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

Full Document:  

Act current to 2019-06-20 and last amended on 2019-06-17. Previous Versions

PART VIIGeneral (continued)

Purchaser Objections and Appeals

Marginal note:Right to institute proceedings or apply for extensions

  •  (1) Subject to this section, where

    • (a) a vendor of goods has made an application under section 68.2 in respect of the sale of the goods and the application was rejected in whole or in part by the Minister, or

    • (b) a vendor of goods has not paid tax in respect of the sale of the goods

      • (i) on the basis that the tax was not payable by virtue of subsection 23(6), (7), (8) or (8.1) or 50(5), or

      • (ii) on the basis that the goods were sold in circumstances that, by virtue of the nature of the purchaser of the goods or the use to which the goods were to be put or by virtue of both such nature and use, rendered the sale exempt from tax under subsection 51(1)

      and subsequently the vendor was assessed tax by the Minister in respect of the sale and has recovered the amount of that tax, or a part thereof, from the purchaser of the goods,

    the purchaser of the goods may, in substitution for the vendor and in the purchaser’s own name as if he were the vendor, institute proceedings under any of sections 81.15, 81.17, 81.19, 81.2, 81.21, 81.22, 81.23 or 81.24 in respect of the rejection or assessment or apply for an extension, under section 81.32, of the time limited for instituting any such proceedings.

  • Marginal note:Condition precedent

    (2) A purchaser may institute proceedings or apply for an extension of the time limited for instituting proceedings pursuant to subsection (1) only if

    • (a) the vendor has unconditionally assigned to the purchaser in the prescribed form his rights, if any,

      • (i) to institute proceedings under sections 81.15, 81.17, 81.19, 81.2, 81.21, 81.22, 81.23 or 81.24,

      • (ii) to make an application under section 81.32, and

      • (iii) to receive a payment pursuant to section 81.16, 81.18 or 81.38

      in respect of the sale and the Minister is served with a true copy of the assignment in accordance with subsection (3);

    • (b) the vendor has not, within the time limited for instituting the proceedings, instituted the proceedings or applied for an extension, under section 81.32, of that time; or

    • (c) the proceedings are an appeal arising from proceedings previously instituted by the purchaser pursuant to subsection (1).

  • Marginal note:Service

    (3) Service of a true copy of an assignment on the Minister shall be effected, by prepaid mail addressed to the Minister at Ottawa, within the time limited for instituting the proceedings to which the assignment relates.

  • Marginal note:Acceptance of other service

    (4) The Minister may accept a true copy of an assignment notwithstanding that it was not served by prepaid mail addressed to the Minister at Ottawa.

  • Marginal note:Deemed extension

    (5) For the purpose of permitting a purchaser to institute proceedings or apply for an extension of the time limited for instituting proceedings pursuant to subsection (1) in the circumstances described in paragraph (2)(b), the time limited for instituting the proceedings is deemed to be extended by thirty days.

  • Marginal note:Purchaser stands in place of vendor

    (6) Proceedings and applications under subsection (1) shall be dealt with in all respects as if the purchaser were the vendor and any amounts found, on the conclusion of the proceedings, to be payable under subsection 81.16(1), 81.18(1) or 81.38(1) shall be paid to the purchaser and not to the vendor.

  • Marginal note:Exception

    (7) Where a vendor applies for an extension, under section 81.32, of the time limited for instituting any proceedings after the time has expired, the purchaser may not institute the proceedings or apply for an extension of the time limited for instituting the proceedings pursuant to subsection (1).

  • Marginal note:Preclusion

    (8) Where a purchaser institutes proceedings or applies for an extension of the time limited for instituting proceedings pursuant to subsection (1), the vendor may not apply for an extension, under section 81.32, of the time limited for instituting the proceedings or, in the case described in paragraph (1)(a), make a further application under section 68.2 in respect of the sale.

  • Marginal note:Intervention

    (9) Notwithstanding section 81.34, a vendor of goods may intervene in any proceedings or application for extension of the time limited for instituting proceedings instituted by a purchaser of the goods pursuant to subsection (1), as a party to the proceedings or application.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 7 (2nd Supp.), s. 38

Interventions

Marginal note:Interventions

  •  (1) On application, the Tribunal or Federal Court may make an order permitting any person to intervene in an appeal or a reference to it under this Part as a party thereto, if it is satisfied that the applicant has a substantial and direct interest in the subject-matter of the appeal or reference.

  • Marginal note:Assistance

    (2) On application, the Tribunal or Federal Court may make an order permitting any person to render assistance to it by way of argument in an appeal or a reference to it under this Part, but such person shall not be added as a party thereto.

  • Marginal note:Terms

    (3) The Tribunal or Federal Court may impose such terms and conditions as it deems appropriate in connection with an order under this section.

  • Marginal note:Procedure

    (4) An application under subsection (1) shall be made by filing a notice of the application with the Tribunal or Court, as the case may be, and serving a copy of the notice on the parties to the appeal or reference at least fourteen days before the application is returnable.

  • Marginal note:Matters considered

    (5) The Tribunal or Court, in any application under this section, shall consider the possibility of undue delay or prejudice or any other matter that it deems appropriate in exercising its discretion pursuant to this section.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52
  • 2002, c. 8, s. 183

 [Repealed, R.S., 1985, c. 47 (4th Supp.), s. 52]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 7 (2nd Supp.), s. 38, c. 47 (4th Supp.), s. 52

References

Marginal note:Reference to Federal Court

  •  (1) The Minister may refer any question of law, fact or mixed law and fact relating to this Act to the Federal Court for hearing and determination.

  • Marginal note:Contents of reference

    (2) A reference under subsection (1) shall set out

    • (a) the question to be determined;

    • (b) the names of any specific persons that the Minister seeks to have bound by the determination; and

    • (c) the facts and arguments on which the Minister intends to rely at the hearing.

  • Marginal note:Service

    (3) A copy of a reference under subsection (1) shall be served by the Minister on the persons, if any, named in the reference pursuant to subsection (2) and on such other persons as, in the opinion of the Court, are likely to be affected by the determination of the question set out in the reference.

  • Marginal note:Notice

    (4) Where a reference under subsection (1) is made to the Court and the Court is of the opinion that persons, other than those named in the reference pursuant to subsection (2), are likely to be affected by the determination of the question set out in the reference but that the identity of those persons is not known or readily ascertainable, the Court may direct that notice of the reference be given in such manner as it considers will most likely come to the attention of those other persons.

  • Marginal note:Suspension of time limitations

    (5) The period beginning on the day the Minister institutes proceedings in the Court pursuant to subsection (1) to have a question determined and ending on the day the question is finally determined shall not be counted in determining

    • (a) the time limited by subsection 81.15(1) or 81.17(1) for serving a notice of objection by any person who is served with a copy of the reference pursuant to subsection (3) or who appears as a party at the hearing to determine the question;

    • (b) the time limited by section 81.19, 81.2 or 81.24 for instituting an appeal by any person referred to in paragraph (a); or

    • (c) the time limited by section 82 for commencing proceedings to recover any tax, penalty, interest or other sum payable under this Act by any person referred to in paragraph (a).

  • Marginal note:Final and binding

    (6) A determination of the Federal Court under this section is, subject to an appeal, final and binding on any person who is served with a copy of the reference pursuant to subsection (3) or who appears as a party at the hearing to determine the question.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 7 (2nd Supp.), s. 38
  • 2002, c. 8, s. 183
 
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