Excise Tax Act

Marginal note:Assessments

• 296 (1) The Minister may assess

  • (a) the net tax of a person under Division V for a reporting period of the person,

  • (b) any tax payable by a person under Division II, IV or IV.1,

  • (c) any penalty or interest payable by a person under this Part,

  • (d) any amount payable by a person under any of paragraphs 228(2.1)(b) and (2.3)(d), section 230.1 and paragraphs 232.01(5)(c) and 232.02(4)(c), and

  • (e) any amount which a person is liable to pay or remit under subsection 177(1.1) or Subdivision A or B.1 of Division VII,

  and may reassess or make an additional assessment of tax, net tax, penalty, interest or an amount referred to in paragraph (d) or (e).

• Marginal note:Allowance of unclaimed credit

  (2) Where, in assessing the net tax of a person for a particular reporting period of the person, the Minister determines that

  • (a) an amount (in this subsection referred to as the “allowable credit”) would have been allowed as an input tax credit for the particular reporting period or as a deduction in determining the net tax for the particular reporting period if it had been claimed in a return under Division V for the particular reporting period filed on the day that is the day on or before which the return for the particular reporting period was required to be filed and the requirements, if any, of subsection 169(4) or 234(1) respecting documentation that apply in respect of the allowable credit had been met,

  • (b) the allowable credit was not claimed by the person in a return filed before the day notice of the assessment is sent to the person or was so claimed but was disallowed by the Minister, and

  • (c) the allowable credit would be allowed, as an input tax credit or deduction in determining the net tax for a reporting period of the person, if it were claimed in a return under Division V filed on the day notice of the assessment is sent to the person or would be disallowed if it were claimed in that return only because the period for claiming the allowable credit expired before that day,

  the Minister shall take the allowable credit into account in assessing the net tax for the particular reporting period as if the person had claimed the allowable credit in a return filed for the period.

• Marginal note:Allowance of unclaimed rebate

  (2.1) Where, in assessing the net tax of a person for a reporting period of the person or an amount (in this subsection referred to as the “overdue amount”) that became payable by a person under this Part, the Minister determines that

  • (a) an amount (in this subsection referred to as the “allowable rebate”) would have been payable to the person as a rebate if it had been claimed in an application under this Part filed on the particular day that is

    • (i) if the assessment is in respect of net tax for the reporting period, the day on or before which the return under Division V for the period was required to be filed, or

    • (ii) if the assessment is in respect of an overdue amount, the day on which the overdue amount became payable by the person,

    and, where the rebate is in respect of an amount that is being assessed, if the person had paid or remitted that amount,

  • (b) the allowable rebate was not claimed by the person in an application filed before the day notice of the assessment is sent to the person, and

  • (c) the allowable rebate would be payable to the person if it were claimed in an application under this Part filed on the day notice of the assessment is sent to the person or would be disallowed if it were claimed in that application only because the period for claiming the allowable rebate expired before that day,

  the Minister shall apply all or part of the allowable rebate against that net tax or overdue amount as if the person had, on the particular day, paid or remitted the amount so applied on account of that net tax or overdue amount

• Marginal note:Application or payment of credit

  (3) If, in assessing the net tax of a person for a particular reporting period of the person, the Minister determines that there is an overpayment of net tax for the particular period, except where the assessment is made in the circumstances described in paragraph 298(4)(a) or (b) after the time otherwise limited for the assessment by paragraph 298(1)(a), the Minister shall

  • (a) apply

    • (i) all or part of the overpayment

    against

    • (ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on or before the particular day that is the day on or before which the person was required to file a return under this Part for the particular period, the person defaulted in paying or remitting under this Part and that remains unpaid or unremitted on the day notice of the assessment is sent to the person,

    as if the person had, on the particular day, paid or remitted the amount so applied on account of the outstanding amount;

  • (b) apply

    • (i) all or part of the overpayment that was not applied under paragraph (a) together with interest at the prescribed rate on all or that part of the overpayment, computed for the period beginning on the day that is 30 days after the latest of

      • (A) the particular day,

      • (B) the day on which the return for the particular reporting period was filed, and

      • (C) in the case of an overpayment that is attributable to a payment or remittance made on a day subsequent to the days referred to in clauses (A) and (B), that subsequent day,

      and ending on the day on which the person defaulted in paying or remitting the outstanding amount referred to in subparagraph (ii)

    against

    • (ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on a day (in this paragraph referred to as the “later day”) after the particular day, the person defaulted in paying or remitting under this Part and that remains unpaid or unremitted on the day notice of the assessment is sent to the person,

    as if the person had, on the later day, paid the amount and interest so applied on account of the outstanding amount; and

  • (c) refund to the person that part of the overpayment that was not applied under paragraphs (a) and (b) together with interest at the prescribed rate on that part of the overpayment, computed for the period beginning on the day that is 30 days after the latest of

    • (i) the particular day,

    • (ii) the day on which the return for the particular reporting period was filed, and

    • (iii) in the case of an overpayment that is attributable to a payment or remittance made on a day subsequent to the days referred to in subparagraphs (i) and (ii), that subsequent day,

    and ending on the day the refund is paid to the person.

• Marginal note:Application or payment of rebate

  (3.1) If, in assessing the net tax of a person for a particular reporting period of the person or an amount (in this subsection referred to as the “overdue amount”) that became payable by a person under this Part, all or part of an allowable rebate referred to in subsection (2.1) is not applied under that subsection against that net tax or overdue amount, except where the assessment is made in the circumstances described in paragraph 298(4)(a) or (b) after the time otherwise limited for the assessment by paragraph 298(1)(a), the Minister shall

  • (a) apply

    • (i) all or part of the allowable rebate that was not applied under subsection (2.1)

    against

    • (ii) any other amount (in this paragraph referred to as the “outstanding amount”) that, on or before the particular day that is

      • (A) if the assessment is in respect of net tax for the particular reporting period, the day on or before which the return under Division V for the particular period was required to be filed, or

      • (B) if the assessment is in respect of an overdue amount, the day on which the overdue amount became payable by the person,

      the person defaulted in paying or remitting under this Part and that remains unpaid or unremitted on the day notice of the assessment is sent to the person,

    as if the person had, on the particular day, paid or remitted the amount so applied on account of the outstanding amount;

  • (b) apply

    • (i) all or part of the allowable rebate that was not applied under subsection (2.1) or paragraph (a) together with interest at the prescribed rate on all or that part of the allowable rebate, computed for the period beginning on the day that is 30 days after the later of

      • (A) the particular day, and

      • (B) where the assessment is in respect of net tax for the particular reporting period, the day on which the return for the particular reporting period was filed,

      and ending on the day on which the person defaulted in paying or remitting the outstanding amount referred to in subparagraph (ii)

    against

    • (ii) any amount (in this paragraph referred to as the “outstanding amount”) that, on a day (in this paragraph referred to as the “later day”) after the particular day, the person defaulted in paying or remitting under this Part and that remains unpaid or unremitted on the day notice of the assessment is sent to the person,

    as if the person had, on the later day, paid the amount and interest so applied on account of the outstanding amount; and

  • (c) refund to the person that part of the allowable rebate that was not applied under any of subsection (2.1) and paragraphs (a) and (b) together with interest at the prescribed rate on that part of the allowable rebate, computed for the period beginning on the day that is 30 days after the later of

    • (i) the particular day, and

    • (ii) where the assessment is in respect of net tax for the particular reporting period, the day on which the return for the particular period was filed,

    and ending on the day the refund is paid to the person.

• Marginal note:Limitation on refunding overpayments

  (4) An overpayment of net tax for a particular reporting period of a person and interest thereon under paragraphs (3)(b) and (c)

  • (a) shall not be applied under paragraph (3)(b) against an amount (in this paragraph referred to as the “outstanding amount”) that is payable or remittable by the person unless the input tax credit or deduction to which the overpayment is attributable would have been allowed as an input tax credit or deduction, as the case may be, in determining the net tax for another reporting period of the person if the person had claimed the input tax credit or deduction in a return under Division V filed on the day the person defaulted in paying or remitting the outstanding amount and the person were not a specified person for the purposes of subsection 225(4); and

  • (b) shall not be refunded under paragraph (3)(c) unless the input tax credit or deduction would have been allowed as an input tax credit or deduction, as the case may be, in determining the net tax for another reporting period of the person if the person had claimed the input tax credit or deduction in a return under Division V filed on the day notice of the assessment is sent to the person.

• Marginal note:Limitation on refunding allowable rebates

  (4.1) An allowable rebate referred to in subsection (2.1) or a part thereof that was not applied under that subsection and interest thereon under paragraphs (3.1)(b) and (c)

  • (a) shall not be applied under paragraph (3.1)(b) against an amount (in this paragraph referred to as the “outstanding amount”) that is payable or remittable by a person unless the allowable rebate would have been payable to the person as a rebate if the person had claimed it in an application under this Part filed on the day the person defaulted in paying or remitting the outstanding amount and, in the case of a rebate under section 261, if subsection 261(3) allowed the person to claim the rebate within four years after the person paid or remitted the amount in respect of which the rebate would be so payable; and

  • (b) shall not be refunded under paragraph (3.1)(c) unless the allowable rebate would have been payable to the person as a rebate if the person had claimed it in an application under this Part filed on the day notice of the assessment is sent to the person, and, where the rebate is in respect of an amount that is being assessed, if the person had paid or remitted that amount.

• Marginal note:Deemed claim or application

  (5) Where, in assessing the net tax of a person or tax or any other amount payable by a person, the Minister takes an amount into account under subsection (2) or applies or refunds an amount under subsection (2.1), (3) or (3.1),

  • (a) the person is deemed to have claimed the amount in a return or application filed under this Part; and

  • (b) to the extent that an amount is applied against any tax or other amount payable or remittable by the person under this Part, the Minister is deemed to have refunded or paid the amount to the person and the person is deemed to have paid or remitted the tax or other amount against which it was applied.

• Marginal note:Refund on reassessment

  (6) Where a person has paid an amount on account of tax, net tax, penalty, interest or other amount assessed under this section and the amount paid exceeds the amount determined on reassessment to have been payable or remittable by the person, the Minister shall refund to the person the amount of the excess, together with interest thereon at the prescribed rate for the period beginning on the day the amount was paid by the person and ending on the day the refund is paid.

• Marginal note:Interest on cancelled amounts

  (6.1) Despite subsection (6), if a person has paid an amount of interest or penalty and the Minister cancels that amount under section 281.1, the Minister shall refund the amount to the person, together with interest on the amount at the prescribed rate for the period beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that section and ending on the day on which the refund is paid.

• Marginal note:Restriction on refunds

  (7) An amount under this section shall not be refunded to a person 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 Air Travellers Security Charge Act, the Excise Act, 2001 and the Income Tax Act have been filed with the Minister.

• Meaning of overpayment of net tax

  (8) In this section, overpayment of net tax of a person for a reporting period of the person means the amount, if any, by which the total of

  • (a) all amounts remitted by the person on account of net tax for the period, and

  • (b) where the net tax for the period is negative, the net tax refund for the period,

  exceeds the total of

  • (c) where the net tax for the period is positive, the net tax for the period, and

  • (d) all amounts paid to the person as a net tax refund for the period.