Digital Services Tax Act (S.C. 2024, c. 15, s. 96)

Marginal note:Definitions

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  109 (1) The following definitions apply in this section.

  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 of sections 112 to 117. (action)

  legal representative

  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 similar person, administering, winding up, controlling or otherwise dealing in a representative or fiduciary capacity with any property, business, commercial activity or estate or succession that belongs or belonged to, or that is or was held for the benefit of, the person or the person’s estate or succession. (représentant légal)

  tax debt

  tax debt means any amount payable by a person under this Act. (dette fiscale)

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  Marginal note:Debts to His Majesty

  (2) A tax debt is a debt due to His 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 Act.

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  Marginal note:Court proceedings

  (3) 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 Act unless when the proceeding is commenced the person has been assessed for that amount.

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  Marginal note:No actions after limitation period

  (4) 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.

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  Marginal note:Limitation period

  (5) The limitation period for the collection of a tax debt of a person

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    (a) begins

    • (i) if a notice of assessment in respect of the tax debt, or a notice referred to in subsection 118(1) in respect of the tax debt, is sent to or served on the person, on the day that is 90 days after the day on which the last one of those notices is sent or served, and

    • (ii) if no notice referred to in subparagraph (i) in respect of the tax debt was sent or served, on the earliest day on which the Minister can commence an action to collect that tax debt, and

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    (b) ends, subject to subsection (9), on the day that is 10 years after the day on which it begins.

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  Marginal note:Limitation period restarted

  (6) The limitation period referred to in subsection (5) for the collection of a tax debt of a person restarts (and ends, subject to subsection (9), on the day that is 10 years after the day on which it restarts) on any day, before it would otherwise end, on which

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    (a) the person acknowledges the tax debt in accordance with subsection (7);

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    (b) all or part of the tax debt is reduced by the application of a refund under section 61;

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    (c) the Minister commences an action to collect the tax debt; or

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    (d) the Minister assesses, under this Act, another person in respect of the tax debt.

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  Marginal note:Acknowledgement of tax debts

  (7) A person acknowledges a tax debt if the person

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    (a) promises, in writing, to pay the tax debt;

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    (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

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    (c) makes a payment, including a purported payment by way of a negotiable instrument that is dishonoured, on account of the tax debt.

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  Marginal note:Agent or mandatary or legal representative

  (8) For the purposes of this section, an acknowledgement made by a person’s agent or mandatary or legal representative has the same effect as if it were made by the person.

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  Marginal note:Extension of limitation period

  (9) In computing the day on which a limitation period ends, there must be added the number of days on which one or more of the following is the case:

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    (a) the Minister has postponed the collection action against the person under subsection (11) in respect of the tax debt;

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    (b) the Minister has accepted and holds security in lieu of payment of the tax debt;

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    (c) if the person was resident in Canada on the applicable day referred to in paragraph (5)(a) in respect of the tax debt, the person is non-resident;

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    (d) the Minister may not, because of any of subsections 110(2) to (5), take any of the actions referred to in subsection 110(1) in respect of the tax debt; and

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    (e) 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.

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  Marginal note:Assessment before collection

  (10) The Minister may not take any collection action under sections 112 to 117 in respect of any amount payable by a person that may be assessed under this Act, other than interest under section 56, unless the amount has been or may be assessed.

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  Marginal note:Postponement of collection

  (11) The Minister may, subject to any terms and conditions that the Minister may stipulate, postpone collection action against a person in respect of all or any part of any amount assessed that is the subject of a dispute between the Minister and the person.

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  Marginal note:Interest on judgments

  (12) If a judgment is obtained for any amount payable under this Act, including by the registration of a certificate under section 112, the provisions of this Act under which interest is payable for a failure to pay an amount apply, with any modifications that the circumstances require, to the failure to pay the judgment debt and the interest is recoverable in the same manner as the judgment debt.

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  Marginal note:Litigation costs

  (13) If an amount is payable by a person to His Majesty in right of Canada because of an order, judgment or award of a court in respect of the costs of litigation relating to a matter to which this Act applies, sections 112 to 118 apply to the amount as if it were payable under this Act.

Marginal note:Collection restrictions

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  110 (1) If a person is liable for the payment of an amount under this Act, the Minister must not, for the purpose of collecting the amount, take any of the following actions until the end of 90 days after the date of a notice of assessment issued under this Act in respect of the amount:

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    (a) commence legal proceedings in a court;

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    (b) certify the amount under section 112;

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    (c) require a person to make a payment under subsection 113(1);

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    (d) require an institution (within the meaning of subsection 113(2)) or a person to make a payment under subsection 113(2);

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    (e) require a person to turn over moneys under subsection 116(1); and

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    (f) give a notice, issue a certificate or make a direction under subsection 117(1).

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  Marginal note:No action after service of notice of objection

  (2) If a person has served a notice of objection under this Act to an assessment of an amount payable under this Act, the Minister must not, for the purpose of collecting the amount in controversy, take any of the actions referred to in subsection (1) until the end of 90 days after the date of the notice to the person that the Minister has confirmed or varied the assessment.

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  Marginal note:No action after appeal

  (3) If a person has appealed to the Tax Court of Canada from an assessment of an amount payable under this Act, the Minister must not, for the purpose of collecting the amount in controversy, take any of the actions referred to in subsection (1) before the earlier of the day on which a copy of the decision of the Court is mailed to the person and the day on which the person discontinues the appeal.

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  Marginal note:No action pending determination

  (4) If a person has agreed under subsection 80(1) that a question should be determined by the Tax Court of Canada, or if a person is served with a copy of an application made under subsection 81(1) to that Court for the determination of a question, the Minister must not take any of the actions referred to in subsection (1) for the purpose of collecting that part of an amount assessed, the liability for payment of which could be affected by the determination of the question, before the day on which the question is determined by the Court.

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  Marginal note:Action after judgment

  (5) Despite any other provision of this section, if a person has served a notice of objection under this Act to an assessment or has appealed to the Tax Court of Canada from an assessment and agrees in writing with the Minister to delay proceedings on the objection or appeal, as the case may be, until judgment has been given in another action before the Tax Court of Canada, the Federal Court of Appeal or the Supreme Court of Canada in which the issue is the same, or substantially the same, as that raised in the objection or appeal of the person, the Minister may take any of the actions referred to in subsection (1) for the purpose of collecting the amount assessed, or a part of it, determined in a manner consistent with the judgment of the Court in the other action at any time after the Minister notifies the person in writing that the judgment has been given by the Court in the other action.

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  Marginal note:Collection of large amounts

  (6) Despite subsections (1) to (5), if, at any time, the total of all amounts that a person has been assessed under this Act and that remain unpaid exceeds $1,000,000, the Minister may collect up to 50% of the total.

Marginal note:Security

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  111 (1) The Minister may, if the Minister considers it advisable, accept security in an amount and a form satisfactory to the Minister for the payment of any amount that is or may become payable under this Act.

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  Marginal note:Surrender of excess security

  (2) If a person that has given security, or on whose behalf security has been given, under this section requests in writing that the Minister surrender the security or any part of it, the Minister must surrender the security to the extent that its value exceeds, at the time the request is received by the Minister, the amount that is sought to be secured.

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  Marginal note:Additional security

  (3) The adequacy of security furnished by or on behalf of a person under subsection (1) is to be determined by the Minister, and the Minister may require additional security to be given or maintained from time to time by or on behalf of the person if the Minister determines that the security that has been given or maintained is no longer adequate.

Marginal note:Certificates

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  112 (1) Any amount payable by a person (in this section referred to as the “debtor”) under this Act that has not been paid as and when required under this Act may be certified by the Minister as an amount payable by the debtor.

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  Marginal note:Registration in court

  (2) On production to the Federal Court, a certificate made under subsection (1) in respect of a debtor is to be registered in the Court and, when so registered, has the same effect, and all proceedings may be taken on the certificate as if it were a judgment obtained in the Court against the debtor for a debt in the amount certified plus interest on the amount as provided under this Act to the day of payment and, for the purposes of those proceedings, the certificate is deemed to be a judgment of the Court against the debtor for a debt due to His Majesty in right of Canada and enforceable as such.

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  Marginal note:Costs

  (3) All reasonable costs and charges incurred or paid for the registration in the Federal Court of a certificate made under subsection (1), or in respect of any proceedings taken to collect the amount certified, are recoverable in the same manner as if they had been included in the amount certified in the certificate when it was registered.

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  Marginal note:Charge on property

  (4) A document issued by the Federal Court that is evidence of a registered certificate in respect of a debtor, a writ of that Court issued in accordance with the certificate or any notification of the document or writ (which document, writ or notification is in this section referred to as a “memorial”) may be filed, registered or otherwise recorded for the purpose of creating a charge, lien or priority on, or a binding interest in, property in a province, or any interest in, or for civil law any right in, such property, held by the debtor, in the same manner as a document that is evidence of

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    (a) a judgment of the superior court of the province against a person for a debt owing by the person, or

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    (b) an amount payable or required to be remitted by a person in the province in respect of a debt owing to His Majesty in right of the province

  may be filed, registered or otherwise recorded in accordance with the law of the province to create a charge, lien or priority on, or a binding interest in, the property or interest.

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  Marginal note:Creation of charge

  (5) If a memorial has been filed, registered or otherwise recorded under subsection (4),

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    (a) a charge, lien or priority is created on, or a binding interest is created in, property in the province, or any interest in, or for civil law any right in, such property, held by the debtor, or

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    (b) such property, or interest or right in the property, is otherwise bound,

  in the same manner and to the same extent as if the memorial were a document that is evidence of a judgment referred to in paragraph (4)(a) or an amount referred to in paragraph (4)(b), and the charge, lien, priority or binding interest created is subordinate to any charge, lien, priority or binding interest in respect of which all steps necessary to make it effective against other creditors were taken before the day on which the memorial was filed, registered or otherwise recorded.

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  Marginal note:Proceedings in respect of memorial

  (6) If a memorial is filed, registered or otherwise recorded in a province under subsection (4), proceedings may be taken in the province in respect of the memorial, including proceedings

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    (a) to enforce payment of the amount evidenced by the memorial, interest on the amount and all costs and charges paid or incurred in respect of

    • (i) the filing, registration or other recording of the memorial, and

    • (ii) proceedings taken to collect the amount,

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    (b) to renew or otherwise prolong the effectiveness of the filing, registration or other recording of the memorial,

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    (c) to cancel or withdraw the memorial wholly or in respect of any of the property, or interests or rights, affected by the memorial, or

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    (d) to postpone the effectiveness of the filing, registration or other recording of the memorial in favour of any right, charge, lien or priority that has been or is intended to be filed, registered or otherwise recorded in respect of any property, or interest or rights, affected by the memorial,

  in the same manner and to the same extent as if the memorial were a document that is evidence of a judgment referred to in paragraph (4)(a) or an amount referred to in paragraph (4)(b). However, if in any such proceeding or as a condition precedent to any such proceeding, any order, consent or ruling is required under the law of the province to be made or given by the superior court of the province or by a judge or official of the court, a similar order, consent or ruling may be made or given by the Federal Court or by a judge or official of the Federal Court and, when so made or given, has the same effect for the purposes of the proceeding as if it were made or given by the superior court of the province or by a judge or official of the court.

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  Marginal note:Presentation of documents

  (7) If

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    (a) a memorial is presented for filing, registration or other recording under subsection (4), or a document relating to the memorial is presented for filing, registration or other recording for the purpose of any proceeding referred to in subsection (6), to any official in the land registry system, personal property or movable property registry system, or other registry system, of a province, or

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    (b) access is sought to any person, place or thing in a province to make the filing, registration or other recording,

  the memorial or document must be accepted for filing, registration or other recording or the access must be granted, as the case may be, in the same manner and to the same extent as if the memorial or document relating to the memorial were a document that is evidence of a judgment referred to in paragraph (4)(a) or an amount referred to in paragraph (4)(b) for the purpose of a similar proceeding. However, if the memorial or document is issued by the Federal Court or signed or certified by a judge or official of the Court, any affidavit, declaration or other evidence required under the law of the province to be provided with or to accompany the memorial or document in the proceedings is deemed to have been provided with or to have accompanied the memorial or document as so required.

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  Marginal note:Prohibition — sale, etc., without consent

  (8) Despite any other law of Canada or law of a province, a sheriff or other person must not, without the written consent of the Minister, sell or otherwise dispose of any property or publish any notice or otherwise advertise in respect of any sale or other disposition of any property as a result of any process issued or charge, lien, priority or binding interest created in any proceeding to collect an amount certified in a certificate made under subsection (1), interest on the amount or costs. However, if that consent is subsequently given, any property that would have been affected by that process, charge, lien, priority or binding interest if the Minister’s consent had been given at the time the process was issued or the charge, lien, priority or binding interest was created, as the case may be, is to be bound, seized, attached, charged or otherwise affected as it would have been if that consent had been given at the time that process was issued or the charge, lien, priority or binding interest was created, as the case may be.

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  Marginal note:Completion of notices, etc.

  (9) If information required to be set out by any sheriff or other person in a minute, notice or document required to be completed for any purpose cannot, because of subsection (8), be so set out without the written consent of the Minister, the sheriff or other person must complete the minute, notice or document to the extent possible without that information and, when that consent of the Minister is given, a further minute, notice or document setting out all the information must be completed for the same purpose, and the sheriff or other person, having complied with this subsection, is deemed to have complied with the Act, regulation or rule requiring the information to be set out in the minute, notice or document.

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  Marginal note:Application for order

  (10) A sheriff or other person who is unable, because of subsection (8) or (9), to comply with any law or rule of court is bound by any order made by a judge of the Federal Court, on an ex parte application by the Minister, for the purpose of giving effect to the proceeding, charge, lien, priority or binding interest.

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  Marginal note:Deemed security

  (11) If a charge, lien, priority or binding interest created under subsection (5) by filing, registering or otherwise recording a memorial under subsection (4) is registered in accordance with subsection 87(1) of the Bankruptcy and Insolvency Act, it is deemed

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    (a) to be a claim that is secured by a security and that, subject to subsection 87(2) of that Act, ranks as a secured claim under that Act; and

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    (b) to also be a claim referred to in paragraph 86(2)(a) of that Act.

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  Marginal note:Details in certificates and memorials

  (12) Despite any other law of Canada or a province, in any certificate made under subsection (1) in respect of a debtor, any memorial that is evidence of a certificate or any writ or document issued for the purpose of collecting an amount certified, it is sufficient for all purposes

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    (a) to set out, as the amount payable by the debtor, the total of amounts payable by the debtor without setting out the separate amounts making up that total; and

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    (b) to refer to the rate of interest to be charged on the separate amounts making up the amount payable in general terms as interest at the rate prescribed by regulation applicable from time to time on amounts payable to the Receiver General for Canada, without indicating the specific rates of interest to be charged on each of the separate amounts or to be charged for any period.