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

Full Document:  

Act current to 2022-09-22 and last amended on 2022-09-01. Previous Versions

PART IInsurance Premiums Other than Marine

Marginal note:Definitions

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Superintendent[Repealed, 1999, c. 17, s. 146]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 3
  • R.S., 1985, c. 18 (3rd Supp.), s. 35
  • 1999, c. 17, s. 146

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

  •  (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.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 4
  • 1999, c. 17, s. 147

Marginal note:Returns

  •  (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.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 5
  • R.S., 1985, c. 7 (2nd Supp.), s. 2

Marginal note:Examination of books and records

 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.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 6
  • 1992, c. 1, s. 64
  • 1999, c. 17, s. 148

Marginal note:Definition

  •  (1) In this section, 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.

  • Marginal note:Failure to file a return when required

    (1.1) Every person who fails to file a return for a period as and when required under subsection 5(1) shall pay a penalty equal to the sum of

    • (a) an amount equal to 1% of the amount of tax unpaid at the expiration of the time for filing the return, and

    • (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on which the return was required to be filed to the day on which the return is filed.

  • 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.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 7
  • R.S., 1985, c. 7 (2nd Supp.), s. 3
  • 2003, c. 15, s. 94
  • 2006, c. 4, s. 124

PART IIAir Transportation Tax

Interpretation

Marginal note:Definitions

 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)

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 8
  • R.S., 1985, c. 15 (1st Supp.), s. 2, c. 28 (3rd Supp.), s. 287
  • 1996, c. 10, s. 225

Her Majesty

Marginal note:Binding on Her Majesty

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

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., c. E-13, s. 9

Tax Imposed

Marginal note:Tax imposed

  •  (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.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 10
  • R.S., 1985, c. 15 (1st Supp.), s. 3

Marginal note:Amount of tax

  •  (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.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 11
  • R.S., 1985, c. 15 (1st Supp.), s. 4, c. 7 (2nd Supp.), s. 4, c. 42 (2nd Supp.), s. 1, c. 12 (4th Supp.), s. 2
  • 1990, c. 45, s. 2
  • 1994, c. 29, s. 2
  • 1998, c. 21, s. 84
 
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