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Greenhouse Gas Pollution Pricing Act (S.C. 2018, c. 12, s. 186)

Act current to 2019-06-20 and last amended on 2019-04-01. Previous Versions

PART 1Fuel Charge (continued)

DIVISION 5Miscellaneous (continued)

SUBDIVISION DAnti-avoidance

Marginal note:Definitions

  •  (1) The following definitions apply in this section.

    benefit

    benefit means a reduction, an avoidance or a deferral of a charge or other amount payable by a person under this Part or an increase in a rebate or other amount payable to a person under this Part. (avantage)

    charge-related consequences

    charge-related consequences to a person means the amount of charge, net charge, rebate, net charge rebate, or other amount payable by, or payable to, the person under this Part, or any other amount that is relevant to the purposes of computing that amount. (attribut lié à la redevance)

    transaction

    transaction includes an arrangement or event. (opération)

  • Marginal note:General anti-avoidance provision

    (2) If a transaction is an avoidance transaction, the charge-related consequences to a person must be determined as is reasonable in the circumstances in order to deny a benefit that, but for this section, would result directly or indirectly from that transaction or from a series of transactions that include that transaction.

  • Marginal note:Avoidance transaction

    (3) An avoidance transaction means any transaction

    • (a) that, but for this section, would result directly or indirectly in a benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the benefit; or

    • (b) that is part of a series of transactions, which series, but for this section, would result directly or indirectly in a benefit, unless the transaction may reasonably be considered to have been undertaken or arranged primarily for bona fide purposes other than to obtain the benefit.

  • Marginal note:Provision not applicable

    (4) For greater certainty, subsection (2) does not apply in respect of a transaction if it may reasonably be considered that the transaction would not result directly or indirectly in a misuse of the provisions of this Part or in an abuse having regard to the provisions of this Part (other than this section) read as a whole.

  • Marginal note:Determination of charge-related consequences

    (5) Without restricting the generality of subsection (2), in determining the charge-related consequences to a person, as is reasonable in the circumstances, in order to deny a benefit that would, but for this section, result directly or indirectly from an avoidance transaction

    • (a) any rebate or any deduction in net charge may be allowed or disallowed, in whole or in part;

    • (b) any rebate or deduction referred to in paragraph (a) may, in whole or in part, be allocated to any person;

    • (c) the nature of any payment or other amount may be recharacterized; and

    • (d) the effects that would otherwise result from the application of other provisions of this Part may be ignored.

  • Marginal note:Exception

    (6) Despite any other provision of this Part, the charge-related consequences to any person following the application of this section must only be determined through an assessment, reassessment or additional assessment involving the application of this section.

Marginal note:Definitions

  •  (1) The following definitions apply in this section.

    benefit

    benefit has the meaning assigned by subsection 82(1). (avantage)

    rate change

    rate change means any change in any rate in respect of a type of fuel, or in respect of combustible waste, for a listed province. (modification de taux)

    transaction

    transaction has the meaning assigned by subsection 82(1). (opération)

  • Marginal note:Rate change — transactions

    (2) If

    • (a) a transaction, or a series of transactions, involving property is made between two or more persons, all of whom are not dealing with each other at arm’s length at the time any of those transactions are made;

    • (b) the transaction, any of the transactions in the series of transactions or the series of transactions would in the absence of this section result directly or indirectly in a benefit to one or more of the persons involved in the transaction or series of transactions; and

    • (c) it may not reasonably be considered that the transaction, or the series of transactions, has been undertaken or arranged primarily for bona fide purposes other than to obtain a benefit, arising from a rate change, for one or more of the persons involved in the transaction or series of transactions;

    the amount of charge, net charge, rebate, net charge rebate or other amount payable by, or payable to, any of those persons under this Part, or any other amount that is relevant for the purposes of computing that amount must be determined as is reasonable in the circumstances in order to deny the benefit to any of those persons.

  • Marginal note:Denying benefit on transactions

    (3) Despite any other provision of this Part, a benefit must only be denied under subsection (2) through an assessment, reassessment or additional assessment.

DIVISION 6Administration and Enforcement

SUBDIVISION APayments

Marginal note:Person resident in Canada

 For the purposes of this Division, a person is deemed to be resident in Canada at any time

  • (a) in the case of a corporation, if the corporation is incorporated or continued in Canada and not continued elsewhere;

  • (b) in the case of a partnership, a joint venture, an unincorporated society, a club, an association or an organization, or a branch thereof, if the member or participant, or a majority of the members or participants, having management and control thereof is or are resident in Canada at that time;

  • (c) in the case of a labour union, if it is carrying on activities as such in Canada and has a local union or branch in Canada at that time; or

  • (d) in the case of an individual, if the individual is deemed under any of paragraphs 250(1)(b) to (f) of the Income Tax Act to be resident in Canada at that time.

Marginal note:Set-off of rebates

 If, at any time, a person files a return under section 69 in which the person reports an amount that is required to be paid under this Part by the person and the person claims a rebate under section 49 payable to the person under this Part at that time, in the return or in another return, or in a separate application filed under this Part with the return, the person is deemed to have paid at that time, and the Minister is deemed to have rebated at that time, an amount equal to the lesser of the amount required to be paid and the amount of the rebate.

Marginal note:Large payments

 Every person that is required under this Part to pay an amount to the Receiver General must, if the amount is $50,000 or more, make the payment to the account of the Receiver General at

  • (a) a bank;

  • (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 that is 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 property or immovables or investing in indebtedness on the security of mortgages on real property or hypothecs on immovables.

Marginal note:Small amounts owing

  •  (1) If, at any time, the total of all unpaid amounts owing by a person to the Receiver General under this Part does not exceed $2.00, the amount owing by the person is deemed to be nil.

  • Marginal note:Small amounts payable

    (2) If, at any time, the total of all amounts payable by the Minister to a person under this Part does not exceed $2.00, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada. However, if the person, at that time, does not owe any amount to Her Majesty in right of Canada, those amounts payable are deemed to be nil.

Marginal note:Authority for separate returns

  •  (1) A person that engages in one or more activities in separate branches or divisions may file an application, in the prescribed form and manner, with the Minister for authority to file separate returns and applications for rebates under this Part in respect of a branch or division specified in the application.

  • Marginal note:Authorization by Minister

    (2) On receipt of the application, the Minister may, in writing, authorize the person to file separate returns and applications for rebates in relation to the specified branch or division, subject to any conditions that the Minister may at any time impose, if the Minister is satisfied that

    • (a) the branch or division can be separately identified by reference to its location or the nature of the activities engaged in by it; and

    • (b) separate records, books of account and accounting systems are maintained in respect of the branch or division.

  • Marginal note:Revocation of authorization

    (3) The Minister may revoke an authorization if

    • (a) the person, in writing, requests the Minister to revoke the authorization;

    • (b) the person fails to comply with any condition imposed in respect of the authorization or any provision of this Part;

    • (c) the Minister is no longer satisfied that the requirements of subsection (2) in respect of the person are met; or

    • (d) the Minister considers that the authorization is no longer required.

  • Marginal note:Notice of revocation

    (4) If the Minister revokes an authorization, the Minister must send a notice in writing of the revocation to the person and must specify in the notice the effective date of the revocation.

 
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