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:Definitions
  •  (1) In this section,

    cumulative amount

    montant cumulatif

    cumulative amount for a reporting period of a registrant means the total of

    • (a) the amount that would be the registrant’s net tax for the period if it were determined without reference to subsection (4) and if no input tax credits were claimed, and no amounts were deducted, in determining that net tax, and

    • (b) the amount required under subsection (4) to be added in determining the net tax for the period; (montant cumulatif)

    designated reporting period

    période désignée

    designated reporting period of a person means a reporting period of the person in respect of which a designation under subsection (2) is in effect, but does not include a reporting period in which the person ceases to be a registrant. (période désignée)

  • Marginal note:Designation by Minister

    (2) The Minister may, on the application of a registrant and by notice in writing, designate, as an eligible reporting period for the purposes of this section, a particular reporting period (other than a fiscal year) of the registrant specified in the application and ending in a fiscal year of the registrant if

    • (a) the Minister is satisfied that it can reasonably be expected that the cumulative amount for the particular reporting period will not exceed $1000;

    • (b) the registrant’s application in respect of the particular reporting period is made in prescribed form, contains prescribed information and is filed with the Minister in prescribed manner before the beginning of the particular reporting period; and

    • (c) at the time the application is made,

      • (i) no designation under this subsection of a reporting period of the registrant ending in the fiscal year has been revoked,

      • (ii) all amounts required under this Part to be remitted before that time by the registrant in respect of reporting periods of the registrant or supplies of real property made to the registrant and all amounts payable under this Part before that time by the registrant as penalty, interest, an instalment of tax or a repayment in respect of reporting periods of the registrant have been remitted or paid,

      • (iii) all amounts required under this Act (other than this Part), the Customs Act, the Customs Tariff, the Excise Act, the Excise Act, 2001, the Income Tax Act, sections 21 and 33 of the Canada Pension Plan and section 82 and Part VII of the Employment Insurance Act to be remitted or paid before that time by the registrant have been remitted or paid, and

      • (iv) all returns required under this Part to be filed with the Minister before that time by the registrant have been filed.

  • Marginal note:No return

    (3) Subject to section 282, a registrant is not required to file a return under section 238 for a designated reporting period of the registrant if the cumulative amount for the period does not exceed $1000.

  • Marginal note:Determination of net tax

    (4) Where the cumulative amount for a designated reporting period of a registrant does not exceed $1000, that amount

    • (a) shall be added in determining the registrant’s net tax for the reporting period of the registrant immediately following the designated reporting period; and

    • (b) notwithstanding any other provision of this Part, shall not be included in determining the registrant’s net tax for the designated reporting period.

  • Marginal note:Revocation by Minister

    (5) Where the Minister has made a designation under subsection (2) in respect of a reporting period of a registrant and

    • (a) the condition described in paragraph (2)(a) is no longer met in respect of the period, or

    • (b) the conditions described in paragraph (2)(c) would not be met if an application for such a designation were made at the beginning of the period,

    the Minister may revoke the designation.

  • Marginal note:Notice of revocation

    (6) Where, under subsection (5), the Minister revokes a designation of a reporting period of a registrant, the Minister shall send a notice in writing of the revocation to the registrant.

  • Marginal note:Automatic revocation

    (7) Where

    • (a) a registrant files, or is required to file, a return under section 238 or 282 for a designated reporting period of the registrant ending in a fiscal year of the registrant, or

    • (b) the Minister revokes a designation of a reporting period of a registrant ending in a fiscal year of the registrant,

    the designations under subsection (2) of all subsequent reporting periods of the registrant ending in the fiscal year are revoked.

  • Marginal note:Filing deadlines

    (8) In this Part (other than this section), any reference to the day on or before which a person is required to file a return shall, where the person is, because of subsection (3), not required to file the return, be read as a reference to the day on or before which the person would, but for that subsection, be required to file the return.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1994, c. 9, s. 16;
  • 1996, c. 23, s. 170;
  • 2002, c. 22, s. 388.
Marginal note:Authority for separate returns
  •  (1) A registrant who engages in one or more commercial activities in separate branches or divisions may file with the Minister in prescribed manner an application, in prescribed form containing prescribed information, for authority to file separate returns under this Division in respect of a branch or division specified in the application.

  • Marginal note:Authorization by Minister

    (2) Where the Minister receives an application under subsection (1) in respect of a branch or division of a registrant and is satisfied that

    • (a) the branch or division can be separately identified by reference to the location thereof or the nature of the activities engaged in by it, and

    • (b) separate records, books of account and accounting systems are maintained in respect of the branch or division,

    the Minister may, in writing, authorize the registrant to file separate returns in relation to the specified branch or division, subject to such conditions as the Minister may at any time impose.

  • Marginal note:Revocation of authorization

    (3) The Minister may, in writing, revoke an authorization granted under subsection (2) where

    • (a) the registrant fails to comply with any condition attached thereto or any provision of this Part;

    • (b) the Minister considers that the authorization is no longer required for the purposes for which it was originally granted, or generally for the purposes of this Part;

    • (c) the Minister is no longer satisfied that the requirements of paragraphs (2)(a) and (b) in respect of the registrant are met; or

    • (d) the registrant, in writing, requests the Minister to revoke the authorization.

  • Marginal note:Notice of revocation

    (4) Where under subsection (3) the Minister revokes an authorization, the Minister shall send a notice in writing of the revocation to the registrant and shall specify therein the effective date thereof.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12.

SUBDIVISION DRegistration

Marginal note:Registration required
  •  (1) Every person who makes a taxable supply in Canada in the course of a commercial activity engaged in by the person in Canada is required to be registered for the purposes of this Part, except where

    • (a) the person is a small supplier;

    • (b) the only commercial activity of the person is the making of supplies of real property by way of sale otherwise than in the course of a business; or

    • (c) the person is a non-resident person who does not carry on any business in Canada.

  • Marginal note:Taxi business

    (1.1) Notwithstanding subsection (1), every small supplier who carries on a taxi business is required to be registered for the purposes of this Part in respect of that business.

  • Marginal note:Prescribed selected listed financial institutions

    (1.2) Every selected listed financial institution that is prescribed is required to be registered for the purposes of this Part.

  • Marginal note:Group registration of selected listed financial institutions

    (1.3) The following rules apply in respect of a prescribed group of selected listed financial institutions:

    • (a) the group is required to be registered for the purposes of this Part;

    • (b) a person that is prescribed in respect of the group must apply to the Minister for registration of the group before the day that is prescribed;

    • (c) each member of the group is deemed to be a registrant for the purposes of this Part; and

    • (d) despite subsections (1) to (1.2), each member of the group is not required to be separately registered.

  • Marginal note:Additional member of group

    (1.4) If a selected listed financial institution becomes, on a particular day, a member of an existing group that is required to be registered for the purposes of this Part or that is registered under this Subdivision, the following rules apply:

    • (a) if the group is required to be registered, the application for the registration of the group under paragraph (1.3)(b) must list the financial institution as a member of the group;

    • (b) if the group is registered, the financial institution or the person that is prescribed in respect of the group for the purpose of paragraph (1.3)(b) must, before the day that is 30 days after the particular day, apply to the Minister to add the financial institution to the registration of the group;

    • (c) the financial institution is deemed to be a registrant for the purposes of this Part as of the particular day; and

    • (d) despite subsections (1) to (1.2), the financial institution is not required to be separately registered as of the particular day.

  • Marginal note:Non-resident performers, etc.

    (2) Every person who enters Canada for the purpose of making taxable supplies of admissions in respect of a place of amusement, a seminar, an activity or an event is required to be registered for the purposes of this Part and shall, before making any such supply, apply to the Minister for registration.

  • Marginal note:Application

    (2.1) A person required under any of subsections (1) to (1.2) to be registered must apply to the Minister for registration before the day that is 30 days after

    • (a) in the case of a person required under subsection (1.1) to be registered in respect of a taxi business, the day the person first makes a taxable supply in Canada in the course of that business;

    • (a.1) in the case of a selected listed financial institution required under subsection (1.2) to be registered, the day that is prescribed; and

    • (b) in any other case, the day the person first makes a taxable supply in Canada, otherwise than as a small supplier, in the course of a commercial activity engaged in by the person in Canada.

  • Marginal note:Registration permitted

    (3) An application for registration for the purposes of this Part may be made to the Minister by any person that is not required under subsection (1), (1.1), (1.2), (2) or (4) to be registered, that is not required to be included in, or added to, the registration of a group under subsection (1.3) or (1.4) and that

    • (a) is engaged in a commercial activity in Canada;

    • (b) is a non-resident person who in the ordinary course of carrying on business outside Canada

      • (i) regularly solicits orders for the supply by the person of tangible personal property for export to, or delivery in, Canada, or

      • (ii) has entered into an agreement for the supply by the person of

        • (A) services to be performed in Canada, or

        • (B) intangible personal property to be used in Canada or that relates to

          • (I) real property situated in Canada,

          • (II) tangible personal property ordinarily situated in Canada, or

          • (III) services to be performed in Canada;

    • (c) is a listed financial institution resident in Canada;

    • (d) is a particular corporation resident in Canada

      • (i) that owns shares of the capital stock of, or holds indebtedness of, any other corporation that is related to the particular corporation, or

      • (ii) that is acquiring, or proposes to acquire, all or substantially all of the issued and outstanding shares of the capital stock of another corporation, having full voting rights under all circumstances,

      where all or substantially all of the property of the other corporation is, for the purposes of section 186, property that was last acquired or imported by the other corporation for consumption, use or supply exclusively in the course of its commercial activities;

    • (e) is the recipient of a qualifying supply (as defined in subsection 167.11(1)), or of a supply that would be a qualifying supply if the recipient were a registrant, and the recipient files an election referred to in subsection 167.11(2) with the Minister in respect of the qualifying supply before the particular day that is referred to in paragraph 167.11(7)(a); or

    • (f) a corporation that would be a temporary member, as defined in subsection 156(1), in the absence of paragraph (a) of that definition.

  • Marginal note:Extended registration permitted for taxi business

    (3.1) Where a person who is a small supplier carrying on a taxi business files with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to have the registration of the person apply in respect of all commercial activities engaged in by the person in Canada, the Minister may approve the request and shall thereupon notify the person in writing of the date from which the registration so applies.

  • Marginal note:Suppliers of prescribed property

    (4) Every person (other than a small supplier), whether or not resident in Canada, who, in Canada, whether through an employee or agent or by means of advertising directed at the Canadian market, solicits orders for the supply by the person of, or offers to supply, property that is prescribed property for the purposes of section 143.1 and that is to be sent by mail or courier to the recipient at an address in Canada

    • (a) shall be deemed, for the purposes of this Part, to be carrying on business in Canada; and

    • (b) is required to be registered for the purposes of this Part.

  • Marginal note:Form and contents of application

    (5) An application for registration, or an application to be added to the registration of a group, is to be filed with the Minister in prescribed manner and is to be made in prescribed form containing prescribed information.

  • Marginal note:Security

    (6) Every person who

    • (a) is not resident in Canada or would not, but for subsection 132(2), be resident in Canada,

    • (b) does not have a permanent establishment in Canada or would not, but for paragraph (b) of the definition permanent establishment in subsection 123(1), have such an establishment, and

    • (c) applies or is required to be registered for the purposes of this Part

    shall give and thereafter maintain security, in an amount and a form satisfactory to the Minister, that the person will pay or remit all amounts payable or remittable by the person under this Part.

  • Marginal note:Failure to comply

    (7) Where, at any time, a person referred to in subsection (6) fails to give or maintain, as required under that subsection, security in an amount satisfactory to the Minister, the Minister may retain as security, out of any amount that may be or may become payable under this Part to the person, an amount not exceeding the amount by which

    • (a) the amount of security that would, at that time, be satisfactory to the Minister if it were given by the person in accordance with that subsection

    exceeds

    • (b) the amount of security, if any, given and maintained by the person in accordance with that subsection,

    and the amount so retained is deemed

    • (c) to have been paid, at that time, by the Minister to the person, and

    • (d) to have been given, immediately after that time, by the person as security in accordance with subsection (6).

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 1993, c. 27, s. 100;
  • 1997, c. 10, ss. 54, 218;
  • 2007, c. 18, s. 33;
  • 2012, c. 31, s. 82.
 
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