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

Full Document:  

Act current to 2020-10-05 and last amended on 2020-07-01. Previous Versions

PART IIAir Transportation Tax (continued)

Penalty on Failure to File Return (continued)

Marginal note:Interpretation

  •  (1) For the purposes of this section,

    • (a) a licensed air carrier’s “instalment base”

      • (i) for a month is the lesser of

        • (A) the tax imposed by this Part that was collected or collectible by that carrier in that month, and

        • (B) the tax so collected or collectible in the last preceding month,

      • (ii) for an accounting period is the lesser of

        • (A) the tax imposed by this Part that was collected or collectible by that carrier in that accounting period, and

        • (B) the tax so collected or collectible in the last preceding accounting period, and

      • (iii) for any other period to which a return relates is the lesser of

        • (A) the tax imposed by this Part that was collected or collectible by that carrier in that period, and

        • (B) the tax so collected or collectible in the last preceding period multiplied by the ratio that the number of days in the period to which the return relates is to the number of days in the last preceding period; and

    • (b) a licensed air carrier is a “large taxpayer” at any particular time if

      • (i) the aggregate amount of taxes payable under Parts II.1, III, IV and VI, other than taxes payable in accordance with the Customs Act, and collected or collectible under this Part and Part II.2 by that licensed air carrier in the last preceding calendar year ending at least ninety days, or ninety-one days where that time falls in a leap year, before that time exceeded twelve million dollars, or

      • (ii) the licensed air carrier

        • (A) was, at any time in the last preceding calendar year ending at least ninety days, or ninety-one days where that time falls in a leap year, before that time, a member of a group of associated corporations (within the meaning of section 256 of the Income Tax Act) and the aggregate amount of taxes payable under Parts II.1, III, IV and VI, other than taxes payable in accordance with the Customs Act, and collected or collectible under this Part and Part II.2 by the group in that year exceeded twelve million dollars, and

        • (B) is not, at that time, authorized to make a return in accordance with a regulation made under paragraph 20(3)(b) or (c).

  • Marginal note:Instalment payments by large taxpayers

    (2) A large taxpayer that is required to file a return and remit tax within the time prescribed by subsection 20(4) shall pay instalments on account of the tax in accordance with the following rules:

    • (a) in the case where the return is required to be made in accordance with subsection 20(1), the large taxpayer shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the month in which the tax was collected or became collectible, the first to be paid not later than the last day of that month and the second not later than the fifteenth day of the next following month; and

    • (b) in the case where the return is authorized to be made in accordance with a regulation made under paragraph 20(3)(a), the large taxpayer shall pay two instalments, each equal to one-half of the taxpayer’s instalment base for the accounting period to which the return relates, the first to be paid not later than the last day of that accounting period and the second not later than the fifteenth day of the next following accounting period.

  • Marginal note:Instalment payments by other licensed air carriers

    (3) A licensed air carrier, other than a large taxpayer, that is required to file a return and remit tax within the time prescribed by subsection 20(4) shall pay an instalment on account of the tax in accordance with the following rules:

    • (a) in the case where the return is required to be made in accordance with subsection 20(1), the carrier shall pay an instalment, equal to the carrier’s instalment base for the month in which the tax was collected or became collectible, not later than the twenty-first day of the next following month;

    • (b) in the case where the return is authorized to be made in accordance with a regulation made under paragraph 20(3)(a), the carrier shall pay an instalment, equal to the carrier’s instalment base for the accounting period to which the return relates, not later than the twenty-first day of the next following accounting period; and

    • (c) in the case where the return is authorized to be made in accordance with a regulation made under paragraph 20(3)(b) or (c), the carrier shall pay an instalment, equal to the carrier’s instalment base for the period to which the return relates, not later than the twenty-first day of the month next following the end of that period.

  • Marginal note:Penalty and interest on default by large taxpayer in paying instalment

    (4) Subject to subsections (6) to (8), a large taxpayer that defaults in paying an instalment within the time prescribed by subsection (2) shall, in addition to the amount in default, pay in respect of the period between the end of that time and the end of the time prescribed for remittance of the tax on account of which the instalment was payable

    • (a) in the case of an instalment required to be paid not later than the last day of a month or an accounting period, a penalty of one-half of one per cent and interest at the prescribed rate, calculated on the amount by which

      • (i) one-half of the taxpayer’s instalment base for that month or accounting period

      exceeds

      • (ii) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day; and

    • (b) in the case of an instalment required to be paid not later than the fifteenth day of a month or an accounting period, a penalty of one-quarter of one per cent and interest at one-half of the prescribed rate, calculated on the amount by which

      • (i) one-half of the taxpayer’s instalment base for the last preceding month or accounting period

      exceeds

      • (ii) the amount by which the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day exceeds the lesser of

        • (A) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than the last day of the last preceding month or accounting period, and

        • (B) one-half of the taxpayer’s instalment base for the last preceding month or accounting period.

  • Marginal note:Penalty and interest on default by other licensed air carriers in paying instalment

    (5) Subject to subsections (6) to (8), a licensed air carrier that defaults in paying an instalment within the time prescribed by subsection (3) shall, in addition to the amount in default, pay in respect of the period between the end of that time and the end of the time prescribed for remittance of the tax on account of which the instalment was payable

    • (a) in the case of an instalment required by paragraph (3)(a) or (b) to be paid not later than the twenty-first day of a month or an accounting period, a penalty of one-sixth of one per cent and interest at one-third of the prescribed rate, calculated on the amount by which

      • (i) the carrier’s instalment base for the last preceding month or accounting period

      exceeds

      • (ii) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day; and

    • (b) in the case of an instalment required by paragraph (3)(c) to be paid not later than the twenty-first day of a month next following the end of a period, a penalty of one-sixth of one per cent and interest of one-third of the prescribed rate, calculated on the amount by which

      • (i) the carrier’s instalment base for that period

      exceeds

      • (ii) the aggregate of all taxes on account of which the instalment was payable that were remitted not later than that day.

  • Marginal note:Minimum penalty and interest

    (6) No penalty or interest is payable under subsection (4) or (5) if the large taxpayer or other licensed air carrier liable to pay the instalment remits all taxes collected or collectible by the taxpayer or carrier under this Part and, at the time of the remittance, the total penalty and interest payable in respect of the instalment is less than five dollars and in respect of all those taxes is less than ten dollars.

  • Marginal note:Time for paying penalty or interest

    (7) A large taxpayer or other licensed air carrier that is liable to pay penalty or interest under subsection (4) or (5) in respect of a default in paying an instalment shall pay the penalty or interest within the time prescribed by subsection 20(4) for the remittance of the tax on account of which the instalment is payable.

  • Marginal note:Extension

    (8) The Minister may, before or after the expiration of the time prescribed by subsection (2) or (3), extend in writing the time for paying an instalment, for any period within the time prescribed by subsection 20(4) for the remittance of the tax on account of which the instalment is payable, and where the Minister so extends the time

    • (a) the instalment shall be paid within the time as so extended;

    • (b) interest accrues under subsection (4) or (5), as the case may be, in respect of the instalment as if the time had not been so extended;

    • (c) no penalty accrues or shall be deemed to have accrued under subsection (4) or (5), as the case may be, in respect of the instalment before the expiration of the time as so extended; and

    • (d) penalty accrues under subsection (4) or (5), as the case may be, in respect of a default in paying an instalment within the time as so extended as if the default were a default referred to in that subsection.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • R.S., 1985, c. 12 (4th Supp.), s. 5
  • 1999, c. 31, s. 247(F)
 
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