Excise Act

Marginal note:Penalty and interest

• 110.1 (1) Subject to subsection (2), on default in payment of any duty or penalty payable under this Act within the time prescribed by this Act or the regulations, the person liable to pay that duty or penalty shall pay without delay, in addition to the amount in default,

  • (a) a penalty of one-half of one per cent, in respect of each month or fraction of a month between the expiration of that time and the day on which the total duty, penalty and interest outstanding is paid, calculated on the total duty, penalty and interest outstanding at the beginning of that month; and

  • (b) interest at such rates per annum prescribed under the Income Tax Act for amounts payable by the Minister under that Act as refunds of overpayments of tax to a person that is not a corporation, as are in effect from time to time, in respect of each day between the expiration of that time and the day on which the total duty, penalty and interest outstanding is paid, calculated on the total duty, penalty and interest outstanding on that day.

• Marginal note:Extension of time for payment

  (2) The Minister may, before or after the expiration of the time prescribed by this Act or the regulations for the payment of any duty, extend in writing the time for paying that duty and, where the Minister so extends the time,

  • (a) the duty and interest thereon shall be paid within the time as so extended;

  • (b) interest accrues under subsection (1) in respect of the duty as if the time had not been so extended;

  • (c) no penalty accrues or shall be deemed to have accrued under subsection (1) in respect of the duty before the expiration of the time as so extended; and

  • (d) penalty and interest accrue under subsection (1) in respect of a default in payment of the duty or interest thereon, or any portion thereof, within the time as so extended as if the default were a default referred to in that subsection.