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

Act current to 2019-06-20 and last amended on 2005-12-12. Previous Versions

PART IRevenue Tax (continued)

General Provisions

Marginal note:Interest

  •  (1) Where at any particular time after the day on or before which a return of a taxpayer’s production revenue was required to be filed under this Part for a taxation year,

    • (a) the amount of the taxpayer’s tax payable for the year under this Part

    exceeds

    • (b) the aggregate of all amounts each of which is an amount paid at or before the particular time on account of the taxpayer’s tax payable and applied as at that time by the Minister against the taxpayer’s liability for an amount payable under this Part for the year,

    the person liable to pay the tax shall pay interest on such excess, for the period during which it is outstanding, at such rates per annum prescribed for the purposes of subsection 161(1) of the Income Tax Act as are in effect from time to time during the period.

  • Marginal note:Idem

    (2) In addition to the interest payable under subsection (1), where a taxpayer, being required by this Part to pay a part or an instalment of tax, has failed to pay all or any part thereof, that taxpayer shall, on payment of the amount he failed to pay, pay interest at the rate per annum referred to in subsection (1) from the day on or before which he was required to make the payment to the day of payment or the beginning of the period in respect of which he becomes liable to pay interest thereon under subsection (1), whichever is earlier.

  • Marginal note:Deemed liability of individual

    (3) For the purposes of subsection (2), where an individual, other than a trust, is required to pay a part or an instalment of tax for a taxation year computed by reference to

    • (a) the amount, if any, by which the amount estimated by that individual to be the tax payable under this Part by him for the year exceeds the amount estimated by him to be deductible from his tax otherwise payable for the year under subsection 9(5), or

    • (b) his instalment base for the year,

    he shall be deemed to have been liable to pay a part or an instalment computed by reference to the lesser of

    • (c) the amount, if any, by which the tax payable under this Part by him for the year exceeds the amount deducted under subsection 9(5) from his tax otherwise payable, and

    • (d) his instalment base for the year.

  • Marginal note:Where individual a trust

    (4) For the purposes of subsection (2), where an individual that is a trust is required to pay a part or an instalment of tax for a taxation year computed by reference to

    • (a) the amount, if any, by which the amount estimated by it to be the tax payable on its production revenue for the year exceeds the amount estimated by it to be deductible from its tax otherwise payable for the year under subsection 9(5), or

    • (b) its instalment base for the year,

    it shall be deemed to have been liable to pay a part or an instalment computed by reference to the lesser of

    • (c) the amount, if any, by which the tax payable by it on its production revenue for the year exceeds the amount deducted under subsection 9(5) from its tax otherwise payable, and

    • (d) its instalment base for the year.

  • Marginal note:Deemed liability of corporation

    (5) For the purposes of subsection (2), where a corporation, commission or association is required to pay a part or an instalment of tax for a taxation year computed by reference to a method described in subsection 14(2), it shall be deemed to have been liable to pay a part or an instalment computed by reference to

    • (a) the amount, if any, by which the tax payable by it on its production revenue for the year exceeds the aggregate of all amounts each of which is the amount, if any, deducted under subsection 9(5) or 10(1) from its tax otherwise payable for the year,

    • (b) its first instalment base for the year, or

    • (c) its second instalment base for the year and its first instalment base for the year,

    whichever method gives rise to the least amount required to be paid by it on or before the days referred to in paragraph 14(2)(a), (b) or (c).

  • (6) [Repealed, R.S., 1985, c. 2 (2nd Supp.), s. 11]

  • R.S., 1985, c. P-12, s. 15
  • R.S., 1985, c. 2 (2nd Supp.), s. 11

Marginal note:Excessive refund provisions

 Where at any time the Minister determines that, as a consequence of the operation of subsection 5(6), an amount has been refunded to a taxpayer for a taxation year in excess of the amount to which the taxpayer was entitled as a refund,

  • (a) the excess shall be deemed to be an amount that became payable under this Part by the taxpayer on the day on which the amount was refunded;

  • (b) the taxpayer shall pay interest at the rate prescribed for the purposes of subsection 161(1) of the Income Tax Act on the excess from the day it became payable to the date of a payment; and

  • (c) the Minister may at any time assess a taxpayer in respect of any amount payable by the taxpayer by virtue of this section and, in such case, the provisions of this Part are applicable, with such modifications as the circumstances require, in respect of the assessment as though it had been made under section 13.

  • 1984, c. 46, s. 9

Marginal note:Penalties

  •  (1) Every person who fails to file a return of production revenue as and when required by subsection 11(1) is liable to a penalty of

    • (a) an amount equal to five per cent of the tax under this Part that was unpaid when the return was required to be filed; and

    • (b) the product obtained when one per cent of the tax under this Part that was unpaid when the return was required to be filed is multiplied by the number of complete months, not exceeding twelve, in the period between the date on which the return was required to be filed and the date on which the return was filed.

  • Marginal note:Evasion

    (2) Every person who wilfully attempts to evade payment of the tax payable by him under this Part by failing to file a return of production revenue as and when required by subsection 11(1) is liable to a penalty of fifty per cent of the amount of the tax sought to be evaded.

  • Marginal note:False statements, etc.

    (3) Every person who, knowingly or under circumstances amounting to gross negligence in the carrying out of any duty or obligation imposed by or under this Act, makes or participates in, assents to or acquiesces in the making of, a false statement or an omission in a return, form, certificate, statement or an answer, in this section referred to as a “return”, filed or made in respect of a taxation year as required by or under this Act is liable to a penalty of twenty-five per cent of the amount, if any, by which

    • (a) the tax for the year that would be payable under this Part by the person if the production revenue of the person for the year were computed by adding to such revenue reported in the person’s return for the year that portion of the understatement of such revenue for the year that is reasonably attributable to the false statement or omission,

    exceeds

    • (b) the tax for the year that would have been payable under this Part by that person had his tax payable for the year been assessed on the basis of the information provided in his return for the year.

  • Marginal note:Understatement of revenue

    (4) For the purposes of subsection (3), the production revenue reported in a return of a person for a taxation year shall be deemed not to be less than nil and the understatement of production revenue for the year of a person means the aggregate of

    • (a) the amount, if any, by which

      • (i) the aggregate of amounts that were not reported by that person in his return and that were required to be included in computing that revenue for the year

      exceeds

      • (ii) the aggregate of such of the amounts deductible by that person in computing that revenue for the year under this Part as were wholly applicable to the amounts referred to in subparagraph (i) and were not deducted by him in computing that revenue for the year reported by him in his return, and

    • (b) the amount, if any, by which

      • (i) the aggregate of amounts deducted by that person in computing that revenue for the year reported by him in his return

      exceeds

      • (ii) the aggregate of such of the amounts referred to in subparagraph (i) as were deductible by him in computing that revenue for the year in accordance with this Part.

  • Marginal note:Burden of proof

    (5) Where, in any appeal under this Act, any penalty assessed by the Minister under this section is in issue, the burden of establishing the facts justifying the assessment of the penalty is on the Minister.

  • R.S., 1985, c. P-12, s. 17
  • R.S., 1985, c. 2 (2nd Supp.), s. 12
 
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