount —
regulations
(7) For the purposes of this section and for the purposes of determining under section
34 the amount of tax payable under this section, the taxable
amount of a subject item in prescribed circumstances is to be determined in prescribed manner.
Tax not payable —
registered vendor of vehicles
19 (1) The tax under section 18 in respect of
a subject vehicle sold by a vendor to a purchaser is not payable if an exemption certificate applies in
respect of the sale of the subject vehicle in accordance with section 36 and if the vendor is a registered vendor in respect of subject
vehicles or a prescribed person.
Tax not payable —
previously registered vehicle
(2) The tax under section 18 in respect of
a subject vehicle sold by a vendor to a purchaser is not payable if the subject vehicle has been registered
with the Government of Canada or a province except if
(a) the subject vehicle was registered only because of the sale and has never otherwise
been registered with the Government of Canada or a province; or
(b) the vendor
(i) is Her Majesty in right of Canada or a province, an agent of Her Majesty in right of
Canada or a province or an indigenous governing body,
(ii) imported the subject vehicle, and
(iii) did not pay tax under section 20 in
respect of the importation of the subject vehicle.
Tax not payable —
certain vehicles
(3) The tax under section 18 in respect of
a subject vehicle sold by a vendor to a purchaser is not payable if
(a) the subject vehicle is equipped for policing activities and
(i) the purchaser is a police authority or a military authority, or
(ii) it is the case that
(A) the purchaser and a police authority or military authority enter into an agreement
that is a lease, licence or similar arrangement,
(B) the agreement is entered into at or before the time at which the sale is
completed,
(C) the police authority or military authority has the right to use the subject vehicle
for a period of at least 6 months under the agreement,
(D) the purchaser transfers possession of the subject vehicle to the police authority or
military authority under the agreement, and
(E) the purchaser provides to the vendor, and the vendor retains, evidence satisfactory
to the Minister that the conditions in clauses (A) to (D) are met in respect of the subject vehicle;
or
(b) the subject vehicle is equipped for military activities and
(i) the purchaser is a military authority, or
(ii) it is the case that
(A) the purchaser and a military authority enter into an agreement that is a lease,
licence or similar arrangement,
(B) the agreement is entered into at or before the time at which the sale is
completed,
(C) the military authority has the right to use the subject vehicle for a period of at
least 6 months under the agreement,
(D) the purchaser transfers possession of the subject vehicle to the military authority
under the agreement, and
(E) the purchaser provides to the vendor, and the vendor retains, evidence satisfactory
to the Minister that the conditions in clauses (A) to (D) are met in respect of the subject vehicle.
Tax not payable —
exemption certificate for aircraft or vessel
(4) The tax under section 18 in respect of
a subject aircraft or subject vessel sold by a vendor to a purchaser is not payable if an exemption
certificate applies in respect of the sale in accordance with section 36.
Tax not payable —
tax-paid certificate for aircraft or vessel
(5) The tax under section 18 in respect of
a subject aircraft or subject vessel sold by a vendor to a purchaser is not payable if a tax-paid
certificate in respect of the subject aircraft or subject vessel is in effect in accordance with section
37 at the time at which the sale is completed.
SUBDIVISION B
Tax on Importation
Tax — importation into
Canada
20 (1) Subject to this Act, a person that is liable under the Customs Act to pay duty on an imported subject item, or that
would be so liable if the subject item were subject to duty, must pay to Her Majesty in right of Canada tax
in respect of the subject item in the amount determined under section 34 if the taxable amount of the subject item exceeds the price
threshold in respect of the subject item.
Taxable amount
(2) Subject to subsection (3), the taxable amount of a subject item that is imported is,
for the purposes of this section and for the purposes of determining under section 34 the amount of tax payable under this section, the amount
determined by the formula
A + B + C
where
A is the value of the subject
item, as it would be determined under the Customs Act for
the purposes of calculating duties imposed on the subject item at a percentage rate, whether the subject
item is in fact subject to duty;
B is the amount of all duties
and taxes, if any, payable on the subject item under the Customs
Tariff, the Excise Tax Act (other than Part IX of
that Act), the Special Import Measures Act or any other law
relating to customs; and
C is a prescribed
amount.
Taxable amount —
regulations
(3) For the purposes of this section and for the purposes of determining under section
34 the amount of tax payable under this section, the taxable
amount of a subject item in prescribed circumstances is to be determined in prescribed manner.
Application of
Customs Act
(4) Subject to this Act, tax under this section in respect of a subject item is to be
paid and collected under the Customs Act, and interest and
penalties are to be imposed, calculated, paid and collected under that Act, as if the tax were a customs
duty levied on the subject item under the Customs Tariff
and, for those purposes, the Customs Act applies with any
modifications that the circumstances require.
Tax not payable —
registered vendor
21 (1) The tax under section 20 in respect of
a subject item that is imported is not payable if the subject item is imported by a registered vendor in
respect of that type of subject item.
Tax not payable —
previously registered vehicles
(2) The tax under section 20 in respect of
a subject vehicle that is imported is not payable if the subject vehicle has been registered with the
Government of Canada or a province before the importation unless
(a) the registration was done in connection with the importation; and
(b) the subject vehicle has never otherwise been registered with the Government of
Canada or a province.
Tax not payable —
certain vehicles
(3) The tax under section 20 in respect of
a subject vehicle that is imported is not payable if
(a) the subject vehicle is equipped for policing activities and imported by a police
authority or a military authority; or
(b) the subject vehicle is equipped for military activities and imported by a military
authority.
Tax not payable —
tax-paid certificate
(4) The tax under section 20 in respect of
a subject aircraft or subject vessel is not payable if a tax-paid certificate in respect of the subject
aircraft or subject vessel is in effect in accordance with section 37 at the time at which the tax would become payable in the absence
of this subsection.
Tax not payable —
special import certificate
(5) The tax under section 20 in respect of
a subject aircraft or subject vessel (other than a select subject vessel) that is imported is not payable
if, at the time at which the tax would become payable in the absence of this subsection, a special import
certificate in respect of the importation is in effect in accordance with section 38.
Tax not payable —
special cases
(6) The tax under section 20 in respect of
a subject item that is imported is not payable if
(a) the subject item is classified under heading No. 9801, 9802 or 9803 of Schedule I to
the Customs Tariff, to the extent that the subject item is
not subject to duty under that Act;
(b) the subject item is imported for the sole purpose of maintenance, overhaul or repair
of the subject item in Canada and
(i) neither title to, nor beneficial use of, the subject item is intended to pass, or
passes, to a person in Canada while the subject item is in Canada, and
(ii) the subject item is exported as soon after the maintenance, overhaul or repair is
completed as is reasonable having regard to the circumstances surrounding the importation and, where
applicable, to the normal business practice of the importer;
(c) it is the case that
(i) the subject item is a foreign-based conveyance,
(ii) the importation of the subject item was non-taxable by reason of the reference to
heading No. 9801 of Schedule I to the Customs
Tariff in paragraph (a) but the subject item is diverted solely for maintenance, overhaul or repair
in Canada,
(iii) neither title to, nor beneficial use of, the subject item is intended to pass, or
passes, to a person in Canada while the subject item is in Canada, and
(iv) the subject item is exported as soon after the maintenance, overhaul or repair is
completed as is reasonable having regard to the circumstances surrounding the importation and, where
applicable, to the normal business practice of the importer;
(d) the subject item is a subject vessel imported in circumstances where customs duties
have been removed under subsection 7(1) of the Vessel Duties
Reduction or Removal Regulations;
(e) the subject item is a subject vehicle that is imported temporarily by an individual
resident in Canada and
(i) the subject item was last provided in the course of a vehicle rental business to the
individual by way of lease, licence or similar arrangement under which continuous possession or use of the
subject item is provided for a period of less than 180 days,
(ii) immediately before the importation, the individual was outside Canada for an
uninterrupted period of at least 48 hours, and
(iii) the subject item is exported within 30 days after the importation; or
(f) the subject item would be classified under heading No. 9802 of Schedule I to the
Customs Tariff to the extent that the subject item would
not be subject to duty under that Act if the definition conveyance in section 2 of the Temporary Importation of Conveyances by Residents of Canada
Regulations were read as follows:
conveyance means any vehicle,
aircraft, water-borne craft or other contrivance that is used to move persons or goods;
Meaning of
determination of the tax status
22 (1) In this section, determination of the tax
status of a subject item means a determination, re-determination or further re-determination that
tax under this Subdivision is, or is not, payable in respect of the subject item.
Application of
Customs Act — determination
(2) Subject to subsections (4) to (6), the Customs Act (other than subsections 67(2) and (3) and sections
68 and 70) and the regulations made under that Act apply, with any modifications that the circumstances
require, to the determination of the tax status of a subject item for the purposes of this Subdivision as if
it were the determination, re-determination or further re-determination, as the case requires, of the tariff
classification of the subject item.
Application of
Customs Act — appraisal
(3) The Customs Act and the regulations
made under that Act apply, with any modifications that the circumstances require, to the appraisal,
re-appraisal or further re-appraisal of the value of a subject item for the purposes of this Subdivision as
if it were the appraisal, re-appraisal or further re-appraisal, as the case requires, of the value for duty
of the subject item.
Appeals of
determination of tax status
(4) In applying the Customs Act to a
determination of the tax status of a subject item, the references in that Act to the “Canadian International
Trade Tribunal” are to be read as references to the “Tax Court of Canada”.
Application of this
Act and Tax Court of Canada Act
(5) The provisions of this Act and of the Tax
Court of Canada Act that apply to an appeal taken under section 100 apply, with any modifications that the circumstances require,
to an appeal taken under subsection 67(1) of the Customs
Act from a decision of the President of the Canada Border Services Agency made under section 60 or
61 of the Customs Act in a determination of the tax status
of a subject item as if the decision of the President were a confirmation of an assessment or a reassessment
made by the Minister under subsection 97(8) or (9) as a
consequence of a notice of objection filed under subsection 97(1) by the person to which the President is required to give
notice under section 60 or 61 of the Customs Act, as the
case may be, of the decision.
Rebate resulting from
appraisal or re-appraisal
(6) If, because of an appraisal, a re-appraisal or a further re-appraisal of the value
of a subject item or a determination of the tax status of a subject item, it is determined that the amount
that was paid as tax under this Subdivision in respect of the subject item exceeds the amount of tax that is
required under this Subdivision to be paid in respect of the subject item and a refund of the excess would
be given under paragraph 59(3)(b) or 65(1)(b) of the Customs
Act if the tax under this Subdivision in respect of the subject item were a customs duty in respect
of the subject item levied under the Customs Tariff, a
rebate of the excess is to be paid, subject to section 46, to
the person that paid the excess, and the provisions of the Customs
Act that relate to the payment of such refunds and interest on such refunds apply, with any
modifications that the circumstances require, as if the rebate of the excess were a refund of duty.
Application of section
69 of Customs Act
(7) Subject to section 46, section 69 of
the Customs Act applies, with any modifications that the
circumstances require, if an appeal in respect of the value of a subject item or a determination of the tax
status of a subject item is taken for the purpose of determining whether tax under this Subdivision in
respect of the subject item is payable or of determining the amount of such tax.
SUBDIVISION C
Tax in Other Circumstances
Tax — registration of
registered vendor’s vehicle
23 (1) Subject to this Act, if a registered vendor in respect of subject vehicles is an
owner of a subject vehicle at a particular time, if the subject vehicle is registered at the particular time
with the Government of Canada or a province, if the subject vehicle has never otherwise been registered with
the Government of Canada or a province and if the taxable amount of the subject vehicle exceeds the price
threshold in respect of the subject vehicle, the registered vendor must pay to Her Majesty in right of
Canada tax in respect of the subject vehicle in the amount determined under section 34.
When tax
payable
(2) The tax under subsection (1) becomes payable at the particular time referred to in
that subsection.
Tax not payable
(3) The tax under subsection (1) in respect of a registration of a subject vehicle owned
by a registered vendor is not payable if the registration of the subject vehicle is done only because
(a) the subject vehicle is sold by the registered vendor to a purchaser; or
(b) the right to use the subject vehicle is provided by the registered vendor to a
person under a lease, licence or similar arrangement.
Taxable amount
(4) Subject to subsection (5), the taxable amount of a subject vehicle that is owned by
a registered vendor is, for the purposes of this section and for the purposes of determining under section
34 the amount of tax payable under this section, the amount
determined by the formula
A + B
where
A is the greater of
(a) the retail value of the subject vehicle at the time at which the subject vehicle is
registered with the Government of Canada or a province, and
(b) the retail value of the subject vehicle at the time at which the registered vendor
first uses the subject vehicle; and
B is a prescribed
amount.
Taxable amount —
regulations
(5) For the purposes of this section and for the purposes of determining under section
34 the amount of tax payable under this section, the taxable
amount of a subject vehicle in prescribed circumstances is to be determined in prescribed manner.
Tax — lease of subject
vehicle
24 (1) Subject to this Act, if a registered vendor in respect of subject vehicles is an
owner of a subject vehicle, if the registered vendor provides the right to use the subject vehicle to
another person under a lease, licence or similar arrangement, if the subject vehicle has not previously been
registered with the Government of Canada or a province otherwise than in connection with the lease, licence
or similar arrangement and if the taxable amount of the subject vehicle exceeds the price threshold in
respect of the subject vehicle, the registered vendor must pay to Her Majesty in right of Canada tax in
respect of the subject vehicle in the amount determined under section 34.
When tax
payable
(2) The tax under subsection (1) becomes payable at the time at which the other person
first has the right to use the subject item under the lease, licence or similar arrangement.
Tax not payable
(3) The tax under subsection (1) in respect of a subject vehicle that is owned by a
registered vendor and in respect of which the right to use the subject item is provided to another person
under a lease, licence or similar arrangement is not payable if
(a) the subject vehicle is equipped for policing activities and
(i) the other person is a police authority or military authority,
(ii) the other person has the right to use the subject item for a period of at least 6
months under the lease, licence or similar arrangement,
(iii) the registered vendor transfers possession of the subject vehicle to the other
person under the lease, licence or similar arrangement, and
(iv) the registered vendor retains evidence satisfactory to the Minister that the
conditions in subparagraphs (i) to (iii) are met in respect of the subject item; or
(b) the subject vehicle is equipped for military activities and
(i) the other person is a military authority,
(ii) the other person has the right to use the subject item for a period of at least 6
months under the lease, licence or similar arrangement,
(iii) the registered vendor transfers possession of the subject vehicle to the other
person under the lease, licence or similar arrangement, and
(iv) the registered vendor retains evidence satisfactory to the Minister that the
conditions in subparagraphs (i) to (iii) are met in respect of the subject item.
Taxable amount
(4) Subject to subsection (5), the taxable amount of a subject vehicle that is owned by
a registered vendor is, for the purposes of this section and for the purposes of determining under section
34 the amount of tax payable under this section, the amount
determined by the formula
A + B
where
A is the greater of
(a) the retail value of the subject vehicle at the time at which possession of the
subject vehicle is first transferred to the other person referred to in subsection (1) under the lease,
licence or similar arrangement referred to in that subsection, and
(b) the retail value of the subject vehicle at the time at which the other person first
has the right to use the subject vehicle under the lease, license or similar arrangement; and
B is a prescribed
amount.
Taxable amount —
regulations
(5) For the purposes of this section and for the purposes of determining under section
34 the amount of tax payable under this section, the taxable
amount of a subject item in prescribed circumstances is to be determined in prescribed manner.
Tax — lease of
aircraft or vessel
25 (1) Subject to this Act, if a particular person is an owner of a subject item that is a
subject aircraft or subject vessel, if the particular person provides the right to use the subject item to
another person under a lease, licence or similar arrangement and if the taxable amount of the subject item
exceeds the price threshold in respect of the subject item, the particular person must pay to Her Majesty in
right of Canada tax in respect of the subject item in the amount determined under section 34.
When tax
payable
(2) The tax under subsection (1) becomes payable at the time at which the other person
first has the right to use the subject item under the lease, licence or similar arrangement.
Tax not payable
(3) The tax under subsection (1) in respect of a subject item that is owned by a
particular person and in respect of which the right to use the subject item is provided to another person
under a lease, licence or similar arrangement is not payable if, at the time at which the other person first
has the right to use the subject item under a lease, licence or similar arrangement
(a) in the case of a subject vessel (other than a select subject vessel), the subject
item is a qualifying subject vessel of the particular person;
(b) in the case of a subject aircraft
(i) the subject item is a qualifying subject aircraft of the particular person,
(ii) each person that is an owner of the subject item is a qualifying aircraft user,
or
(iii) the other person is a qualifying aircraft user; or
(c) a tax-paid certificate in respect of the subject item is in effect in accordance
with section 37.
Taxable amount
(4) Subject to subsection (5), the taxable amount of a subject item that is owned by a
particular person and in respect of which the right to use the subject item is provided to another person
under a lease, licence or similar arrangement is, for the purposes of this section and for the purposes of
determining under section 34 the amount of tax payable under
this section, the amount determined by the formula
A + B
where
A is the greater of
(a) the retail value of the subject item at the time at which possession of the subject
item is first transferred to the other person under the lease, licence or similar arrangement, and
(b) the retail value of the subject item at the time at which the other person first has
the right to use the subject item under the lease, license or similar arrangement; and
B is a prescribed
amount.
Taxable amount —
regulations
(5) For the purposes of this section and for the purposes of determining under section
34 the amount of tax payable under this section, the taxable
amount of a subject item in prescribed circumstances is to be determined in prescribed manner.
Tax — use of aircraft
or vessel
26 (1) Subject to this Act, if a person is an owner at a particular time of a subject item
that is a subject aircraft or subject vessel, if the subject item is used in Canada at the particular time
and if the taxable amount of the subject item exceeds the price threshold in respect of the subject item,
the person must pay to Her Majesty in right of Canada tax in respect of the subject item in the amount
determined under section 34.
When tax
payable
(2) The tax under subsection (1) becomes payable at the particular time.
Tax not payable
(3) The tax under subsection (1) in respect of a subject item that is used in Canada by
a person at a particular time is not payable if
(a) in the case of a subject vessel (other than a select subject vessel), the subject
item is a qualifying subject vessel of the person at the particular time;
(b) the person is a registered vendor in respect of that type of subject item and the
use of the subject item by the person is reasonably necessary or incidental to the manufacture, offering for
sale or transportation of the subject item;
(c) in the case of a subject aircraft, at the particular time
(i) the subject item is a qualifying subject aircraft, or
(ii) each person that is an owner of the subject aircraft is a qualifying aircraft
user;
(d) a tax-paid certificate in respect of the subject item is in effect at the particular
time in accordance with section 37;
(e) the person imported the subject item before the particular time and tax under
section 20 in respect of the importation was not payable by the
person because of the application of subsection 21(6);
or
(f) tax in respect of the subject item became payable under section 27 or 28 by the person
at or before the particular time.
Taxable amount
(4) Subject to subsection (5), the taxable amount of a subject item that is used in
Canada at a particular time is, for the purposes of this section and for the purposes of determining under
section 34 the amount of tax payable under this section, the
amount determined by the formula
A + B
where
A is the retail value of the
subject item at the particular time; and
B is a prescribed
amount.
Taxable amount —
regulations
(5) For the purposes of this section and for the purposes of determining under section
34 the amount of tax payable under this section, the taxable
amount of a subject item in prescribed circumstances is to be determined in prescribed manner.
Tax — ceasing to be a
registered vendor
27 (1) Subject to this Act, if a person ceases to be a registered vendor in respect of a
type of subject item at a particular time, if the person is an owner of a subject item of that type at the
particular time and if the taxable amount of the subject item exceeds the price threshold in respect of the
subject item, the person must pay to Her Majesty in right of Canada tax in respect of the subject item in
the amount determined under section 34.
When tax
payable
(2) The tax under subsection (1) becomes payable at the particular time referred to in
that subsection.
Tax not payable
(3) The tax under subsection (1) in respect of a subject item that is owned by a person
is not payable if, at the time at which the person ceases to be a registered vendor in respect of that type
of subject item
(a) in the case of a subject vehicle, the subject item was registered with the
Government of Canada or a province before that time;
(b) in the case of a subject aircraft
(i) if the person is the only owner of the subject aircraft, the person is a qualifying
aircraft user at that time, or
(ii) in any other case, each person that is an owner of the subject aircraft is a
qualifying aircraft user at that time;
(c) in the case of a subject aircraft or subject vessel (other than a select subject
vessel), the subject item is a qualifying subject aircraft or qualifying subject vessel of the person at
that time; or
(d) in the case of a subject aircraft or subject vessel, a tax-paid certificate in
respect of the subject item is in effect at that time in accordance with section 37.
Taxable amount
(4) Subject to subsection (5), the taxable amount of a subject item owned by a person
is, for the purposes of this section and for the purposes of determining under section 34 the amount of tax payable under this section, the amount
determined by the formula
A + B
where
A is the retail value of the
subject item at the time at which the person ceases to be a registered vendor in respect of that type of
subject item; and
B is a prescribed
amount.
Taxable amount —
regulations
(5) For the purposes of this section and for the purposes of determining under section
34 the amount of tax payable under this section, the taxable
amount of a subject item in prescribed circumstances is to be determined in prescribed manner.
Tax — ceasing to be a
qualifying aircraft user
28 (1) Subject to this Act, if a person ceases to be a qualifying aircraft user at a
particular time, if the person is an owner of a subject aircraft at the particular time and if the taxable
amount of the subject aircraft exceeds the price threshold in respect of the subject aircraft, the person
must pay to Her Majesty in right of Canada tax in respect of the subject aircraft in the amount determined
under section 34.
When tax
payable
(2) The tax under subsection (1) becomes payable at the particular time referred to in
that subsection.
Tax not payable
(3) The tax under subsection (1) in respect of a subject aircraft that is owned by a
person is not payable if, at the time at which the person ceases to be a qualifying aircraft user
(a) the subject aircraft is a qualifying subject aircraft of the person at that time;
or
(b) a tax-paid certificate in respect of the subject aircraft is in effect at that time
in accordance with section 37.
Taxable amount
(4) Subject to subsection (5), the taxable amount of a subject aircraft owned by a
person is, for the purposes of this section and for the purposes of determining under section 34 the amount of tax payable under this section, the amount
determined by the formula
A + B
where
A is the retail value of the
subject aircraft at the time at which the person ceases to be a qualifying aircraft user; and
B is a prescribed
amount.
Taxable amount —
regulations
(5) For the purposes of this section and for the purposes of determining under section
34 the amount of tax payable under this section, the taxable
amount of a subject item in prescribed circumstances is to be determined in prescribed manner.
SUBDIVISION D
Tax on Improvements
Rules — improvement
after sale
29 (1) Subject to section 31, for the purposes
of this section and for the purposes of determining under section 35 the amount of tax payable under this section, if a vendor sells
a subject item to a particular purchaser, the following rules apply:
(a) the improvement period in respect of the subject item is the period that begins on
the day that an agreement for the sale is entered into and ends on
(i) if the subject item is subsequently sold to a person that deals at arm’s length with
the particular purchaser and if the sale to the person is completed on a particular day that is before the
day that is one year after the day on which the sale to the particular purchaser is completed, the
particular day, or
(ii) in any other case, the day that is one year after the day on which the sale to the
particular purchaser is completed;
(b) the unimproved taxable amount of the subject item is equal to the taxable amount of
the subject item as determined under section 18 in respect of
the sale to the particular purchaser; and
(c) the net improvement amount of the subject item is equal to the total of all amounts,
each of which is the value of the consideration for an improvement in respect of the subject item that is
completed at any time during the improvement period in respect of the subject item but only to the extent
that the value of the consideration is not included in the determination of the unimproved taxable amount of
the subject item.
Tax — improvement
after sale
(2) Subject to this Act, a person must pay to Her Majesty in right of Canada tax in
respect of a subject item in the amount determined under section 35 if
(a) a vendor sells the subject item to the person and tax in respect of the subject item
becomes payable under section 18; and
(b) the net improvement amount of the subject item is greater than or equal to
$5,000.
When tax
payable
(3) The tax under subsection (2) in respect of a subject item becomes payable at the
beginning of the day following the day on which the improvement period in respect of the subject item
ends.
Rules — improvement in
other circumstances
30 (1) Subject to section 31, for the purposes
of this section and for the purposes of determining under section 35 the amount of tax payable under this section, if tax in respect
of a subject item becomes payable by a person on a particular day under any of sections 20 and 23 to 28, the following rules apply:
(a) the improvement period in respect of the subject item is the period that begins on
the particular day and ends on
(i) if the subject item is subsequently sold to another person that deals at arm’s
length with the person and the sale is completed before the day that is one year after the particular day,
the day on which the sale is completed, or
(ii) in any other case, the day that is one year after the particular day; and
(b) the unimproved taxable amount of the subject item is equal to the taxable amount of
the subject item as determined under whichever of those sections is applicable; and
(c) the net improvement amount of the subject item is equal to the total of all amounts,
each of which is the value of the consideration for an improvement in respect of the subject item that is
completed at any time during the improvement period in respect of the subject item but only to the extent
that the value of the consideration is not included in the determination of the unimproved taxable amount of
the subject item.
Tax — improvement in
other circumstances
(2) Subject to this Act, a person must pay to Her Majesty in right of Canada tax in
respect of a subject item in the amount determined under section 35 if
(a) tax in respect of the subject item becomes payable on a particular day by the person
under any of sections 20 and 23 to 28; and
(b) the net improvement amount of the subject item is greater than or equal to
$5,000.
When tax
payable
(3) The tax under subsection (2) in respect of a subject item becomes payable at the
beginning of the day following the day on which the improvement period in respect of the subject item
ends.
Improvement period —
regulations
31 (1) For the purposes of this Subdivision, if prescribed circumstances exist, the
improvement period in respect of a subject item is a prescribed period.
Unimproved taxable
amount — regulations
(2) For the purposes of this Subdivision and for the purposes of determining under
section 35 the amount of tax payable under this Subdivision in
respect of a subject item, if prescribed circumstances exist, the unimproved taxable amount of the subject
item is to be determined in prescribed manner.
Net improvement amount
— regulations
(3) For the purposes of this Subdivision and for the purposes of determining under
section 35 the amount of tax payable under this Subdivision in
respect of a subject item, if prescribed circumstances exist, the net improvement amount of the subject item
is to be determined in prescribed manner.
Non-arm’s length —
joint and several, or solidary, liability
32 If tax in respect of a subject item is payable by a particular person under section
29 or 30 and if
ownership of the subject item is transferred at any time during the improvement period in respect of the
subject item to another person that is not dealing at arm’s length with the particular person, the other
person is jointly and severally, or solidarily, liable with the particular person for the payment of the
tax.
SUBDIVISION E
General Rules
Tax not payable —
regulations
33 Tax under this Act in respect of a subject item is not payable if prescribed
circumstances exist.
Amount of tax —
general
34 The amount of tax payable under this Division (other than Subdivision D) in respect
of a subject item is equal to the lesser of
(a) the amount determined by the formula
A × B
where
A is the taxable amount of the
subject item, and
B is 10%, and
(b) the amount determined by the formula
(C − D) × E
where
C is the taxable amount of the
subject item,
D is the price threshold in
respect of the subject item, and
E is 20%.
Amount of tax —
improvement
35 The amount of tax payable under Subdivision D in respect of a subject item is equal
to the amount determined by the formula
(A − B) + C
where
A is the amount that would be
the amount of tax payable in respect of the subject item if that amount of tax were determined under section
34 and the taxable amount of the subject item were equal to the
total of the unimproved taxable amount of the subject item and the net improvement amount of the subject
item;
B is the amount that would be
the amount of tax payable in respect of the subject item if that amount of tax were determined under section
34 and the taxable amount of the subject item were equal to the
unimproved taxable amount of the subject item; and
C is a prescribed
amount.
DIVISION 3
Certificates
Exemption
certificate
36 (1) For the purposes of this Act, an exemption certificate applies in respect of the
sale of a subject item by a vendor to a purchaser only if
(a) the certificate is made in prescribed form containing prescribed information;
(b) the certificate includes
(i) the identification number of the subject item,
(ii) one of the following declarations by the purchaser:
(A) a declaration that the purchaser is a registered vendor in respect of that type of
subject item at the time at which the sale is completed,
(B) in the case of a subject aircraft, a declaration that the purchaser is a qualifying
aircraft user at the time at which the sale is completed, or
(C) in the case of a subject aircraft, a declaration that the subject item is, at the
time at which ownership of the subject item is transferred to the purchaser, a qualifying subject aircraft
of the purchaser, or
(D) in the case of a subject vessel (other than a select subject vessel), a declaration
that the subject item is, at the time at which ownership of the subject item is transferred to the
purchaser, a qualifying subject vessel of the purchaser,
(iii) if the certificate includes the declaration in clause (ii)(A), the registration
number assigned to the purchaser under subsection 51(2),
and
(iv) an acknowledgement by the purchaser that the purchaser is assuming liability to pay
any amount of tax in respect of the subject item that is or may become payable by the purchaser under this
Act;
(c) the purchaser provides, in a manner satisfactory to the Minister, the certificate in
respect of the sale to the vendor; and
(d) the vendor retains the certificate.
Exemption certificate
— multiple purchasers
(2) For the purposes of this Act, if a subject item is sold by a vendor to more than one
purchaser, an exemption certificate applies in respect of the sale of the subject item only if
(a) in the absence of this subsection, an exemption certificate would apply in respect
of each purchaser in accordance with subsection (1); and
(b) the declaration that is made by each purchaser under subparagraph (1)(b)(ii) is made
under the same clause of that subparagraph.
Exemption certificate
— regulations
(3) Despite subsections (1) and (2), for the purposes of this Act, if prescribed
circumstances exist, an exemption certificate applies in respect of a sale of a subject item.
Tax-paid
certificate
37 (1) A person must send to the Minister an application for a tax-paid certificate in
respect of a subject item that is a subject aircraft or subject vessel if
(a) tax in respect of the subject item became payable by the person on a particular
day;
(b) it is the case that
(i) if the tax became payable under section 20, the tax was paid in accordance with that section, or
(ii) in any other case, the person has filed with the Minister the return for the
reporting period that includes the particular day and the person has taken into account the tax in
determining the net tax for that reporting period;
(c) in the case where a rebate is or was available in respect of the subject item under
Division 4, the amount of the rebate is less than the amount of the tax; and
(d) prescribed conditions, if any, are met.
Content of
application
(2) An application under subsection (1) in respect of a subject item must
(a) include the identification number of the subject item;
(b) specify the date on which the tax in respect of the subject item became
payable;
(c) include evidence satisfactory to the Minister that the conditions described in
subparagraph (1)(b)(i) or (ii), as the case may be, are met; and
(d) be made in prescribed form containing prescribed information.
Timing of
application
(3) An application under subsection (1) in respect of a subject item must be filed with
the Minister in prescribed manner on or before
(a) the particular day that is one year after the day on which the tax in respect of the
subject item became payable; or
(b) any day after the particular day that the Minister may allow.
Issuance of tax-paid
certificate
(4) Upon receipt of an application under subsection (1) in respect of a subject item,
the Minister must consider, with all due dispatch, the application and, if the Minister is satisfied that
the conditions described in that subsection are met in respect of the subject item, issue a tax-paid
certificate in respect of the subject item specifying
(a) the identification number of the subject item;
(b) the date on which the tax-paid certificate came into effect;
(c) that tax in respect of the subject item was paid; and
(d) any other information that is prescribed by regulation.
Tax-paid certificate —
in effect
(5) For the purposes of this Act, a tax-paid certificate in respect of a subject item
that is issued under subsection (4) is deemed to be in effect beginning immediately after the time at which
the tax in respect of the subject item became payable.
Existing
certificate
(6) The Minister must not issue a tax-paid certificate in respect of a subject item if
another tax-paid certificate has previously been issued in respect of the subject item under subsection (4)
and the other tax-paid certificate has not been revoked under subsection (10).
Statement to
applicant
(7) After considering an application under subsection (1) in respect of a subject item,
the Minister must send, or make available in electronic format, to the applicant a statement specifying
whether or not a tax-paid certificate was issued under subsection (4) in respect of the subject item
and
(a) if a tax-paid certificate in respect of the subject item was issued because of the
application, the Minister must send, or make available in electronic format, to the applicant with the
statement a copy of, or the information included on, the tax-paid certificate; or
(b) if the Minister does not issue a tax-paid certificate because there exists a
previously issued tax-paid certificate in respect of the subject item that has not been revoked under
subsection (10), the Minister must send, or make available in electronic format, to the applicant with the
statement a copy of, or the information included on, the previously issued tax-paid certificate.
Request by third
party
(8) On request made by a person to the Minister in prescribed manner, the Minister must
send, or make available in electronic format, to the person
(a) a statement specifying
(i) whether a tax-paid certificate in respect of a subject item has been issued under
subsection (4), and
(ii) if a tax-paid certificate in respect of the subject item has been issued under
subsection (4), whether a notice of revocation in respect of the tax-paid certificate has been issued under
subsection (10);
(b) if a tax-paid certificate in respect of the subject item has been issued under
subsection (4), a copy of, or the information included on, the tax-paid certificate; and
(c) if a notice of revocation in respect of a tax-paid certificate in respect of the
subject item has been issued under subsection (10), a copy of, or the information included on, the notice of
revocation.
Notification of
change
(9) If a tax-paid certificate in respect of a subject item was issued under subsection
(4), if the tax-paid certificate has not been revoked under subsection (10) and if the person that applied
for the tax-paid certificate under subsection (1) becomes aware at any time that the conditions described in
subsection (1) are not met in respect of the subject item, the person must without delay provide notice in
writing to the Minister that the conditions in subsection (1) are not met.
Revocation
(10) If a tax-paid certificate has been issued in respect of a subject item under
subsection (4) and the tax-paid certificate has not already been revoked under this subsection and the
Minister becomes aware that the conditions described in subsection (1) are not met in respect of the subject
item, the Minister must with all due dispatch
(a) revoke the tax-paid certificate; and
(b) issue a notice of revocation in respect of the tax-paid certificate
specifying
(i) the identification number of the subject item,
(ii) the effective date of the revocation, and
(iii) any information that is prescribed by regulation.
Revocation —
timing
(11) For the purposes of this Act, a tax-paid certificate issued under subsection (4)
that has been revoked under subsection (10) is deemed never to have been in effect on any day on or after
the effective day specified in the notice of revocation.
Application for
special import certificate
38 (1) A person that intends to import a subject item that is a subject aircraft or subject
vessel (other than a select subject vessel) may apply to the Minister for a special import certificate in
respect of the importation of the subject item if
(a) at the time at which the subject item is accounted for in accordance with
section 32 of the Customs Act, the person is an owner
of the subject item and
(i) the subject item is a qualifying subject aircraft or qualifying subject vessel of
the person, or
(ii) in the case of a subject aircraft, the subject item is accounted for in accordance
with section 32 of the Customs Act solely by the
person and
(A) if the person is the only owner of the subject aircraft, the person is a qualifying
aircraft user, or
(B) in any other case, each person that is an owner of the subject aircraft is a
qualifying aircraft user; or
(b) prescribed conditions are met.
Content of
application
(2) An application made by a person in respect of a subject item under subsection (1)
must
(a) include a declaration by the person specifying which of the conditions described in
paragraph (1)(a) or (b) are met in respect of the subject item;
(b) include the identification number of the subject item;
(c) include the person’s name;
(d) be made in prescribed form containing prescribed information; and
(e) be filed with the Minister in prescribed manner.
Issuance of special
import certificate
(3) Upon receipt of an application made by a person in respect of a subject item under
subsection (1), the Minister must, with all due dispatch, consider the application and, if the Minister is
satisfied that the conditions in respect of the subject item described in that subsection are met, issue and
send to the person a special import certificate in respect of the importation of the subject item by the
person specifying
(a) the name of the person;
(b) the identification number of the subject item;
(c) the date on which the special import certificate is issued; and
(d) any other information that is prescribed by regulation.
Special import
certificate — in effect
(4) For the purposes of this Act, a special import certificate that is issued under
subsection (3) in respect of the importation of a subject item is deemed to be in effect beginning on the
day on which the special import certificate is issued.
Notice of
non-issuance
(5) If, after considering an application made by a person in respect of a subject item
under subsection (1), the Minister does not issue to the person a special import certificate in respect of
the importation of the subject item by the person, the Minister must send a notice to the person specifying
that a special import certificate was not issued.
Notification of
change
(6) If a special import certificate in respect of the importation of a subject item was
issued to a person under subsection (3), if the special import certificate has not been revoked under
subsection (7) and if the person becomes aware that the conditions described in subsection (1) are not met
in respect of the subject item, the person must without delay provide notice in writing to the Minister that
the conditions in subsection (1) are not met.
Revocation
(7) If a special import certificate in respect of the importation of a subject item was
issued to a person under subsection (3), if the special import certificate has not already been revoked
under this subsection and if the Minister becomes aware that the conditions described in subsection (1) are
not met in respect of the subject item, the Minister must with all due dispatch
(a) revoke the special import certificate; and
(b) issue, and send to the person, a notice of revocation in respect of the special
import certificate specifying
(i) the identification number of the subject item,
(ii) the effective date of the revocation, and
(iii) any information that is prescribed by regulation.
Revocation — in
effect
(8) For the purposes of this Act, a special import certificate issued under subsection
(3) that has been revoked under subsection (7) is deemed to cease to have effect on the effective day
specified in the notice of revocation.
DIVISION 4
Rebates
subDIVISION A
Rebates to Net Tax
Rebate to net tax —
export
39 (1) If the sale of a subject item to a purchaser by a vendor is completed at a
particular time and the purchaser exports the subject item at a later time, the Minister must pay to the
vendor a rebate in respect of the reporting period of the vendor that includes the later time if
(a) the following conditions are met:
(i) the vendor is a registered vendor in respect of that type of subject item at the
particular time,
(ii) the purchaser is not, at any time during the period beginning at the particular time
and ending at the later time, a registered vendor in respect of that type of subject item,
(iii) tax under section 18 in respect of the
sale of the subject item becomes payable by the vendor at the particular time and the tax is taken into
account in the determination of the net tax for the reporting period of the vendor that includes the
particular time,
(iv) the subject item is not used in Canada at any time before the later time except to
the extent reasonably necessary or incidental to its manufacture, offering for sale, transportation or
exportation,
(v) the subject item is not registered with the Government of Canada or a province
before the later time except if the registration is done solely for a purpose incidental to its manufacture,
offering for sale, transportation or exportation,
(vi) the purchaser exports the subject item as soon after the sale is completed as is
reasonable having regard to the circumstances surrounding the exportation, the sale and, if applicable, the
normal business practice of the purchaser and vendor, and
(vii) the purchaser provides to the vendor, and the vendor retains, evidence satisfactory
to the Minister of the exportation of the subject item by the purchaser; or
(b) prescribed conditions are met.
Amount of
rebate
(2) The amount of a rebate under subsection (1) in respect of a sale of a subject item
is equal to the amount of the tax in respect of the sale referred to in subparagraph (1)(a)(iii).
Rebate to net tax —
regulations
40 The Minister must pay a rebate in respect of a subject item to a prescribed person
in the amount determined in prescribed manner if prescribed circumstances exist.
Application for rebate
to net tax
41 Despite any other provision of this Act, a rebate under this Subdivision in respect
of a particular reporting period of a person is not to be paid unless an application for the rebate
(a) is made in prescribed form containing prescribed information; and
(b) is filed with the Minister in prescribed manner
(i) on or before the day on or before which the return under section 55 is required to be filed for the last reporting period of the
person that ends within two years after the end of the particular reporting period, and
(ii) with the return in respect of the reporting period in which the amount of the rebate
is taken into account in determining the net tax for the reporting period.
SUBDIVISION B
Other Rebates
Rebate — foreign
representative
42 (1) The Minister must pay to a person a rebate in respect of a sale of a subject item
from a vendor to the person if
(a) tax under section 18 is payable by the
vendor in respect of the sale of the subject item and the tax is taken into account in the determination of
the net tax for the reporting period of the vendor that includes the time at which the sale is completed;
and
(b) the person is entitled to tax relief privileges under the Foreign Missions and International Organizations Act for the
tax payable under subsection 165(1) of the Excise Tax Act
in respect of the sale.
Amount of
rebate
(2) The amount of a rebate payable under subsection (1) in respect of a sale of a
subject item is equal to the amount of the tax in respect of the sale referred to in paragraph
(1)(a).
Application for
rebate
(3) Despite any other provision of this Act, a rebate under this section is not to be
paid unless an application for the rebate is
(a) made in prescribed form containing prescribed information; and
(b) filed with the Minister in prescribed manner within two years after the day on which
the sale is completed.
Rebate — payment in
error
43 (1) The Minister must pay a rebate to a person if the person paid an amount in excess of
the amount that was payable by the person under this Act whether the amount was paid by mistake or
otherwise.
Amount of
rebate
(2) The amount of a rebate payable under subsection (1) by the Minister is the amount of
the excess referred to in that subsection.
Restriction on
rebate
(3) A rebate under this section in respect of an amount is not to be paid to a person to
the extent that
(a) the amount was taken into account as an amount required to be paid by the person in
respect of a reporting period of the person and the Minister has assessed the person for that period under
section 92; or
(b) the amount was an amount assessed under section 92.
Application for
rebate
(4) Despite any other provision of this Act, a rebate under this section is not to be
paid unless an application for the rebate is
(a) made in prescribed form containing prescribed information; and
(b) filed with the Minister in prescribed manner within two years after the earlier of
the day that the amount was taken into account in determining the net tax for a reporting period of the
person and the day that the amount was paid to the Receiver General.
One application per
quarter
(5) Not more than one application for a rebate under this section may be made by a
person in a calendar quarter.
Rebate —
regulations
44 The Minister must pay a rebate in respect of a subject item to a prescribed person
in the amount determined in prescribed manner if prescribed circumstances exist.
Restriction on
rebate
45 A rebate under this Subdivision is not to be paid to a person at any time unless all
returns of which the Minister has knowledge and that are required to be filed at or before that time by the
person under this Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and Part 1 of the Greenhouse Gas Pollution Pricing Act have been filed with the
Minister.
SUBDIVISION C
General Rules for Rebates
Restriction on
rebate
46 A rebate of an amount is not to be paid to a person under this Division
(a) to the extent that it can reasonably be regarded that the person has obtained or is
entitled to obtain a rebate, refund or remission of the amount under any other Division of this Act or under
any other Act of Parliament; or
(b) if prescribed circumstances exist.
Single
application
47 Only one application may be made under this Division for a rebate with respect to
any matter.
Restriction —
bankruptcy
48 If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of
the estate or succession of a bankrupt, a rebate under this Division that the bankrupt was entitled to claim
before the appointment must not be paid after the appointment unless all returns required under this Act,
the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and Part 1 of the Greenhouse Gas Pollution Pricing Act to be filed for reporting
periods of the bankrupt ending before the appointment have been filed and all amounts required under this
Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and Part 1 of the Greenhouse Gas Pollution Pricing Act to be paid by the bankrupt
in respect of those reporting periods have been paid.
Statutory recovery
rights
49 Except as specifically provided under this Act, the Financial Administration Act or the Customs Act, no person has a right to recover any money paid to
Her Majesty in right of Canada as or on account of, or that has been taken into account by Her Majesty in
right of Canada as, an amount payable under this Act.
DIVISION 5
Registration, Reporting Periods, Returns and Requirement to Pay
Qualifying sale
50 (1) For the purposes of this section, a person makes a qualifying sale of a subject item
if
(a) the person sells the subject item to a purchaser;
(b) the subject item
(i) in the case of a subject vehicle, has never been registered with the Government of
Canada or a province other than a registration that is done only because of the sale, or
(ii) in the case of a subject aircraft or subject vessel, has never been registered with
the Government of Canada other than a registration that is done solely for a purpose incidental to its
manufacture, offering for sale or transportation; and
(c) the price threshold in respect of the subject item is less than the greatest
of
(i) the consideration for the sale,
(ii) the retail value of the subject item at the particular time at which the sale is
completed, and
(iii) if the subject item has a manufacturer’s suggested retail price, the amount that
would be the retail value of the subject item at the particular time if the fair market value of the subject
item at the particular time were equal to the manufacturer’s suggested retail price of the subject
item.
Qualifying
importation
(2) For the purposes of this section, a person makes a qualifying importation of a
subject item if
(a) the person imports the subject item;
(b) the subject item
(i) in the case of a subject vehicle, has never been registered with the Government of
Canada or a province other than a registration that is done only because of the importation, or
(ii) in the case of a subject aircraft or subject vessel, has never been registered with
the Government of Canada other than a registration that is done solely for a purpose incidental to its
manufacture, offering for sale or transportation; and
(c) the price threshold in respect of the subject item is exceeded by the greatest
of
(i) the taxable amount of the subject item determined under section 20 in respect of the importation,
(ii) the retail value of the subject item at the particular time at which the subject
item is accounted for in accordance with section 32 of the Customs Act in respect of the importation, and
(iii) if the subject item has a manufacturer’s suggested retail price, the amount that
would be the retail value of the subject item at the particular time if the fair market value of the subject
item at the particular time were equal to the manufacturer’s suggested retail price of the subject
item.
Registration
required
(3) For the purposes of this Act, a person is required to be registered as a vendor in
respect of a type of subject item if the person
(a) makes a qualifying sale, or a qualifying importation, of a subject item of that type
in the course of a business of offering for sale in Canada subject items of that type that
(i) in the case of subject vehicles, have never been registered with the Government of
Canada or a province, or
(ii) in the case of subject aircraft and subject vessels, have never been registered with
Government of Canada other than registrations that are done solely for a purpose incidental to the
manufacture, offering for sale or transportation of the subject items; or
(b) is a prescribed person.
Timing of
application
(4) A person that is required under subsection (3) to be registered as a vendor in
respect of a type of subject item must apply to the Minister for registration on or before the earlier
of
(a) the day on which the first qualifying sale of a subject item of that type made by
the person is completed;
(b) the day on which, for the first qualifying importation of a subject item of that
type made by the person, the subject item is accounted for in accordance with section 32 of the Customs Act; or
(c) if prescribed conditions are met, the prescribed day.
Registration
permitted
(5) For the purposes of this Act, a person that is not required under this section to be
registered as a vendor in respect of a type of subject item may apply to the Minister to be registered as a
vendor in respect of that type of subject item if the person is a prescribed person.
Registration not
required
(6) Despite subsection (3), a person is not required to be registered as a vendor in
respect of a type of subject item for the purposes of this Act if the person is a prescribed person.
Application for
registration
51 (1) An application for registration under this Division is to be made in prescribed form
containing prescribed information and is to be filed with the Minister in prescribed manner.
Notification of
registration
(2) If a person that meets the requirements for registration under this Division applies
for registration, the Minister may register the person and, upon doing so, the Minister must assign a
registration number to the person for the purposes of this Act and notify the person of the registration
number and of the effective date of the registration.
Notice of intent —
failure to apply
(3) If the Minister has reason to believe that a person is not registered as a vendor in
respect of a type of subject item for the purposes of this Act, is required to be so registered under this
Division and has failed to apply for registration under this Division as and when required, the Minister may
send a notice in writing (in this section referred to as a “notice of intent”) to the person that the
Minister proposes to so register the person under subsection (5).
Representations to
Minister
(4) Upon receipt of a notice of intent, a person must apply for the registration under
this Division proposed in the notice or establish to the satisfaction of the Minister that the person is not
required to be so registered.
Registration by
Minister
(5) If, after 60 days after the particular day on which a notice of intent was sent by
the Minister to a person, the person has not applied under this Division for the registration in respect of
a type of subject item proposed in the notice and the Minister is not satisfied that the person is not
required to be so registered, the Minister may register the person as a vendor in respect of that type of
subject item under this Division and, upon doing so, must assign a registration number to the person for the
purposes of this Act and notify the person of the registration number and of the effective date of the
registration.
Cancellation of
registration
52 (1) The Minister may, after giving a person that is registered under this Division
reasonable written notice, cancel a registration of the person as a vendor in respect of a type of subject
item under this Division if the Minister is satisfied that the registration is not required for the purposes
of this Act.
Request for
cancellation
(2) If a person files with the Minister in prescribed manner a request, in prescribed
form containing prescribed information, to have a registration of the person as a vendor in respect of a
type of subject item cancelled, the Minister must cancel the registration of the person if the Minister is
satisfied that the registration is not required for the purposes of this Act.
Cancellation in
prescribed circumstances
(3) The Minister must cancel a registration of a person as a vendor in respect of a type
of subject item under this Division in prescribed circumstances.
Notice of
cancellation
(4) If the Minister cancels a registration of a person under this Division, the Minister
must notify the person of the cancellation and the effective date of the cancellation.
Security —
registration
53 (1) For the purposes of this Act, the Minister may require a person that applies to be
registered, or that is required to be registered, under this Division to give and maintain security, in an
amount determined by the Minister and subject to any terms and conditions that the Minister may specify, for
the payment of any amount that is or may become payable by the person under this Act.
Security —
importation
(2) For the purposes of this Act, the Minister may require a person referred to in
subsection 20(1) to give and maintain security, in an amount
determined by the Minister and subject to any terms and conditions that the Minister may specify, for the
payment of any amount that is or may become payable by the person under this Act, if the provisions of the
Customs Act, the Customs Tariff or any other laws relating to customs under
which security may be required do not apply to the payment of that amount.
Failure to
comply
(3) If, at any time, a person referred to in subsection (1) or (2) fails to give or
maintain security in an amount satisfactory to the Minister, the Minister may retain as security, out of any
amount that may be or may become payable to the person under this Act, the Excise Tax Act, the Excise Act, 2001 or Part 1 of the Greenhouse Gas Pollution Pricing Act, an amount not exceeding
the amount determined by the formula
A – B
where
A is the amount of security
that would, at that time, be satisfactory to the Minister if it were given by the person in accordance with
subsection (1) or (2), as the case may be; and
B is the amount of security,
if any, given and maintained by the person in accordance with subsection (1) or (2), as the case may
be.
Amount deemed
paid
(4) The amount retained under subsection (3) is deemed to have been paid, at the time
referred to in that subsection, by the Minister to the person, and to have been given, immediately after
that time, by the person as security in accordance with subsection (1) or (2), as the case may be.
Reporting
periods
54 (1) For the purposes of this Act, a reporting period of a person is
(a) before 2023, the period that begins on September 1, 2022 and ends on December 31,
2022; and
(b) after 2022
(i) unless subparagraph (ii) applies, a calendar quarter, or
(ii) if prescribed conditions are met, a prescribed period.
Reporting period —
registration or cancellation
(2) Despite subsection (1), if at a particular time the Minister registers a person, or
cancels a registration of a person, under this Division
(a) the particular reporting period of the person that includes the particular time ends
on the day that includes the particular time; and
(b) a reporting period of the person begins on the day after the day that includes the
particular time and ends on the day that is the last day of the calendar quarter that includes the
particular time.
Filing of
return
55 (1) Every person that is registered or required to be registered under this Division
must file a return with the Minister for each reporting period of the person. The return is to be filed on
or before the last day of the first month after the end of the reporting period.
Filing of return —
non-registered persons
(2) Every person that is not registered and not required to be registered under this
Division must file a return with the Minister for each reporting period of the person in which tax (other
than tax under section 20) becomes payable by the person. The
return is to be filed on or before the last day of the first month after the end of the reporting
period.
Filing of return —
regulations
(3) Despite subsections (1) and (2), if prescribed circumstances exist, a return for a
reporting period that is a prescribed reporting period is to be filed with the Minister in accordance with
prescribed rules.
Filing not required —
regulations
(4) Despite subsections (1) and (2), if prescribed circumstances exist, a return for a
reporting period that is a prescribed reporting period is not required to be filed.
Form and
content
56 Every return that is required to be filed under section 55 is to be made in prescribed form containing prescribed
information and is to be filed in prescribed manner.
Net tax —
obligation
57 (1) Every person that is required to file a return under section 55 must, in the return, determine the net tax for the reporting
period of the person for which the return is required to be filed.
Determination of net
tax
(2) Subject to this Act, the net tax for a particular reporting period of a person is,
for the purposes of this Act, the positive or negative amount determined by the formula
(A − B) + C
where
A is the total of all amounts,
each of which is an amount of tax (other than tax under section 20) that becomes payable by the person in the particular reporting
period;
B is the total of all amounts,
each of which is an amount of a rebate under Subdivision A of Division 4 payable by the Minister in respect
of a reporting period and that is claimed by the person in the return under section 55 for the particular reporting period; and
C is a prescribed
amount.
Requirement to
pay
(3) If the net tax for a reporting period of a person is a positive amount, the person
must pay that amount to the Receiver General on or before the day on or before which the return for the
reporting period is required to be filed.
Rebate of net
tax
(4) If the net tax for a reporting period of a person is a negative amount, the person
may claim in the return for the reporting period the amount of that net tax as a rebate for the reporting
period payable to the person by the Minister. The Minister must pay the rebate to the person with all due
dispatch after the return is filed.
Restriction — rebate
of net tax
(5) The Minister is not required to pay a rebate under subsection (4) to a person unless
the Minister is satisfied that all information, that is contact information or that is information relating
to the identification and business activities of the person, to be given by the person on any application
for registration made by the person under this Division has been provided and is accurate.
Restriction — rebate
of net tax
(6) A rebate under subsection (4) is not to be paid to a person at any time unless all
returns of which the Minister has knowledge and that are required to be filed at or before that time by the
person under this Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and Part 1 of the Greenhouse Gas Pollution Pricing Act have been filed with the
Minister.
Interest on rebate of
net tax
(7) If a rebate for a reporting period of a person is paid to the person under
subsection (4), interest at the specified rate is to be paid to the person on the rebate for the period that
begins on the day that is 30 days after the later of the day the return in which the rebate is claimed is
filed with the Minister and the day following the last day of the reporting period and that ends on the day
the rebate is paid.
Overpayment of rebate
or interest
58 If an amount is paid to, or applied to a liability of, a person as a rebate, or as
interest, under this Act and the person is not entitled to the rebate or interest, as the case may be, or
the amount paid or applied exceeds the rebate or interest, as the case may be, to which the person is
entitled, the person must pay to the Receiver General an amount equal to the rebate, interest or excess, as
the case may be, on the day the rebate, interest or excess, as the case may be, is paid to, or applied to a
liability of, the person.
Information
return
59 (1) A person (other than a prescribed person) must file with the Minister an information
return for a reporting period of the person if
(a) the person is required under section 55
to file a return for the reporting period;
(b) the person sells a subject item to a purchaser, the sale is completed during the
reporting period, the taxable amount of the subject item determined under section 18 in respect of the sale exceeds the price threshold in respect of
the subject item and
(i) an exemption certificate applies in respect of the sale in accordance with section
36,
(ii) tax under section 18 in respect of the
sale of the subject item is payable by the purchaser, or
(iii) tax under section 18 is not payable by
the person because of the application of subsection 19(3);
(c) the person imports a subject item, the subject item is accounted for in accordance
with section 32 of the Customs Act at any time during
the reporting period, the taxable amount of the subject item determined under section 20 in respect of the importation exceeds the price threshold in
respect of the subject item and tax is not payable by the person under that section because of the
application of subsection 21(3); or
(d) prescribed circumstances exist.
Information return —
form and content
(2) An information return in respect of a reporting period of a person that is required
to be filed under this section must
(a) be made in prescribed form containing prescribed information;
(b) be filed with the Minister in prescribed manner on or before the last day of the
first month after the end of the reporting period of the person;
(c) specify the identification number of each subject item that is sold by the person
and in respect of which the following conditions are met:
(i) the sale of the subject item is completed during the reporting period,
(ii) the taxable amount of the subject item determined under section 18 in respect of the sale exceeds the price threshold in respect of
the subject item, and
(iii) it is the case that
(A) an exemption certificate applies in respect of the sale in accordance with section
36,
(B) tax under section 18 in respect of the
sale of the subject item is payable by the purchaser, or
(C) tax under section 18 is not payable by
the person because of the application of subsection 19(3);
and
(d) specify the identification number of each subject item that is imported by the
person and in respect of which the following conditions are met:
(i) the subject item is accounted for in accordance with section 32 of the Customs Act at any time during the reporting period,
(ii) the taxable amount of the subject item determined under section 20 in respect of the importation exceeds the price threshold in
respect of the subject item, and
(iii) tax is not payable by the person under section 20 because of the application of subsection 21(3).
Information return —
regulations
(3) If prescribed circumstances exist, an information return for a reporting period must
be filed in accordance with prescribed rules.
PART 2
Administration
DIVISION 1
Miscellaneous
SUBDIVISION A
Trustees, Receivers and Personal Representatives
Definitions
60 (1) The following definitions apply in this section.
bankrupt has the same meaning as in section 2 of the Bankruptcy and Insolvency Act. (failli)
business includes a part of a business. (entreprise)
receiver means a person that
(a) under the authority of a debenture, bond or other debt security, of a court order or
of an Act of Parliament or of the legislature of a province, is empowered to operate or manage a business or
a property of another person;
(b) is appointed by a trustee under a trust deed in respect of a debt security to
exercise the authority of the trustee to manage or operate a business or a property of the debtor under the
debt security;
(c) is appointed by a bank or an authorized foreign bank, as those terms are defined in section 2
of the Bank Act, to act as an agent or mandatary of the
bank in the exercise of the authority of the bank under subsection 426(3) of that Act in respect of property
of another person;
(d) is appointed as a liquidator to liquidate the assets of a corporation or to wind up
the affairs of a corporation; or
(e) is appointed as a committee, guardian, curator, tutor or mandatary in case of
incapacity with the authority to manage and care for the affairs and assets of an individual who is
incapable of managing those affairs and assets.
It includes a person that is appointed to
exercise the authority of a creditor under a debenture, bond or other debt security to operate or manage a
business or a property of another person, but, if a person is appointed to exercise the authority of a
creditor under a debenture, bond or other debt security to operate or manage a business or a property of
another person, it does not include that creditor. (séquestre)
relevant assets of a receiver means
(a) if the receiver’s authority relates to all the properties, businesses, affairs and
assets of a person, all those properties, businesses, affairs and assets; and
(b) if the receiver’s authority relates to only part of the properties, businesses,
affairs or assets of a person, that part of the properties, businesses, affairs or assets. (actif pertinent)
representative means a person, other than a trustee in bankruptcy or a receiver, that is
administering, winding up, controlling or otherwise dealing with any property, business, estate or
succession of another person. (représentant)
Trustee in bankruptcy
— obligations
(2) For the purposes of this Act, if on a particular day a person becomes a
bankrupt,
(a) the trustee in bankruptcy, and not the person, is liable for the payment of any
amount (other than an amount that relates solely to activities in which the person begins to engage on or
after the particular day and to which the bankruptcy does not relate) that is required to be paid by the
person under this Act, during the period beginning on the day immediately after the day on which the trustee
became the trustee in bankruptcy of the person and ending on the day on which the discharge of the trustee
is granted under the Bankruptcy and Insolvency Act, except
that
(i) the trustee is liable for the payment of any amount that is required to be paid by
the person under this Act after the particular day in respect of reporting periods that ended on or before
the particular day but only to the extent of the property of the person in possession of the trustee
available to satisfy the liability,
(ii) the trustee is not liable for the payment of any amount for which a receiver is
liable under subsection (3), and
(iii) the payment by the person of an amount in respect of the liability discharges the
liability of the trustee to the extent of that amount;
(b) if, on the particular day, the person is registered under Division 5 of Part 1, the
registration continues in relation to the activities of the person to which the bankruptcy relates as though
the trustee in bankruptcy were registered under that Division in the same capacity as the person in respect
of those activities and ceases to apply to the activities of the person in which the person begins to engage
on or after the particular day and to which the bankruptcy does not relate;
(c) the reporting periods of the person begin and end on the day on which they would
have begun and ended if the bankruptcy had not occurred, except that
(i) the reporting period of the person during which the person becomes a bankrupt ends
on the particular day and a new reporting period of the person in relation to the activities of the person
to which the bankruptcy relates begins on the day immediately after the particular day, and
(ii) the reporting period of the person, in relation to the activities of the person to
which the bankruptcy relates, during which the trustee in bankruptcy is discharged under the Bankruptcy and Insolvency Act ends on the day on which the
discharge is granted;
(d) subject to paragraph (f), the trustee in bankruptcy must file with the Minister in
the prescribed form and manner all returns in respect of the activities of the person to which the
bankruptcy relates for the reporting periods of the person ending in the period beginning on the day
immediately after the particular day and ending on the day on which the discharge of the trustee is granted
under the Bankruptcy and Insolvency Act and that are
required under this Act to be filed by the person, as if those activities were the only activities of the
person;
(e) subject to paragraph (f), if the person has not on or before the particular day
filed a return required under this Act to be filed by the person for a reporting period of the person ending
on or before the particular day, the trustee in bankruptcy must, unless the Minister waives in writing the
requirement for the trustee to file the return, file with the Minister in the prescribed form and manner a
return for that reporting period of the person; and
(f) if there is a receiver with authority in respect of any business, property, affairs
or assets of the person, the trustee in bankruptcy is not required to include in any return any information
that the receiver is required under subsection (3) to include in a return.
Receiver’s
obligations
(3) For the purposes of this Act, if on a particular day a receiver is vested with
authority to manage, operate, liquidate or wind up any business or property, or to manage and care for the
affairs and assets, of a person,
(a) if the relevant assets of the receiver are a part and not all of the person’s
businesses, properties, affairs or assets, the relevant assets of the receiver are deemed to be, throughout
the period during which the receiver is acting as receiver of the person, separate from the remainder of the
businesses, properties, affairs or assets of the person as though the relevant assets were businesses,
properties, affairs or assets, as the case may be, of a separate person;
(b) the person and the receiver are jointly and severally, or solidarily, liable for the
payment of any amount that is required to be paid by the person under this Act before or during the period
during which the receiver is acting as receiver of the person to the extent that the amount can reasonably
be considered to relate to the relevant assets of the receiver or to the businesses, properties, affairs or
assets of the person that would have been the relevant assets of the receiver if the receiver had been
acting as receiver of the person at the time the amount became payable except that
(i) the receiver is liable for the payment of any amount that is required to be paid by
the person under this Act before that period only to the extent of the property of the person in possession
or under the control and management of the receiver after
(A) satisfying the claims of creditors whose claims ranked, on the particular day, in
priority to the claim of the Crown in respect of the amount, and
(B) paying any amounts that the receiver is required to pay to a trustee in bankruptcy
of the person,
(ii) the person is not liable for the payment of any amount payable by the receiver,
and
(iii) the payment by the person or the receiver of an amount in respect of the liability
discharges the joint and several, or solidary, liability to the extent of that amount;
(c) the reporting periods of the person begin and end on the day on which they would
have begun and ended if the vesting had not occurred, except that
(i) the reporting period of the person, in relation to the relevant assets of the
receiver, during which the receiver begins to act as receiver of the person, ends on the particular day and
a new reporting period of the person in relation to the relevant assets begins on the day immediately after
the particular day, and
(ii) the reporting period of the person, in relation to the relevant assets, during which
the receiver ceases to act as receiver of the person, ends on the day on which the receiver ceases to act as
receiver of the person;
(d) the receiver must file with the Minister in the prescribed form and manner all
returns in respect of the relevant assets of the receiver for reporting periods ending in the period during
which the receiver is acting as receiver and that are required under this Act to be made by the person, as
if the relevant assets were the only businesses, properties, affairs and assets of the person; and
(e) if the person has not on or before the particular day filed a return required under
this Act to be filed by the person for a reporting period of the person ending on or before the particular
day, the receiver must, unless the Minister waives in writing the requirement for the receiver to file the
return, file with the Minister in the prescribed form and manner a return for that reporting period that
relates to the businesses, properties, affairs or assets of the person that would have been the relevant
assets of the receiver if the receiver had been acting as receiver of the person during that reporting
period.
Certificates for
receivers and representatives
(4) Every receiver and representative that controls property of another person that is
required to pay any amount under this Act must, before distributing the property to any person, obtain a
certificate from the Minister certifying that the following amounts have been paid or that security for the
payment of them has, in accordance with this Act, been accepted by the Minister:
(a) all amounts that are payable by the other person under this Act in respect of the
reporting period during which the distribution is made, or any previous reporting period; and
(b) all amounts that are, or can reasonably be expected to become, payable under this
Act by the representative or receiver in that capacity in respect of the reporting period during which the
distribution is made, or any previous reporting period.
Liability for failure
to obtain certificate
(5) Any receiver or representative that distributes property without obtaining a
certificate in respect of the amounts referred to in subsection (4) is personally liable for the payment of
those amounts to the extent of the value of the property so distributed.
Estate or succession
of a deceased individual
61 (1) Subject to subsections 60(4) and (5)
and sections 62 and 63, if an individual dies, this Act (other than section 75) applies as though the estate or succession of the individual
were the individual and the individual had not died, except that
(a) the reporting period of the individual during which the individual died ends on the
day the individual died; and
(b) a reporting period of the estate or succession begins on the day after the
individual died and ends on the day the reporting period of the individual would have ended if the
individual had not died.
Extension
(2) Despite any other provision of this Act, if the return for the reporting period
referred to in paragraph (1)(a) would, in the absence of this subsection, have been required to be filed
earlier than the particular day that is the last day of the third month after the month in which the
individual died, that return is required to be filed not later than the particular day and any amount
payable under this Act in respect of that reporting period is payable to the Receiver General on the
particular day.
Definitions
62 (1) The following definitions apply in this section and in section 63.
trust includes the estate or succession of a deceased individual. (fiducie)
trustee includes the personal representative of a deceased individual, but does not include
a receiver as defined in subsection 60(1). (fiduciaire)
Trustee’s
liability
(2) Subject to subsection (3), each trustee of a trust is liable to satisfy every
obligation imposed on the trust under this Act, whether the obligation was imposed during or before the
period during which the trustee acts as trustee of the trust, but the satisfaction of an obligation of a
trust by one of the trustees of the trust discharges the liability of all other trustees of the trust to
satisfy that obligation.
Joint and several or
solidary liability
(3) A trustee of a trust is jointly and severally, or solidarily, liable with the trust
and each of the other trustees, if any, for the payment of all amounts that are required to be paid by the
trust under this Act before or during the period during which the trustee acts as trustee of the trust
except that
(a) the trustee is liable for the payment of amounts that are required to be paid by the
trust under this Act before the period only to the extent of the property of the trust under the control of
the trustee; and
(b) the payment by the trust or the trustee of an amount in respect of the liability
discharges their liability to the extent of that amount.
Waiver
(4) The Minister may, in writing, waive the requirement for the personal representative
of a deceased individual to file a return for a reporting period of the individual ending on or before the
day the individual died.
Activities of a
trustee
(5) For the purposes of this Act, if a person acts as trustee of a trust, anything done
by the person in the person’s capacity as trustee of the trust is deemed to have been done by the trust and
not by the person.
Distribution by
trust
63 For the purposes of this Act, if a trustee of a trust distributes, at a particular
time, property of the trust to one or more persons, the distribution of the property is deemed to be a
transfer of ownership of the property by the trust to the persons at the particular time and the property is
deemed to be delivered to the persons the location at which the property is located at the particular
time.
SUBDIVISION B
Amalgamation and Winding-up
Amalgamations
64 (1) If two or more corporations (each of which is referred to in this section as a
“predecessor”) are merged or amalgamated to form one corporation (in this section referred to as the “new
corporation”), otherwise than as the result of the acquisition of property of one corporation by another
corporation pursuant to the purchase of the property by the other corporation or as the result of the
distribution of the property to the other corporation on the winding-up of the corporation, except for
prescribed purposes, the new corporation is, for the purposes of this Act, deemed to be the same corporation
as, and a continuation of, each predecessor.
Reporting
period
(2) If subsection (1) applies in respect of predecessors that are merged or amalgamated
at a particular time
(a) the reporting period of each predecessor that includes the particular time ends on
the day that includes the particular time; and
(b) a reporting period of the new corporation begins on the day following the day that
includes the particular time and ends on the last day of the reporting period of the new corporation, if
that reporting period were determined in the absence of this subsection, that includes the particular
time.
Winding-up
65 (1) If at a particular time a particular corporation is wound up and not less than 90%
of the issued shares of each class of the capital stock of the particular corporation were, immediately
before the particular time, owned by another corporation, except for prescribed purposes, the other
corporation is, for the purposes of this Act, deemed to be the same corporation as, and a continuation of,
the particular corporation.
Reporting
period
(2) If the other corporation referred to in subsection (1) is deemed to be the same
corporation as, and a continuation of, the particular corporation referred to in that subsection
(a) the reporting period of the particular corporation that includes the particular time
referred to in that subsection ends on the day that includes the particular time; and
(b) a reporting period of the other corporation begins on the day following the day that
includes the particular time and ends on the last day of the reporting period of the other corporation, if
that reporting period were determined in the absence of this subsection, that includes the particular
time.
SUBDIVISION C
Partnerships and Joint Ventures
Partnerships
66 (1) For the purposes of this Act, anything done by a person as a member of a partnership
is deemed to have been done by the partnership in the course of the partnership’s activities and not to have
been done by the person.
Joint and several or
solidary liability
(2) A partnership and each member or former member (each of which is referred to in this
subsection as the “member”) of the partnership (other than a member that is a limited partner and is not a
general partner) are jointly and severally, or solidarily, liable for
(a) the payment of all amounts that are required to be paid by the partnership under
this Act before or during the period during which the member is a member of the partnership or, if the
member was a member of the partnership at the time the partnership was dissolved, after the dissolution of
the partnership, except that
(i) the member is liable for the payment of amounts that become payable before the
period only to the extent of the property that is regarded as property of the partnership under the relevant
laws of general application in force in a province relating to partnerships, and
(ii) the payment by the partnership or by any member of the partnership of an amount in
respect of the liability discharges their liability to the extent of that amount; and
(b) all other obligations under this Act that arose before or during that period for
which the partnership is liable or, if the member was a member of the partnership at the time the
partnership was dissolved, the obligations that arose upon or as a consequence of the dissolution.
Joint ventures
67 (1) For the purposes of this Act, anything done by a participant in a joint venture, or
by an operator of the joint venture, in the course of the activities for which the joint venture agreement
was entered into are deemed to have been done by the joint venture in the course of the joint venture’s
activities and not to have been done by the participant or operator.
Joint and several or
solidary liability
(2) A joint venture and each participant in, or operator of, the joint venture (each of
which is referred to in this subsection as the “member”) are jointly and severally, or solidarily, liable
for
(a) the payment of all amounts that become payable by the joint venture under this Act
before or during the period during which the member is a participant in, or operator of, the joint venture,
except that the payment by the joint venture or by any member of an amount in respect of the liability
discharges their liability to the extent of that amount; and
(b) all other obligations under this Act that arose before or during that period for
which the joint venture is liable.
SUBDIVISION D
Anti-avoidance
Definitions
68 (1) The following definitions apply in this section.
tax benefit means a reduction, an avoidance or a deferral of an amount of tax or other amount
payable by a person under this Act or an increase in a rebate or other amount payable to a person under this
Act. (avantage fiscal)
tax-related
consequences to a person means the amount of tax, net tax, rebate or
other amount payable by, or payable to, the person under this Act, or any other amount that is relevant for
the purposes of computing that amount. (attribut
fiscal)
transaction includes an arrangement or event. (opération)
General anti-avoidance
provision
(2) If a transaction is an avoidance transaction, the tax-related consequences to a
person must be determined as is reasonable in the circumstances in order to deny a tax benefit that, in the
absence of this section, would result directly or indirectly from that transaction or from a series of
transactions that includes that transaction.
Avoidance
transaction
(3) An avoidance transaction means any transaction
(a) that, in the absence of this section, would result directly or indirectly in a tax
benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily
for bona fide purposes other than to obtain the tax benefit;
or
(b) that is part of a series of transactions, which series, in the absence of this
section, would result directly or indirectly in a benefit, unless the transaction may reasonably be
considered to have been undertaken or arranged primarily for bona
fide purposes other than to obtain the tax benefit.
Provision not
applicable
(4) For greater certainty, subsection (2) does not apply in respect of a transaction if
it may reasonably be considered that the transaction would not result directly or indirectly in a misuse of
the provisions of this Act or in an abuse having regard to the provisions of this Act (other than this
section) read as a whole.
Determination of
tax-related consequences
(5) Without restricting the generality of subsection (2), in determining the tax-related
consequences to a person, as is reasonable in the circumstances, in order to deny a tax benefit that would,
in the absence of this section, result directly or indirectly from an avoidance transaction
(a) any rebate or any deduction in net tax may be allowed or disallowed, in whole or in
part;
(b) any rebate or deduction referred to in paragraph (a) may, in whole or in part, be
allocated to any person;
(c) the nature of any payment or other amount may be recharacterized; and
(d) the effects that would otherwise result from the application of other provisions of
this Act may be ignored.
Exception
(6) Despite any other provision of this Act, the tax-related consequences to any person
following the application of this section must only be determined through an assessment, reassessment or
additional assessment involving the application of this section.
Definitions
69 (1) The following definitions apply in this section.
parameter change means a change in any of the following:
(a) a formula, or an element of a formula, in a provision of this Act;
(b) a price threshold in respect of a subject item;
(c) a manner for determining the taxable amount of a subject item or the amount of tax
payable in respect of a subject item;
(d) an activity described in subsection 11(3) or (4); or
(e) words or expressions defined in a provision of this Act. (modification d’un paramètre)
tax benefit has the meaning assigned by subsection 68(1). (avantage
fiscal)
transaction has the meaning assigned by subsection 68(1). (opération)
Parameter change —
transactions
(2) If
(a) a transaction, or a series of transactions, involving property is made between two
or more persons, all of whom are not dealing with each other at arm’s length at the time any of those
transactions are made,
(b) the transaction, any of the transactions in the series of transactions or the series
of transactions would in the absence of this section result directly or indirectly in a tax benefit to one
or more of the persons involved in the transaction or series of transactions, and
(c) it may not reasonably be considered that the transaction, or the series of
transactions, has been undertaken or arranged primarily for bona
fide purposes other than to obtain a tax benefit, arising from a parameter change, for one or more
of the persons involved in the transaction or series of transactions,
the amount of tax, net tax, rebate or other
amount payable by, or payable to, any of those persons under this Act, or any other amount that is relevant
for the purposes of computing that amount must be determined as is reasonable in the circumstances in order
to deny the tax benefit to any of those persons.
Denying tax benefit on
transactions
(3) Despite any other provision of this Act, a tax benefit must only be denied under
subsection (2) through an assessment, reassessment or additional assessment.
DIVISION 2
Administration and Enforcement
SUBDIVISION A
Payments
Set-off of
rebate
70 If, at any time, a person files a particular return under section 55 in which the person reports an amount that is required to be
paid by the person under this Act and the person claims a rebate under Subdivision B of Division 4 of Part 1
or subsection 57(4) payable to the person under this Act at
that time, in the particular return or in another return, or in a separate application filed under this Act
with the particular return, the person is deemed to have paid at that time, and the Minister is deemed to
have rebated at that time, an amount equal to the lesser of the amount required to be paid and the amount of
the rebate.
Meaning of
electronic payment
71 (1) In this section, electronic payment
means any payment to the Receiver General that is made through electronic services offered by a person
described in any of paragraphs (2)(a) to (d) or by any electronic means specified by the Minister.
Electronic
payment
(2) Every person that is required under this Act to pay an amount to the Receiver
General must, if the amount is $10,000 or more, make the payment by way of electronic payment, unless the
person cannot reasonably pay the amount in that manner, to the account of the Receiver General at or
through
(a) a bank;
(b) a credit union;
(c) a corporation authorized under the laws of Canada or a province to carry on the
business of offering its services as a trustee to the public; or
(d) a corporation that is authorized under the laws of Canada or a province to accept
deposits from the public and that carries on the business of lending money on the security of real property
or immovables or investing in indebtedness on the security of mortgages on real property or hypothecs on
immovables.
Small amounts
owing
72 (1) If, at any time, the total of all unpaid amounts owing by a person to the Receiver
General under this Act does not exceed $2.00, the amount owing by the person is deemed to be nil.
Small amounts
payable
(2) If, at any time, the total of all amounts payable by the Minister to a person under
this Act does not exceed $2.00, the Minister may apply those amounts against any amount owing, at that time,
by the person to Her Majesty in right of Canada. However, if the person, at that time, does not owe any
amount to Her Majesty in right of Canada, those amounts payable are deemed to be nil.
Authority for separate
returns
73 (1) A person that engages in one or more activities in separate branches or divisions
may file an application, in the prescribed form and manner, with the Minister for the authority to file
separate returns and applications for rebates under this Act in respect of a branch or division specified in
the application.
Authorization by
Minister
(2) On receipt of the application, the Minister may, in writing, authorize the person to
file separate returns and applications for rebates in relation to the specified branch or division, subject
to any conditions that the Minister may at any time impose, if the Minister is satisfied that
(a) the branch or division can be separately identified by reference to its location or
the nature of the activities engaged in by it; and
(b) separate records, books of account and accounting systems are maintained in respect
of the branch or division.
Revocation of
authorization
(3) The Minister may revoke an authorization if
(a) the person, in writing, requests the Minister to revoke the authorization;
(b) the person fails to comply with any condition imposed in respect of the
authorization or any provision of this Act;
(c) the Minister is no longer satisfied that the requirements of subsection (2) in
respect of the person are met; or
(d) the Minister considers that the authorization is no longer required.
Notice of
revocation
(4) If the Minister revokes an authorization, the Minister must send a notice in writing
of the revocation to the person and must specify in the notice the effective date of the revocation.
Definition of
electronic filing
74 (1) For the purposes of this section, electronic filing means using electronic media in a manner
specified in writing by the Minister.
Electronic filing of
return
(2) A person that is required to file with the Minister a return under this Act, and
that meets the criteria specified in writing by the Minister for the purposes of this section, may file the
return by way of electronic filing.
Mandatory filing of
return by electronic transmission
(3) In prescribed circumstances, a person must file a return for a reporting period of
the person by way of electronic filing in the manner specified by the Minister.
Deemed filing
(4) For the purposes of this Act, if a person files a return by way of electronic
filing, the return is deemed to be a return made in the prescribed form filed with the Minister on the day
on which the Minister acknowledges acceptance of it.
Execution of returns,
etc.
75 A return (other than a return filed by way of electronic filing under section 74), certificate or other document made under this Act (other than
an exemption certificate referred to in section 36) by a person
that is not an individual must be signed on behalf of the person by an individual duly authorized to do so
by the person or the governing body of the person and the following people are deemed to be so duly
authorized:
(a) if the person is a corporation or an association or organization that has duly
elected or appointed officers, the president, vice-president, secretary and treasurer, or other equivalent
officers, of the person; and
(b) if the person is the estate or succession of a deceased individual, the personal
representative of the estate or succession.
Extension of
time
76 (1) The Minister may at any time extend, in writing, the time for filing a return or
providing information under this Act.
Effect of
extension
(2) If the Minister extends the time within which a person must file a return or provide
information under subsection (1), the following rules apply:
(a) the return must be filed, or the information must be provided, within the time so
extended;
(b) any amount payable that the person is required to report in the return must be paid
within the time so extended;
(c) any interest payable under section 82
on the amount referred to in paragraph (b) must be calculated as though the amount were required to be paid
on the day on which the extended time expires; and
(d) any penalty payable under section 107
in respect of the return must be calculated as though the return were required to be filed on the day on
which the extended time expires.
Demand for
return
77 The Minister may, on demand sent by the Minister, require a person to file, within
any reasonable time stipulated in the demand, a return under this Act for any period designated in the
demand.
SUBDIVISION B
Administration and Officers
Minister’s duty
78 The Minister must administer and enforce this Act and the Commissioner may exercise
the powers and perform the duties of the Minister under this Act.
Staff
79 (1) The persons that are necessary to administer and enforce this Act are to be
appointed, employed or engaged in the manner authorized by law.
Delegation of
powers
(2) The Minister may authorize any person employed or engaged by the Canada Revenue
Agency or who occupies a position of responsibility in the Canada Revenue Agency to exercise powers or
perform duties of the Minister, including any judicial or quasi-judicial power or duty of the Minister,
under this Act.
Administration of
oaths
80 Any person, if designated by the Minister for the purpose, may administer oaths and
take and receive affidavits, declarations and affirmations for the purposes of or incidental to the
administration or enforcement of this Act, and every person so designated has for those purposes all the
powers of a commissioner for administering oaths or taking affidavits.
Inquiry
81 (1) The Minister may, for any purpose related to the administration or enforcement of
this Act, authorize any person, whether or not the person is an officer of the Canada Revenue Agency, to
make any inquiry that the Minister may deem necessary with reference to anything relating to the
administration or enforcement of this Act.
Appointment of hearing
officer
(2) If the Minister, under subsection (1), authorizes a person to make an inquiry, the
Minister must forthwith apply to the Tax Court of Canada for an order appointing a hearing officer before
whom the inquiry will be held.
Powers of hearing
officer
(3) For the purposes of an inquiry authorized under subsection (1), a hearing officer
appointed under subsection (2) in relation to the inquiry has all the powers conferred on a commissioner by
sections 4 and 5 of the Inquiries Act and that may be
conferred on a commissioner under section 11 of that Act.
When powers to be
exercised
(4) A hearing officer appointed under subsection (2) in relation to an inquiry must
exercise the powers conferred on a commissioner by section 4 of the Inquiries Act in relation to any persons that the person
authorized to make the inquiry considers appropriate for the conduct of the inquiry, but the hearing officer
is not to exercise the power to punish any person unless, on application by the hearing officer, a judge,
including a judge of a county court, certifies that the power may be exercised in the matter disclosed in
the application and the applicant has given to the person in respect of whom the power is proposed to be
exercised 24 hours notice of the hearing of the application, or any shorter notice that the judge considers
reasonable.
Rights of
witnesses
(5) Any person who gives evidence in an inquiry authorized under subsection (1) is
entitled to be represented by counsel and, on request made by the person to the Minister, to receive a
transcript of that evidence.
Rights of person
investigated
(6) Any person whose affairs are investigated in the course of an inquiry authorized
under subsection (1) is entitled to be present and to be represented by counsel throughout the inquiry
unless the hearing officer appointed under subsection (2), on application by the Minister or a person giving
evidence, orders otherwise in relation to the whole or any part of the inquiry, on the ground that the
presence of the person and the person’s counsel, or either of them, would be prejudicial to the effective
conduct of the inquiry.
SUBDIVISION C
Interest
Specified rate of
interest
82 (1) For the purposes of every provision of this Act that requires interest to be
computed at a specified rate
(a) if the interest is to be paid or applied on an amount payable by the Minister to a
person, the specified rate in effect during a calendar quarter is
(i) the prescribed rate, or
(ii) if no rate is prescribed under subparagraph (i), the interest rate determined for
the calendar quarter under subsection 2(2) of the Interest Rates
(Excise Act, 2001) Regulations; or
(b) in any other case, the specified rate in effect during a calendar quarter is
(i) the prescribed rate, or
(ii) if no rate is prescribed under subparagraph (i), the interest rate determined for
the calendar quarter under subsection 2(1) of the Interest Rates
(Excise Act, 2001) Regulations.
Compound
interest
(2) If a person fails to pay an amount to the Receiver General as and when required
under this Act, the person must pay to the Receiver General interest on the amount. The interest must be
compounded daily at the specified rate and computed for the period that begins on the first day after the
day on or before which the amount was required to be paid and that ends on the day the amount is
paid.
Payment of interest
that is compounded
(3) For the purposes of subsection (2), interest that is compounded on a particular day
on an unpaid amount of a person is deemed to be required to be paid by the person to the Receiver General at
the end of the particular day, and, if the person has not paid the interest so computed by the end of the
day after the particular day, the interest must be added to the unpaid amount at the end of the particular
day.
Payment before
specified date
(4) If the Minister has served a demand that a person pay on or before a specified date
all amounts payable by the person under this Act on the date of the demand, and the person pays the amount
demanded on or before the specified date, the Minister must waive any interest that would otherwise apply in
respect of the amount demanded for the period beginning on the first day following the date of the demand
and ending on the day of payment.
Compound interest on
amounts owed by Her Majesty
83 Interest must be compounded daily at the specified rate on amounts owed under this
Act by Her Majesty in right of Canada to a person and computed for the period beginning on the first day
after the day on which the amount is required to be paid by Her Majesty in right of Canada and ending on the
day on which the amount is paid or is applied against an amount owed by the person to Her Majesty in right
of Canada.
Interest if Act
amended
84 For greater certainty, if a provision of an Act amends this Act and provides that
the amendment comes into force on, or applies as of, a particular day that is before the day on which the
provision is assented to, the provisions of this Act that relate to the calculation and payment of interest
apply in respect of the amendment as though the provision had been assented to on the particular day.
Waiving or reducing
interest
85 (1) The Minister may, on or before the day that is 10 calendar years after the end of a
reporting period of a person, or on application by the person on or before that day, waive, cancel or reduce
any interest payable by the person under this Act on an amount that is required to be paid by the person
under this Act in respect of the reporting period.
Interest where amounts
waived or reduced
(2) If a person has paid an amount of interest and the Minister has waived or reduced
under subsection (1) any portion of the amount, the Minister must pay interest at the specified rate on an
amount equal to the portion of the amount that was waived or reduced beginning on the day that is 30 days
after the day on which the Minister received a request in a manner satisfactory to the Minister to apply
that subsection and ending on the day on which the portion is rebated to the person.
Cancellation of
penalties and interest
86 If at any time a person pays all tax and amounts under section 58 payable by the person under this Act for a reporting period of
the person and, immediately before that time, the total, for the reporting period, of all interest payable
by the person under section 82 and penalties payable under
section 107 is not more than $25, the Minister may cancel the
total of the penalties and interest.
Dishonoured
instruments
87 For the purposes of this Act and section 155.1 of the Financial Administration Act, any charge that is payable at any
time by a person under the Financial Administration Act in
respect of an instrument tendered in payment or settlement of an amount that is payable under this Act is
deemed to be an amount that is payable by the person at that time under this Act. In addition, Part II of
the Interest and Administrative Charges Regulations does not
apply to the charge and any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed
to be extinguished at the time the total of the amount and any applicable interest under this Act is
paid.
SUBDIVISION D
Records and Information
Keeping records
88 (1) Every person that pays or is required to pay an amount of tax, every person that is
required under this Act to file a return and every person that makes an application for a rebate must keep
all records that are necessary to enable the determination of the person’s liabilities and obligations under
this Act or the amount of any rebate to which the person is entitled under this Act and whether the person
has complied with this Act.
Minister may specify
information
(2) The Minister may specify the form a record is to take and any information that the
record must contain.
Language and location
of record
(3) Unless otherwise authorized by the Minister, a record must be kept in Canada in
English or in French.
Electronic
records
(4) Every person required under this Act to keep a record that does so electronically
must ensure that all equipment and software necessary to make the record intelligible are available during
the retention period required for the record.
Exemptions
(5) The Minister may, on any terms and conditions that are acceptable to the Minister,
exempt a person or a class of persons from the requirement in subsection (4).
Inadequate
records
(6) If a person fails to keep adequate records for the purposes of this Act, the
Minister may, in writing, require the person to keep any records that the Minister may specify, and the
person must keep the records specified by the Minister.
General period for
retention
(7) Every person that is required to keep records must retain them until the expiry of
six years after the end of the year to which they relate or for any other period that may be
prescribed.
Objection or
appeal
(8) If a person that is required under this Act to keep records serves a notice of
objection or is a party to an appeal or reference under this Act, the person must retain every record that
pertains to the subject-matter of the objection, appeal or reference until the objection, appeal or
reference is finally disposed of.
Demand by
Minister
(9) If the Minister is of the opinion that it is necessary for the administration or
enforcement of this Act, the Minister may, by a demand served personally or sent by confirmed delivery
service, require any person required under this Act to keep records to retain those records for any period
that is specified in the demand, and the person must comply with the demand.
Permission for earlier
disposal
(10) A person that is required under this Act to keep records may dispose of them before
the expiry of the period during which they are required to be kept if written permission for their disposal
is given by the Minister.
Electronic funds
transfer
89 For greater certainty, information obtained by the Minister under Part XV.1 of the
Income Tax Act may be used for the purposes of this
Act.
Requirement to provide
information or record
90 (1) Despite any other provision of this Act, the Minister may, subject to subsection
(3), for any purpose related to the administration or enforcement of this Act, by a notice served or sent in
accordance with subsection (2), require a person resident in Canada or a person that is not resident in
Canada but that is engaged in activities in Canada to provide any information or record.
Notice
(2) A notice referred to in subsection (1) may be
(a) served personally;
(b) sent by confirmed delivery service; or
(c) sent electronically to a bank or credit union that has provided written consent to
receive notices under subsection (1) electronically.
Unnamed persons
(3) The Minister must not impose on any person (in this section referred to as a “third
party”) a requirement to provide information or any record relating to one or more unnamed persons unless
the Minister first obtains the authorization of a judge under subsection (4).
Judicial
authorization
(4) A judge of the Federal Court may, on application by the Minister and subject to any
conditions that the judge considers appropriate, authorize the Minister to impose on a third party a
requirement under subsection (1) relating to an unnamed person or more than one unnamed person (in this
subsection referred to as the “group”) if the judge is satisfied by information on oath that
(a) the person or group is ascertainable; and
(b) the requirement is made to verify compliance by the person or persons in the group
with any obligation under this Act.
Definitions
91 (1) The following definitions apply in this section.
authorized person means a person who is engaged or employed, or who was formerly engaged or employed,
by or on behalf of Her Majesty in right of Canada to assist in carrying out the provisions of this Act.
(personne autorisée)
business number means the number (other than a Social Insurance Number) used by the Minister to
identify a person registered for the purposes of this Act. (numéro
d’entreprise)
confidential
information means information of any kind and in any form that relates
to one or more persons and that is
(a) obtained by or on behalf of the Minister for the purposes of this Act, or
(b) prepared from information referred to in paragraph (a),
but does not include information that does not
directly or indirectly reveal the identity of the person to whom it relates and, for the purposes of
applying subsections (3), (13) and (15) to a representative of a government entity that is not an official,
includes only the information described in subsection (6). (renseignement confidentiel)
court of appeal has the same meaning as in section 2 of the Criminal Code. (cour
d’appel)
government entity does not include a local authority determined by the Minister to be a municipality
under paragraph (b) of the definition municipality in
section 2. (entité
gouvernementale)
municipality does not include a local authority determined by the Minister to be a municipality
under paragraph (b) of the definition municipality in
section 2. (municipalité)
official means a person that is employed in the service of, that occupies a position of
responsibility in the service of, or that is engaged by or on behalf of Her Majesty in right of Canada or a
province, or a person that was formerly so employed, that formerly occupied such a position or that formerly
was so engaged. (fonctionnaire)
representative of a government entity means a person that is employed in the service of, that
occupies a position of responsibility in the service of, or that is engaged by or on behalf of, a government
entity, and includes, for the purposes of subsections (2), (3), (13) and (15), a person that was formerly so
employed, that formerly occupied such a position or that formerly was so engaged. (représentant)
Provision of
confidential information
(2) Except as authorized under this section, an official or other representative of a
government entity must not knowingly
(a) provide, or allow to be provided, to any person any confidential information;
(b) allow any person to have access to any confidential information; or
(c) use any confidential information other than in the course of the administration or
enforcement of this Act.
Confidential
information evidence not compellable
(3) Despite any other Act of Parliament or other law, no official or other
representative of a government entity is required, in connection with any legal proceedings, to give or
produce evidence relating to any confidential information.
Communications —
proceedings have been commenced
(4) Subsections (2) and (3) do not apply in respect of
(a) criminal proceedings, either by indictment or on summary conviction, that have been
commenced by the laying of an information or the preferring of an indictment, under an Act of Parliament;
or
(b) any legal proceedings relating to the administration or enforcement of this Act, any
other Act of Parliament or law of a province that provides for the imposition of a duty or tax, the Canada Pension Plan, the Employment Insurance Act or Part 1 of the Greenhouse Gas Pollution Pricing Act.
Authorized provision
of confidential information
(5) The Minister may provide appropriate persons with any confidential information that
may reasonably be regarded as necessary solely for a purpose relating to the life, health or safety of an
individual or to the environment in Canada or any other country.
Disclosure of
confidential information
(6) An official may provide any confidential information to a person identified in
subsection 211(6) of the Excise Act, 2001, but only to the
extent that the information is described in that subsection and solely for the applicable purposes
identified in that subsection with any modifications that the circumstances require, including reading
references to the Excise Act, 2001 as references to this
Act.
Restrictions on
information sharing
(7) No information may be provided to a representative of a government entity under
subsection (6) in connection with a program, activity or service provided or undertaken by the government
entity unless the government entity uses the business number as an identifier in connection with the
program, activity or service.
Public
disclosure
(8) The Minister may, in connection with a program, activity or service provided or
undertaken by the Minister, make available to the public
(a) the business number of, and the name of (including any trade name or other name used
by), the holder of a business number; and
(b) a copy of, or information contained on, a tax-paid certificate issued under section
37 or a notice of revocation in respect of such a
certificate.
Public disclosure by
representative of government entity
(9) A representative of a government entity may, in connection with a program, activity
or service provided or undertaken by the government entity, make available to the public the business number
of, and the name of (including any trade name or other name used by), the holder of a business number,
if
(a) a representative of the government entity was provided with that information
pursuant to subsection (6); and
(b) the government entity uses the business number as an identifier in connection with
the program, activity or service.
Serious
offences
(10) An official may provide information to a law enforcement officer of an appropriate
police organization in the circumstances described in subsection 211(6.4) of the Excise Act, 2001.
Threats to
security
(11) An official may provide information to the head, or their delegate, of a recipient
Government of Canada institution listed in Schedule 3 to the Security of Canada Information Sharing Act in the circumstances
described in subsection 211(6.5) of the Excise Act,
2001.
Measures to prevent
unauthorized use or disclosure
(12) The person presiding at a legal proceeding relating to the supervision, evaluation
or discipline of an authorized person may order any measures that are necessary to ensure that confidential
information is not used or provided to any person for any purpose not relating to that proceeding,
including
(a) holding a hearing in camera;
(b) banning the publication of the information;
(c) concealing the identity of the person to whom the information relates; and
(d) sealing the records of the proceeding.
Disclosure to person
or on consent
(13) An official or other representative of a government entity may provide confidential
information relating to a person
(a) to that person; and
(b) with the consent of that person, to any other person.
Confirmation of
registration and business number
(14) On being provided by any person with information specified by the Minister
sufficient to identify a single person and a number, an official may confirm or deny that the following
statements are both true:
(a) the identified person is registered under Division 5 of Part 1; and
(b) the number is the business number of the identified person.
Appeal from order or
direction
(15) An order or direction that is made in the course of or in connection with any legal
proceedings and that requires an official or other representative of a government entity to give or produce
evidence relating to any confidential information may, by notice served on all interested parties, be
appealed forthwith by the Minister or by the person against whom the order or direction is made to
(a) the court of appeal of the province in which the order or direction is made, in the
case of an order or direction made by a court or other tribunal established under the laws of the province,
whether that court or tribunal is exercising a jurisdiction conferred by the laws of Canada; or
(b) the Federal Court of Appeal, in the case of an order or direction made by a court or
other tribunal established under the laws of Canada.
Disposition of
appeal
(16) The court to which an appeal is taken under subsection (15) may allow the appeal and
quash the order or direction appealed from or may dismiss the appeal, and the rules of practice and
procedure from time to time governing appeals to the courts must apply, with any modifications that the
circumstances require, in respect of an appeal instituted under subsection (15).
Stay
(17) An appeal instituted under subsection (15) must stay the operation of the order or
direction appealed from until judgment is pronounced.
SUBDIVISION E
Assessments
Assessment
92 (1) The Minister may assess a person for any amount of tax or other amount payable by
the person under this Act and may, despite any previous assessment covering, in whole or in part, the same
matter, vary the assessment, reassess the person or make any additional assessments that the circumstances
require.
Liability not
affected
(2) The liability of a person to pay an amount under this Act is not affected by an
incorrect or incomplete assessment or by the fact that no assessment has been made.
Minister not
bound
(3) The Minister is not bound by any return, application or information provided by or
on behalf of any person and may make an assessment despite any return, application or information provided
or not provided.
Assessment valid and
binding
(4) An assessment, subject to being vacated on an objection or appeal under this Act and
subject to a reassessment, is deemed to be valid and binding.
Assessment deemed
valid
(5) Subject to being reassessed or vacated as a result of an objection or appeal under
this Act, an assessment is deemed to be valid and binding despite any error, defect or omission in the
assessment or in any proceeding under this Act relating to it.
Rebate on
reassessment
(6) If a person has paid an amount assessed under this section and the amount paid
exceeds the amount determined on reassessment to have been payable by the person, the Minister must pay a
rebate to the person equal to the excess and, for the purpose of section 83, the rebate is deemed to have been required to be paid on the
day on which the amount was paid to the Minister together with interest on the excess at the specified rate
for the period beginning on the day the amount was paid by the person and ending on the day the rebate is
paid.
Determination of
rebates
(7) In making an assessment, the Minister may take into account any rebate payable to
the person being assessed under this Act. If the Minister does so, the person is deemed to have applied for
the rebate under this Act on the day the notice of assessment is sent.
Interest on cancelled
amounts
(8) Despite subsection (4), if a person has paid an amount of interest or penalty and
the Minister waives or cancels that amount under section 85 or
120, the Minister must rebate the amount to the person,
together with interest on the amount at the specified rate for the period beginning on the day that is 30
days after the day on which the Minister received a request in a manner satisfactory to the Minister to
apply that section and ending on the day on which the rebate is paid.
Assessment of
rebate
93 (1) On receipt of an application made by a person for a rebate under this Act, the
Minister must, without delay, consider the application and assess the amount of the rebate, if any, payable
to the person.
Reassessment
(2) The Minister may reassess or make an additional assessment of the amount of a rebate
despite any previous assessment of the amount of the rebate.
Assessment of
overpayment of rebate
(3) The Minister may assess, reassess or make an additional assessment of an amount
payable by a person under section 58 despite any previous
assessment of the amount.
Payment
(4) If, on assessment under this section, the Minister determines that a rebate is
payable to a person, the Minister must pay the rebate to the person.
Interest
(5) If a rebate under this section is paid to a person, the Minister must pay interest
at the specified rate to the person on the rebate for the period beginning on the day that is 30 days after
the day on which the application for the rebate is filed with the Minister and ending on the day on which
the rebate is paid.
Restriction on payment
by Minister
94 An amount under section 92 or 93 is not to be paid to a person by the Minister at any time,
unless all returns of which the Minister has knowledge and that are required to be filed at or before that
time by the person under this Act, the Excise Tax Act, the
Income Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act and Part 1 of the Greenhouse Gas Pollution Pricing Act have been filed with the
Minister.
Notice of
assessment
95 (1) After making an assessment under this Act, the Minister must send to the person
assessed a notice of the assessment.
Payment of
remainder
(2) If the Minister has assessed a person for an amount, any portion of that amount then
remaining unpaid is payable to the Receiver General as of the date of the notice of assessment.
Limitation period for
assessments
96 (1) Subject to subsections (3) to (7) and (10), no assessment in respect of an amount of
tax or other amount payable by a person under this Act must be made more than four years after it became
payable by the person under this Act.
Period for assessment
of rebate
(2) Subject to subsections (3) to (7) and (10), an assessment under subsection 93(1) of the amount of a rebate may be made at any time, but a
reassessment or additional assessment under section 93 or an
assessment under subsection 93(3) in respect of an amount paid
or applied as a rebate or of an amount paid or applied as interest in respect of an amount paid or applied
as a rebate is not to be made more than four years after the day the application for the rebate was filed in
accordance with this Act.
Exception — objection
or appeal
(3) A variation of an assessment, or a reassessment, in respect of an amount of tax or
other amount payable under this Act by a person may be made at any time if the variation or reassessment is
made
(a) to give effect to a decision on an objection or appeal;
(b) with the written consent of an appellant to dispose of an appeal; or
(c) to give effect to an alternative basis or argument advanced by the Minister under
subsection (7).
Exception — neglect or
fraud
(4) An assessment in respect of any matter may be made at any time if the person to be
assessed has, in respect of that matter,
(a) made a misrepresentation that is attributable to their neglect, carelessness or
wilful default; or
(b) committed fraud with respect to a return or an application for a rebate filed under
this Act.
Exception — other
period
(5) If, in making an assessment, the Minister determines that a person has paid in
respect of any matter an amount as or on account of tax, or net tax, payable for a particular reporting
period of the person that was in fact payable for another reporting period of the person, the Minister may
at any time make an assessment for that other period in respect of that matter.
Exception — adjustment
to rebate
(6) If the result of a reassessment on an objection to, or a decision on an appeal from,
an assessment is to reduce the amount of tax, or net tax, payable by a person and, by reason of the
reduction, any rebate claimed by the person for a reporting period, or in an application for a rebate,
should be reduced, the Minister may at any time assess or reassess that reporting period or that application
for rebate, as the case may be, only for the purpose of taking the reduction of tax into account in respect
of the rebate.
Alternative basis or
argument
(7) The Minister may advance an alternative basis or argument in support of an
assessment of a person, or in support of all or any portion of the total amount determined on assessment to
be payable by a person under this Act, at any time after the period otherwise limited by subsection (1) or
(2) for making the assessment unless, on an appeal under this Act,
(a) there is relevant evidence that the person is no longer able to adduce without leave
of the court; and
(b) it is not appropriate in the circumstances for the court to order that the evidence
be adduced.
Limitation
(8) If a reassessment of a person is made that gives effect to an alternative basis or
argument advanced by the Minister under subsection (7) in support of a particular assessment of the person,
the Minister is not to reassess for an amount that is greater than the total amount of the particular
assessment.
Exception
(9) Subsection (8) does not apply to any portion of an amount determined on reassessment
that the Minister would be entitled to reassess under this Act at any time after the period otherwise
limited by subsection (1) or (2) for making the reassessment if this Act were read without reference to
subsection (7).
Exception —
waiver
(10) An assessment in respect of any matter specified in a waiver filed under subsection
(11) may be made at any time within the period specified in the waiver unless the waiver has been revoked
under subsection (12), in which case an assessment may be made at any time during the 180 days that the
waiver remains in effect.
Filing waiver
(11) Any person may, within the time otherwise limited by subsection (1) or (2) for an
assessment, waive the application of subsection (1) or (2) by filing with the Minister a waiver in the
prescribed form specifying the period for which, and the matter in respect of which, the person waives the
application of that subsection.
Revoking waiver
(12) Any person that has filed a waiver may revoke it by filing with the Minister a
notice of revocation of the waiver in the prescribed form and manner. The waiver remains in effect for 180
days after the day on which the notice is filed.
SUBDIVISION F
Objections to Assessment
Objection to
assessment
97 (1) Any person that has been assessed and that objects to the assessment may, within 90
days after the date of the notice of the assessment, file with the Minister a notice of objection in the
prescribed form and manner setting out the reasons for the objection and all relevant facts.
Issue to be
decided
(2) A notice of objection must
(a) reasonably describe each issue to be decided;
(b) specify in respect of each issue the relief sought, expressed as the change in any
amount that is relevant for the purposes of the assessment; and
(c) provide the facts and reasons relied on by the person in respect of each
issue.
Late compliance
(3) Despite subsection (2), if a notice of objection does not include the information
required under paragraph (2)(b) or (c) in respect of an issue to be decided that is described in the notice,
the Minister may, in writing, request the person to provide the information, and that paragraph is deemed to
be complied with in respect of the issue if, within 60 days after the day on which the request is made, the
person submits the information in writing to the Minister.
Limitation on
objections
(4) Despite subsection (1), if a person has filed a notice of objection to an assessment
(in this subsection referred to as the “earlier assessment”) and the Minister makes a particular assessment
under subsection (8) as a result of the notice of objection, unless the earlier assessment was made in
accordance with an order of a court vacating, varying or restoring an assessment or referring an assessment
back to the Minister for reconsideration and reassessment, the person may object to the particular
assessment in respect of an issue
(a) only if the person complied with subsection (2) in the notice with respect to that
issue; and
(b) only with respect to the relief sought in respect of that issue as specified by the
person in the notice.
Application —
subsection (4)
(5) Subsection (4) does not limit the right of the person to object to the particular
assessment in respect of an issue that was part of the particular assessment and not part of the earlier
assessment.
Limitation on
objections
(6) Despite subsection (1), no objection may be made by a person in respect of an issue
for which the right of objection has been waived in writing by the person.
Acceptance of
objection
(7) The Minister may accept a notice of objection even though it was not filed in the
prescribed form and manner.
Consideration of
objection
(8) On receipt of a notice of objection, the Minister must, without delay, reconsider
the assessment and vacate or confirm it or make a reassessment.
Waiving
reconsideration
(9) If, in a notice of objection, a person that wishes to appeal directly to the Tax
Court of Canada requests the Minister not to reconsider the assessment objected to, the Minister may confirm
the assessment without reconsideration.
Notice of
decision
(10) After reconsidering an assessment under subsection (8) or confirming an assessment
under subsection (9), the Minister must notify the person objecting to the assessment of the Minister’s
decision in writing.
Extension of time by
Minister
98 (1) If no objection to an assessment is filed under section 97 within the time limited under this Act, a person may make an
application to the Minister to extend the time for filing a notice of objection and the Minister may grant
the application.
Contents of
application
(2) An application must set out the reasons why the notice of objection was not filed
within the time limited under this Act for doing so.
How application
made
(3) An application must be made by delivering or mailing, to the Assistant Commissioner
of the Appeals Branch of the Canada Revenue Agency, the application accompanied by a copy of the notice of
objection.
Defect in
application
(4) The Minister may accept an application even though it was not made in accordance
with subsection (3).
Duties of
Minister
(5) On receipt of an application, the Minister must, without delay, consider the
application and grant or refuse it, and must notify the person of the decision in writing.
Date of objection if
application granted
(6) If an application is granted, the notice of objection is deemed to have been filed
on the day of the decision of the Minister.
Conditions — grant of
application
(7) An application is not to be granted under this section unless
(a) the application is made within one year after the expiry of the time limited under
this Act for objecting; and
(b) the person demonstrates that
(i) within the time limited under this Act for objecting, the person
(A) was unable to act or to give a mandate to act in their name, or
(B) had a bona fide intention to object
to the assessment,
(ii) given the reasons set out in the application and the circumstances of the case, it
would be just and equitable to grant the application, and
(iii) the application was made as soon as circumstances permitted it to be made.
SUBDIVISION G
Appeal
Extension of time by
Tax Court of Canada
99 (1) A person that has made an application under section 98 may apply to the Tax Court of Canada to have the application
granted after either
(a) the Minister has refused the application; or
(b) 90 days have elapsed after the day on which the application was made and the
Minister has not notified the person of the Minister’s decision.
When application may
not be made
(2) No application may be made after the expiry of 30 days after the day on which the
decision referred to in subsection 98(5) is sent to the
person.
How application
made
(3) An application must be made by filing in the Registry of the Tax Court of Canada, in
accordance with the Tax Court of Canada Act, three copies
of the documents delivered or mailed under subsection 98(3).
Copy to the
Commissioner
(4) The Tax Court of Canada must send a copy of the application to the
Commissioner.
Powers of Tax Court of
Canada
(5) The Tax Court of Canada may dispose of an application by dismissing or granting it
and, in granting it, the Court may impose any terms that it considers just or order that the notice of
objection be deemed to be a valid objection as of the date of the order.
When application to be
granted
(6) An application must not be granted under this section unless
(a) the application under subsection 98(1)
was made within one year after the expiry of the time limited under this Act for objecting; and
(b) the person demonstrates that
(i) within the time limited under this Act for objecting, the person
(A) was unable to act or to give a mandate to act in their name, or
(B) had a bona fide intention to object
to the assessment,
(ii) given the reasons set out in the application under this section and the
circumstances of the case, it would be just and equitable to grant the application, and
(iii) the application under subsection 98(1)
was made as soon as circumstances permitted it to be made.
Appeal to Tax Court of
Canada
100 (1) Subject to subsection (2), a person that has filed a notice of objection to an
assessment may appeal to the Tax Court of Canada to have the assessment vacated or a reassessment made
after
(a) the Minister has confirmed the assessment or has reassessed; or
(b) 180 days have elapsed after the day on which the notice of objection was filed and
the Minister has not notified the person that the Minister has vacated or confirmed the assessment or has
reassessed.
No appeal
(2) No appeal under subsection (1) may be instituted after the expiry of 90 days after
the day on which notice that the Minister has reassessed or confirmed the assessment is sent to the person
under subsection 97(10).
Amendment of
appeal
(3) The Tax Court of Canada may, on any terms that it sees fit, authorize a person that
has instituted an appeal in respect of a matter to amend the appeal to include any further assessment in
respect of the matter that the person is entitled under this section to appeal.
Extension of time to
appeal
101 (1) If no appeal to the Tax Court of Canada under section 100 has been instituted within the time limited by that section for
doing so, a person may make an application to the Tax Court of Canada for an order extending the time within
which an appeal may be instituted, and the Court may make an order extending the time for appealing and may
impose any terms that it considers just.
Contents of
application
(2) An application must set out the reasons why the appeal was not instituted within the
time limited under section 100 for doing so.
How application
made
(3) An application must be made by filing in the Registry of the Tax Court of Canada, in
accordance with the Tax Court of Canada Act, three copies
of the application together with three copies of the notice of appeal.
Copy to Deputy
Attorney General of Canada
(4) The Tax Court of Canada must send a copy of the application to the office of the
Deputy Attorney General of Canada.
When order to be
made
(5) An order must not be made under this section unless
(a) the application is made within one year after the expiry of the time limited under
section 100 for appealing; and
(b) the person demonstrates that
(i) within the time limited under section 100 for appealing, the person
(A) was unable to act or to give a mandate to act in their name, or
(B) had a bona fide intention to
appeal,
(ii) given the reasons set out in the application and the circumstances of the case, it
would be just and equitable to grant the application,
(iii) the application was made as soon as circumstances permitted it to be made,
and
(iv) there are reasonable grounds for the appeal.
Limitation on appeals
to the Tax Court of Canada
102 (1) Despite section 100, if a person has
filed a notice of objection to an assessment, the person may appeal to the Tax Court of Canada to have the
assessment vacated, or a reassessment made, only with respect to
(a) an issue in respect of which the person has complied with subsection 97(2) in the notice and the relief sought in respect of the issue
as specified by the person in the notice; or
(b) an issue described in subsection 97(5)
if the person was not required to file a notice of objection to the assessment that gave rise to the
issue.
No appeal if
waiver
(2) Despite section 100, a person may not
appeal to the Tax Court of Canada to have an assessment vacated or varied in respect of an issue for which
the right of objection or appeal has been waived in writing by the person.
Institution of
appeals
103 An appeal to the Tax Court of Canada under this Act must be instituted in accordance
with the Tax Court of Canada Act.
Disposition of
appeal
104 The Tax Court of Canada may dispose of an appeal from an assessment by
(a) dismissing it; or
(b) allowing it and
(i) vacating the assessment, or
(ii) referring the assessment back to the Minister for reconsideration and
reassessment.
References to Tax
Court of Canada
105 (1) If the Minister and another person agree in writing that a question arising under
this Act, in respect of any assessment or proposed assessment of the person, should be determined by the Tax
Court of Canada, that question must be determined by that Court.
Time during
consideration not to count
(2) For the purpose of making an assessment of a person that agreed in writing to the
determination of a question, filing a notice of objection to an assessment or instituting an appeal from an
assessment, the time between the day on which proceedings are instituted in the Tax Court of Canada to have
a question determined and the day on which the question is finally determined must not be counted in the
computation of
(a) the four-year period referred to in subsection 96(1);
(b) the period within which a notice of objection to an assessment may be filed under
section 97; or
(c) the period within which an appeal may be instituted under section 100.
Reference of common
questions to Tax Court of Canada
106 (1) If the Minister is of the opinion that a question arising out of one and the same
transaction or occurrence or series of transactions or occurrences is common to assessments or proposed
assessments in respect of two or more persons, the Minister may apply to the Tax Court of Canada for a
determination of the question.
Contents of
application
(2) An application must set out
(a) the question in respect of which the Minister requests a determination;
(b) the names of the persons that the Minister seeks to have bound by the determination;
and
(c) the facts and reasons on which the Minister relies and on which the Minister based
or intends to base assessments of each person named in the application.
Service
(3) A copy of the application must be served by the Minister on each of the persons
named in it and on any other person that, in the opinion of the Tax Court of Canada, is likely to be
affected by the determination of the question.
Determination by Tax
Court of Canada of question
(4) If the Tax Court of Canada is satisfied that a determination of a question set out
in an application will affect assessments or proposed assessments in respect of two or more persons that
have been served with a copy of the application and that are named in an order of the Tax Court of Canada
under this subsection, it may
(a) if none of the persons named in the order has appealed from such an assessment,
proceed to determine the question in any manner that it considers appropriate; or
(b) if one or more of the persons named in the order has or have appealed, make any
order that it considers appropriate joining a party or parties to that appeal or those appeals and proceed
to determine the question.
Determination final
and conclusive
(5) Subject to subsection (6), if a question set out in an application is determined by
the Tax Court of Canada, the determination is final and conclusive for the purposes of any assessments of
persons named by the Court under subsection (4).
Appeal
(6) If a question set out in an application is determined by the Tax Court of Canada,
the Minister or any of the persons that have been served with a copy of the application and that are named
in an order of the Court under subsection (4) may, in accordance with the provisions of this Act, the Tax Court of Canada Act or the Federal Courts Act, as they relate to appeals from or
applications for judicial review of decisions of the Tax Court of Canada, appeal from the
determination.
Parties to
appeal
(7) The parties that are bound by a determination are parties to any appeal from the
determination.
Time during
consideration not counted
(8) For the purpose of making an assessment of a person, filing a notice of objection to
an assessment or instituting an appeal from an assessment, the periods described in subsection (9) must not
be counted in the computation of
(a) the four-year period referred to in subsection 96(1);
(b) the period within which a notice of objection to an assessment may be filed under
section 97; or
(c) the period within which an appeal may be instituted under section 100.
Excluded
periods
(9) The period that is not to be counted in the computation of the periods described in
paragraphs (8)(a) to (c) is the time between the day on which an application that is made under this section
is served on a person under subsection (3) and
(a) in the case of a person named in an order of the Tax Court of Canada under
subsection (4), the day on which the determination becomes final and conclusive and not subject to any
appeal; or
(b) in the case of any other person, the day on which the person is served with a notice
that the person has not been named in an order of the Tax Court of Canada under subsection (4).
SUBDIVISION H
Penalties
Failure to file a
return when required
107 Every person that fails to file a return (other than an information return) for a
reporting period as and when required under this Act is liable to a penalty equal to the sum of
(a) an amount equal to 1% of the total of all amounts each of which is an amount that is
required to be paid for the reporting period and was not paid on the day on which the return was required to
be filed, and
(b) the amount obtained when one quarter of the amount determined under paragraph (a) is
multiplied by the number of complete months, not exceeding 12, from the day on which the return was required
to be filed to the day on which the return is filed.
Failure to file by
electronic transmission
108 In addition to any other penalty under this Act, every person that fails to file a
return under this Act for a reporting period as required by subsection 74(3) is liable to a penalty equal to an amount determined in
prescribed manner.
Failure to
register
109 Every person that is required to be registered under Division 5 of Part 1 but does
not apply for registration under that Division as and when required is liable to a penalty of $2,000.
Penalty — false
statement
110 Despite any other provision of this Act, if a vendor sells a subject item to a
purchaser, if an exemption certificate applies in respect of the sale in accordance with section 36, if a declaration referred to in subparagraph 36(1)(b)(ii) is included in the exemption certificate and if that
declaration is false, the following rules apply:
(a) the purchaser is liable, in addition to any other penalty under this Act, to a
penalty equal to the greater of $1,000 and 150% of the total of
(i) the amount of tax in respect of the subject item that would have been payable under
section 18 if the exemption certificate had not applied to the
sale, and
(ii) the amount of tax in respect of the subject item that would have been payable by the
purchaser under section 29 if the exemption certificate had not
applied to the sale; and
(b) if the vendor knows, or ought to have known, that the declaration is false, the
purchaser and the vendor are jointly and severally, or solidarily, liable for the payment of the penalty
under paragraph (a) and any related interest.
Penalty for false
declaration — special import certificate
111 Despite any other provision of this Act, if a person imports a subject item, if a
special import certificate in respect of the importation is in effect in accordance with section 38, if the person, when applying under subsection 38(1) for the special import certificate in respect of the subject
item, made a declaration required under paragraph 38(2)(a) to
be included in the application and if that declaration is false at the time of importation, the person is
liable to, in addition to any other penalty under this Act, a penalty equal to the greater of $1,000 and
150% of the total of
(a) the amount of tax in respect of the subject item that would have been payable by the
person under section 20 if the special import certificate in
respect of the importation had not been issued by the Minister; and
(b) the amount of tax in respect of the subject item that would have been payable by the
person under section 30 if the special import certificate in
respect of the importation had not been issued by the Minister.
Failure to apply —
tax-paid certificate
112 Every person that is required to apply for a tax-paid certificate under section
37 and fails to do so as and when required is liable to a
penalty of $1,000.
Failure to notify —
tax-paid certificate
113 Every person that is required to provide a notification to the Minister under
subsection 37(9) and fails to do so as and when required is
liable to a penalty of $1,000.
Penalty — unregistered
importer
114 If tax is payable by a person under section 20 and, at the time the tax became payable, the person was required
to be registered under Division 5 of Part 1 but has not applied for registration under that Division, the
person is liable to, in addition to any other penalty under this Act, a penalty equal to the greater of
$1,000 and 50% of the amount of tax payable under section 20 in
respect of the subject item.
Failure to answer
demand
115 Every person that fails to file a return as and when required under a demand issued
under section 77 is liable to a penalty of $1,000.
Failure to provide
information
116 Every person that fails to provide any information or record as and when required
under this Act is liable to a penalty of $1,000 for every failure unless, in the case of information
required in respect of another person, a reasonable effort was made by the person to obtain the
information.
Failure to provide
information
117 Every person that fails to report an amount prescribed by regulation, or to provide
information prescribed by regulation, in a return prescribed by regulation as and when required, or that
misstates such an amount or such information in such a return, is liable to a penalty, in addition to any
other penalty under this Act, equal to an amount determined in prescribed manner for each such failure or
misstatement by the person.
False statements or
omissions
118 Every person that knowingly, or under circumstances amounting to gross negligence,
makes or participates in, assents to or acquiesces in the making of a false statement or omission in a
return, application, form, certificate, statement, invoice or answer (each of which is in this section
referred to as a “return”) is liable to a penalty of the greater of $1,000 and 25% of the total of
(a) if the false statement or omission is relevant to the determination of an amount
payable under this Act by the person, the amount, if any, by which
(i) the amount payable
exceeds
(ii) the amount that would be payable by the person if the amount payable were determined
on the basis of the information provided in the return, and
(b) if the false statement or omission is relevant to the determination of a rebate or
any other payment that may be obtained under this Act, the amount, if any, by which
(i) the amount that would be the rebate or other payment payable to the person if the
rebate or other payment were determined on the basis of the information provided in the return
exceeds
(ii) the amount of the rebate or other payment payable to the person.
General penalty
119 Every person that fails to comply with any provision of this Act for which no other
penalty is specified is liable to a penalty of $1,000.
Waiving or cancelling
penalties
120 (1) The Minister may, on or before the day that is 10 calendar years after the end of a
reporting period of a person, or on application by the person on or before that day, waive or cancel all or
any portion of any penalty under this Act payable by the person in respect of the reporting period.
Interest if amount
waived or cancelled
(2) If a person has paid an amount of penalty and the Minister waives or cancels that
amount under subsection (1), the Minister must pay interest on the amount paid by the person beginning on
the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to
the Minister to apply that subsection and ending on the day on which the amount is rebated to the
person.
SUBDIVISION I
Offences and Punishment
Offence for failure to
file return or to comply with demand or order
121 (1) Every person that fails to file or make a return as and when required under this Act
or that fails to comply with an obligation under subsection 88(6) or (9) or section 90, or an order made under section 126, is guilty of an offence and, in addition to any penalty
otherwise provided, is liable on summary conviction to a fine of not less than $2,000 and not more than
$40,000 or to imprisonment for a term not exceeding 12 months, or to both.
Saving
(2) A person that is convicted of an offence under subsection (1) for a failure to
comply with a provision of this Act is not liable to pay a penalty under this Act for the same failure,
unless a notice of assessment for the penalty was issued before the information or complaint giving rise to
the conviction was laid or made.
Offences for false or
deceptive statement
122 (1) Every person commits an offence that
(a) makes, or participates in, assents to or acquiesces in the making of, a false or
deceptive statement in a return, application, certificate, statement, document, record or answer filed or
made as required under this Act;
(b) for the purposes of evading payment of any amount payable under this Act, or
obtaining a rebate or other payment payable under this Act to which the person is not entitled,
(i) destroys, alters, mutilates, conceals or otherwise disposes of any records of a
person, or
(ii) makes, or assents to or acquiesces in the making of, a false or deceptive entry, or
omits, or assents to or acquiesces in the omission, to enter a material particular in the records of a
person;
(c) intentionally, in any manner, evades or attempts to evade compliance with this Act
or payment of an amount payable under this Act;
(d) intentionally, in any manner, obtains or attempts to obtain a rebate or other
payment payable under this Act to which the person is not entitled; or
(e) conspires with any person to commit an offence described in any of paragraphs (a) to
(d).
Punishment
(2) Every person that commits an offence under subsection (1) is guilty of an offence
punishable on summary conviction and, in addition to any penalty otherwise provided, is liable to
(a) a fine of not less than 50%, and not more than 200%, of the amount payable that was
sought to be evaded, or of the rebate or other payment sought, or, if the amount that was sought to be
evaded cannot be ascertained, a fine of not less than $2,000 and not more than $40,000;
(b) imprisonment for a term not exceeding two years; or
(c) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding
two years.
Prosecution on
indictment
(3) Every person that is charged with an offence described in subsection (1) may, at the
election of the Attorney General of Canada, be prosecuted on indictment and, if convicted, is, in addition
to any penalty otherwise provided, liable to
(a) a fine of not less than 100%, and not more than 200%, of the amount payable that was
sought to be evaded, or of the rebate or other payment sought, or, if the amount that was sought to be
evaded cannot be ascertained, a fine of not less than $5,000 and not more than $100,000;
(b) imprisonment for a term not exceeding five years; or
(c) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding
five years.
Penalty on
conviction
(4) A person that is convicted of an offence under this section is not liable to pay a
penalty imposed under this Act for the same evasion or attempt unless a notice of assessment for that
penalty was issued before the information or complaint giving rise to the conviction was laid or
made.
Stay of appeal
(5) If, in any appeal under this Act, substantially the same facts are at issue as those
that are at issue in a prosecution under this section, the Minister may file a stay of proceedings with the
Tax Court of Canada and, upon that filing, the proceedings before the Tax Court of Canada are stayed pending
a final determination of the outcome of the prosecution.
Definition of
confidential information
123 (1) In this section, confidential
information has the same meaning as in subsection 91(1).
Offence — confidential
information
(2) A person is guilty of an offence and liable on summary conviction to a fine not
exceeding $5,000 or to imprisonment for a term not exceeding 12 months, or to both, if that person
(a) contravenes subsection 91(2); or
(b) knowingly contravenes an order made under subsection 91(12).
Offence — confidential
information
(3) Every person to whom confidential information has been provided for a particular
purpose under subsection 91(6) and that for any other purpose
knowingly uses, provides to any person, allows the provision to any person of, or allows any person access
to, that information is guilty of an offence and liable on summary conviction to a fine not exceeding $5,000
or to imprisonment for a term not exceeding 12 months, or to both.
Failure to pay
tax
124 Every person that intentionally fails to pay an amount of tax as and when required
under this Act is guilty of an offence punishable on summary conviction and liable, in addition to any
penalty or interest otherwise provided, to
(a) a fine not exceeding the aggregate of $1,000 and an amount equal to 50% of the
amount of tax that should have been paid;
(b) imprisonment for a term not exceeding 12 months; or
(c) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding
12 months.
General offence
125 Every person that fails to comply with any provision of this Act for which no other
offence is specified in this Act is guilty of an offence punishable on summary conviction and liable to a
fine of not more than $100,000 or to imprisonment for a term of not more than 12 months, or to both.
Compliance
orders
126 If a person is convicted by a court of an offence for a failure to comply with a
provision of this Act, the court may make any order that it deems appropriate to enforce compliance with the
provision.
Officers of
corporations, etc.
127 If a person other than an individual commits an offence under this Act, every
officer, director or representative of the person that directed, authorized, assented to, acquiesced in or
participated in the commission of the offence is a party to and guilty of the offence and liable on
conviction to the punishment provided for the offence, whether or not the person has been prosecuted or
convicted.
No power to decrease
punishment
128 Despite the Criminal Code or any
other law, the court has, in any prosecution or proceeding under this Act, neither the power to impose less
than the minimum fine fixed under this Act nor the power to suspend sentence.
Information or
complaint
129 (1) An information or complaint under this Act may be laid or made by any officer of the
Canada Revenue Agency, by a member of the Royal Canadian Mounted Police or by any person authorized to do so
by the Minister and, if an information or complaint purports to have been laid or made under this Act, it is
deemed to have been laid or made by a person so authorized by the Minister and must not be called into
question for lack of authority of the informant or complainant, except by the Minister or a person acting
for the Minister or for Her Majesty in right of Canada.
Two or more
offences
(2) An information or complaint in respect of an offence under this Act may be for one
or more offences, and no information, complaint, warrant, conviction or other proceeding in a prosecution
under this Act is objectionable or insufficient by reason of the fact that it relates to two or more
offences.
Territorial
jurisdiction
(3) An information or complaint in respect of an offence under this Act may be heard,
tried or determined by any court having territorial jurisdiction where the accused is resident, carrying on
a commercial activity, found, apprehended or in custody, despite that the matter of the information or
complaint did not arise within that territorial jurisdiction.
Limitation of
prosecutions
(4) No proceeding by way of summary conviction in respect of an offence under this Act
may be instituted more than five years after the day on which the subject matter of the proceedings arose,
unless the prosecutor and the defendant agree that they may be instituted after the five years.
SUBDIVISION J
Inspections
Definition of
dwelling-house
130 (1) In this section, dwelling-house
means the whole or any part of a building or structure that is kept or occupied as a permanent or temporary
residence, and includes
(a) a building within the curtilage of a dwelling-house that is connected to it by a
doorway or by a covered and enclosed passageway; and
(b) a unit that is designed to be mobile and to be used as a permanent or temporary
residence and that is being used as such a residence.
Inspections
(2) A person authorized by the Minister to do so may, at all reasonable times and for
any purpose related to the administration or enforcement of this Act, inspect, audit or examine the records,
processes, property or premises of a person that may be relevant in determining the obligations of that or
any other person under this Act, or the amount of any rebate to which that or any other person is entitled
under this Act and whether that person or any other person is in compliance with this Act.
Powers of authorized
person
(3) Subject to subsection (4), the authorized person may, at all reasonable times, for
any purpose related to the administration of enforcement of this Act
(a) enter any place in which the authorized person reasonably believes the person keeps
or should keep records, carries on any activity to which this Act applies or does anything in relation to
that activity;
(b) require any person to give to the authorized person all reasonable assistance, to
answer all proper questions relating to the administration or enforcement of this Act and
(i) to attend with the authorized person at a place designated by the authorized person,
or by video-conference or by another form of electronic communication, and to answer the questions orally,
and
(ii) to answer the questions in writing, in any form specified by the authorized person;
and
(c) require any person to give the authorized person all reasonable assistance with
anything the authorized person is authorized to do under this Act.
Prior
authorization
(4) If any place referred to in subsection (3) is a dwelling-house, the authorized
person may not enter that dwelling-house without the consent of the occupant, except under the authority of
a warrant issued under subsection (5).
Warrant to enter
dwelling-house
(5) A judge may issue a warrant authorizing a person to enter a dwelling-house subject
to the conditions specified in the warrant if, on ex parte
application by the Minister, a judge is satisfied by information on oath that
(a) there are reasonable grounds to believe that the dwelling-house is a place referred
to in subsection (3);
(b) entry into the dwelling-house is necessary for any purpose related to the
administration or enforcement of this Act; and
(c) entry into the dwelling-house has been, or there are reasonable grounds to believe
that entry will be, refused.
Orders if entry not
authorized
(6) If the judge is not satisfied that entry into the dwelling-house is necessary for
any purpose related to the administration or enforcement of this Act, the judge may, to the extent that
access was or may be expected to be refused and that a record or property is or may be expected to be kept
in the dwelling-house,
(a) order the occupant of the dwelling-house to provide a person with reasonable access
to any record or property that is or should be kept in the dwelling-house; and
(b) make any other order that is appropriate in the circumstances to carry out the
purposes of this Act.
Compliance
order
131 (1) On summary application by the Minister, a judge may, despite section 126, order a person to provide any access, assistance, information
or record sought by the Minister under section 90 or 130 if the judge is satisfied that the person was required under
section 90 or 130
to provide the access, assistance, information or record and did not do so.
Notice required
(2) An application under subsection (1) is not to be heard before the end of five clear
days from the day on which the notice of application is served on the person against which the order is
sought.
Judge may impose
conditions
(3) The judge making an order under subsection (1) may impose any conditions in respect
of the order that the judge considers appropriate.
Contempt of
court
(4) If a person fails or refuses to comply with an order, a judge may find the person in
contempt of court and the person is subject to the processes and the punishments of the court to which the
judge is appointed.
Appeal
(5) An order by a judge under subsection (1) may be appealed to a court having appellate
jurisdiction over decisions of the court to which the judge is appointed. An appeal does not suspend the
execution of the order unless it is so ordered by a judge of the court to which the appeal is made.
Search warrant
132 (1) A judge may, on ex parte application
by the Minister, issue a warrant authorizing any person named in the warrant to enter and search any
building, receptacle or place for any record or thing that may afford evidence of the commission of an
offence under this Act and to seize the record or thing and, as soon as is practicable, bring it before, or
make a report in respect of the record or thing to, the judge or, if that judge is unable to act, another
judge of the same court, to be dealt with by the judge in accordance with this section.
Evidence on
oath
(2) An application under subsection (1) must be supported by information on oath
establishing the facts on which the application is based.
Issue of
warrant
(3) A judge may issue a warrant referred to in subsection (1) if the judge is satisfied
that there are reasonable grounds to believe that
(a) an offence under this Act has been committed;
(b) a record or thing that may afford evidence of the commission of the offence is
likely to be found; and
(c) the building, receptacle or place specified in the application is likely to contain
a record or thing referred to in paragraph (b).
Contents of
warrant
(4) A warrant issued under subsection (1) must refer to the offence for which it is
issued, identify the building, receptacle or place to be searched and the person that is alleged to have
committed the offence, and it must be reasonably specific as to any record or thing to be searched for and
seized.
Seizure
(5) Any person that executes a warrant issued under subsection (1) may seize, in
addition to the record or thing referred to in that subsection, any other record or thing that the person
believes on reasonable grounds affords evidence of the commission of an offence under this Act and must, as
soon as is practicable, bring the record or thing before, or make a report in respect of the record or
thing, the judge that issued the warrant or, if that judge is unable to act, another judge of the same
court, to be dealt with by the judge in accordance with this section.
Retention
(6) Subject to subsection (7), if any record or thing seized under subsection (1) or (5)
is brought before a judge or a report in respect of the record or thing is made to a judge, the judge must,
unless the Minister waives retention, order that it be retained by the Minister, that must take reasonable
care to ensure that it is preserved until the conclusion of any investigation into the offence in relation
to which the record or thing was seized or until it is required to be produced for the purposes of a
criminal proceeding.
Return of records or
things seized
(7) If any record or thing seized under subsection (1) or (5) is brought before a judge
or a report in respect of the record or thing is made to a judge, the judge may, on the judge’s own motion
or on summary application by a person with an interest in the record or thing on three clear days notice of
application to the Deputy Attorney General of Canada, order that the record or thing be returned to the
person from which it was seized or the person that is otherwise legally entitled to the record or thing, if
the judge is satisfied that the record or thing
(a) will not be required for an investigation or a criminal proceeding; or
(b) was not seized in accordance with the warrant or this section.
Access and
copies
(8) The person from which any record or thing is seized under this section is entitled,
at all reasonable times and subject to any reasonable conditions that may be imposed by the Minister, to
inspect the record or thing and, in the case of a document, to obtain one copy of the record at the expense
of the Minister.
Definition of
foreign-based information or record
133 (1) For the purposes of this section, foreign-based information or record means any information or
record that is available or located outside Canada and that may be relevant to the administration or
enforcement of this Act.
Requirement to provide
foreign-based information
(2) Despite any other provision of this Act, the Minister may, by a notice served or
sent in accordance with subsection (4), require a person resident in Canada or a non-resident person that
carries on business in Canada to provide any foreign-based information or record.
Notice
(3) A notice referred to in subsection (2) must set out
(a) a reasonable period of time of not less than 90 days for the provision of the
information or record;
(b) a description of the information or record being sought; and
(c) the consequences under subsection (9) to the person of the failure to provide the
information or record being sought within the period of time set out in the notice.
Notice
(4) A notice referred to in subsection (2) may be
(a) served personally;
(b) sent by confirmed delivery service; or
(c) sent electronically to a bank or credit union that has provided written consent to
receive notices under subsection (2) electronically.
Review of foreign
information requirement
(5) If a person is served or sent a notice of a requirement under subsection (2), the
person may, within 90 days after the day on which the notice was served or sent, apply to a judge for a
review of the requirement.
Powers on
review
(6) On hearing an application under subsection (5) in respect of a requirement, a judge
may
(a) confirm the requirement;
(b) vary the requirement if the judge is satisfied that it is appropriate in the
circumstances; or
(c) set aside the requirement if the judge is satisfied that it is unreasonable.
Related person
(7) For the purposes of subsection (6), a requirement to provide information or a record
is not to be considered to be unreasonable because the information or record is under the control of, or
available to, a non-resident person that is not controlled by the person served with the notice of the
requirement under subsection (2) if that person is related to the non-resident person.
Time during
consideration not to count
(8) The period of time between the day an application for the review of a requirement is
made under subsection (5) and the day the review is decided must not be counted in the computation of
(a) the period of time set out in the notice of the requirement; and
(b) the period of time within which an assessment may be made under section 92 or 93.
Consequence of
failure
(9) If a person fails to comply substantially with a notice served under subsection (2)
and if the notice is not set aside under subsection (5), any court having jurisdiction in a civil proceeding
relating to the administration or enforcement of this Act must, on motion of the Minister, prohibit the
introduction by that person of any foreign-based information or record covered by that notice.
Copies
134 If any record is seized, inspected, audited, examined or provided under any of
sections 81, 90
and 130 to 132,
the person by whom it is seized, inspected, audited or examined or to whom it is provided or any officer of
the Canada Revenue Agency may make or cause to be made one or more copies of it and, in the case of an
electronic record, make or cause to be made a print-out of the electronic record, and any record purporting
to be certified by the Minister or an authorized person to be a copy of the record, or to be a print-out of
an electronic record, made under this section is evidence of the nature and content of the original record
and has the same probative force as the original record would have if it were proven in the ordinary
way.
Compliance
135 Every person must, unless the person is unable to do so, do everything the person is
required to do by or pursuant to any of sections 90 and 130 to 134 and no
person is to, physically or otherwise, do or attempt to do any of the following:
(a) interfere with, hinder or molest any official as defined in section 91 doing anything the official is authorized to do under this Act;
or
(b) prevent any official from doing anything the official is authorized to do under this
Act.
Information respecting
non-resident persons
136 Every person that is liable, at any time in a calendar year, to pay an amount of tax
under this Act must, in respect of each non-resident person with which it was not, in prescribed
circumstances, dealing at arm’s length at any time in the year, file with the Minister, within six months
after the end of the year, prescribed information for the year in respect of transactions with that
person.
SUBDIVISION K
Collection
Definitions
137 (1) The following definitions apply in this section.
action means an action to collect a tax debt of a person and includes a proceeding in a
court and anything done by the Minister under any of sections 141 to 146. (action)
legal representative of a person means a trustee in bankruptcy, an assignee, a liquidator, a curator, a
receiver of any kind, a trustee, an heir, an administrator, an executor, a liquidator of a succession, a
committee, or any other like person, administering, winding up, controlling or otherwise dealing in a
representative or fiduciary capacity with any property, business, commercial activity or estate or
succession that belongs or belonged to, or that is or was held for the benefit of, the person or the
person’s estate or succession. (représentant légal)
tax debt means any amount payable by a person under this Act. (dette fiscale)
Debts to Her
Majesty
(2) A tax debt is a debt due to Her Majesty in right of Canada and is recoverable as
such in the Federal Court or any other court of competent jurisdiction or in any other manner provided under
this Act.
Court
proceedings
(3) The Minister may not commence a proceeding in a court to collect a tax debt of a
person in respect of an amount that may be assessed under this Act, unless when the proceeding is commenced
the person has been or may be assessed for that amount.
No actions after
limitation period
(4) The Minister may not commence an action to collect a tax debt after the end of the
limitation period for the collection of the tax debt.
Limitation
period
(5) The limitation period for the collection of a tax debt of a person
(a) begins
(i) if a notice of assessment in respect of the tax debt, or a notice referred to in
subsection 147(1) in respect of the tax debt, is sent to or
served on the person, on the last day on which one of those notices is sent or served, and
(ii) if no notice referred to in subparagraph (i) in respect of the tax debt was sent or
served, on the earliest day on which the Minister can commence an action to collect that tax debt;
and
(b) ends, subject to subsection (9), on the day that is 10 years after the day on which
it begins.
Limitation period
restarted
(6) The limitation period described in subsection (5) for the collection of a tax debt
of a person restarts (and ends, subject to subsection (9), on the day that is 10 years after the day on
which it restarts) on any day, before it would otherwise end, on which
(a) the person acknowledges the tax debt in accordance with subsection (7);
(b) all or part of the tax debt is deemed under section 70 to have been paid;
(c) the Minister commences an action to collect the tax debt; or
(d) the Minister assesses, under this Act, another person in respect of the tax
debt.
Acknowledgement of tax
debts
(7) A person acknowledges a tax debt if the person
(a) promises, in writing, to pay the tax debt;
(b) makes a written acknowledgement of the tax debt, whether or not a promise to pay can
be inferred from the acknowledgement and whether or not it contains a refusal to pay; or
(c) makes a payment, including a purported payment by way of a negotiable instrument
that is dishonoured, on account of the tax debt.
Agent or mandatary or
legal representative
(8) For the purposes of this section, an acknowledgement made by a person’s agent or
mandatary or legal representative has the same effect as if it were made by the person.
Extension of
limitation period
(9) In computing the day on which a limitation period ends, there must be added the
number of days on which one or more of the following is the case:
(a) the Minister has postponed collection action against the person under subsection
(12) in respect of the tax debt;
(b) the Minister has accepted and holds security in lieu of payment of the tax
debt;
(c) if the person was resident in Canada on the applicable date described in paragraph
(5)(a) in respect of the tax debt, the person is non-resident;
(d) the Minister may not, because of any of subsections 139(2) to (5), take any of the actions described in subsection
139(1) in respect of the tax debt; or
(e) an action that the Minister may otherwise take in respect of the tax debt is
restricted or not permitted under any provision of the Bankruptcy
and Insolvency Act, of the Companies’ Creditors
Arrangement Act or of the Farm Debt Mediation
Act.
Assessment before
collection
(10) The Minister may not take any collection action under sections 141 to 146 in respect
of any amount payable by a person that may be assessed under this Act, other than interest under section
82, unless the amount has been assessed.
Payment of
remainder
(11) If the Minister sends a notice of assessment to a person, any amount assessed then
remaining unpaid is payable forthwith by the person to the Receiver General.
Minister may postpone
collection
(12) The Minister may, subject to any terms and conditions that the Minister may
stipulate, postpone collection action against a person in respect of all or any part of any amount assessed
that is the subject of a dispute between the Minister and the person.
Interest on
judgments
(13) If a judgment is obtained for any amount payable under this Act, including a
certificate registered under section 141, the provisions of
this Act by which interest is payable for a failure to pay an amount apply, with any modifications that the
circumstances require, to the failure to pay the judgment debt, and the interest is recoverable in like
manner as the judgment debt.
Litigation
costs
(14) If an amount is payable by a person to Her Majesty in right of Canada because of an
order, judgment or award of a court in respect of the costs of litigation relating to a matter to which this
Act applies, sections 138 and 141 to 147 apply to
the amount as if it were payable under this Act.
Security
138 (1) The Minister may, if the Minister considers it advisable, accept security in an
amount and a form satisfactory to the Minister for the payment of any amount that is or may become payable
under this Act.
Surrender of excess
security
(2) If a person that has given security, or on whose behalf security has been given,
under this section requests in writing that the Minister surrender the security or any part of it, the
Minister must surrender the security to the extent that its value exceeds, at the time the request is
received by the Minister, the amount that is sought to be secured.
Collection
restrictions
139 (1) If a person is liable for the payment of an amount under this Act, the Minister must
not, for the purpose of collecting the amount, take any of the following actions until the end of 90 days
after the date of a notice of assessment under this Act in respect of the amount:
(a) commence legal proceedings in a court;
(b) certify the amount under section 141;
(c) require a person to make a payment under subsection 142(1);
(d) require an institution or a person to make a payment under subsection 142(2);
(e) require a person to turn over moneys under subsection 145(1); or
(f) give a notice, issue a certificate or make a direction under subsection 146(1).
No action after
service of notice of objection
(2) If a person has served a notice of objection under this Act to an assessment of an
amount payable under this Act, the Minister must not, for the purpose of collecting the amount in
controversy, take any of the actions described in subsection (1) until the end of 90 days after the date of
the notice to the person that the Minister has confirmed or varied the assessment.
No action after making
appeal to Tax Court
(3) If a person has appealed to the Tax Court of Canada from an assessment of an amount
payable under this Act, the Minister must not, for the purpose of collecting the amount in controversy, take
any of the actions described in subsection (1) before the earlier of the day on which a copy of the decision
of the Court is mailed to the person and the day on which the person discontinues the appeal.
No action pending
determination by Tax Court
(4) If a person has agreed under subsection 105(1) that a question should be determined by the Tax Court of
Canada, or if a person is served with a copy of an application made under subsection 106(1) to that Court for the determination of a question, the
Minister must not take any of the actions described in subsection (1) for the purpose of collecting that
part of an amount assessed, the liability for payment of which could be affected by the determination of the
question, before the day on which the question is determined by the Court.
Action after
judgment
(5) Despite any other provision in this section, if a person has served a notice of
objection under this Act to an assessment or has appealed to the Tax Court of Canada from an assessment and
agrees in writing with the Minister to delay proceedings on the objection or appeal, as the case may be,
until judgment has been given in another action before the Tax Court of Canada, the Federal Court of Appeal
or the Supreme Court of Canada in which the issue is the same or substantially the same as that raised in
the objection or appeal of the person, the Minister may take any of the actions described in subsection (1)
for the purpose of collecting the amount assessed, or a part of it, determined in a manner consistent with
the judgment of the Court in the other action at any time after the Minister notifies the person in writing
that the judgment has been given by the Court in the other action.
Collection of large
amounts
(6) Despite subsections (1) to (5), if, at any time, the total of all amounts that a
person has been assessed under this Act and that remain unpaid exceeds $1,000,000, the Minister may collect
up to 50% of the total.
Over $10,000,000 —
security
140 (1) The Minister may, by sending a notice to a person, require security in a form
satisfactory to the Minister and in an amount up to a specified amount that is the greater of zero dollars
and the amount that is determined by the formula
[(A/2) – B] –
$10,000,000
where
A is the total of all amounts,
each of which is an amount that the person has been assessed under this Act in respect of which a portion
remains unpaid,
B is the greater of zero
dollars and the amount that is determined by the formula
C – (D/2)
where
C is the total of all amounts
that the person has paid against the amount determined for A in the first formula in this subsection,
and
D is the amount determined
for A in the first formula in this subsection.
When security to be
given
(2) The security required under subsection (1)
(a) must be given to the Minister not later than 60 days after the day on which the
Minister required the security; and
(b) must be in a form satisfactory to the Minister.
Failure to
comply
(3) Despite subsections 139(1) to (5), the
Minister may collect an amount equivalent to the amount of security that was required under subsection (1)
if the security required under that subsection is not given to the Minister as set out in this
section.
Certificates
141 (1) Any amount payable by a person (in this section referred to as the “debtor”) under
this Act that has not been paid as and when required under this Act may be certified by the Minister as an
amount payable by the debtor.
Registration in
court
(2) On production to the Federal Court, a certificate made under subsection (1) in
respect of a debtor must be registered in the Court and when so registered has the same effect, and all
proceedings may be taken on the certificate, as if it were a judgment obtained in the Court against the
debtor for a debt in the amount certified plus interest on the amount as provided under this Act to the day
of payment and, for the purposes of those proceedings, the certificate is deemed to be a judgment of the
Court against the debtor for a debt due to Her Majesty in right of Canada and enforceable as such.
Costs
(3) All reasonable costs and charges incurred or paid for the registration in the
Federal Court of a certificate made under subsection (1) or in respect of any proceedings taken to collect
the amount certified are recoverable in like manner as if they had been included in the amount certified in
the certificate when it was registered.
Charge on
property
(4) A document issued by the Federal Court evidencing a registered certificate in
respect of a debtor, a writ of that Court issued pursuant to the certificate or any notification of the
document or writ (which document, writ or notification is in this section referred to as a “memorial”) may
be filed, registered or otherwise recorded for the purpose of creating a charge, lien or priority on, or a
binding interest in property in a province, or any interest in, or for civil law any right in, such
property, held by the debtor, in the same manner as a document evidencing
(a) a judgment of the superior court of the province against a person for a debt owing
by the person, or
(b) an amount payable or required to be remitted by a person in the province in respect
of a debt owing to Her Majesty in right of the province
may be filed, registered or otherwise recorded in
accordance with the law of the province to create a charge, lien or priority on, or a binding interest in,
the property or interest.
Creation of
charge
(5) If a memorial has been filed, registered or otherwise recorded under subsection
(4),
(a) a charge, lien or priority is created on, or a binding interest is created in,
property in the province, or any interest in, or for civil law any right in, such property, held by the
debtor, or
(b) such property, or interest or right in the property, is otherwise bound,
in the same manner and to the same extent as if
the memorial were a document evidencing a judgment referred to in paragraph (4)(a) or an amount referred to
in paragraph (4)(b), and the charge, lien, priority or binding interest created is subordinate to any
charge, lien, priority or binding interest in respect of which all steps necessary to make it effective
against other creditors were taken before the time the memorial was filed, registered or otherwise
recorded.
Proceedings in respect
of memorial
(6) If a memorial is filed, registered or otherwise recorded in a province under
subsection (4), proceedings may be taken in the province in respect of the memorial, including
proceedings
(a) to enforce payment of the amount evidenced by the memorial, interest on the amount
and all costs and charges paid or incurred in respect of
(i) the filing, registration or other recording of the memorial, and
(ii) proceedings taken to collect the amount,
(b) to renew or otherwise prolong the effectiveness of the filing, registration or other
recording of the memorial,
(c) to cancel or withdraw the memorial wholly or in respect of any of the property, or
interests or rights, affected by the memorial, or
(d) to postpone the effectiveness of the filing, registration or other recording of the
memorial in favour of any right, charge, lien or priority that has been or is intended to be filed,
registered or otherwise recorded in respect of any property, or interest or rights, affected by the
memorial,
in the same manner and to the same extent as if
the memorial were a document evidencing a judgment referred to in paragraph (4)(a) or an amount referred to
in paragraph (4)(b), except that, if in any such proceeding or as a condition precedent to any such
proceeding, any order, consent or ruling is required under the law of the province to be made or given by
the superior court of the province or by a judge or official of the court, a like order, consent or ruling
may be made or given by the Federal Court or by a judge or official of the Federal Court and, when so made
or given, has the same effect for the purposes of the proceeding as if it were made or given by the superior
court of the province or by a judge or official of the court.
Presentation of
documents
(7) If
(a) a memorial is presented for filing, registration or other recording under subsection
(4), or a document relating to the memorial is presented for filing, registration or other recording for the
purpose of any proceeding described in subsection (6), to any official in the land registry system, personal
property or movable property registry system, or other registry system, of a province, or
(b) access is sought to any person, place or thing in a province to make the filing,
registration or other recording,
the memorial or document must be accepted for
filing, registration or other recording or the access must be granted, as the case may be, in the same
manner and to the same extent as if the memorial or document relating to the memorial were a document
evidencing a judgment referred to in paragraph (4)(a) or an amount referred to in paragraph (4)(b) for the
purpose of a like proceeding, except that, if the memorial or document is issued by the Federal Court or
signed or certified by a judge or official of the Court, any affidavit, declaration or other evidence
required under the law of the province to be provided with or to accompany the memorial or document in the
proceedings is deemed to have been provided with or to have accompanied the memorial or document as so
required.
Prohibition — sale,
etc., without consent
(8) Despite any law of Canada or of a province, a sheriff or other person must not,
without the written consent of the Minister, sell or otherwise dispose of any property or publish any notice
or otherwise advertise in respect of any sale or other disposition of any property pursuant to any process
issued or charge, lien, priority or binding interest created in any proceeding to collect an amount
certified in a certificate made under subsection (1), interest on the amount or costs. However, if that
consent is subsequently given, any property that would have been affected by that process, charge, lien,
priority or binding interest if the Minister’s consent had been given at the time that process was issued or
the charge, lien, priority or binding interest was created, as the case may be, is bound, seized, attached,
charged or otherwise affected as it would be if that consent had been given at the time that process was
issued or the charge, lien, priority or binding interest was created, as the case may be.
Completion of notices,
etc.
(9) If information required to be set out by any sheriff or other person in a minute,
notice or document required to be completed for any purpose cannot, because of subsection (8), be so set out
without the written consent of the Minister, the sheriff or other person must complete the minute, notice or
document to the extent possible without that information and, when that consent of the Minister is given, a
further minute, notice or document setting out all the information must be completed for the same purpose,
and the sheriff or other person, having complied with this subsection, is deemed to have complied with this
Act, regulation or rule requiring the information to be set out in the minute, notice or document.
Application for
order
(10) A sheriff or other person that is unable, because of subsection (8) or (9), to
comply with any law or rule of court is bound by any order made by a judge of the Federal Court, on an ex parte application by the Minister, for the purpose of giving
effect to the proceeding, charge, lien, priority or binding interest.
Secured claims
(11) If a charge, lien, priority or binding interest created under subsection (5) by
filing, registering or otherwise recording a memorial under subsection (4) is registered in accordance with
subsection 87(1) of the Bankruptcy and Insolvency Act, it
is deemed
(a) to be a claim that is secured by a security and that, subject to subsection 87(2) of
that Act, ranks as a secured claim under that Act; and
(b) to also be a claim referred to in paragraph 86(2)(a) of that Act.
Details in
certificates and memorials
(12) Despite any law of Canada or of a province, in any certificate in respect of a
debtor, any memorial evidencing a certificate or any writ or document issued for the purpose of collecting
an amount certified, it is sufficient for all purposes
(a) to set out, as the amount payable by the debtor, the total of amounts payable by the
debtor without setting out the separate amounts making up that total; and
(b) to refer to the rate of interest or penalty to be charged on the separate amounts
making up the amount payable in general terms
(i) in the case of interest, as interest at the specified rate under this Act applicable
from time to time on amounts payable to the Receiver General, without indicating the specific rates of
interest to be charged on each of the separate amounts or to be charged for any period, and
(ii) in the case of a penalty, the penalty calculated under section 107 on amounts payable to the Receiver General.
Garnishment
142 (1) If the Minister has knowledge or suspects that a person is, or will be within one
year, liable to make a payment to another person that is liable to pay an amount under this Act (in this
section referred to as a “debtor”), the Minister may, by notice in writing, require the person to pay
without delay, if the money is immediately payable, and in any other case, as and when the money is payable,
the money otherwise payable to the debtor in whole or in part to the Receiver General on account of the
debtor’s liability under this Act.
Garnishment of loans
or advances
(2) Without limiting the generality of subsection (1), if the Minister has knowledge or
suspects that within 90 days
(a) a bank, credit union, trust company or other similar person (in this section
referred to as an “institution”) will loan or advance money to, or make a payment on behalf of, or make a
payment in respect of a negotiable instrument issued by, a debtor that is indebted to the institution and
that has granted security in respect of the indebtedness, or
(b) a person, other than an institution, will loan or advance money to, or make a
payment on behalf of, a debtor that the Minister knows or suspects
(i) is employed by, or is engaged in providing services or property to, that person or
was or will be, within 90 days, so employed or engaged, or
(ii) if that person is a corporation, is not dealing at arm’s length with that
person,
the Minister may, by notice in writing, require
the institution or person, as the case may be, to pay in whole or in part to the Receiver General on account
of the debtor’s liability under this Act the money that would otherwise be so loaned, advanced or
paid.
Effect of
receipt
(3) A receipt issued by the Minister for money paid as required under this section is a
good and sufficient discharge of the original liability to the extent of the payment.
Effect of
requirement
(4) If the Minister has, under this section, required a person to pay to the Receiver
General on account of the liability under this Act of a debtor money otherwise payable by the person to the
debtor as interest, rent, remuneration, a dividend, an annuity or other periodic payment, the requirement
applies to all such payments to be made by the person to the debtor until the liability under this Act is
satisfied and operates to require payments to the Receiver General out of each such payment of any amount
that is stipulated by the Minister in a notice in writing.
Failure to
comply
(5) Every person that fails to comply with a requirement under subsection (1) or (4) is
liable to pay to Her Majesty in right of Canada an amount equal to the amount that the person was required
under that subsection to pay to the Receiver General.
Failure to
comply
(6) Every institution or person that fails to comply with a requirement under subsection
(2) with respect to money to be loaned, advanced or paid is liable to pay to Her Majesty in right of Canada
an amount equal to the lesser of
(a) the total of money so loaned, advanced or paid, and
(b) the amount that the institution or person was required under that subsection to pay
to the Receiver General.
Assessment
(7) The Minister may assess any person for any amount payable under this section by the
person to the Receiver General and, if the Minister sends a notice of assessment, sections 72 and 92 to 106 apply with any modifications that the circumstances
require.
Time limit
(8) An assessment of an amount payable under this section by a person to the Receiver
General is not to be made more than four years after the notice from the Minister requiring the payment was
received by the person.
Effect of payment as
required
(9) If an amount that would otherwise have been advanced, loaned or paid to or on behalf
of a debtor is paid by a person to the Receiver General in accordance with a notice from the Minister issued
under this section or with an assessment under subsection (7), the person is deemed for all purposes to have
advanced, loaned or paid the amount to or on behalf of the debtor.
Recovery by deduction
or set-off
143 If a person is indebted to Her Majesty in right of Canada under this Act, the
Minister may require the retention by way of deduction or set-off of any amount that the Minister may
specify out of any amount that may be or become payable to that person by Her Majesty in right of
Canada.
Acquisition of
debtor’s property
144 For the purpose of collecting debts owed by a person to Her Majesty in right of
Canada under this Act, the Minister may purchase or otherwise acquire any interest in, or for civil law any
right in, the person’s property that the Minister is given a right to acquire in legal proceedings or under
a court order or that is offered for sale or redemption and may dispose of any interest or right so acquired
in any manner that the Minister considers reasonable.
Money seized from
debtor
145 (1) If the Minister has knowledge or suspects that a person is holding money that was
seized by a police officer in the course of administering or enforcing the criminal law of Canada from
another person that is liable to pay any amount under this Act (in this section referred to as the “debtor”)
and that is restorable to the debtor, the Minister may in writing require the person to turn over the money
otherwise restorable to the debtor, in whole or in part, to the Receiver General on account of the debtor’s
liability under this Act.
Receipt of
Minister
(2) A receipt issued by the Minister for money turned over as required under this
section is a good and sufficient discharge of the requirement to restore the money to the debtor to the
extent of the amount so turned over.
Seizure
146 (1) If a person fails to pay an amount as required under this Act, the Minister may in
writing give 30 days notice to the person, addressed to their latest known address, of the Minister’s
intention to direct that the person’s things be seized and disposed of. If the person fails to make the
payment before the expiry of the 30 days, the Minister may issue a certificate of the failure and direct
that the person’s things be seized.
Disposition
(2) Things that have been seized under subsection (1) must be kept for 10 days at the
expense and risk of the owner. If the owner does not pay the amount due together with all expenses within
the 10 days, the Minister may dispose of the things in a manner the Minister considers appropriate in the
circumstances.
Proceeds of
disposition
(3) Any surplus resulting from a disposition, after deduction of the amount owing and
all expenses, must be paid or returned to the owner of the things seized.
Exemptions from
seizure
(4) Any thing of any person in default that would be exempt from seizure under a writ of
execution issued by a superior court of the province in which the seizure is made is exempt from seizure
under this section.
Person leaving Canada
or defaulting
147 (1) If the Minister suspects that a person has left or is about to leave Canada, the
Minister may, before the day otherwise fixed for payment, by notice to the person served personally or sent
by confirmed delivery service addressed to their latest known address, demand payment of any amount for
which the person is liable under this Act or would be so liable if the time for payment had arrived, and the
amount must be paid without delay despite any other provision of this Act.
Seizure
(2) If a person fails to pay an amount required under subsection (1), the Minister may
direct that things of the person be seized, and subsections 146(2) to (4) apply, with any modifications that the circumstances
require.
Definitions
148 (1) The following definitions apply in this section.
assessed period of a person, in respect of an authorization under subsection (2) relating to a
particular reporting period of the person, means
(a) if the hearing date is before the last day of the particular reporting period, the
period beginning on the first day of the particular reporting period and ending on the assessment date;
and
(b) in any other case, the particular reporting period. (période visée)
assessment date, in respect of an authorization under subsection (2), means the day immediately
before the hearing date. (date de cotisation)
hearing date, in respect of an authorization under subsection (2), means the day on which a
judge hears the application for the authorization. (date
d’audience)
Authorization to
assess and take collection action
(2) Despite section 139, if, on ex parte application by the Minister relating to a particular
reporting period of a person, a judge is satisfied that there are reasonable grounds to believe that the net
tax for the period, determined without reference to this section, would be a positive amount and that the
collection of all or any part of that net tax would be jeopardized by a delay in its collection, the judge
must, on any terms that the judge considers reasonable in the circumstances, authorize the Minister to,
without delay,
(a) assess the net tax for the assessed period, determined in accordance with subsection
(3); and
(b) take any of the actions described in sections 141 to 146 in respect
of that amount.
Effect of
authorization
(3) For the purposes of this Act, if an authorization is granted under subsection (2) in
respect of an application relating to a particular reporting period of a person,
(a) if the hearing date is before the last day of the particular reporting period, the
following periods are each deemed to be a separate reporting period of the person:
(i) the assessed period, and
(ii) the period beginning on the hearing date and ending on the last day of the
particular reporting period;
(b) the day on or before which the person is required to file a return under section
55 for the assessed period is deemed to be the hearing
date;
(c) the net tax for the assessed period is deemed to be equal to the amount that would
be the net tax for the period if, on the assessment date, the person were to claim in a return filed under
section 55 for the period all amounts, each of which is an
amount that the person would be entitled on that day to claim as a rebate under Subdivision A of Division 4
of Part 1 or a negative amount that is required to be added in determining the net tax for the
period;
(d) the net tax for the assessed period is deemed to have become due to the Receiver
General on the hearing date;
(e) if, in assessing the net tax for the assessed period, the Minister takes into
account an amount that the person would be entitled to claim as a rebate under Subdivision A of Division 4
of Part 1 or a negative amount that is required to be added in determining the net tax for the period, the
person is deemed to have claimed the amount in a return filed under section 55 for the assessed period; and
(f) sections 82, 107, 116, 117 and 119 apply as
if the net tax for the assessed period were not required to be paid, and the return for that period were not
required to be filed, until the last day of the period described in subsection (9).
Affidavits
(4) Statements contained in an affidavit filed in the context of an application under
this section may be based on belief in which case it must include the grounds for that belief.
Service of
authorization and notice of assessment
(5) An authorization granted under subsection (2) in respect of a person must be served
by the Minister on the person within 72 hours after it is granted, except if the judge orders the
authorization to be served at some other time specified in the authorization, and a notice of assessment for
the assessed period must be served on the person together with the authorization.
How service
effected
(6) For the purpose of subsection (5), service on a person must be effected by personal
service on the person or service in accordance with the directions of a judge.
Application to judge
for direction
(7) If service cannot reasonably be effected as and when required under this section,
the Minister may, as soon as practicable, apply to a judge for further direction.
Review of
authorization
(8) If a judge of a court has granted an authorization under subsection (2) in respect
of a person, the person may, on six clear days notice to the Deputy Attorney General of Canada, apply to a
judge of the court to review the authorization.
Limitation period for
review application
(9) An application by a person under subsection (8) to review an authorization must be
made
(a) within 30 days after the day on which the authorization was served on the person in
accordance with this section; or
(b) within any further time that a judge may allow, on being satisfied that the
application was made as soon as practicable.
Hearing in camera
(10) An application by a person under subsection (8) may, on the application of the
person, be heard in private, if the person establishes to the satisfaction of the judge that the
circumstances of the case justify proceedings heard in private.
Disposition of
application
(11) On an application under subsection (8), the judge must determine the question
summarily and may confirm, vary or set aside the authorization and make any other order that the judge
considers appropriate.
Effect of setting
aside authorization
(12) If an authorization is set aside under subsection (11), subsection (3) does not
apply in respect of the authorization and any assessment made as a result of the authorization is deemed to
be void.
Directions
(13) If any question arises as to the course to be followed in connection with anything
done or being done under this section and there is no relevant direction in this section, a judge may give
any direction with regard to the course to be followed that, in the opinion of the judge, is
appropriate.
No appeal from review
order
(14) No appeal lies from an order of a judge made under subsection (11).
Compliance by
unincorporated bodies
149 (1) If any amount is required to be paid or any other thing is required to be done by or
under this Act by a person (in this section referred to as the “body”) that is not an individual,
partnership, corporation, trust, joint venture, or estate or succession of a deceased individual, it is the
joint and several, or solidary, liability and responsibility of
(a) every member of the body holding office as president, chairperson, treasurer,
secretary or similar officer of the body,
(b) if there are no officers of the body referred to in paragraph (a), every member of
any committee having management of the affairs of the body, and
(c) if there are no officers of the body referred to in paragraph (a) and no committee
referred to in paragraph (b), every member of the body,
to pay that amount or to comply with the
requirement, and if the amount is paid or the requirement is fulfilled by an officer of the body referred to
in paragraph (a), a member of a committee referred to in paragraph (b) or a member of the body, it is
considered as compliance with the requirement.
Assessment
(2) The Minister may assess any person for any amount for which the person is liable
under this section and, if the Minister sends a notice of assessment, sections 72 and 92 to 106 are applicable, with any modifications that the circumstances
require.
Limitation
(3) An assessment of a person under subsection (2) must not
(a) include any amount that the body was liable to pay before the day the person became
jointly and severally, or solidarily, liable;
(b) include any amount that the body became liable to pay after the day the person
ceased to be jointly and severally, or solidarily, liable; or
(c) be made more than two years after the day on which the person ceased to be jointly
and severally, or solidarily, liable unless the person was grossly negligent in the carrying out of any
obligation imposed on the body by or under this Act or made, or participated in, assented to or acquiesced
in the making of, a false statement or omission in a return, application, form, certificate, statement,
invoice or answer made by the body.
Meaning of
transaction
150 (1) In this section, transaction has
the meaning assigned by subsection 68(1).
Tax liability —
transfers not at arm’s length
(2) If at any time a person transfers property, either directly or indirectly, by means
of a trust or by any other means, to
(a) the transferor’s spouse or common-law partner or an individual that has since become
the transferor’s spouse or common-law partner,
(b) an individual that was under 18 years of age, or
(c) another person with whom the transferor was not dealing at arm’s length,
the transferee and transferor are jointly and
severally, or solidarily, liable to pay under this Act an amount equal to the lesser of
(d) the amount determined by the formula
A – B
where
A is the amount, if any, by
which the fair market value of the property at that time exceeds the fair market value at that time of the
consideration given by the transferee for the transfer of the property, and
B is the amount, if any, by
which the amount assessed the transferee under paragraph 97.44(1)(b) of the Customs Act, subsection 325(2) of the Excise Tax Act, subsection 160(2) of the Income Tax Act, subsection 297(3) of the Excise Act, 2001 or subsection 161(3) of the Greenhouse Gas Pollution Pricing Act in respect of the property
exceeds the amount paid by the transferor in respect of the amount so assessed, and
(e) the total of all amounts each of which is
(i) an amount that the transferor is liable to pay under this Act for the reporting
period of the transferor that includes that time or any preceding reporting period of the transferor,
or
(ii) interest or penalty for which the transferor is liable as of that time,
but nothing in this subsection limits the
liability of the transferor under this Act.
Fair market value of
undivided interest
(3) For the purpose of this section, the fair market value at any time of an undivided
interest in a property, expressed as a proportionate interest in that property, is, subject to subsection
(6), deemed to be equal to the same proportion of the fair market value of that property at that
time.
Assessment
(4) The Minister may at any time assess a transferee in respect of any amount payable by
reason of this section, and the provisions of sections 72 and
92 to 106 apply,
with any modifications that the circumstances require.
Rules
applicable
(5) If a transferor and transferee have, by reason of subsection (2), become jointly and
severally, or solidarily, liable in respect of part or all of the liability of the transferor under this
Act, the following rules apply:
(a) a payment by the transferee on account of the transferee’s liability must, to the
extent of the payment, discharge their liability; and
(b) a payment by the transferor on account of the transferor’s liability only discharges
the transferee’s liability to the extent that the payment operates to reduce the transferor’s liability to
an amount less than the amount in respect of which the transferee was, by subsection (2), made jointly and
severally, or solidarily, liable.
Transfers to spouse or
common-law partner
(6) Despite subsection (2), if at any time an individual transfers property to the
individual’s spouse or common-law partner under a decree, order or judgment of a competent tribunal or under
a written separation agreement and, at that time, the individual and the individual’s spouse or common-law
partner were separated and living apart as a result of the breakdown of their marriage or common-law partnership as defined in subsection 248(1) of the
Income Tax Act, for the purposes of paragraph (2)(d), the
fair market value at that time of the property so transferred is deemed to be nil, but nothing in this
subsection limits the liability of the individual under this Act.
Anti-avoidance
rules
(7) For the purposes of this section, if a person transfers property to another person
as part of a transaction or series of transactions, the following rules apply:
(a) the transferor is deemed to not be dealing at arm’s length with the transferee at
the time of the transfer of the property if
(i) the transferor and the transferee do not deal at arm’s length at any time during the
period beginning immediately prior to the transaction or series of transactions and ending immediately after
the transaction or series of transactions, and
(ii) it is reasonable to conclude that one of the purposes of undertaking or arranging
the transaction or series of transactions is to avoid joint and several, or solidary, liability of the
transferee and the transferor under this section for an amount payable under this Act;
(b) an amount that the transferor is liable to pay under this Act (including, for
greater certainty, an amount that the transferor is liable to pay under this section, regardless of whether
the Minister has made an assessment under subsection (4) in respect of that amount) is deemed to have become
payable in the reporting period of the transferor in which the property was transferred, if it is reasonable
to conclude that one of the purposes of the transfer of the property is to avoid the payment of a future
charge debt by the transferor or transferee; and
(c) the amount determined for A in paragraph (2)(d) is deemed to be the greater
of
(i) the amount otherwise determined for A in paragraph (2)(d) without reference to this
paragraph, and
(ii) the amount determined by the formula
A − B
where
A is the fair market value of
the property at the time of the transfer, and
B is the fair market value,
at its lowest at any time during the period beginning immediately prior to the transaction or series of
transactions and ending immediately after the transaction or series of transactions, of the consideration
given by the transferee for the transfer of the property (other than any part of the consideration that is
in a form that is cancelled or extinguished during that period) provided that the consideration is held by
the transferor at that time.
SUBDIVISION L
Evidence and Procedure
Service
151 (1) If the Minister is authorized or required to serve, issue or send a notice or other
document on or to a person that
(a) is a partnership, the notice or document may be addressed to the name of the
partnership;
(b) is a joint venture, the notice or document may be addressed to the name of the joint
venture;
(c) is a union, the notice or document may be addressed to the name of the union;
(d) is a society, club, association, organization or other body, the notice or document
may be addressed to the name of the body; and
(e) carries on business under a name or style other than the name of the person, the
notice or document may be addressed to the name or style under which the person carries on business.
Personal
service
(2) If the Minister is authorized or required to serve, issue or send a notice or other
document on or to a person that carries on a business, the notice or document is deemed to have been validly
served, issued or sent if it is
(a) if the person is a partnership, served personally on one of the partners or left
with an adult person employed at the place of business of the partnership;
(b) if the person is a joint venture, served personally on one of the participants in,
or operators of, the joint venture or left with an adult person employed at the place of business of the
joint venture; or
(c) left with an adult person employed at the place of business of the person.
Timing of
receipt
152 (1) For the purposes of this Act and subject to subsection (2), anything sent by
confirmed delivery service or first class mail is deemed to have been received by the person to which it was
sent on the day it was mailed or sent.
Timing of
payment
(2) A person that is required under this Act to pay an amount is deemed not to have paid
it until it is received by the Receiver General.
Proof of
service
153 (1) If, under this Act, provision is made for sending by confirmed delivery service a
request for information, a notice or a demand, an affidavit of an officer of the Canada Revenue Agency,
sworn before a commissioner or other person authorized to take affidavits, is evidence of the sending and of
the request, notice or demand if the affidavit sets out that
(a) the officer has knowledge of the facts in the particular case;
(b) the request, notice or demand was sent by confirmed delivery service on a specified
day to a specified person and address; and
(c) the officer identifies as exhibits attached to the affidavit a true copy of the
request, notice or demand and
(i) if the request, notice, or demand was sent by registered or certified mail, the post
office certificate of registration of the letter or a true copy of the relevant portion of the certificate,
and
(ii) in any other case, the record that the document has been sent or a true copy of the
relevant portion of the record.
Proof of personal
service
(2) If, under this Act, provision is made for personal service of a request for
information, a notice or a demand, an affidavit of an officer of the Canada Revenue Agency, sworn before a
commissioner or other person authorized to take affidavits, is evidence of the personal service and of the
request, notice or demand if the affidavit sets out that
(a) the officer has knowledge of the facts in the particular case;
(b) the request, notice or demand was served personally on a named day on the person to
whom it was directed; and
(c) the officer identifies as an exhibit attached to the affidavit a true copy of the
request, notice or demand.
Proof of electronic
delivery
(3) If, under this Act, provision is made for sending a notice to a person
electronically, an affidavit of an officer of the Canada Revenue Agency, sworn before a commissioner or
other person authorized to take affidavits, is evidence of the sending and of the notice if the affidavit
sets out that
(a) the officer has knowledge of the facts in the particular case;
(b) the notice was sent electronically to the person on a named day; and
(c) the officer identifies as exhibits attached to the affidavit copies of
(i) an electronic message confirming that the notice has been sent to the person,
and
(ii) the notice.
Proof — failure to
comply
(4) If, under this Act, a person is required to make a return, an application, a
statement, an answer or a certificate, an affidavit of an officer of the Canada Revenue Agency, sworn before
a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the
appropriate records and that, after a careful examination and search of the records, the officer has been
unable to find in a given case that the return, application, statement, answer or certificate has been made
by that person, is evidence that in that case the person did not make the return, application, statement,
answer or certificate.
Proof — time of
compliance
(5) If, under this Act, a person is required to make a return, an application, a
statement, an answer or a certificate, an affidavit of an officer of the Canada Revenue Agency, sworn before
a commissioner or other person authorized to take affidavits, setting out that the officer has charge of the
appropriate records and that, after a careful examination of the records, the officer has found that the
return, application, statement, answer or certificate was filed or made on a particular day, is evidence
that it was filed or made on that day.
Proof of
documents
(6) An affidavit of an officer of the Canada Revenue Agency, sworn before a commissioner
or other person authorized to take affidavits, setting out that the officer has charge of the appropriate
records and that a document attached to the affidavit is a document or true copy of a document, or a
printout of an electronic document, made by or on behalf of the Minister or a person exercising the powers
of the Minister or by or on behalf of a person, is evidence of the nature and contents of the
document.
Proof of
documents
(7) An affidavit of an officer of the Canada Border Services Agency, sworn before a
commissioner or other person authorized to take affidavits, setting out that the officer has charge of the
appropriate records and that a document attached to the affidavit is a document or true copy of a document,
or a printout of an electronic document, made by or on behalf of the Minister of Public Safety and Emergency
Preparedness or a person exercising the powers of that Minister or by or on behalf of a person, is evidence
of the nature and contents of the document.
Proof of no
appeal
(8) An affidavit of an officer of the Canada Revenue Agency or the Canada Border
Services Agency, sworn before a commissioner or other person authorized to take affidavits, setting out that
the officer has charge of the appropriate records and has knowledge of the practice of the Canada Revenue
Agency or the Canada Border Services Agency, as the case may be, and that an examination of the records
shows that a notice of assessment was mailed or otherwise sent to a person on a particular day under this
Act and that, after a careful examination and search of the records, the officer has been unable to find
that a notice of objection or of appeal from the assessment, as the case may be, was received within the
time allowed, is evidence of the statements contained in the affidavit.
Presumption
(9) If evidence is offered under this section by an affidavit from which it appears that
the person making the affidavit is an officer of the Canada Revenue Agency or the Canada Border Services
Agency, it is not necessary to prove the signature of the person or that the person is such an officer, nor
is it necessary to prove the signature or official character of the person before whom the affidavit was
sworn.
Proof of
documents
(10) Every document purporting to have been executed under or in the course of the
administration or enforcement of this Act over the name in writing of the Minister, the Commissioner or an
officer authorized to exercise the powers or perform the duties of the Minister under this Act is deemed to
be a document signed, made and issued by the Minister, the Commissioner or the officer, unless it has been
called into question by the Minister or a person acting for the Minister or for Her Majesty in right of
Canada.
Proof of
documents
(11) Every document purporting to have been executed under or in the course of the
administration or enforcement of this Act over the name in writing of the Minister of Public Safety and
Emergency Preparedness, the President of the Canada Border Services Agency or an officer authorized to
exercise the powers or perform the duties of that Minister under this Act is deemed to be a document signed,
made and issued by that Minister, the President or the officer, unless it has been called into question by
that Minister or a person acting for that Minister or for Her Majesty in right of Canada.
Mailing or sending
date
(12) For the purposes of this Act, if a notice or demand that the Minister is required or
authorized under this Act to send to a person is mailed, or sent electronically, to the person, the day of
mailing or sending, as the case may be, is presumed to be the date of the notice or demand.
Date electronic notice
sent
(13) For the purposes of this Act, if a notice or other communication in respect of a
person, other than a notice or other communication that refers to the business number of a person, is made
available in electronic format such that it can be read or perceived by a person or a computer system or
other similar device, the notice or other communication is presumed to be sent to the person and received by
the person on the date that an electronic message is sent, to the electronic address most recently provided
before that date by the person to the Minister for the purposes of this subsection, informing the person
that a notice or other communication requiring the person’s immediate attention is available in the person’s
secure electronic account. A notice or other communication is considered to be made available if it is
posted by the Minister in the person’s secure electronic account and the person has authorized that notices
or other communications may be made available in this manner and has not before that date revoked that
authorization in a manner specified by the Minister.
Date electronic notice
sent — business account
(14) For the purposes of this Act, a notice or other communication in respect of a person
that is made available in electronic format such that it can be read or perceived by a person or computer
system or other similar device and that refers to the business number of a person is presumed to be sent to
the person and received by the person on the date that it is posted by the Minister in the secure electronic
account in respect of the business number of the person, unless the person has requested at least 30 days
before that date, in a manner specified by the Minister, that such notices or other communications be sent
by mail.
Date assessment
made
(15) If a notice of assessment has been sent by the Minister as required under this Act,
the assessment is deemed to have been made on the day of sending of the notice of assessment.
Proof of return
(16) In a prosecution for an offence under this Act, the production of a return, an
application, a certificate, a statement or an answer required under this Act, purporting to have been filed
or delivered by or on behalf of the person charged with the offence or to have been made or signed by or on
behalf of that person, is evidence that the return, application, certificate, statement or answer was filed
or delivered by or on behalf of that person or was made or signed by or on behalf of that person.
Proof of return —
printouts
(17) For the purposes of this Act, a document presented by the Minister purporting to be
a printout of the information in respect of a person received under section 74 by the Minister is to be received as evidence and, in the
absence of evidence to the contrary, is proof of the return filed by the person under that section.
Proof of return —
production of returns, etc.
(18) In a proceeding under this Act, the production of a return, an application, a
certificate, a statement or an answer required under this Act, purporting to have been filed, delivered,
made or signed by or on behalf of a person, is evidence that the return, application, certificate, statement
or answer was filed, delivered, made or signed by or on behalf of that person.
Evidence
(19) In a prosecution for an offence under this Act, an affidavit of an officer of the
Canada Revenue Agency, sworn before a commissioner or other person authorized to take affidavits, setting
out that the officer has charge of the appropriate records and that an examination of the records shows that
an amount required under this Act to be paid to the Receiver General has not been received by the Receiver
General, is evidence of the statements contained in the affidavit.
DIVISION 3
Regulations
Regulations
154 (1) The Governor in Council may make regulations
(a) prescribing anything that, by this Act, is to be prescribed or is to be determined
or regulated by regulation;
(b) requiring any person to provide any information, including the person’s name,
address and registration number, to any class of persons required to make a return containing that
information;
(c) requiring any person to provide the Minister with the person’s Social Insurance
Number;
(d) requiring any class of persons to make returns respecting any class of information
required in connection with the administration or enforcement of this Act;
(e) distinguishing among any class of persons, property or activities; and
(f) generally to carry out the purposes and provisions of this Act.
Amendments to
schedule
(2) The Governor in Council may, by regulation, amend the schedule including by adding,
deleting, varying or replacing any item in the Schedule or by replacing the Schedule.
Effect
(3) A regulation made under this Act is to have effect from the date it is published in
the Canada Gazette or at such time thereafter as may be
specified in the regulation, unless the regulation provides otherwise and
(a) has a non-tightening effect only;
(b) corrects an ambiguous or deficient enactment that was not in accordance with the
objects of this Act;
(c) is consequential on an amendment to this Act that is applicable before the date the
regulation is published in the Canada Gazette; or
(d) gives effect to a public announcement, in which case the regulation must not, except
if any of paragraphs (a) to (c) apply, have effect before the date that the announcement was made.
Positive or negative
amount — regulations
155 For greater certainty,
(a) in prescribing an amount under subsection 154(1), the Governor in Council may prescribe a positive or
negative amount; and
(b) in prescribing a manner of determining an amount under subsection 154(1), the Governor in Council may prescribe a manner that could
result in a positive or negative amount.
Incorporation by
reference — limitation removed
156 The limitation set out in paragraph 18.1(2)(a) of the Statutory Instruments Act, to the effect that a document must
be incorporated as it exists on a particular date, does not apply to any power to make regulations under
this Act.
Certificates and
registrations not statutory instruments
157 For greater certainty, any registration or certificate issued under this Act is not
a statutory instrument for the purposes of the Statutory
Instruments Act.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
(3) Despite subsection (2), sections 107 to
119 and 121 to 129 of the Select Luxury Items Tax
Act, as enacted by subsection (1), come into force on the
later of the day on which this Act receives royal assent and September 1, 2022.
(4) In
applying subsection (2), the following rules apply:
(a) if a
vendor sells a subject item to a purchaser, within the meaning of section 7 of the Select Luxury Items Tax Act, as enacted by subsection (1), and an agreement between the purchaser
and the vendor for the sale of the subject item is entered into before September 2022, sections 18 and 29 of
that Act, as enacted by subsection (1), apply in respect of the sale if the sale is completed, within the
meaning of that section 7, on or after September 1, 2022 unless the purchaser entered into the agreement in
writing before April 20, 2021 in the course of the vendor’s business of offering for sale that type of
subject item;
(b) section
20 of that Act, as enacted by subsection (1), applies in respect of a subject item if the subject item is
imported on or after September 1, 2022 unless the importer, before April 20, 2021, entered into an agreement
in writing with a vendor for the sale of the subject item in the course of the vendor’s business of offering
for sale that type of subject item;
(c) section
23 of that Act, as enacted by subsection (1), applies to a subject vehicle that is registered with the
Government of Canada or a province, within the meaning of subsection 12(1) of that Act, as enacted by
subsection (1), on or after September 1, 2022;
(d) sections 24 and 25 of that Act, as enacted
by subsection (1), apply to a subject item in respect of which the right to use the subject item is provided
by an owner of the subject item to another person if the other person first has the right to use the subject
item on or after September 1, 2022;
(e) section
26 of that Act, as enacted by subsection (1), applies to a subject item that is used in Canada on or after
September 1, 2022;
(f) section
27 of that Act, as enacted by subsection (1), applies to a subject item if a person that is an owner of the
subject item ceases to be a registered vendor in respect of that type of subject item on or after September
1, 2022;
(g) section
28 of that Act, as enacted by subsection (1), applies to a subject item if a person that is an owner of the
subject item ceases to be a qualifying aircraft user on or after September 1, 2022; and
(h) section
30 of that Act, as enacted by subsection (1), applies to a subject item if tax under any of sections 20 and
23 to 28 of that Act, as enacted by subsection (1), became payable in respect of the subject item on or
after September 1, 2022.
Consequential Amendments
R.S., c. A-1
Access to Information Act
2 (1) Schedule II to the Access to Information Act is amended by adding, in alphabetical
order, a reference to
Select
Luxury Items Tax Act
Loi sur la taxe sur certains biens
de luxe
and a corresponding reference to “section
91”.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
R.S., c. B-3; 1992, c.
27, s. 2
Bankruptcy and Insolvency Act
3 (1) Subsection 149(3) of the
Bankruptcy and Insolvency Act is amended by striking out
“and” at the end of paragraph (f), by adding “and” at the end of paragraph (g) and by adding the following
after that paragraph:
(h) the Select Luxury
Items Tax Act.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
R.S., c. C-46
Criminal Code
4 Paragraph
462.48(2)(c) of the Criminal Code is replaced by the
following:
(c) the type of information or book, record, writing, return or other document obtained
by or on behalf of the Minister of National Revenue for the purposes of Part IX of the Excise Tax Act, the Income Tax Act, the Excise Act, 2001 or the
Select Luxury Items Tax Act to
which access is sought or that is proposed to be examined or communicated; and
R.S., c. E-15
Excise Tax Act
5 (1) Section 77 of the Excise Tax Act is replaced by the following:
Restriction on refunds
and credits
77 A refund shall not be paid, and a credit shall not be allowed, to a person under
this Act until the person has filed with the Minister all returns and other records of which the Minister
has knowledge that are required to be filed under the Excise Tax
Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 or the
Select Luxury Items Tax
Act.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
6 (1) Subsection 229(2) of the Act
is replaced by the following:
Restriction
(2) A net tax refund for a reporting period of a person shall not be paid to the person
under subsection (1) at any time, unless all returns of which the Minister has knowledge and that are
required to be filed at or before that time by the person under this Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the
Select Luxury Items Tax Act
have been filed with the Minister.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
7 (1) Subsection 230(2) of the Act
is replaced by the following:
Restriction
(2) An amount paid on account of net tax for a reporting period of a person shall not be
refunded to the person under subsection (1) at any time, unless all returns of which the Minister has
knowledge and that are required to be filed at or before that time by the person under this Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the
Select Luxury Items Tax Act
have been filed with the Minister.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
8 (1) Subparagraph
238.1(2)(c)(iii) of the Act is replaced by the following:
(iii) all amounts required under this Act (other than this Part), sections 21 and 33 of
the Canada Pension Plan, the Excise Act, the Customs Act, the Income Tax Act, section 82 and Part VII of the Employment Insurance Act, the Customs Tariff, the Excise Act, 2001 and the
Select Luxury Items Tax Act to
be remitted or paid before that time by the registrant have been remitted or paid, and
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
9 (1) Section 263.02 of the Act is
replaced by the following:
Restriction on
rebate
263.02 A rebate under this Part shall not be paid to a person at any time, unless all
returns of which the Minister has knowledge and that are required to be filed at or before that time by the
person under this Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the
Select Luxury Items Tax Act
have been filed with the Minister.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
10 (1) Subsection 296(7) of the
Act is replaced by the following:
Restriction on
refunds
(7) An amount under this section shall not be refunded to a person at any time, unless
all returns of which the Minister has knowledge and that are required to be filed at or before that time by
the person under this Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the
Select Luxury Items Tax Act
have been filed with the Minister.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
R.S., c. F-11
Financial Administration Act
11 (1) Paragraph 155.2(6)(c) of
the Financial Administration Act is replaced by the
following:
(c) an amount owing by a person to Her Majesty in right of Canada, or payable by the
Minister of National Revenue to any person, under the Excise Tax
Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Softwood Lumber Products Export Charge Act, 2006 or the Select Luxury Items Tax Act.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
R.S., c. T-2
Tax Court of Canada Act
12 (1) Subsection 12(1) of the
Tax Court of Canada Act is replaced by the
following:
Jurisdiction
12 (1) The Court has exclusive original jurisdiction to hear and determine references and
appeals to the Court on matters arising under the Canada Pension
Plan, the Cultural Property Export and Import Act,
Part IX of the Excise Tax Act, the Old Age Security Act, the Petroleum and Gas Revenue Tax Act, Part V.1 of the Customs Act, the Income Tax Act, the Employment Insurance Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Softwood Lumber Products Export Charge Act, 2006, the Disability Tax Credit Promoters Restrictions Act, Part 1 of the
Greenhouse Gas Pollution Pricing Act and the Select Luxury Items Tax Act when
references or appeals to the Court are provided for in those Acts.
(2) Subsections 12(3)
and (4) of the Act are replaced by the following:
Further
jurisdiction
(3) The Court has exclusive original jurisdiction to hear and determine questions
referred to it under section 310 or 311 of the Excise Tax
Act, section 97.58 of the Customs Act, section 173
or 174 of the Income Tax Act, section 51 or 52 of the Air Travellers Security Charge Act, section 204 or 205 of the
Excise Act, 2001, section 62 or 63 of the Softwood Lumber Products Export Charge Act, 2006, section 121
or 122 of the Greenhouse Gas Pollution Pricing Act or section 105 or 106 of the Select Luxury Items Tax Act.
Extensions of
time
(4) The Court has exclusive original jurisdiction to hear and determine applications for
extensions of time under subsection 28(1) of the Canada Pension
Plan, section 33.2 of the Cultural Property Export and
Import Act, section 304 or 305 of the Excise Tax
Act, section 97.51 or 97.52 of the Customs Act,
section 166.2 or 167 of the Income Tax Act, subsection
103(1) of the Employment Insurance Act, section 45 or 47 of
the Air Travellers Security Charge Act, section 197 or 199
of the Excise Act, 2001, section 115 or 117 of the Greenhouse Gas Pollution Pricing Act or section 99 or 101 of the Select Luxury Items Tax Act.
(3) Subsections (1) and (2) come into force,
or are deemed to have come into force, on September 1, 2022.
13 (1) Paragraph 18.29(3)(a) of
the Act is amended by striking out “or” at the end of subparagraph (vii), by replacing “and” at the end of
subparagraph (vii) with “or” and by adding the following after subparagraph (viii):
(ix) section 99 or 101 of the Select Luxury Items Tax Act; and
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
14 (1) Subsection 18.31(2) of the
Act is replaced by the following:
Determination of a
question
(2) If it is agreed under section 310 of the Excise Tax Act, section 97.58 of the Customs Act, section 51 of the Air Travellers Security Act, section 204 of the Excise Act, 2001, section 62 of the Softwood Lumber Products Export Act, 2006, section 121 of the
Greenhouse Gas Pollution Pricing Act or section 105 of the Select Luxury Items Tax Act that a
question should be determined by the Court, sections 17.1, 17.2 and 17.4 to 17.8 apply, with any
modifications that the circumstances require, in respect of the determination of the question.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
15 (1) Subsection 18.32(2) of the
Act is replaced by the following:
Provisions applicable
to determination of a question
(2) If an application has been made under section 311 of the Excise Tax Act, section 52 of the Air Travellers Security Charge Act, section 205 of the Excise Act, 2001, section 63 of the Softwood Lumber Products Export Charge Act, 2006, section 122
of the Greenhouse Gas Pollution Pricing Act or section 106 of the Select Luxury Items Tax Act for the
determination of a question, the application or determination of the question must, subject to section
18.33, be determined in accordance with sections 17.1, 17.2 and 17.4 to 17.8, with any modifications that
the circumstances require.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
R.S., c. 1 (2nd
Supp.)
Customs Act
16 (1) Subsection 3(1) of the
Customs Act is replaced by the following:
Duties binding on Her
Majesty
3 (1) All duties or taxes levied on imported goods under the Excise Tax Act, the Special Import Measures Act, the Customs Tariff, the Excise Act, 2001, the
Select Luxury Items Tax Act or
any other law relating to customs are binding on Her Majesty in right of Canada or a province in respect of
any goods imported by or on behalf of Her Majesty.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
17 (1) Section 44 of the Act is
replaced by the following:
Ad
valorem rates of duty
44 If duties, other than duties or taxes levied under the Excise Tax Act, the Excise Act, 2001 or the
Select Luxury Items Tax Act,
are imposed on goods at a percentage rate, such duties shall be calculated by applying the rate to a value
determined in accordance with sections 45 to 55.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
18 (1) Clause 48(5)(b)(ii)(B) of
the Act is replaced by the following:
(B) any duties and taxes paid or payable by reason of the importation of the goods or
sale of the goods in Canada, including, without limiting the generality of the foregoing, any duties or
taxes levied on the goods under the Excise Tax Act, the
Special Import Measures Act, the Customs Tariff, the Excise Act, 2001, the
Select Luxury Items Tax Act or
any other law relating to customs; and
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
19 (1) Subsection 74(1.2) of the
Act is replaced by the following:
Duties
(1.2) The duties that may be refunded under paragraph (1)(f) do not include duties or
taxes levied under the Excise Tax Act, the Special Import Measures Act, the Excise Act, 2001 or the
Select Luxury Items Tax
Act.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
20 (1) The description of B in
paragraph 97.29(1)(a) of the Act is replaced by the following:
B is the amount, if any, by
which the amount assessed the transferee under subsection 325(2) of the Excise Tax Act, subsection 160(2) of the Income Tax Act, subsection 297(3) of the Excise Act, 2001 and subsection 150(4) of the Select Luxury Items Tax Act in respect of
the property exceeds the amount paid by the transferor in respect of the amount so assessed, and
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
21 (1) Paragraph 107(5)(g.1) of
the Act is replaced by the following:
(g.1) an official of the Canada Revenue Agency solely for a purpose relating to the
administration or enforcement of the Canada Pension Plan,
the Excise Act, the Excise Tax Act, the Income Tax Act, the Employment Insurance Act, the Excise Act, 2001 or the
Select Luxury Items Tax
Act;
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
R.S., c. C-53; 1984, c.
17, s. 1
Customs and Excise Offshore Application Act
22 (1) The portion of the
definition federal customs laws in subsection 2(1) of the
Customs and Excise Offshore Application Act after paragraph
(c) is replaced by the following:
that relate to customs or excise, whether those
Acts, regulations or rules come into force before or after June 30, 1983 and, for greater certainty but
without restricting the generality of the foregoing, includes the following Acts, namely, the Excise Act, the Excise Tax Act, the Export and Import Permits Act, the Importation of Intoxicating Liquors Act, the Special Import Measures Act, the Customs Act, the Customs Tariff, the Excise Act, 2001 and the
Select Luxury Items Tax Act;
(législation douanière fédérale)
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
R.S., c. 1 (5th
Supp.)
Income Tax Act
23 (1) Paragraph 18(1)(t) of the
Income Tax Act is amended by striking out “or” at the end
of subparagraph (ii), by adding “or” at the end of subparagraph (iii) and by adding the following after
subparagraph (iii):
(iv) as interest under the Select Luxury Items Tax Act;
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
24 (1) Subsection 164(2.01) of the
Act is replaced by the following:
Withholding of
refunds
(2.01) The Minister shall not, in respect of a taxpayer, refund, repay, apply to other
debts or set-off amounts under this Act at any time unless all returns of which the Minister has knowledge
and that are required to be filed by the taxpayer at or before that time under this Act, the Excise Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the
Select Luxury Items Tax Act
have been filed with the Minister.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
25 (1) The portion of subsection
221.2(2) of the Act before paragraph (a) is replaced by the following:
Re-appropriation of
amounts
(2) If a particular amount
was appropriated to an amount (in this section referred to as the “debt”) that is or may become payable by a
person under this Act, the Excise Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 or the
Select Luxury Items Tax Act,
the Minister may, on application by the person, appropriate the particular amount, or a part of it, to
another amount that is or may become payable under any of those Acts and, for the purposes of any of those
Acts,
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
1985, c. E-20, s. 1;
2001, c. 33, s. 2(F)
Export Development Act
26 (1) Paragraph 24.3(2)(c) of the
Export Development Act is replaced by the following:
(c) to the Minister of National Revenue solely for the purpose of administering or
enforcing the Excise Tax Act, the Income Tax Act or the
Select Luxury Items Tax Act;
or
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
1997, c. 36
Customs Tariff
27 (1) Subsection 94(2) of the
Customs Tariff is replaced by the following:
For greater
certainty
(2) For greater certainty, in sections 95, 96, 98.1 and 98.2, customs duties does not include any duties or taxes levied or
imposed on imported goods under the Excise Tax Act, the
Special Import Measures Act, the Excise Act, 2001 or the
Select Luxury Items Tax
Act.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
1999, c. 17; 2005, c. 38,
s. 35
Canada Revenue Agency Act
28 (1) Paragraph (a) of the
definition program legislation in section 2 of the Canada Revenue Agency Act is replaced by the following:
(a) that the Governor in Council or Parliament authorizes the Minister, the Agency, the
Commissioner or an employee of the Agency to administer or enforce, including
(i) the Excise Act,
(ii) the Excise Tax Act,
(iii) the Customs Act,
(iv) the Income Tax Act,
(v) the Air Travellers Security Charge Act,
(vi) the Excise Act, 2001,
(vii) the Softwood Lumber Products Export Charge Act, 2006,
(viii) the Greenhouse Gas Pollution Pricing Act, and
(ix) the Select Luxury
Items Tax Act; or
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
2002, c. 9, s. 5
Air Travellers Security Charge Act
29 (1) Subsection 40(4) of the
Air Travellers Security Charge Act is replaced by the
following:
Restriction
(4) A refund shall not be paid until the person has filed with the Minister all returns
and other records of which the Minister has knowledge that are required to be filed under this Act, the
Excise Tax Act, the Income Tax Act, the Excise Act, 2001 and the
Select Luxury Items Tax
Act.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
2002, c. 22
Excise Act, 2001
30 (1) Paragraph 188(6)(a) of the
Excise Act, 2001 is replaced by the following:
(a) the Minister under this Act, the Excise
Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act and the Select Luxury Items Tax Act; or
(2) Clause
188(7)(b)(ii)(A) of the Act is replaced by the following:
(A) the Minister under this Act, the Excise
Act, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act and the Select Luxury Items Tax Act, or
(3) Subsections (1) and (2) come into force,
or are deemed to have come into force, on September 1, 2022.
31 (1) Subsection 189(4) of the
Act is replaced by the following:
Restriction
(4) A refund shall not be paid until the person has filed with the Minister or the
Minister of Public Safety and Emergency Preparedness all returns and other records of which the Minister has
knowledge and that are required to be filed under this Act, the Excise Act, the Excise Tax Act, the Customs Act, the Income Tax Act, the Air Travellers Security Charge Act and the Select Luxury Items Tax Act.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
32 (1) The description of B in
paragraph 297(1)(d) of the Act is replaced by the following:
B is the amount, if any, by
which the total of all amounts, if any, the transferee was assessed under subsection 325(2) of the Excise Tax Act, subsection 160(2) of the Income Tax Act or subsection 150(4) of the Select Luxury Items Tax Act in respect of
the property exceeds the amount paid by the transferor in respect of the amounts so assessed, and
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
2005, c. 38
Canada Border Services Agency Act
33 (1) Paragraph (a) of the
definition program legislation in section 2 of the Canada Border Services Agency Act is replaced by the
following:
(a) that the Governor in Council or Parliament authorizes the Minister, the Agency, the
President or an employee of the Agency to administer and enforce, including the Excise Act, the Special Import Measures Act, the Customs Act, the Customs Tariff, the Immigration and Refugee Protection Act, the Excise Act, 2001 and the Select Luxury Items Tax Act;
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
2018, c. 12, s.
186
Greenhouse Gas Pollution Pricing Act
34 (1) Section 51 of the Greenhouse Gas Pollution Pricing Act is replaced by the
following:
Restriction on
rebate
51 A rebate under this Division is not to be paid to a person at any time unless all
returns of which the Minister has knowledge and that are required to be filed at or before that time by the
person under this Part, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the
Select Luxury Items Tax Act
have been filed with the Minister.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
35 (1) Section 54 of the Act is
replaced by the following:
Restriction —
bankruptcy
54 If a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of
the estate or succession of a bankrupt, a rebate under this Part that the bankrupt was entitled to claim
before the appointment must not be paid after the appointment unless all returns required to be filed in respect of the bankrupt under this Part, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the
Select Luxury Items Tax
Act in respect of periods ending before the appointment
have been filed and all amounts required under this Part and those Acts to be paid by the bankrupt in
respect of those periods have been paid.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
36 (1) Subsection 108(7) of the
Act is replaced by the following:
Restriction on
rebates
(7) An amount under this section must not be rebated to a person at any time, unless all
returns of which the Minister has knowledge and that are required to be filed at or before that time by the
person under this Part, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the
Select Luxury Items Tax Act
have been filed with the Minister.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
37 (1) Subsection 109(5) of the
Act is replaced by the following:
Restriction
(5) An amount under this section must not be rebated to a person at any time, unless all
returns of which the Minister has knowledge and that are required to be filed at or before that time by the
person under this Part, the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the
Select Luxury Items Tax Act
have been filed with the Minister.
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
38 (1) The description of B in
paragraph 161(1)(d) of the Act is replaced by the following:
B is the amount, if any, by
which the amount assessed the transferee under subsection 325(2) of the Excise Tax Act, paragraph 97.44(1)(b) of the Customs Act, subsection 160(2) of the Income Tax Act, subsection 297(3) of the Excise Act, 2001 or subsection 150(4) of the Select Luxury Items Tax Act in respect of
the property exceeds the amount paid by the transferor in respect of the amount so assessed, and
(2) Subsection (1) comes into force, or is
deemed to have come into force, on September 1, 2022.
SCHEDULE
(section 1)
SCHEDULE
(Subsections 10(3) and 154(2))
Remote Communities
Ontario
- Attawapiskat First Nation
- Bearskin Lake First Nation
- Cat Lake First Nation
- Deer Lake First Nation
- Eabametoong First Nation
- Fort Albany First Nation
- Fort Severn First Nation
- Kasabonika Lake First Nation
- Kashechewan First Nation
- Keewaywin First Nation
- Kingfisher First Nation
- Kitchenuhmaykoosib Inninuwug First Nation (Big Trout Lake First Nation)
- Marten Falls First Nation
- Muskrat Dam Lake First Nation
- Neskantaga First Nation
- Nibinamik First Nation (Summer Beaver Band)
- North Caribou Lake First Nation (Round Lake First Nation)
- North Spirit Lake First Nation
- Peawanuck
- Pikangikum First Nation
- Poplar Hill First Nation
- Sachigo Lake First Nation
- Sandy Lake First Nation
- Slate Falls First Nation
- Wapekeka First Nation
- Webequie First Nation
- Wunnumin Lake First Nation
Quebec
- Akulivik
- Aupaluk
- Chevery
- Chisasibi
- Eastmain River
- Îles-de-la-Madeleine
- Inukjuak
- Ivujivik
- Kangiqsualujjuaq
- Kangiqsujuaq
- Kangirsuk
- Kuujjuaq
- Kuujjuarapik
- La Romaine
- La Tabatière
- Port-Menier
- Puvirnituq
- Quaqtaq
- Saint-Augustin
- Salluit
- Schefferville
- Tasiujaq
- Tête-à-La-Baleine
- Umiujaq
- Waskaganish
- Wemindji
Manitoba
- Berens River
- Brochet
- Churchill
- Cross Lake
- Elk Island
- God’s Lake Narrows
- God’s River
- Island Lake
- Lac Brochet
- Little Grand Rapids
- Norway House
- Oxford House
- Pauingassi
- Poplar River First Nation
- Pukatawagan
- Red Sucker Lake
- Shamattawa
- South Indian Lake
- St. Theresa Point
- Tadoule Lake
- York Factory First Nation
British Columbia
- Ahousaht
- Alert Bay
- Bella Bella
- Bella Coola
- Dawson’s Landing
- Dease Lake
- Echo Bay
- Ehattesaht
- Fort Nelson
- Fort Ware
- Hartley Bay
- Hot Springs Cove
- Iskut
- Kingcome Village
- Kitasoo
- Kitkatla
- Klemtu
- Kyuquot
- Masset
- Minstrel Island
- Ocean Falls
- Oona River
- Port Simpson (Lax Kw’Alaams)
- Sandspit
- Sullivan Bay
- Telegraph Creek
- Tsay Keh
- Uclucje / Ucluelet
- Wuikinuxv Village
- Yuquot
Saskatchewan
- Camsell Portage
- Fond-du-Lac
- Stony Rapids
- Uranium City
- Wollaston Lake
Alberta
- Chipewyan Lake
- Fort Chipewyan
- Fox Lake
Newfoundland and Labrador
- Black Tickle
- Hopedale
- Makkovik
- Nain
- Natuashish
- Postville
- Rigolet
- Williams Harbour
Yukon
- Beaver Creek
- Burwash Landing
- Carcross
- Carmacks
- Dawson
- Eagle Plains
- Faro
- Fort Selkirk
- Keno
- Mayo
- Old Crow
- Pelly Crossing
- Ross River
- Watson Lake
- Whitehorse
Northwest Territories
- Aklavik
- Colville Lake
- Deline
- Fort Good Hope
- Fort McPherson
- Fort Simpson
- Fort Smith
- Gamèti
- Hay River
- Inuvik
- Lutselk’e
- Nahanni Butte
- Norman Wells
- Paulatuk
- Sachs Harbour
- Sambaa K’e
- Tuktoyaktuk
- Tulita
- Ulukhaktok
- Wekweeti
- Whatì
- Wrigley
Nunavut
- Arctic Bay
- Arviat
- Baker Lake
- Cambridge Bay
- Chesterfield Inlet
- Clyde River
- Coral Harbour
- Gjoa Haven
- Grise Fiord
- Hall Beach (Sanirajak)
- Igloolik
- Iqaluit
- Kinngait
- Kimmirut
- Kugaaruk
- Kuglutuk
- Naujaat
- Pangnirtung
- Pond Inlet
- Qikiqtarjuaq
- Rankin Inlet
- Resolute
- Sanikiluaq
- Taloyoak
- Whale Cove
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