Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Petroleum and Gas Revenue Tax Act (R.S.C., 1985, c. P-12)

Act current to 2022-07-25 and last amended on 2005-12-12. Previous Versions

PART IRevenue Tax (continued)

General Provisions (continued)

Marginal note:When proceedings held in camera

 Proceedings under sections 22 and 23 shall be held in camera on request made to the Federal Court by the taxpayer.

  • 1980-81-82-83, c. 68, s. 98

PART IIRoyalties Tax

Tax and Computation

Marginal note:Tax payable by non-resident persons

  •  (1) A tax shall be payable by every non-resident person, in this section referred to as the “recipient”, on every amount received by the recipient as, on account of or in lieu of payment of, or in satisfaction of a resource royalty, computed by reference to the amount or value of production of petroleum or gas after 1985 and before October 1986, unless the recipient, at the time of the receipt of the resource royalty, carries on a business described in subparagraph 66(15)(h)(i) of the Income Tax Act through one or more fixed places of business in Canada.

  • Marginal note:Computation of tax

    (2) The tax payable by a person under this Part in respect of

    • (a) a resource royalty, other than a resource royalty on synthetic production, shall, where the royalty is computed by reference to the amount or value of production of petroleum or gas, be 13.33% of the amount of such royalty; and

    • (b) a resource royalty on synthetic production shall, where the royalty is computed by reference to the amount or value of production of petroleum or gas, be 12% of the amount of such royalty.

  • (3) and (4) [Repealed, R.S., 1985, c. 2 (2nd Supp.), s. 13]

  • Marginal note:Deduction or withholding required

    (5) A person who pays a resource royalty on which a tax is payable under this Part shall, notwithstanding any agreement or law to the contrary, deduct or withhold therefrom the tax payable under this Part and the amount so deducted or withheld shall be deemed to have been paid on behalf of the recipient on account of the recipient’s tax.

  • Marginal note:Amount to be remitted

    (6) A person who has deducted or withheld tax from a royalty as required by subsection (5) shall, on or before the fifteenth day of the month next following the month in which the royalty was paid, remit the amount deducted or withheld, accompanied by a return in prescribed form, to the Receiver General.

  • (7) to (9) [Repealed, R.S., 1985, c. 2 (2nd Supp.), s. 13]

  • Marginal note:Where no tax is payable

    (10) Notwithstanding subsection (1), no tax shall be payable under this Part by a taxpayer on

    • (a) any portion of the amount received by the taxpayer as a production royalty or resource royalty, computed by reference to the amount or value of production in a period after March 31, 1985 from an approved recovery project, that is the exempt percentage of the amount for that period in respect of that project;

    • (b) any portion of the amount received by the taxpayer as a production royalty or resource royalty, computed by reference to the amount or value of production of petroleum or gas from a deepened well that is attributable to the new deep production from the well; or

    • (c) an amount received by the taxpayer as a production royalty or resource royalty computed by reference to the amount or value of production from a prescribed oil or gas well.

  • R.S., 1985, c. P-12, s. 26
  • R.S., 1985, c. 2 (2nd Supp.), s. 13, c. 45 (2nd Supp.), s. 7

General

Marginal note:When tax deemed received

  •  (1) When tax has been deducted or withheld from a royalty as required by subsection 26(5), it shall be deemed to have been received at that time by the person to whom the royalty was paid.

  • Marginal note:Trustee, etc.

    (2) For the purposes of subsections 26(5) and (6), where a trustee who is administering, managing, distributing, winding-up, controlling or otherwise dealing with the property, business, estate or income of another person authorizes or otherwise causes a resource royalty or a production royalty to be paid on behalf of that other person, the trustee shall be deemed to be a person making the payment and the trustee and that other person shall be jointly and severally liable in respect of the amount required by subsection 26(6) to be remitted on account of any amount required by subsection 26(5) to be deducted or withheld from the payment.

  • Marginal note:Returns required

    (3) Every person who pays a resource royalty or production royalty in a calendar year shall

    • (a) make an information return in prescribed form and containing prescribed information in respect of all such payments made in the year;

    • (b) file the return with the Minister, without notice or demand therefor,

      • (i) in any case where the person discontinues his business or activity, within thirty days of the date of the discontinuance of the business or activity, or

      • (ii) in any other case, on or before the last day of February of the next following year; and

    • (c) forward to each taxpayer, in respect of whose resource royalty or production royalty the return relates, at the taxpayer’s latest known address or deliver to the taxpayer in person, one copy of the portion of the return relating to the taxpayer on or before the date the return is required to be filed with the Minister.

  • Marginal note:Returns by trustees

    (4) Every trustee who is administering, managing, winding-up, controlling or otherwise dealing with the property, business, estate or income of a person who has not filed a return as required by subsection (3) shall file that return.

  • Marginal note:Definition of “trustee”

    (5) In subsections (2) and (4), trustee includes a liquidator, receiver, receiver-manager, trustee in bankruptcy, assignee, executor, administrator, sequestrator or any other person performing a function similar to that performed by any such person.

  • R.S., 1985, c. P-12, s. 27
  • R.S., 1985, c. 2 (2nd Supp.), s. 14

Marginal note:Actions for deducting, etc., prohibited

  •  (1) No action lies against any person for deducting or withholding any sum of money in compliance or intended compliance with this Part.

  • Marginal note:Deduction, etc., deemed held in trust

    (2) Every person who deducts or withholds any amount that is required under this Part to be remitted shall be deemed to hold that amount in trust for Her Majesty in right of Canada and all such amounts shall be kept separate and apart from that person’s own moneys and, in the event of any liquidation, assignment or bankruptcy, those amounts shall remain apart and form no part of the estate in liquidation, assignment or bankruptcy.

  • Marginal note:Payment by Minister where no liability for tax

    (3) Where a person on whose behalf an amount has been deducted or withheld under this Part is not liable to pay any tax under this Part or the amount deducted or withheld is in excess of the tax that the person is liable to pay, the Minister shall, on application in writing by or on behalf of the person made to the Minister within two years from the end of the calendar year in which the amount was so deducted or withheld, pay to that person the amount or such part thereof as he was not liable to pay, unless he is otherwise liable or about to become liable to make a payment under this Act, in which case the Minister may apply the amount otherwise payable under this subsection to that payment and notify the person of that fact.

  • Marginal note:Assessment in certain cases

    (4) Where, on application by or on behalf of a person pursuant to subsection (3) in respect of an amount that was deducted or withheld under this Part, the Minister is not satisfied

    • (a) that the person was not liable to pay any tax under this Part, or

    • (b) that the amount was in excess of the tax that the person was liable to pay,

    the Minister shall assess that person for any amount payable by him under this Part and send a notice of assessment to that person, whereupon subsections 13(3), (4) and (7) and sections 18 to 25 apply, with such modifications as the circumstances require, in respect of the assessment of that person.

  • Marginal note:Liability

    (5) Any person who fails to deduct or withhold tax as required by this Part is liable to pay to Her Majesty the amount that should have been deducted or withheld together with interest thereon at the rate per annum prescribed for the purposes of subsection 227(8) of the Income Tax Act.

  • Marginal note:Penalty

    (6) Every person who fails to remit as required by this Part the amount of tax deducted or withheld under this Part is liable to a penalty of ten per cent of that amount or ten dollars, whichever is the greater, in addition to the amount itself, together with interest on the amount at the rate per annum referred to in subsection (5).

  • Marginal note:Assessment generally

    (7) The Minister may assess any person for any amount payable by that person under this Part and send a notice of assessment to that person, whereupon subsections 13(3), (4) and (7), 14(6), (7), (9) and (10) and sections 18 to 25 apply, with such modifications as the circumstances require, in respect of the assessment of that person.

  • Marginal note:Certain agreements void

    (8) Where under this Part an amount is required to be deducted or withheld, an agreement by the person on whom the obligation is imposed not to deduct or withhold is void.

  • Marginal note:Receipt of Minister sufficient

    (9) The receipt of the Minister for tax deducted or withheld by any person as required by this Part is a good and sufficient discharge of the liability of any debtor to his creditor with respect thereto to the extent of the amount referred to in the receipt.

  • 1980-81-82-83, c. 68, s. 101

PART IIIAdministration and Enforcement

General

Marginal note:Minister’s responsibilities and powers

  •  (1) The Minister shall administer and enforce this Act and the Commissioner of Revenue may exercise the powers and perform the duties of the Minister under this Act.

  • Marginal note:Officers, etc.

    (2) Such officers, clerks and employees as are necessary for the proper administration and enforcement of this Act shall be appointed or employed in the manner authorized by law.

  • Marginal note:Idem

    (3) The Minister may authorize an officer or class of officers to exercise the powers or perform the duties of the Minister under this Act.

  • R.S., 1985, c. P-12, s. 29
  • 1994, c. 13, s. 7
  • 1999, c. 17, s. 172
  • 2005, c. 38, s. 140

Marginal note:Extensions of time

 The Minister may at any time extend the time for filing a return under this Act.

  • 1980-81-82-83, c. 68, s. 102

Marginal note:Acceptance of security by Minister

 The Minister may, if he considers it advisable in a particular case, accept security for payment of taxes by way of mortgage or other charge on property of the taxpayer or any other person or by way of guarantees from other persons.

  • 1980-81-82-83, c. 68, s. 102

Marginal note:Administration of oaths

 Any person appointed or employed in connection with the administration or enforcement of this Act, if he is designated by the Minister for the purpose, may, in the course of his duties, administer oaths and take and receive affidavits, declarations and solemn affirmations for the purposes of or incidental to the administration or enforcement of this Act and every person so designated has for those purposes all the powers of a commissioner for administering oaths or taking affidavits.

  • 1980-81-82-83, c. 68, s. 102

Marginal note:Application of Income Tax Act provisions

 Sections 221, 222, 224, 225, 226, 230, 232 and 241 of the Income Tax Act apply, with such modifications as the circumstances require, in respect of the administration and enforcement of this Act.

  • 1980-81-82-83, c. 68, s. 103, c. 104, s. 28

Marginal note:Certificates

  •  (1) An amount payable under this Act that has not been paid or such part of an amount payable under this Act as has not been paid may be certified by the Minister

    • (a) where there has been a direction by the Minister under subsection 14(7), forthwith after that direction; and

    • (b) otherwise, on the expiration of thirty days after the default.

  • Marginal note:Judgments

    (2) On production to the Federal Court, a certificate made under this section shall be registered in the Court and when registered has the same force and effect, and all proceedings may be taken thereon, as if the certificate were a judgment obtained in that Court for a debt of the amount specified in the certificate plus interest to the day of payment as provided for in this Act.

  • Marginal note:Costs

    (3) All reasonable costs and charges incurred in the registration of a certificate made under this section are recoverable in like manner as if they had been certified and the certificate had been registered under this section.

  • 1980-81-82-83, c. 68, s. 104

Marginal note:Recovery by deduction or set-off

 Where a person is indebted to Her Majesty under this Act, the Minister may require the retention by way of deduction or set-off of such amount as the Minister may specify out of any amount that is or may become payable to that person by Her Majesty in right of Canada.

  • 1980-81-82-83, c. 68, s. 105

Marginal note:Inspections and investigations

 Sections 231 to 231.5 of the Income Tax Act apply in respect of the administration and enforcement of this Act, as if the reference in paragraph 231.2(1)(a) thereof to a “return of income” were read as a reference to “a return of production revenue.

  • R.S., 1985, c. P-12, s. 36
  • R.S., 1985, c. 5 (2nd Supp.), s. 11

Marginal note:Information return

 Whether or not he has filed an information return in prescribed form, every person shall, on demand from the Minister, served personally or by registered mail, file with the Minister, within such reasonable time as may be stipulated in the demand, such information return as is designated therein.

  • 1980-81-82-83, c. 68, s. 107

Marginal note:Execution of documents by corporations

 A return, certificate or other document made by a corporation pursuant to this Act or a regulation made thereunder shall be signed on its behalf by the President, Secretary or Treasurer of the corporation or by any other officer or person thereunto duly authorized by the Board of Directors or other governing body of the corporation.

  • 1980-81-82-83, c. 68, s. 108

Offences and Punishment

Marginal note:Offences

  •  (1) Every person who fails to file a return as and when required by or under this Act is guilty of an offence and, in addition to any penalty otherwise provided, liable on summary conviction to a fine not exceeding one hundred dollars for each day of default.

  • Marginal note:Idem

    (2) Every person who fails to comply with or contravenes subsection 26(5) or any provision of sections 231.1 to 231.5 of the Income Tax Act as it applies to the administration and enforcement of this Act is guilty of an offence and, in addition to any penalty otherwise provided, liable on summary conviction to a fine not exceeding ten thousand dollars or to imprisonment for a term not exceeding six months or to both.

  • R.S., 1985, c. P-12, s. 39
  • R.S., 1985, c. 5 (2nd Supp.), s. 12

Marginal note:Idem

  •  (1) Every person who

    • (a) makes, or participates in, assents to or acquiesces in the making of, false or deceptive statements in a return, certificate, statement or answer filed or made as required by or under this Act,

    • (b) to evade payment of a tax imposed by this Act, destroys, alters, mutilates, secretes or otherwise disposes of the records or books of account of a taxpayer,

    • (c) makes, or assents to or acquiesces in the making of, false or deceptive entries or omits, or assents to or acquiesces in the omission, to enter a material particular in records or books of account of a taxpayer,

    • (d) wilfully, in any manner, evades or attempts to evade compliance with this Act or payment of taxes imposed by this Act, or

    • (e) conspires with any person to commit an offence referred to in any of paragraphs (a) to (d),

    is guilty of an offence and, in addition to any penalty otherwise provided, liable on summary conviction to a fine of not more than double the amount of the tax that was sought to be evaded or to imprisonment for a term not exceeding two years or to both.

  • Marginal note:Penalty on conviction

    (2) Where a person has been convicted under this section of wilfully, in any manner, evading or attempting to evade payment of taxes imposed by Part I, he is not liable to pay a penalty imposed under section 17 for the same evasion or attempt unless he was assessed for that penalty before the information or complaint giving rise to the conviction was laid or made.

  • Marginal note:Stay of appeal

    (3) Where, in any appeal under this Act, substantially the same facts are at issue as those that are at issue in a prosecution under this section, the Minister may file a stay of proceedings with the Tax Court of Canada and thereupon the proceedings before that Court are stayed pending final determination of the outcome of the prosecution.

  • R.S., 1985, c. P-12, s. 40
  • R.S., 1985, c. 51 (4th Supp.), s. 21
 
Date modified: