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

Act current to 2016-06-21 and last amended on 2015-08-01. Previous Versions

Application to Crown

Marginal note:Binding on the Crown

 This Part binds Her Majesty in right of Canada or a province.

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

Imposition and Payment of Tax

Marginal note:Imposition of tax

 There shall be imposed, levied and collected a tax at the rate of eleven per cent on the amount charged for a taxable service, payable by the person providing the service at the time the amount charged is paid or payable, whichever is the earlier.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 11, c. 7 (2nd Supp.), s. 8, c. 42 (2nd Supp.), s. 2, c. 12 (4th Supp.), s. 8;
  • 1989, c. 22, s. 2.
Marginal note:Relief from tax for licensee
  •  (1) No tax is payable under section 21.12 in respect of a taxable service provided to a licensee

    • (a) who,

      • (i) in the case of a service described in paragraph (a), (b), (c) or (d) of the definition taxable service in subsection 21.1(1), is acquiring the service for broadcasting without charge or for provision to another person for an amount charged or broadcasting without charge, or

      • (ii) in the case of a service described in paragraph (b), (c) or (d) of that definition, is acquiring the service for use in conjunction with a service referred to in subparagraph (i) that is acquired by the licensee for a use described in that subparagraph; and

    • (b) who, at the time the amount charged for the service is paid or payable, whichever is the earlier, so certifies, and gives his licence number, to the person providing the service.

  • Marginal note:Relief from tax for other persons

    (2) No tax is payable under section 21.12 in respect of a taxable service provided to a person, other than a licensee,

    • (a) who,

      • (i) in the case of a service described in paragraph (a) of the definition taxable service in subsection 21.1(1), is acquiring the service for broadcasting without charge or for provision to another person for broadcasting without charge, or

      • (ii) in the case of a service described in paragraph (b), (c) or (d) of that definition, is acquiring the service for use in conjunction with a service referred to in subparagraph (i) that is acquired by the licensee for a use described in that subparagraph; and

    • (b) who, at the time the amount charged for the service is paid or payable, whichever is the earlier, so certifies to the person providing the service.

  • Marginal note:Relief from tax for small undertaking

    (3) No tax is payable under section 21.12 in respect of a taxable service provided by a small undertaking, other than a taxable service that

    • (a) is provided by a small undertaking within the meaning of paragraph (a) of the definition small undertaking in subsection 21.1(1); and

    • (b) was acquired by the small undertaking from another person, other than a licensee or a small undertaking resident in Canada.

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

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.

Diversions

Marginal note:Diversions
  •  (1) Where, pursuant to subsection 21.13(1) or (2), a taxable service is relieved from tax by reason of the use for which the service is acquired, in this section referred to as the “relieved use”, and that service is subsequently diverted

    • (a) by the person who acquired the service for the relieved use, or

    • (b) where the person referred to in paragraph (a) acquired the service for provision to another person for broadcasting without charge, by that other person,

    to any other use or purpose in respect of which the service would not, at the time of the acquisition of the service for the relieved use, be so relieved, the person who diverted the service and the person who provided the service to him are, from the time of the diversion, jointly and severally liable to pay tax under this Part in respect of the amount charged for the service.

  • Marginal note:Tax payable

    (2) The tax payable pursuant to subsection (1) is payable at the time the service is diverted and shall be computed as the amount of tax that would have been payable at the time of the acquisition of the service for the relieved use had the service not been so relieved.

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

Licences

Marginal note:Application for licence
  •  (1) Subject to this section, every person who is providing a taxable service for an amount charged on the coming into force of this Part shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which this Part comes into force.

  • Marginal note:Idem

    (2) Subject to this section, every person who commences to provide, on or after the coming into force of this Part, a taxable service for an amount charged shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which that person commences to provide the service.

  • Marginal note:Exemption

    (3) Subsections (1) and (2) do not apply to a small undertaking.

  • Marginal note:Exemption lifted

    (4) Every person providing a taxable service for an amount charged who ceases to be a small undertaking shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which that person ceases to be a small undertaking.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. R.S., 1985, c. 15 (1st Supp.), s. 11, c. 7 (2nd Supp.), s. 9.
 
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