Excise Tax Act (R.S.C., 1985, c. E-15)

Act current to 2014-10-27 and last amended on 2014-06-20. Previous Versions

Determination of Amount Charged in Certain Circumstances

Marginal note:Where service provided to non-arm’s length person
  •  (1) Where a licensee has provided a taxable service to a person with whom the licensee was not dealing at arm’s length at the time of the provision for no amount charged or for an amount charged that was less than the amount charged (in this subsection referred to as the “reasonable charge”) that would have been reasonable in the circumstances if the service had been provided to a person with whom the licensee was dealing at arm’s length, for the purposes of this Part, the licensee shall be deemed to have provided the taxable service to that person for an amount charged equal to the reasonable charge for the service and, where there was no amount charged, the amount charged shall be deemed to be payable at the end of the month in which the service was provided.

  • Marginal note:Where service provided under certain circumstances

    (2) Subject to subsection (1), where a licensee has provided a taxable service to a person and the amount charged for the service cannot be ascertained, for the purposes of this Part, the licensee shall be deemed to have provided the taxable service to that person for an amount charged equal to the amount that is reasonable in the circumstances.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 11, c. 12 (4th Supp.), s. 9.

Security

Marginal note:Security
  •  (1) A small undertaking that proposes to provide a taxable service in respect of which tax is or will be imposed by section 21.12 shall, if required by the Minister, provide security in accordance with subsection (2) for payment of the tax.

  • Marginal note:Amount and form of security

    (2) The security to be provided by a small undertaking pursuant to subsection (1) shall

    • (a) be provided within the time fixed by the Minister, but not later than the day immediately preceding the day on which provision of the taxable service commences;

    • (b) be in an amount of not less than six per cent of

      • (i) the aggregate of the amounts charged for that taxable service by the person from whom the small undertaking acquired the service, or

      • (ii) where the aggregate of the amounts charged for that taxable service by the person from whom the small undertaking acquired the service cannot be determined prior to the commencement of the service by the small undertaking, the aggregate of the amounts that, in accordance with the agreement between the small undertaking and that other person, are paid or payable by the small undertaking for the service, computed as of seven days prior to the commencement of the service or such later day as may be fixed by the Minister; and

    • (c) be provided by a chartered bank or by depositing with the Minister

      • (i) a bond, acceptable to the Minister, of an incorporated guarantee company authorized to do business in Canada, or

      • (ii) a bond or other security of or guaranteed by the Government of Canada.

  • Marginal note:Cancellation of bond

    (3) Notwithstanding that a bond of a guarantee company given under this section has been cancelled, the bond shall be deemed to remain in force in relation to taxable services provided or to be provided for an amount charged at the time of cancellation until all liabilities to pay amounts on account of tax, penalties, interest or other amounts in relation to such taxable services are discharged.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 11.