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

226.01 [Repealed, 2007, c. 18, s. 29]

226.1 [Repealed, 2007, c. 18, s. 30]

Marginal note:Election for streamlined accounting

• 227 (1) A registrant (other than a charity that is not designated under section 178.7) who is a prescribed registrant or a member of a prescribed class of registrants may elect to determine the net tax of the registrant for a reporting period during which the election is in effect by a prescribed method.

• Marginal note:Form and contents of election

  (2) An election made under subsection (1) by a registrant shall

  • (a) be filed in prescribed manner with the Minister in prescribed form containing prescribed information;

  • (b) set out the day the election is to become effective, which day shall be the first day of a reporting period of the registrant; and

  • (c) be filed

    • (i) where the first reporting period of the registrant in which the election is in effect is a fiscal year of the registrant, on or before the first day of the second fiscal quarter of that year or such later day as the Minister may determine on application of the registrant, and

    • (ii) in any other case, on or before the day on or before which the return of the registrant is required to be filed under this Division for the first reporting period of the registrant in which the election is in effect or on such later day as the Minister may determine on application of the registrant.

• Marginal note:Cessation

  (3) An election made under this section by a registrant ceases to have effect on the earlier of

  • (a) the first day of the reporting period of the registrant in which the registrant ceases to be a prescribed registrant or a member of a prescribed class of registrants, and

  • (b) the day on which a revocation of the election becomes effective.

• Marginal note:Revocation

  (4) An election made under subsection (1) by a registrant may be revoked by the registrant.

• Marginal note:Effective date and notice of revocation

  (4.1) A revocation of an election made under subsection (1) by a registrant

  • (a) shall become effective on the first day of a reporting period of the registrant but not earlier than one year after the election became effective; and

  • (b) is not a valid revocation unless a notice of revocation of the election in prescribed form containing prescribed information is filed in prescribed manner with the Minister on or before the day on or before which the return under this Division is required to be filed for the last reporting period of the registrant in which the election is effective.

• Marginal note:Exception

  (4.2) Where a registrant makes an election under subsection (1) to determine the net tax of the registrant in accordance with a prescribed Part of the Streamlined Accounting (GST/HST) Regulations,

  • (a) paragraph (2)(a) does not apply to the election;

  • (b) notwithstanding subsection (2), the election shall be made before a return under this Division is filed for the reporting period of the registrant in which the election becomes effective; and

  • (c) paragraph (4.1)(b) does not apply to a revocation of the election.

• Marginal note:Restriction on input tax credits

  (5) Where an election made under this section by a registrant ceases to have effect, an input tax credit (other than a prescribed input tax credit) of the registrant for a reporting period of the registrant during which the election was in effect shall not be claimed by the registrant in a reporting period that begins after the election ceased to have effect.

• Marginal note:Restriction on input tax credits

  (6) Sections 231 to 236 do not apply for the purpose of determining the net tax of a registrant for a reporting period during which an election made by the registrant under subsection (1) is in effect, except as otherwise provided in the Streamlined Accounting (GST/HST) Regulations.

Marginal note:Calculation of net tax

• 228 (1) Every person who is required to file a return under this Division shall, in the return, calculate the net tax of the person for the reporting period for which the return is required to be filed, except where subsection (2.1) or (2.3) applies in respect of the reporting period.

• Marginal note:Remittance

  (2) Where the net tax for a reporting period of a person is a positive amount, the person shall, except where subsection (2.1) or (2.3) applies in respect of the reporting period, remit that amount to the Receiver General,

  • (a) where the person is an individual to whom subparagraph 238(1)(a)(ii) applies in respect of the reporting period, on or before April 30 of the year following the end of the reporting period; and

  • (b) in any other case, on or before the day on or before which the return for that period is required to be filed.

• Marginal note:Selected listed financial institutions — interim return and remittance

  (2.1) Where a person who is a selected listed financial institution is required to file an interim return for a reporting period under subsection 238(2.1),

  • (a) subject to subsection (2.2), the person shall calculate in the interim return the amount (in this Part referred to as the “interim net tax”) that would be the net tax of the person for the reporting period if the description of C in the formula in subsection 225.2(2) were read as “is the lesser of the financial institution’s percentage for the participating province for the taxation year and the financial institution’s percentage for the participating province for the immediately preceding taxation year, each determined in accordance with the prescribed rules that apply to financial institutions of that class”; and

  • (b) where the interim net tax for the reporting period is a positive amount, the person shall pay that amount, on account of the person’s net tax for the reporting period that the person is required to remit under paragraph (2.3)(b), to the Receiver General on or before the day on or before which that interim return is required to be filed.

• Marginal note:Selected listed financial institutions — interim returns in the first fiscal year

  (2.2) For the purposes of paragraph (2.1)(a), where a person becomes a selected listed financial institution during a reporting period of the person that ends in a fiscal year of the person that begins on or after April 1, 1997, the interim net tax for each reporting period in the fiscal year is the amount that would be the net tax of the person for the reporting period if the description of C in the formula in subsection 225.2(2) read “is the financial institution’s percentage for the participating province for the immediately preceding reporting period, determined in accordance with the prescribed rules that apply to financial institutions of that class”.

• Marginal note:Selected listed financial institutions — final return

  (2.3) Where a person who is a selected listed financial institution is required to file a final return under subsection 238(2.1) for a reporting period,

  • (a) the person shall calculate in the final return the net tax of the person for the reporting period;

  • (b) where the net tax of the person for the reporting period is a positive amount, the person shall remit that amount to the Receiver General on or before the day on or before which the final return for the reporting period is required to be filed;

  • (c) the person shall report in the final return the positive amount, if any, that the person paid on account of the person’s net tax for the period under subsection (2.1) or the negative amount, if any, that the person claimed in the interim return for the period as an interim net tax refund for the period under subsection (2.4); and

  • (d) where the person claimed an interim net tax refund for the reporting period under subsection (2.4),

    • (i) if the interim net tax refund exceeds the amount that would be the net tax refund for the period payable to the person under subsection (3) if the person had not claimed that interim net tax refund, the person shall pay an amount equal to the excess to the Receiver General on or before the day on or before which the final return for the reporting period is required to be filed, and

    • (ii) if the person’s net tax for the period is a positive amount, the person shall pay an amount equal to the interim net tax refund to the Receiver General on or before the day on or before which the final return for the reporting period is required to be filed.

• Marginal note:Interim refund for selected listed financial institutions

  (2.4) Where the amount determined in accordance with paragraph (2.1)(a) for a reporting period of a person who is a selected listed financial institution is a negative amount, the person may claim that amount, in the interim return for that reporting period filed before the day on or before which the final return for the period is required to be filed, as an interim net tax refund for the period payable to the person by the Minister.

• Marginal note:Net tax refund

  (3) Where the net tax for a reporting period of a person is a negative amount,

  • (a) where the person is a selected listed financial institution that is required to file a final return for the reporting period under subsection 238(2.1), the person may claim, in the final return for that reporting period as a net tax refund for the period payable to the person by the Minister, the amount, if any, determined by the formula

    A - B

    where

    A

    is the absolute value of that net tax, and

    B

    is the amount, if any, that the person claimed as an interim net tax refund for the period under subsection (2.4); and

  • (b) in any other case, the person may claim in the return for that reporting period the amount of that net tax as a net tax refund for the period, payable to the person by the Minister.

• Marginal note:Real property and emission allowance — self-assessment

  (4) If tax under Division II is payable by a person in respect of a supply of property that is real property or an emission allowance and the supplier is not required to collect the tax and is not deemed to have collected the tax,

  • (a) where the person is a registrant and acquired the property for use or supply primarily in the course of commercial activities of the person, the person shall, on or before the day on or before which the person’s return for the reporting period in which the tax became payable is required to be filed, pay the tax to the Receiver General and report the tax in that return; and

  • (b) in any other case, the person shall, on or before the last day of the month following the calendar month in which the tax became payable, pay the tax to the Receiver General and file with the Minister in prescribed manner a return in respect of the tax in prescribed form containing prescribed information.

• (5) [Repealed, 1993, c. 27, s. 91]

• Marginal note:Set-off of refunds or rebates

  (6) Where at any time a person files a particular return under this Part in which the person reports an amount (in this subsection referred to as the “remittance amount”) that is required to be remitted under subsection (2) or (2.3) or paid under subsection (2.1) or (4) or Division IV or IV.1 by the person and the person claims a refund or rebate payable to the person at that time under this Part (other than Division III) in the particular return or in another return, or in an application, filed under this Part with the particular return, the person is deemed to have remitted at that time on account of the person’s remittance amount, and the Minister is deemed to have paid at that time on account of the refund or rebate, an amount equal to the lesser of the remittance amount and the amount of the refund or rebate.

• Marginal note:Refunds and rebates of another person

  (7) A person may, in prescribed circumstances and subject to prescribed conditions and rules, reduce or offset the tax that is required to be remitted under subsection (2) or (2.3) or paid under subsection (2.1) or (4) or Division IV or IV.1 by that person at any time by the amount of any refund or rebate to which another person may at that time be entitled under this Part.

Marginal note:Payment of net tax refund

• 229 (1) Where a net tax refund payable to a person is claimed in a return filed under this Division by the person, the Minister shall pay the refund to the person with all due dispatch after the return is filed.

• Marginal note:Restriction

  (2) A net tax refund for a reporting period of a person shall not be paid to the person under subsection (1) at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act, the Select Luxury Items Tax Act, the Digital Services Tax Act and the Global Minimum Tax Act have been filed with the Minister.

• Marginal note:Restriction

  (2.1) The Minister is not required to pay a net tax refund under subsection (1) to a person that is a registrant unless the Minister is satisfied that all information, that is contact information or that is information relating to the identification and business activities of the person, to be given by the person on the application for registration made by the person under section 240 has been provided and is accurate.

• Marginal note:Interest on refund

  (3) If a net tax refund for a reporting period of a person is paid to the person under subsection (1), interest at the prescribed rate shall be paid to the person on the net tax refund for the period beginning on the day that is 30 days after the later of the day the return in which the refund is claimed is filed with the Minister and the day following the last day of the reporting period and ending on the day the refund is paid.

• (4) [Repealed, 2006, c. 4, s. 139]

Marginal note:Refund of payment

• 230 (1) Where a person has paid instalments or interim net tax for a reporting period of the person, or any other amounts on account of the person’s net tax for the period, that exceed the amount of the net tax remittable by the person for the period and the person claims a refund of the excess in a return (other than an interim return) for the period filed under this Division by the person, the Minister shall refund the excess to the person with all due dispatch after the return is filed.

• Marginal note:Restriction

  (2) An amount paid on account of net tax for a reporting period of a person shall not be refunded to the person under subsection (1) at any time unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Income Tax Act, the Air Travellers Security Charge Act, the Excise Act, 2001, the Underused Housing Tax Act, the Select Luxury Items Tax Act, the Digital Services Tax Act and the Global Minimum Tax Act have been filed with the Minister.

• Marginal note:Interest on refund

  (3) If a refund of an amount that was paid on account of net tax for a reporting period of a person is paid to the person under subsection (1), interest at the prescribed rate shall be paid to the person on the refund for the period beginning on the day that is 30 days after the later of the day the return for the reporting period is filed with the Minister and the day following the last day of the reporting period and ending on the day the refund is paid.

• (4) [Repealed, 2006, c. 4, s. 140]