An Act to implement certain provisions of the budget tabled in Parliament on March 23, 2004 (S.C. 2004, c. 22)
Full Document:
Assented to 2004-05-14
Marginal note:1990, c. 45, s. 12(1)
49. Subsections 313(1) and (2) of the Act are replaced by the following:
Marginal note:Definitions
313. (1) The following definitions apply in this section.
“action”
« action »
“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 provision of this Division.
“legal representative”
« représentant légal »
“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 that belongs or belonged to, or that is or was held for the benefit of, the person or the person's estate.
“tax debt”
« dette fiscale »
“tax debt” means any amount payable or remittable by a person under this Part.
Marginal note:Debts to Her Majesty
(1.1) 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 Part.
Marginal note:Court proceedings
(2) 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 Part, unless when the proceeding is commenced the person has been or may be assessed for that amount.
Marginal note:No actions after limitation period
(2.1) 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.
Marginal note:Limitation period
(2.2) The limitation period for the collection of a tax debt of a person
(a) begins
(i) if a notice of assessment, or a notice referred to in subsection 322(1), in respect of the tax debt, is mailed to or served on the person after March 3, 2004, on the last day on which one of those notices is mailed or served,
(ii) if no notice referred to in subparagraph (i) in respect of the tax debt was mailed or served and the earliest day on which the Minister can commence an action to collect that tax debt is after March 3, 2004, on that earliest day, and
(iii) if subparagraphs (i) and (ii) do not apply and the tax debt was payable on March 4, 2004, or would have been payable on that date but for a limitation period that otherwise applied to the collection of the tax debt, on March 4, 2004; and
(b) ends, subject to subsection (2.6), on the day that is 10 years after the day on which it begins.
Marginal note:Limitation period restarted
(2.3) The limitation period described in subsection (2.2) for the collection of a tax debt of a person restarts (and ends, subject to subsection (2.6), 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 (2.4);
(b) a remittance in respect of the tax debt is deemed under subsection 228(6) to have been made;
(c) a reduction or an offset in respect of the tax debt is made under subsection 228(7);
(d) the Minister commences an action to collect the tax debt; or
(e) the Minister, under paragraph 296(1)(e) or subsection 317(9), 323(4), 324(2) or 325(2), assesses another person in respect of the tax debt.
Marginal note:Acknowledgement of tax debts
(2.4) 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.
Marginal note:Agent or legal representative
(2.5) For the purposes of this section, an acknowledgement made by a person's agent or legal representative has the same effect as if it were made by the person.
Marginal note:Extension of limitation period
(2.6) In computing the day on which a limitation period ends, there shall 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 315(3) 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 (2.2)(a) in respect of the tax debt, the person is nonresident; or
(d) 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.
Marginal note:Bar to claims
(2.7) Despite any law of Canada or a province, Her Majesty in right of Canada is not liable for any claim that arises because the Minister collected a tax debt after the end of any limitation period that applied to the collection of the tax debt and before March 4, 2004.
Marginal note:Orders after March 3, 2004 and before effect
(2.8) Despite any order or judgment made after March 3, 2004 that declares a tax debt not to be payable or remittable by a person, or that orders the Minister to reimburse to a person a tax debt collected by the Minister, because a limitation period that applied to the collection of the tax debt ended before royal assent to any measure giving effect to this section, the tax debt is deemed to have become payable or remittable on March 4, 2004.
R.S., c. 1 (5th Supp.)Income Tax Act
50. Section 222 of the Income Tax Act is replaced by the following:
Marginal note:Definitions
222. (1) The following definitions apply in this section.
“action”
« action »
“action” means an action to collect a tax debt of a taxpayer and includes a proceeding in a court and anything done by the Minister under subsection 129(2), 131(3), 132(2) or 164(2), section 203 or any provision of this Part.
“tax debt”
« dette fiscale »
“tax debt” means any amount payable by a taxpayer under this Act.
Marginal note:Debts to Her Majesty
(2) A tax debt is a debt due to Her Majesty and is recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided by this Act.
Marginal note:No actions after limitation period
(3) 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.
Marginal note:Limitation period
(4) The limitation period for the collection of a tax debt of a taxpayer
(a) begins
(i) if a notice of assessment, or a notice referred to in subsection 226(1), in respect of the tax debt is mailed to or served on the taxpayer, after March 3, 2004, on the day that is 90 days after the day on which the last one of those notices is mailed or served, and
(ii) if subparagraph (i) does not apply and the tax debt was payable on March 4, 2004, or would have been payable on that date but for a limitation period that otherwise applied to the collection of the tax debt, on March 4, 2004; and
(b) ends, subject to subsection (8), on the day that is 10 years after the day on which it begins.
Marginal note:Limitation period restarted
(5) The limitation period described in subsection (4) for the collection of a tax debt of a taxpayer restarts (and ends, subject to subsection (8), 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 taxpayer acknowledges the tax debt in accordance with subsection (6);
(b) the Minister commences an action to collect the tax debt; or
(c) the Minister, under subsection 159(3) or 160(2) or paragraph 227(10)(a), assesses any person in respect of the tax debt.
Marginal note:Acknowledgement of tax debts
(6) A taxpayer acknowledges a tax debt if the taxpayer
(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.
Marginal note:Agent or legal representative
(7) For the purposes of this section, an acknowledgement made by a taxpayer's agent or legal representative has the same effect as if it were made by the taxpayer.
Marginal note:Extension of limitation period
(8) In computing the day on which a limitation period ends, there shall be added the number of days on which one or more of the following is the case:
(a) the Minister may not, because of any of subsections 225.1(2) to (5), take any of the actions described in subsection 225.1(1) 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 taxpayer was resident in Canada on the applicable date described in paragraph (4)(a) in respect of the tax debt, the taxpayer is nonresident; or
(d) 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.
Marginal note:Bar to claims
(9) Notwithstanding any law of Canada or a province, Her Majesty is not liable for any claim that arises because the Minister collected a tax debt after the end of any limitation period that applied to the collection of the tax debt and before March 4, 2004.
Marginal note:Orders after March 3, 2004 and before effect
(10) Notwithstanding any order or judgment made after March 3, 2004 that declares a tax debt not to be payable by a taxpayer, or that orders the Minister to reimburse to a taxpayer a tax debt collected by the Minister, because a limitation period that applied to the collection of the tax debt ended before royal assent to any measure giving effect to this section, the tax debt is deemed to have become payable on March 4, 2004.
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