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

Act current to 2016-06-06 and last amended on 2015-08-01. Previous Versions

Marginal note:Elimination of air transportation tax

 No tax shall be imposed, levied or collected on any amount paid or payable for the transportation of a person by air that

  • (a) in the case of tax imposed under subsection 10(1) or 12(1), begins after October 31, 1998; or

  • (b) in the case of tax imposed under subsection 10(2) or 12(2), does not include an emplanement of the person, within the meaning of subsection 13(2.1), before November 1, 1998.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1996, c. 20, s. 104;
  • 1998, c. 21, s. 87.

Licences

Marginal note:Duty to apply for licence
  •  (1) Subject to this section, every certified air carrier, other than an air carrier that provides only air transportation that is exempt from the operation of this Part pursuant to paragraph 21(d), shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part.

  • Marginal note:Granting of licence

    (2) The Minister may grant a licence to any person applying therefor under subsection (1).

  • Marginal note:Cancellation

    (3) The Minister may cancel a licence issued under this Part if, in his opinion, it is no longer required for the purposes of this Part.

  • Marginal note:Application

    (4) Subsection (1) applies only to a certified air carrier that provides air transportation before November 1, 1998.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. E-15, s. 17;
  • R.S., 1985, c. 7 (2nd Supp.), s. 6;
  • 1996, c. 20, s. 105;
  • 1998, c. 21, s. 88.

Collection of Tax

Marginal note:Duty of licensed air carrier
  •  (1) Every licensed air carrier is an agent of the Minister and as such shall, as provided in this section,

    • (a) levy and collect any taxes imposed by this Part for the transportation of a person by air; and

    • (b) make adjustments in or refund any portion of the tax paid on the transportation of a person by air that has not been provided or only partially provided or any tax that has been collected in error by the licensed air carrier.

  • Marginal note:Collection of tax

    (2) The tax imposed by this Part on each amount paid or payable in Canada for transportation of a person by air shall be collected by the licensed air carrier to whom payment for the transportation is made or is owing.

  • Marginal note:Idem

    (3) The tax imposed by this Part on each amount paid or payable outside Canada for transportation of a person by air that is payable by the person at the time when he emplanes on an aircraft at an airport in Canada shall be collected by the licensed air carrier on whose aircraft the person emplanes, in this subsection referred to as the “emplaning air carrier”, except where the air transportation tax has been paid before that time to a licensed air carrier or his agent and evidence of the prepayment of tax is submitted by the person to the emplaning air carrier in a manner and form prescribed by regulation of the Governor in Council.

  • Marginal note:Idem

    (4) In the case of tax imposed by this Part on any amount paid or payable in Canada for transportation of a person by air, where the transportation of a person by air is being provided by several air carriers, one or more of whom are licensed, the tax, where applicable, shall be collected by the licensed air carrier who sells the transportation by air or, if the transportation is not sold by a licensed air carrier, by the first licensed air carrier who provides any part of the transportation.

  • Marginal note:Adjustments and refunds where tax reduced for continuous journey

    (5) Where tax has been reduced pursuant to subsection 13.1(1) in respect of two or more amounts paid or payable at the same time for transportation of a person by air on a continuous journey, no adjustment in or refund of all or any portion of the tax paid shall be made unless all of the tickets purchased at the same time for the transportation are cancelled at the same time.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. E-15, s. 18;
  • R.S., 1985, c. 15 (1st Supp.), s. 8, c. 28 (3rd Supp.), s. 288.
Marginal note:Debt to Her Majesty
  •  (1) Every person who, being required by or pursuant to this Part to collect an air transportation tax, fails to do so as required is liable to Her Majesty for the amount of the tax and that amount is recoverable in the Federal Court or in any other court of competent jurisdiction as a debt due to Her Majesty.

  • Marginal note:Persons deemed agents

    (2) A person who, not being a licensed air carrier, sells in Canada transportation of a person by air that is to be provided in whole or in part by a licensed air carrier is, in respect of the payment for that transportation and for the purposes of this Part, the agent of the first licensed air carrier who provides the transportation by air or any part thereof, as the case may be, and that person shall levy and collect on behalf of that licensed air carrier the taxes imposed by this Part and transmit them to the licensed air carrier.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., c. E-13, s. 16;
  • R.S., c. 10(2nd Supp.), s. 64;
  • 1974-75-76, c. 24, s. 5.

Penalty on Failure to File Return

Marginal note:Monthly return of taxes
  •  (1) Every licensed air carrier that is required by this Part to collect tax shall make each month a true return, in the prescribed form and containing the prescribed information including statistical information relating to any tax not collected by the licensed air carrier during that period by reason of the prepayment thereof, of

    • (a) all amounts collected or collectible by the carrier by way of the tax imposed by this Part in the last preceding month; and

    • (b) all amounts collected, within or outside Canada by the carrier or the carrier’s agent in the last preceding month,

      • (i) by way of the tax imposed by this Part on amounts paid or payable outside Canada for the transportation of a person by air, and

      • (ii) before the time that the person is required by subsection 10(2) or 12(2), as the case may be, to pay the tax.

  • Marginal note:Nil return

    (2) Every licensed air carrier shall, if no amounts have been collected or are collectible as described in subsection (1) in the last preceding month, make a return as required by that subsection stating that fact.

  • Marginal note:Cessation of obligation

    (2.1) No return is required under subsection (2) if the last preceding month is a month after October 31, 1998.

  • Marginal note:Alternate periods for making returns

    (3) Notwithstanding subsections (1) and (2), the Minister may, by regulation,

    • (a) authorize any licensed air carrier to make a return in respect of any accounting period of not less than twenty-one days and not more than thirty-five days;

    • (b) authorize any licensed air carrier to make a return in respect of any period longer than one month but not longer than six months, if the amounts collected or collectible by the carrier by way of the tax imposed by this Part in the last preceding calendar year did not exceed four thousand eight hundred dollars; or

    • (c) authorize any licensed air carrier whose passenger air transportation service is predominantly limited to a seasonal period of operation to make a return in respect of any period longer than one month but not longer than six months, if the amounts collected or collectible by the carrier by way of the tax imposed by this Part in the equivalent period in the last preceding calendar year did not exceed an average of four hundred dollars per month throughout that equivalent period.

  • Marginal note:Date for filing and remittance

    (4) Subject to subsection (8) and sections 20.1 and 79.2, the return required by this section shall be filed and the taxes that are collected or collectible by a licensed air carrier shall be remitted

    • (a) in a case where the return is required to be made in accordance with subsection (1) or (2), not later than the last day of the first month following the month to which the return relates;

    • (b) in a case where the return is authorized to be made in accordance with a regulation made under paragraph (3)(a), not later than the last day of the first authorized accounting period following the end of the accounting period to which the return relates; and

    • (c) in a case where the return is authorized to be made in accordance with a regulation made under paragraph (3)(b) or (c), not later than the last day of the first month following the end of the period to which the return relates.

  • Marginal note:Penalty and interest on default in remitting taxes

    (5) Subject to subsections (6) to (9), a licensed air carrier that defaults in remitting tax within the time prescribed by subsection (4), in addition to the amount in default, shall pay

    • (a) in the case of tax required to be remitted not later than the last day of a month, a penalty of one-half of one per cent and interest at the prescribed rate, in respect of each month or fraction of a month between that day and the day on which the total tax, penalty and interest outstanding is remitted, calculated on the total tax, penalty and interest outstanding in that month or fraction of a month; and

    • (b) in the case of tax required to be remitted not later than the last day of an accounting period, a penalty of one-half of one per cent and interest at the prescribed rate, in respect of each accounting period or fraction of an accounting period between that day and the day on which the total tax, penalty and interest outstanding is remitted, calculated on the total tax, penalty and interest outstanding in that accounting period or fraction of an accounting period.

  • Marginal note:Minimum penalty and interest

    (6) No penalty or interest is payable under subsection (5) if the licensed air carrier remits all taxes collected or collectible by the carrier under this Part and, at the time of the remittance, the total penalty and interest payable is less than ten dollars.

  • Marginal note:Time for paying penalty or interest

    (7) A licensed air carrier that is liable to pay penalty or interest under subsection (5) shall pay the penalty or interest not later than the last day of the month or accounting period in respect of which the penalty or interest was calculated.

  • Marginal note:Extension

    (8) The Minister may, before or after the expiration of the time prescribed by subsection (4), extend in writing the time for filing a return or remitting any tax, and where the Minister so extends the time,

    • (a) the return shall be filed or the tax shall be remitted within the time as so extended;

    • (b) interest accrues under subsection (5) in respect of the tax as if the time had not been so extended;

    • (c) no penalty accrues or shall be deemed to have accrued under subsection (5) in respect of the tax before the expiration of the time as so extended; and

    • (d) penalty accrues under subsection (5) in respect of a default in remitting the tax or any portion thereof within the time as so extended as if the default were a default referred to in that subsection.

  • Marginal note:Security

    (9) Where the Minister holds security under section 80.1 for the remittance of any tax under this Part that is not remitted within the time prescribed by subsection (4),

    • (a) interest accrues under subsection (5) in respect of the tax from the expiration of that time; and

    • (b) penalty accrues under subsection (5) only if the total tax, penalty and interest outstanding, as calculated in respect of each month or accounting period or fraction of a month or accounting period during which the default continues, exceeds the value of the security at the time it is accepted by the Minister and, if accruing, the penalty shall be calculated only on the amount of the excess.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. E-15, s. 20;
  • R.S., 1985, c. 15 (1st Supp.), s. 9, c. 7 (2nd Supp.), s. 7, c. 12 (4th Supp.), s. 5;
  • 1996, c. 20, s. 106;
  • 1998, c. 21, s. 89.
 
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