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

General

Marginal note:Prepaid amounts

• 20.2 (1) For greater certainty, amounts collected as described in paragraph 20(1)(b) shall be deemed to be sums payable under this Act.

• Marginal note:Records and books of account

  (2) Each licensed air carrier that is required to make a return of the amounts described in paragraph 20(1)(b) shall keep records and books of account in such form and containing such information as will enable the amount of tax or other sums that have been paid to or collected by the carrier or the carrier’s agent to be determined and, for the purposes of this subsection, subsections 98(2.01), (2.1) and (3) and 100(2) apply, with such modifications as the circumstances require, as if the records and books of account were required to be kept by the carrier pursuant to subsection 98(1).

Marginal note:Regulations

21 The Governor in Council may by regulation

• (a) prescribe, for those cases where the amount charged for transportation by air includes the transportation of persons and goods by air, the manner in which and by whom the amount charged shall be apportioned between the transportation by air of those persons and the transportation by air of those goods, for the purposes of the tax imposed under sections 10 to 12;

• (b) prescribe, for those cases where the amount charged for transportation of a person by air provides him with transportation and other services or goods, the manner in which and by whom the amount charged shall be apportioned between the transportation by air of that person and the provision of the other services and goods, for the purposes of the tax imposed under sections 10 to 12;

• (c) prescribe the manner and form in which and the class of persons to whom evidence of prepayment of any tax imposed under this Part shall be submitted;

• (c.1) prescribe the manner and form in which evidence of an amount paid or payable for transportation of a person by air shall be submitted;

• (d) exempt from the operation of this Part the transportation of a person by air on any classes or groups of air services, air carriers or aircraft;

• (e) reduce the amount of the tax paid or payable in Canada under this Part in respect of transportation of a person by air, or remove that tax, for the reduction or avoidance of double taxation by Canada and a foreign country in respect of that transportation;

• (f) vary the requirements of section 20 with respect to returns and the time of remitting for licensed air carriers who are authorized by the Canadian Transportation Agency to operate international charter flights from Canada, or exempt those carriers from the provisions of that section with respect to returns, subject to such terms and conditions as the Governor in Council considers to be in the public interest;

• (g) prescribe, in cases where an air carrier provides transportation of a person by air on credit, the time when and the place where the amount payable for that transportation is deemed to be paid or payable for the purposes of this Part; and

• (h) provide generally for the carrying out of the provisions of this Part.

PART II.1Telecommunication Programming Services Tax

Interpretation

Marginal note:Definitions

• 21.1 (1) In this Part,

  amount charged

  amount charged, in respect of a taxable service, means any amount paid or payable by a person for the taxable service, before any amount paid or payable in respect of any tax under this Part or imposed under an Act of the legislature of a province respecting retail sales tax is added thereto; (montant exigé)

  broadcasting

  broadcasting means any radiocommunication in which the transmissions are intended for direct reception by the general public; (radiodiffusion)

  licensee

  licensee means any person to whom a licence has been issued under section 21.18 and includes any person who is required by section 21.17 to apply for a licence; (titulaire de licence ou titulaire)

  programming service

  programming service means any presentation of sound or visual matter of a nature or kind broadcast by radio or television stations that is designed to inform, enlighten or entertain; (service de programmation)

  small undertaking

  small undertaking means

  • (a) a person who provides a taxable service exclusively in a place to which admission is granted to persons for the purpose of the presentation to those persons of a programming service by means of telecommunication on payment of a charge or fee through the sale of a ticket or any similar means of admission, or

  • (b) a person who, in any month, provides a taxable service to not more than two hundred persons, but does not include a person who, in any month in the year preceding that month, has provided a taxable service to more than two hundred persons; (entreprise restreinte)

  taxable service

  taxable service means

  • (a) the provision, by means of telecommunication, to the general public or any portion thereof, of any programming service,

  • (b) the commencement or cessation of the provision of a programming service referred to in paragraph (a),

  • (c) the provision of any instrument, device, equipment or apparatus or any part thereof, other than a television receiver, that is

    • (i) used in conjunction with the reception of a programming service referred to in paragraph (a), and

    • (ii) provided by the person providing the programming service or by any person authorized or designated by him for the purpose or acting on his behalf or by any person related to him,

    if the person providing the programming service requires that the instrument, device, equipment, apparatus or part be acquired exclusively from him or any other person referred to in subparagraph (ii), and

  • (d) the installation, disconnection, replacement, repair or maintenance of any instrument, device, equipment or apparatus or any part thereof, other than a television receiver, referred to in paragraph (c), by the person providing the programming service in conjunction with which it is being used or by any other person referred to in subparagraph (c)(ii),

  but does not include

  • (e) any surveillance or monitoring service, telebanking or teleshopping service or opinion-polling service,

  • (f) any background music service of a nature or kind that is provided in a shopping centre, an office building, a factory or a common area of a condominium or of an apartment building as an accompaniment to shopping, dining, working or other similar activities carried on in such place, or

  • (g) any other service prescribed by regulations made pursuant to section 21.2,

  that a person providing a programming service referred to in paragraph (a) provides for an additional fee or charge on the request of the person to whom the programming service is provided or that is provided by a person who does not provide a programming service referred to in paragraph (a); (service taxable)

  telecommunication

  telecommunication[Repealed, R.S., 1985, c. 12 (4th Supp.), s. 7]

• (2) [Repealed, R.S., 1985, c. 12 (4th Supp.), s. 7]

• Marginal note:Small undertaking resident in Canada

  (3) For the purposes of this Part, subsections 250(3) and (4) of the Income Tax Act apply in respect of the interpretation of the expression “small undertaking resident in Canada”.

• Marginal note:Presumption

  (4) For the purposes of this Part, where a small undertaking within the meaning of paragraph (a) of the definition small undertaking in subsection (1) acquires a taxable service from a person, other than a licensee or a small undertaking resident in Canada, and provides the taxable service to other persons for amounts charged, the aggregate of the amounts charged is deemed

  • (a) to be equal to the amount charged by the person from whom the small undertaking acquired the service; and

  • (b) to have been paid at the end of the month in which the service was acquired from the person referred to in paragraph (a).

• Marginal note:Computation

  (5) For the purposes of paragraph (b) of the definition small undertaking in subsection (1), the number of persons to whom a person provides a taxable service in a month shall be computed as the aggregate of the number of

  • (a) persons, in this subsection referred to as “customers”, to whom he, or a person related to him, provides the service in that month for an amount charged; and

  • (b) persons to whom customers provide the service in that month, whether or not for an amount charged.

Application to Crown

Marginal note:Binding on the Crown

21.11 This Part binds Her Majesty in right of Canada or a province.

Imposition and Payment of Tax

Marginal note:Imposition of tax

21.12 There shall be imposed, levied and collected a tax at the rate of eleven per cent on the amount charged for a taxable service, payable by the person providing the service at the time the amount charged is paid or payable, whichever is the earlier.

Marginal note:Relief from tax for licensee

• 21.13 (1) No tax is payable under section 21.12 in respect of a taxable service provided to a licensee

  • (a) who,

    • (i) in the case of a service described in paragraph (a), (b), (c) or (d) of the definition taxable service in subsection 21.1(1), is acquiring the service for broadcasting without charge or for provision to another person for an amount charged or broadcasting without charge, or

    • (ii) in the case of a service described in paragraph (b), (c) or (d) of that definition, is acquiring the service for use in conjunction with a service referred to in subparagraph (i) that is acquired by the licensee for a use described in that subparagraph; and

  • (b) who, at the time the amount charged for the service is paid or payable, whichever is the earlier, so certifies, and gives his licence number, to the person providing the service.

• Marginal note:Relief from tax for other persons

  (2) No tax is payable under section 21.12 in respect of a taxable service provided to a person, other than a licensee,

  • (a) who,

    • (i) in the case of a service described in paragraph (a) of the definition taxable service in subsection 21.1(1), is acquiring the service for broadcasting without charge or for provision to another person for broadcasting without charge, or

    • (ii) in the case of a service described in paragraph (b), (c) or (d) of that definition, is acquiring the service for use in conjunction with a service referred to in subparagraph (i) that is acquired by the licensee for a use described in that subparagraph; and

  • (b) who, at the time the amount charged for the service is paid or payable, whichever is the earlier, so certifies to the person providing the service.

• Marginal note:Relief from tax for small undertaking

  (3) No tax is payable under section 21.12 in respect of a taxable service provided by a small undertaking, other than a taxable service that

  • (a) is provided by a small undertaking within the meaning of paragraph (a) of the definition small undertaking in subsection 21.1(1); and

  • (b) was acquired by the small undertaking from another person, other than a licensee or a small undertaking resident in Canada.

Determination of Amount Charged in Certain Circumstances

Marginal note:Where service provided to non-arm’s length person

• 21.14 (1) Where a licensee has provided a taxable service to a person with whom the licensee was not dealing at arm’s length at the time of the provision for no amount charged or for an amount charged that was less than the amount charged (in this subsection referred to as the “reasonable charge”) that would have been reasonable in the circumstances if the service had been provided to a person with whom the licensee was dealing at arm’s length, for the purposes of this Part, the licensee shall be deemed to have provided the taxable service to that person for an amount charged equal to the reasonable charge for the service and, where there was no amount charged, the amount charged shall be deemed to be payable at the end of the month in which the service was provided.

• Marginal note:Where service provided under certain circumstances

  (2) Subject to subsection (1), where a licensee has provided a taxable service to a person and the amount charged for the service cannot be ascertained, for the purposes of this Part, the licensee shall be deemed to have provided the taxable service to that person for an amount charged equal to the amount that is reasonable in the circumstances.

Security

Marginal note:Security

• 21.15 (1) A small undertaking that proposes to provide a taxable service in respect of which tax is or will be imposed by section 21.12 shall, if required by the Minister, provide security in accordance with subsection (2) for payment of the tax.

• Marginal note:Amount and form of security

  (2) The security to be provided by a small undertaking pursuant to subsection (1) shall

  • (a) be provided within the time fixed by the Minister, but not later than the day immediately preceding the day on which provision of the taxable service commences;

  • (b) be in an amount of not less than six per cent of

    • (i) the aggregate of the amounts charged for that taxable service by the person from whom the small undertaking acquired the service, or

    • (ii) where the aggregate of the amounts charged for that taxable service by the person from whom the small undertaking acquired the service cannot be determined prior to the commencement of the service by the small undertaking, the aggregate of the amounts that, in accordance with the agreement between the small undertaking and that other person, are paid or payable by the small undertaking for the service, computed as of seven days prior to the commencement of the service or such later day as may be fixed by the Minister; and

  • (c) be provided by a chartered bank or by depositing with the Minister

    • (i) a bond, acceptable to the Minister, of an incorporated guarantee company authorized to do business in Canada, or

    • (ii) a bond or other security of or guaranteed by the Government of Canada.

• Marginal note:Cancellation of bond

  (3) Notwithstanding that a bond of a guarantee company given under this section has been cancelled, the bond shall be deemed to remain in force in relation to taxable services provided or to be provided for an amount charged at the time of cancellation until all liabilities to pay amounts on account of tax, penalties, interest or other amounts in relation to such taxable services are discharged.