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

Act current to 2017-07-03 and last amended on 2017-07-01. Previous Versions

Marginal note:First and second variant years
  •  (1) For the purposes of this section, a fiscal year of a network seller in respect of which an approval granted under 178(5) is in effect is

    • (a) the first variant year of the network seller if the network seller

      • (i) fails to meet the condition referred to in paragraph 178(2)(c) in respect of the fiscal year, and

      • (ii) meets the condition referred to in paragraph 178(2)(c) for each fiscal year of the network seller, in respect of which an approval granted under 178(5) is in effect, preceding the fiscal year; and

    • (b) the second variant year of the network seller if

      • (i) the fiscal year is after the first variant year of the network seller,

      • (ii) the network seller fails to meet the condition referred to in paragraph 178(2)(c) in respect of the fiscal year, and

      • (iii) the network seller meets the condition referred to in paragraph 178(2)(c) for each fiscal year (other than the first variant year) of the network seller, in respect of which an approval granted under 178(5) is in effect, preceding the fiscal year.

  • Marginal note:Adjustment by network seller if conditions not met

    (2) Subject to subsections (3) and (4), if a network seller fails to satisfy any condition referred to in paragraphs 178(2)(a) to (c) for a fiscal year of the network seller in respect of which an approval granted under subsection 178(5) is in effect and, at any time during the fiscal year, a network commission would, if this Part were read without reference to subsection 178(7), become payable by the network seller to a sales representative of the network seller as consideration for a taxable supply (other than a zero-rated supply) made in Canada by the sales representative, the network seller shall, in determining the net tax for the first reporting period of the network seller following the fiscal year, add an amount equal to interest, at the prescribed rate, on the total amount of tax that would be payable in respect of the taxable supply if tax were payable in respect of the taxable supply, computed for the period beginning on the earliest day on which consideration for the taxable supply is paid or becomes due and ending on the day on or before which the network seller is required to file a return for the reporting period that includes that earliest day.

  • Marginal note:No adjustment for first variant year

    (3) In determining the net tax for the first reporting period of a network seller following the first variant year of the network seller, the network seller is not required to add an amount in accordance with subsection (2) if

    • (a) the network seller satisfies the conditions referred to in paragraphs 178(2)(a) and (b) for the first variant year and for each fiscal year, in respect of which an approval granted under subsection 178(5) is in effect, preceding the first variant year; and

    • (b) the network seller would meet the condition referred to in paragraph 178(2)(c) for the first variant year if the reference in that paragraph to “all or substantially all” were read as a reference to “at least 80%”.

  • Marginal note:No adjustment for second variant year

    (4) In determining the net tax for the first reporting period of the network seller following the second variant year of the network seller, the network seller is not required to add an amount in accordance with subsection (2) if

    • (a) the network seller satisfies the conditions referred to in paragraphs 178(2)(a) and (b) for the second variant year and for each fiscal year, in respect of which an approval granted under subsection 178(5) is in effect, preceding the second variant year;

    • (b) the network seller would meet the condition referred to in paragraph 178(2)(c) for each of the first variant year and the second variant year if the reference in that paragraph to “all or substantially all” were read as a reference to “at least 80%”; and

    • (c) within 180 days after the beginning of the second variant year, the network seller requests in writing that the Minister revoke the approval.

  • Marginal note:Adjustment by network seller due to notification failure

    (5) If, at any time after an approval granted under subsection 178(5) in respect of a network seller and each of its sales representatives ceases to have effect as a consequence of a revocation under subsection 178(11) or (12), a network commission would, if this Part were read without reference to subsection 178(7), become payable as consideration for a taxable supply (other than a zero-rated supply) made in Canada by a sales representative of the network seller that has not been notified, as required under paragraph 178(13)(b), of the revocation and an amount is not charged or collected as, or on account of, tax in respect of the taxable supply, the network seller shall, in determining the net tax for the particular reporting period of the network seller that includes the earliest day on which consideration for the taxable supply is paid or becomes due, add an amount equal to interest, at the prescribed rate, on the total amount of tax that would be payable in respect of the taxable supply if tax were payable in respect of the taxable supply, computed for the period beginning on that earliest day and ending on the day on or before which the network seller is required to file a return for the particular reporting period.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 2010, c. 12, s. 72.
Marginal note:Instalments
  •  (1) Where the reporting period of a registrant is a fiscal year or a period determined under subsection 248(3), the registrant shall, within one month after the end of each fiscal quarter of the registrant ending in the reporting period, pay to the Receiver General an instalment equal to

    • (a) except where paragraph (b) applies, 1/4 of the registrant’s instalment base for that reporting period; or

    • (b) the amount determined under subsection (5).

  • Marginal note:Instalment base

    (2) A registrant’s instalment base for a particular reporting period of the registrant is the lesser of

    • (a) an amount equal to

      • (i) in the case of a reporting period determined under subsection 248(3), the amount determined by the formula

        A × (365/B)

        where

        A
        is the net tax for the particular reporting period, and
        B
        is the number of days in the particular reporting period, and
      • (ii) in any other case, the net tax for the particular reporting period, and

    • (b) the amount determined by the formula

      C × (365/D)

      where

      C
      is the total of all amounts each of which is the net tax for a reporting period of the registrant ending in the twelve month period immediately preceding the particular reporting period, and
      D
      is the number of days in the period commencing on the first day of the first of those preceding reporting periods and ending on the last day of the last of those preceding reporting periods.
  • Marginal note:Minimum instalment base

    (3) For the purposes of subsection (1), if a registrant’s instalment base for a reporting period is less than $3,000, it is deemed to be nil.

  • (4) [Repealed, 1993, c. 27, s. 98]

  • Marginal note:Selected listed financial institution — Instalments in first fiscal year

    (5) For the purposes of subsection (1), where a person becomes a selected listed financial institution during a reporting period of the person that begins on or after April 1, 1997, the instalment to be paid within one month after the end of each fiscal quarter in the reporting period is

    • (a) where the fiscal quarter is the first fiscal quarter in the reporting period, 1/4 of the amount determined under subsection (2); and

    • (b) in any other case, the lesser of

      • (i) 1/4 of the amount determined under paragraph (2)(a), and

      • (ii) the amount determined by the formula

        A + B

        where

        A
        is 1/4 of the financial institution’s instalment base for the reporting period determined under paragraph (2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1, and
        B
        is the total of all amounts, each of which is determined, for a participating province, by the formula

        C × D

        where

        C
        is the amount determined for A in this subparagraph, and
        D
        is the financial institution’s percentage for the participating province for the immediately preceding fiscal quarter, determined in accordance with the prescribed rules that apply to that financial institution.
  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 1993, c. 27, s. 98;
  • 1997, c. 10, s. 216;
  • 2007, c. 35, s. 5.

SUBDIVISION CReturns

Marginal note:Filing required
  •  (1) Every registrant shall file a return with the Minister for each reporting period of the registrant

    • (a) where the registrant’s reporting period is or would, in the absence of subsection 251(1), be the fiscal year,

      • (i) if the registrant is a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x), within six months after the end of the year,

      • (ii) if subparagraph (i) does not apply, the registrant is an individual, the fiscal year is a calendar year and, for the purposes of the Income Tax Act, the individual carried on a business in the year and the filing-due date of the individual for the year is June 15 of the following year, on or before that day, and

      • (iii) in any other case, within three months after the end of the year; and

    • (b) in every other case, within one month after the end of the reporting period of the registrant.

  • Marginal note:Idem

    (2) Every person who is not a registrant shall file a return with the Minister for each reporting period of the person for which net tax is remittable by the person within one month after the end of the reporting period.

  • Marginal note:Filing by certain selected listed financial institutions

    (2.1) Despite paragraph (1)(b) and subsection (2), if a selected listed financial institution’s reporting period is a fiscal month or fiscal quarter, the financial institution shall

    • (a) file an interim return for the period with the Minister within one month after the end of the period; and

    • (b) file a final return for the period with the Minister within six months after the end of the fiscal year in which the period ends.

  • Marginal note:Non-resident performers, etc.

    (3) Notwithstanding subsection (1), where, in a reporting period of a non-resident person, the person makes a taxable supply in Canada of an admission in respect of a place of amusement, a seminar, an activity or an event, the person shall

    • (a) file with the Minister a return for that period on or before the earlier of

      • (i) the day on or before which a return for that period is required to be filed under subsection (1), and

      • (ii) the day the person, or one or more employees of the person who are involved in the commercial activity in which the supply was made, leaves Canada; and

    • (b) on or before that earlier day, remit all amounts that became collectible, and all other amounts collected by the person, in the period as or on an account of tax under Division II.

  • Marginal note:Form and content

    (4) Every return under this Subdivision shall be made in prescribed form containing prescribed information and shall be filed in prescribed manner.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 1993, c. 27, s. 99;
  • 1994, c. 9, s. 15;
  • 1996, c. 21, s. 66;
  • 1997, c. 10, s. 217;
  • 2010, c. 12, s. 73.
 
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