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

Marginal note:Garnishment

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  113 (1) If the Minister has knowledge or suspects that a person is, or will be within one year, liable to make a payment to another person that is liable to pay an amount under this Act (in this section referred to as a “debtor”), the Minister may, by notice in writing, require the person to pay without delay, if the money is immediately payable, and in any other case, as and when the money becomes payable, the money otherwise payable to the debtor in whole or in part to the Receiver General for Canada on account of the debtor’s liability under this Act.

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  Marginal note:Garnishment of loans or advances

  (2) Without limiting the generality of subsection (1), if the Minister has knowledge or suspects that within 90 days

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    (a) a bank, credit union, trust company or other similar person (in this section referred to as an “institution”) will loan or advance money to, or make a payment on behalf of, or make a payment in respect of a negotiable instrument issued by, a debtor that is indebted to the institution and that has granted security in respect of the indebtedness, or

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    (b) a person, other than an institution, will loan or advance money to, or make a payment on behalf of, a debtor who the Minister knows or suspects

    • (i) is employed by, or is engaged in providing services or property to, that person or was or will be, within 90 days, so employed or engaged, or

    • (ii) if that person is a corporation, is not dealing at arm’s length with that person,

  the Minister may, by notice in writing, require the institution or person, as the case may be, to pay in whole or in part to the Receiver General for Canada on account of the debtor’s liability under this Act the money that would otherwise be so loaned, advanced or paid.

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  Marginal note:Effect of receipt

  (3) A receipt issued by the Minister for money paid as required under this section is a good and sufficient discharge of the original liability to the extent of the payment.

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  Marginal note:Effect of requirement

  (4) If the Minister has, under this section, required a person to pay to the Receiver General for Canada on account of a debtor’s liability under this Act money otherwise payable by the person to the debtor as interest, rent, remuneration, a dividend, an annuity or another periodic payment, the requirement applies to all such payments to be made by the person to the debtor until the liability under this Act is satisfied and the requirement operates to require payments to the Receiver General for Canada out of each such payment of any amount that is specified by the Minister in a notice in writing.

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  Marginal note:Failure to comply

  (5) A person that fails to comply with a requirement under subsection (1) or (4) is liable to pay to His Majesty in right of Canada an amount equal to the amount that the person was required under that subsection to pay to the Receiver General for Canada.

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  Marginal note:Other failures to comply

  (6) An institution or person that fails to comply with a requirement under subsection (2) with respect to money to be loaned, advanced or paid is liable to pay to His Majesty in right of Canada an amount equal to the lesser of

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    (a) the total of money so loaned, advanced or paid, and

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    (b) the amount that the institution or person was required under that subsection to pay to the Receiver General for Canada.

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  Marginal note:Assessment

  (7) The Minister may assess any person for any amount payable under this section by the person to the Receiver General for Canada and, if the Minister sends a notice of assessment, sections 55 and 67 to 82 apply with any modifications that the circumstances require.

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  Marginal note:Time limit

  (8) An assessment of an amount payable under this section by a person to the Receiver General for Canada is not to be made more than four years after the person receives the notice from the Minister requiring the payment.

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  Marginal note:Effect of payment as required

  (9) If an amount that would otherwise have been advanced, loaned or paid to or on behalf of a debtor is paid by a person to the Receiver General for Canada in accordance with a notice from the Minister issued under this section, or with an assessment under subsection (7), the person is deemed for all purposes to have advanced, loaned or paid the amount to or on behalf of the debtor.

Marginal note:Recovery by deduction or set-off

114 If a person is indebted to His Majesty in right of Canada under this Act, the Minister may require the retention by way of deduction or set-off of any amount that the Minister may specify out of any amount that may be or become payable to that person by His Majesty in right of Canada.

Marginal note:Acquisition of debtor’s property

115 For the purpose of collecting debts owed by a person to His Majesty in right of Canada under this Act, the Minister may purchase or otherwise acquire any interest in, or for civil law any right in, the person’s property that the Minister is given a right to acquire in legal proceedings or under a court order or that is offered for sale or redemption and may dispose of any interest or right so acquired in any manner that the Minister considers reasonable.

Marginal note:Money seized from debtor

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  116 (1) If the Minister has knowledge or suspects that a person is holding money that was seized by a police officer, in the course of administering or enforcing the criminal law of Canada, from another person that is liable to pay any amount under this Act (in this section referred to as the “debtor”) and that is restorable to the debtor, the Minister may in writing require the person to turn over the money otherwise restorable to the debtor, in whole or in part, to the Receiver General for Canada on account of the debtor’s liability under this Act.

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  Marginal note:Receipt of Minister

  (2) A receipt issued by the Minister for money turned over as required under this section is a good and sufficient discharge of the requirement to restore the money to the debtor to the extent of the amount so turned over.

Marginal note:Seizure if failure to pay

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  117 (1) If a person fails to pay an amount as required under this Act, the Minister may in writing give 30 days notice to the person, addressed to their latest known address, of the Minister’s intention to direct that the person’s goods and chattels, or moveable property, be seized and disposed of. If the person fails to make the payment before the expiry of the 30 days, the Minister may issue a certificate of the failure and direct that the person’s goods and chattels, or movable property, be seized.

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  Marginal note:Disposition

  (2) Property that has been seized under subsection (1) must be kept for 10 days at the expense and risk of the owner. If the owner does not pay the amount due together with all expenses within the 10 days, the Minister may dispose of the property in a manner that the Minister considers appropriate in the circumstances.

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  Marginal note:Proceeds of disposition

  (3) Any surplus resulting from a disposition, after deduction of the amount owing and all expenses, must be paid or returned to the owner of the property seized.

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  Marginal note:Exemptions from seizure

  (4) Goods and chattels, or moveable property, of any person in default that would be exempt from seizure under a writ of execution issued by a superior court of the province in which the seizure is made is exempt from seizure under this section.

Marginal note:Person leaving Canada

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  118 (1) If the Minister suspects that a person has left or is about to leave Canada, the Minister may, before the day otherwise fixed for payment, by notice to the person served personally or sent by confirmed delivery service addressed to their latest known address, demand payment of any amount for which the person is liable under this Act or would be so liable if the time for payment had arrived, and the amount must be paid without delay despite any other provision of this Act.

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  Marginal note:Seizure

  (2) If a person fails to pay an amount required under subsection (1), the Minister may direct that goods and chattels, or movable property, of the person be seized, and subsections 117(2) to (4) apply, with any modifications that the circumstances require.

Marginal note:Authorization to proceed without delay

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  119 (1) Despite section 110, if, on ex parte application by the Minister, a judge is satisfied that there are reasonable grounds to believe that the collection of all or any part of an amount assessed in respect of a person would be jeopardized by a delay in its collection, the judge must, on any terms that the judge considers reasonable in the circumstances, authorize the Minister to, without delay, take any of the actions referred to in sections 112 to 117 in respect of that amount.

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  Marginal note:Notice of assessment not sent

  (2) An authorization under subsection (1) in respect of an amount assessed in respect of a person may be granted by a judge even if a notice of assessment in respect of that amount has not been sent to the person at or before the time the application is made if the judge is satisfied that the receipt of the notice of assessment by the person would likely further jeopardize the collection of the amount. For the purposes of sections 109, 112, 113, 114, 116 and 117, the amount in respect of which the authorization is granted is deemed to be an amount payable under this Act.

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  Marginal note:Affidavits

  (3) Statements contained in an affidavit of a person filed in the context of an application under this section may be based on belief, in which case the affidavit must include the grounds for that belief.

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  Marginal note:Service of authorization and notice of assessment

  (4) An authorization granted under this section in respect of a person must be served by the Minister on the person within 72 hours after it is granted, unless the judge orders the authorization to be served at some other time specified in the authorization, and, if a notice of assessment has not been sent to the person at or before the time of the application, a notice of assessment for the assessed period must be served on the person together with the authorization.

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  Marginal note:How service effected

  (5) For the purposes of subsection (4), service on a person must be effected by

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    (a) personal service on the person; or

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    (b) service in accordance with the directions, if any, of a judge.

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  Marginal note:Application to judge for direction

  (6) If service on a person cannot reasonably be effected as and when required under this section, the Minister may, as soon as practicable, apply to a judge for further direction.

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  Marginal note:Review of authorization

  (7) If a judge of a court has granted an authorization under this section in respect of a person, the person may, on six clear days notice to the Deputy Attorney General of Canada, apply to a judge of the court to review the authorization.

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  Marginal note:Limitation period for review application

  (8) An application under subsection (7) to review an authorization must be made

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    (a) within 30 days after the day on which the authorization was served on the person in accordance with this section; or

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    (b) within any further time that a judge may allow, on being satisfied that the application was made as soon as practicable.

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  Marginal note:Hearing in camera

  (9) An application under subsection (7) may, on the application of the person, be heard in camera, if the person establishes to the satisfaction of the judge that the circumstances of the case justify in camera proceedings.

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  Marginal note:Disposition of application

  (10) On an application under subsection (7), the judge must determine the question summarily and may confirm, vary or set aside the authorization and make any other order that the judge considers appropriate.

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  Marginal note:Directions

  (11) If any question arises as to the course to be followed in connection with anything done or being done under this section and there is no relevant direction in this section, a judge may give any direction with regard to the course to be followed that the judge considers appropriate.

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  Marginal note:No appeal from review order

  (12) No appeal lies from an order of a judge made under subsection (10).

Marginal note:Service

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  120 (1) If the Minister is authorized or required to serve, issue or send a notice or other document on or to a person that

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    (a) is a partnership, the notice or document may be addressed to the name of the partnership;

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    (b) is a union, the notice or document may be addressed to the name of the union;

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    (c) is a society, club, association, organization or other body, the notice or document may be addressed to the name of the body; and

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    (d) carries on business under a name or style other than the name of the person, the notice or document may be addressed to the name or style under which the person carries on business.

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  Marginal note:Personal service

  (2) If the Minister is authorized or required to serve, issue or send a notice or other document on or to a person that carries on a business, the notice or document is deemed to have been validly served, issued or sent if it is

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    (a) if the person is a partnership, served personally on one of the partners or left with an adult person employed at the place of business of the partnership; or

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    (b) left with an adult person employed at the place of business of the person.