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

Full Document:  

Act current to 2022-05-02 and last amended on 2021-07-01. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION VIIIAdministration and Enforcement (continued)

SUBDIVISION AAdministration (continued)

Marginal note:Regulations

  •  (1) The Governor in Council may make regulations

    • (a) prescribing anything that, by this Part, is to be prescribed or is to be determined or regulated by regulation;

    • (b) requiring any class of persons to make returns respecting any class of information required in connection with the administration of this Part;

    • (c) requiring any person to provide any information, including the person’s name, address and registration number, to any class of persons required to make a return containing that information;

    • (d) requiring any person to provide the Minister with the person’s Social Insurance Number;

    • (e) requiring a person who is, by a regulation made under paragraph (b), required to make a return to supply a copy of the return or of a prescribed part thereof to the person to whom the return or part relates;

    • (f) providing for the retention by way of deduction or set-off of the amount of a person’s indebtedness under this Part out of any amount or amounts that may be or become payable by Her Majesty in right of Canada to the person in respect of salary or wages; and

    • (g) generally to carry out the purposes and provisions of this Part.

  • Marginal note:Effect

    (2) A regulation made under this Part shall have effect from the date it is published in the Canada Gazette or at such time thereafter as may be specified in the regulation, unless the regulation 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 Part or the regulations made under this Part;

    • (c) is consequential on an amendment to this Part that is applicable before the date 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, except where paragraph (a), (b) or (c) applies, have effect before the date the announcement was made.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 125(F)

Definition of new harmonized value-added tax system

  •  (1) In this section, new harmonized value-added tax system means the system under this Part and Schedules V to X providing for the payment, collection and remittance of tax imposed under any of subsection 165(2) and sections 212.1, 218.1 and 220.05 to 220.08 and of amounts paid as or on account of that tax and the provisions of this Part relating to tax under those provisions or to input tax credits, rebates or refunds in respect of any such tax, or any such amounts, paid or deemed to be paid.

  • Marginal note:New harmonized value-added tax system regulations — transition

    (2) The Governor in Council may make regulations, in relation to the transition by a province to the new harmonized value-added tax system,

    • (a) prescribing rules in respect of whether, how and when that system applies and rules in respect of other aspects relating to the application of that system in relation to the province, including

      • (i) rules that apply for the purpose of determining the amount of instalment payments under section 237,

      • (ii) circumstances in which an election under this Part may be made or revoked at an earlier time than would otherwise be permitted under this Part, and

      • (iii) rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when tax or consideration became due or was paid or collected, when property was delivered or made available, when a service was performed and when tax is required to be reported and accounted for;

    • (b) respecting information that must be included by a specified person in a written agreement or other document in respect of a specified supply of real property and prescribing tax consequences in respect of such a supply, and penalties, for failing to do so or for providing incorrect information;

    • (c) deeming, in specified circumstances, a specified person to have collected a specified amount of tax, or to have paid a specified amount of tax, for specified purposes, as a consequence of making a supply by way of sale in respect of a residential complex;

    • (d) prescribing rules under which a person of a specified class that is the recipient of a specified supply in respect of real property is required to report and account for tax that is payable under subsection 165(2) in respect of that supply;

    • (e) prescribing compliance measures, including anti-avoidance rules; and

    • (f) generally to effect the transition to, and implementation of, that system in relation to the province.

  • Marginal note:New harmonized value-added tax system regulations — provincial tax policy flexibility

    (3) The Governor in Council may make regulations

    • (a) prescribing rules in respect of whether, how and when a change in the tax rate for a participating province applies and rules in respect of a change to another parameter affecting the application of the new harmonized value-added tax system in relation to a participating province (in this subsection any such change in the tax rate or to another parameter is referred to as the “provincial tax policy flexibility”), including

      • (i) rules that apply for the purpose of determining the amount of instalment payments under section 237,

      • (ii) circumstances in which an election under this Part may be made or revoked at an earlier time than would otherwise be permitted under this Part, and

      • (iii) rules deeming, in specified circumstances and for specified purposes, the status of anything to be different than what it would otherwise be, including when tax or consideration became due or was paid or collected, when property was delivered or made available, when a service was performed and when tax is required to be reported and accounted for;

    • (b) if an amount is to be determined in prescribed manner in relation to the new harmonized value-added tax system, specifying the circumstances or conditions under which the manner applies;

    • (c) providing for rebates, refunds, adjustments or credits relating to the provincial tax policy flexibility;

    • (d) specifying circumstances and any terms or conditions that must be met for the payment of rebates in respect of the provincial tax policy flexibility;

    • (e) prescribing amounts and rates to be used to determine any rebate, refund, adjustment or credit that relates to, or is affected by, the new harmonized value-added tax system, excluding amounts that would otherwise be included in determining any such rebate, refund, adjustment or credit, and specifying circumstances under which any such rebate, refund, adjustment or credit shall not be paid or made;

    • (f) amending the definition basic tax content in subsection 123(1) to take into account the provincial tax policy flexibility or the addition of a province to the new harmonized value-added tax system; and

    • (g) prescribing compliance measures, including anti-avoidance rules, in respect of the provincial tax policy flexibility.

  • Marginal note:New harmonized value-added tax system regulations — general

    (4) For the purpose of facilitating the implementation, application, administration and enforcement of the new harmonized value-added tax system or the transition by a province to the new harmonized value-added tax system, the Governor in Council may make regulations

    • (a) adapting any provision of this Part, of Schedules V to X or of the regulations made under this Part to the new harmonized value-added tax system or modifying any provision of this Part, Schedules V to X or those regulations to adapt it to the new harmonized value-added tax system;

    • (b) defining, for the purposes of this Part, Schedules V to X or the regulations made under this Part, or any provision of this Part, Schedules V to X or those regulations, in its application to the new harmonized value-added tax system, words or expressions used in this Part, Schedules V to X or those regulations including words or expressions defined in a provision of this Part, Schedules V to X or those regulations; and

    • (c) providing that a provision of this Part, of Schedules V to X or of the regulations made under this Part, or a part of such a provision, does not apply to the new harmonized value-added tax system.

  • Marginal note:Conflict

    (5) If a regulation made under this Part in respect of the new harmonized value-added tax system states that it applies despite any provision of this Part, in the event of a conflict between the regulation and this Part, the regulation prevails to the extent of the conflict.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1997, c. 10, s. 234
  • 2009, c. 32, s. 37

SUBDIVISION BReturns, Penalties and Interest

Marginal note:Place of filing

  •  (1) Every person who is required under this Part to file a return shall file the return with the Minister in the prescribed manner.

  • Marginal note:Place of payment

    (2) Every person who is required under this Part to pay or remit an amount shall, except where the amount is required under section 221 to be collected by another person, pay or remit the amount to the Receiver General.

  • Marginal note:Idem

    (3) Every person who is required under this Part to pay or remit an amount to the Receiver General shall, where the amount is $50,000 or more, make the payment or remittance to the account of the Receiver General at

    • (a) a bank, other than an authorized foreign bank that is subject to the restrictions and requirements referred to in subsection 524(2) of the Bank Act;

    • (b) a credit union;

    • (c) a corporation authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; or

    • (d) a corporation authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real estate or investing in mortgages or hypothecary claims on real estate.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1994, c. 9, s. 20
  • 1999, c. 28, s. 160
  • 2001, c. 17, s. 237

Meaning of electronic filing

  •  (1) For the purposes of this section, electronic filing means using electronic media in a manner specified in writing by the Minister.

  • Marginal note:Filing of return by electronic filing

    (2) A person who is required to file with the Minister a return under this Part, and who meets the criteria specified in writing by the Minister for the purposes of this section, may file the return by way of electronic filing.

  • Marginal note:Mandatory filing of return by electronic transmission

    (2.1) If a person is, in respect of a reporting period of the person, a prescribed person or a person of a prescribed class, the person shall file its return for the reporting period by way of electronic filing in the manner specified by the Minister for the person.

  • Marginal note:Deemed filing

    (3) For the purposes of this Part, where a person files a return by way of electronic filing, it is deemed to be a return in prescribed form filed with the Minister on the day the Minister acknowledges acceptance of it.

  • (4) [Repealed, 2001, c. 15, s. 20]

  • (5) [Renumbered as (3), 2001, c. 15, s. 20]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1997, c. 10, s. 77
  • 2001, c. 15, s. 20
  • 2009, c. 32, s. 38

Marginal note:Execution of documents

 A return (other than a return filed by way of electronic filing under section 278.1), certificate or other document made by a person (other than an individual) under this Part or under a regulation made under this Part shall be signed on behalf of the person by an individual duly authorized to do so by the person or the governing body of the person and the following persons are deemed to be so duly authorized:

  • (a) if the person is a corporation or an association or organization that has duly elected or appointed officers, the president, vice-president, secretary, treasurer or other equivalent officers of the person; and

  • (b) if the person is the estate of a deceased individual, the personal representative of the estate.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1997, c. 10, s. 77
  • 2000, c. 30, s. 82

Marginal note:Interest

  •  (1) Subject to this section and section 281, if a person fails to remit or pay an amount to the Receiver General when required under this Part, the person shall pay interest at the prescribed rate on the amount, computed for the period beginning on the first day following the day on or before which the amount was required to be remitted or paid and ending on the day the amount is remitted or paid.

  • Marginal note:Interest on net tax of selected listed financial institutions

    (1.1) Despite subsection (1), if a selected listed financial institution that is required to pay an amount under subsection 228(2.1) on account of the financial institution’s net tax for a reporting period fails to pay all of that amount within the time specified in that subsection, the financial institution shall pay, on the amount not paid, interest at the prescribed rate, computed for the period beginning on the first day following that time and ending on the earlier of

    • (a) the day the total of the amount and interest is paid, and

    • (b) the day on or before which the financial institution is required under subsection 238(2.1) to file a final return for that reporting period.

  • Marginal note:Interest on instalments

    (2) Despite subsection (1), if a person fails to pay all of an instalment payable by the person under subsection 237(1) within the time specified in that subsection, the person shall pay, on the amount of the instalment not paid, interest at the prescribed rate, computed for the period beginning on the first day following that time and ending on the earlier of

    • (a) the day the total of the amount and interest is paid, and

    • (b) the day on or before which the tax on account of which the instalment was payable is required to be remitted.

  • Marginal note:Interest on instalments

    (3) Despite subsection (2), the total interest payable by a person under that subsection for the period beginning on the first day of a reporting period for which an instalment on account of tax is payable and ending on the day on or before which the tax on account of which the instalment was payable is required to be remitted shall not exceed the amount, if any, by which

    • (a) the amount of interest that would be payable under subsection (2) for the period by the person if no amount were paid by the person on account of instalments payable in the period

    exceeds

    • (b) the total of all amounts each of which is an amount of interest at the prescribed rate that applies in the case of interest to be paid to the Receiver General, calculated on an instalment of tax paid for the period beginning on the day of that payment and ending on the day on or before which the tax on account of which the instalment was payable is required to be remitted.

  • Marginal note:Unpaid interest on instalments

    (4) If a person is required to pay interest under subsection (2) in respect of an instalment required under subsection 237(1) to be paid within the time specified in that subsection and the interest has not been paid on or before the day on or before which the tax on account of which the instalment was payable is required to be remitted, the interest is deemed, for the purposes of this Part, to be an amount required to be remitted by the person on or before that day that has not been remitted on or before that day.

  • Marginal note:Unpaid interest on net tax of selected listed financial institutions

    (4.01) If a selected listed financial institution is required to pay interest under subsection (1.1) in respect of an amount required under subsection 228(2.1) to be paid within the time specified in that paragraph and the interest has not been paid on or before the day on or before which the financial institution is required under subsection 238(2.1) to file a final return for that reporting period, the interest is deemed, for the purposes of this Part, to be an amount required to be remitted by the financial institution on or before that day that has not been remitted on or before that day.

  • Marginal note:Payment of interest

    (4.1) If interest is compounded on a partic­ular day on an amount that a person has failed to pay or remit when required under this Part, the interest so compounded is deemed, for the purposes of this section, 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 next following day, the interest shall be added to the amount at the end of the particular day.

  • (5) and (6) [Repealed, 2006, c. 4, s. 146]

  • Marginal note:Payment before specified date

    (7) If the Minister has served a demand that a person pay or remit on or before a specified date all tax, net tax, instalments, amounts under section 264, penalties and interest payable by the person under this Part on the date of the demand, and the person pays the total on or before the specified date, the Minister may waive interest for the period beginning on the first day following the date of the demand and ending on the day of payment.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 126
  • 1994, c. 9, s. 21(F)
  • 1997, c. 10, s. 235
  • 2000, c. 30, s. 83(F)
  • 2006, c. 4, s. 146
 
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