Excise Tax Act (R.S.C., 1985, c. E-15)

Marginal note:Minimum amounts owed to Her Majesty

• 297.1 (1) If the Minister determines, at any time, that the total of all amounts owing by a person to Her Majesty in right of Canada under this Part does not exceed two dollars, those amounts are deemed to be nil.

• Marginal note:Minimum amounts payable by Minister

  (2) If, at any time, the total of all amounts payable by the Minister to a person under this Part does not exceed two dollars, 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:Period for assessment

• 298 (1) Subject to subsections (3) to (6.1), an assessment of a person shall not be made under section 296

  • (a) in the case of

    • (i) an assessment of net tax of the person for a reporting period of the person,

    • (ii) an amount payable under section 230.1 in respect of an amount paid to, or applied to a liability of, the person as a refund under Division V in respect of a reporting period of the person, or

    • (iii) an amount payable under section 230.1 in respect of an amount paid to, or applied to a liability of, the person as interest under Division V in respect of an amount paid or applied as a refund in respect of a reporting period of the person,

    more than four years after the later of the day on or before which the person was required under section 238 to file a return for the period and the day the return was filed;

  • (a.01) despite paragraph (a), in the case of an assessment of the net tax of the person for a reporting period of the person that is made solely to take into account an amount of tax payable under section 218.01, more than seven years after the later of the day on or before which the person was required under section 238 to file a return for the period and the day the return was filed;

  • (a.1) in the case of an assessment of an amount payable under paragraph 228(2.1)(b) or (2.3)(d), 232.01(5)(c) or 232.02(4)(c) that a person is required to pay on or before a day, more than four years after that day;

  • (b) in the case of an assessment of tax payable by the person under Division II in respect of a supply to which subsection 221(2) or (2.1) applies, more than four years after the later of the day on or before which the person was required to file the return in which that tax was required to be reported and the day the return was filed;

  • (c) in the case of an assessment of tax payable by the person under Division II, other than tax referred to in paragraph (b), more than four years after the tax became payable;

  • (d) in the case of an assessment of tax payable by the person under Division IV,

    • (i) if the tax is payable under section 218.01 or subsection 218.1(1.2), more than seven years after the later of the day on or before which the person was required to file the return in which that tax was required to be reported and the day the return was filed, and

    • (ii) in any other case, more than four years after the later of the day on or before which the person was required to file the return in which that tax was required to be reported and the day the return was filed;

  • (d.1) in the case of an assessment of tax payable by the person under Division IV.1, more than four years after

    • (i) where the person is required to report the tax in a return, the later of the day on or before which the person was required to file the return with the Minister and the day the return was filed, and

    • (ii) in any other case, the day the person is required to pay the tax to the Receiver General;

  • (e) in the case of any penalty payable by the person, other than a penalty under section 280.1, 285, 285.01, 285.02, 285.03 or 285.1, more than four years after the person became liable to pay the penalty;

  • (f) in the case of an assessment of an amount for which a person became liable under subsection 177(1.1), section 266 or 267.1, subsection 270(4) or Subdivision B.1 of Division VII, more than four years after the person became liable; and

  • (g) in the case of an assessment for an amount for which a trustee in bankruptcy became liable under Subdivision A of Division VII, after the earlier of

    • (i) the day that is ninety days after the return under this Part on which the assessment is based is filed with, or other evidence of the facts on which the assessment is based comes to the attention of, the Minister, and

    • (ii) the expiration of the period determined under whichever of paragraphs (a) to (e) applies in the circumstances.

• Marginal note:Period for assessment of rebate

  (2) Subject to subsections (3) to (6.1), an assessment under subsection 297(1) of the amount of a rebate may be made at any time, but a reassessment or additional assessment under section 297 or an assessment under subsection 297(2.1) in respect of an amount paid or applied as a rebate or of an amount paid or applied as interest in respect of an amount paid or applied as a rebate shall not be made more than four years after the day the application for the rebate was filed in accordance with this Part.

• Marginal note:Exception

  (3) Subsections (1) and (2) do not apply in respect of a reassessment of a person made

  • (a) to give effect to a decision on an objection or appeal;

  • (b) with the consent in writing of the person to dispose of an appeal; or

  • (c) to give effect to an alternative basis or argument advanced by the Minister under subsection (6.1).

• Marginal note:Idem

  (4) An assessment in respect of any matter may be made at any time where the person to be assessed has, in respect of that matter,

  • (a) made a misrepresentation that is attributable to the person’s neglect, carelessness or wilful default;

  • (b) committed fraud

    • (i) in making or filing a return under this Part,

    • (ii) in making or filing an application for a rebate under Division VI, or

    • (iii) in supplying, or failing to supply, any information under this Part; or

  • (c) filed a waiver under subsection (7) that is in effect at that time.

• Marginal note:Idem

  (5) Where, in making an assessment, the Minister determines that a person has paid in respect of any matter an amount as or an account of tax payable or net tax remittable for a particular reporting period of the person that was in fact payable or remittable for another reporting period of the person, the Minister may at any time make an assessment for that other period in respect of that matter.

• Marginal note:Idem

  (6) Where the result of a reassessment on an objection to, or a decision on an appeal from, an assessment is to reduce the amount of tax payable by a person and, by reason of the reduction, any input tax credit or rebate claimed by the person for a reporting period, or in an application for a rebate, should be reduced, the Minister may assess or reassess that reporting period or that application for rebate, as the case may be, only for the purpose of taking the reduction of tax into account in respect of the input tax credit or rebate.

• Marginal note:Alternative basis or argument

  (6.1) The Minister may advance an alternative basis or argument in support of an assessment of a person, or in support of all or any portion of the total amount determined on assessment to be payable or remittable by a person under this Part, at any time after the period otherwise limited by subsection (1) or (2) for making the assessment unless, on an appeal under this Part,

  • (a) there is relevant evidence that the person is no longer able to adduce without leave of the court; and

  • (b) it is not appropriate in the circumstances for the court to order that the evidence be adduced.

• Marginal note:Limitation

  (6.2) If a reassessment of a person is made that gives effect to an alternative basis or argument advanced by the Minister under subsection (6.1) in support of a particular assessment of the person, the Minister shall not reassess for an amount that is greater than the total amount of the particular assessment.

• Marginal note:Exception

  (6.3) Subsection (6.2) does not apply to any portion of an amount determined on reassessment that the Minister would be entitled to reassess under this Part at any time after the period otherwise limited by subsection (1) or (2) for making the reassessment if this Part were read without reference to subsection (6.1).

• Marginal note:Waiver

  (7) Any person may, within the time otherwise limited by subsection (1) or (2) for assessing the person, waive the application of subsection (1) or (2) by filing with the Minister a waiver in the prescribed form specifying the matter in respect of which the person waives the application of that subsection.

• Marginal note:Revoking waiver

  (8) Any person who files a waiver under subsection (7) may revoke the waiver on six months notice to the Minister by filing with the Minister a notice of revocation of the waiver in the prescribed form.

Marginal note:Minister not bound

• 299 (1) The Minister is not bound by any return, application or information provided by or on behalf of any person and may make an assessment, notwithstanding any return, application or information so provided or that no return, application or information has been provided.

• Marginal note:Liability not affected

  (2) Liability under this Part to pay or remit any tax, penalty, interest or other amount is not affected by an incorrect or incomplete assessment or by the fact that no assessment has been made.

• Marginal note:Assessment valid and binding

  (3) An assessment, subject to being vacated on an objection or appeal under this Part and subject to a reassessment, shall be deemed to be valid and binding.

• Marginal note:Binding effect where unincorporated body

  (3.1) Where a person (referred to in this subsection as the “body”) that is not an individual or a corporation is assessed in respect of any matter,

  • (a) the assessment is not invalid only because one or more other persons (each of which is referred to in this subsection as a “representative”) who are liable for obligations of the body did not receive a notice of the assessment;

  • (b) the assessment is binding on each representative of the body, subject to a reassessment of the body and the rights of the body to object to or appeal from the assessment under this Part; and

  • (c) an assessment of a representative in respect of the same matter is binding on the representative subject only to a reassessment of the representative and the rights of the representative to object to or appeal from the assessment of the representative under this Part on the grounds that the representative is not a person who is liable to pay or remit an amount to which the assessment of the body relates, the body has been reassessed in respect of that matter or the assessment of the body in respect of that matter has been vacated.

• Marginal note:Assessment deemed valid

  (4) An assessment shall, subject to being reassessed or vacated as a result of an objection or appeal under this Part, be deemed to be valid and binding, notwithstanding any error, defect or omission therein or in any proceeding under this Part relating thereto.

• Marginal note:Irregularities

  (5) An appeal from an assessment shall not be allowed by reasons only of an irregularity, informality, omission or error on the part of any person in the observation of any directory provision of this Part.

Marginal note:Notice of assessment

• 300 (1) After making an assessment, the Minister shall send to the person assessed a notice of the assessment.

• Marginal note:Scope of notice

  (2) A notice of assessment may include assessments in respect of any number or combination of reporting periods, transactions, rebates or amounts payable or remittable under this Part.

Marginal note:Amount deemed not assessed

300.1 Despite any other provision of this Part, an amount in respect of which particular information relevant to its assessment was provided to the Canada Revenue Agency under a contract entered into by a person under a program administered by the Canada Revenue Agency to obtain information relating to tax non-compliance is, until the amount is collected by the Minister, deemed for the purpose of any agreement entered into by or on behalf of the Government of Canada under section 8.3 of the Federal-Provincial Fiscal Arrangements Act not to be payable or remittable under this Part as a result of an assessment.

Objections and Appeals

Meaning of specified person

• 301 (1) Where an assessment is issued to a person in respect of net tax for a reporting period of the person, an amount (other than net tax) that became payable or remittable by the person during a reporting period of the person or a rebate of an amount paid or remitted by the person during a reporting period of the person, for the purposes of this section, the person is a specified person in respect of the assessment or a notice of objection to the assessment if

  • (a) the person was a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) during that reporting period; or

  • (b) the person was not a charity during that reporting period and the person’s threshold amounts, determined in accordance with subsection 249(1), exceed $6 million for both the person’s fiscal year that includes the reporting period and the person’s previous fiscal year.

• Marginal note:Objection to assessment

  (1.1) Any person who has been assessed and who objects to the assessment may, within ninety days after the day notice of the assessment is sent to the person, file with the Minister a notice of objection in the prescribed form and manner setting out the reasons for the objection and all relevant facts.

• Marginal note:Issue to be decided

  (1.2) Where a person objects to an assessment in respect of which the person is a specified person, the notice of objection shall

  • (a) reasonably describe each issue to be decided;

  • (b) specify in respect of each issue the relief sought, expressed as the change in any amount that is relevant for the purposes of the assessment; and

  • (c) provide the facts and reasons relied on by the person in respect of each issue.

• Marginal note:Input tax allocation

  (1.21) If a financial institution to which subsection (1.2) does not apply objects to an assessment and the objection relates in any manner to the application of section 141.02, the notice of objection shall

  • (a) reasonably describe each issue to be decided in respect of that section;

  • (b) specify in respect of each of those issues the relief sought, expressed as the change in any amount that is relevant for the purposes of the assessment; and

  • (c) provide the facts and reasons relied on by the financial institution in respect of each of those issues.

• Marginal note:Late compliance

  (1.3) Despite subsection (1.2) or (1.21), if a notice of objection filed by a person to which one of those subsections applies does not include the information required by paragraph (1.2)(b) or (c), or (1.21)(b) or (c), as the case may be, in respect of an issue to be decided that is described in the notice, the Minister may in writing request the person to provide the information, and those paragraphs shall be deemed to be complied with in respect of the issue if, within 60 days after the request is made, the person submits the information in writing to the Minister.

• Marginal note:Limitation on objections

  (1.4) Despite subsection (1.1), if a person to which subsection (1.2) or (1.21) applies has filed a notice of objection to an assessment (in this subsection referred to as the “earlier assessment”) and the Minister makes a particular assessment under subsection (3) pursuant to the notice of objection, except where the earlier assessment was made under subsection 274(8) or in accordance with an order of a court vacating, varying or restoring an assessment or referring an assessment back to the Minister for reconsideration and reassessment, the person may object to the particular assessment in respect of an issue

  • (a) only if the person complied with subsection (1.2) or (1.21) in the notice with respect to that issue; and

  • (b) only with respect to the relief sought in respect of that issue as specified by the person in the notice.

• Marginal note:Application of subsection (1.4)

  (1.5) Where a person has filed a notice of objection to an assessment (in this subsection referred to as the “earlier assessment”) and the Minister makes a particular assessment under subsection (3) pursuant to the notice of objection, subsection (1.4) does not limit the right of the person to object to the particular assessment in respect of an issue that was part of the particular assessment and not part of the earlier assessment.

• Marginal note:Limitation on objections

  (1.6) Notwithstanding subsection (1.1), no objection may be made by a person in respect of an issue for which the right of objection has been waived in writing by the person.

• Marginal note:Acceptance of objection

  (2) The Minister may accept a notice of objection notwithstanding that it was not filed in the prescribed manner.

• Marginal note:Consideration of objection

  (3) On receipt of a notice of objection, the Minister shall, with all due dispatch, reconsider the assessment and vacate or confirm the assessment or make a reassessment.

• Marginal note:Waiving reconsideration

  (4) Where, in a notice of objection, a person who wishes to appeal directly to the Tax Court requests the Minister not to reconsider the assessment objected to, the Minister may confirm the assessment without reconsideration.

• Marginal note:Notice of decision

  (5) After reconsidering an assessment under subsection (3) or confirming an assessment under subsection (4), the Minister shall send to the person objecting notice of the Minister’s decision by registered or certified mail.