Excise Tax Act

Marginal note:Net tax

• 225 (1) Subject to this Subdivision, the net tax for a particular reporting period of a person is the positive or negative amount determined by the formula

  A - B

  where

  A

  is the total of

  • (a) all amounts that became collectible and all other amounts collected by the person in the particular reporting period as or on account of tax under Division II, and

  • (b) all amounts that are required under this Part to be added in determining the net tax of the person for the particular reporting period; and

  B

  is the total of

  • (a) all amounts each of which is an input tax credit for the particular reporting period or a preceding reporting period of the person claimed by the person in the return under this Division filed by the person for the particular reporting period, and

  • (b) all amounts each of which is an amount that may be deducted by the person under this Part in determining the net tax of the person for the particular reporting period and that is claimed by the person in the return under this Division filed by the person for the particular reporting period.

• Marginal note:Restriction

  (2) An amount shall not be included in the total for A in the formula set out in subsection (1) for a reporting period of a person to the extent that that amount was included in that total for a preceding reporting period of the person.

• Marginal note:Restriction

  (3) An amount shall not be included in the total for B in the formula set out in subsection (1) for a particular reporting period of a person to the extent that the amount was claimed or included as an input tax credit or deduction in determining the net tax for a preceding reporting period of the person unless

  • (a) the person was not entitled to claim the amount in determining the net tax for the preceding period only because the person did not satisfy the requirements of subsection 169(4) in respect of the amount before the return for that preceding period was filed; and

  • (b) where the person is claiming the amount in a return for the particular reporting period and the Minister has not disallowed the amount as an input tax credit in assessing the net tax of the person for that preceding reporting period,

    • (i) the person reports in writing to the Minister, at or before the time the return for the particular reporting period is filed, that the person made an error in claiming that amount in determining the net tax of the person for that preceding period, and

    • (ii) if the person does not report the error to the Minister at least three months before the time limited by subsection 298(1) for assessing the net tax of the person for that preceding period expires, the person pays, at or before the time the return for the particular reporting period is filed, the amount and any applicable interest to the Receiver General.

• Marginal note:Restriction

  (3.1) An amount shall not be included in the total for B in the formula set out in subsection (1) for a reporting period of a person to the extent that, before the end of the period, the amount

  • (a) is included in an adjustment, refund or credit for which a credit note referred to in subsection 232(3) has been received by the person or a debit note referred to in that subsection has been issued by the person; or

  • (b) was otherwise rebated, refunded or remitted to the person, or was otherwise recovered by the person, under this or any other Act of Parliament.

• Marginal note:Limitation

  (4) An input tax credit of a person for a particular reporting period of the person shall not be claimed by the person unless it is claimed in a return under this Division filed by the person on or before the day that is

  • (a) where the person is a specified person during the particular reporting period,

    • (i) if the input tax credit is in respect of property or a service supplied to the person by a supplier who did not, before the end of the particular reporting period, charge the tax in respect of the supply that became payable during the particular reporting period and the person pays that tax after the end of the particular reporting period and before the input tax credit is claimed, the earlier of

      • (A) the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within two years after the end of the person’s fiscal year in which the supplier charges that tax to the person, and

      • (B) the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within four years after the end of the particular reporting period,

    • (ii) if the input tax credit was claimed in a return under this Division filed, on or before the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within two years after the end of the person’s fiscal year that includes the particular reporting period, by another person who was not entitled to claim it and the person has paid the tax payable in respect of the acquisition or importation of the property or service, the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within four years after the end of the particular reporting period, and

    • (iii) in any other case, the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within two years after the end of the person’s fiscal year that includes the particular reporting period;

  • (b) where the person is not a specified person during the particular reporting period, the day on or before which the return under this Division is required to be filed for the last reporting period of the person that ends within four years after the end of the particular reporting period; or

  • (c) where

    • (i) the input tax credit is in respect of property or a service supplied to the person by a supplier who did not, before the end of the last reporting period of the person that ends within four years after the end of the particular reporting period, charge the tax in respect of the supply that became payable during the particular reporting period and the supplier discloses in writing to the person that the Minister has assessed the supplier for that tax, and

    • (ii) the person pays that tax after the end of that last reporting period and before the input tax credit is claimed by the person,

    the day on or before which the return under this Division is required to be filed for the reporting period of the person in which the person pays that tax.

• Meaning of specified person

  (4.1) For the purposes of subsection (4), a person is a specified person during a reporting period of the person if

  • (a) the person is a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) during the reporting period, or

  • (b) the person’s threshold amounts, determined in accordance with subsection 249(1), exceed $6 million for both the particular fiscal year of the person that includes the reporting period and the person’s previous fiscal year,

  unless, in the case of a person who is not a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x) during the reporting period, the person is a charity during the reporting period or all or substantially all of the supplies made by the person during either of the person’s two fiscal years immediately preceding the particular fiscal year (other than supplies of financial services) are taxable supplies.

• Marginal note:Idem

  (5) Where a registrant makes an exempt supply by way of sale of a residential complex, the registrant shall not claim an input tax credit in respect of

  • (a) the last acquisition by the registrant of the complex, or

  • (b) an improvement to the complex acquired, imported or brought into a participating province by the registrant after the complex was last acquired by the registrant,

  in a return filed on or after the day the registrant transfers ownership or possession of the complex to the recipient of the supply.

• Marginal note:Idem

  (6) Where a trustee is appointed under the Bankruptcy and Insolvency Act to act in the administration of the estate of a registrant who is a bankrupt,

  • (a) the total of all input tax credits claimed, and all amounts deducted, in a return filed after the appointment for a reporting period of the registrant ending before the appointment shall not exceed the total of

    • (i) the amount that would be the net tax for the period if no input tax credits were claimed, and no amounts were deducted, in determining the net tax for that period, and

    • (ii) all amounts required under this Part to be remitted by the registrant in respect of reporting periods ending before that period and all amounts payable under this Part by the registrant as penalty, interest, an instalment of tax or a repayment in respect of those reporting periods, and

  • (b) an input tax credit, or an amount that may be deducted in determining net tax, for a reporting period of the registrant ending before the appointment shall not be claimed or deducted in a return for a reporting period of the registrant ending after the appointment,

  unless, on or before the day that return is filed, all returns required under this Part to be filed for, or in respect of acquisitions of real property made in, reporting periods of the registrant ending before the appointment have been filed and all amounts required under this Part to be remitted by the registrant in respect of those reporting periods and all amounts payable under this Part by the registrant as penalty, interest, an instalment of tax or a repayment in respect of those reporting periods have been remitted or paid, as the case may be.