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

Marginal note:Application of penalties and fines

• 95 (1) The amount of all penalties and fines under this Act belong to Her Majesty in right of Canada for the public uses of Canada and form part of the Consolidated Revenue Fund.

• Marginal note:Application of penalty on account of tax

  (2) Where a penalty calculated by reference to the amount of the tax that should have been paid or collected or the amount of stamps that should have been affixed or cancelled is imposed and recovered under or pursuant to this Act, the Minister may direct that the amount thereof or any portion thereof be applied on account of the tax that should have been paid or collected or the indebtedness arising out of the failure to affix or cancel the stamps.

Marginal note:Failure to file a return when required

95.1 Every person who fails to file a return for a reporting period as and when required under subsection 79(1) shall pay a penalty equal to the sum of

• (a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the reporting period and was not paid on the day on which the return was required to be filed, and

• (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on which the return was required to be filed to the day on which the return is filed.

Marginal note:False statements or omissions

• 95.2 (1) Every person who knowingly, or under circumstances amounting to gross negligence, makes or participates in, assents to or acquiesces in the making of, a false statement or omission in a return, application, form, certificate, statement, invoice, answer or report (each of which is in this section referred to as a “return”) made in respect of a reporting period is liable to a penalty of the greater of $250 and 25% of the total of

  • (a) if the false statement or omission is relevant to the determination of an amount of tax payable by the person, the amount, if any, by which

    • (i) that tax payable

    exceeds

    • (ii) the amount that would be the tax payable by the person if the tax were determined on the basis of the information provided in the return, and

  • (b) if the false statement or omission is relevant to the determination of a refund, rebate or any other amount payable to the person (each of which is in this section referred to as a “rebate”) under this Act, the amount, if any, by which

    • (i) the amount that would be the rebate payable to the person if the rebate were determined on the basis of the information provided in the return

    exceeds

    • (ii) the amount of the rebate payable to the person.

• Marginal note:Burden of proof in respect of penalties

  (2) If, in an appeal under this Act, a 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.

Marginal note:Punishment for failure to pay or collect taxes or affix stamps

• 96 (1) Every person who, being required, by or pursuant to this Act, to pay or collect taxes or other sums, or to affix or cancel stamps, fails to do so as required is guilty of an offence and, in addition to any other punishment or liability imposed by law for that failure, is liable on summary conviction to a fine of

  • (a) not less than the aggregate of twenty-five dollars and an amount equal to the tax or other sum that he should have paid or collected or the amount of stamps that he should have affixed or cancelled, as the case may be, and

  • (b) not more than the aggregate of one thousand dollars and an amount equal to the tax or other sum or amount of stamps, as the case may be,

  and in default of payment of the fine to imprisonment for a term of not less than thirty days and not more than twelve months.

• Marginal note:Punishment for contravention

  (2) Every person who contravenes any of the provisions of this Act or of a regulation made by the Minister under this Act for which no other punishment is provided is liable on summary conviction to a fine of not less than fifty dollars and not more than one thousand dollars.

• Marginal note:Officers, etc., of corporations

  (3) Where a corporation commits an offence under this Act, any officer, director or agent of the corporation who directed, authorized, assented to, acquiesced in, or participated in the commission of the offence is a party to and guilty of the offence and is liable on summary conviction to the punishment provided for the offence whether or not the corporation has been prosecuted or convicted.

Marginal note:Failing to file return

97 Every person required, by or pursuant to any Part except Part I, to file a return, who fails to file the return within the time it is required to be filed, is guilty of an offence and liable to a fine of not less than $10 and not more than $100.

Marginal note:Offences for false statements

• 97.1 (1) Every person commits an offence who

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

  • (b) for the purpose of evading payment or remittance of any tax under this Act, or obtaining a refund, rebate or other amount to which the person is not entitled under this Act,

    • (i) destroys, alters, mutilates, conceals or otherwise disposes of any records of a person, or

    • (ii) makes, or assents to or acquiesces in the making of, a false or deceptive entry, or omits, or assents to or acquiesces in the omission, to enter a material particular in the records of a person;

  • (c) wilfully, in any manner, evades or attempts to evade compliance with this Act or payment or remittance of tax or any other amount imposed under this Act;

  • (d) wilfully, in any manner, obtains or attempts to obtain a refund, rebate or other amount to which the person is not entitled under this Act; or

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

• Marginal note:Prosecution on summary conviction

  (2) Every person who commits an offence under subsection (1) is guilty of an offence punishable on summary conviction and, in addition to any penalty otherwise provided, is liable to

  • (a) a fine of not less than 50%, and not more than 200%, of the amount of the tax that was sought to be evaded, or of the refund, rebate or other amount sought, or, if the amount that was sought to be evaded cannot be ascertained, a fine of not less than $1,000 and not more than $25,000; or

  • (b) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding two years.

• Marginal note:Prosecution on indictment

  (3) Every person who is charged with an offence described in subsection (1) may, at the election of the Attorney General of Canada, be prosecuted on indictment and, if convicted, is, in addition to any penalty otherwise provided, liable to

  • (a) a fine of not less than 100%, and not more than 200%, of the amount of the tax that was sought to be evaded, or of the refund, rebate or other amount sought, or, if the amount that was sought to be evaded cannot be ascertained, a fine of not less than $2,000 and not more than $25,000; or

  • (b) both a fine referred to in paragraph (a) and imprisonment for a term not exceeding five years.

• Marginal note:Penalty on conviction

  (4) A person that is convicted of an offence under subsection (2) or (3) is not liable to pay a penalty imposed under subsection 79(5) or section 95.1, 95.2 or 109 or under a regulation made under this Act for the same evasion or attempt unless a notice of assessment for that penalty was issued before the information or complaint giving rise to the conviction was laid or made.

• Marginal note:Stay of appeal

  (5) If, 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 Federal Court or may file a request for a postponement or adjournment with the Tribunal, as the case may be, and, on doing so, the proceedings before the Federal Court are stayed or the proceedings before the Tribunal are postponed or adjourned, as the case may be, pending final determination of the outcome of the prosecution.

97.2 [Repealed, 2002, c. 22, s. 418]

97.3 [Repealed, 2001, c. 16, s. 36]

97.4 [Repealed, 2002, c. 22, s. 418]

97.5 [Repealed, 2001, c. 16, s. 37]

Marginal note:Books and records

• 98 (1) Every person who

  • (a) is required, by or pursuant to this Act, to pay or collect taxes or other sums or to affix or cancel stamps, or

  • (b) makes an application under any of sections 68 to 70,

  shall keep records and books of account in English or French at that person’s place of business in Canada in such form and containing such information as will enable the amount of taxes or other sums that should have been paid or collected, the amount of stamps that should have been affixed or cancelled or the amount, if any, of any drawback, payment or deduction that has been made or that may be made to or by that person, to be determined.

• Marginal note:Keeping of records and books of account

  (2) Every person required by subsection (1) to keep records and books of account shall retain those records and books of account and every account and voucher necessary to verify the information contained therein until the expiration of six years from the end of the calendar year in respect of which those records and books of account are kept or until written permission for their prior disposal is given by the Minister.

• Marginal note:Electronic records

  (2.01) Every person required by this section to keep records who does so electronically shall retain them in an electronically readable format for the retention period set out in subsection (2).

• Marginal note:Exemption

  (2.02) The Minister may, on such terms and conditions as are acceptable to the Minister, exempt a person or a class of persons from the requirement in subsection (2.01).

• Marginal note:Idem

  (2.1) Notwithstanding subsection (2), where a person required by subsection (1) to keep records and books of account serves a notice of objection under section 81.15 or 81.17 or is a party to an appeal under this Part, he shall retain those records and books of account and every account and voucher necessary to verify the information therein until the objection or appeal has been finally disposed of by appeal or otherwise.

• Marginal note:Inspection

  (3) Every person required by subsection (1) to keep records and books of account shall, at all reasonable times, for any purpose related to the administration or enforcement of this Act

  • (a) make the records and books of account and every account and voucher necessary to verify the information therein available to a particular person that is an officer of the Agency or another person authorized by the Minister;

  • (b) give the particular person all reasonable assistance to inspect, audit or examine the records, books, accounts and vouchers;

  • (c) give the particular person all reasonable assistance, answer all proper questions relating to the administration and enforcement of this Act and

    • (i) attend with the particular person at a place designated by the particular person, or by video-conference or by another form of electronic communication, and answer the questions orally, and

    • (ii) answer the questions in writing, in any form specified by the particular person; and

  • (d) give the particular person all reasonable assistance with anything the particular person is authorized to do under this Act.

Marginal note:Inspection

98.1 Every person who is authorized under a statute of the Province of Ontario, Quebec, Nova Scotia, New Brunswick or Prince Edward Island to sell manufactured tobacco in the province to a purchaser who is authorized under a statute of the province to retail manufactured tobacco in the province shall, at all reasonable times, make the person’s records and books of account and the records and vouchers necessary to verify the information in them available to officers of the Agency, and to other persons authorized by the Minister for the purpose of this section, for any purpose relating to the administration or enforcement of this Act and give them every facility necessary to inspect the records, books, accounts and vouchers for that purpose.