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Excise Tax Act (R.S.C., 1985, c. E-15)

Full Document:  

Act current to 2022-11-16 and last amended on 2022-10-01. Previous Versions

PART VIIGeneral (continued)

Deductions, Refunds and Drawbacks (continued)

Marginal note:Recovery of deduction from licensee

  •  (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.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 75
  • R.S., 1985, c. 7 (2nd Supp.), ss. 30, 34

 [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 34]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. 31, 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  • 75.2 [Repealed, R.S., 1985, c. 7 (2nd Supp.), s. 34]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

 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.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 76
  • R.S., 1985, c. 15 (1st Supp.), s. 25, c. 7 (2nd Supp.), s. 34

Marginal note:Restriction on refunds and credits

 A refund shall not be paid, and a credit shall not be allowed, to a person under this Act until the person has filed with the Minister all returns and other records of which the Minister has knowledge that are required to be filed under the Excise Tax Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act and the Select Luxury Items Tax Act.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 77
  • R.S., 1985, c. 15 (1st Supp.), s. 25, c. 7 (2nd Supp.), ss. 33, 34
  • 2006, c. 4, s. 126
  • 2022, c. 5, s. 14
  • 2022, c. 10, s. 140
  • 2022, c. 10, s. 173

Returns and Payment of Tax

Marginal note:Determination of fiscal months

  •  (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:Determination of fiscal half-years

    (1.1) The fiscal half-years of a person shall be determined in accordance with the following rules:

    • (a) the period beginning on the first day of the first fiscal month in a fiscal year of the person and ending on the earlier of the last day of the sixth fiscal month and the last day in the fiscal year is a fiscal half-year of the person; and

    • (b) the period, if any, beginning on the first day of the seventh fiscal month and ending on the last day in the fiscal year of the person is a fiscal half-year of the person.

  • 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.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 78
  • R.S., 1985, c. 15 (1st Supp.), s. 26, c. 7 (2nd Supp.), s. 35, c. 12 (4th Supp.), s. 31
  • 2001, c. 16, s. 32
  • 2002, c. 22, s. 382
  • 2003, c. 15, ss. 100, 130
  • 2010, c. 25, s. 128

Marginal note:Reporting period — general

  •  (1) Subject to this section, the reporting period of a person is a fiscal month.

  • Marginal note:Reporting period — semi-annual

    (2) On application in the prescribed form and manner by a person, the Minister may, in writing, authorize the reporting period of that person to be a fiscal half-year in a particular fiscal year if

    • (a) the person has been required to pay tax under Part III, or has been holding a licence granted under or in respect of that Part, for a period exceeding twelve consecutive fiscal months;

    • (b) the total of all taxes payable under Part III by the person and any person associated with the person in the fiscal year ending immediately before the particular fiscal year did not exceed $120,000;

    • (c) the total of all taxes payable under Part III by the person and any person associated with the person in the particular fiscal year does not exceed $120,000; and

    • (d) the person is in compliance with this Act.

  • Marginal note:Deemed revocation

    (3) An authorization under subsection (2) is deemed to be revoked if the total of all taxes payable under Part III by the person and any person associated with the person exceeds $120,000 in a fiscal year, which revocation is effective as of the first day after the end of the fiscal half-year in which the excess occurs.

  • Marginal note:Revocation — other

    (4) The Minister may revoke an authorization if

    • (a) the person requests in writing the Minister to do so;

    • (b) the person fails to comply with this Act; or

    • (c) the Minister considers that the authorization is no longer required.

  • Marginal note:Notice of revocation

    (5) If the Minister revokes an authorization under subsection (4), the Minister shall send a notice in writing of the revocation to the person and shall specify in the notice the fiscal month for which the revocation becomes effective.

  • Marginal note:Deemed reporting period on revocation

    (6) If a revocation under subsection (4) becomes effective before the last day of a fiscal half-year of a person that is authorized under subsection (2), the period beginning on the first day of the fiscal half-year and ending immediately before the first day of the fiscal month for which the revocation becomes effective is deemed to be a reporting period of the person.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2010, c. 25, s. 129

Marginal note:Returns and payments

  •  (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 reporting period of the person,

    • (a) file a return with the Minister, in the prescribed form and manner, for that reporting period;

    • (b) calculate, in the return, the total amount of the tax payable, if any, by the person for that reporting period, and

    • (c) pay that amount to the Receiver General.

  • (2) and (3) [Repealed, 2010, c. 25, s. 130]

  • Marginal note:Demand for return

    (4) The Minister may, on demand sent by the Minister, require a person to file, within any reasonable time stipulated in the demand, a return under this Act for any period designated in the demand.

  • Marginal note:Failure to answer a demand

    (5) Every person who fails to file a return as and when required under a demand issued under subsection (4) is liable to a penalty of $250.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 79
  • R.S., 1985, c. 15 (1st Supp.), s. 26, c. 7 (2nd Supp.), s. 36, c. 12 (4th Supp.), s. 32
  • 1995, c. 46, s. 4
  • 2000, c. 30, s. 14
  • 2002, c. 22, s. 383
  • 2003, c. 15, ss. 100, 130
  • 2006, c. 4, s. 127
  • 2010, c. 25, s. 130
  • 2012, c. 19, s. 19

 [Repealed, 2006, c. 4, s. 128]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2003, c. 15, s. 100
  • 2006, c. 4, s. 128

Marginal note:Amounts owing of $2 or less in total

  •  (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 may apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada. However, if the person, at that time, does not owe any amount to Her Majesty in right of Canada, those amounts payable are deemed to be nil.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2003, c. 15, s. 100
  • 2006, c. 4, s. 129

Marginal note:Compound interest on amounts not paid when required

  •  (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 and penalty 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 and penalty under subsection 7(1.1) or 68.5(9.1) or section 95.1 or 95.2, owing at that time to Her Majesty in right of Canada under this Act for a reporting period of the person and the total amount of interest and penalty payable by the person under this Act for that reporting period is not more than $25.00, the Minister may cancel the interest and penalty.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2003, c. 15, s. 100
  • 2006, c. 4, s. 130
  • 2014, c. 20, s. 84

Marginal note:Compound interest on amounts owed by Her Majesty

 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.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2003, c. 15, s. 100

Marginal note:Application of interest provisions if Act amended

 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.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 2003, c. 15, s. 100

 [Repealed, 2006, c. 4, s. 131]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 12 (4th Supp.), s. 33
  • 1999, c. 31, s. 247
  • 2002, c. 22, s. 384
  • 2003, c. 15, ss. 101, 130
  • 2006, c. 4, s. 131

Marginal note:Filing of return by mail

  •  (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.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 12 (4th Supp.), s. 33
  • 1999, c. 17, ss. 150(E), 156
  • 2003, c. 15, s. 102
 
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