Short Title

Marginal note:Short title

1 This Act may be cited as the Excise Tax Act.

Interpretation

Marginal note:Definitions

• 2 (1) The following definitions apply in this section, Parts I to VIII (other than section 121) and Schedules I to IV:

  accredited representative

  accredited representative [Repealed, 2002, c. 22, s. 366]

  Agency

  Agence

  Agency means the Canada Revenue Agency continued by subsection 4(1) of the Canada Revenue Agency Act; (Agence)

  Atlantic manufactured tobacco

  Atlantic manufactured tobacco[Repealed, 2001, c. 16, s. 16]

  bank

  banque

  bank means a bank or an authorized foreign bank within the meaning of section 2 of the Bank Act; (banque)

  black stock

  black stock[Repealed, 2002, c. 22, s. 413]

  black stock cigarettes

  black stock cigarettes[Repealed, 2002, c. 22, s. 413]

  black stock manufactured tobacco

  black stock manufactured tobacco[Repealed, 2001, c. 16, s. 16]

  cigar

  cigar[Repealed, 2002, c. 22, s. 366]

  cigarette

  cigarette [Repealed, 2002, c. 22, s. 366]

  Commissioner

  commissaire

  Commissioner means the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act; (commissaire)

  cosmetics

  cosmétiques

  cosmetics means goods, whether possessing therapeutic or prophylactic properties or not, commonly or commercially known as toilet articles, preparations or cosmetics, that are intended for use or application for toilet purposes, or for use in connection with the care of the human body, including the hair, nails, eyes, teeth, or any other part or parts thereof, whether for cleansing, deodorizing, beautifying, preserving or restoring, and includes toilet soaps, shaving soaps and shaving creams, skin creams and lotions, shampoos, mouth washes, oral rinses, toothpastes, tooth powders, denture creams and adhesives, antiseptics, bleaches, depilatories, perfumes, scents and similar preparations; (cosmétiques)

  diesel fuel

  combustible diesel

  diesel fuel includes any fuel oil that is suitable for use in internal combustion engines of the compression-ignition type, other than any such fuel oil that is intended for use and is actually used as heating oil; (combustible diesel)

  document

  document

  document includes money, a security and a record; (document)

  duty free shop

  boutique hors taxes

  duty free shop has the meaning assigned by subsection 2(1) of the Customs Act; (boutique hors taxes)

  foreign duty free shop

  boutique hors taxes à l’étranger

  foreign duty free shop means a retail store that is located in a country other than Canada and that is authorized under the laws of that country to sell goods free of certain duties and taxes to individuals who are about to leave that country; (boutique hors taxes à l’étranger)

  foreign ships’ stores

  provisions de bord à l’étranger

  foreign ships’ stores means tobacco products taken on board a vessel or aircraft while the vessel or aircraft is outside Canada and that are intended for consumption by or sale to the passengers or crew while the passengers and crew are on board the vessel or aircraft; (provisions de bord à l’étranger)

  gasoline

  essence

  gasoline means gasoline type fuels for use in internal combustion engines other than aircraft engines; (essence)

  health goods

  marchandises relatives à la santé

  health goods means any material, substance, mixture, compound or preparation, of whatever composition or in whatever form, sold or represented for use in the diagnosis, treatment, mitigation or prevention of a disease, a disorder, an abnormal physical state or the symptoms thereof in human beings or animals or for use in restoring, correcting or modifying organic functions in human beings or animals; (marchandises relatives à la santé)

  Indian

  Indian[Repealed, 2002, c. 22, s. 413]

  licensed tobacco manufacturer

  licensed tobacco manufacturer[Repealed, 2001, c. 16, s. 16]

  manufactured tobacco

  manufactured tobacco[Repealed, 2002, c. 22, s. 366]

  manufacturer or producer

  fabricant ou producteur

  manufacturer or producer includes

  • (a) the assignee, trustee in bankruptcy, liquidator, executor, liquidator of a succession or curator of any manufacturer or producer and, generally, any person who continues the business of a manufacturer or producer or disposes of his assets in any fiduciary capacity, including a bank exercising any powers conferred upon it by the Bank Act and a trustee for bondholders,

  • (b) any person, firm or corporation that owns, holds, claims or uses any patent, proprietary, sales or other right to goods being manufactured, whether by them, in their name or for or on their behalf by others, whether that person, firm or corporation sells, distributes, consigns or otherwise disposes of the goods or not,

  • (c) any department of the government of Canada or any province, any board, commission, railway, public utility, manufactory, company or agency owned, controlled or operated by the government of Canada or any province, or under the authority of the legislature or the lieutenant governor in council of any province, that manufactures or produces taxable goods,

  • (d) any person who sells, otherwise than in a retail store exclusively and directly to consumers, cosmetics that were not manufactured by him in Canada, other than a person who sells those cosmetics exclusively and directly to hairstylists, cosmeticians and other similar users for use in the provision of personal grooming services and not for resale,

  • (e) [Repealed, R.S., 1985, c. 12 (4th Supp.), s. 1]

  • (f) any person who, by himself or through another person acting for him, prepares goods for sale by assembling, blending, mixing, cutting to size, diluting, bottling, packaging or repackaging the goods or by applying coatings or finishes to the goods, other than a person who so prepares goods in a retail store for sale in that store exclusively and directly to consumers,

  • (g) any person who imports into Canada new motor vehicles designed for highway use, or chassis therefor,

  • (h) any person who sells, otherwise than predominantly to consumers, new motor vehicles designed for highway use, or chassis therefor,

  • (i) any person who sells goods enumerated in Schedule III.1, other than a person who sells those goods exclusively and directly to consumers, and

  • (j) any person who sells or leases prerecorded video cassettes that are new or have not been used in Canada, other than a person who sells or leases such goods exclusively and directly to consumers other than to consumers who lease such goods to other persons; (fabricant ou producteur)

  Minister

  ministre

  Minister means the Minister of National Revenue; (ministre)

  mobile home

  maison mobile

  mobile home means a trailer unit not less than three metres wide by eight metres long, equipped with complete plumbing, electrical and heating facilities and designed to be towed on its own chassis to a building site for installation on a foundation and connection to service facilities at that site and to be used for residential, commercial, educational, institutional or industrial purposes, but does not include any free-standing appliances or furniture sold with the unit or any travel trailer, motor home, camping trailer or other vehicle or trailer for recreational use; (maison mobile)

  modular building unit

  bâtiment modulaire

  modular building unit means a building component or unit, the manufacture and assembly of which is completed or substantially completed before delivery to a construction site, that is designed for installation on a foundation and is composed of at least one room or area with finished walls, a finished floor and a finished ceiling, including installed plumbing, heating and electrical equipment appropriate to that room or area, and that, when installed on a foundation at the site, with or without other similarly manufactured and assembled components or units, forms a complete residential, commercial, educational, institutional or industrial building, but does not include any freestanding appliances or furniture sold with the unit; (bâtiment modulaire)

  municipality

  municipalité

  municipality means

  • (a) an incorporated city, town, village, metropolitan authority, township, district, county or rural municipality or other incorporated municipal body however designated, or

  • (b) such other local authority as the Minister may determine to be a municipality for the purposes of this Act; (municipalité)

  operator

  exploitant

  operator of a duty free shop means the person operating the duty free shop who is licensed as a wholesaler under Part VI and is deemed by subsection 55(2) to be a bona fide wholesaler or jobber; (exploitant)

  person

  personne

  person means an individual, partnership, corporation, trust, estate, or a body that is a society, union, club, association, commission or other organization of any kind whatever; (personne)

  prescribed

  prescrit

  prescribed means

  • (a) in the case of a form, the information to be given on a form or the manner of filing a form, prescribed by the Minister, and

  • (b) in any other case, prescribed by regulation or determined in accordance with rules prescribed by regulation; (prescrit)

  record

  registre

  record includes an account, an agreement, a book, a chart or table, a diagram, a form, an image, an invoice, a letter, a map, a memorandum, a plan, a return, a statement, a telegram, a voucher, and any other thing containing information, whether in writing or in any other form; (registre)

  stamp or excise stamp

  timbre ou timbre d’accise

  stamp or excise stamp means a stamp prepared for the purposes of this Act pursuant to a direction of the Minister under section 60; (timbre ou timbre d’accise)

  telecommunication

  telecommunication[Repealed, 1993, c. 38, s. 86]

  this Act

  présente loi

  this Act means this Act except Part IX and Schedules V to X. (présente loi)

  tobacco stick

  tobacco stick [Repealed, 2002, c. 22, s. 366]

• Marginal note:Application to territories

  (2) For the purposes of this Act, the expression "Her Majesty in right of a province" includes the governments of Yukon, the Northwest Territories and Nunavut and the expression "legislature of any province" includes the Council of the Northwest Territories and the Legislative Assembly of Yukon or Nunavut.

• Marginal note:Arm’s length

  (2.1) For the purposes of this Act,

  • (a) related persons shall be deemed not to deal with each other at arm’s length; and

  • (b) it is a question of fact whether persons not related to each other were, at any particular time, dealing with each other at arm’s length.

• Marginal note:Related persons

  (2.2) For the purposes of this Act, persons are related to each other if they are related persons within the meaning of subsections 251(2) to (6) of the Income Tax Act, except that

  • (a) references in those subsections to “corporation” shall be read as references to “corporation or partnership”; and

  • (b) references in those subsections to “shares” or “shareholders” shall, in respect of a partnership, be read as references to “rights” or “partners”, respectively.

• Marginal note:Importer deemed manufacturer or producer

  (3) For the purposes of this Act, a person who is a manufacturer or producer within the meaning of paragraph (d), (i) or (j) of the definition of that term in subsection (1), other than a member of a class of small manufacturer or producer that is exempted by regulations made under subsection 54(2) from the requirement of subsection 54(1) to apply for a licence, and who imports into Canada

  • (a) cosmetics,

  • (b) [Repealed, R.S., 1985, c. 12 (4th Supp.), s. 1]

  • (c) goods enumerated in Schedule III.1, or

  • (d) prerecorded video cassettes that are new or have not been used in Canada

  shall be deemed to be the manufacturer or producer in Canada thereof and not the importer thereof and the goods shall be deemed to be goods produced or manufactured in Canada and not imported goods.

• Marginal note:Goods deemed not to be imported

  (4) For the purposes of this Act, goods imported into Canada by a person who is a manufacturer or producer within the meaning of paragraph (f) of the definition of that term in subsection (1), other than a member of a class of small manufacturer or producer that is exempted by virtue of regulations made under subsection 54(2) from the requirement of subsection 54(1) to apply for a licence, that are prepared, as described in that paragraph, by or on behalf of that person in Canada for sale shall be deemed to be goods produced or manufactured in Canada and not imported goods.

• Marginal note:Importer deemed manufacturer or producer

  (4.1) For the purposes of this Act, a person who is a manufacturer or producer within the meaning of paragraph (g) of the definition of that term in subsection (1), other than a member of a class of small manufacturer or producer that is exempted by virtue of regulations made under subsection 54(2) from the requirement of subsection 54(1) to apply for a licence, and who imports new motor vehicles designed for highway use, or chassis therefor, into Canada shall be deemed to be the manufacturer or producer in Canada thereof and not the importer thereof and the vehicles or chassis shall be deemed to be goods produced or manufactured in Canada and not imported goods.

• Marginal note:Goods deemed not to be imported

  (4.2) For the purposes of this Act, new motor vehicles designed for highway use, and chassis therefor, imported into Canada that are sold by a person who is a manufacturer or producer within the meaning of paragraph (h) of the definition of that term in subsection (1), other than a member of a class of small manufacturer or producer that is exempted by virtue of regulations made under subsection 54(2) from the requirement of subsection 54(1) to apply for a licence, shall be deemed to be goods produced or manufactured in Canada and not imported goods.

• Marginal note:Idem

  (5) For the purposes of this Act, a licensed wholesaler who gives away without charge, as free samples, replacement goods or parts or otherwise, goods on which taxes have not been paid under this Act is deemed to have retained the goods for his own use, unless

  • (a) he gives them away as free replacement goods or parts under a written warranty of the manufacturer of the goods to be replaced or of the goods into which the parts are to be incorporated; and

  • (b) the amount, if any, charged for the warranty is included in the sale price charged by the manufacturer for the goods to be replaced or the goods into which the parts are to be incorporated or, if those goods are imported goods, in the duty paid value thereof.

• Marginal note:Retroactive effect

  (5.1) For the purposes of this Act, a determination under paragraph (b) of the definition “municipality” in subsection (1) shall, if it so provides, be retroactive and be deemed to have come into force on a day prior to the day on which it is made, which prior day shall not be more than four years before the day on which the determination is made.

• Marginal note:References to tax etc. under Act

  (6) Any reference in a regulation or order made before 1991 under an Act of Parliament to a refund, remission or other relief from or in respect of a tax, duty, excise or levy under

  • (a) the Excise Tax Act,

  • (b) the laws relating to customs or customs duties, or

  • (c) the laws relating to excise or duties of excise

  shall, except where the regulation or order otherwise expressly provides, be deemed not to include a reference to a refund, remission or other relief from the tax imposed under Part IX.

• (7) [Repealed, 2001, c. 16, s. 16]

PART IInsurance Premiums Other than Marine

Marginal note:Definitions

3 In this Part,

exchange

exchange means a group of persons formed for the purpose of exchanging reciprocal contracts of indemnity or inter-insurance with each other through the same attorney; (Bourse)

insurer

insurer means any corporation incorporated for the purpose of carrying on the business of insurance, any association of persons formed on the plan known as Lloyds whereby each associate underwriter becomes liable for a stated, limited or proportionate part of the whole amount insured under a contract of insurance, and any exchange; (assureur)

net premiums

net premiums means the gross premiums paid or payable under a contract of insurance, less dividends received or receivable in respect of the contract and less premiums returned on cancellation of the contract. (primes nettes)

Superintendent

Superintendent[Repealed, 1999, c. 17, s. 146]

Marginal note:Tax on premiums in respect of insurance effected outside Canada

• 4 (1) Every person resident in Canada by whom or on whose behalf a contract of insurance, other than a contract of reinsurance, is entered into or renewed against a risk ordinarily within Canada at the time the contract is entered into or renewed,

  • (a) with

    • (i) any insurer not incorporated under the laws of Canada or of any province or not formed in Canada, or

    • (ii) any exchange having its chief place of business outside Canada or having a principal attorney-in-fact whose chief place of business is outside Canada,

    that at the time the contract is entered into or renewed is not authorized under the laws of Canada or of any province to transact the business of insurance, or

  • (b) with any insurer that at the time the contract is entered into or renewed is authorized under the laws of Canada or of any province to transact the business of insurance, if the contract is entered into or renewed through a broker or agent outside Canada,

  shall, on or before April 30 in each year, pay to the Minister, in addition to any other tax payable under any other law, a tax of ten per cent on the net premiums paid or payable during the immediately preceding calendar year in respect of that insurance.

• Marginal note:Application

  (2) Subsection (1) does not apply to

  • (a) any contract of life insurance, personal accident insurance, sickness insurance or insurance against marine risks, or any contract of insurance against nuclear risks to the extent that the insurance against nuclear risks is not, in the opinion of the Commissioner, available within Canada; or

  • (b) any other contract of insurance entered into after February 19, 1973 to the extent that the insurance is not, in the opinion of the Commissioner, available within Canada.

• Marginal note:Residence of corporation

  (3) For the purposes of this section, every corporation carrying on business in Canada shall be deemed to be a person resident in Canada.

• Marginal note:Through whom contract made

  (4) Where a contract of insurance is entered into or renewed through more than one broker or agent, or where payment of the premium or any part of the premium thereon is effected through more than one broker or agent, the contract shall, for the purposes of this Part, be deemed to have been entered into or renewed, as the case may be, through the broker or agent directly retained or instructed by the insured and not through any other broker or agent.

Marginal note:Returns

• 5 (1) Every person to whom section 4 applies shall, on or before April 30 in each year, make a return in writing to the Minister stating, with respect to each contract of insurance entered into or renewed by him or on his behalf during the immediately preceding calendar year and on which the net premiums are taxable under section 4,

  • (a) the name of the insurer;

  • (b) the amount of the insurance;

  • (c) the net premiums paid or payable during the immediately preceding calendar year; and

  • (d) if the contract was entered into or renewed as described in paragraph 4(1)(b), the name and address of the broker or agent outside Canada through whom the contract was entered into or renewed.

• Marginal note:Return by broker or agent

  (2) Every person who, acting as a broker or agent, obtains, effects or places or assists in obtaining, effecting or placing any contract of insurance entered into or renewed as described in paragraph 4(1)(a), and on which the net premiums are taxable under section 4, shall, on or before March 15 in each year, make a return in writing to the Minister stating, with respect to each contract so entered into or renewed during the immediately preceding calendar year, the name and address of the person resident in Canada by whom or on whose behalf the contract was entered into or renewed and the net premiums paid or payable during that year.

• Marginal note:Return by insurer

  (3) Every insurer that enters into or renews a contract of insurance as described in paragraph 4(1)(b), and on which the net premiums are taxable under section 4, shall, on or before March 15 in each year, make a return in writing to the Minister stating, with respect to each contract so entered into or renewed during the immediately preceding calendar year,

  • (a) the name and address of each person resident in Canada with whom or on whose behalf the contract was entered into or renewed;

  • (b) the net premiums paid or payable during the immediately preceding calendar year; and

  • (c) the name and address of the broker or agent outside Canada through whom the contract was entered into or renewed.

Marginal note:Examination of books and records

6 The Commissioner or any officer or employee of the Agency appointed by the Commissioner may visit the office of any insurer, broker or agent and examine their books and records for the purpose of verifying any return required by this Part, and the Commissioner and that officer or employee have a right of access to those books and records at all reasonable hours.

Marginal note:Penalty for default

• 7 (1) Every person who refuses or neglects to make a return as required by subsection 5(1) is liable to a penalty of five per cent of the amount of tax unpaid at the expiration of the time for filing the return.

• Marginal note:Idem

  (2) Every person who refuses or neglects to make a return as required by subsection 5(2) or (3) is liable to a penalty of ten dollars for each day of default or fifty dollars, whichever is the lesser.

PART IIAir Transportation Tax

Interpretation

Marginal note:Definitions

8 In this Part,

air carrier

air carrier means a person who provides transportation of a person by air; (transporteur aérien)

certified air carrier

certified air carrier means

• (a) an air carrier who is authorized by the Canadian Transportation Agency under Part II of the Canada Transportation Act to operate a domestic service or an international service, and

• (b) an air carrier, other than an air carrier described in paragraph (a), who, personally or by agent, sells in Canada transportation of a person by air that is to be provided in whole or in part by an air carrier described in paragraph (a); (transporteur aérien titulaire de certificat)

emplanement

emplanement does not include an emplanement resulting from a landing of an aircraft made solely to obtain ground services for the aircraft; (embarquement)

licensed air carrier

licensed air carrier means a certified air carrier to whom a licence has been granted under section 17; (transporteur aérien titulaire de licence)

tax

tax means the air transportation tax imposed under this Part; (taxe)

taxation area

taxation area means

• (a) Canada,

• (b) the United States (except Hawaii), and

• (c) the Islands of St. Pierre and Miquelon. (zone de taxation)

Her Majesty

Marginal note:Binding on Her Majesty

9 This Part is binding on Her Majesty in right of Canada or a province.

Tax Imposed

Marginal note:Tax imposed

• 10 (1) There shall be imposed, levied and collected an air transportation tax, determined under section 11, on each amount paid or payable in Canada for transportation of a person by air where that transportation begins at a point in the taxation area and ends at a point in the taxation area.

• Marginal note:Idem

  (2) There shall be imposed, levied and collected an air transportation tax, determined under section 11, on each amount paid or payable outside Canada for the transportation of a person by air where that transportation

  • (a) begins at a point in the taxation area and ends at a point in the taxation area, and

  • (b) includes an emplanement by the person on an aircraft at an airport in Canada on a specific flight having as a destination an airport in the taxation area outside Canada and subsequent deplanement by the person from the flight at an airport outside Canada,

  payable by the person at the time when, in respect of the transportation, he emplanes at the airport in Canada described in paragraph (b) on the aircraft therein described, except where the air transportation tax has been paid before that time to a licensed air carrier or his agent and evidence of the prepayment of tax is submitted by the person, in a manner and form and to a member of a class of persons prescribed by regulation of the Governor in Council.

• Marginal note:Transportation by air

  (3) For the purposes of subsection (1), transportation by air begins at a point in the taxation area and ends at a point in the taxation area if the transportation does not include a departure, destination or intermediate stop, other than a transfer stop, outside the taxation area.

• Marginal note:Idem

  (4) For the purposes of subsection (2), transportation by air begins at a point in the taxation area and ends at a point in the taxation area if the transportation

  • (a) does not include a departure, destination or intermediate stop, other than a transfer stop, outside the taxation area; and

  • (b) includes at least one departure from a point in Canada, other than a departure resulting from a transfer stop.

Marginal note:Amount of tax

• 11 (1) Subject to subsections (2) and (2.1), the tax imposed under subsection 10(1) or (2) on each amount paid or payable for transportation of a person by air shall be an amount that is the lesser of

  • (a) the aggregate of

    • (i) the amount that is

      • (A) 4% of each amount paid or payable, if the amount is paid or payable in Canada after December 31, 1997 for transportation of a person by air that begins after February 28, 1998,

      • (B) 4% of each amount paid or payable, if the amount is paid or payable outside Canada after December 31, 1997 and the first emplanement by the person, as described in paragraph 10(2)(b), occurs after February 28, 1998, or

      • (C) 7% of each amount paid or payable, in any other case, and

    • (ii) $6 or such lesser amount as may, for the purposes of this subparagraph, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, and

  • (b) such amount as may, for the purposes of this subsection, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport.

• Marginal note:Charter flights

  (2) Where the amount paid or payable in Canada for air transportation is for transportation by an aircraft that has been chartered for the purpose by one or more charterers, the tax imposed under subsection 10(1) on the amount paid or payable to a certified air carrier by each charterer shall be an amount that is the lesser of

  • (a) the aggregate of

    • (i) the amount that is

      • (A) 4% of each amount paid or payable, if the amount is paid or payable after December 31, 1997 to a certified air carrier by the charterer for transportation of a person by air that begins after February 28, 1998, or

      • (B) 7% of each amount paid or payable to a certified air carrier by the charterer, in any other case, and

    • (ii) the amount that is

      • (A) $1.50 in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by any person, if the amount is paid or payable to a certified air carrier by the charterer after December 31, 1997 for transportation of the person by air that begins after February 28, 1998, or

      • (B) $3 in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by any person, in any other case, and

  • (b) the aggregate of such amount as may, for the purposes of this subsection, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by any person.

• Marginal note:Amount of tax imposed on amount paid outside Canada where tax payable in Canada

  (2.1) Where the tax imposed under subsection 10(2) on an amount paid or payable outside Canada for transportation of a person by air is payable by the person at the time he emplanes at an airport in Canada and evidence of the amount paid or payable for the transportation is not submitted, in the manner and form prescribed by regulation of the Governor in Council, by the person to the licensed air carrier required by this Part to collect the tax in Canada, and an amount is prescribed by order of the Governor in Council pursuant to paragraph (1)(b), the tax payable by the person shall be the amount so prescribed.

• Marginal note:When tax not payable

  (3) The tax imposed by subsection 10(1), as determined under subsection (1), on each amount paid or payable for transportation of a person by air is not payable in the case of transportation purchased as part of a continuous journey where

  • (a) the journey includes a charter flight in respect of which tax is imposed under section 10 or 12; and

  • (b) evidence of the continuous journey is submitted by the person to the licensed air carrier or his agent from whom the transportation by air is purchased.

Marginal note:Specific tax

• 12 (1) There shall be imposed, levied and collected an air transportation tax, determined under section 13, on each amount paid or payable in Canada for transportation of a person by air where that transportation begins at a point in the taxation area and ends at a point outside the taxation area.

• Marginal note:Idem

  (2) There shall be imposed, levied and collected an air transportation tax, determined under section 13, on each amount paid or payable outside Canada for the transportation of a person by air where such transportation

  • (a) begins at a point in the taxation area and ends at a point outside the taxation area, and

  • (b) includes an emplanement by the person on an aircraft at an airport in Canada on a specific flight having as a destination an airport outside Canada and subsequent deplanement by the person from the flight at an airport outside Canada,

  payable by the person at the time when, in respect of the transportation, he emplanes at the airport in Canada described in paragraph (b) on the aircraft therein described, except where the air transportation tax has been paid before that time to a licensed air carrier or his agent and evidence of the prepayment of tax is submitted by the person, in a manner and form and to a member of a class of persons prescribed by regulation of the Governor in Council.

• Marginal note:Transportation by air

  (3) For the purposes of subsection (1), transportation by air begins at a point in the taxation area and ends at a point outside the taxation area if the transportation or any part thereof includes at least one departure from a point in the taxation area, other than a departure resulting from a transfer stop, to a destination outside the taxation area.

• Marginal note:Idem

  (4) For the purposes of subsection (2), transportation by air begins at a point in the taxation area and ends at a point outside the taxation area if the transportation or any part thereof includes at least one departure from a point in Canada, other than a departure resulting from a transfer stop, to a destination outside the taxation area, whether or not there are any intermediate stops.

Marginal note:Amount of tax

• 13 (1) Subject to subsection (2), the tax imposed under subsection 12(1) for transportation of a person by air shall be

  • (a) an amount that is the lesser of

    • (i) the amount of

      • (A) $30, if the amount paid or payable for transportation of the person by air is paid or payable after December 31, 1997 for transportation of the person by air that begins after February 28, 1998, or

      • (B) $55, in any other case, and

    • (ii) such amount as may, for the purposes of this subsection, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport; or

  • (b) fifty per cent of the amount provided in paragraph (a) when the person is a child under twelve years of age and is being transported at a fare reduced fifty per cent or more below the applicable fare.

• Marginal note:Charter flights

  (2) Where the amount paid or payable in Canada for air transportation is for transportation by an aircraft that has been chartered for the purpose by one or more charterers, the tax imposed under subsection 12(1) on the amount paid or payable to a certified air carrier by each charterer shall be an amount that is the aggregate of

  • (a) the lesser of

    • (i) the amount of

      • (A) $30, if the amount paid or payable for the transportation of a person by air is paid or payable to a certified air carrier by the charterer after December 31, 1997 for transportation of the person by air that begins after February 28, 1998, or

      • (B) $55, in any other case, and

    • (ii) such amount as may, for the purposes of this subsection, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport,

    in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by a person, other than a person described in paragraph (b); and

  • (b) fifty per cent of the amount provided in paragraph (a) in respect of each emplanement, pursuant to the charter agreement of that charterer, on the aircraft by a child who is under twelve years of age and is being transported at a fare reduced fifty per cent or more below the applicable fare.

• Definition of emplanement

  (2.1) For the purposes of subsection (2), emplanement means an emplanement by a person at an airport in Canada on a specific flight that has as a destination an airport outside Canada and from which the person deplanes at an airport outside Canada.

• Marginal note:Amount of tax

  (2.2) The tax imposed under subsection 12(2) for transportation of a person by air shall be

  • (a) where the first emplanement of the person occurs at an airport in Canada,

    • (i) an amount that is the lesser of

      • (A) the amount of

        • (I) $30, if the amount paid or payable for the transportation is paid or payable after December 31, 1997 and the first emplanement by the person, within the meaning of subsection (2.1), occurs after February 28, 1998, or

        • (II) $55, in any other case, and

      • (B) such amount as may, for the purposes of this paragraph, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, or

    • (ii) 50% of the amount provided in subparagraph (i) where the person is a child under twelve years of age and is being transported at a fare reduced 50% or more below the applicable fare; and

  • (b) in any other case,

    • (i) an amount that is the lesser of

      • (A) the amount of

        • (I) $15, if the amount paid or payable for the transportation is paid or payable after December 31, 1997 and the first emplanement by the person, within the meaning of subsection (2.1), occurs after February 28, 1998, or

        • (II) $27.50, in any other case, and

      • (B) such amount as may, for the purposes of this paragraph, be prescribed by order of the Governor in Council on the recommendation of the Minister of Transport, or

    • (ii) 50% of the amount provided in subparagraph (i) where the person is a child under twelve years of age and is being transported at a fare reduced 50% or more below the applicable fare.

• Marginal note:Non-application

  (3) Subsections 12(1) and (2) do not apply in respect of the transportation of a person by air at a fare ninety per cent or more below the applicable fare.

Marginal note:More than one amount payable

• 13.1 (1) Notwithstanding sections 11 and 13 but subject to subsection 11(3) and subsection (2) of this section, where two or more amounts are paid or payable at the same time for transportation of a person by air on a continuous journey,

  • (a) the total of the taxes imposed on all such amounts under subsection 10(1) or (2), determined under subsection 11(1), shall not exceed the lesser of

    • (i) the amount that is

      • (A) the total of 4% of the aggregate of all such amounts and $3, if the amount paid or payable for the transportation is paid or payable after December 31, 1997 for transportation of the person by air that begins after February 28, 1998, or

      • (B) the total of 7% of the aggregate of all such amounts and $6, in any other case, and

    • (ii) the amount, if any, prescribed by order of the Governor in Council under paragraph 11(1)(b);

  • (b) the total of the taxes imposed on all such amounts under subsections 10(1) and 12(1), determined under subsections 11(1) and 13(1), as applicable, shall not exceed the amount determined under subsection 13(1) in respect of any such amount in respect of which that subsection applies; and

  • (c) the total of the taxes imposed on all such amounts under subsections 10(2) and 12(2), determined under subsections 11(1) and 13(2.2), as applicable, shall not exceed the largest amount determined under subsection 13(2.2) in respect of any such amount.

• Marginal note:Restriction on reduction of tax

  (2) Subsection (1) does not apply to reduce any tax imposed under this Part in respect of transportation of a person by air unless the licensed air carrier or the carrier’s agent from whom the transportation is purchased records on each ticket issued at the same time the following information:

  • (a) ticket numbers, including air carrier codes, for all flights comprising the continuous journey; and

  • (b) flight numbers for all flights comprising the continuous journey.

Marginal note:When and by whom tax payable

14 The tax on each amount paid or payable in Canada for transportation of a person by air is payable

• (a) at the time when the amount is so paid or becomes payable and in any case prior to the provision of the transportation; and

• (b) by the person making the payment.

Marginal note:Employees of foreign country

15 This Part does not apply in the case of any amount paid for transportation by air of a person described in section 2 of Part II of Schedule III.

Marginal note:Amount deemed paid in Canada

• 16 (1) Where an amount is paid or payable outside Canada for the transportation of a person by air

  • (a) by transmission from within Canada to a place outside Canada, by means of telegraph or mail, of cash, cheque, postal telegram, money order or any similar draft to a ticket office, travel agency, air carrier or any representative of any of them,

  • (b) by delivery of the amount to an agency located within Canada for transmission to a ticket office, travel agency, air carrier or any representative of any of them located in any place outside Canada, or

  • (c) by any other arrangement with a person outside Canada for the benefit or convenience of a person in Canada,

  the amount shall, for the purposes of this Part, be deemed to be an amount paid or payable in Canada and not outside Canada.

• Marginal note:Charter flights

  (2) Where an amount is paid or payable outside Canada for the charter of an aircraft for the transportation of a person by air and the transportation begins at a point in Canada, the amount shall, for the purposes of this Part, be deemed to be an amount paid or payable in Canada and not outside Canada.

Marginal note:Elimination of air transportation tax

16.1 No tax shall be imposed, levied or collected on any amount paid or payable for the transportation of a person by air that

• (a) in the case of tax imposed under subsection 10(1) or 12(1), begins after October 31, 1998; or

• (b) in the case of tax imposed under subsection 10(2) or 12(2), does not include an emplanement of the person, within the meaning of subsection 13(2.1), before November 1, 1998.

Licences

Marginal note:Duty to apply for licence

• 17 (1) Subject to this section, every certified air carrier, other than an air carrier that provides only air transportation that is exempt from the operation of this Part pursuant to paragraph 21(d), shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part.

• Marginal note:Granting of licence

  (2) The Minister may grant a licence to any person applying therefor under subsection (1).

• Marginal note:Cancellation

  (3) The Minister may cancel a licence issued under this Part if, in his opinion, it is no longer required for the purposes of this Part.

• Marginal note:Application

  (4) Subsection (1) applies only to a certified air carrier that provides air transportation before November 1, 1998.

Collection of Tax

Marginal note:Duty of licensed air carrier

• 18 (1) Every licensed air carrier is an agent of the Minister and as such shall, as provided in this section,

  • (a) levy and collect any taxes imposed by this Part for the transportation of a person by air; and

  • (b) make adjustments in or refund any portion of the tax paid on the transportation of a person by air that has not been provided or only partially provided or any tax that has been collected in error by the licensed air carrier.

• Marginal note:Collection of tax

  (2) The tax imposed by this Part on each amount paid or payable in Canada for transportation of a person by air shall be collected by the licensed air carrier to whom payment for the transportation is made or is owing.

• Marginal note:Idem

  (3) The tax imposed by this Part on each amount paid or payable outside Canada for transportation of a person by air that is payable by the person at the time when he emplanes on an aircraft at an airport in Canada shall be collected by the licensed air carrier on whose aircraft the person emplanes, in this subsection referred to as the “emplaning air carrier”, except where the air transportation tax has been paid before that time to a licensed air carrier or his agent and evidence of the prepayment of tax is submitted by the person to the emplaning air carrier in a manner and form prescribed by regulation of the Governor in Council.

• Marginal note:Idem

  (4) In the case of tax imposed by this Part on any amount paid or payable in Canada for transportation of a person by air, where the transportation of a person by air is being provided by several air carriers, one or more of whom are licensed, the tax, where applicable, shall be collected by the licensed air carrier who sells the transportation by air or, if the transportation is not sold by a licensed air carrier, by the first licensed air carrier who provides any part of the transportation.

• Marginal note:Adjustments and refunds where tax reduced for continuous journey

  (5) Where tax has been reduced pursuant to subsection 13.1(1) in respect of two or more amounts paid or payable at the same time for transportation of a person by air on a continuous journey, no adjustment in or refund of all or any portion of the tax paid shall be made unless all of the tickets purchased at the same time for the transportation are cancelled at the same time.

Marginal note:Debt to Her Majesty

• 19 (1) Every person who, being required by or pursuant to this Part to collect an air transportation tax, fails to do so as required is liable to Her Majesty for the amount of the tax and that amount is recoverable in the Federal Court or in any other court of competent jurisdiction as a debt due to Her Majesty.

• Marginal note:Persons deemed agents

  (2) A person who, not being a licensed air carrier, sells in Canada transportation of a person by air that is to be provided in whole or in part by a licensed air carrier is, in respect of the payment for that transportation and for the purposes of this Part, the agent of the first licensed air carrier who provides the transportation by air or any part thereof, as the case may be, and that person shall levy and collect on behalf of that licensed air carrier the taxes imposed by this Part and transmit them to the licensed air carrier.

Penalty on Failure to File Return

Marginal note:Monthly return of taxes

• 20 (1) Every licensed air carrier that is required by this Part to collect tax shall make each month a true return, in the prescribed form and containing the prescribed information including statistical information relating to any tax not collected by the licensed air carrier during that period by reason of the prepayment thereof, of

  • (a) all amounts collected or collectible by the carrier by way of the tax imposed by this Part in the last preceding month; and

  • (b) all amounts collected, within or outside Canada by the carrier or the carrier’s agent in the last preceding month,

    • (i) by way of the tax imposed by this Part on amounts paid or payable outside Canada for the transportation of a person by air, and

    • (ii) before the time that the person is required by subsection 10(2) or 12(2), as the case may be, to pay the tax.

• Marginal note:Nil return

  (2) Every licensed air carrier shall, if no amounts have been collected or are collectible as described in subsection (1) in the last preceding month, make a return as required by that subsection stating that fact.

• Marginal note:Cessation of obligation

  (2.1) No return is required under subsection (2) if the last preceding month is a month after October 31, 1998.

• Marginal note:Alternate periods for making returns

  (3) Notwithstanding subsections (1) and (2), the Minister may, by regulation,

  • (a) authorize any licensed air carrier to make a return in respect of any accounting period of not less than twenty-one days and not more than thirty-five days;

  • (b) authorize any licensed air carrier to make a return in respect of any period longer than one month but not longer than six months, if the amounts collected or collectible by the carrier by way of the tax imposed by this Part in the last preceding calendar year did not exceed four thousand eight hundred dollars; or

  • (c) authorize any licensed air carrier whose passenger air transportation service is predominantly limited to a seasonal period of operation to make a return in respect of any period longer than one month but not longer than six months, if the amounts collected or collectible by the carrier by way of the tax imposed by this Part in the equivalent period in the last preceding calendar year did not exceed an average of four hundred dollars per month throughout that equivalent period.

• Marginal note:Date for filing and remittance

  (4) Subject to subsection (8) and sections 20.1 and 79.2, the return required by this section shall be filed and the taxes that are collected or collectible by a licensed air carrier shall be remitted

  • (a) in a case where the return is required to be made in accordance with subsection (1) or (2), not later than the last day of the first month following the month to which the return relates;

  • (b) in a case where the return is authorized to be made in accordance with a regulation made under paragraph (3)(a), not later than the last day of the first authorized accounting period following the end of the accounting period to which the return relates; and

  • (c) in a case where the return is authorized to be made in accordance with a regulation made under paragraph (3)(b) or (c), not later than the last day of the first month following the end of the period to which the return relates.

• Marginal note:Penalty and interest on default in remitting taxes

  (5) Subject to subsections (6) to (9), a licensed air carrier that defaults in remitting tax within the time prescribed by subsection (4), in addition to the amount in default, shall pay

  • (a) in the case of tax required to be remitted not later than the last day of a month, a penalty of one-half of one per cent and interest at the prescribed rate, in respect of each month or fraction of a month between that day and the day on which the total tax, penalty and interest outstanding is remitted, calculated on the total tax, penalty and interest outstanding in that month or fraction of a month; and

  • (b) in the case of tax required to be remitted not later than the last day of an accounting period, a penalty of one-half of one per cent and interest at the prescribed rate, in respect of each accounting period or fraction of an accounting period between that day and the day on which the total tax, penalty and interest outstanding is remitted, calculated on the total tax, penalty and interest outstanding in that accounting period or fraction of an accounting period.

• Marginal note:Minimum penalty and interest

  (6) No penalty or interest is payable under subsection (5) if the licensed air carrier remits all taxes collected or collectible by the carrier under this Part and, at the time of the remittance, the total penalty and interest payable is less than ten dollars.

• Marginal note:Time for paying penalty or interest

  (7) A licensed air carrier that is liable to pay penalty or interest under subsection (5) shall pay the penalty or interest not later than the last day of the month or accounting period in respect of which the penalty or interest was calculated.

• Marginal note:Extension

  (8) The Minister may, before or after the expiration of the time prescribed by subsection (4), extend in writing the time for filing a return or remitting any tax, and where the Minister so extends the time,

  • (a) the return shall be filed or the tax shall be remitted within the time as so extended;

  • (b) interest accrues under subsection (5) in respect of the tax as if the time had not been so extended;

  • (c) no penalty accrues or shall be deemed to have accrued under subsection (5) in respect of the tax before the expiration of the time as so extended; and

  • (d) penalty accrues under subsection (5) in respect of a default in remitting the tax or any portion thereof within the time as so extended as if the default were a default referred to in that subsection.

• Marginal note:Security

  (9) Where the Minister holds security under section 80.1 for the remittance of any tax under this Part that is not remitted within the time prescribed by subsection (4),

  • (a) interest accrues under subsection (5) in respect of the tax from the expiration of that time; and

  • (b) penalty accrues under subsection (5) only if the total tax, penalty and interest outstanding, as calculated in respect of each month or accounting period or fraction of a month or accounting period during which the default continues, exceeds the value of the security at the time it is accepted by the Minister and, if accruing, the penalty shall be calculated only on the amount of the excess.

Marginal note:Interpretation

• 20.1 (1) For the purposes of this section,

  • (a) a licensed air carrier’s “instalment base”

    • (i) for a month is the lesser of

      • (A) the tax imposed by this Part that was collected or collectible by that carrier in that month, and

      • (B) the tax so collected or collectible in the last preceding month,

    • (ii) for an accounting period is the lesser of

      • (A) the tax imposed by this Part that was collected or collectible by that carrier in that accounting period, and

      • (B) the tax so collected or collectible in the last preceding accounting period, and

    • (iii) for any other period to which a return relates is the lesser of

      • (A) the tax imposed by this Part that was collected or collectible by that carrier in that period, and

      • (B) the tax so collected or collectible in the last preceding period multiplied by the ratio that the number of days in the period to which the return relates is to the number of days in the last preceding period; and

  • (b) a licensed air carrier is a “large taxpayer” at any particular time if

    • (i) the aggregate amount of taxes payable under Parts II.1, III, IV and VI, other than taxes payable in accordance with the Customs Act, and collected or collectible under this Part and Part II.2 by that licensed air carrier in the last preceding calendar year ending at least ninety days, or ninety-one days where that time falls in a leap year, before that time exceeded twelve million dollars, or

    • (ii) the licensed air carrier

      • (A) was, at any time in the last preceding calendar year ending at least ninety days, or ninety-one days where that time falls in a leap year, before that time, a member of a group of associated corporations (within the meaning of section 256 of the Income Tax Act) and the aggregate amount of taxes payable under Parts II.1, III, IV and VI, other than taxes payable in accordance with the Customs Act, and collected or collectible under this Part and Part II.2 by the group in that year exceeded twelve million dollars, and

      • (B) is not, at that time, authorized to make a return in accordance with a regulation made under paragraph 20(3)(b) or (c).

• Marginal note:Instalment payments by large taxpayers

  (2) A large taxpayer that is required to file a return and remit tax within the time prescribed by subsection 20(4) shall pay instalments on account of the tax in accordance with the following rules:

  • (a) in the case where the return is required to be made in accordance with subsection 20(1), the large taxpayer shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the month in which the tax was collected or became collectible, the first to be paid not later than the last day of that month and the second not later than the fifteenth day of the next following month; and

  • (b) in the case where the return is authorized to be made in accordance with a regulation made under paragraph 20(3)(a), the large taxpayer shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the accounting period to which the return relates, the first to be paid not later than the last day of that accounting period and the second not later than the fifteenth day of the next following accounting period.

• Marginal note:Instalment payments by other licensed air carriers

  (3) A licensed air carrier, other than a large taxpayer, that is required to file a return and remit tax within the time prescribed by subsection 20(4) shall pay an instalment on account of the tax in accordance with the following rules:

  • (a) in the case where the return is required to be made in accordance with subsection 20(1), the carrier shall pay an instalment, equal to the carrier’s instalment base for the month in which the tax was collected or became collectible, not later than the twenty-first day of the next following month;

  • (b) in the case where the return is authorized to be made in accordance with a regulation made under paragraph 20(3)(a), the carrier shall pay an instalment, equal to the carrier’s instalment base for the accounting period to which the return relates, not later than the twenty-first day of the next following accounting period; and

  • (c) in the case where the return is authorized to be made in accordance with a regulation made under paragraph 20(3)(b) or (c), the carrier shall pay an instalment, equal to the carrier’s instalment base for the period to which the return relates, not later than the twenty-first day of the month next following the end of that period.

• Marginal note:Penalty and interest on default by large taxpayer in paying instalment

  (4) Subject to subsections (6) to (8), a large taxpayer that defaults in paying an instalment within the time prescribed by subsection (2) shall, in addition to the amount in default, pay in respect of the period between the end of that time and the end of the time prescribed for remittance of the tax on account of which the instalment was payable

  • (a) in the case of an instalment required to be paid not later than the last day of a month or an accounting period, a penalty of one-half of one per cent and interest at the prescribed rate, calculated on the amount by which

    • (i) one-half of the taxpayer’s instalment base for that month or accounting period

    exceeds

    • (ii) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day; and

  • (b) in the case of an instalment required to be paid not later than the fifteenth day of a month or an accounting period, a penalty of one-quarter of one per cent and interest at one-half of the prescribed rate, calculated on the amount by which

    • (i) one-half of the taxpayer’s instalment base for the last preceding month or accounting period

    exceeds

    • (ii) the amount by which the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day exceeds the lesser of

      • (A) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than the last day of the last preceding month or accounting period, and

      • (B) one-half of the taxpayer’s instalment base for the last preceding month or accounting period.

• Marginal note:Penalty and interest on default by other licensed air carriers in paying instalment

  (5) Subject to subsections (6) to (8), a licensed air carrier that defaults in paying an instalment within the time prescribed by subsection (3) shall, in addition to the amount in default, pay in respect of the period between the end of that time and the end of the time prescribed for remittance of the tax on account of which the instalment was payable

  • (a) in the case of an instalment required by paragraph (3)(a) or (b) to be paid not later than the twenty-first day of a month or an accounting period, a penalty of one-sixth of one per cent and interest at one-third of the prescribed rate, calculated on the amount by which

    • (i) the carrier’s instalment base for the last preceding month or accounting period

    exceeds

    • (ii) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day; and

  • (b) in the case of an instalment required by paragraph (3)(c) to be paid not later than the twenty-first day of a month next following the end of a period, a penalty of one-sixth of one per cent and interest of one-third of the prescribed rate, calculated on the amount by which

    • (i) the carrier’s instalment base for that period

    exceeds

    • (ii) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day.

• Marginal note:Minimum penalty and interest

  (6) No penalty or interest is payable under subsection (4) or (5) if the large taxpayer or other licensed air carrier liable to pay the instalment remits all taxes collected or collectible by the taxpayer or carrier under this Part and, at the time of the remittance, the total penalty and interest payable in respect of the instalment is less than five dollars and in respect of all those taxes is less than ten dollars.

• Marginal note:Time for paying penalty or interest

  (7) A large taxpayer or other licensed air carrier that is liable to pay penalty or interest under subsection (4) or (5) in respect of a default in paying an instalment shall pay the penalty or interest within the time prescribed by subsection 20(4) for the remittance of the tax on account of which the instalment is payable.

• Marginal note:Extension

  (8) The Minister may, before or after the expiration of the time prescribed by subsection (2) or (3), extend in writing the time for paying an instalment, for any period within the time prescribed by subsection 20(4) for the remittance of the tax on account of which the instalment is payable, and where the Minister so extends the time

  • (a) the instalment shall be paid within the time as so extended;

  • (b) interest accrues under subsection (4) or (5), as the case may be, in respect of the instalment as if the time had not been so extended;

  • (c) no penalty accrues or shall be deemed to have accrued under subsection (4) or (5), as the case may be, in respect of the instalment before the expiration of the time as so extended; and

  • (d) penalty accrues under subsection (4) or (5), as the case may be, in respect of a default in paying an instalment within the time as so extended as if the default were a default referred to in that subsection.

General

Marginal note:Prepaid amounts

• 20.2 (1) For greater certainty, amounts collected as described in paragraph 20(1)(b) shall be deemed to be sums payable under this Act.

• Marginal note:Records and books of account

  (2) Each licensed air carrier that is required to make a return of the amounts described in paragraph 20(1)(b) shall keep records and books of account in such form and containing such information as will enable the amount of tax or other sums that have been paid to or collected by the carrier or the carrier’s agent to be determined and, for the purposes of this subsection, subsections 98(2.01), (2.1) and (3) and 100(2) apply, with such modifications as the circumstances require, as if the records and books of account were required to be kept by the carrier pursuant to subsection 98(1).

Marginal note:Regulations

21 The Governor in Council may by regulation

• (a) prescribe, for those cases where the amount charged for transportation by air includes the transportation of persons and goods by air, the manner in which and by whom the amount charged shall be apportioned between the transportation by air of those persons and the transportation by air of those goods, for the purposes of the tax imposed under sections 10 to 12;

• (b) prescribe, for those cases where the amount charged for transportation of a person by air provides him with transportation and other services or goods, the manner in which and by whom the amount charged shall be apportioned between the transportation by air of that person and the provision of the other services and goods, for the purposes of the tax imposed under sections 10 to 12;

• (c) prescribe the manner and form in which and the class of persons to whom evidence of prepayment of any tax imposed under this Part shall be submitted;

• (c.1) prescribe the manner and form in which evidence of an amount paid or payable for transportation of a person by air shall be submitted;

• (d) exempt from the operation of this Part the transportation of a person by air on any classes or groups of air services, air carriers or aircraft;

• (e) reduce the amount of the tax paid or payable in Canada under this Part in respect of transportation of a person by air, or remove that tax, for the reduction or avoidance of double taxation by Canada and a foreign country in respect of that transportation;

• (f) vary the requirements of section 20 with respect to returns and the time of remitting for licensed air carriers who are authorized by the Canadian Transportation Agency to operate international charter flights from Canada, or exempt those carriers from the provisions of that section with respect to returns, subject to such terms and conditions as the Governor in Council considers to be in the public interest;

• (g) prescribe, in cases where an air carrier provides transportation of a person by air on credit, the time when and the place where the amount payable for that transportation is deemed to be paid or payable for the purposes of this Part; and

• (h) provide generally for the carrying out of the provisions of this Part.

PART II.1Telecommunication Programming Services Tax

Interpretation

Marginal note:Definitions

• 21.1 (1) In this Part,

  amount charged

  amount charged, in respect of a taxable service, means any amount paid or payable by a person for the taxable service, before any amount paid or payable in respect of any tax under this Part or imposed under an Act of the legislature of a province respecting retail sales tax is added thereto; (montant exigé)

  broadcasting

  broadcasting means any radiocommunication in which the transmissions are intended for direct reception by the general public; (radiodiffusion)

  licensee

  licensee means any person to whom a licence has been issued under section 21.18 and includes any person who is required by section 21.17 to apply for a licence; (titulaire de licence ou titulaire)

  programming service

  programming service means any presentation of sound or visual matter of a nature or kind broadcast by radio or television stations that is designed to inform, enlighten or entertain; (service de programmation)

  small undertaking

  small undertaking means

  • (a) a person who provides a taxable service exclusively in a place to which admission is granted to persons for the purpose of the presentation to those persons of a programming service by means of telecommunication on payment of a charge or fee through the sale of a ticket or any similar means of admission, or

  • (b) a person who, in any month, provides a taxable service to not more than two hundred persons, but does not include a person who, in any month in the year preceding that month, has provided a taxable service to more than two hundred persons; (entreprise restreinte)

  taxable service

  taxable service means

  • (a) the provision, by means of telecommunication, to the general public or any portion thereof, of any programming service,

  • (b) the commencement or cessation of the provision of a programming service referred to in paragraph (a),

  • (c) the provision of any instrument, device, equipment or apparatus or any part thereof, other than a television receiver, that is

    • (i) used in conjunction with the reception of a programming service referred to in paragraph (a), and

    • (ii) provided by the person providing the programming service or by any person authorized or designated by him for the purpose or acting on his behalf or by any person related to him,

    if the person providing the programming service requires that the instrument, device, equipment, apparatus or part be acquired exclusively from him or any other person referred to in subparagraph (ii), and

  • (d) the installation, disconnection, replacement, repair or maintenance of any instrument, device, equipment or apparatus or any part thereof, other than a television receiver, referred to in paragraph (c), by the person providing the programming service in conjunction with which it is being used or by any other person referred to in subparagraph (c)(ii),

  but does not include

  • (e) any surveillance or monitoring service, telebanking or teleshopping service or opinion-polling service,

  • (f) any background music service of a nature or kind that is provided in a shopping centre, an office building, a factory or a common area of a condominium or of an apartment building as an accompaniment to shopping, dining, working or other similar activities carried on in such place, or

  • (g) any other service prescribed by regulations made pursuant to section 21.2,

  that a person providing a programming service referred to in paragraph (a) provides for an additional fee or charge on the request of the person to whom the programming service is provided or that is provided by a person who does not provide a programming service referred to in paragraph (a); (service taxable)

  telecommunication

  telecommunication[Repealed, R.S., 1985, c. 12 (4th Supp.), s. 7]

• (2) [Repealed, R.S., 1985, c. 12 (4th Supp.), s. 7]

• Marginal note:Small undertaking resident in Canada

  (3) For the purposes of this Part, subsections 250(3) and (4) of the Income Tax Act apply in respect of the interpretation of the expression “small undertaking resident in Canada”.

• Marginal note:Presumption

  (4) For the purposes of this Part, where a small undertaking within the meaning of paragraph (a) of the definition small undertaking in subsection (1) acquires a taxable service from a person, other than a licensee or a small undertaking resident in Canada, and provides the taxable service to other persons for amounts charged, the aggregate of the amounts charged is deemed

  • (a) to be equal to the amount charged by the person from whom the small undertaking acquired the service; and

  • (b) to have been paid at the end of the month in which the service was acquired from the person referred to in paragraph (a).

• Marginal note:Computation

  (5) For the purposes of paragraph (b) of the definition small undertaking in subsection (1), the number of persons to whom a person provides a taxable service in a month shall be computed as the aggregate of the number of

  • (a) persons, in this subsection referred to as “customers”, to whom he, or a person related to him, provides the service in that month for an amount charged; and

  • (b) persons to whom customers provide the service in that month, whether or not for an amount charged.

Application to Crown

Marginal note:Binding on the Crown

21.11 This Part binds Her Majesty in right of Canada or a province.

Imposition and Payment of Tax

Marginal note:Imposition of tax

21.12 There shall be imposed, levied and collected a tax at the rate of eleven per cent on the amount charged for a taxable service, payable by the person providing the service at the time the amount charged is paid or payable, whichever is the earlier.

Marginal note:Relief from tax for licensee

• 21.13 (1) No tax is payable under section 21.12 in respect of a taxable service provided to a licensee

  • (a) who,

    • (i) in the case of a service described in paragraph (a), (b), (c) or (d) of the definition taxable service in subsection 21.1(1), is acquiring the service for broadcasting without charge or for provision to another person for an amount charged or broadcasting without charge, or

    • (ii) in the case of a service described in paragraph (b), (c) or (d) of that definition, is acquiring the service for use in conjunction with a service referred to in subparagraph (i) that is acquired by the licensee for a use described in that subparagraph; and

  • (b) who, at the time the amount charged for the service is paid or payable, whichever is the earlier, so certifies, and gives his licence number, to the person providing the service.

• Marginal note:Relief from tax for other persons

  (2) No tax is payable under section 21.12 in respect of a taxable service provided to a person, other than a licensee,

  • (a) who,

    • (i) in the case of a service described in paragraph (a) of the definition taxable service in subsection 21.1(1), is acquiring the service for broadcasting without charge or for provision to another person for broadcasting without charge, or

    • (ii) in the case of a service described in paragraph (b), (c) or (d) of that definition, is acquiring the service for use in conjunction with a service referred to in subparagraph (i) that is acquired by the licensee for a use described in that subparagraph; and

  • (b) who, at the time the amount charged for the service is paid or payable, whichever is the earlier, so certifies to the person providing the service.

• Marginal note:Relief from tax for small undertaking

  (3) No tax is payable under section 21.12 in respect of a taxable service provided by a small undertaking, other than a taxable service that

  • (a) is provided by a small undertaking within the meaning of paragraph (a) of the definition small undertaking in subsection 21.1(1); and

  • (b) was acquired by the small undertaking from another person, other than a licensee or a small undertaking resident in Canada.

Determination of Amount Charged in Certain Circumstances

Marginal note:Where service provided to non-arm’s length person

• 21.14 (1) Where a licensee has provided a taxable service to a person with whom the licensee was not dealing at arm’s length at the time of the provision for no amount charged or for an amount charged that was less than the amount charged (in this subsection referred to as the “reasonable charge”) that would have been reasonable in the circumstances if the service had been provided to a person with whom the licensee was dealing at arm’s length, for the purposes of this Part, the licensee shall be deemed to have provided the taxable service to that person for an amount charged equal to the reasonable charge for the service and, where there was no amount charged, the amount charged shall be deemed to be payable at the end of the month in which the service was provided.

• Marginal note:Where service provided under certain circumstances

  (2) Subject to subsection (1), where a licensee has provided a taxable service to a person and the amount charged for the service cannot be ascertained, for the purposes of this Part, the licensee shall be deemed to have provided the taxable service to that person for an amount charged equal to the amount that is reasonable in the circumstances.

Security

Marginal note:Security

• 21.15 (1) A small undertaking that proposes to provide a taxable service in respect of which tax is or will be imposed by section 21.12 shall, if required by the Minister, provide security in accordance with subsection (2) for payment of the tax.

• Marginal note:Amount and form of security

  (2) The security to be provided by a small undertaking pursuant to subsection (1) shall

  • (a) be provided within the time fixed by the Minister, but not later than the day immediately preceding the day on which provision of the taxable service commences;

  • (b) be in an amount of not less than six per cent of

    • (i) the aggregate of the amounts charged for that taxable service by the person from whom the small undertaking acquired the service, or

    • (ii) where the aggregate of the amounts charged for that taxable service by the person from whom the small undertaking acquired the service cannot be determined prior to the commencement of the service by the small undertaking, the aggregate of the amounts that, in accordance with the agreement between the small undertaking and that other person, are paid or payable by the small undertaking for the service, computed as of seven days prior to the commencement of the service or such later day as may be fixed by the Minister; and

  • (c) be provided by a chartered bank or by depositing with the Minister

    • (i) a bond, acceptable to the Minister, of an incorporated guarantee company authorized to do business in Canada, or

    • (ii) a bond or other security of or guaranteed by the Government of Canada.

• Marginal note:Cancellation of bond

  (3) Notwithstanding that a bond of a guarantee company given under this section has been cancelled, the bond shall be deemed to remain in force in relation to taxable services provided or to be provided for an amount charged at the time of cancellation until all liabilities to pay amounts on account of tax, penalties, interest or other amounts in relation to such taxable services are discharged.

Diversions

Marginal note:Diversions

• 21.16 (1) Where, pursuant to subsection 21.13(1) or (2), a taxable service is relieved from tax by reason of the use for which the service is acquired, in this section referred to as the “relieved use”, and that service is subsequently diverted

  • (a) by the person who acquired the service for the relieved use, or

  • (b) where the person referred to in paragraph (a) acquired the service for provision to another person for broadcasting without charge, by that other person,

  to any other use or purpose in respect of which the service would not, at the time of the acquisition of the service for the relieved use, be so relieved, the person who diverted the service and the person who provided the service to him are, from the time of the diversion, jointly and severally liable to pay tax under this Part in respect of the amount charged for the service.

• Marginal note:Tax payable

  (2) The tax payable pursuant to subsection (1) is payable at the time the service is diverted and shall be computed as the amount of tax that would have been payable at the time of the acquisition of the service for the relieved use had the service not been so relieved.

Licences

Marginal note:Application for licence

• 21.17 (1) Subject to this section, every person who is providing a taxable service for an amount charged on the coming into force of this Part shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which this Part comes into force.

• Marginal note:Idem

  (2) Subject to this section, every person who commences to provide, on or after the coming into force of this Part, a taxable service for an amount charged shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which that person commences to provide the service.

• Marginal note:Exemption

  (3) Subsections (1) and (2) do not apply to a small undertaking.

• Marginal note:Exemption lifted

  (4) Every person providing a taxable service for an amount charged who ceases to be a small undertaking shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which that person ceases to be a small undertaking.

Marginal note:Issue of licence

21.18 The Minister may issue a licence for the purposes of this Part to any person applying therefor under section 21.17.

Marginal note:Cancellation

21.19 The Minister may cancel a licence issued under section 21.18 if, in the Minister’s opinion, it is no longer required for the purposes of this Part.

Regulations

Marginal note:Regulations

21.2 The Governor in Council may make regulations

• (a) prescribing, for the purposes of paragraph (g) of the definition taxable service in subsection 21.1(1), any service other than a programming service referred to in paragraph (a) of that definition;

• (b) respecting the method for determining the reasonable amount charged for a taxable service for the purposes of section 21.14; and

• (c) generally for carrying out the purposes and provisions of this Part.

Increase of Amount Charged by Licensee

Marginal note:Override of other laws

21.21 A licensee may,

• (a) notwithstanding the Broadcasting Act or any other Act of Parliament or any regulation or other statutory instrument made thereunder or any other law, and

• (b) notwithstanding

  • (i) any decision or order made, or any licence or renewal of a licence issued, by the Canadian Radio-television and Telecommunications Commission, or

  • (ii) any other act or thing given, done or issued pursuant to the Broadcasting Act or any other Act of Parliament or any other law,

  before or after the coming into force of this Part,

increase the amount charged for a taxable service by an amount not exceeding the tax payable by him under this Part with respect to that service.

PART II.2Telecommunication Services Tax

Interpretation

Marginal note:Definitions

• 21.22 (1) In this Part,

  amount charged

  amount charged, in respect of a service, means any amount paid or payable by a person for the service, before any amount paid or payable in respect of any tax under this Part or imposed under an Act of the legislature of a province respecting retail sales tax is added thereto; (montant exigé)

  approved tariff

  approved tariff, in respect of a licensee, means a current schedule or tariff that sets out or otherwise provides for amounts that may be charged by the licensee for any service and that is approved by

  • (a) the Canadian Radio-television and Telecommunications Commission,

  • (b) the lieutenant governor in council of a province,

  • (c) a commission, board, tribunal, authority or other body established by or pursuant to an Act of the legislature of a province to regulate telecommunications,

  • (d) a person designated by the lieutenant governor in council of a province to regulate telecommunications, or

  • (e) a municipal or local commission, board, tribunal, authority or other body that regulates telecommunications in a municipality; (tarif agréé)

  licensee

  licensee means any person to whom a licence has been issued under subsection 21.3(2) and includes any person who is required by subsection 21.3(1) to apply for a licence; (titulaire de licence ou titulaire)

  separate charge

  separate charge, in respect of a service provided by a person, means an amount charged for the service

  • (a) as set out separately in a contract entered into by that person and the person charged for the service or in an invoice, bill, statement of account or other similar document issued or made available by that person to the person charged for the service, or

  • (b) if no such contract was so entered into and document was so issued or made available and the person providing the service is a licensee, as set out or provided for separately in an approved tariff of the licensee; (redevance distincte)

  taxable service

  taxable service means

  • (a) any telecommunication service,

  • (b) the commencement or cessation of a telecommunication service,

  • (c) the provision of any instrument, device, equipment or apparatus or any part thereof, other than terminal equipment for the provision of which a separate charge is made, that is

    • (i) used in conjunction with a telecommunication service, and

    • (ii) provided by the person providing the telecommunication service or by any person authorized or designated by him for the purpose or acting on his behalf or by any person related to him,

    if the person providing the telecommunication service requires that the instrument, device, equipment, apparatus or part be acquired exclusively from him or any other person referred to in subparagraph (ii), and

  • (d) the installation, disconnection, replacement, repair or maintenance of any instrument, device, equipment or apparatus or any part thereof referred to in paragraph (c) by the person providing the telecommunication service in conjunction with which it is being used or by any other person referred to in subparagraph (c)(ii),

  but does not include a taxable service within the meaning assigned by subsection 21.1(1); (service taxable)

  telecommunication service

  telecommunication service means the transmission of any information by means of a system for telecommunication or any part thereof and includes the making available of such a system or part for that use, whether or not it is so used, but does not include

  • (a) any such service provided for taxi, messenger or other dispatch purposes, if the person providing the service uses, primarily for the person’s own dispatch purposes, the system or part thereof by means of which the service is provided,

  • (b) any such service provided to an occupant in a building or building complex by the owner or manager of the building or complex, if

    • (i) the system or part thereof by means of which the service is provided and that is controlled by the owner or manager is used exclusively to provide the service within the building or complex, and

    • (ii) the owner or manager provides the service exclusively

      • (A) by means of the system or part referred to in subparagraph (i),

      • (B) through the resale of service acquired from another person, or

      • (C) in the manner described in clauses (A) and (B), or

  • (c) the provision, in conjunction with any such service, of a data processing, data storage, information or other service (in this paragraph referred to as the “additional service”) by means of telecommunication for a separate charge, if

    • (i) the service in conjunction with which the additional service is provided is offered separately from the additional service, and

    • (ii) the additional service is, or could be, lawfully provided by means of telecommunication by persons other than telecommunications carriers; (service de télécommunication)

  telecommunications carrier

  telecommunications carrier means

  • (a) any person who, for an amount charged, provides telecommunication service to the general public, or any portion thereof, by means of a telecommunication system owned, or controlled, and operated by that person, and

  • (b) any person to whom a licence has been issued under section 21.18 or who is required by section 21.17 to apply for a licence for the purposes of Part II.1. (exploitant de télécommunication)

• Marginal note:Presumption

  (2) For the purposes of the definitions telecommunication service and telecommunications carrier in subsection (1), a person who provides telecommunication service through the resale of telecommunication service acquired from another person shall be deemed not to control the system for telecommunication of that other person.

Application to Crown

Marginal note:Binding on Her Majesty

21.23 This Part binds Her Majesty in right of Canada or a province.

Imposition of Tax

Marginal note:Imposition of tax

• 21.24 (1) There shall be imposed, levied and collected a tax at the rate of eleven per cent on the amount charged for a taxable service acquired from a licensee, payable by the person charged for the service at the time the amount charged is paid or payable, whichever is the earlier.

• Marginal note:Tax on long distance calls from a pay telephone

  (2) Notwithstanding subsection (1), where long distance telephone service is acquired and paid for by means of a coin-operated telephone and the amount charged for the service exceeds fifty cents, the tax payable in respect of the service shall be calculated at the rate of five cents for every fifty cents or part thereof charged for the service in excess of twenty-four cents.

• Marginal note:Tax on paging service

  (3) Notwithstanding subsection (1), where a paging service is acquired, the tax payable in respect of the service shall be calculated at the rate of thirty cents, in respect of each paging terminal device by means of which the service is acquired, for each month or fraction of a month in which the service is acquired.

• Marginal note:Tax on private international service

  (4) Notwithstanding subsection (1), where telecommunication service between a place in Canada and a place outside Canada is provided by means of a telecommunication line, channel or other facility that is dedicated to the sole use of a person, the tax payable in respect of the service shall be calculated on the amount charged for the service only to the extent that the amount charged is for service provided in Canada.

Determination of Amount Charged in Certain Circumstances

Marginal note:Where service acquired by licensee

• 21.25 (1) Where a licensee has provided a taxable service to itself for use in the administration or management of its business, for the purposes of this Part, the licensee shall be deemed to have acquired the taxable service from itself for an amount charged equal to fifty per cent of the amount charged that would have been reasonable in the circumstances if the service had been provided to a person with whom the licensee was dealing at arm’s length and the amount charged shall be deemed to be payable at the end of the month in which the service was provided.

• Marginal note:Where service acquired by non-arm’s length person

  (2) Where a licensee has provided a taxable service to a person with whom the licensee was not dealing at arm’s length at the time of the provision for no amount charged or for an amount charged that was less than the amount charged (in this subsection referred to as the “reasonable charge”) that would have been reasonable in the circumstances if the service had been provided to a person with whom the licensee was dealing at arm’s length, for the purposes of this Part, that person shall be deemed to have acquired the taxable service from the licensee for an amount charged equal to the reasonable charge for the service and, where there was no amount charged, the amount charged shall be deemed to be payable at the end of the month in which the service was provided.

• Marginal note:Where service acquired under certain circumstances

  (3) Subject to subsection (2), where a licensee has provided a taxable service to a person and the amount charged for the service cannot be ascertained, for the purposes of this Part, that person shall be deemed to have acquired the taxable service from the licensee for an amount charged equal to the amount that is reasonable in the circumstances.

• Marginal note:Reasonable charge where approved tariff

  (4) Where the amount that may be charged for a taxable service provided by a licensee was set out or provided for separately in an approved tariff of the licensee at the time of the provision, the amount as so set out or provided for shall be deemed to be

  • (a) for the purposes of subsections (1) and (2), the amount charged that would have been reasonable in the circumstances; and

  • (b) for the purposes of subsection (3), the amount that is reasonable in the circumstances.

Relief from Tax

Marginal note:Relief from tax for residential telephone service

• 21.26 (1) No tax is payable under section 21.24 on any amount charged for

  • (a) the provision, commencement or cessation of residential telephone service, other than the provision of long distance telephone service; or

  • (b) the provision, installation, disconnection, replacement, repair or maintenance of any instrument, device, equipment or apparatus or any part thereof that is used in conjunction with residential telephone service.

• Marginal note:Relief from tax for pay telephone service

  (2) No tax is payable under section 21.24 on any amount charged for telephone service acquired and paid for by means of a coin-operated telephone, other than long distance telephone service for which the amount charged exceeds fifty cents.

• Marginal note:Relief from tax for international telecommunication service

  (3) No tax is payable under section 21.24 on any amount charged for any taxable service that is provided entirely outside Canada.

Marginal note:Relief from tax for diplomats

• 21.27 (1) No tax is payable under section 21.24 on any amount charged for a taxable service acquired by a person described in section 2 of Part II of Schedule III or by a member of the family of that person, if that member is not a Canadian citizen or a permanent resident of Canada.

• Marginal note:Relief from tax for international organizations

  (2) No tax is payable under section 21.24 on any amount charged for a taxable service acquired by an organization in respect of which the Governor in Council has provided, by order made pursuant to subsection 4(1) of the Privileges and Immunities (International Organizations) Act, that the organization shall have the privileges and immunities set out in paragraph 7(a) of Schedule I to that Act.

• Marginal note:Relief from tax for foreign military forces

  (3) No tax is payable under section 21.24 on any amount charged for a taxable service acquired by a government of a country designated by the Governor in Council pursuant to heading No. 98.10 of Schedule I to the Customs Tariff, or acquired by a Canadian government agency on behalf of such a government, if the amount charged relates to telecommunication originating or terminating at a military or defence establishment in Canada.

• Marginal note:Relief from tax for certain provinces

  (4) No tax is payable under section 21.24 on any amount charged for a taxable service acquired by Her Majesty in right of a province, other than a province in respect of which there is in force at the time that the service is acquired a reciprocal taxation agreement referred to in section 32 of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act.

• Marginal note:Relief from tax for Indians

  (5) No tax is payable under section 21.24 on any amount charged for a taxable service acquired by an Indian or band within the meaning of subsection 2(1) of the Indian Act, if the amount charged is billed to the Indian or band at a reserve within the meaning of that subsection and relates to telecommunication originating or terminating at a reserve.

Marginal note:Relief from tax for licence holders under this Part

• 21.28 (1) No tax is payable under section 21.24 on any amount charged for a taxable service acquired by a person to whom a licence has been issued under subsection 21.3(2) for provision to another person or for use directly in providing another taxable service, other than a paging service, to another person.

• Marginal note:Relief from tax for licence holders under Part II.1

  (2) No tax is payable under section 21.24 on any amount charged for a taxable service acquired by a person to whom a licence has been issued under section 21.18 for use in providing, by means of telecommunication, a programming service within the meaning of subsection 21.1(1) to another person for an amount charged within the meaning of that subsection or in producing a programming service for such provision.

• Marginal note:Relief from tax for foreign telecommunications carriers

  (3) Subject to subsection (4), no tax is payable under section 21.24 on any amount charged for a taxable service acquired, by a telecommunications carrier who provides telecommunication service solely outside Canada, for provision to another person outside Canada or for use directly in providing another taxable service to another person outside Canada.

• Marginal note:Exception

  (4) Subsection (3) does not apply in respect of any telecommunication service between a place in Canada and a place outside Canada that is provided by means of a telecommunication line, channel or other facility that is dedicated to the sole use of a person.

Diversions

Marginal note:Diversions

• 21.29 (1) Where, pursuant to subsection 21.28(1) or (2), no tax is payable in respect of a taxable service by reason of the use for which the service is acquired (in this section referred to as the “relieved use”) and that service is subsequently diverted by the person acquiring it to any other use for which the service would not, at the time of the acquisition, have been so relieved, that person is liable to pay tax under this Part in respect of the amount charged that person for the service.

• Marginal note:Tax payable

  (2) The tax payable pursuant to subsection (1) is payable at the time the taxable service is diverted and shall be computed as the amount of tax that would have been payable at the time of the acquisition of the service for the relieved use had the service not been acquired for that use.

• Marginal note:Presumption

  (3) For the purposes of sections 21.32 and 21.33, the tax payable pursuant to subsection (1) shall be deemed to be a tax imposed by this Part that was collected or collectible by the person at the time of the diversion.

Licences

Marginal note:Application for licence

• 21.3 (1) Every telecommunications carrier who provides taxable services in Canada for an amount charged shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the first month, after December 31, 1987, in which that person so provides a taxable service.

• Marginal note:Issue of licence

  (2) The Minister may issue a licence for the purposes of this Part to any person applying therefor under subsection (1).

• Marginal note:Cancellation

  (3) The Minister may cancel a licence issued under subsection (2) if, in the Minister’s opinion, it is no longer required for the purposes of this Part.

Collection of Tax

Marginal note:Duty of licensee

• 21.31 (1) Every licensee is an agent of the Minister for the purpose of collecting taxes under this Part and as such shall

  • (a) levy and collect any taxes imposed by this Part on the amount charged for a taxable service acquired from the licensee;

  • (b) make adjustments in or refund any portion of the tax paid on the amount charged for a taxable service that has not been provided or has been only partially provided by the licensee; and

  • (c) make adjustments in or refund any portion of any tax that has been collected in error by the licensee.

• Marginal note:Election by licence holder to pay tax directly

  (2) Notwithstanding subsection (1), where a person, other than a person who provides a paging service and no other taxable service, to whom a licence has been issued under subsection 21.3(2) acquires a taxable service from another licensee and the acquisition is not relieved from tax pursuant to subsection 21.28(1) or (2), that person may, in lieu of paying to that other licensee any tax payable on the amount charged for the taxable service, elect to pay the tax directly to the Receiver General.

• Marginal note:Presumption

  (3) For the purposes of sections 21.32 and 21.33, where a person makes an election pursuant to subsection (2), the tax shall be deemed to be a tax imposed by this Part that was collected or collectible by that person at the time the tax became payable by that person.

• Marginal note:Debt due to Her Majesty

  (4) Every person who, being required by or pursuant to this Part to collect tax, fails to do so as required is liable to Her Majesty in right of Canada for the amount of the tax.

Returns and Remittance of Tax

Marginal note:Monthly return of taxes

• 21.32 (1) Every licensee shall make each month a true return, in the prescribed form and containing the prescribed information, of all amounts collected or collectible by the licensee by way of the tax imposed by this Part in the last preceding month.

• Marginal note:Nil return

  (2) Every licensee shall, if no amounts were collected or collectible by the licensee by way of the tax imposed by this Part in the last preceding month, make a return as required by subsection (1) stating that fact.

• Marginal note:Alternate periods for making returns

  (3) Notwithstanding subsections (1) and (2), the Minister may, by regulation,

  • (a) authorize any licensee to make a return in respect of any accounting period of not less than twenty-one days and not more than thirty-five days;

  • (b) authorize any licensee to make a return in respect of any period longer than one month but not longer than six months, if the amounts collected or collectible by the licensee by way of the tax imposed by this Part in the last preceding calendar year did not exceed four thousand eight hundred dollars; or

  • (c) authorize any licensee whose taxable services are predominantly limited to a seasonal period of operation to make a return in respect of any period longer than one month but not longer than six months, if the amounts collected or collectible by the licensee by way of the tax imposed by this Part in the equivalent period in the last preceding calendar year did not exceed an average of four hundred dollars per month throughout that equivalent period.

• Marginal note:Date for filing and remittance

  (4) Subject to subsection (8) and sections 21.33 and 79.2, the return required by this section shall be filed and the taxes on amounts charged for taxable services that are collected or collectible by a licensee shall be remitted

  • (a) in a case where the return is required to be made in accordance with subsection (1) or (2), not later than the last day of the first month succeeding that in which the amounts charged for the taxable service were paid or became payable to the licensee;

  • (b) in a case where the return is authorized to be made in accordance with a regulation made under paragraph (3)(a), not later than the last day of the first authorized accounting period following the end of the accounting period to which the return relates; and

  • (c) in a case where the return is authorized to be made in accordance with a regulation made under paragraph (3)(b) or (c), not later than the last day of the first month following the end of the period to which the return relates.

• Marginal note:Penalty and interest on default in remitting taxes

  (5) Subject to subsections (6) to (9), a licensee who defaults in remitting tax within the time prescribed by subsection (4), in addition to the amount in default, shall pay

  • (a) in the case of tax required to be remitted not later than the last day of a month, a penalty of one-half of one per cent and interest at the prescribed rate, in respect of each month or fraction of a month between that day and the day on which the total tax, penalty and interest outstanding is remitted, calculated on the total tax, penalty and interest outstanding in that month or fraction of a month; and

  • (b) in the case of tax required to be remitted not later than the last day of an accounting period, a penalty of one-half of one per cent and interest at the prescribed rate, in respect of each accounting period or fraction of an accounting period between that day and the day on which the total tax, penalty and interest outstanding is remitted, calculated on the total tax, penalty and interest outstanding in that accounting period or fraction of an accounting period.

• Marginal note:Minimum penalty and interest

  (6) No penalty or interest is payable under subsection (5) if the licensee remits all taxes collected or collectible by the licensee under this Part and, at the time of the remittance, the total penalty and interest payable is less than ten dollars.

• Marginal note:Time for paying penalty or interest

  (7) A licensee who is liable to pay penalty or interest under subsection (5) shall pay the penalty or interest not later than the last day of the month or accounting period in respect of which the penalty or interest was calculated.

• Marginal note:Extension

  (8) The Minister may, before or after the expiration of the time prescribed by subsection (4), extend in writing the time for filing a return or remitting any tax, and where the Minister so extends the time,

  • (a) the return shall be filed or the tax shall be remitted within the time as so extended;

  • (b) interest accrues under subsection (5) in respect of the tax as if the time had not been so extended;

  • (c) no penalty accrues or shall be deemed to have accrued under subsection (5) in respect of the tax before the expiration of the time as so extended; and

  • (d) penalty accrues under subsection (5) in respect of a default in remitting the tax or any portion thereof within the time as so extended as if the default were a default referred to in that subsection.

• Marginal note:Security

  (9) Where the Minister holds security under section 80.1 for the remittance of any tax under this Part that is not remitted within the time prescribed by subsection (4),

  • (a) interest accrues under subsection (5) in respect of the tax from the expiration of that time; and

  • (b) penalty accrues under subsection (5) only if the total tax, penalty and interest outstanding, as calculated in respect of each month or accounting period or fraction of a month or accounting period during which the default continues, exceeds the value of the security at the time it is accepted by the Minister and, if accruing, the penalty shall be calculated only on the amount of the excess.

Marginal note:Interpretation

• 21.33 (1) For the purposes of this section,

  • (a) a licensee’s “instalment base”

    • (i) for a month is the lesser of

      • (A) the tax imposed by this Part that was collected or collectible by that licensee in that month, and

      • (B) the tax so collected or collectible in the last preceding month,

    • (ii) for an accounting period is the lesser of

      • (A) the tax imposed by this Part that was collected or collectible by that licensee in that accounting period, and

      • (B) the tax so collected or collectible in the last preceding accounting period, and

    • (iii) for any other period to which a return relates is the lesser of

      • (A) the tax imposed by this Part that was collected or collectible by that licensee in that period, and

      • (B) the tax so collected or collectible in the last preceding period multiplied by the ratio that the number of days in the period to which the return relates is to the number of days in the last preceding period; and

  • (b) a licensee is a “large taxpayer” at any particular time if

    • (i) the aggregate amount of taxes payable under Parts II.1, III, IV and VI, other than taxes payable in accordance with the Customs Act, and collected or collectible under Part II and this Part by that licensee in the last preceding calendar year ending at least ninety days, or ninety-one days where that time falls in a leap year, before that time exceeded twelve million dollars, or

    • (ii) the licensee

      • (A) was, at any time in the last preceding calendar year ending at least ninety days, or ninety-one days where that time falls in a leap year, before that time, a member of a group of associated corporations (within the meaning of section 256 of the Income Tax Act) and the aggregate amount of taxes payable under Parts II.1, III, IV and VI, other than taxes payable in accordance with the Customs Act, and collected or collectible under Part II and this Part by the group in that year exceeded twelve million dollars, and

      • (B) is not, at that time, authorized to make a return in accordance with a regulation made under paragraph 21.32(3)(b) or (c).

• Marginal note:Instalment payments by large taxpayers

  (2) A large taxpayer who is required to file a return and remit tax within the time prescribed by subsection 21.32(4) shall pay instalments on account of the tax in accordance with the following rules:

  • (a) in the case where the return is required to be made in accordance with subsection 21.32(1), the large taxpayer shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the month in which the tax was collected or became collectible, the first to be paid not later than the last day of that month and the second not later than the fifteenth day of the next following month; and

  • (b) in the case where the return is authorized to be made in accordance with a regulation made under paragraph 21.32(3)(a), the large taxpayer shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the accounting period to which the return relates, the first to be paid not later than the last day of that accounting period and the second not later than the fifteenth day of the next following accounting period.

• Marginal note:Instalment payments by other licensees

  (3) A licensee, other than a large taxpayer, who is required to file a return and remit tax within the time prescribed by subsection 21.32(4) shall pay an instalment on account of the tax in accordance with the following rules:

  • (a) in the case where the return is required to be made in accordance with subsection 21.32(1), the licensee shall pay an instalment, equal to the licensee’s instalment base for the month in which the tax was collected or became collectible, not later than the twenty-first day of the next following month;

  • (b) in the case where the return is authorized to be made in accordance with a regulation made under paragraph 21.32(3)(a), the licensee shall pay an instalment, equal to the licensee’s instalment base for the accounting period to which the return relates, not later than the twenty-first day of the next following accounting period; and

  • (c) in the case where the return is authorized to be made in accordance with a regulation made under paragraph 21.32(3)(b) or (c), the licensee shall pay an instalment, equal to the licensee’s instalment base for the period to which the return relates, not later than the twenty-first day of the month next following the end of that period.

• Marginal note:Penalty and interest on default by large taxpayer in paying instalment

  (4) Subject to subsections (6) to (8), a large taxpayer who defaults in paying an instalment within the time prescribed by subsection (2) shall, in addition to the amount in default, pay in respect of the period between the end of that time and the end of the time prescribed for remittance of the tax on account of which the instalment was payable

  • (a) in the case of an instalment required to be paid not later than the last day of a month or an accounting period, a penalty of one-half of one per cent and interest at the prescribed rate, calculated on the amount by which

    • (i) one-half of the taxpayer’s instalment base for that month or accounting period

    exceeds

    • (ii) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day; and

  • (b) in the case of an instalment required to be paid not later than the fifteenth day of a month or an accounting period, a penalty of one-quarter of one per cent and interest at one-half of the prescribed rate, calculated on the amount by which

    • (i) one-half of the taxpayer’s instalment base for the last preceding month or accounting period

    exceeds

    • (ii) the amount by which the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day exceeds the lesser of

      • (A) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than the last day of the last preceding month or accounting period, and

      • (B) one-half of the taxpayer’s instalment base for the last preceding month or accounting period.

• Marginal note:Penalty and interest on default by other licensees in paying instalment

  (5) Subject to subsections (6) to (8), a licensee who defaults in paying an instalment within the time prescribed by subsection (3) shall, in addition to the amount in default, pay in respect of the period between the end of that time and the end of the time prescribed for remittance of the tax on account of which the instalment was payable

  • (a) in the case of an instalment required by paragraph (3)(a) or (b) to be paid not later than the twenty-first day of a month or an accounting period, a penalty of one-sixth of one per cent and interest at one-third of the prescribed rate, calculated on the amount by which

    • (i) the licensee’s instalment base for the last preceding month or accounting period

    exceeds

    • (ii) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day; and

  • (b) in the case of an instalment required by paragraph (3)(c) to be paid not later than the twenty-first day of a month next following the end of a period, a penalty of one-sixth of one per cent and interest at one-third of the prescribed rate, calculated on the amount by which

    • (i) the licensee’s instalment base for that period

    exceeds

    • (ii) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day.

• Marginal note:Minimum penalty and interest

  (6) No penalty or interest is payable under subsection (4) or (5) if the large taxpayer or other licensee liable to pay the instalment remits all taxes collected or collectible by the taxpayer or other licensee under this Part and, at the time of the remittance, the total penalty and interest payable in respect of the instalment is less than five dollars and in respect of all those taxes is less than ten dollars.

• Marginal note:Time for paying penalty or interest

  (7) A large taxpayer or other licensee who is liable to pay penalty or interest under subsection (4) or (5) in respect of a default in paying an instalment shall pay the penalty or interest within the time prescribed by subsection 21.32(4) for the remittance of the tax on account of which the instalment is payable.

• Marginal note:Extension

  (8) The Minister may, before or after the expiration of the time prescribed by subsection (2) or (3), extend in writing the time for paying an instalment, for any period within the time prescribed by subsection 21.32(4) for the remittance of the tax on account of which the instalment is payable, and where the Minister so extends the time

  • (a) the instalment shall be paid within the time as so extended;

  • (b) interest accrues under subsection (4) or (5), as the case may be, in respect of the instalment as if the time had not been so extended;

  • (c) no penalty accrues or shall be deemed to have accrued under subsection (4) or (5), as the case may be, in respect of the instalment before the expiration of the time as so extended; and

  • (d) penalty accrues under subsection (4) or (5), as the case may be, in respect of a default in paying an instalment within the time as so extended as if the default were a default referred to in that subsection.

Regulations

Marginal note:Regulations

21.34 The Governor in Council may make regulations

• (a) respecting the method for determining the reasonable amount charged for a taxable service for the purposes of section 21.25; and

• (b) generally for carrying out the purposes and provisions of this Part.

PART IIIExcise Taxes on Cosmetics, Jewellery, Radios, Etc.

Marginal note:Definitions

• 22 (1) In this Part,

  duty paid value

  duty paid value means the value of the article as it would be determined for the purpose of calculating an ad valorem duty on the importation of that article into Canada under the laws relating to the customs and the Customs Tariff whether that article is in fact subject to ad valorem or other duty or not, plus the amount of the customs duties, if any, payable thereon; (valeur à l’acquitté)

  licensed wholesaler

  licensed wholesaler has the meaning assigned to that expression by section 42; (marchand en gros titulaire de licence)

  sale price

  sale price, for the purpose of determining the excise tax payable under this Part, means the aggregate of

  • (a) the amount charged as price before any amount payable in respect of any other tax under this Act is added thereto,

  • (b) any amount that the purchaser is liable to pay to the vendor by reason of or in respect of the sale in addition to the amount charged as price, whether payable at the same or any other time, including, without limiting the generality of the foregoing, any amount charged for, or to make provision for, advertising, financing, servicing, warranty, commission or any other matter, and

  • (c) the amount of excise duties payable under the Excise Act whether the goods are sold in bond or not. (prix de vente)

• Marginal note:Calculation of sale price and duty paid value

  (2) For the purpose of determining the excise tax payable under this Part

  • (a) in calculating the sale price of goods manufactured or produced in Canada, there shall be included the amount charged as price for or in respect of the wrapper, package, box, bottle or other container in which the goods are contained; and

  • (b) in calculating the duty paid value of imported goods that, when imported, are wrapped, packaged, put up in boxes or bottles or otherwise prepared for sale, there shall be added to the value of the goods as determined in the manner prescribed in this Part the value, similarly determined, of the wrapper, package, box, bottle or other container in which the goods are contained.

Marginal note:Tax on various articles at schedule rates

• 23 (1) Subject to subsections (6) to (8), whenever goods mentioned in Schedule I are imported or are manufactured or produced in Canada and delivered to a purchaser of those goods, there shall be imposed, levied and collected, in addition to any other duty or tax that may be payable under this or any other law, an excise tax in respect of the goods at the applicable rate set out in the applicable section of that Schedule, computed, if that rate is specified as a percentage, on the duty paid value or the sale price, as the case may be.

• Marginal note:By whom and when tax is payable

  (2) Where goods are imported, the excise tax imposed by subsection (1) shall be paid in accordance with the provisions of the Customs Act by the importer, owner or other person liable to pay duties under that Act, and where goods are manufactured or produced and sold in Canada, the excise tax shall be payable by the manufacturer or producer at the time of delivery of the goods to the purchaser thereof.

• Marginal note:Deemed sale and delivery to purchaser

  (3) For the purposes of subsection (2),

  • (a) where gasoline or diesel fuel is delivered to a retail outlet by or on behalf of the manufacturer or producer thereof, the gasoline or diesel fuel shall be deemed to have been sold and delivered to a purchaser thereof; and

  • (b) where gasoline, diesel fuel or aviation fuel was, immediately prior to March 1, 1987, held in inventory by or on behalf of a person described in paragraph (e) of the definition manufacturer or producer in subsection 2(1) as that subsection read immediately prior to March 1, 1987, who was a licensed manufacturer under this Act of gasoline, diesel fuel or aviation fuel solely by virtue of that paragraph, and the excise tax thereon had not been paid or become payable on or before February 28, 1987, the gasoline, diesel fuel or aviation fuel shall be deemed to have been sold and delivered to a purchaser thereof immediately prior to March 1, 1987.

• Marginal note:Deemed sale

  (3.1) For the purposes of this Part, a person who, under a contract for labour, manufactures or produces goods mentioned in Schedule I from any article or material supplied by another person, other than a manufacturer licensed for the purposes of this Part, for delivery to that other person is deemed to have sold the goods, at a sale price equal to the charge made under the contract in respect of the goods, at the time they are delivered to that other person.

• Marginal note:Tax on resale by licensed wholesaler of Schedule I goods

  (4) Whenever goods mentioned in Schedule I are sold by a licensed wholesaler or are retained for the licensed wholesaler’s own use or for rental by the licensed wholesaler to others, there shall be imposed, levied and collected, in addition to any other duty or tax payable under this Act or any other Act or law, an excise tax in respect of those goods at the applicable rate set out in the applicable section in that Schedule, computed, where that rate is specified as a percentage, on the duty paid value or the price at which the goods were purchased by the licensed wholesaler, as the case may be, payable by the licensed wholesaler at the time the goods are delivered to the purchaser or so retained for use or rental.

• (5) [Repealed, 2002, c. 22, s. 367]

• Marginal note:When tax not payable

  (6) The tax imposed by subsection (1) is not payable in the case of goods mentioned in Schedule I that are purchased or imported by a licensed wholesaler for resale by him.

• Marginal note:When tax not payable

  (7) The tax imposed under subsection (1) is not payable in the case of

  • (a) goods that are purchased or imported by a manufacturer licensed for the purposes of this Part and that are to be incorporated into and form a constituent or component part of an article or product that is subject to excise tax under this Act, if the tax on the article or product has not yet been levied under this section; or

  • (b) the sale of a new motor vehicle designed for highway use, or a chassis for such a vehicle, to a person described in paragraph (h) of the definition manufacturer or producer in subsection 2(1) who is a manufacturer licensed for the purposes of this Part.

• Marginal note:Tax not payable

  (8) The tax imposed under subsection (1) is not payable in the case of

  • (a) goods that are purchased or imported by a licensed wholesaler who is deemed by subsection 55(2) to be a bona fide wholesaler or jobber for resale by him;

  • (b) goods for which relief from the consumption or sales tax is provided by virtue of section 12 or 13 of Part III of Schedule III or section 1 of Part VII of Schedule III;

  • (b.1) goods imported into Canada and classified under tariff item No. 9804.30.00 of Schedule I to the Customs Tariff;

  • (b.2) manufactured tobacco imported into Canada by an individual for their personal use if it is stamped in accordance with the Excise Act and duty has been imposed on it under section 200 of that Act; or

  • (c) diesel fuel for use in the generation of electricity, except where the electricity so generated is used primarily in the operation of a vehicle.

• (8.1) to (8.3) [Repealed, 2002, c. 22, s. 367]

• Marginal note:Diversion to taxable sale or use

  (9) Where gasoline or aviation gasoline has been purchased by a person to whom a bulk permit has been issued under regulations made by the Governor in Council pursuant to subsection 59(3) for a use by such person that renders the purchase exempt from a portion of the tax imposed by this section equal to one and one-half cents per litre and that person sells the gasoline or aviation gasoline or uses it for a purpose for which it could not have been purchased by him exempt from such portion of the tax at the time he purchased it, the portion of the tax that would have been payable at the time he purchased it equal to one and one-half cents per litre of gasoline or aviation gasoline shall be payable by that person at the time he so sells or uses the gasoline or aviation gasoline.

• Marginal note:Idem

  (9.1) Where fuel other than aviation gasoline has been purchased or imported for a use for which the tax imposed under this Part on diesel fuel or aviation fuel is not payable and the purchaser or importer sells or appropriates the fuel for a purpose for which the fuel could not have been purchased or imported without payment of the tax at the time he purchased or imported it, the tax imposed under this Part on diesel fuel or aviation fuel shall be payable by the person who sells or appropriates the fuel

  • (a) where the fuel is sold, at the time of delivery to the purchaser; and

  • (b) where the fuel is appropriated, at the time of that appropriation.

• (9.2) and (9.3) [Repealed, 2002, c. 22, s. 367]

• Marginal note:Appropriation by manufacturer or producer

  (10) If goods of any class mentioned in Schedule I that were manufactured or produced in Canada are appropriated by the manufacturer or producer for their own use, for the purposes of this Part,

  • (a) the goods shall be deemed to have been delivered to a purchaser thereof at the time of the appropriation; and

  • (b) the sale price of the goods shall be deemed to be equal to the sale price that would have been reasonable in the circumstances if the goods had been sold at that time to a person with whom the manufacturer or producer was dealing at arm’s length.

• Marginal note:Person deemed manufacturer or producer

  (11) Where a person has, in Canada,

  • (a) put a clock or watch movement into a clock or watch case,

  • (b) put a clock or watch movement into a clock or watch case and added a strap, bracelet, brooch or other accessory thereto, or

  • (c) set or mounted one or more diamonds or other precious or semi-precious stones, real or imitation, in a ring, brooch or other article of jewellery,

  he shall, for the purposes of this Part, be deemed to have manufactured or produced the watch, clock, ring, brooch or other article of jewellery in Canada.

Marginal note:Definitions

• 23.01 (1) The definitions in this subsection apply in this section.

  fuel

  fuel means gasoline, diesel fuel and aviation fuel. (combustible)

  temperature compensated method

  temperature compensated method means the method involving the measurement of the volume of fuel in litres that are corrected to the reference temperature of 15 degrees Celsius in accordance with the requirements imposed by or under the Weights and Measures Act. (méthode fondée sur la compensation de la température)

  uncompensated method

  uncompensated method means the method involving the measurement of the volume of fuel in litres that are not corrected to a reference temperature. (méthode traditionnelle)

• Marginal note:Measurement of fuel volume

  (2) For the purposes of determining the tax imposed under subsection 23(1) in respect of fuel, the volume of the fuel shall be measured in accordance with

  • (a) the temperature compensated method, where that method is used by the manufacturer or producer of the fuel for the purpose of establishing the amount of fuel delivered and charged to the purchaser, or by the importer of the fuel to establish the amount of fuel imported; or

  • (b) the uncompensated method, where that method is used by the manufacturer or producer of the fuel for the purpose of establishing the amount of fuel delivered and charged to the purchaser, or by the importer of the fuel to establish the amount of fuel imported.

• Marginal note:Measurement of fuel volume — licensed wholesalers

  (3) For the purposes of determining the tax imposed under subsection 23(4) in respect of fuel sold by a licensed wholesaler, the volume of the fuel shall be measured in accordance with

  • (a) the temperature compensated method, where that method is used by the licensed wholesaler for the purpose of establishing the amount of fuel delivered and charged to the purchaser; or

  • (b) the uncompensated method, where that method is used by the licensed wholesaler for the purpose of establishing the amount of fuel delivered and charged to the purchaser.

23.1 [Repealed, 2002, c. 22, s. 368]

23.11 [Repealed, 2002, c. 22, s. 368]

23.12 [Repealed, 2002, c. 22, s. 368]

23.13 [Repealed, 2002, c. 22, s. 368]

23.2 [Repealed, 2001, c. 16, s. 18]

23.21 [Repealed, 2001, c. 16, s. 19]

23.22 [Repealed, 2001, c. 16, s. 20]

23.3 [Repealed, 2002, c. 22, s. 368]

23.31 [Repealed, 2002, c. 22, s. 417]

• 23.32 [Repealed, 2002, c. 22, s. 417]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 6
  • 1997, c. 26, s. 62
  • 2000, c. 30, s. 5
  • 2001, c. 16, s. 23
  • 2002, c. 22, s. 417

23.33 [Repealed, 2001, c. 16, s. 24]

• 23.34 [Repealed, 2001, c. 16, s. 24]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 6
  • 1995, c. 36, s. 3
  • 1997, c. 26, s. 64
  • 2000, c. 30, ss. 6, 140
  • 2001, c. 16, s. 24

• 23.341 [Repealed, 2001, c. 16, s. 24]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1995, c. 36, s. 4
  • 1997, c. 26, s. 65
  • 1998, c. 21, s. 80
  • 2000, c. 30, s. 7
  • 2001, c. 16, s. 24

23.35 [Repealed, 2002, c. 22, s. 417]

23.36 [Repealed, 2001, c. 16, s. 26]

Marginal note:Definition of “alcohol”

• 23.4 (1) In this section, alcohol means ethanol and methanol produced from biomass or renewable feedstocks, but does not include ethanol or methanol produced from petroleum, natural gas or coal.

• Marginal note:Where excise tax not payable on gasoline-alcohol

  (2) Where gasoline or aviation gasoline has been blended with alcohol to produce a gasoline-alcohol fuel, or an aviation gasoline-alcohol fuel, containing not less than 1.35% alcohol by volume, the excise tax imposed under section 23 on gasoline or aviation gasoline is not payable on the portion of the gasoline-alcohol fuel or aviation gasoline-alcohol fuel that is equal to the percentage by volume of alcohol in the fuel.

• Marginal note:Where excise tax not payable on diesel-alcohol

  (3) Where diesel fuel has been blended with alcohol to produce a diesel-alcohol fuel, the excise tax imposed under section 23 on diesel fuel is not payable on the portion of the diesel-alcohol fuel that is equal to the percentage by volume of alcohol in the fuel.

Definition of bio-diesel fuel

• 23.5 (1) In this section, bio-diesel fuel means a diesel fuel that is produced from waste materials, or feedstocks, of biological origin and not from petroleum, natural gas or coal.

• Marginal note:Excise tax not payable on bio-diesel fuel

  (2) The excise tax imposed under section 23 on diesel fuel is not payable on bio-diesel fuel.

• Marginal note:Where excise tax not payable on bio-diesel blended with diesel

  (3) Where diesel fuel has been blended with bio-diesel fuel to produce a diesel-bio-diesel fuel, the excise tax imposed under section 23 on diesel fuel is not payable on the portion of the diesel-bio-diesel fuel that is equal to the percentage by volume of bio-diesel fuel in the fuel.

Marginal note:Security that true returns rendered

24 For the purposes of this Part, the Minister may require every manufacturer or producer to give security that they will render true returns of their sales as required by section 78 or by any regulations made under it and pay any tax imposed by this Act on the sales. The security shall be in an amount of not more than two hundred and fifty thousand dollars and not less than one thousand dollars and shall be by bond of a guarantee company authorized to do business in Canada, acceptable to the Government of Canada, or by deposit of Government of Canada bonds.

PART IV

[Repealed, 2002, c. 22, s. 370]

25 [Repealed, 2002, c. 22, s. 370]

26 [Repealed, 1990, c. 45, s. 6]

27 [Repealed, 2002, c. 22, s. 370]

28 [Repealed, 2002, c. 22, s. 370]

28.1 [Repealed, 2002, c. 22, s. 370]

PART V

[Repealed, 2002, c. 22, s. 370]

29 [Repealed, 2002, c. 22, s. 370]

30 [Repealed, 2002, c. 22, s. 370]

31 [Repealed, 2002, c. 22, s. 370]

32 [Repealed, 2002, c. 22, s. 370]

33 [Repealed, 2002, c. 22, s. 370]

34 [Repealed, 2002, c. 22, s. 370]

PART V.1

[Repealed, 2000, c. 30, s. 10]

PART VIConsumption or Sales Tax

Interpretation

Marginal note:Definitions

42 In this Part,

duty paid value

duty paid value means the value of the article as it would be determined for the purpose of calculating an ad valorem duty on the importation of the article into Canada under the laws relating to the customs and the Customs Tariff whether the article is in fact subject to ad valorem or other duty or not, plus the amount of the customs duties, if any, payable thereon; (valeur à l’acquitté)

licensed manufacturer

licensed manufacturer means any manufacturer or producer licensed under this Part; (fabricant titulaire de licence)

licensed wholesaler

licensed wholesaler means any wholesaler, jobber or other dealer licensed under this Part; (marchand en gros titulaire de licence)

partly manufactured goods

partly manufactured goods means

• (a) goods that are to be incorporated into or form a constituent or component part of an article that is subject to the consumption or sales tax, if the tax on the article has not yet been levied pursuant to section 50, or

• (b) goods that are to be prepared for sale as goods subject to the consumption or sales tax by assembling, blending, mixing, cutting to size, diluting, bottling, packaging or repackaging the goods or by applying coatings or finishes to the goods, other than goods that are so prepared in a retail store for sale in that store exclusively and directly to consumers,

and the Minister is the sole judge as to whether or not goods are partly manufactured goods; (marchandises partiellement fabriquées)

producer or manufacturer

producer or manufacturer includes any printer, publisher, lithographer, engraver or commercial artist, but does not include, for the purposes of this Part and the Schedules, any restaurateur, caterer or other person engaged in the business of preparing in a restaurant, centralized kitchen or similar establishment food or drink, whether or not the food or drink is for consumption on the premises; (producteur ou fabricant)

sale price

sale price, for the purpose of determining the consumption or sales tax, means

• (a) except in the case of wines, the aggregate of

  • (i) the amount charged as price before any amount payable in respect of any other tax under this Act is added thereto,

  • (ii) any amount that the purchaser is liable to pay to the vendor by reason of or in respect of the sale in addition to the amount charged as price, whether payable at the same or any other time, including, without limiting the generality of the foregoing, any amount charged for, or to make provision for, advertising, financing, servicing, warranty, commission or any other matter, and

  • (iii) the amount of the excise duties payable under the Excise Act whether the goods are sold in bond or not,

  and, in the case of imported goods, the sale price shall be deemed to be the duty paid value thereof, and

• (b) in the case of wines, the aggregate of

  • (i) the amount charged as price including the amount of the excise tax payable pursuant to section 27,

  • (ii) any amount that the purchaser is liable to pay to the vendor by reason of or in respect of the sale in addition to the amount charged as price, whether payable at the same or any other time, including, without limiting the generality of the foregoing, any amount charged for, or to make provision for, advertising, financing, servicing, warranty, commission or any other matter, and

  • (iii) the amount of excise duties payable under the Excise Act whether the goods are sold in bond or not,

  and, in the case of imported wines, the sale price shall be deemed to be the aggregate of the duty paid value thereof and the amount of the excise tax payable pursuant to section 27. (prix de vente)

Marginal note:Person deemed manufacturer or producer

43 Where a person has, in Canada,

• (a) put a clock or watch movement into a clock or watch case,

• (b) put a clock or watch movement into a clock or watch case and added a strap, bracelet, brooch or other accessory thereto, or

• (c) set or mounted one or more diamonds or other precious or semi-precious stones, real or imitation, in a ring, brooch or other article of jewellery,

he shall, for the purposes of this Part, be deemed to have manufactured or produced the watch, clock, ring, brooch or other article of jewellery in Canada.

Marginal note:Manufacturer of beverages in retail outlet deemed not to be manufacturer

43.1 Where a person manufactures or produces in a retail outlet carbonated beverages or non-carbonated fruit flavoured beverages, other than alcoholic beverages, having less than twenty-five per cent by volume of natural fruit, for sale in that outlet exclusively and directly to consumers for immediate consumption, he shall, for the purposes of this Part, be deemed not to be, in relation to any such beverage so manufactured or produced by him, the manufacturer or producer thereof.

44 [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 15]

Marginal note:Retreader of tires deemed manufacturer

45 A person engaged in the business of retreading tires shall, for the purposes of this Part, be deemed to be the manufacturer or producer of tires retreaded by him, and tires retreaded by him for or on behalf of any other person shall be deemed to be sold, at the time they are delivered to that other person, at a sale price equal to the retreading charge.

Marginal note:Deemed sale

45.1 For the purposes of this Part, a person who, pursuant to a contract for labour, manufactures or produces goods from any article or material supplied by another person, other than a licensed manufacturer, for delivery to that other person shall be deemed to have sold the goods, at a sale price equal to the charge made under the contract in respect of the goods, at the time they are delivered to that other person.

Marginal note:Calculation of sale price and duty paid value

46 For the purpose of determining the consumption or sales tax payable under this Part,

• (a) in calculating the sale price of goods manufactured or produced in Canada, there shall be included the amount charged as price for or in respect of

  • (i) the wrapper, package, box, bottle or other container in which the goods are contained, and

  • (ii) any other goods contained in or attached to the wrapper, package, box, bottle or other container;

• (b) in calculating the duty paid value of imported goods that, when imported, are wrapped, packaged, put up in boxes or bottles or otherwise prepared for sale, there shall be added to the value of the goods as determined in the manner prescribed in this Part the value, similarly determined, of the wrapper, package, box, bottle or other container in which the goods are contained; and

• (c) in calculating the sale price of goods manufactured or produced in Canada, there may be excluded

  • (i) any fees paid to the Government of Canada or the government of a province for the inspection, marking, stamping or certification thereof in respect of capacity, accuracy, standard or safety, if the fees are shown as separate items on the manufacturers’ sales invoices, and

  • (ii) under such circumstances as the Governor in Council may, by regulation, prescribe, an amount representing

    • (A) the cost of erection or installation of the goods incurred by the manufacturer or producer where the goods are sold at a price that includes erection or installation, or

    • (B) the cost of transportation of the goods incurred by the manufacturer or producer in transporting the goods between premises of the manufacturer or producer in Canada, or in delivering the goods from the premises of the manufacturer or producer in Canada to the purchaser, where the goods are sold at a price that includes those costs of transportation,

    determined in such manner as the Governor in Council may, by regulation, prescribe.

Marginal note:Deemed manufacturer of photographic prints, etc.

47 Where a person has, in Canada,

• (a) processed exposed photographic film supplied by a customer to make a negative, transparency, photographic print or other photographic related good,

• (b) produced or manufactured a negative, transparency, photographic print or other photographic related good from any good supplied by a customer, or

• (c) sold a right to the processing, production or manufacture by him of goods described in paragraph (a) or (b),

he shall, for the purposes of this Part, be deemed to be the producer or manufacturer of the negative, transparency, photographic print or other photographic related good, and the goods shall be deemed to be sold

• (d) in the case mentioned in paragraph (a) or (b), at the time the goods are delivered to the customer, and

• (e) in the case mentioned in paragraph (c), at the time the right is sold,

and the charge made shall be deemed to be the sale price.

Marginal note:Application by manufacturer

• 48 (1) Any licensed manufacturer may make an application in writing to the Minister to be considered, for the purposes of this Act, as the manufacturer or producer of all other goods, in this section and section 49 referred to as “similar goods”, that the licensed manufacturer sells in conjunction with his sales of goods of his manufacture or production in Canada or that are of the same class as goods the licensed manufacturer manufactures or produces in Canada.

• Marginal note:Additional information

  (2) The Minister may at any time request an applicant under this section to supply additional information in respect of his application.

• Marginal note:Consideration of application

  (3) On receiving an application, the Minister shall decide whether to approve or reject the application and shall send to the applicant a notice in writing setting out his decision and, where the Minister approves the application, the date on and after which the approval is effective.

• Marginal note:Effect of approval

  (4) Subject to subsection 49(2), on and after the date set out in a notice of decision pursuant to subsection (3), the applicant shall be deemed to be the manufacturer or producer of all similar goods that the applicant sells and those goods shall be deemed to be

  • (a) at the time the applicant acquires them,

    • (i) for the purposes of this Part, partly manufactured goods, and

    • (ii) for the purposes of Part III, goods described in paragraph 23(7)(a); and

  • (b) thereafter, goods produced or manufactured in Canada.

Marginal note:Revocation of approval

• 49 (1) The Minister may at any time, and shall on request of the applicant, revoke any approval of an application given pursuant to subsection 48(3) and, where the Minister does so, he shall send to the applicant a notice in writing of the revocation setting out the date on and after which the revocation is effective.

• Marginal note:Effect of revocation

  (2) On and after the date set out in a notice of revocation pursuant to subsection (1),

  • (a) subsection 48(4) ceases to apply to the applicant; and

  • (b) all taxes imposed by this Act are payable, at the rate in force on that date, on any similar goods then in possession of the applicant that have been acquired free of tax by virtue of subsection 48(4) and shall be computed

    • (i) on the duty paid value of the goods, if they were imported by the applicant, or

    • (ii) on the price for which the goods were purchased by the applicant, if they were not imported by him, and the price shall include the amount of the excise duties on goods sold in bond.

• Marginal note:Presumption

  (2.1) For the purposes of subparagraph (2)(b)(ii), where an applicant has purchased goods from, or property in goods has otherwise been transferred to an applicant by, a person with whom the applicant was not dealing at arm’s length at the time of the purchase or transfer for no price or for a price that was less than the price (in this subsection referred to as the “reasonable price”) that would have been reasonable in the circumstances if the applicant and that person had been dealing at arm’s length at that time, the applicant shall be deemed to have purchased the goods at that time for a price equal to the reasonable price.

• Marginal note:Restriction on re-application

  (3) Where an application is rejected pursuant to subsection 48(3) or approval of an application is revoked pursuant to subsection (1), the applicant may not make an application under subsection 48(1) within two years after the date of the notice of decision or the date on and after which the revocation is effective, as the case may be.

Tax Imposed

Marginal note:Consumption or sales tax

• 50 (1) There shall be imposed, levied and collected a consumption or sales tax at the rate prescribed in subsection (1.1) on the sale price or on the volume sold of all goods

  • (a) produced or manufactured in Canada

    • (i) payable, in any case other than a case mentioned in subparagraph (ii) or (iii), by the producer or manufacturer at the time when the goods are delivered to the purchaser or at the time when the property in the goods passes, whichever is the earlier,

    • (ii) payable, in a case where the contract for the sale of the goods, including a hire-purchase contract and any other contract under which property in the goods passes on satisfaction of a condition, provides that the sale price or other consideration shall be paid to the manufacturer or producer by instalments (whether the contract provides that the goods are to be delivered or property in the goods is to pass before or after payment of any or all instalments), by the producer or manufacturer at the time each of the instalments becomes payable in accordance with the terms of the contract, and

    • (iii) payable, in a case where the goods are for use by the producer or manufacturer thereof, by the producer or manufacturer at the time the goods are appropriated for use;

  • (b) imported into Canada, payable in accordance with the provisions of the Customs Act by the importer, owner or other person liable to pay duties under that Act;

  • (c) sold by a licensed wholesaler, payable by him at the time of delivery to the purchaser, and the tax shall be computed

    • (i) on the duty paid value of the goods, if they were imported by the licensed wholesaler, or

    • (ii) on the price for which the goods were purchased by the licensed wholesaler, if they were not imported by him, which price shall include the amount of the excise duties on goods sold in bond; or

  • (d) retained by a licensed wholesaler for his own use or for rental by him to others, payable by the licensed wholesaler at the time the goods are put to his own use or first rented to others, and the tax shall be computed

    • (i) on the aggregate of the duty paid value of the goods and the amount of any taxes payable on the goods under section 27, if they were imported by the licensed wholesaler, or

    • (ii) on the aggregate of the price paid by the licensed wholesaler for the goods, the amount of any excise duties payable on the goods if sold in bond and the amount of any taxes payable on the goods under section 27, if they were not imported by the licensed wholesaler.

• Marginal note:Rates of tax

  (1.1) Tax imposed by subsection (1) is imposed

  • (a) in the case of wines, and goods on which a duty of excise is imposed under the Excise Act or would be if the goods were produced or manufactured in Canada, at the rate of nineteen per cent;

  • (b) in the case of goods enumerated in Schedule IV (Construction Materials and Equipment for Buildings), at the rate of nine per cent;

  • (c) in the case of regular gasoline, unleaded gasoline, premium leaded gasoline, premium unleaded gasoline and diesel fuel, at the rate set opposite the applicable item in Schedule II.1, adjusted according to subsection 50.1(1) and multiplied by the rate of tax specified in paragraph (d), expressed as a decimal number and multiplied by one hundred;

  • (c.1) in the case of goods imported into Canada and classified under tariff item No. 9804.30.00 of Schedule I to the Customs Tariff, at the rate of tax specified in paragraph (d); and

  • (d) in any other case, at the rate of thirteen and one-half per cent.

• Marginal note:Deemed sale and delivery of gasoline or diesel fuel

  (2) Notwithstanding subsection (1), where gasoline or diesel fuel is delivered to a retail outlet by or on behalf of the manufacturer or producer thereof, the gasoline or diesel fuel shall be deemed to have been sold and delivered to a purchaser thereof.

• Marginal note:Transitional

  (2.1) Notwithstanding subsection (1), where gasoline, diesel fuel or aviation fuel was, immediately prior to March 1, 1987, held in inventory by or on behalf of a person described in paragraph (e) of the definition manufacturer or producer in subsection 2(1), as that subsection read immediately prior to March 1, 1987, who was a licensed manufacturer under this Act of gasoline, diesel fuel or aviation fuel solely by virtue of that paragraph, and the consumption or sales tax thereon had not been paid or become payable on or before February 28, 1987, the gasoline, diesel fuel or aviation fuel shall be deemed to have been sold and delivered to a purchaser thereof immediately prior to March 1, 1987.

• (3) and (4) [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 16]

• Marginal note:Sales tax not payable on certain goods

  (5) Notwithstanding anything in subsection (1), the consumption or sales tax shall not be payable on goods

  • (a) sold by a licensed manufacturer to another licensed manufacturer if the goods are partly manufactured goods;

  • (b) imported by a licensed manufacturer if the goods are partly manufactured goods;

  • (c) imported by a licensed wholesaler otherwise than for his own use or for rental to others, on importation;

  • (d) sold by a licensed manufacturer to a licensed wholesaler otherwise than for his own use or for rental to others;

  • (e) sold by a licensed wholesaler to a licensed manufacturer if the goods are partly manufactured goods;

  • (f) sold by a licensed wholesaler to another licensed wholesaler, but if a licensed wholesaler sells goods to another licensed wholesaler at a price less than the value on which the tax would be computed under paragraph (1)(c), the vendor forthwith becomes liable to pay the tax on the difference between the value and his sale price;

  • (g) sold to or imported by a person described in paragraph (d) of the definition manufacturer or producer in subsection 2(1) who is a licensed manufacturer under this Act, if the goods are cosmetics;

  • (h) [Repealed, R.S., 1985, c. 12 (4th Supp.), s. 16]

  • (i) being new motor vehicles designed for highway use, or chassis therefor, imported by a person described in paragraph (g) of the definition manufacturer or producer in subsection 2(1) who is a manufacturer licensed for the purposes of this Part;

  • (j) being new motor vehicles designed for highway use, or chassis therefor, sold to a person described in paragraph (h) of the definition manufacturer or producer in subsection 2(1) who is a manufacturer licensed for the purposes of this Part;

  • (k) sold to or imported by a person described in paragraph (i) of the definition manufacturer or producer in subsection 2(1) who is a licensed manufacturer under this Act, if the goods are goods enumerated in Schedule III.1; or

  • (l) sold or leased to, or imported by, a person described in paragraph (j) of the definition manufacturer or producer in subsection 2(1) who is a licensed manufacturer under this Act, if the goods are prerecorded video cassettes that are new or have not been used in Canada.

• Marginal note:Where exemption not applicable

  (6) Where any person, other than the manufacturer or producer, importer, owner, licensed wholesaler or jobber mentioned in this section, acquires from or against any one of those persons the right to sell any goods, whether as a result of the operation of law or of any transaction not taxable under this section, the sale of the goods by him shall be taxable as if made by the manufacturer or producer, importer, owner, licensed wholesaler or jobber, as the case may be, and the person so selling is liable to pay the tax.

• Marginal note:Diversion of certain articles to non-exempt use, sale, etc.

  (7) Where a motor vehicle, tractor or aircraft or a ship or other marine vessel, or a machine or tool for operation by a motor vehicle or tractor or a part or equipment for an aircraft or ship or other marine vessel

  • (a) has been purchased or imported by a person for a use by that person that renders the purchase or importation exempt from tax imposed under this Part and Part III or either of those Parts, or

  • (b) has been purchased as described in subsection 68.19(1),

  the following rules apply:

  • (c) if within five years of the time the article was first purchased or, if imported, released under the Customs Act for a use rendering the purchase or release exempt from tax imposed under this Part and Part III or either of those Parts, the article is applied to any use, other than of a casual nature, for which it could not, at the time of such first purchase, have been purchased or released exempt from the tax, the article shall be deemed to have been sold at the time of its first application to that use and tax imposed under this Part and Part III or either of those Parts, shall be imposed, levied and collected at the time of its first application to that use,

    • (i) in the case of an article mentioned in Schedule I having a specific rate of tax set opposite the item, at the lesser of the specific rate applicable at that time, and the specific rate, if any, applicable in the case of the article at the time the article was first purchased or imported for a use rendering the purchase or importation exempt from the tax or taxes, and

    • (ii) in any other case, on the sale price that would have been reasonable in the circumstances if the article had been sold, at the time of its first application to that use, to a person with whom the person so applying the article was dealing at arm’s length,

    payable by the owner of the article at the time of its first application to the use rendering it subject to tax; and

  • (d) if within five years of the time the article was first purchased or, if imported, released under the Customs Act for a use rendering the purchase or release exempt from tax imposed under this Part and Part III or either of those Parts, the article is sold or leased, the article shall be deemed to have been sold at the time of the sale or lease and tax imposed under this Part and Part III or either of those Parts, shall, if applicable, be imposed, levied and collected at the time of the sale or lease,

    • (i) in the case of an article mentioned in Schedule I having a specific rate of tax set opposite the item, at the lesser of the specific rate applicable at that time, and the specific rate, if any, applicable in the case of the article at the time the article was first purchased or imported for a use rendering the purchase or importation exempt from the tax or taxes, and

    • (ii) in any other case,

      • (A) where the article was sold, on the sale price, or

      • (B) where the article was leased by a person to another person, on the sale price that would have been reasonable in the circumstances if the article had been sold, at the time of the lease, to that other person,

    payable by the person who sold or leased the article.

• Marginal note:Diversion of fuel

  (8) Where fuel that has been purchased or imported for heating or lighting is sold or appropriated by the purchaser or importer for a purpose for which the fuel could not have been purchased or imported exempt from tax under this Part at the time of the purchase or importation, the tax imposed under this Part shall be payable by the purchaser or importer

  • (a) where the fuel is sold, at the time of delivery to the person to whom it is sold, computed at the rate of tax in force at that time

    • (i) in the case of gasoline or diesel fuel, on the volume sold, and

    • (ii) in any other case, on the sale price; and

  • (b) where the fuel is appropriated, at the time of the appropriation, computed at the rate of tax in force at that time

    • (i) in the case of gasoline or diesel fuel, on the volume appropriated, and

    • (ii) in any other case, on the sale price that would have been reasonable in the circumstances if the fuel had been sold, at that time, to a person with whom the purchaser or importer was dealing at arm’s length.

• (9) [Repealed, 2002, c. 22, s. 372]

Marginal note:Adjustment of rates of tax on certain petroleum products

• 50.1 (1) Commencing on April 1, 1986, the rates enumerated in Schedule II.1 shall be adjusted each January 1, April 1, July 1 and October 1, so that the rates applicable during the three month period commencing on the adjustment day are equal to the amounts obtained

  • (a) by multiplying

    • (i) the rates so enumerated

    by

    • (ii) the ratio, adjusted or altered in the manner prescribed pursuant to subsection (3) and rounded to the nearest one-thousandth or, where the ratio is equidistant from two one-thousandths, to the greater thereof, that

      • (A) the Industrial Product Price Index for Motor Gasoline, in the case of the rates enumerated in sections 1 and 2 of Schedule II.1, or

      • (B) the Industrial Product Price Index for Diesel Oil, in the case of the rate enumerated in section 5 of Schedule II.1,

      for the twelve month period ending on the day before the three month period immediately preceding the adjustment day bears to

      • (C) the Industrial Product Price Index for Motor Gasoline, in the case of the rates enumerated in sections 1 and 2 of Schedule II.1, or

      • (D) the Industrial Product Price Index for Diesel Oil, in the case of the rate enumerated in section 5 of Schedule II.1,

      for the twelve month period ending on September 30, 1985; and

  • (b) by rounding the product obtained under paragraph (a) to the nearest one hundred-thousandth of a dollar or, if the product is equidistant from two one-hundred-thousandths of a dollar, to the greater thereof.

• Marginal note:Industrial Product Price Index

  (2) For the purposes of subsection (1), the Industrial Product Price Index for Motor Gasoline, or the Industrial Product Price Index for Diesel Oil, for a twelve month period is the result obtained

  • (a) by aggregating the most recent Industrial Product Price Index for Motor Gasoline or the most recent Industrial Product Price Index for Diesel Oil, as the case may be, for each month in the period, including the relevant data for the period from January 1, 1981 to December 31, 1985, released by Statistics Canada under the authority of the Statistics Act on or before the fifteenth day of the third month following the end of that period and adjusted or altered in the manner prescribed pursuant to subsection (3);

  • (b) by dividing the aggregate obtained under paragraph (a) by twelve; and

  • (c) by rounding the result obtained under paragraph (b) to the nearest one-thousandth or, if the result obtained is equidistant from two one-thousandths, to the greater thereof.

• Marginal note:Adjustment regulations

  (3) The Governor in Council, on the recommendation of the Minister of Finance, may make regulations

  • (a) prescribing the manner in which the ratio referred to in subparagraph (1)(a)(ii) shall be adjusted or altered; and

  • (b) prescribing, for the purposes of subsection (2), the manner in which the Industrial Product Price Index for Motor Gasoline or the Industrial Product Price Index for Diesel Oil for any month shall be adjusted or altered.

• Marginal note:Definition of terms

  (4) The Governor in Council may, by regulation, define the terms regular gasoline, unleaded gasoline, premium leaded gasoline and premium unleaded gasoline for the purposes of paragraph 50(1.1)(c) and of Schedule II.1.

Marginal note:Goods exempted

• 51 (1) The tax imposed by section 50 does not apply to the sale or importation of the goods mentioned in Schedule III, other than those goods mentioned in Part XIII of that Schedule that are sold to or imported by persons exempt from consumption or sales tax under subsection 54(2).

• Marginal note:Articles partially exempted

  (2) The tax imposed by section 50 shall be imposed only on fifty per cent of the sale price if manufactured in Canada or fifty per cent of the duty-paid value if imported, of metric retail scales having a maximum weighing capacity of one hundred kilograms and specifically designed for the weighing of goods in retail operations, when sold or imported before January 1, 1984.

• Marginal note:Idem

  (3) The tax imposed by section 50 on the sale price of mobile homes and modular building units shall be imposed on only fifty per cent of the sale price thereof.

Marginal note:Appropriation by manufacturer or producer

• 52 (1) Where goods that were manufactured or produced in Canada are appropriated by the manufacturer or producer thereof for his own use, the sale price of the goods shall be deemed to be equal to the sale price that would have been reasonable in the circumstances if the goods had been sold, at the time of the appropriation, to a person with whom the manufacturer or producer was dealing at arm’s length.

• Marginal note:Exception

  (2) Subsection (1) does not apply in respect of goods, other than printed matter, manufactured by Her Majesty in right of Canada or a province (except goods manufactured by a company to which the Government Corporations Operation Act applies) for any purpose, other than

  • (a) sale;

  • (b) use by any board, commission, railway, public utility, university, manufactory, company or agency that is owned, controlled or operated by the Government of Canada or the government of a province or under the authority of Parliament or of the legislature of a province; or

  • (c) use by Her Majesty in right of Canada or a province or Her agents or servants for commercial or mercantile purposes.

• Marginal note:Lease or other disposal by manufacturer or producer

  (3) Where goods that were manufactured or produced in Canada are leased, or the right to use any such goods, but not the property therein, is sold or given, by the manufacturer or producer thereof to a person

  • (a) the goods shall be deemed to have been sold at the time the goods were so leased or the right to use them was so sold or given; and

  • (b) the sale price of the goods shall be deemed to be equal to the sale price that would have been reasonable in the circumstances if the goods had been sold at that time to that person.

• Marginal note:Royalty or other consideration

  (4) Where the sale price of goods consists in whole or in part of a royalty, or any other consideration, that is unascertained at the earlier of the time the goods are delivered or the property in the goods passes to the purchaser thereof, the sale price of the goods shall be deemed to be equal to the sale price that would have been reasonable in the circumstances if the whole of the consideration had been ascertained at that time.

• Marginal note:Disposal of cosmetics by licensed manufacturer

  (5) Where cosmetics were manufactured or produced in Canada by a licensed manufacturer for a non-resident person who is a person described in paragraph (d) of the definition manufacturer or producer in subsection 2(1) and who has failed to apply for a licence as required by section 54, the licensed manufacturer shall be deemed to have sold the cosmetics for a sale price equal to the sale price that would have been reasonable in the circumstances if the cosmetics had been sold in Canada, at the earlier of the time the cosmetics were delivered or the property in the cosmetics passed to that non-resident person, by that non-resident person to a third person with whom he was dealing at arm’s length.

• Marginal note:Disposal of video cassettes by licensed manufacturer

  (6) Where prerecorded video cassettes that are new or have not been used in Canada were manufactured or produced in Canada by a licensed manufacturer for a non-resident person who is a person described in paragraph (j) of the definition manufacturer or producer in subsection 2(1) and who has failed to apply for a licence as required by section 54, the licensed manufacturer shall be deemed to have sold the cassettes for a sale price equal to the sale price that would have been reasonable in the circumstances if the cassettes had been sold in Canada, at the earlier of the time the cassettes were delivered or property in the cassettes passed to that non-resident person, by that non-resident person to a third person with whom he was dealing at arm’s length.

53 [Repealed, R.S., 1985, c. 15 (1st Supp.), s. 21]

Licences

Marginal note:Manufacturers’ licences

• 54 (1) Subject to this section, every manufacturer or producer shall apply for a licence for the purposes of this Part.

• Marginal note:Exemption

  (2) The Minister may grant a licence to any person applying therefor under subsection (1), but the Governor in Council, on the joint recommendation of the Minister of Finance and the Minister of National Revenue, may make regulations exempting any class of small manufacturer or producer from payment of consumption or sales tax on goods manufactured or produced by persons who are members of the class and persons so exempted are not required to apply for a licence.

• Marginal note:Withdrawal of exemption

  (3) An exemption granted under subsection (2) may, on the joint recommendation of the Minister of Finance and the Minister of National Revenue, be withdrawn by the Governor in Council at any time.

• Marginal note:Cancellation

  (4) The Minister may cancel a licence issued under this Part if, in his opinion, it is no longer required for the purposes of this Part.

Marginal note:Licensed wholesaler or jobber

• 55 (1) A bona fide wholesaler or jobber may be granted a licence but, if a wholesaler was not in possession of a licence on September 1, 1938, no licence shall be issued to him unless he is engaged exclusively or mainly in the purchase and sale of lumber or unless fifty per cent of his sales for the three months immediately preceding his application were exempt from the sales tax under this Act.

• Marginal note:Duty free shops

  (2) A person who proposes to operate and sell goods exclusively at a duty free shop licensed as such under the Customs Act or who operates and sells goods exclusively at such a duty free shop shall be deemed, for the purposes of this section, to be a bona fide wholesaler or jobber, and the Minister may grant a licence to that person notwithstanding that he does not fulfil the requirements of subsection (1).

• Marginal note:Licensee to give security

  (3) A wholesaler or jobber applying for a licence under this section shall give security that the wholesaler or jobber and any person other than the wholesaler or jobber who acquires from or against him the right to sell any goods, whether as a result of the operation of law or of any transaction not taxable under this Act, shall keep adequate books or accounts for the purposes of this Act and shall render true returns of sales as required by this Act, or any regulations made under this Act, and pay any tax imposed by this Act on those sales.

• Marginal note:Amount of security

  (4) The security referred to in subsection (3) shall be for an amount of not more than twenty-five thousand dollars and not less than two thousand dollars.

• Marginal note:Bond

  (5) The security referred to in subsection (3) shall be by a bank or by bond of an incorporated guarantee company authorized to do business in Canada, acceptable to the Minister, or by deposit of bonds or other securities of or guaranteed by the Government of Canada.

• Marginal note:Form of bond

  (6) Where the security referred to in subsection (3) is by bond of a guarantee company, the bond shall be in form approved by the Minister.

Marginal note:Cancellation of licence

• 56 (1) The licence of any wholesaler or jobber who contravenes any requirement of this Part shall be cancelled forthwith and the wholesaler or jobber shall not be granted a licence within a period of two years after the date of the cancellation.

• Marginal note:Idem

  (2) The licence of any person deemed by subsection 55(2) to be a bona fide wholesaler or jobber shall be cancelled forthwith if he ceases to operate and sell goods exclusively at a duty free shop licensed as such under the Customs Act, and on cancellation of the licence pursuant to this section, all taxes imposed by this Act are forthwith payable on all goods then in the possession of the licensee that have been purchased free of tax by virtue of the licence.

• Marginal note:Tax on cancellation

  (3) On the cancellation under subsection (1) of the licence granted to any licensed wholesaler, or if the licence is cancelled at the request of the licensee, or if any such licence expires and is not renewed by the licensee, all taxes imposed by this Act are forthwith payable on all goods then in the possession of the licensee that have been purchased free of tax by virtue of the licence, which taxes shall be paid at the rate in force when the licence is cancelled or expires and is not renewed and shall be computed in accordance with paragraph 50(1)(c) and Part III.

• Marginal note:Cancellation of bond

  (4) Notwithstanding that a bond of a guarantee company given under section 55 has been cancelled, the bond shall be deemed to remain in force in relation to all goods in the possession of the licensed wholesaler at the time of cancellation.

Evasion

Marginal note:Powers of Minister

• 57 (1) Notwithstanding anything in this Part, if it appears to the Minister that payment of the consumption or sales tax is being evaded by a licensed manufacturer or licensed wholesaler, the Minister may require that the consumption or sales tax shall be imposed, levied and collected on any material specified by the Minister sold to any licensed manufacturer or licensed wholesaler or to any class of licensed manufacturers or licensed wholesalers specified by the Minister, at the time of sale of the material when produced or manufactured in Canada, or prior to release under the Customs Act if the material is imported by the licensed manufacturer or licensed wholesaler.

• Marginal note:Deduction

  (2) A deduction may be made, in respect of the tax imposed, levied and collected on material referred to in subsection (1), on submission by the licensed manufacturer or licensed wholesaler of proof that the material has been used in the manufacture of an article that is subject to the consumption or sales tax and on which the tax has been paid.

Marginal note:Deemed sale price

• 58 (1) Notwithstanding any other provision of this Act other than subsections 52(5) and (6), for the purposes of this Part and Part III, where goods that were manufactured or produced, or deemed to have been manufactured or produced, in Canada are sold or deemed to be sold, or the property therein is otherwise transferred, by the manufacturer or producer thereof to a person with whom the manufacturer or producer was not dealing at arm’s length at the earlier of the time the goods were delivered or property in the goods passed to that person for no sale price or for a sale price that is less than the sale price (in this subsection referred to as the “reasonable sale price”) that would have been reasonable in the circumstances if the manufacturer or producer and that person had been dealing at arm’s length at that time, the manufacturer or producer shall be deemed to have sold the goods at that time for the reasonable sale price.

• Marginal note:Idem

  (2) Notwithstanding any other provision of this Act, for the purposes of this Part and Part III, where a licensed wholesaler has purchased goods from, or property in goods has otherwise been transferred to a licensed wholesaler by, a person with whom the licensed wholesaler was not dealing at arm’s length at the earlier of the time the goods were delivered or property in the goods passed to the licensed wholesaler for no price or for a price that was less than the price (in this subsection referred to as the “reasonable price”) that would have been reasonable in the circumstances if the licensed wholesaler and that person had been dealing at arm’s length at that time and the goods were not imported by the licensed wholesaler, the licensed wholesaler shall be deemed to have purchased the goods at that time for a price equal to the reasonable price.

• Marginal note:Idem

  (3) Notwithstanding any other provision of this Act, for the purposes of this Part and Part III, where a person has purchased or imported goods as described in subsection 68.19(1) or for a use rendering the purchase or importation exempt from tax under Part III or this Part and that person, under circumstances rendering him liable to pay the tax imposed by Part III or this Part, sells the goods or is deemed to sell the goods, or the property therein is otherwise transferred, to another person with whom he was not dealing at arm’s length at the time of the sale or transfer for no sale price or for a sale price that is less than the sale price (in this subsection referred to as the “reasonable sale price”) that would have been reasonable in the circumstances if they had been dealing at arm’s length at that time, that person shall be deemed to have sold the goods at that time for the reasonable sale price.

PART VIIGeneral

Interpretation

Marginal note:Definitions

• 58.1 (1) In this Part,

  assessment

  cotisation

  assessment means an assessment under subsection 81.1(1) and includes a variation of an assessment and a reassessment; (cotisation)

  Board

  Board[Repealed, R.S., 1985, c. 47 (4th Supp.), s. 52]

  Department

  Department[Repealed, 1999, c. 17, s. 149]

  Deputy Minister

  Deputy Minister[Repealed, 1999, c. 17, s. 149]

  fiscal month

  mois d’exercice

  fiscal month means a fiscal month as determined under subsection 78(1); (mois d’exercice)

  month

  mois

  month means a period beginning on a particular day in a calendar month and ending on

  • (a) the day immediately before the day in the next calendar month that has the same calendar number as the particular day, or

  • (b) if the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month; (mois)

  Tribunal

  Tribunal

  Tribunal means the Canadian International Trade Tribunal established by subsection 3(1) of the Canadian International Trade Tribunal Act. (Tribunal)

• Marginal note:Same meaning

  (2) Words and expressions used in this Part in connection with a tax under any other Part have the same meaning as in that other Part unless the contrary intention appears.

• Marginal note:Remittance

  (3) Unless the contrary intention appears, any reference in this Part to “pay” or “payment”, in relation to taxes imposed under this Act, shall be construed as including, in relation to taxes imposed under Part II or II.2, a reference to “remit” or “remittance”, and other parts of speech and grammatical forms of those words shall be construed in a corresponding manner.

Regulations

Marginal note:Regulations

• 59 (1) The Minister of Finance or the Minister of National Revenue, as the case may be, may make such regulations as he deems necessary or advisable for carrying out the provisions of this Act.

• Marginal note:Delegation of powers

  (2) The Minister may authorize a designated officer or agent, or officer or agent of a designated class of officers or agents, to exercise powers or perform duties of the Minister, including judicial or quasi-judicial powers or duties, under this Act.

• (3) [Repealed, 1990, c. 45, s. 9]

• Marginal note:Regulations prescribing rate of interest

  (3.1) The Governor in Council may, on the recommendation of the Minister of Finance, make regulations prescribing a rate of interest or rules for determining a rate of interest for the purposes of this Act.

• Marginal note:Regulations

  (3.2) The Governor in Council may make regulations

  • (a) designating certain classes of goods as ships’ stores for use on board a conveyance of a prescribed class, including a class based on

    • (i) the physical attributes, functions or legal descriptions of conveyances,

    • (ii) areas within which conveyances voyage,

    • (iii) requirements, or limitations, related to voyages of conveyances, or

    • (iv) any combination of the bases mentioned in subparagraphs (i) to (iii); and

  • (b) limiting the quantity of goods referred to in paragraph (a) that may be used as described in that paragraph during any prescribed period or periods.

• Marginal note:Regulations respecting reasonable price

  (3.3) The Governor in Council may make regulations respecting the method for determining the reasonable sale price or reasonable price, as the case may be, for any goods for the purposes of subsections 23(10) and 49(2.1), subparagraphs 50(7)(c)(ii) and (d)(ii), subsection 50(8) and sections 52 and 58.

• Marginal note:Effect

  (3.4) A regulation made under this Act has effect from the day on which it is published in the Canada Gazette or at any later time that may be specified in the regulation, unless it provides otherwise and

  • (a) has a relieving effect only;

  • (b) corrects an ambiguous or deficient enactment that was not in accordance with the objects of this Act;

  • (c) is consequential on an amendment to this Act that is applicable before the day on which the regulation is published in the Canada Gazette; or

  • (d) gives effect to a budgetary or other public announcement, in which case the regulation shall not, unless paragraph (a), (b) or (c) applies, have effect before the day on which the announcement was made.

• Marginal note:Enforcement

  (4) The regulations shall be enforced in the same manner as any provision of this Act.

• Marginal note:Oaths and declarations

  (5) Any person designated by the Minister may receive or administer any oath or declaration required by this Act, or by any regulation made under this Act, and every person so designated has, with respect to any such oath or declaration, has all the powers of a commissioner for taking affidavits.

Stamps

Marginal note:Preparation and use of stamps

60 The Minister may direct the preparation and use of stamps for the purposes of this Act.

Marginal note:Cancellation

61 In any case in which an adhesive stamp is required to be cancelled, and no other method of cancellation is prescribed, the stamp shall be deemed to be cancelled if lines or marks are drawn across or impressed thereon so as effectually to render the stamp incapable of being used for any other instrument.

Marginal note:Liability

62 Every person who, being required by or pursuant to this Act to affix or cancel stamps, fails to do so as required is liable to Her Majesty for the amount of stamps he should have affixed or cancelled and that amount is recoverable in the Federal Court, or in any other court of competent jurisdiction as a debt due to Her Majesty.

Marginal note:Appointment of stamp vendors

• 63 (1) The Minister may appoint postmasters or other officers of the Crown to sell stamps prepared for the purposes of this Act and he may authorize other persons to be vendors who may purchase stamps so prepared for resale.

• Marginal note:Reduced price

  (2) The Governor in Council may by regulation fix a reduced price at which stamps prepared for the purposes of this Act may be sold to persons authorized by the Minister to be vendors under subsection (1).

Licences

Marginal note:Application for licence

• 64 (1) Every person who is required under Part III to pay taxes shall, from time to time as required under the regulations, apply for a licence in respect of that Part.

• Marginal note:Granting of licence and exemption

  (2) The Minister may grant a licence to any person applying therefor under subsection (1) and may, by regulation, exempt any person or class of persons from obtaining a licence under this section in respect of a specified Part, and any person who is a member of a class of small manufacturer or producer the members of which are exempted, pursuant to subsection 54(2), from payment of consumption or sales tax on goods manufactured or produced by them shall, whether or not he is a person or member of a class of persons exempted from obtaining a licence under this section, be exempt from payment of excise tax on goods manufactured or produced by him.

• Marginal note:Cancellation of licences

  (3) The Minister may cancel a licence issued under this section if, in his opinion, it is no longer required for the purposes of this Act.

Marginal note:Offence and punishment

65 Every person who fails to apply for a licence as required by this Act is guilty of an offence and liable to a fine not exceeding one thousand dollars.

Exported Goods

Marginal note:Exemption on exported goods

66 The tax imposed under this Act is not payable if evidence satisfactory to the Minister is produced to establish

• (a) that the goods in respect of which it is imposed have been exported from Canada by the manufacturer, producer or licensed wholesaler by whom the tax would otherwise be payable in accordance with any regulations made under this Act that are applicable to the goods; or

• (b) that the goods in respect of which it is imposed have been sold by the operator of a duty free shop and have been exported from Canada by the purchaser of the goods, in accordance with the regulations made under the Customs Act.

66.1 [Repealed, 2002, c. 22, s. 375]

Liability of the Crown

Marginal note:Taxes on goods imported by Crown

67 The tax imposed under Part III is applicable

• (a) to goods imported by Her Majesty in right of Canada; and

• (b) to goods imported by Her Majesty in right of a province.

Deductions, Refunds and Drawbacks

Marginal note:Payment where error

68 Where a person, otherwise than pursuant to an assessment, has paid any moneys in error, whether by reason of mistake of fact or law or otherwise, and the moneys have been taken into account as taxes, penalties, interest or other sums under this Act, an amount equal to the amount of those moneys shall, subject to this Part, be paid to that person if he applies therefor within two years after the payment of the moneys.

Marginal note:Payment where goods exported

• 68.1 (1) Where tax under this Act has been paid in respect of any goods and a person has, in accordance with regulations made by the Minister, exported the goods from Canada, an amount equal to the amount of that tax shall, subject to this Part, be paid to that person if that person applies therefor within two years after the export of the goods.

• (2) [Repealed, 2002, c. 22, s. 377, as amended by 2003, c. 15, s. 66]

• Marginal note:Exception

  (3) For greater certainty, no amount is payable to a person under subsection (1) in respect of tax paid on gasoline or diesel fuel transported out of Canada in the fuel tank of the vehicle that is used for that transportation.

Marginal note:Payment where adjustment

68.11 Where tax under Part II has been remitted by a licensed air carrier and the carrier has, in accordance with subsection 18(1), made an adjustment or refund in respect of the tax, an amount equal to the amount of that adjustment or refund shall, subject to this Part, be paid to that carrier if it applies therefor within two years after the adjustment or refund.

Marginal note:Payment where adjustment

68.12 Where tax under Part II.1 has been paid by a licensee in respect of any taxable service and the licensee has made an adjustment or refund of the amount charged because of an error or because the service was not provided, or was only partially provided, by the licensee, an amount equal to the proportion of the amount of that tax that the amount of the adjustment or refund is of the amount charged shall, subject to this Part, be paid to the licensee if he applies therefor within two years after the adjustment or refund.

Marginal note:Payment where licence subsequently issued

68.13 Where tax under Part II.1 has been paid by a licensee in respect of any taxable service and the person, in this section referred to as the “purchaser”, acquiring the service from the licensee

• (a) was required at the time the amount charged to the purchaser for the service was paid or payable, whichever is the earlier, to apply for a licence under that Part and was thereafter issued such a licence, and

• (b) provided the service, at a time when the purchaser was required to apply for a licence under that Part or held such a licence, to another person for an amount charged that was paid or payable, whichever is the earlier, at that time,

an amount equal to the proportion of the amount of that tax that the amount of the taxable sales of the service by the purchaser is of the amount of the total sales of the service by the purchaser shall, subject to this Part, be paid to the purchaser if he applies therefor within two years after the later of the time the service was provided by the purchaser and the time the licence was issued to the purchaser.

Marginal note:Payment where use by province

• 68.14 (1) Where tax under Part II.1 has been paid by a licensee in respect of any taxable service and Her Majesty in right of a province has acquired the service for any purpose other than

  • (a) provision to another person for an amount charged,

  • (b) use by any board, commission, railway, public utility, university, manufactory, company or agency owned, controlled or operated by the government of the province or under the authority of the legislature or the lieutenant governor in council of the province, or

  • (c) use by Her Majesty in that right, or by any agents or servants of Her Majesty in that right, for any commercial or mercantile purposes,

  an amount equal to the amount of that tax shall, subject to this Part, be paid either to that licensee or to Her Majesty in that right, as the case may require, if the licensee or Her Majesty applies therefor within two years after Her Majesty acquired the service.

• Marginal note:Exception

  (2) No amount shall be paid pursuant to subsection (1) to a licensee who provides a taxable service to Her Majesty in right of a province in respect of which there is in force at the time the service is provided a reciprocal taxation agreement referred to in section 32 of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act.

Marginal note:Definitions

• 68.15 (1) In this section,

  arm’s length sale

  arm’s length sale means the provision of a taxable service for an amount charged by a licensee to a person with whom the licensee is dealing at arm’s length at the time the service is provided; (vente sans lien de dépendance)

  fiscal period

  fiscal period means a fiscal period as determined for the purposes of the Income Tax Act. (exercice)

• Marginal note:Payment where bad debt

  (2) Where tax under Part II.1 has been paid, or tax under Part II.2 has been remitted, by a licensee in respect of an arm’s length sale occurring on or after February 16, 1984 and the licensee has established, in accordance with generally accepted accounting practices, that any debt owing to the licensee in respect of the sale has become in whole or in part a bad debt and has accordingly written off the debt as a bad debt in his books of account, an amount equal to the proportion of the amount of that tax that the amount of the debt written off is of the aggregate of the amount charged for the taxable service and the amount of the tax shall, subject to this Part, be paid to that licensee if the licensee applies therefor in the two years after the end of his fiscal period during which the debt was so written off.

• Marginal note:Recovery of payment

  (3) Where a licensee recovers all or any part of a debt in respect of which an amount is paid to him pursuant to subsection (2), in this subsection referred to as the “refunded amount”, that licensee shall forthwith pay to Her Majesty an amount equal to the proportion of the refunded amount that the amount of the debt so recovered is of the amount of the debt written off in respect of which the refunded amount was paid.

Marginal note:Payment where adjustment

68.151 Where tax under Part II.2 has been remitted by a licensee and the licensee has, in accordance with subsection 21.31(1), made an adjustment or refund in respect of the tax, an amount equal to the amount of that adjustment or refund shall, subject to this Part, be paid to that licensee if the licensee applies therefor within two years after he made the adjustment or refund.

Marginal note:Payment where licence subsequently issued

68.152 Where tax under Part II.2 has been paid by a person in respect of any taxable service acquired by that person and that person

• (a) was required, at the time the tax became payable, to apply for a licence under that Part and was thereafter issued such a licence, and

• (b) at a time when that person was required to apply for a licence under that Part or held such a licence,

  • (i) provided the service to another person for an amount charged that was paid or payable, whichever is the earlier, at that time, or

  • (ii) used the service directly in providing another taxable service, other than a paging service, to another person,

an amount equal to the proportion of the amount of that tax that the uses referred to in paragraph (b) of the taxable service are of the total use of that taxable service by that person shall, subject to this Part, be paid to that person if he applies therefor within two years after the later of the time the service was so provided or used by that person and the time the licence was issued to that person.

Marginal note:Payment where resale

68.153 Where tax under Part II.2 has been paid in respect of any taxable service by a person who was not a telecommunications carrier at the time the tax became payable and that person has provided the service for an amount charged to another person who acquired the service for a use described in subsection 21.28(1) or (2) and held a licence under that Part or Part II.1 at the time of that acquisition, an amount equal to the proportion of the amount of that tax that the provision of that service to that other person is of the total use of that service by that person shall, subject to this Part, be paid to that person if he applies therefor within two years after he provided the service to that other person.

Marginal note:Payment where certain uses of gasoline

• 68.16 (1) Where tax under Part III has been paid in respect of any gasoline and the gasoline has been purchased by

  • (a) Her Majesty in right of Canada or a province or any agent of Her Majesty in right of Canada or a province, before 1991,

  • (b) a municipality, before 1991,

  • (c) a person for commercial or business purposes, before 1991,

  • (d) a farmer for farming purposes, before 1991,

  • (e) a fisherman, hunter or trapper for commercial fishing, hunting or trapping, before 1991,

  • (f) a person under conditions for which relief from the consumption or sales tax is provided by any provision of this Act, other than subsection 50(5), before 1991,

  • (g) a person of such other class of persons as the Governor in Council may by regulation prescribe, before 1991,

  • (g.1) a registered charity, within the meaning of the Income Tax Act,

  • (g.2) a registered Canadian amateur athletic association, within the meaning of the Income Tax Act, or

  • (g.3) a person who has been certified by a qualified medical practitioner to be suffering from a permanent impairment of locomotion to such an extent that the use of public transportation by that person would be hazardous,

  for the sole use of the purchaser and not for resale, an amount equal to that portion of the tax equal to one and one-half cents per litre shall, subject to this Part, be paid

  • (h) to the purchaser, or

  • (i) in accordance with such terms and conditions as the Governor in Council may by regulation prescribe, to the manufacturer, producer, wholesaler, jobber or other dealer,

  if the purchaser applies therefor within two years after he purchased the gasoline.

• Marginal note:Payment where certain uses of aviation gasoline

  (2) Where tax under Part III has been paid in respect of any aviation gasoline and the aviation gasoline has been purchased before 1991 by a person

  • (a) providing public air transportation of passengers, freight or mail,

  • (b) providing air services directly related to

    • (i) the exploration and development of natural resources,

    • (ii) aerial spraying, seeding and pest control,

    • (iii) forestry,

    • (iv) fish cultivation,

    • (v) aerial construction operations using rotating wing aircraft,

    • (vi) aerial fire control, fire protection and fire fighting, or

    • (vii) map making operations, or

  • (c) engaged in the business of testing aircraft engines,

  for the sole use of the purchaser to provide a service mentioned in paragraph (a) or (b) or to test aircraft engines, as the case may be, and not for resale or any other use, an amount equal to that portion of the tax equal to one and one-half cents per litre shall, subject to this Part, be paid

  • (d) to the purchaser, or

  • (e) in accordance with such terms and conditions as the Governor in Council may by regulation prescribe, to the manufacturer, producer, wholesaler, jobber or other dealer,

  if the purchaser applies therefor within two years after he purchased the aviation gasoline.

• Marginal note:Presumption

  (3) Any payment made to a person referred to in paragraph (1)(i) or (2)(e) shall, for the purposes of subsection (4) and sections 98 to 102, be deemed to have been made to the purchaser.

• Marginal note:Recovery of payment

  (4) Where an amount has been paid pursuant to subsection (1) or (2) to a person who sells or uses the gasoline or aviation gasoline for a purpose that does not entitle its purchaser to that payment, the purchaser shall forthwith pay to Her Majesty an amount equal to the amount of the payment.

• Marginal note:Commercial or business purposes

  (5) For the purposes of paragraph (1)(c), the expression “commercial or business purposes” shall have such meaning as the Governor in Council may determine by regulation.

• Marginal note:To whom payment made

  (6) Where a person has purchased gasoline or aviation gasoline in respect of which tax under Part III has been paid and has recovered the cost of that gasoline or aviation gasoline, or any part thereof, from, in the case of gasoline, a person described in any of paragraphs (1)(a) to (g.3) or, in the case of aviation gasoline, a person described in any of paragraphs (2)(a) to (c), for the purpose of paying an amount pursuant to subsection (1) or (2), the Governor in Council may, by regulation, determine

  • (a) the manner in which the amount shall be calculated; and

  • (b) who, between the person who purchased the gasoline or aviation gasoline and the person from whom all or any part of the cost has been recovered, shall be deemed to be the purchaser of that gasoline or aviation gasoline.

68.161 [Repealed, 2001, c. 16, s. 27]

• 68.162 [Repealed, 2001, c. 16, s. 27]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 7
  • 2001, c. 16, s. 27

• 68.163 [Repealed, 2001, c. 16, s. 27]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 7
  • 2001, c. 16, s. 27

• 68.164 [Repealed, 2001, c. 16, s. 27]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 7
  • 2001, c. 16, s. 27

• 68.165 [Repealed, 2001, c. 16, s. 27]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 7
  • 2000, c. 30, s. 140
  • 2001, c. 16, s. 27

• 68.166 [Repealed, 2001, c. 16, s. 27]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 7
  • 2001, c. 16, s. 27

• 68.167 [Repealed, 2001, c. 16, s. 27]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 7
  • 2001, c. 16, s. 27

• 68.168 [Repealed, 2001, c. 16, s. 27]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 7
  • 2001, c. 16, s. 27

• 68.169 [Repealed, 2001, c. 16, s. 27]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 29, s. 7
  • 1995, c. 36, s. 6
  • 1997, c. 26, s. 68
  • 1998, c. 21, s. 81
  • 2000, c. 30, ss. 13, 140
  • 2001, c. 16, s. 27

Marginal note:Payment where use as ships’ stores

68.17 If tax under Part III has been paid in respect of any goods and a manufacturer, producer, wholesaler, jobber or other dealer has sold the goods for use as ships’ stores, an amount equal to the amount of that tax shall, subject to this Part, be paid to that dealer if that dealer applies for it within two years after that sale of the goods.

68.171 [Repealed, 2002, c. 22, s. 378]

68.172 [Repealed, 2002, c. 22, s. 378]

Marginal note:Payment where goods in inventory

• 68.18 (1) If tax under Part III has been paid in respect of any goods and a person holds the goods in an unused condition in inventory on the day a licence is granted to that person under section 54 or 64 and could thereafter have obtained the goods exempt from tax under subsection 23(7), an amount equal to the amount of that tax shall, subject to this Part, be paid to that person if that person applies for it within two years after the licence was granted.

• Marginal note:Payment where goods in inventory

  (2) If tax under Part III has been paid in respect of any goods and a person holds the goods in an unused condition in inventory on the day a licence is granted to that person under section 55 and could thereafter have obtained the goods exempt from tax under subsection 23(6), (7) or (8), an amount equal to the lesser of the amount of that tax and the amount of tax under Part III that would be payable if the goods were acquired in a taxable transaction by that person on that day shall, subject to this Part, be paid to that person if that person applies for it within two years after the licence was granted.

• Marginal note:Exception

  (3) No amount equal to the amount of tax under Part III shall be paid under subsection (2) to a person in respect of any goods that are not subject to tax under that Part on the day a licence is granted to that person under section 55.

• (3.1) [Repealed, 2002, c. 22, s. 379]

• Marginal note:Unused condition

  (4) For the purposes of this section, goods are in an unused condition if they are new or have not been used in Canada.

Marginal note:Payment where use by province

• 68.19 (1) If tax under Part III has been paid in respect of any goods and Her Majesty in right of a province has purchased or imported the goods for any purpose other than

  • (a) resale,

  • (b) use by any board, commission, railway, public utility, university, manufactory, company or agency owned, controlled or operated by the government of the province or under the authority of the legislature or the lieutenant governor in council of the province, or

  • (c) use by Her Majesty in that right, or by any agents or servants of Her Majesty in that right, in connection with the manufacture or production of goods or use for other commercial or mercantile purposes,

  an amount equal to the amount of that tax shall, subject to this Part, be paid either to Her Majesty in that right or to the importer, transferee, manufacturer, producer, wholesaler, jobber or other dealer, as the case may require, if Her Majesty or the dealer applies therefor within two years after Her Majesty purchased or imported the goods.

• Marginal note:Exception

  (2) No amount shall be paid pursuant to subsection (1) to an importer, transferee, manufacturer, producer, wholesaler, jobber or other dealer who supplies goods to Her Majesty in right of a province in respect of which there is in force at the time the goods are supplied a reciprocal taxation agreement referred to in section 32 of the Federal-Provincial Fiscal Arrangements and Federal Post-Secondary Education and Health Contributions Act.

Marginal note:Payment where subsequent exempt sale

• 68.2 (1) Where tax under Part III or VI has been paid in respect of any goods and subsequently the goods are sold to a purchaser in circumstances that, by virtue of the nature of that purchaser or the use to which the goods are to be put or by virtue of both such nature and use, would have rendered the sale to that purchaser exempt or relieved from that tax under subsection 23(6), paragraph 23(8)(b) or subsection 50(5) or 51(1) had the goods been manufactured in Canada and sold to the purchaser by the manufacturer or producer thereof, an amount equal to the amount of that tax shall, subject to this Part, be paid to the person who sold the goods to that purchaser if the person who sold the goods applies therefor within two years after he sold the goods.

• Marginal note:Application of anti-avoidance rule

  (2) Section 274 applies, with such modifications as the circumstances require, to any transaction

  • (a) that is a sale of goods that would give rise to the application of, or that is the basis of an application under, subsection (1), and

  • (b) that takes place after December 17, 1990 and before 1991,

  and for that purpose, every reference in that section to “an assessment, a reassessment or an additional assessment” shall be read as a reference to “an assessment, a reassessment, an additional assessment, a determination or a redetermination”.

Marginal note:Definitions

• 68.21 (1) In this section,

  arm’s length sale

  arm’s length sale means a sale of goods by a licensed manufacturer to a person with whom the manufacturer is dealing at arm’s length at the time of the sale; (vente sans lien de dépendance)

  fiscal period

  fiscal period means a fiscal period as determined for the purposes of the Income Tax Act. (exercice)

• Marginal note:Payment where bad debt

  (2) Where ad valorem tax under Part III or VI has been paid by a licensed manufacturer in respect of an arm’s length sale occurring on or after February 16, 1984 and the manufacturer has established, in accordance with generally accepted accounting practices, that any debt owing to him in respect of the sale has become in whole or in part a bad debt and has accordingly written off the debt as a bad debt in his books of account, an amount equal to the proportion of the amount of that tax that the amount of the debt written off is of the price for which the goods were sold shall, subject to this Part, be paid to that manufacturer if he applies therefor in the two years after the end of his fiscal period during which the debt was so written off.

• Marginal note:Recovery of payment

  (3) Where a licensed manufacturer recovers all or any part of a debt in respect of which an amount is paid to him pursuant to subsection (2), in this subsection referred to as the “refunded amount”, that manufacturer shall forthwith pay to Her Majesty an amount equal to the proportion of the refunded amount that the amount of the debt so recovered is of the amount of the debt written off in respect of which the refunded amount was paid.

Marginal note:Payment where warranty

68.22 Where tax under Part III or VI has been paid in respect of any goods that a licensed manufacturer gives away as free replacement parts under a written warranty given in respect of the goods into which the parts are to be incorporated and the amount, if any, charged for the warranty is included in the sale price charged by the licensed manufacturer for the goods into which the parts are to be incorporated or, if those goods are imported goods, in the duty paid value thereof, an amount equal to the amount of that tax shall, subject to this Part, be paid to that manufacturer if he applies therefor within two years after he gave away the goods.

Definition of system goods

• 68.23 (1) In this section, system goods means

  • (a) goods purchased for use directly in a water distribution, sewerage or drainage system, and

  • (b) goods used in the construction of a building, or that part of a building, used exclusively to house machinery and apparatus for use directly in a water distribution, sewerage or drainage system,

  but does not include chemicals purchased for use or used in the treatment of water or sewage in any such system.

• Marginal note:Payment where use in certain systems

  (2) Where tax under Part VI has been paid in respect of any system goods and the purchaser of the goods has, within three years after the completion of the system for which the goods were purchased or in which the goods were used, as the case may be, transferred the system without charge to a municipality pursuant to a by-law of or an agreement with that municipality, an amount equal to the amount of that tax shall, subject to this Part, be paid to that purchaser if he applies therefor within two years after that transfer of the system.

• Marginal note:Declaration

  (3) For the purposes of subsection (2), the Minister may declare any agency operating a water distribution, sewerage or drainage system for or on behalf of a municipality to be a municipality.

Marginal note:Definitions

• 68.24 (1) In this section,

  certified institution

  certified institution means a non-profit organization or charity that holds a valid and subsisting certificate issued under subsection (2); (institution titulaire de certificat)

  charity

  charity has the meaning assigned by subsection 149.1(1) of the Income Tax Act; (organisme de bienfaisance)

  Minister

  Minister means the Minister of National Health and Welfare; (ministre)

  non-profit organization

  non-profit organization means a club, society or association described in paragraph 149(1)(l) of the Income Tax Act; (organisation sans but lucratif)

  prescribed

  prescribed means prescribed by the Minister; (Version anglaise seulement)

  previously certified institution

  previously certified institution means a non-profit organization or charity that holds a valid and subsisting certificate issued under this section, as it read immediately before February 11, 1988; (institution déjà titulaire de certificat)

  specified day

  specified day means

  • (a) in relation to a certified institution, the later of

    • (i) the day specified in the certificate pursuant to subsection (3), and

    • (ii) the first day of April preceding the day on which the application for the certificate was received by the Minister, and

  • (b) in relation to a previously certified institution, the later of

    • (i) the day specified in the certificate pursuant to this section, as it read immediately before February 11, 1988, and

    • (ii) the first day of April preceding the day on which the application for the certificate was received by the Minister. (jour spécifié)

• Marginal note:Issue of certificate

  (2) On application in the prescribed form and manner and containing the prescribed information, the Minister may issue a certificate to the applicant for the purposes of this section, if the Minister is satisfied that the applicant is a non-profit organization or charity

  • (a) whose principal purpose is to provide care, of such type as the Governor in Council may prescribe by regulation on the recommendation of the Minister and the Minister of Finance,

    • (i) to children, or to aged, infirm or incapacitated persons, who are in need of care on a continuous or regular basis, and

    • (ii) on its own premises by means of qualified persons in sufficient numbers in relation to the type of care provided; or

  • (b) whose only purpose is to provide administrative services solely to one or more non-profit organizations or charities having the principal purpose described in paragraph (a) and holding a certificate under this subsection.

• Marginal note:Terms of certificate

  (3) A certificate under subsection (2) shall be in the prescribed form and

  • (a) shall certify that, as of a day specified in the certificate, the non-profit organization or charity to which it is issued meets the conditions referred to in that subsection; and

  • (b) if the non-profit organization or charity carries on operations at more than one location, shall specify the location for which it is issued.

• Marginal note:Revocation of new certificate

  (4) Where the Minister believes on reasonable grounds that the holder of a certificate under subsection (2) did not meet the conditions referred to in that subsection at the time it was issued or has since ceased to meet those conditions, the Minister may, by notice sent to the holder, revoke the certificate effective as of any day on or after the day on which the certificate was issued to the holder or the holder ceased to meet those conditions, as the case may be.

• Marginal note:Revocation of old certificate

  (5) Where the Minister believes on reasonable grounds that the holder of a certificate under this section, as it read immediately before February 11, 1988, does not meet the conditions referred to in subsection (2), the Minister may, by notice sent to the holder, revoke the certificate effective as of any day on or after which the holder did not meet those conditions.

• Marginal note:Payment where use by certified or previously certified institutions

  (6) Where tax under Part VI has been paid in respect of any goods and a certified institution or previously certified institution has purchased the goods on or after the specified day for the sole use of the institution and not for resale and met the conditions referred to in subsection (2) at the time of the purchase, an amount equal to the amount of that tax shall, subject to this Part, be paid to that institution if it applies therefor within two years after it purchased the goods.

• Marginal note:Payment where use by certified or previously certified institutions prior to certification

  (7) Where tax under Part VI has been paid in respect of any goods and a non-profit organization or charity to which a certificate was subsequently issued under subsection (2) or this section, as it read immediately before February 11, 1988, or a person acting on behalf of such an organization or charity, has purchased the goods within two years before the specified day for the sole use of the organization or charity and not for resale and the organization or charity was constructing a building for its own use at the time of the purchase, an amount equal to the amount of that tax shall, subject to this Part, be paid to that organization or charity if it applies therefor within two years after the day on which the certificate was issued to the organization or charity.

• Marginal note:Exception

  (8) Where a certificate under subsection (2) specifies a location for which it is issued or a certificate issued under this section, as it read immediately before February 11, 1988, specifies an address of the holder of the certificate, no amount shall be paid pursuant to subsection (6) or (7) to the certified institution or previously certified institution unless the goods were purchased for the sole use of that institution at that location or address and not for resale.

Marginal note:Payment where use by hospital cleaning establishments

68.25 Where tax under Part VI has been paid in respect of any goods and the goods have been purchased for the sole purpose of constructing, equipping or operating an establishment

• (a) that is wholly owned, directly or indirectly, by or on behalf of one or more bona fide public hospitals each of which has been certified as such by the Department of Health, and

• (b) that is established for the sole purpose of providing laundry services, cleaning services or linen supply services to one or more hospitals described in paragraph (a),

an amount equal to the amount of that tax shall, subject to this Part, be paid to that establishment if it applies therefor within two years after the goods were purchased.

Marginal note:Payment where use by educational institutions

68.26 Where tax under Part VI has been paid in respect of any materials and the materials have been purchased by or on behalf of

• (a) a school, university or other similar educational institution for use exclusively in the construction of a building for that institution,

• (b) any organization for use exclusively in the construction of a building for that organization that is to be used exclusively or mainly as a public library operated by or on behalf of that organization on a non-commercial basis, or

• (c) a corporation wholly owned and controlled by Her Majesty in right of a province that is established for the sole purpose of providing residences for students of universities or other similar educational institutions, for use exclusively in the construction of those residences,

an amount equal to the amount of that tax shall, subject to this Part, be paid to that institution, organization or corporation if it applies therefor within two years after the materials were purchased.

Definition of incinerator goods

• 68.27 (1) In this section, incinerator goods means

  • (a) materials for use exclusively in the construction of, or

  • (b) machinery or apparatus, including equipment to be installed in a chimney or smoke stack, and repair and replacement parts therefor, for use directly and exclusively in the operation of

  an incinerator owned or to be owned by a municipality and used or to be used primarily for the incineration of waste for the municipality, but does not include motor vehicles, attachments therefor or office equipment.

• Marginal note:Payment where use in incinerators

  (2) Where tax under Part VI has been paid in respect of any incinerator goods and the goods have been purchased by or on behalf of a municipality for the sole use of the municipality and not for resale, an amount equal to the amount of that tax shall, subject to this Part, be paid to that municipality if it applies therefor within two years after that purchase of the goods.

Definition of qualified goods

• 68.28 (1) In this section, qualified goods means the goods mentioned in Part XIII of Schedule III, but does not include

  • (a) photocopiers or other office type reproduction equipment for use by persons whose principal business is not printing; and

  • (b) for greater certainty, goods that are expressly excluded or not included in that Part.

• Marginal note:Payment where use by small manufacturer

  (2) Where tax under Part VI has been paid in respect of any qualified goods and the goods have been purchased or imported by a person of a class prescribed pursuant to subsection (3) for the sole use of that person and not for resale, an amount equal to the amount of that tax shall, subject to this Part, be paid to that person if he applies therefor within two years after that purchase or importation of the goods.

• Marginal note:Regulations

  (3) The Governor in Council may, on the joint recommendation of the Minister of Finance and the Minister of National Revenue, make regulations prescribing any class of small manufacturer or producer for the purposes of this section.

Marginal note:Payment where tourist literature printed

68.29 Where tax under Part VI has been paid in respect of any printed matter that has been produced or purchased in Canada by a board of trade, chamber of commerce, municipal or automobile association or other similar organization, or by or on the order of a government, or a department, agency or representative of a government, and that is made available to the general public without charge for the promotion of tourism, an amount equal to the amount of that tax shall, subject to this Part, be paid to the organization, or to the government, department, agency or representative, if it applies therefor within two years after the printed matter was so produced or purchased.

Marginal note:Payment where motor fuel purchased by diplomats

• 68.3 (1) Where taxes under Parts III and VI have been paid in respect of gasoline or diesel fuel purchased by a diplomat for his personal or official use, an amount equal to the amount of the taxes shall, subject to this Part, be paid to the diplomat if the diplomat applies therefor within two years after the purchase of the gasoline or diesel fuel.

• Marginal note:Designation order

  (2) The Governor in Council, on the recommendation of the Minister of Foreign Affairs certifying that Canadian diplomats posted in a foreign country are granted relief from tax on gasoline or diesel fuel, may, by order, designate the foreign country for the purposes of this section.

• Definition of diplomat

  (3) In this section, diplomat means a person referred to in section 2 of Part II of Schedule III who represents a country designated by an order made under subsection (2).

Marginal note:Definitions

• 68.4 (1) In this section,

  air carrier

  air carrier in a calendar year, means a person who is a carrier in the year and whose gross revenue for the year is derived primarily from the business of providing eligible air transportation services; (transporteur aérien)

  aviation fuel

  aviation fuel does not include aviation gasoline; (carburant aviation)

  aviation rebate limit

  aviation rebate limit of a particular air carrier for a calendar year, means

  • (a) where at every time in the year no other air carrier is related to the particular air carrier, $20,000,000, and

  • (b) in any other case, the amount that the particular air carrier and all other persons (in this paragraph referred to as “related air carriers”) each of which is an air carrier in the year and is related to the particular air carrier at any time in the year allocate, in an agreement in prescribed form filed with the Minister with the application described in paragraph (3.1)(b), to the particular air carrier for the year, provided that

    • (i) if the total of the amounts so allocated for the year to the particular air carrier and all related air carriers is greater than $20,000,000, each amount so allocated is deemed to be nil, and

    • (ii) if the particular air carrier and all related air carriers fail to file an agreement under this paragraph for the year, the Minister may allocate an amount to one or more of them for the year, which amount or the total of which amounts shall not exceed $20,000,000, and any amount so allocated by the Minister is deemed to have been so allocated by the particular air carrier and all related air carriers in such an agreement; (plafond de la remise aux transporteurs aériens)

  carrier

  carrier in a calendar year means a person whose gross revenue for the year is derived primarily from the business of providing eligible transportation services and who is not exempt for any period in the year from taxation under Part I of the Income Tax Act by reason of section 149 of that Act; (transporteur)

  eligible air transportation services

  eligible air transportation services means the carriage by aircraft of passengers or goods or both; (service de transport aérien admissible)

  eligible transportation services

  eligible transportation services means the carriage of passengers or goods or both, by aircraft, boat, bus, truck or train, or a combination thereof; (service de transport admissible)

  fuel

  fuel means diesel fuel and aviation fuel in respect of which the tax under Part III has been paid and cannot be recovered under any other section of this Act; (combustible)

  fuel tax rebate

  fuel tax rebate means an amount payable under subsection (2), (3) or (3.1); (remise de taxe sur le combustible)

  gross revenue

  gross revenue for a calendar year of a person means

  • (a) where the person is a taxpayer within the meaning of the Income Tax Act, the gross revenue of the person under that Act for all taxation years of the person ending in the year, and

  • (b) in any other case, the amount that, for the purposes of that Act, would be the gross revenue of the person for all taxation years of the person ending in the year if the person were a corporation; (revenu brut)

  ineligible use

  ineligible use means any use other than the provision of eligible transportation services for commercial purposes or, where a rebate is paid under subsection (3.1), any use other than the provision of eligible air transportation services for commercial purposes, and for greater certainty the sale of fuel is an ineligible use; (fin inadmissible)

  taxation year

  taxation year of a person means

  • (a) where the person is a taxpayer within the meaning of the Income Tax Act, the taxation year of the person for the purposes of that Act, and

  • (b) in any other case, the period that would be the taxation year of the person for the purposes of that Act if the person were a corporation; (année d’imposition)

  trucker

  trucker in a calendar year means a person whose gross revenue for the year is derived primarily from the business of providing carriage of goods by truck and who is not exempt for any period in the year from taxation under Part I of the Income Tax Act by reason of section 149 of that Act. (camionneur)

• Marginal note:Deemed not related

  (1.1) For the purposes of this section, a corporation that is a Canadian-controlled private corporation within the meaning of subsection 125(7) of the Income Tax Act and another corporation to which it would otherwise be related at any time are deemed not to be related to each other at that time where the corporations are not associated with each other at that time within the meaning of subsection 127(1).

• Marginal note:Fuel tax rebate for carriers

  (2) Where a person who is a carrier in a calendar year

  • (a) has, in the year, purchased in Canada or imported fuel for use by the carrier solely in the provision of eligible transportation services,

  • (b) applies before July 1993 to the Minister in prescribed form containing prescribed information for a fuel tax rebate in respect of that fuel, and

  • (c) has not applied under subsection (3) for a fuel tax rebate in respect of any fuel purchased or imported in the year,

  a fuel tax rebate equal to three cents for each litre of the fuel shall, subject to this Part, be paid to the carrier.

• Marginal note:Alternative rebate for truckers

  (3) Where a person who is a trucker in a calendar year

  • (a) has, in the year, purchased in Canada or imported fuel for use by the trucker solely in the provision of eligible transportation services,

  • (b) applies before July 1993 to the Minister in prescribed form containing prescribed information for a fuel tax rebate in respect of that fuel, and

  • (c) has not applied under subsection (2) for a fuel tax rebate in respect of any fuel purchased or imported in the year,

  a fuel tax rebate equal to the lesser of an amount equal to one and one-half cents for each litre of the fuel and $500 shall be paid to the trucker.

• Marginal note:Aviation rebate

  (3.1) Where a person who is an air carrier in a calendar year

  • (a) has, in the year, purchased in Canada or imported aviation fuel for use by the person solely in the provision of eligible air transportation services, and

  • (b) applies to the Minister, before the end of the sixth month following the end of the year in prescribed form for a fuel tax rebate in respect of that fuel,

  the Minister shall, subject to this Part, pay a fuel tax rebate to the person equal to the lesser of four cents for each litre of that fuel and the person’s aviation rebate limit for the year.

• Marginal note:Limitation on rebates

  (4) No fuel tax rebate shall be paid under this section

  • (a) in respect of fuel used or to be used for an ineligible use;

  • (b) where subsection (2) or (3) applies, in respect of fuel that is purchased or imported by the carrier or trucker, as the case may be, before 1991 or after 1992;

  • (c) where subsection (3.1) applies, in respect of fuel that is purchased or imported by the air carrier before 1996 or after 1999; or

  • (d) to a person who is or has been bankrupt or to the trustee in bankruptcy of the person in respect of any fuel purchased or imported by the person or the trustee before the person is discharged from the bankruptcy.

• Marginal note:Idem

  (5) Not more than one application for a fuel tax rebate in respect of fuel purchased or imported in a calendar year may be made by any person.

• Marginal note:Diverting fuel to ineligible uses

  (6) Where a fuel tax rebate is paid to a person under this section in respect of fuel and the person uses the fuel for an ineligible use, the amount of the rebate paid is deemed to be a tax payable under Part III by the person at the time the fuel is so used.

• Marginal note:Repayment of rebate

  (7) Subject to subsections (8) and (9), a person to whom a fuel tax rebate was paid under subsection (2) or (3.1) may repay to the Receiver General all or part of the rebate.

• Marginal note:Time for repayment

  (8) A repayment made under subsection (7) in respect of a fuel tax rebate paid to a person in a taxation year of the person shall be made within the 90 day period that begins on any day on which the Minister sends to the person a notice of assessment of tax payable under Part I of the Income Tax Act by the person for the year, a notice of determination under subsection 152(1.1) of that Act in respect of the person for the year or a notification that no tax is payable under that Part by the person for the year.

• Marginal note:Application of subsections 79(1) to (1.2)

  (9) Where a person repays under subsection (7) all or a part of a fuel tax rebate, subsections 79(1) to (1.2) apply, with such modifications as the circumstances require, as if

  • (a) the repayment were a payment of tax payable under Part III;

  • (b) the person had defaulted in paying the tax within the time prescribed by subsection 78(4);

  • (c) subsection 78(4) had required the tax to be paid on or before

    • (i) in the case of a rebate under subsection (3.1), the later of January 1, 2000 and the last day of the month in which the person received the rebate, and

    • (ii) in any other case, the last day of the month in which the person received the rebate; and

  • (d) the reference in paragraph 79(1)(a) to “a penalty of one-half of one per cent and interest at the prescribed rate” were read as a reference to “a penalty equal to the prescribed rate of interest”.

Marginal note:Definitions

• 68.5 (1) The definitions in this subsection apply in this section.

  eligible ship

  navire admissible

  eligible ship means a ship that is a tug, ferry or passenger ship engaged in trade on an inland voyage and that

  • (a) is not proceeding outside Canada other than to

    • (i) a part that lies within the United States of any lake or river a part of which is included in the inland waters of Canada, or

    • (ii) Lake Michigan; and

  • (b) is not engaged in international trade. (navire admissible)

  inland voyage

  voyage en eaux internes

  inland voyage means a voyage (other than a minor waters voyage)

  • (a) on the inland waters of Canada, together with those parts that lie within the United States of any lake or river included in the inland waters of Canada; or

  • (b) on Lake Michigan. (voyage en eaux internes)

  inland waters of Canada

  eaux internes du Canada

  inland waters of Canada means all the rivers, lakes and other navigable fresh waters within Canada, and includes the St. Lawrence River as far seaward as a straight line drawn

  • (a) from Cap des Rosiers to West Point Anticosti Island; and

  • (b) from Anticosti Island to the north shore of the St. Lawrence River along the meridian of longitude sixty-three degrees west. (eaux internes du Canada)

  minor waters of Canada

  eaux secondaires du Canada

  minor waters of Canada means all inland waters of Canada (other than Lake Ontario, Lake Erie, Lake Huron including Georgian Bay, Lake Superior and the St. Lawrence River east of a line drawn from Father Point to Point Orient) and includes all bays, inlets and harbours of or on those lakes or Georgian Bay. (eaux secondaires du Canada)

  minor waters voyage

  voyage en eaux secondaires

  minor waters voyage means a voyage within the minor waters of Canada together with those parts that lie within the United States of any lake or river included in the minor waters of Canada. (voyage en eaux secondaires)

  rebate period

  période de remise

  rebate period means the period

  • (a) that begins on June 1, 2002 and that ends on December 31, 2002;

  • (b) that begins on January 1, 2003 and that ends on December 31, 2003; or

  • (c) that begins on January 1, 2004 and that ends on December 31, 2004. (période de remise)

• Marginal note:Rebate in respect of fuel for eligible ship

  (2) If a person purchases or intends to purchase fuel that is, or is to be, used by the person to operate or maintain an eligible ship during a rebate period, subject to this Part, the Minister shall, on application by the person, pay to the person a rebate for the period determined in accordance with subsection (3).

• Marginal note:Determination of rebate

  (3) The amount of the rebate payable to a person under subsection (2) for a rebate period is equal to

  • (a) if the amount applied for is based on an estimate, acceptable to the Minister and made within any period specified by the Minister, of the quantity of fuel that is, or is to be, purchased after May 2002 by the person and is, or is to be, used by the person to operate or maintain an eligible ship during the rebate period, the total amount of tax under Part III that would be imposed on that fuel; or

  • (b) in any other case, the total amount of tax under Part III imposed on fuel that is purchased by the person after May 2002 and is used by the person to operate or maintain an eligible ship during the rebate period.

• Marginal note:One application per period

  (4) A person shall not file more than one application (other than an application referred to in paragraph (8)(b)) under this section for any rebate period.

• Marginal note:Reconciliation report

  (5) If a person is paid a rebate for a rebate period based on an estimate referred to in paragraph (3)(a), the person shall, not later than 60 days after the end of the period, file with the Minister in prescribed manner a reconciliation report in prescribed form that indicates

  • (a) the amount of the rebate paid to the person; and

  • (b) the amount of tax under Part III imposed on the fuel purchased by the person after May 2002 and used by the person to operate or maintain an eligible ship during the rebate period.

• Marginal note:Extension for filing

  (6) The Minister may at any time, in writing, extend the time required by subsection (5) for filing a reconciliation report.

• Marginal note:Effect of extension for filing

  (7) If the Minister has, under subsection (6), extended the time required by subsection (5) for filing a reconciliation report

  • (a) the report shall be filed within the time so extended; and

  • (b) any amount of excess rebate that is required to be paid within the time otherwise required by subsection (9) shall be paid within the time so extended.

  • (c) [Repealed, 2003, c. 15, s. 97]

• Marginal note:Additional amount payable to rebate recipient

  (8) If a person files a reconciliation report for a rebate period and the amount referred to in paragraph (5)(b) exceeds the amount referred to in paragraph (5)(a) in respect of the period,

  • (a) the Minister shall pay to the person an amount equal to that excess amount; and

  • (b) the filing of the reconciliation report is deemed to be an application to the Minister for payment of that excess amount.

• Marginal note:Liability for excess rebate and interest up to due date of reconciliation

  (9) If the rebate paid to a person for a rebate period is determined on the basis of an estimate referred to in paragraph (3)(a) and the amount paid exceeds the amount referred to in paragraph (5)(b) in respect of the period, the person shall pay to the Receiver General

  • (a) on or before the day on or before which the reconciliation report for the rebate period is required to be filed, an amount (in this section referred to as the “excess rebate”) equal to that excess amount; and

  • (b) interest at the prescribed rate in respect of the excess rebate for the period beginning on the first day after the day on which the rebate is paid to the person and ending on the earlier of the day on which the excess rebate is paid to the Receiver General and the day on or before which the reconciliation report is required to be filed.

• Marginal note:Deemed tax liability

  (10) The portion of the total of the excess rebate payable by a person in respect of a rebate period, and of the interest payable by the person under paragraph (9)(b), that is outstanding at the end of the day on or before which the reconciliation report for the period is required to be filed is deemed to be an amount of tax payable under this Act that is required to be, and that has not been, paid by the person on or before that day.

• (11) to (13) [Repealed, 2003, c. 15, s. 97]

• Marginal note:Restriction

  (14) The Minister shall not, at a particular time, pay an amount to a person under this section unless the person has

  • (a) filed with the Minister all reconciliation reports for rebate periods ending before that time for which a rebate was paid to the person that was based on an estimate referred to in paragraph (3)(a); and

  • (b) paid all excess rebates in respect of rebate periods ending before that time and any interest that has accrued to that time.

• Marginal note:Limitation period

  (15) An application may not be made under subsection (2) after December 31, 2006.

Marginal note:Definitions

• 69 (1) In this section,

  in bulk

  in bulk, in respect of a sale of gasoline or diesel fuel, means

  • (a) in a quantity of five hundred litres or more, where the gasoline or diesel fuel is delivered to the purchaser at a retail outlet of the vendor, and

  • (b) in any quantity, in any other case; (en vrac)

  logging

  logging means the felling, limbing, bucking and marking of trees, construction of logging roads, off-highway transportation of logs to a mill-pond or mill yard, log salvaging and reforestation, but does not include any production activity on logs after transportation to a mill-pond or mill yard; (opérations forestières)

  mineral resource

  mineral resource means

  • (a) a base or precious metal deposit,

  • (b) a coal deposit, or

  • (c) a mineral deposit in respect of which

    • (i) the Minister of Natural Resources has certified that the principal mineral extracted is an industrial mineral contained in a non-bedded deposit,

    • (ii) the principal mineral extracted is sylvite, halite or gypsum, or

    • (iii) the principal mineral extracted is silica that is extracted from sandstone or quartzite; (ressource minérale)

  mining

  mining means the extracting of minerals from a mineral resource, the processing of ore, other than iron ore, from a mineral resource to the prime metal stage or its equivalent, the processing of iron ore from a mineral resource to the pellet stage or its equivalent and the restoration of strip-mined land to a usable condition, but does not include activities related to the exploration for or development of a mineral resource; (opérations minières)

  qualified

  qualified, in respect of a farmer, fisherman, hunter, trapper or other person, means a farmer, fisherman, hunter, trapper or person who holds a sales tax bulk permit issued under regulations made pursuant to subsection (10); (admissible)

  registered vendor

  registered vendor means a person who is registered under regulations made pursuant to subsection (10). (vendeur enregistré)

• Marginal note:Fuel tax rebate to vendor

  (2) Where gasoline or diesel fuel has been sold by a licensed manufacturer or licensed wholesaler to

  • (a) [Repealed, R.S., 1985, c. 42 (2nd Supp.), s. 9]

  • (b) a qualified fisherman for commercial fishing,

  • (c) a qualified hunter for commercial hunting,

  • (d) a qualified trapper for commercial trapping,

  • (e) a qualified person for use in logging, or

  • (f) a qualified person for use in mining,

  for the sole use of the purchaser and not for resale and the taxes imposed by Parts III and VI are payable in respect of the sale, the manufacturer or wholesaler may, in such circumstances and on such terms and conditions as the Minister may prescribe, deduct, within two years after the sale, a fuel tax rebate in an amount calculated in accordance with subsections (8) and (8.01) from the amount of any payment of any tax, penalty, interest or other sum that the manufacturer or wholesaler is liable or is about to become liable to make under those Parts or under this Part in respect of taxes under those Parts.

• Marginal note:Fuel tax rebate to vendor selling to farmer

  (2.1) Where gasoline or diesel fuel has been sold by a licensed manufacturer or licensed wholesaler to a qualified farmer for farming purposes, for the sole use of the qualified farmer and not for resale and the tax imposed by Parts III and VI is payable in respect of the sale, the manufacturer or wholesaler may, in such circumstances and on such terms and conditions as the Minister may prescribe, deduct, within two years after the sale, a fuel tax rebate in an amount calculated in accordance with subsections (8.1) and (8.2) from the amount of any payment of any tax, penalty, interest or other sum that the manufacturer or wholesaler is liable or is about to become liable to make under those Parts or under this Part in respect of tax under those Parts.

• Marginal note:Condition

  (3) No deduction shall be made by a licensed manufacturer or licensed wholesaler under subsection (2) or (2.1) unless the manufacturer or wholesaler has reduced the amount charged for the gasoline or diesel fuel to the purchaser by an amount equal to the amount of the deduction and the amount of the reduction is shown separately on an invoice for the sale given to the purchaser by the manufacturer or wholesaler.

• Marginal note:Fuel tax rebate to registered vendor

  (4) Where gasoline or diesel fuel has been sold in bulk by a registered vendor to

  • (a) [Repealed, R.S., 1985, c. 42 (2nd Supp.), s. 9]

  • (b) a qualified fisherman for commercial fishing,

  • (c) a qualified hunter for commercial hunting,

  • (d) a qualified trapper for commercial trapping,

  • (e) a qualified person for use in logging, or

  • (f) a qualified person for use in mining,

  for the sole use of the purchaser and not for resale and the taxes imposed by Parts III and VI have been paid or are payable in respect of the gasoline or fuel, a fuel tax rebate in an amount calculated in accordance with subsections (8) and (8.01) shall, subject to this Part, be paid to that registered vendor if he applies therefor within two years after he sold the gasoline or fuel.

• Marginal note:Fuel tax rebate to registered vendor selling to farmer

  (4.1) Where gasoline or diesel fuel has been sold in bulk by a registered vendor to a qualified farmer for farming purposes, for the sole use of the qualified farmer and not for resale and the tax imposed by Parts III and VI has been paid or is payable in respect of the gasoline or fuel, a fuel tax rebate in an amount calculated in accordance with subsections (8.1) and (8.2) shall, subject to this Part, be paid to that registered vendor if he applies therefor within two years after the sale of the gasoline or fuel.

• Marginal note:Condition

  (5) No fuel tax rebate shall be paid to a registered vendor under subsection (4) or (4.1) unless the registered vendor has reduced the amount charged for the gasoline or diesel fuel to the purchaser by an amount equal to the amount of the fuel tax rebate applied for and the amount of the reduction is shown separately on an invoice for the sale given to the purchaser by the registered vendor.

• Marginal note:Fuel tax rebate to purchaser or importer

  (6) Where gasoline or diesel fuel has been sold to or imported by

  • (a) [Repealed, R.S., 1985, c. 42 (2nd Supp.), s. 9]

  • (b) a fisherman for commercial fishing,

  • (c) a hunter for commercial hunting,

  • (d) a trapper for commercial trapping,

  • (e) a person for use in logging, or

  • (f) a person for use in mining,

  for the sole use of the purchaser or importer and not for resale and the taxes imposed by Parts III and VI have been paid or are payable in respect of the gasoline or fuel and, in the case of a sale, the amount charged therefor has not been reduced in accordance with subsection (3) or (5), a fuel tax rebate in an amount calculated in accordance with subsections (8) and (8.01) shall, subject to this Part, be paid to that purchaser or importer if he applies therefor within two years after he purchased or imported the gasoline or fuel.

• Marginal note:Fuel tax rebate to farmer

  (6.1) Where gasoline or diesel fuel has been sold to or imported by a farmer for farming purposes, for the sole use of the farmer for farming purposes and not for resale and the tax imposed by Parts III and VI has been paid or is payable in respect of the gasoline or fuel and, in the case of a sale, the amount charged therefor has not been reduced in accordance with subsection (3) or (5), a fuel tax rebate in an amount calculated in accordance with subsections (8.1) and (8.2) shall, subject to this Part, be paid to that farmer if he applies therefor within two years after the purchase or importation of the gasoline or fuel.

• Marginal note:Limitation

  (7) Subsections (2), (2.1), (4), (4.1), (6) and (6.1) do not apply in respect of gasoline or diesel fuel

  • (a) that is to be used to propel a vehicle on a public highway;

  • (b) that is to be used other than for a commercial purpose; or

  • (c) that is sold or imported

    • (i) on or after January 1, 1990, in respect of the tax imposed by Part III, or

    • (ii) on or after January 1, 1991, in respect of the tax imposed by Part VI.

• Marginal note:Amount of fuel tax rebate: Part VI

  (8) For the purposes of subsections (2), (4) and (6), the amount of the fuel tax rebate in respect of the tax imposed by Part VI shall be calculated at such rate, not exceeding five cents, per litre of gasoline or diesel fuel sold or imported as the Governor in Council may, on the recommendation of the Minister of Finance, prescribe by order or, if no rate is so prescribed, at the rate of three cents per litre of gasoline or diesel fuel sold or imported.

• Marginal note:Amount of fuel tax rebate: Part III

  (8.01) For the purposes of subsections (2), (4) and (6), the amount of the fuel tax rebate in respect of the tax imposed by Part III shall be calculated

  • (a) in the case of gasoline, at the rate of

    • (i) one cent per litre, where the gasoline was sold or imported on or after January 1, 1988 and before April 1, 1988, and

    • (ii) two cents per litre, where the gasoline was sold or imported on or after April 1, 1988 and before January 1, 1990; and

  • (b) in the case of diesel fuel, at the rate of one cent per litre, where the diesel fuel was sold or imported on or after January 1, 1988 and before January 1, 1990.

• Marginal note:Farmers’ rate: Part VI

  (8.1) For the purposes of subsections (2.1), (4.1) and (6.1), the amount of the fuel tax rebate in respect of the tax imposed by Part VI shall be calculated at such rate, not exceeding five cents, per litre of gasoline or diesel fuel sold or imported as the Governor in Council may, on the recommendation of the Minister of Finance, prescribe by order or, if no rate is so prescribed, at the rate of three and one-half cents per litre of gasoline or diesel fuel sold or imported.

• Marginal note:Farmers’ rate: Part III

  (8.2) For the purposes of subsections (2.1), (4.1) and (6.1), the amount of the fuel tax rebate in respect of the tax imposed by Part III shall be calculated

  • (a) in the case of gasoline, at the rate of

    • (i) three cents per litre, where the gasoline was sold or imported on or after January 1, 1987 and before January 1, 1988,

    • (ii) four cents per litre, where the gasoline was sold or imported on or after January 1, 1988 and before April 1, 1988, and

    • (iii) five cents per litre, where the gasoline was sold or imported on or after April 1, 1988 and before January 1, 1990; and

  • (b) in the case of diesel fuel, at the rate of

    • (i) three cents per litre, where the diesel fuel was sold or imported on or after January 1, 1987 and before January 1, 1988, and

    • (ii) four cents per litre, where the diesel fuel was sold or imported on or after January 1, 1988 and before January 1, 1990.

• Marginal note:Diversion

  (9) Where the amount charged for gasoline or diesel fuel to a purchaser is reduced in accordance with subsection (3) or (5) or a payment is made under subsection (6) or (6.1) to a purchaser or importer of gasoline or diesel fuel and that person sells the gasoline or fuel or uses it for a purpose for which the reduction or payment could not, at the time of the purchase or importation, have been made, the amount of the reduction or payment shall be deemed to be a tax under this Act payable by that person,

  • (a) where that person sells the gasoline or fuel, at the time of delivery thereof to the purchaser from him; and

  • (b) where that person uses the gasoline or fuel, at the time of the use.

• Marginal note:Regulations

  (10) The Governor in Council may make regulations

  • (a) authorizing the issue of sales tax bulk permits to farmers, fishermen, hunters, trappers or other persons who use gasoline or diesel fuel for a purpose described in subsection (2) or (2.1) and prescribing the terms and conditions of the permits;

  • (b) prescribing the records to be maintained and returns to be filed by farmers, fishermen, hunters, trappers or other persons holding sales tax bulk permits;

  • (c) prescribing the times at which returns referred to in paragraph (b) are to be filed;

  • (d) authorizing the cancellation of any sales tax bulk permit where any term or condition of that permit is not complied with or where any provision of this Act or the regulations applicable to the person holding the permit is not complied with; and

  • (e) providing for a system of registration by the Minister of persons who regularly sell in bulk gasoline or diesel fuel to qualified farmers, qualified fishermen, qualified hunters, qualified trappers or qualified persons engaged in logging or mining, including, without limiting the generality of the foregoing,

    • (i) the form and manner of applying for, and the procedure for granting, registration,

    • (ii) the terms and conditions on which registration may be granted, and

    • (iii) the authorization of the Minister to cancel any registration where any term or condition of the registration is not complied with or where any provision of this Act or the regulations applicable to the registered vendor is not complied with.

Marginal note:Drawback on certain goods

• 70 (1) On application, the Minister may, under regulations of the Governor in Council, grant a drawback of the tax imposed under Part III and paid on or in respect of

  • (a) goods exported from Canada;

  • (b) goods supplied as ships’ stores;

  • (c) goods used for the equipment, repair or reconstruction of ships or aircraft; or

  • (d) goods delivered to telegraph cable ships proceeding on an ocean voyage for use in laying or repairing oceanic telegraph cables outside Canadian waters.

• Marginal note:Specific sum

  (2) The Minister may, under regulations of the Governor in Council, pay a specific sum in lieu of a drawback under subsection (1) in any case where a specific sum in lieu of a drawback of duties is granted under section 117 of the Customs Tariff.

• Marginal note:Drawback on imported goods

  (2.1) On application, the Minister of Public Safety and Emergency Preparedness may, under section 113 of the Customs Tariff, grant a drawback of the tax imposed under Part III and paid on or in respect of goods imported into Canada.

• Marginal note:Application for drawback

  (3) An application for a drawback under subsection (1) shall be made in the prescribed form and contain the prescribed information and shall be filed with the Minister within such time and in such manner as the Governor in Council may, by regulation, prescribe.

• Marginal note:Evidence

  (4) No drawback shall be granted under subsection (1) unless the person applying for the drawback provides such evidence in support of the application as the Minister may require.

• (5) [Repealed, 2002, c. 22, s. 381]

Marginal note:Definitions

• 70.1 (1) In this section,

  adjustment

  adjustment to the sale price of goods means the giving of a discount, allowance, rebate or other amount as a reduction in the sale price; (redressement)

  other enactment

  other enactment means

  • (a) a provision of an Act of Parliament, other than this Act, enacted before 1991, or

  • (b) a provision of a regulation or order enacted under an Act of Parliament before 1991; (autre texte)

  refund

  refund of tax means

  • (a) a refund of that tax, or other payment calculated with reference to that tax, provided for under any of sections 68, 68.1, 68.17, 68.19, 68.2 or 68.23 to 68.3,

  • (b) a drawback of that tax, or payment in lieu of a drawback of that tax, provided for under section 70, or

  • (c) a refund, rebate, drawback or remission of that tax, or other payment in respect of or calculated with reference to that tax, provided for under any other enactment; (remboursement)

  registrant

  registrant has the meaning assigned by subsection 123(1); (inscrit)

  tax

  tax means tax imposed under Part VI. (taxe)

• Marginal note:Adjustments after 1990

  (2) A refund of tax shall not be paid to a person (in this subsection referred to as the “vendor”) in respect of an adjustment made after 1990 to the sale price of goods sold by the vendor to a purchaser unless

  • (a) the vendor sold the goods to the purchaser under an agreement in writing, paid tax in respect of the sale of the goods, calculated on the sale price, and granted the adjustment within two years after the day on or before which the vendor was required to pay the tax under section 78; and

  • (b) the adjustment is provided for in the agreement and the making of the adjustment is not dependent on the performance of any service or other act by the purchaser.

• Marginal note:Exports after 1990

  (3) A refund of tax provided for under section 68.1 or 70 or any other enactment in respect of goods exported from Canada shall not be paid to a person in respect of goods exported by the person after 1990 unless

  • (a) the person had possession of the goods in Canada at the end of 1990 and was not a registrant on January 1, 1991; or

  • (b) the person imported the goods, had possession of the goods in Canada at the end of 1990 and was not entitled to be paid a rebate in respect of the goods under section 120, and the goods suffered damage or deterioration at any time before the goods were released, were of inferior quality to those in respect of which the person paid tax, were defective or were not the goods ordered by the person.

• Marginal note:Goods sold after 1990

  (4) A refund of tax provided for under section 68.17, 68.2 or 70 or any other enactment in respect of goods sold or otherwise supplied or transferred by a person to a purchaser or other transferee shall not be paid to the person unless the person transferred ownership or possession of the goods to the purchaser or other transferee of the goods before 1991.

• Marginal note:Goods for use by a province

  (5) A refund of tax shall not be paid under section 68.19 in respect of goods supplied, transferred or delivered to, or purchased by, Her Majesty in right of a province unless

  • (a) Her Majesty in that right acquired ownership or possession of the goods before 1991; or

  • (b) the goods were supplied or transferred to Her Majesty in that right by a person in the course of performing services under an agreement in writing with Her Majesty in that right and the person had possession of the goods in Canada at the end of 1990 and was not entitled to be paid a rebate in respect of the goods under section 120.

• Marginal note:System goods acquired after 1990

  (6) A refund of tax shall not be paid under section 68.23 to a person in respect of system goods unless the person acquired ownership or possession of the goods before 1991 and was not entitled to be paid a rebate in respect of the goods under section 120.

• Marginal note:Goods acquired by certain organizations after 1990

  (7) A refund of tax shall not be paid under any of sections 68.24 to 68.27 to a person (in this subsection referred to as the “organization”) unless

  • (a) in the case of goods purchased by the organization, the organization acquired ownership or possession of the goods before 1991; or

  • (b) in the case of goods acquired or used by another person for a purpose for which a refund of tax to the organization is provided for under that section, the other person acquired ownership or possession of the goods before 1991 and was not entitled to be paid a rebate in respect of the goods under section 120.

• Marginal note:Other goods acquired after 1990

  (8) A refund of tax in respect of goods purchased or otherwise acquired by a person shall not be paid under any of sections 68.28 to 68.3 or 70 or any other enactment to the person unless the person acquired ownership or possession of the goods before 1991.

Marginal note:Statutory recovery rights only

71 Except as provided in this or any other Act of Parliament, no person has a right of action against Her Majesty for the recovery of any moneys paid to Her Majesty that are taken into account by Her Majesty as taxes, penalties, interest or other sums under this Act.

Definition of application

• 72 (1) In this section, application means an application under any of sections 68 to 69.

• Marginal note:Form and contents of application

  (2) An application shall be made in the prescribed form and contain the prescribed information.

• Marginal note:Filing of application

  (3) An application shall be filed with the Minister in any manner that the Governor in Council may, by regulation, prescribe.

• Marginal note:Determination

  (4) On receipt of an application, the Minister shall, with all due dispatch, consider the application and determine the amount, if any, payable to the applicant.

• Marginal note:Minister not bound

  (5) In considering an application, the Minister is not bound by any application or information supplied by or on behalf of any person.

• Marginal note:Notice and payment

  (6) After considering an application, the Minister shall

  • (a) send to the applicant a notice of determination in the prescribed form setting out

    • (i) the date of the determination,

    • (ii) the amount, if any, payable to the applicant,

    • (iii) a brief explanation of the determination, where the Minister rejects the application in whole or in part, and

    • (iv) the period within which an objection to the determination may be made under section 81.17; and

  • (b) pay to the applicant the amount, if any, payable to him.

• Marginal note:Interest on payment

  (7) If an amount is paid to an applicant under subsection (6), the Minister shall pay interest at the prescribed rate to the applicant on the amount for the period beginning on the day that is 30 days after the day on which the application was received by the Minister and ending on the day on which the amount is paid.

• (8) [Repealed, 2003, c. 15, s. 98]

• Marginal note:Determination valid and binding

  (9) A determination under subsection (4), including a determination varied under section 81.17, subject to being varied or vacated on an objection or appeal under this Part and subject to an assessment, shall be deemed to be valid and binding notwithstanding any irregularity, informality, error, defect or omission therein or in any proceeding under this Act relating thereto.

• Marginal note:Irregularities

  (10) No determination under subsection (4) shall be varied or vacated on an appeal by reason only of an irregularity, informality, error, defect or omission by any person in the observance of any directory provision of this Act.

Marginal note:Deductions of tax, other than Part I tax, where no application

• 73 (1) Any person authorized pursuant to subsection (4) who files a return under section 20, 21.32 or 78 and to whom an amount would be payable under any of sections 68 to 68.153 or 68.17 to 69 if that person duly applied therefor on the day on which he files the return, in lieu of applying for that amount, may in that return report that amount and deduct it or any part thereof from the amount of any payment or remittance of tax, penalty, interest or other sum that is reported in that return.

• Marginal note:Deductions of Part I tax

  (2) Any person who makes a return under subsection 5(1) and to whom an amount would be payable under section 68 if the person duly applied therefor on the day on which that return is made, in lieu of applying for that amount, may in that return report that amount and deduct it or any part thereof from the amount of any payment of tax, penalty, interest or other sum that is reported in that return.

• Marginal note:Subsequent deductions

  (3) Where a person reports an amount in accordance with subsection (1) or (2) and does not deduct the whole amount in the return in which it is reported, the person may, in any subsequent return, report the amount not previously deducted under this section and deduct it or any part thereof from the amount of any payment or remittance of tax, penalty, interest or other sum that is reported in that subsequent return.

• Marginal note:Authorizations and terms

  (4) The Minister may, in writing,

  • (a) authorize a specified person, a person of a specified class of persons or persons generally to make deductions under subsections (1) and (3) either generally or with respect to any transaction of a specified class of transactions;

  • (b) amend an authorization made pursuant to paragraph (a) or suspend or revoke any such authorization either generally or with respect to a specified person or a person of a specified class of persons; and

  • (c) specify the terms and conditions on which, and the manner in which, deductions may be made under subsection (1), (2) or (3).

• Marginal note:Presumption

  (5) Where a person deducts an amount under this section,

  • (a) the person is deemed to have paid, on the day he filed or made the return in which the amount was deducted, an amount equal to that amount on account of his tax, penalty, interest or other sum payable under this Act in respect of the period for which the return was filed or made; and

  • (b) the Minister is deemed to have paid, on that day, an amount equal to that amount to that person in accordance with section 72.

73.1 [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 34]

Marginal note:Deductions of tax, other than Part I tax, where application

• 74 (1) In lieu of making a payment, other than a payment in respect of Part I, pursuant to an application under any of sections 68 to 68.11 or 68.17 to 69, the Minister may, on request of the applicant, authorize the applicant to deduct, on such terms and conditions and in such manner as the Minister may specify, the amount that would otherwise be paid to the applicant from the amount of any payment or remittance of tax, penalty, interest or other sum that is reported in a return under section 78 by the applicant.

• Marginal note:Notification of applicant

  (2) Where the Minister authorizes an applicant to make a deduction under subsection (1), the Minister shall notify the applicant to that effect in the notice of determination sent to the applicant.

• Marginal note:Interest on deduction

  (3) If a deduction is authorized under subsection (1), interest shall be authorized at the prescribed rate as a deduction in accordance with that subsection for the period beginning on the day that is 30 days after the day on which the application for the payment in respect of which the deduction was authorized was received by the Minister and ending on the day on which the notice of determination was sent.

• (4) [Repealed, 2003, c. 15, s. 99]

• Marginal note:Presumption

  (5) Where an applicant deducts an amount under this section,

  • (a) the applicant is deemed to have paid, on the day he filed the return in which the amount was deducted, an amount equal to that amount on account of his tax, penalty, interest or other sum payable under this Act in respect of the period for which the return was filed; and

  • (b) the Minister is deemed to have paid, on the day the notice of determination is sent to the applicant, an amount equal to that amount to the applicant in accordance with section 72.

Marginal note:Recovery of deduction from licensee

• 75 (1) Where a licensee makes a deduction under section 73 or 74 in lieu of receiving a payment pursuant to section 68.15, subsection 68.15(3) applies, with such modifications as the circumstances require, with respect to the amount of the deduction as if it were a refunded amount within the meaning of that subsection.

• Marginal note:Recovery of deduction from licensed manufacturer

  (2) Where a licensed manufacturer makes a deduction under section 73 or 74 in lieu of receiving a payment pursuant to section 68.21, subsection 68.21(3) applies, with such modifications as the circumstances require, with respect to the amount of the deduction as if it were a refunded amount within the meaning of that subsection.

75.1 [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 34]

• 75.2 [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 34]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 15 (1st Supp.), s. 25, c. 7 (2nd Supp.), ss. 32, 34

Marginal note:Calculation of payment or deduction

76 Where circumstances render it difficult to determine the exact amount of any payment that may be made pursuant to any of sections 68 to 68.29 or any deduction that may be made under section 73 or 74, the Minister, with the consent of the person to whom the payment or by whom the deduction may be made, may in lieu of that amount make a payment pursuant to, or authorize a deduction under, that section in an amount determined, in such manner as the Governor in Council may by regulation prescribe, to be the exact amount of the payment or deduction.

77 [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 34]

Returns and Payment of Tax

Marginal note:Determination of fiscal months

• 78 (1) The fiscal months of a person shall be determined in accordance with the following rules:

  • (a) if fiscal months of the person have been determined under subsection 243(2) or (4) for the purposes of Part IX, each of those fiscal months is a fiscal month of the person for the purposes of this Act;

  • (b) if fiscal months of the person have not been determined under subsection 243(2) or (4) for the purposes of Part IX, the person may select for the purposes of this Act fiscal months that meet the requirements set out in subsection 243(2); and

  • (c) if neither paragraph (a) nor paragraph (b) applies, each calendar month is a fiscal month of the person for the purposes of this Act.

• Marginal note:Notification of Minister

  (2) Every person who is required to file a return shall notify the Minister of their fiscal months in the prescribed form and manner.

Marginal note:Returns and payments

• 79 (1) Every person who is required to pay tax under Part III and every person who holds a licence granted under or in respect of that Part shall, not later than the last day of the first month after each fiscal month of the person,

  • (a) file a return with the Minister, in the prescribed form and manner, for that fiscal month;

  • (b) calculate, in the return, the total amount of the tax payable, if any, by the person for that fiscal month; and

  • (c) pay that amount to the Receiver General.

• Marginal note:Authority for extended reporting period

  (2) Despite subsection (1), the Minister may authorize a person to file a return and pay tax in respect of

  • (a) any period longer than one fiscal month but not more than six fiscal months, if the tax payable by that person under Part III for the preceding twelve fiscal months did not exceed $4,800; or

  • (b) any period longer than one fiscal month but not more than six fiscal months, if

    • (i) the activities of the person that give rise to tax payable by that person under Part III are predominantly limited to a seasonal period of operation, and

    • (ii) the tax payable by that person under Part III for the equivalent period in the preceding twelve fiscal months did not exceed an average of $400 per fiscal month during that equivalent period.

• Marginal note:Filing of return for extended reporting period

  (3) If the Minister authorizes a person under subsection (2) to file a return and pay tax in respect of a period longer than one fiscal month, the person shall, not later than the last day of the first month after the end of the period, file the return and pay any tax owing.

Marginal note:Transition to reporting based on fiscal months

79.01 For the purposes of sections 78, 79 and 79.1, if the period that includes July 1, 2003 for which a person would have been required to file a return under section 78 as it read before that day (which period is referred to in this section as the pre-existing accounting period) overlaps one or more fiscal months of the person, including any part of a fiscal month, the following rules apply:

• (a) the person shall file a return and pay any amounts owing in respect of the pre-existing accounting period in the same manner and at the same time as the person would have been required to under section 78 as it read before that day; and

• (b) in the case of a particular fiscal month that includes the last day of the pre-existing accounting period, the portion of that particular fiscal month after that last day is deemed to be part of the first fiscal month following the particular fiscal month and, for this purpose, that following fiscal month may exceed 35 days in length.

Marginal note:Amounts owing of $2 or less in total

• 79.02 (1) If the Minister determines, at any time, that the total of all amounts owing by a person to Her Majesty in right of Canada under this Act does not exceed two dollars, those amounts are deemed to be nil.

• Marginal note:Amounts payable of $2 or less in total

  (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister shall apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada under this Act. However, if the person, at that time, does not owe any amount to Her Majesty, those amounts payable are deemed to be nil.

Marginal note:Compound interest on amounts not paid when required

• 79.03 (1) If a person fails to pay an amount to the Receiver General as and when required under this Act, the person shall pay to the Receiver General interest on the amount. The interest shall be compounded daily at the prescribed rate and computed for the period beginning on the first day after the day on which the amount was required to be paid and ending on the day on which the amount is paid.

• Marginal note:Payment of interest that is compounded

  (2) For the purposes of subsection (1), interest that is compounded on a particular day on an unpaid amount of a person is deemed to be required to be paid by the person to the Receiver General at the end of the particular day, and, if the person has not paid the interest so computed by the end of the day after the particular day, the interest shall be added to the unpaid amount at the end of the particular day.

• Marginal note:Period where interest not payable

  (3) Despite any other provision of this Act, if the Minister notifies a person that the person is required to pay a specified amount under this Act and the person pays the specified amount in full before the end of the period that the Minister specifies with the notice, interest is not payable on the specified amount for the period.

• Marginal note:Interest amounts of $25 or less

  (4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest, owing at that time to Her Majesty in right of Canada under this Act for a fiscal month of the person and the total amount of interest payable by the person under this Act for that month is not more than $25.00, the Minister may cancel the interest.

Marginal note:Compound interest on amounts owed by Her Majesty

79.04 Interest shall be compounded daily at the prescribed rate on any amount payable by the Minister to a person. The interest shall be computed for the period beginning on the first day after the day on which the amount is required to be paid and ending on the day on which the amount is paid or is applied against an amount owed by the person to Her Majesty in right of Canada, unless this Act provides otherwise.

Marginal note:Application of interest provisions if Act amended

79.05 For greater certainty, if a provision of an Act amends this Act and provides that the amendment comes into force on, or applies as of, a particular day that is before the day on which the provision is assented to, the provisions of this Act that relate to the calculation and payment of interest apply in respect of the amendment as though the provision had been assented to on the particular day.

Marginal note:Interpretation

• 79.1 (1) For the purposes of this section,

  • (a) a person's "instalment base"

    • (i) for a fiscal month is the lesser of

      • (A) the tax payable under Part III, other than tax payable in accordance with the Customs Act, by that person in that month, and

      • (B) the tax so payable in the last preceding fiscal month, and

    • (ii) for any period authorized under subsection 79(2) is the lesser of

      • (A) the tax payable under Part III, other than tax payable in accordance with the Customs Act, by that person in that period, and

      • (B) the tax so payable in the last preceding period so authorized multiplied by the ratio that the number of days in the period to which the return relates is to the number of days in that last preceding period; and

    • (iii) [Repealed, 2003, c. 15, s. 101]

  • (b) a person is a "large taxpayer" at any particular time if

    • (i) the aggregate amount of tax payable under Part III, other than tax payable in accordance with the Customs Act, by that person in the last preceding calendar year ending at least ninety days, or ninety-one days if that time falls in a leap year, before that time exceeded twelve million dollars, or

    • (ii) the person

      • (A) was, at any time in the last preceding calendar year ending at least ninety days, or ninety-one days if that time falls in a leap year, before that time, a member of a group of associated corporations (within the meaning of section 256 of the Income Tax Act) and the aggregate amount of taxes payable under Part III, other than taxes payable in accordance with the Customs Act, by the group in that year exceeded twelve million dollars, and

      • (B) is not, at that time, authorized under subsection 79(2) to file a return for a period longer than one fiscal month.

• Marginal note:Instalment payments by large taxpayers

  (2) A large taxpayer who is required to file a return and pay tax under subsection 79(1) shall pay two instalments, each equal to one-half of the taxpayer's instalment base for the fiscal month in which the tax became payable or the sales were made, as the case may be, the first to be paid not later than the last day of that month and the second not later than the day that is 15 days after that last day.

• Marginal note:Instalment payments by other persons

  (3) A person, other than a large taxpayer, who is required under subsection 79(1) or (3) to file a return and pay tax in respect of a fiscal month or other period authorized under subsection 79(2) shall, not later than 21 days after the end of the month or period, as the case may be, pay an instalment on account of the tax equal to the person's instalment base for the month or period.

• (4) to (8) [Repealed, 2003, c. 15, s. 101]

Marginal note:Filing of return by mail

• 79.2 (1) If a person who is required under this Act to file a return with the Minister does so by mailing the return, the return is deemed to have been filed with the Minister on the day on which the return was mailed and the date of the postmark is evidence of that day.

• Marginal note:Payment or remittance of amounts

  (2) A person who is required under this Act to pay or remit an amount to the Receiver General shall not be considered as having paid or remitted the amount until it is received by the Receiver General.

Marginal note:Report by licence holders

• 80 (1) Every person holding a licence in respect of Part III shall submit to the Minister each year, within six months after the end of that person’s fiscal year, a report in the prescribed form containing details of that person’s sales, taxes paid under this Act and deductions under subsection 69(2) in the fiscal year and any other prescribed information.

• Marginal note:Alternate reporting

  (2) Any person filing a return under section 79 may, in lieu of submitting a report under subsection (1), include in the return a report in the prescribed form containing details of the person’s sales, taxes paid under this Act and deductions under subsection 69(2) in the period to which the return relates and any other prescribed information.

Security

Marginal note:Security generally

• 80.1 (1) The Minister may, if he considers it advisable in a particular case, accept security for the payment of any tax, penalty, interest or other sum that is or may become payable under this Act.

• Marginal note:Security on objection or appeal

  (2) Where a person is making an objection to or appealing from an assessment, the Minister shall accept adequate security furnished by or on behalf of that person for the payment of any tax, penalty, interest or other sum that is in controversy.

• Marginal note:Surrender of security

  (3) Where a person who has furnished security, or on whose behalf security has been furnished, under this section requests in writing that the Minister surrender the security or any part thereof, the Minister shall surrender the security to the extent that the value thereof exceeds the amount, at the time the request is received by the Minister, of any tax, penalty, interest or other sum for the payment of which the security was furnished.

• Marginal note:Discharge of security

  (4) The Minister may discharge in writing any security accepted by the Minister pursuant to this section.

Obligation of Trustees

Marginal note:Certificate before distribution

• 81 (1) Every executor, liquidator of a succession, administrator, assignee, liquidator or other like person, other than a trustee in bankruptcy, shall, before distributing any assets under his control in that capacity, obtain a certificate from the Minister certifying that no tax, penalty, interest or other sum under this Act, other than Part I, chargeable against or payable by that person in that capacity or chargeable against or payable in respect of those assets, remains unpaid or that security for the payment thereof has, in accordance with section 80.1, been accepted by the Minister.

• Marginal note:Personal liability

  (2) Any person who distributes assets without a certificate as required by subsection (1) is personally liable to pay to Her Majesty an amount equal to the lesser of

  • (a) the value of the assets so distributed, and

  • (b) the amount of any tax, penalty, interest or other sum that remains unpaid and for the payment of which security has not been furnished to the Minister.

Assessments

Marginal note:Assessment

• 81.1 (1) The Minister may, in respect of any matter, assess a person for any tax, penalty, interest or other sum payable by that person under this Act and may, notwithstanding any previous assessment covering, in whole or in part, the same matter, make such additional assessments as the circumstances require.

• Marginal note:Reassessment

  (2) The Minister may, in respect of any matter covered by an assessment, vary the assessment or reassess the person assessed.

• Marginal note:Completion of assessment

  (3) An assessment shall be completed with all due dispatch and may be performed in such manner and form and by such procedure as the Minister considers appropriate.

• Marginal note:Minister not bound

  (4) The Minister is not bound by any return, application or information supplied by or on behalf of any person and may make an assessment, notwithstanding any return, application or information so supplied or that no return, application or information has been supplied.

• Marginal note:Determination of refunds

  (5) In making an assessment, the Minister may determine whether an amount is payable to the person being assessed pursuant to any of sections 68 to 68.29.

• Marginal note:Presumption

  (6) For the purposes of determining, in making an assessment, whether an amount is payable to the person being assessed pursuant to any of sections 68 to 68.29, the person is deemed to have duly made an application under the section on the day on which the notice of assessment is sent to him.

• Marginal note:Determination of credits

  (7) In making an assessment, the Minister may determine whether a credit may be allowed to the person being assessed pursuant to subsections (8) to (10).

• Marginal note:When credit may be allowed

  (8) Where an amount would be payable to the person being assessed pursuant to any of sections 68 to 68.29

  • (a) if that person had duly made an application under the section on the day on which the notice of assessment is sent to him, and

  • (b) if the reference in the section to “two years” were read as a reference to “four years”,

  a credit in that amount may be allowed to that person.

• Marginal note:Maximum credits allowable

  (9) The aggregate of the credits that may be allowed to the person being assessed shall not exceed the aggregate of the taxes, interest, penalty or other sums, if any, remaining unpaid by that person for the period beginning four years before the day on which the notice of assessment is sent to him and ending immediately before two years before that day.

• Marginal note:Restriction

  (10) No credit may be allowed for any amount that the Minister, pursuant to subsection (5), determines is payable to the person being assessed.

Marginal note:Sums not assessable

• 81.11 (1) No assessment shall be made for any penalty or fine imposed pursuant to a conviction for an offence under this Act.

• Marginal note:Limitation period for assessments

  (2) Subject to subsections (3) to (5), no assessment shall be made for any tax, penalty, interest or other sum more than four years after the tax, penalty, interest or sum became payable under this Act.

• Marginal note:Exception where objection or appeal

  (3) A variation of an assessment, or a reassessment, may be made at any time pursuant to subsection 81.15(4) or 81.38(1).

• Marginal note:Exception where neglect or fraud

  (4) An assessment in respect of any matter may be made at any time where the person to be assessed has, in respect of that matter,

  • (a) made a misrepresentation that is attributable to his neglect, carelessness or wilful default; or

  • (b) committed fraud in filing or making or failing to file or make a return, or in supplying or failing to supply any information, under this Act.

• Marginal note:Exception where waiver

  (5) An assessment in respect of any matter specified in a waiver filed pursuant to subsection (6) may be made at any time within the period specified in the waiver or, if a notice of revocation of the waiver has been filed pursuant to subsection (7), within the period commencing on the day on which the period specified in the waiver commences and ending six months after the day on which the notice is filed.

• Marginal note:Filing waiver

  (6) Any person may, within the time otherwise limited by subsection (2) for assessing that person, waive the application of that subsection to him by filing with the Minister a waiver in the prescribed form specifying the period for which, and the matter in respect of which, the person waives the application of that subsection.

• Marginal note:Revoking waiver

  (7) Any person who has filed a waiver pursuant to subsection (6) may revoke the waiver on six months notice to the Minister by filing with the Minister a notice of revocation of the waiver in the prescribed form.

Marginal note:Liability not affected

• 81.12 (1) Liability under this Act for any tax, penalty, interest or other sum is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made.

• Marginal note:Valid and binding

  (2) An assessment, subject to being varied or vacated on an objection or appeal under this Part and subject to a reassessment, shall be deemed to be valid and binding notwithstanding any irregularity, informality, error, defect or omission therein or in any proceeding under this Act relating thereto.

• Marginal note:Irregularities

  (3) No assessment shall be vacated or varied on an appeal by reason only of an irregularity, informality, error, defect or omission on the part of any person in the observance of any directory provision of this Act.

Marginal note:Notice of assessment

• 81.13 (1) After completing an assessment, otherwise than pursuant to subsection 81.15(4) or 81.38(1), the Minister shall send to the person assessed a notice of assessment in the prescribed form setting out

  • (a) the date of the assessment;

  • (b) the matter covered by the assessment;

  • (c) the amount owing or overpayment, if any, by the person assessed;

  • (d) a brief explanation of the assessment; and

  • (e) the period within which an objection to the assessment may be made under section 81.15.

• Marginal note:Tax payable

  (2) Where an assessment establishes that any tax, penalty, interest or other sum payable under this Act remains unpaid by the person assessed, the notice of assessment shall set out separately the taxes, penalties, interest and other sums payable and the aggregate thereof.

• Marginal note:Refund payable

  (3) Where an assessment establishes that an amount is payable pursuant to any of sections 68 to 68.29 to the person assessed, the notice of assessment shall set out the aggregate of the amounts payable.

• Marginal note:Credit allowable

  (4) Where an assessment establishes that a credit is allowable pursuant to section 81.1 to the person assessed, the notice of assessment shall set out the aggregate of the credits allowable.

• Marginal note:No tax, refund or credit

  (5) Where an assessment establishes that

  • (a) no tax, penalty, interest or other sum payable under this Act remains unpaid by the person assessed,

  • (b) no amount is payable pursuant to any of sections 68 to 68.29 to the person assessed, or

  • (c) no credit is allowable pursuant to section 81.1 to the person assessed,

  in respect of the matter covered by the assessment, the notice of assessment shall contain a statement to that effect.

• Marginal note:Amounts not considered

  (6) For the purposes of determining the sums, amounts and credits referred to in subsections (2) to (5), where the assessment is a variation of an assessment, or a reassessment, no amount paid by the person assessed or the Minister on account of the amount owing or overpayment as set out in the notice of the original assessment or any subsequent assessment related thereto, and no amount deemed by subsection 81.14(2) to have been paid, shall be taken into consideration.

• Marginal note:Definitions

  (7) For the purposes of this section and section 81.14,

  amount owing

  amount owing, in respect of a person assessed, means

  • (a) where the assessment is an original assessment, the amount by which

    • (i) the aggregate of all taxes, penalties, interest and other sums remaining unpaid by that person, as set out in the notice of assessment pursuant to subsection (2),

    exceeds

    • (ii) the aggregate of

      • (A) all amounts payable to that person, as set out in the notice of assessment pursuant to subsection (3), and

      • (B) the credits allowable to that person, as set out in the notice of assessment pursuant to subsection (4), and

  • (b) where the assessment is a variation of an assessment, or a reassessment, the amount by which

    • (i) the amount obtained by subtracting

      • (A) the amount paid by that person on account of the amount owing as set out in the notice of the original assessment or any subsequent assessment related thereto

      from

      • (B) the aggregate of all taxes, penalties, interest and other sums remaining unpaid by that person, as set out in the notice of the varied assessment or reassessment pursuant to subsection (2),

    exceeds

    • (ii) the amount obtained by subtracting

      • (A) the amount paid to that person pursuant to subsection 81.14(1) in respect of an overpayment as set out in the notice of the original assessment or any subsequent assessment related thereto

      from

      • (B) the aggregate of

        • (I) all amounts payable to that person, as set out in the notice of the varied assessment or reassessment pursuant to subsection (3), and

        • (II) the credits allowable to that person, as set out in the notice of the varied assessment or reassessment pursuant to subsection (4); (montant dû)

  overpayment

  overpayment, in respect of a person assessed, means

  • (a) where the assessment is an original assessment, the amount by which the aggregate described in subparagraph (a)(ii) of the definition amount owing in this subsection exceeds the aggregate described in subparagraph (a)(i) of that definition, and

  • (b) where the assessment is a variation of an assessment, or a reassessment, the amount by which the amount described in subparagraph (b)(ii) of that definition exceeds the amount described in subparagraph (b)(i) of that definition. (paiement en trop)

Marginal note:Payment by Minister on assessment

• 81.14 (1) Where an assessment establishes that there is an overpayment by the person assessed, the Minister shall pay to that person the amount of the overpayment as set out in the notice of assessment.

• Marginal note:Presumption

  (2) Where an assessment establishes that an amount is payable pursuant to any of sections 68 to 68.29, or a credit is allowable pursuant to section 81.1, to the person assessed,

  • (a) that person is deemed to have paid, on the day on which the notice of assessment is sent to him, an amount equal to the lesser of

    • (i) where the assessment is an original assessment, the aggregates described in subparagraphs (a)(i) and (ii) of the definition amount owing in subsection 81.13(7), and

    • (ii) where the assessment is a variation of an assessment, or a reassessment, the amounts described in subparagraphs (b)(i) and (ii) of that definition

    on account of the person’s tax, penalty, interest or other sum payable under this Act in respect of the matter covered by the assessment; and

  • (b) the Minister is deemed to have paid, on that day, to the person assessed in accordance with section 72 the amount, if any, by which the amount deemed by paragraph (a) to have been paid exceeds the aggregate of the credits described in clause (a)(ii)(B) or subclause (b)(ii)(B)(II), as the case may be, of that definition.

• Marginal note:No deemed double payments

  (3) Subsection (2) ceases to apply in respect of an assessment if the assessment is subsequently vacated or varied or a reassessment is made in respect of any matter covered by the assessment but, for greater certainty, subject to this subsection, where the assessment is varied or the reassessment is made otherwise than pursuant to subsection 81.15(4) or 81.38(1), subsection (2) applies in respect of the varied assessment or the reassessment, as the case may be.

Objections

Marginal note:Objection to assessment

• 81.15 (1) Any person who has been assessed, otherwise than pursuant to subsection (4) or 81.38(1), and who objects to the assessment may, within ninety days after the day on which the notice of assessment is sent to him, serve on the Minister a notice of objection in the prescribed form setting out the reasons for the objection and all relevant facts on which that person relies.

• Marginal note:Service

  (2) Service of a notice of objection on the Minister shall be effected by prepaid mail addressed to the Minister at Ottawa.

• Marginal note:Acceptance of other service

  (3) The Minister may accept a notice of objection notwithstanding that it was not served in accordance with subsection (2).

• Marginal note:Consideration of objection

  (4) Subject to section 81.21, on receipt of a notice of objection, the Minister shall, with all due dispatch, reconsider the assessment and vacate, vary or confirm the assessment or make a reassessment.

• Marginal note:Notice of decision

  (5) After reconsidering an assessment, the Minister shall send to the person objecting a notice of decision in the prescribed form setting out

  • (a) the date of the decision;

  • (b) the amount owing or overpayment by the person objecting, where the Minister varies the assessment or makes a reassessment;

  • (c) a brief explanation of the decision; and

  • (d) the period within which an appeal may be made under section 81.19 or 81.2.

• Marginal note:Tax payable

  (6) Where the variation of an assessment, or a reassessment, on an objection establishes that any tax, penalty, interest or other sum payable under this Act remains unpaid by the person objecting, the notice of decision shall set out separately the taxes, penalties, interest and other sums payable and the aggregate thereof.

• Marginal note:Refund payable

  (7) Where the variation of an assessment, or a reassessment, on an objection establishes that an amount is payable pursuant to any of sections 68 to 68.29 to the person objecting, the notice of decision shall set out the aggregate of the amounts payable.

• Marginal note:Credit allowable

  (8) Where the variation of an assessment, or a reassessment, on an objection establishes that a credit is allowable pursuant to section 81.1 to the person objecting, the notice of decision shall set out the aggregate of the credits allowable.

• Marginal note:No tax, refund or credit

  (9) Where the variation of an assessment, or a reassessment, on an objection establishes that

  • (a) no tax, penalty, interest or other sum payable under this Act remains unpaid by the person objecting,

  • (b) no amount is payable pursuant to any of sections 68 to 68.29 to the person objecting, or

  • (c) no credit is allowable pursuant to section 81.1 to the person objecting,

  in respect of the matter covered by the varied assessment or reassessment, the notice of decision shall contain a statement to that effect.

• Marginal note:Amounts not considered

  (10) For the purposes of determining the sums, amounts and credits referred to in subsections (6) to (9), no amount paid by the person objecting or the Minister on account of the amount owing or overpayment as set out in the notice of assessment, and no amount deemed by subsection 81.14(2) to have been paid, shall be taken into consideration.

• Marginal note:Definitions

  (11) For the purposes of this section and section 81.16,

  amount owing

  amount owing, in respect of a person objecting, means the amount by which

  • (a) the amount obtained by subtracting

    • (i) the amount paid by that person on account of the amount owing as set out in the notice of assessment

    from

    • (ii) the aggregate of all taxes, penalties, interest and other sums remaining unpaid by that person, as set out in the notice of decision pursuant to subsection (6)

  exceeds

  • (b) the amount obtained by subtracting

    • (i) the amount paid to that person pursuant to subsection 81.14(1)

    from

    • (ii) the aggregate of

      • (A) all amounts payable to that person, as set out in the notice of decision pursuant to subsection (7), and

      • (B) the credits allowable to that person, as set out in the notice of decision pursuant to subsection (8); (montant dû)

  overpayment

  overpayment, in respect of a person objecting, means the amount by which the amount described in paragraph (b) of the definition amount owing in this subsection exceeds the amount described in paragraph (a) of that definition. (paiement en trop)