Income Tax Act

Marginal note:Collection restrictions

• 225.1 (1) If a taxpayer is liable for the payment of an amount assessed under this Act, other than an amount assessed under subsection 152(4.2), 169(3) or 220(3.1), the Minister shall not, until after the collection-commencement day in respect of the amount, do any of the following for the purpose of collecting the amount:

  • (a) commence legal proceedings in a court,

  • (b) certify the amount under section 223,

  • (c) require a person to make a payment under subsection 224(1),

  • (d) require an institution or a person to make a payment under subsection 224(1.1),

  • (e) [Repealed, 2006, c. 4, s. 166]

  • (f) require a person to turn over moneys under subsection 224.3(1), or

  • (g) give a notice, issue a certificate or make a direction under subsection 225(1).

• Marginal note:Collection-commencement day

  (1.1) The collection-commencement day in respect of an amount is

  • (a) in the case of an amount assessed under subsection 188(1.1) in respect of a notice of intention to revoke given under subsection 168(1) or any of subsections 149.1(2) to (4.1), one year after the day on which the notice was mailed;

  • (b) in the case of an amount assessed under section 188.1, one year after the day on which the notice of assessment was sent;

  • (b.1) in the case of an amount payable under any of subsections 211.92(2) to (5), in respect of the day on which the notice of assessment is sent,

    • (i) for one-fifth of the amount, one year after that day,

    • (ii) for two-fifths of the amount, two years after that day,

    • (iii) for three-fifths of the amount, three years after that day,

    • (iv) for four-fifths of the amount, four years after that day, and

    • (v) for the entire amount, five years after that day; and

  • (c) in any other case, 90 days after the day on which the notice of assessment was sent.

• Marginal note:No action by Minister

  (2) If a taxpayer has served a notice of objection under this Act to an assessment of an amount payable under this Act, the Minister shall not, for the purpose of collecting the amount in controversy, take any of the actions described in paragraphs (1)(a) to (g) until after the day that is 90 days after the day on which notice is sent to the taxpayer that the Minister has confirmed or varied the assessment.

• Marginal note:Idem

  (3) Where a taxpayer has appealed from an assessment of an amount payable under this Act to the Tax Court of Canada, the Minister shall not, for the purpose of collecting the amount in controversy, take any of the actions described in paragraphs (1)(a) to (g) before the day of mailing of a copy of the decision of the Court to the taxpayer or the day on which the taxpayer discontinues the appeal, whichever is the earlier.

• Marginal note:Idem

  (4) Where a taxpayer has agreed under subsection 173(1) that a question should be determined by the Tax Court of Canada, or where a taxpayer is served with a copy of an application made under subsection 174(1) to that Court for the determination of a question, the Minister shall not take any of the actions described in paragraphs (1)(a) to (g) for the purpose of collecting that part of an amount assessed, the liability for payment of which will be affected by the determination of the question, before the day on which the question is determined by the Court.

• Marginal note:Idem

  (5) Notwithstanding any other provision in this section, where a taxpayer has served a notice of objection under this Act to an assessment or has appealed to the Tax Court of Canada from an assessment and agrees in writing with the Minister to delay proceedings on the objection or appeal, as the case may be, until judgment has been given in another action before the Tax Court of Canada, the Federal Court of Appeal or the Supreme Court of Canada in which the issue is the same or substantially the same as that raised in the objection or appeal of the taxpayer, the Minister may take any of the actions described in paragraphs (1)(a) to (g) for the purpose of collecting the amount assessed, or a part thereof, determined in a manner consistent with the decision or judgment of the Court in the other action at any time after the Minister notifies the taxpayer in writing that

  • (a) the decision of the Tax Court of Canada in that action has been mailed to the Minister,

  • (b) judgment has been pronounced by the Federal Court of Appeal in that action, or

  • (c) judgment has been delivered by the Supreme Court of Canada in that action,

  as the case may be.

• Marginal note:Where ss. (1) to (4) do not apply

  (6) Subsections (1) to (4) do not apply with respect to

  • (a) an amount payable under Part VIII;

  • (a.1) an amount payable under section 281;

  • (b) an amount required to be deducted or withheld, and required to be remitted or paid, under this Act or the Regulations;

  • (c) an amount of tax required to be paid under section 116 or a regulation made under subsection 215(4) but not so paid;

  • (d) the amount of any penalty payable for failure to remit or pay an amount referred to in paragraph (b) or (c) as and when required by this Act or a regulation made under this Act; and

  • (e) any interest payable under a provision of this Act on an amount referred to in this paragraph or any of paragraphs (a) to (d).

• Marginal note:One-half collection

  (7) If an amount has been assessed under this Act in respect of a corporation for a taxation year in which it was a large corporation, or in respect of a particular amount claimed under section 110.1 or 118.1 where the particular amount was claimed in respect of a tax shelter, then subsections (1) to (4) do not limit any action of the Minister to collect

  • (a) at any time on or before the particular day that is 90 days after the day of the sending of the notice of assessment, 1/2 of the amount so assessed; and

  • (b) at any time after the particular day, the amount, if any, by which the amount so assessed exceeds the total of

    • (i) all amounts collected before that time with respect to the assessment, and

    • (ii) 1/2 of the amount in controversy at that time.

• Marginal note:Definition of large corporation

  (8) For the purposes of this section and section 235, a corporation (other than a corporation described in subsection 181.1(3)) is a large corporation in a particular taxation year if the total of the taxable capital employed in Canada of the corporation, at the end of the particular taxation year, and the taxable capital employed in Canada of any other corporation, at the end of the other corporation’s last taxation year that ends at or before the end of the particular taxation year, if the other corporation is related (within the meaning assigned for the purposes of section 181.5) to the corporation at the end of the particular taxation year, exceeds $10 million, and, for the purpose of this subsection, a corporation formed as a result of the amalgamation or merger of 2 or more predecessor corporations is deemed to be the same corporation as, and a continuation of, each predecessor corporation.