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

Full Document:  

Act current to 2022-08-08 and last amended on 2022-06-23. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION VCollection and Remittance of Division II Tax (continued)

SUBDIVISION EFiscal Periods and Reporting Periods (continued)

Reporting Periods

Marginal note:Reporting period of non-registrant

  •  (1) Subject to section 251, the reporting period of a person who is not a registrant is a calendar month.

  • Marginal note:Reporting period of registrant

    (2) Subject to subsection 248(3) and sections 251, 265 to 267 and 322.1, the reporting period of a registrant at a particular time in a fiscal year of the registrant is

    • (a) where

      • (i) the registrant has made an election under section 248 that is effective at that time,

      • (ii) the registrant has not made an election under section 246 or 247 that is effective at that time, an election under section 248 by the registrant would be effective at that time if the registrant had made such an election at the beginning of the fiscal year of the registrant that includes that time and, except where the reporting period of the registrant that includes that time is deemed under subsection 251(1) or any of sections 265 to 267 to be a separate reporting period, the last reporting period of the registrant ending before that time was a fiscal year of the registrant,

      • (iii) the registrant is a charity and has not made an election under section 246 or 247 that is effective at that time, or

      • (iv) the registrant is a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) and has not made an election under section 246 or 247 that is effective at that time,

      the fiscal year of the registrant that includes that time;

    • (b) where

      • (i) the threshold amount of the registrant for the fiscal year or fiscal quarter of the registrant that includes that time exceeds $6,000,000 and the registrant is neither a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) nor a charity,

      • (ii) the last reporting period of the registrant ending before that time was the fiscal month of the registrant and the registrant has not made an election under section 247 or 248 that is effective at that time, or

      • (iii) the registrant has made an election under section 246 that is effective at that time,

      the fiscal month of the registrant that includes that time; and

    • (c) in all other cases, the fiscal quarter of the registrant that includes that time.

    • (d) [Repealed, 1997, c. 10, s. 55]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 105
  • 1994, c. 9, s. 17
  • 1997, c. 10, s. 55
  • 2000, c. 14, s. 35

Marginal note:Election for fiscal months

  •  (1) Any person may make an election to have reporting periods that are fiscal months of the person, to take effect

    • (a) where the person is a registrant, on the first day of a fiscal year of the person; or

    • (b) on the day the person becomes a registrant.

  • Marginal note:Idem

    (2) Where a person has made an election under section 248 and the election ceases to have effect on the beginning of a fiscal quarter of the person specified in paragraph 248(2)(b), the person may make an election, to take effect on the first day of that fiscal quarter, to have reporting periods that are fiscal months of the person.

  • Marginal note:Duration of election

    (3) An election made under this section by a person is to remain in effect until the earlier of

    • (a) the beginning of the day on which an election by the person under section 247 or 248 takes effect, and

    • (b) the day on which a revocation of the election by the person under subsection (4) becomes effective.

  • Marginal note:Revocation of election

    (4) A listed financial institution that has made an election under this section may revoke the election, effective on the first day of a fiscal year of the financial institution, by filing in prescribed manner with the Minister a notice of revocation in prescribed form containing prescribed information not later than the day on which the revocation is to become effective or any later day that the Minister may allow.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 2012, c. 31, s. 86

Marginal note:Election for fiscal quarters

  •  (1) A person that is a charity on the first day of a fiscal year of the person or whose threshold amount for a fiscal year does not exceed $6,000,000 may make an election to have reporting periods that are fiscal quarters of the person, to take effect

    • (a) where the person is a registrant on the first day of that fiscal year, that day; or

    • (b) on the day in that fiscal year that the person becomes a registrant.

  • Marginal note:Duration of election

    (2) An election made under this section by a person shall remain in effect until the earliest of

    • (a) the beginning of the day an election by the person under section 246 or 248 takes effect,

    • (b) where the person is not a charity, the beginning of the first fiscal quarter of the person for which the threshold amount of the person exceeds $6,000,000,

    • (c) where the person is not a charity, the beginning of the first fiscal year of the person for which the threshold amount of the person exceeds $6,000,000, and

    • (d) the day on which a revocation of the election by the person under subsection (3) becomes effective.

  • Marginal note:Revocation of election

    (3) A listed financial institution that has made an election under this section may revoke the election, effective on the first day of a fiscal year of the financial institution, by filing in prescribed manner with the Minister a notice of revocation in prescribed form containing prescribed information not later than the day on which the revocation is to become effective or any later day that the Minister may allow.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1997, c. 10, s. 56
  • 2012, c. 31, s. 87

Marginal note:Election for fiscal years

  •  (1) A registrant that is a charity on the first day of a fiscal year of the registrant or whose threshold amount for a fiscal year does not exceed $1,500,000 may make an election to have reporting periods that are fiscal years of the registrant, to take effect on the first day of that fiscal year.

  • Marginal note:Duration of election

    (2) An election made under this section by a person shall remain in effect until the earliest of

    • (a) the beginning of the day an election by the person under section 246 or 247 takes effect,

    • (b) if the person is not a charity and the threshold amount of the person for the second or third fiscal quarter of the person in a fiscal year of the person exceeds $1,500,000, the beginning of the first fiscal quarter of the person for which the threshold amount exceeds that amount, and

    • (c) if the person is not a charity and the threshold amount of the person for a fiscal year of the person exceeds $1,500,000, the beginning of that fiscal year.

  • Marginal note:New reporting period

    (3) For the purposes of this Part, if a person ceases to have reporting periods that are fiscal years with effect from the beginning of a fiscal month in a fiscal year of the person and that fiscal month is not the first fiscal month in that fiscal year, the period beginning on the first day of that fiscal year and ending immediately before the beginning of that fiscal month is deemed to be a reporting period of the person.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1994, c. 9, s. 18
  • 1997, c. 10, s. 57
  • 2000, c. 30, s. 66
  • 2007, c. 35, s. 6

Marginal note:Threshold amount for fiscal year

  •  (1) For the purposes of sections 245, 247 and 248, the threshold amount of a particular person for a fiscal year of the person is an amount equal to the total of

    • (a) the amount determined by the formula

      A × (365/B)

      where

      A
      is the total of all consideration (other than consideration referred to in section 167.1 that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services, supplies by way of sale of real property that is capital property of the person and supplies included in Part V of Schedule VI) made in Canada by the person that became due to the person in the immediately preceding fiscal year (in this subsection referred to as the “base year”) of the person or that was paid to the person in the base year without having become due, and
      B
      is the number of days in the base year, and
    • (b) the total of all amounts each of which is an amount in respect of a person (in this paragraph referred to as the “associate”) who was associated with the particular person at the end of the particular fiscal year of the associate that is the last such year ending at the same time as, or at any time in, the base year, determined by the formula

      C × (365/D)

      where

      C
      is the total of all consideration (other than consideration referred to in section 167.1 that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services, supplies by way of sale of real property that is capital property of the associate and supplies included in Part V of Schedule VI) made in Canada by the associate that became due to the associate in the particular fiscal year of the associate or that was paid to the associate in that year without having become due, and
      D
      is the number of days in the particular fiscal year of the associate.
  • Marginal note:Threshold amount for fiscal quarter

    (2) For the purposes of sections 245, 247 and 248, the threshold amount of a particular person for a particular fiscal quarter of the person at any time in a fiscal year of the person is an amount equal to the total of

    • (a) the total of all consideration (other than consideration referred to in section 167.1 that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services, supplies by way of sale of real property that is capital property of the person and supplies included in Part V of Schedule VI) made in Canada by the person that became due to the person in the preceding fiscal quarters of the person ending in that year or that was paid to the person in those preceding fiscal quarters without having become due; and

    • (b) the total of all amounts each of which is an amount in respect of a person (in this paragraph referred to as the “associate”) who was associated with the particular person at the beginning of the particular fiscal quarter equal to the total of all consideration (other than consideration referred to in section 167.1 that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services, supplies by way of sale of real property that is capital property of the associate and supplies included in Part V of Schedule VI), made in Canada by the associate that became due to the associate in the fiscal quarters of the associate that end in that fiscal year of the particular person and before the beginning of the particular fiscal quarter or that was paid to the associate in those fiscal quarters of the associate without having become due.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 106
  • 2000, c. 30, s. 67

Marginal note:Form and filing of election

 An election made under section 246, 247 or 248 by a person shall

  • (a) be made in prescribed form containing prescribed information;

  • (b) be filed with the Minister in prescribed manner;

  • (c) specify the first fiscal year in respect of which it applies; and

  • (d) be filed

    • (i) where the election is to take effect on the day the person becomes a registrant, at the time the person applies to be registered under this Part or, where the effective date of the person’s registration is after that time, at any time between that time and that effective date,

    • (ii) where the election is made under section 248 and the reporting period of the person ending immediately before the day the election is to take effect is a fiscal quarter of the person, within three months after that day, and

    • (iii) in all other cases, within two months after the day the election is to take effect.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12

Marginal note:On becoming registrant

  •  (1) For the purposes of this Part, where a person becomes a registrant on a particular day,

    • (a) the period beginning on the first day of the calendar month that includes the particular day and ending on the day immediately preceding the particular day, and

    • (b) the period beginning on the particular day and ending on the last day of the reporting period of the person, otherwise determined under subsection 245(2), that includes the particular day,

    shall each be deemed to be a separate reporting period of the person.

  • Marginal note:On ceasing to be registrant

    (2) For the purposes of this Part, where a person ceases to be a registrant on a particular day,

    • (a) the period beginning on the first day of the reporting period of the person, otherwise determined under subsection 245(2), that includes the particular day and ending on the day immediately preceding the particular day, and

    • (b) the period beginning on the particular day and ending on the last day of the calendar month that includes the particular day,

    shall each be deemed to be a separate reporting period of the person.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12

DIVISION VIRebates

Marginal note:Non-resident rebate in respect of exported goods

  •  (1) If a non-resident person is the recipient of a supply of tangible personal property acquired by the person for use primarily outside Canada, the person is not a consumer of the property, the property is not

    • (a) excisable goods, or

    • (b) [Repealed, 2002, c. 22, s. 389]

    • (c) gasoline, diesel fuel or other motive fuel, other than such fuel that

      • (i) is being transported in a vehicle designed for transporting gasoline, diesel fuel or other motive fuel in bulk, and

      • (ii) is for use otherwise than in the vehicle in which or with which it is being transported,

    • (d) [Repealed, 1997, c. 10, s. 58]

    and the person exports the property within sixty days after it is delivered to the person, the Minister shall, subject to section 252.2, pay a rebate to the person equal to the tax paid by the person in respect of the supply.

  • Marginal note:Rebate for artistic works produced for export

    (2) Where a non-resident person who is not a registrant

    • (a) acquires particular property or a particular service (other than a service of storing or shipping property) for consumption or use exclusively in the manufacture or production of an original literary, musical, artistic, motion picture or other work in which copyright protection subsists and copies, if any, of that work,

    • (b) is not a consumer of the particular property or service, and

    • (c) is manufacturing or producing the work and all copies of it for export by the non-resident person,

    the Minister shall, subject to subsection (3) and section 252.2, pay a rebate to the non-resident person equal to the tax paid by the non-resident person in respect of the acquisition of the particular property or service.

  • Marginal note:Assignment of rebate

    (3) Where the recipient of a supply assigns, in prescribed form containing prescribed information, to the supplier the right to a rebate under subsection (2) to which the recipient would be entitled in respect of the supply if the recipient paid the tax in respect of the supply and satisfied the conditions of section 252.2, and the supplier pays to, or credits in favour of, the recipient the amount of that tax,

    • (a) the supplier may claim a deduction under subsection 234(2) in respect of the supply equal to that amount; and

    • (b) the recipient is not entitled to any rebate, refund or remission of tax in respect of the supply.

  • (4) to (6) [Repealed, 1993, c. 27, s. 107]

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 107
  • 1997, c. 10, s. 58
  • 2002, c. 22, s. 389
  • 2007, c. 29, s. 46
 
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