Employment Insurance Act (S.C. 1996, c. 23)

Act current to 2019-05-22 and last amended on 2019-03-17. Previous Versions

PART VII.1Benefits For Self-Employed Persons (continued)

Self-employed Earnings and Collection of Premiums (continued)

Marginal note:Estimate to be made

 Every self-employed person required by section 152.22 to file a return of their self-employed earnings must, in the return, estimate the amount of the premium to be paid in respect of those earnings.

  • 2009, c. 33, s. 16

Marginal note:Examination of return and notice of assessment

 The Minister of National Revenue must, with all due dispatch, examine each return of self-employed earnings and assess the premium to be paid for the year in respect of those earnings and the interest and penalties, if any, payable, and, after the examination, send a notice of assessment to the person who filed the return.

  • 2009, c. 33, s. 16

Marginal note:Payment of premium

  •  (1) A self-employed person shall, on or before their balance-due day for the year, pay to the Receiver General the whole amount of the premium if they are not required by section 155 or 156 of the Income Tax Act to pay instalments for that year in respect of their income tax.

  • Marginal note:Farmers

    (2) Every self-employed person to whom section 155 of the Income Tax Act applies, other than a person to whom subsection (1) applies, shall pay to the Receiver General on or before December 31 in each year, two thirds of the following amounts:

    • (a) the premium required to be paid by the person for the year in respect of the person’s self-employed earnings, as estimated by the person; or

    • (b) the premium required in respect of the person’s self-employed earnings for the preceding year.

    In addition, the person shall pay to the Receiver General, on or before the person’s balance-due day for the year, the remainder of the premium as estimated under section 152.23. However, paragraphs (a) and (b) do not require the payment of any amount in respect of the person that would otherwise become due after the death of the person.

  • Marginal note:Other persons

    (3) Every self-employed person, other than a person to whom subsection (1) or (2) applies, shall pay to the Receiver General in respect of each year

    • (a) on or before March 15, June 15, September 15 and December 15 in the year, an amount equal to one quarter of

      • (i) the premium required to be paid by the person for the year in respect of the person’s self-employed earnings, as estimated by the person, or

      • (ii) the premium required in respect of the person’s self-employed earnings for the preceding year; or

    • (b) on or before

      • (i) March 15 and June 15 in the year, an amount equal to one quarter of the premium required in respect of the person’s self-employed earnings for the second preceding year, and

      • (ii) September 15 and December 15 in the year, an amount equal to one half of the amount, if any, by which

        • (A) the premium required in respect of the person’s self-employed earnings for the preceding year

        exceeds

        • (B) one half of the premium required in respect of the person’s self-employed earnings for the second preceding year.

    In addition, the person shall pay to the Receiver General, on or before the person’s balance-due day for the year, the remainder of the premium as estimated under section 152.23. However, paragraphs (a) and (b) do not require the payment of any amount in respect of the person that would otherwise become due after the death of the person.

  • 2009, c. 33, s. 16

Marginal note:Interest on unpaid premium

  •  (1) If the amount paid by a self-employed person on or before the person’s balance-due day for a year on account of the premium required to be paid by the person for the year in respect of the person’s self-employed earnings is less than the amount of the premium so required to be paid, the self-employed person shall pay to the Receiver General interest, at a rate per year prescribed by regulation made under subsection (5), on the difference between those amounts from the balance-due day for the year to the day of payment.

  • Marginal note:Interest on instalments

    (2) In addition to any interest payable under subsection (1), if a self-employed person, being required by section 152.25 to pay a part or instalment of a premium, has failed to pay all or any part of a premium as required, the person shall, on payment of the amount the person failed so to pay, pay to the Receiver General interest on the amount, at a rate per year prescribed by regulation made under subsection (5), from the day on or before which the person was required to make the payment to the day of payment or the beginning of the period in respect of which the person is liable to pay interest on the amount under subsection (1), whichever is earlier.

  • Marginal note:Farmers

    (3) For the purposes of subsection (2), if a self-employed person is required by subsection 152.25(2) to pay a part or instalment of a premium in respect of their self-employed earnings, the person is deemed to have been liable to pay on or before the day referred to in that subsection a part or instalment computed by reference to whichever of the following that gives rise to the least amount required to be paid by the person on or before that day:

    • (a) the premium required to be paid by them for the year in respect of their self-employed earnings;

    • (b) the premium required in respect of their self-employed earnings for the preceding year; or

    • (c) the amount stated to be the amount of the instalment payable by them for the year in the notice, if any, sent to them by the Minister of National Revenue.

  • Marginal note:Other persons

    (4) For the purposes of subsection (2), if a self-employed person is required by subsection 152.25(3) to pay a part or instalment of a premium in respect of their self-employed earnings, the person is deemed to have been liable to pay on or before each day referred to in that subsection a part or instalment computed by reference to whichever of the following that gives rise to the least total amount of those parts or instalments required to be paid by them by that day:

    • (a) the premium required to be paid by them for the year in respect of their self-employed earnings;

    • (b) the amounts determined under paragraph 152.25(3)(b) in respect of them for the year;

    • (c) the amounts stated to be the amounts of instalment payable by them for the year in the notices, if any, sent to them by the Minister of National Revenue; or

    • (d) the premium required in respect of their self-employed earnings for the preceding year.

  • Marginal note:Regulations

    (5) The Minister of National Revenue may, with the approval of the Governor in Council, make regulations, prescribing a rate for the purposes of each of subsections (1) and (2).

  • 2009, c. 33, s. 16

Marginal note:Failure to file a return

  •  (1) Every self-employed person who fails to file a return of their self-employed earnings for a year as and when required by section 152.22 is liable to a penalty of five per cent of the part of the amount of the premium required to be paid by them for the year that remained unpaid at the expiry of the time the return was required to be filed, except that, if that person is liable to a penalty under subsection 162(1) or (2) of the Income Tax Act in respect of the year, the Minister of National Revenue may reduce the penalty to which the person is liable under this section or may remit the penalty in whole or in part.

  • Marginal note:Failure

    (2) Every person who fails to file a return as required by subsection 152.22(3) is liable to a penalty of $5 for each day of default, to a maximum of $50.

  • 2009, c. 33, s. 16

Marginal note:Application of Income Tax Act

  •  (1) Subject to this Part and except as otherwise provided by regulation made under subsection (2), the provisions of Divisions I and J of Part I of the Income Tax Act with respect to payment of tax, assessments, objections to assessments, appeals, interest, penalties and excess refunds, and the provisions of Part XV of that Act (except section 221) and subsections 248(7) and (11) of that Act apply, with any modifications that the circumstances require, in relation to any amount paid or payable as or on account of the premium for a year in respect of self-employed earnings as though that amount were an amount paid or payable as or on account of tax under that Act.

  • Marginal note:Regulations

    (2) The Minister of National Revenue may, with the approval of the Governor in Council, make regulations

    • (a) exempting any provision of Divisions I and J of Part I of the Income Tax Act from the application of subsection (1); or

    • (b) specifying that any provisions of either of those Divisions apply with the modifications specified in the regulations.

  • 2009, c. 33, s. 16
 
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