Canada Pension Plan (R.S.C., 1985, c. C-8)

Marginal note:Authority to decide questions

• 29 (1) The authority of the Minister or the Tax Court of Canada to decide an appeal under section 27, 27.1 or 28 includes the authority to decide any question of fact or law necessary to be decided in the course of the appeal and to decide whether a person is or may be affected by the decision of the appeal.

• Marginal note:Decisions and rulings final

  (2) Except as otherwise provided in this Act, the decision of the Minister or the Tax Court of Canada of an appeal under section 27, 27.1 or 28 and a ruling of an authorized officer under section 26.1 is final and binding for all purposes of this Act.

• Marginal note:Allowance for attending appeal

  (3) If, on an appeal to the Tax Court of Canada from a decision of the Minister, a person affected by the decision is requested by the Court to attend before it on the consideration of the appeal and so attends, the person shall be paid such travel and other allowances, including compensation for loss of remunerative time, as are approved by the Treasury Board.

DIVISION DCollection of Contributions in Respect of Self-Employed Earnings

Marginal note:Return to be filed

• 30 (1) Where a person is required to make a contribution for a year in respect of self-employed earnings, a return of the person’s self-employed earnings for the year shall, without notice or demand for it, be filed with the Minister in the prescribed form and manner and containing the prescribed information, by that person (or, if the person is unable for any reason to file the return, by their representative) on or before the day on or before which the person’s return of income under Part I of the Income Tax Act is required by that Part to be filed or would be required by that Part to be filed if tax under that Part were payable for the year.

• Marginal note:Demand for return

  (2) Whether or not he is liable to make a contribution for a year in respect of his self-employed earnings and whether or not a return has been filed under subsection (1), every person shall, on demand from the Minister, served personally or by registered letter, file with the Minister in prescribed form and containing prescribed information, within such reasonable time as may be stipulated in the demand, a return of his self-employed earnings for the year designated therein.

• Marginal note:Return by trustee, etc.

  (3) Every trustee in bankruptcy, assignee, liquidator, curator, receiver, trustee or committee and every agent or other person administering, managing, winding-up, controlling or otherwise dealing with the property, business, estate or income of a person who has not filed a return of his self-employed earnings for a year as required by this section shall file with the Minister a return in prescribed form of that person’s self-employed earnings for the year.

• Marginal note:Identification of province of residence

  (4) The prescribed information to be contained in any return of the self-employed earnings of a person for a year required by this section to be filed with the Minister shall identify the province in which that person was resident on the last day of that year.

• Marginal note:Where no return filed within four years

  (5) The amount of any contribution required by this Act to be made by a person for a year in respect of their self-employed earnings for the year is deemed to be zero where

  • (a) the return of those earnings required by this section to be filed with the Minister is not filed with the Minister before the day that is four years after the day on or before which the return is required by subsection (1) to be filed; and

  • (b) the Minister does not assess the contribution before the end of those four years.

Marginal note:Estimate to be made

31 Every person who is required by section 30 to file a return of the person’s self-employed earnings shall in the return estimate the amount of the contributions to be made by the person in respect of those earnings.

Marginal note:Examination of return and notice of assessment

32 The Minister shall, with all due dispatch, examine each return of self-employed earnings and assess the contributions for the year in respect of those earnings and the interest and penalties, if any, payable, and, after the examination, shall send a notice of assessment to the person by whom the return was filed.

Marginal note:Payment of contributions

• 33 (1) If the amount of the contributions required to be made by a person for a year in respect of the person’s self-employed earnings is $40 or less, or a person who is required by this Act to make contributions for a year in respect of the person’s self-employed earnings is not required by section 155 or 156 of the Income Tax Act to pay instalments for that year in respect of the person’s income tax, the person shall, on or before the person’s balance-due day for the year, pay to the Receiver General the whole amount of the contributions.

• Marginal note:Farmers and fishers

  (2) Every person to whom section 155 of the Income Tax Act applies, other than a person to whom subsection (1) applies, shall pay to the Receiver General on or before December 31 in each year, two thirds of

  • (a) the contributions required to be made by the person for the year in respect of the person’s self-employed earnings, as estimated by the person; or

  • (b) the contributions required in respect of the person’s self-employed earnings for the preceding year.

• Marginal note:Other persons

  (3) Every person, other than a person to whom subsection (1) or (2) applies, shall pay to the Receiver General in respect of each year

  • (a) on or before March 15, June 15, September 15 and December 15 in the year, an amount equal to one quarter of

    • (i) the contributions required to be made by the person for the year in respect of the person’s self-employed earnings, as estimated by the person, or

    • (ii) the contributions required in respect of the person’s self-employed earnings for the preceding year; or

  • (b) on or before

    • (i) March 15 and June 15 in the year, an amount equal to one quarter of the contributions required in respect of the person’s self-employed earnings for the second preceding year, and

    • (ii) September 15 and December 15 in the year, an amount equal to one half of the amount, if any, by which

      • (A) the contributions required in respect of the person’s self-employed earnings for the preceding year

      exceeds

      • (B) one half of the contributions required in respect of the person’s self-employed earnings for the second preceding year.

• Marginal note:Payment of remainder of estimated contributions

  (4) A person referred to in subsection (2) or (3) shall also pay to the Receiver General, on or before the person’s balance-due day for the year, the remainder of the contributions as estimated under section 31. However, paragraphs (2)(a) and (b) and (3)(a) and (b) do not require the payment of any amount in respect of the person that would otherwise become due after the person’s death.

Marginal note:Interest on unpaid contributions

• 34 (1) If the amount paid by a person on or before the person’s balance-due day for a year on account of contributions required to be made by the person for the year in respect of the person’s self-employed earnings is less than the amount of the contributions required to be made by the person, interest at a prescribed rate per annum is payable by the person on the difference between those amounts from the balance-due day for the year to the day of payment.

• Marginal note:Interest on instalments

  (2) In addition to any interest payable under subsection (1), if a person, being required by section 33 to pay a part or instalment of the contributions required to be made by the person, has failed to pay all or any part of the contributions as required, the person shall, on payment of the amount that the person failed to pay, pay interest on the amount at a prescribed rate per annum from the day on or before which the person was required to make the payment to the day of payment or the beginning of the period in respect of which the person is liable to pay interest on the amount under subsection (1), whichever is the earlier.

• Marginal note:Limitation for farmers and fishers

  (3) For the purposes of subsection (2), if a person is required by subsection 33(2) to pay a part or instalment of the contributions required to be made by the person in respect of the person’s self-employed earnings, the person is deemed to have been liable to pay on or before the day referred to in subsection 33(2) a part or instalment that is equal to one of the following amounts, whichever gives rise to the least amount required to be paid by the person on or before that day:

  • (a) the contributions required to be made by the person for the year in respect of the person’s self-employed earnings, minus $40;

  • (b) the contributions required in respect of the person’s self-employed earnings for the preceding year;

  • (c) the amount stated to be the amount of the instalment payable by the person for the year in the notice, if any, sent to the person by the Minister.

• Marginal note:Limitation for other persons

  (4) For the purposes of subsection (2), if a person is required by subsection 33(3) to pay a part or instalment of the contributions required to be made by the person in respect of the person’s self-employed earnings, the person is deemed to have been liable to pay on or before each day referred to in subsection 33(3) a part or instalment that is equal to one of the following amounts, whichever gives rise to the least total amount of those parts or instalments required to be paid by the person by that day:

  • (a) the contributions required to be made by the person for the year in respect of the person’s self-employed earnings, minus $40;

  • (b) the contributions required in respect of the person’s self-employed earnings for the preceding year;

  • (c) the amounts determined under paragraph 33(3)(b) in respect of the person for the year;

  • (d) the amounts stated to be the amounts of instalment payable by the person for the year in the notices, if any, sent to the person by the Minister.

Marginal note:Failure to file a return

• 35 (1) Every person who fails to file a return of the person’s self-employed earnings for a year as and when required by section 30 is liable to a penalty of 5% of the part of the amount of the contributions required to be made by the person for the year in respect of the contributions that remained unpaid at the expiration of the time the return was required to be filed, except that, if that person is liable to a penalty under subsection 162(1) or (2) of the Income Tax Act in respect of the year, the Minister may reduce the penalty to which the person is liable under this section or may remit the penalty in whole or in part.

• Marginal note:Idem

  (2) Every person who fails to file a return as required by subsection 30(3) is liable to a penalty of five dollars for each day of default, but not exceeding in all fifty dollars.

Marginal note:Application of Income Tax Act provisions

36 Subject to this Part and except as otherwise provided by regulation, the provisions of Divisions I and J of Part I of the Income Tax Act with respect to payment of tax, assessments, objections to assessments, appeals, interest, penalties and excess refunds, and the provisions of Part XV (except section 221) and subsections 248(7) and (11) of that Act apply, with any modifications that the circumstances require, in relation to any amount paid or payable as or on account of the contributions for a year in respect of self-employed earnings as though that amount were an amount paid or payable as or on account of tax under that Act.

Marginal note:Priority in which payment to be applied

37 If any payment is made by a person to the Minister on account of taxes specified in section 228 of the Income Tax Act and of contributions under this Act in respect of self-employed earnings, despite any direction made by the person making the payment with respect to its application, the part of the payment that would be applied under that section in payment of tax under the Income Tax Act shall be applied in payment of the contributions under this Act and is deemed to be a payment on account of those contributions, and to the extent of the amount so applied shall not discharge liability for tax under the Income Tax Act, and any amount then remaining shall be applied in payment of tax under the Income Tax Act and shall discharge the liability of the person making the payment for that tax to the extent of that amount.

DIVISION EGeneral

Refunds of Overpayments

Marginal note:Refund of overpayment

• 38 (1) If an overpayment has been made by an employee on account of the employee’s contributions under this Act for a year, the Minister must, if application in writing is made to the Minister by the employee not later than four years — or, in the case of an employee who, in respect of a disability pension, is notified after September 1, 2010 of a decision under subsection 60(7) or 81(2), a decision under subsection 82(11) or 83(11) as those subsections read immediately before their repeal or a decision under section 54 or 59 of the Department of Employment and Social Development Act, 10 years — after the end of the year, refund to the employee the amount of the overpayment.

• Marginal note:Refund after decision on appeal

  (2) If an amount on account of contributions is deducted from the remuneration of an employee or is paid by an employer with respect to an employee, and it is decided by a decision on an appeal made under section 27, 27.1 or 28 that the amount exceeds the amount required by this Act to be deducted or paid, the Minister shall refund the excess if the employee or employer applies for it in writing to the Minister not later than 30 days after the decision is communicated to the employee or employer, as the case may be.

• Marginal note:Refund of excess — employee

  (3) Despite anything in this Part, if an employee applies to the Minister and satisfies the Minister that, for any year, the amount deducted from the employee’s remuneration exceeds the contributions for the year required of the employee under section 8, the Minister may refund the amount of the excess. The application must be made within four years — or, in the case of an employee who, in respect of a disability pension, is notified after September 1, 2010 of a decision under subsection 60(7) or 81(2), a decision under subsection 82(11) or 83(11) as those subsections read immediately before their repeal or a decision under section 54 or 59 of the Department of Employment and Social Development Act, 10 years — after the end of the year.

• Marginal note:Refund of amount remitted in excess — employer

  (3.1) Subject to subsection (3.2) but despite any other provision of this Part, if an employer applies to the Minister and satisfies the Minister that, for any year, the amount remitted by the employer as the employer’s contributions with respect to an employee exceeds the contributions for the year required of the employer under section 9 with respect to the employee, the Minister may refund the amount of the excess. The application must be made within four years after the end of the year.

• Marginal note:No refund of employers’ contributions

  (3.2) No refund may be made of any contribution required to be made as an employer’s contribution under section 9.

• Marginal note:Refund — section 21.01 amounts

  (3.3) If an amount remitted by an employer is deemed under section 21.01 not to have been deducted, the Minister may refund that amount to the employer if the employer applies to the Minister for the refund within four years after the end of the year for which the amount was remitted.

• Marginal note:Refund of excess — self-employed person

  (4) If a person has paid, on account of the contributions required to be made by the person for a year in respect of the person’s self-employed earnings, an amount in excess of the contributions, the Minister

  • (a) may refund that part of the amount so paid in excess of the contributions on sending the notice of assessment of the contributions, without any application having been made for the refund; and

  • (b) must make such a refund after sending the notice of assessment, if application is made in writing by the contributor not later than four years — or, in the case of a contributor who, in respect of a disability pension, is notified after September 1, 2010 of a decision under subsection 60(7) or 81(2), a decision under subsection 82(11) or 83(11) as those subsections read immediately before their repeal or a decision under section 54 or 59 of the Department of Employment and Social Development Act, 10 years — after the end of the year.

• Marginal note:Refund after correction of record of earnings

  (4.1) Where an amount on account of a contribution is paid by a person in respect of self-employed earnings or is deducted from the remuneration of an employee and the Minister determines, taking into consideration an amendment made under section 97 to the Record of Earnings, that the amount paid or deducted is in excess of the amount required by this Act to be paid or deducted, the Minister may refund the excess.

• Marginal note:Recovery of amount refunded or credited on liability

  (5) If an application under this section has been made to the Minister for a refund of any amount deducted on account of an employee’s contributions for a year and, whether on the basis of incorrect or incomplete information contained in the application or otherwise, the Minister has refunded an amount to the employee, or applied an amount to a liability of the employee to Her Majesty in right of Canada, in excess of the amount that should have been refunded or applied, the amount of the excess may be recovered at any time from the employee as a debt due to Her Majesty.

• Marginal note:Application of refund to other debts

  (6) Instead of making a refund that might otherwise be made under this section, the Minister may, where the person to whom the refund is payable is liable or about to become liable to make any payment to Her Majesty in right of Canada, apply the amount of the refund to that liability and notify the person of that action.

• Marginal note:Interest on overpayments

  (7) If an amount in respect of an overpayment is refunded or applied under this Act to any other liability, interest shall be paid or applied on the amount at a prescribed rate per annum under the circumstances and for the period or periods determined as prescribed, except that

  • (a) no interest shall be paid or applied if the amount of the interest is less than one dollar; and

  • (b) no interest shall be paid or applied on an amount that is refundable under subsection (4.1).

• Marginal note:Non-application — subsection (7)

  (8) Subsection (7) does not apply in respect of an amount referred to in subsection (3.3) that is refunded or applied under this Act to any other liability.