Jobs and Economic Growth Act (S.C. 2010, c. 12)
Full Document:
Assented to 2010-07-12
76. (1) The Act is amended by adding the following after section 273.1:
Subdivision b.3Information Return for Financial Institutions
Marginal note:Definitions
273.2 (1) The following definitions apply in this section and section 284.1.
“actual amount”
« montant réel »
“actual amount” means any amount that is required to be reported in an information return that a person is required to file under subsection (3) for a fiscal year of the person and that is
(a) a tax amount for the fiscal year or a previous fiscal year of the person; or
(b) an amount calculated using only tax amounts for the fiscal year or a previous fiscal year of the person, unless all of those tax amounts are required to be reported in the information return.
“tax amount”
« montant de taxe »
“tax amount” for a fiscal year of a person means an amount that
(a) is tax paid or payable (other than tax paid or payable under Division II), or is tax that is deemed under this Part to have been paid or become payable, by the person at any time during the fiscal year;
(b) became collectible or was collected, or is deemed under this Part to have become collectible or to have been collected, by the person as or on account of tax under Division II in a reporting period of the person in the fiscal year;
(c) is an input tax credit for a reporting period of the person in the fiscal year;
(d) is an amount that is required to be added or that may be deducted in determining net tax for a reporting period of the person in the fiscal year; or
(e) is required under this Part to be used in calculating or determining any amount described in paragraph (b) or (d), other than
(i) an amount that is consideration for a supply,
(ii) an amount that is the value of property or a service, or
(iii) a percentage.
Marginal note:Reporting institution
(2) For the purposes of this section and section 284.1, a person, other than a prescribed person or a person of a prescribed class, is a reporting institution throughout a fiscal year of the person if
(a) the person is a financial institution at any time in the fiscal year;
(b) the person is a registrant at any time in the fiscal year; and
(c) the total of all amounts each of which is an amount included in computing, for the purposes of the Income Tax Act, the person’s income, or, if the person is an individual, the person’s income from a business, for the last taxation year of the person that ends in the fiscal year, exceeds the amount determined by the formula
$1,000,000 × A/365
where
- A
- is the number of days in the taxation year.
Marginal note:Information return for reporting institution
(3) A reporting institution shall file an information return with the Minister for a fiscal year of the reporting institution in prescribed form containing prescribed information on or before the day that is six months after the end of the fiscal year.
Marginal note:Estimates
(4) Every reporting institution that is required to report, in an information return filed under subsection (3), an amount (other than an actual amount) that is not reasonably ascertainable at the time on or before which the information return is required to be filed shall provide a reasonable estimate of the amount in the information return.
Marginal note:Ministerial exemption
(5) The Minister may exempt any reporting institution or class of reporting institutions from the requirement, under subsection (3), to provide any prescribed information or may allow any reporting institution or class of reporting institutions to provide a reasonable estimate of any actual amount that is required to be reported in an information return under that subsection.
(2) Subsection (1) applies in respect of fiscal years of a person that begin after 2007.
Marginal note:1990, c. 45, s. 12(1)
77. The portion of subsection 281(2) of the Act before paragraph (a) is replaced by the following:
Marginal note:Effect of extension
(2) If the Minister extends the time within which a return of a person is to be filed or information is to be provided by a person,
78. (1) The Act is amended by adding the following after section 284.01:
Marginal note:Failure to report actual amounts
284.1 (1) In addition to any other penalty under this Part, every reporting institution that fails to report an actual amount (other than an actual amount for which the reporting institution is allowed to provide a reasonable estimate pursuant to subsection 273.2(5)) when and as required in an information return required to be filed under subsection 273.2(3), or that misstates such an actual amount in the information return, and that does not exercise due diligence in attempting to report the actual amount is liable to a penalty, for each such failure or misstatement, equal to the lesser of $1,000 and 1% of the absolute value of the difference between the actual amount and
(a) if the reporting institution failed to report the actual amount when and as required, zero; or
(b) if the reporting institution misstated the actual amount, the amount reported by the reporting institution in the information return.
Marginal note:Failure to provide reasonable estimates
(2) In addition to any other penalty under this Part, every reporting institution that fails to provide a reasonable estimate for an amount that is not an actual amount, or for an actual amount for which the reporting institution is allowed to provide a reasonable estimate pursuant to subsection 273.2(5), when and as required in an information return required to be filed under subsection 273.2(3) for a fiscal year and that does not exercise due diligence in attempting to report such a reasonable estimate is liable to a penalty, for each such failure, equal to the lesser of $1,000 and 1% of the total of
(a) all amounts, each of which is an amount that became collectible by the reporting institution, or that was collected by the reporting institution, as or on account of tax under Division II in a reporting period in the fiscal year; and
(b) all amounts, each of which is an amount that the reporting institution claimed as an input tax credit in a return under Division V filed by the reporting institution for a reporting period in the fiscal year.
Marginal note:Waiving or cancelling penalties
(3) The Minister may waive or cancel all or any portion of a penalty payable under this section.
(2) Subsections 284.1(1) and (2) of the Act, as enacted by subsection (1), apply in respect of any amount required to be reported in an information return required under the Act to be filed on or before a particular day that is after June 29, 2010, except that if the particular day is on or before the day on which this Act is assented to, those subsections only apply if the amount is not reported in an information return filed on or before the day that is six months after the day on which this Act is assented to.
Marginal note:1997, c. 10, s. 79(2)
79. (1) Paragraph 298(1)(d) of the Act is replaced by the following:
(d) in the case of an assessment of tax payable by the person under Division IV,
(i) if the tax is payable under section 218.01 or subsection 218.1(1.2), more than seven years after the later of the day on or before which the person was required to file the return in which that tax was required to be reported and the day the return was filed, and
(ii) in any other case, more than four years after the later of the day on or before which the person was required to file the return in which that tax was required to be reported and the day the return was filed;
(2) Subsection (1) applies in respect of tax that becomes payable after November 16, 2005.
80. (1) Section 301 of the Act is amended by adding the following after subsection 301(1.2):
Marginal note:Input tax allocation
(1.21) If a financial institution to which subsection (1.2) does not apply objects to an assessment and the objection relates in any manner to the application of section 141.02, the notice of objection shall
(a) reasonably describe each issue to be decided in respect of that section;
(b) specify in respect of each of those issues 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 financial institution in respect of each of those issues.
Marginal note:1997, c. 10, s. 82(2)
(2) Subsection 301(1.3) of the Act is replaced by the following:
Marginal note:Late compliance
(1.3) Despite subsection (1.2) or (1.21), if a notice of objection filed by a person to which one of those subsections applies does not include the information required by paragraph (1.2)(b) or (c), or (1.21)(b) or (c), as the case may be, 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 those paragraphs shall be deemed to be complied with in respect of the issue if, within 60 days after the request is made, the person submits the information in writing to the Minister.
Marginal note:1997, c. 10, s. 82(2)
(3) The portion of subsection 301(1.4) of the Act before paragraph (b) is replaced by the following:
Marginal note:Limitation on objections
(1.4) Despite subsection (1.1), if a person to which subsection (1.2) or (1.21) applies 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 (3) pursuant to the notice of objection, except where the earlier assessment was made under subsection 274(8) or 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 (1.2) or (1.21) in the notice with respect to that issue; and
- Date modified: