Excise Tax Act

Marginal note:Penalty and interest

• 280 (1) Subject to this section and section 281, where a person fails to remit or pay an amount to the Receiver General when required under this Part, the person shall pay on the amount not remitted or paid

  • (a) a penalty of 6% per year, and

  • (b) interest at the prescribed rate,

  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:Penalty and interest on net tax of selected listed financial institutions

  (1.1) Notwithstanding subsection (1), where a selected listed financial institution that is required to pay an amount under paragraph 228(2.1)(a) 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 subsection 228(2.1), the financial institution shall pay, on the amount not paid,

  • (a) a penalty of 6% per year, and

  • (b) interest at the prescribed rate,

  computed for the period beginning on the first day following that time and ending on the earlier of

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

  • (d) 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:Penalty and interest on instalments

  (2) Notwithstanding subsection (1), where a person fails to pay all of an instalment payable by the person under subsection 237(1) within the time specified in that subsection, that person shall pay, on the amount of the instalment not paid,

  • (a) a penalty of 6% per year, and

  • (b) interest at the prescribed rate,

  computed for the period beginning on the first day following that time and ending on the earlier of

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

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

• Marginal note:Idem

  (3) Notwithstanding subsection (2), the total interest and penalties 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 total of the interest and penalties 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 plus 6% per year, calculated on an instalment of tax paid in 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 penalty and interest

  (4) Where a person is required to pay a penalty or 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 penalty or interest, as the case may be, 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 penalty or interest, as the case may be, shall be 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 penalty and interest

  (4.01) Where a selected listed financial institution is required to pay a penalty or interest under subsection (1.1) in respect of an amount required under paragraph 228(2.1)(a) to be paid within the time specified in that paragraph and the penalty or interest, as the case may be, 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 penalty or interest, as the case may be, 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 penalty and interest

  (4.1) Where penalty computed at a rate per year or 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 penalty or interest, as the case may be, so compounded shall, for the purpose of this section, be deemed to be required to be paid by the person to the Receiver General at the end of the particular day and, where the person has not paid the penalty or interest, as the case may be, so computed by the end of the next following day, the penalty or interest, as the case may be, shall be added to the amount at the end of the particular day.

• Marginal note:No penalty where security

  (5) Where on a particular day the Minister holds security under section 314 for the payment or remittance of tax or any other amount under this Part and any tax, net tax, instalment or amount under section 264 payable by the person under this Part is not paid or remitted on or before the day on or before which it is required to be paid or remitted under this Part, the penalty under this section shall apply on the particular day only to the extent that the total of the tax, instalments, penalty, interest and other amounts outstanding on the particular day exceeds the value of the security at the time it was accepted by the Minister.

• Marginal note:Minimum

  (6) Where at any time a person pays or remits all tax, net tax, instalments and amounts under section 264 payable by the person under this Part for a reporting period of the person and, immediately before that time, the total of all penalties and interest payable by the person under this section for that period is less than $25, the Minister may write off and cancel the total of the penalties and interest.

• Marginal note:Payment before specified date

  (7) Where 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 penalty and interest for the period beginning on the first day following the date of the demand and ending on the day of payment.