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

Marginal note:Monthly return of taxes

• 20. (1) Every licensed air carrier that is required by this Part to collect tax shall make each month a true return, in the prescribed form and containing the prescribed information including statistical information relating to any tax not collected by the licensed air carrier during that period by reason of the prepayment thereof, of

  • (a) all amounts collected or collectible by the carrier by way of the tax imposed by this Part in the last preceding month; and

  • (b) all amounts collected, within or outside Canada by the carrier or the carrier’s agent in the last preceding month,

    • (i) by way of the tax imposed by this Part on amounts paid or payable outside Canada for the transportation of a person by air, and

    • (ii) before the time that the person is required by subsection 10(2) or 12(2), as the case may be, to pay the tax.

• Marginal note:Nil return

  (2) Every licensed air carrier shall, if no amounts have been collected or are collectible as described in subsection (1) in the last preceding month, make a return as required by that subsection stating that fact.

• Marginal note:Cessation of obligation

  (2.1) No return is required under subsection (2) if the last preceding month is a month after October 31, 1998.

• Marginal note:Alternate periods for making returns

  (3) Notwithstanding subsections (1) and (2), the Minister may, by regulation,

  • (a) authorize any licensed air carrier to make a return in respect of any accounting period of not less than twenty-one days and not more than thirty-five days;

  • (b) authorize any licensed air carrier to make a return in respect of any period longer than one month but not longer than six months, if the amounts collected or collectible by the carrier by way of the tax imposed by this Part in the last preceding calendar year did not exceed four thousand eight hundred dollars; or

  • (c) authorize any licensed air carrier whose passenger air transportation service is predominantly limited to a seasonal period of operation to make a return in respect of any period longer than one month but not longer than six months, if the amounts collected or collectible by the carrier by way of the tax imposed by this Part in the equivalent period in the last preceding calendar year did not exceed an average of four hundred dollars per month throughout that equivalent period.

• Marginal note:Date for filing and remittance

  (4) Subject to subsection (8) and sections 20.1 and 79.2, the return required by this section shall be filed and the taxes that are collected or collectible by a licensed air carrier shall be remitted

  • (a) in a case where the return is required to be made in accordance with subsection (1) or (2), not later than the last day of the first month following the month to which the return relates;

  • (b) in a case where the return is authorized to be made in accordance with a regulation made under paragraph (3)(a), not later than the last day of the first authorized accounting period following the end of the accounting period to which the return relates; and

  • (c) in a case where the return is authorized to be made in accordance with a regulation made under paragraph (3)(b) or (c), not later than the last day of the first month following the end of the period to which the return relates.

• Marginal note:Penalty and interest on default in remitting taxes

  (5) Subject to subsections (6) to (9), a licensed air carrier that defaults in remitting tax within the time prescribed by subsection (4), in addition to the amount in default, shall pay

  • (a) in the case of tax required to be remitted not later than the last day of a month, a penalty of one-half of one per cent and interest at the prescribed rate, in respect of each month or fraction of a month between that day and the day on which the total tax, penalty and interest outstanding is remitted, calculated on the total tax, penalty and interest outstanding in that month or fraction of a month; and

  • (b) in the case of tax required to be remitted not later than the last day of an accounting period, a penalty of one-half of one per cent and interest at the prescribed rate, in respect of each accounting period or fraction of an accounting period between that day and the day on which the total tax, penalty and interest outstanding is remitted, calculated on the total tax, penalty and interest outstanding in that accounting period or fraction of an accounting period.

• Marginal note:Minimum penalty and interest

  (6) No penalty or interest is payable under subsection (5) if the licensed air carrier remits all taxes collected or collectible by the carrier under this Part and, at the time of the remittance, the total penalty and interest payable is less than ten dollars.

• Marginal note:Time for paying penalty or interest

  (7) A licensed air carrier that is liable to pay penalty or interest under subsection (5) shall pay the penalty or interest not later than the last day of the month or accounting period in respect of which the penalty or interest was calculated.

• Marginal note:Extension

  (8) The Minister may, before or after the expiration of the time prescribed by subsection (4), extend in writing the time for filing a return or remitting any tax, and where the Minister so extends the time,

  • (a) the return shall be filed or the tax shall be remitted within the time as so extended;

  • (b) interest accrues under subsection (5) in respect of the tax as if the time had not been so extended;

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

  • (d) penalty accrues under subsection (5) in respect of a default in remitting the tax or any portion thereof within the time as so extended as if the default were a default referred to in that subsection.

• Marginal note:Security

  (9) Where the Minister holds security under section 80.1 for the remittance of any tax under this Part that is not remitted within the time prescribed by subsection (4),

  • (a) interest accrues under subsection (5) in respect of the tax from the expiration of that time; and

  • (b) penalty accrues under subsection (5) only if the total tax, penalty and interest outstanding, as calculated in respect of each month or accounting period or fraction of a month or accounting period during which the default continues, exceeds the value of the security at the time it is accepted by the Minister and, if accruing, the penalty shall be calculated only on the amount of the excess.