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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)

Collection

Marginal note:Definitions

  •  (1) The following definitions apply in this section.

    action

    action means an action to collect a tax debt of a person and includes a proceeding in a court and anything done by the Minister under any provision of this Part. (action)

    legal representative

    legal representative of a person means a trustee in bankruptcy, an assignee, a liquidator, a curator, a receiver of any kind, a trustee, an heir, an administrator, an executor, a liquidator of a succession, a committee, or any other like person, administering, winding up, controlling or otherwise dealing in a representative or fiduciary capacity with any property, business, commercial activity or estate that belongs or belonged to, or that is or was held for the benefit of, the person or the person’s estate. (représentant légal)

    tax debt

    tax debt means any amount payable by a person under this Act other than Part IX. (dette fiscale)

  • Marginal note:Debts to Her Majesty

    (1.1) A tax debt is a debt due to Her Majesty in right of Canada and is recoverable as such in the Federal Court or any other court of competent jurisdiction or in any other manner provided under this Part.

  • Marginal note:Court proceedings

    (2) Subject to subsection (3), the Minister may not commence a proceeding in a court to collect a tax debt of a person in respect of an amount that may be assessed under this Part, unless when the proceeding is commenced the person has been or may be assessed for that amount.

  • Marginal note:No actions after limitation period

    (2.1) The Minister may not commence an action to collect a tax debt after the end of the limitation period for the collection of the tax debt.

  • Marginal note:Limitation period

    (2.2) The limitation period for the collection of a tax debt of a person

    • (a) begins

      • (i) if a notice of assessment in respect of the tax debt is sent to or served on the person after March 3, 2004, on the day that is 90 days after the day on which the notice is sent or served,

      • (ii) if no notice referred to in subparagraph (i) in respect of the tax debt was sent or served and the earliest day on which the Minister can commence an action to collect that tax debt is after March 3, 2004, on that earliest day, and

      • (iii) if subparagraphs (i) and (ii) do not apply and the tax debt was payable on March 4, 2004, or would have been payable on that date but for a limitation period that otherwise applied to the collection of the tax debt, on March 4, 2004; and

    • (b) ends, subject to subsection (2.6), on the day that is 10 years after the day on which it begins.

  • Marginal note:Limitation period restarted

    (2.3) The limitation period described in subsection (2.2) for the collection of a tax debt of a person restarts (and ends, subject to subsection (2.6), on the day that is 10 years after the day on which it restarts) on any day, before it would otherwise end, on which

    • (a) the person acknowledges the tax debt in accordance with subsection (2.4);

    • (b) the Minister commences an action to collect the tax debt; or

    • (c) the Minister, under section 81.1, assesses another person in respect of the tax debt.

  • Marginal note:Acknowledgement of tax debts

    (2.4) A person acknowledges a tax debt if the person

    • (a) promises, in writing, to pay the tax debt;

    • (b) makes a written acknowledgement of the tax debt, whether or not a promise to pay can be inferred from the acknowledgement and whether or not it contains a refusal to pay; or

    • (c) makes a payment, including a purported payment by way of a negotiable instrument that is dishonoured, on account of the tax debt.

  • Marginal note:Agent or legal representative

    (2.5) For the purposes of this section, an acknowledgement made by a person’s agent or legal representative has the same effect as if it were made by the person.

  • Marginal note:Extension of limitation period

    (2.6) In computing the day on which a limitation period ends, there shall be added the number of days on which one or more of the following is the case:

    • (a) the Minister may not, because of any of subsections 86(5) to (8), take any of the actions described in subsection 86(4) in respect of the tax debt;

    • (b) the Minister has accepted and holds security in lieu of payment of the tax debt;

    • (c) if the person was resident in Canada on the applicable date described in paragraph (2.2)(a) in respect of the tax debt, the person is non-resident; or

    • (d) an action that the Minister may otherwise take in respect of the tax debt is restricted or not permitted under any provision of the Bankruptcy and Insolvency Act, of the Companies’ Creditors Arrangement Act or of the Farm Debt Mediation Act.

  • Marginal note:Bar to claims

    (2.7) Despite any law of Canada or a province, Her Majesty in right of Canada is not liable for any claim that arises because the Minister collected a tax debt after the end of any limitation period that applied to the collection of the tax debt and before March 4, 2004.

  • Marginal note:Orders after March 3, 2004 and before effect

    (2.8) Despite any order or judgment made after March 3, 2004 that declares a tax debt not to be payable by a person, or that orders the Minister to reimburse to a person a tax debt collected by the Minister, because a limitation period that applied to the collection of the tax debt ended before royal assent to any measure giving effect to this section, the tax debt is deemed to have become payable on March 4, 2004.

  • Marginal note:Exception where misrepresentation or fraud

    (3) Proceedings for the recovery of any tax, penalty, interest or other sum payable under this Act may be commenced in a court at any time if payment thereof was avoided by reason of a misrepresentation attributable to neglect, carelessness or wilful default or by reason of fraud.

  • Marginal note:Recovery of penalties and fines for offence from corporation

    (4) Where a penalty or fine is imposed on a corporation pursuant to a conviction for an offence under this Act and the conviction or a certified copy thereof is produced to the Federal Court, the conviction 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 conviction were a judgment obtained in the Court for a debt of the amount of the penalty or fine and costs, if any, specified in the conviction.

  • Marginal note:Penalties and interest on judgments

    (5) Where a judgment is obtained for any tax, penalty, interest or other sum payable under this Act, including a certificate registered under section 83, the provisions of this Act by virtue of which a penalty or interest is payable for failure to pay or remit the sum apply, with such modifications as the circumstances require, to failure to pay the judgment debt, and the penalty and interest are recoverable in the same manner as the judgment debt.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 82
  • R.S., 1985, c. 7 (2nd Supp.), s. 41
  • 2004, c. 22, s. 48
  • 2010, c. 25, s. 131

Marginal note:Certificate of default

  •  (1) The Minister may certify that any tax, penalty, interest or other sum payable under this Act has not been paid as and when required by this Act.

  • Marginal note:Certificate has effect of judgment

    (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 the Court for a debt of the amount specified in the certificate.

  • Marginal note:Costs

    (3) All reasonable costs and charges attendant on the registration of the certificate are recoverable in the same manner as if they had been certified and the certificate had been registered under this section.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 83
  • R.S., 1985, c. 7 (2nd Supp.), s. 41

Marginal note:Garnishment

  •  (1) Where the Minister has knowledge or suspects that a person is or is about to become liable to make a payment to a tax debtor, the Minister may, by a notice served personally or by registered or certified mail, require that person to pay to the Receiver General, on account of the tax debtor’s liability under this Act, the whole or any part of the moneys that would otherwise, within ninety days after the service of the notice, be paid or become payable to the tax debtor.

  • Marginal note:Application of notice

    (2) Where the Minister has, under subsection (1), required a person to pay to the Receiver General moneys otherwise payable to a tax debtor, the requirement applies in respect of all moneys that are or will become payable by that person to the tax debtor within the ninety day period referred to in that subsection until the tax debtor’s liability under this Act is satisfied.

  • Marginal note:Assignment of book debts

    (3) Where the Minister has knowledge or suspects that a person has received, or is about to receive, an assignment of a book debt or of a negotiable instrument of title to a book debt from a tax debtor, the Minister may, by a notice served personally or by registered or certified mail, require that person to pay to the Receiver General, on account of the tax debtor’s liability under this Act, out of any moneys received by that person on account of the debt within ninety days after service of the notice, an amount equal to the amount of any tax, penalty, interest or other sum payable under this Act in respect of the transaction giving rise to the debt assigned.

  • Marginal note:Failure to comply

    (4) Any person on whom a notice is served under this section shall pay the Receiver General according to the terms thereof and, in default of payment, is liable to pay to Her Majesty an amount equal to the lesser of

    • (a) in the case of a person served under subsection (1),

      • (i) the amount of the tax debtor’s liability under this Act, and

      • (ii) the amount payable to the tax debtor by that person, and

    • (b) in the case of a person served under subsection (3),

      • (i) the amount of any tax, penalty, interest or other sum payable under this Act in respect of the transaction giving rise to the debt assigned to that person, and

      • (ii) the amount received by that person on account of the debt assigned after receipt of the notice.

  • Marginal note:Application of payments

    (5) Any moneys paid by a person under subsection (4) shall, in addition to being applied to that person’s liability under this section, be applied on account of the tax debtor’s liability under this Act.

  • Marginal note:Receipt by Receiver General

    (6) The receipt by the Receiver General of moneys paid as required under this section is a good and sufficient discharge of the liability to the tax debtor to the extent of the amount received.

  • Definition of tax debtor

    (7) In this section, tax debtor means a person by whom any tax, penalty, interest or other sum is payable under this Act.

  • (8) and (9) [Repealed, 2003, c. 15, s. 108]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. E-15, s. 84
  • R.S., 1985, c. 15 (1st Supp.), s. 29, c. 7 (2nd Supp.), ss. 39, 41, c. 42 (2nd Supp.), s. 10, c. 12 (4th Supp.), s. 35
  • 2003, c. 15, s. 108
 
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