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

Marginal note:Diversions

• 21.16 (1) Where, pursuant to subsection 21.13(1) or (2), a taxable service is relieved from tax by reason of the use for which the service is acquired, in this section referred to as the “relieved use”, and that service is subsequently diverted

  • (a) by the person who acquired the service for the relieved use, or

  • (b) where the person referred to in paragraph (a) acquired the service for provision to another person for broadcasting without charge, by that other person,

  to any other use or purpose in respect of which the service would not, at the time of the acquisition of the service for the relieved use, be so relieved, the person who diverted the service and the person who provided the service to him are, from the time of the diversion, jointly and severally liable to pay tax under this Part in respect of the amount charged for the service.

• Marginal note:Tax payable

  (2) The tax payable pursuant to subsection (1) is payable at the time the service is diverted and shall be computed as the amount of tax that would have been payable at the time of the acquisition of the service for the relieved use had the service not been so relieved.

Marginal note:Application for licence

• 21.17 (1) Subject to this section, every person who is providing a taxable service for an amount charged on the coming into force of this Part shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which this Part comes into force.

• Marginal note:Idem

  (2) Subject to this section, every person who commences to provide, on or after the coming into force of this Part, a taxable service for an amount charged shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which that person commences to provide the service.

• Marginal note:Exemption

  (3) Subsections (1) and (2) do not apply to a small undertaking.

• Marginal note:Exemption lifted

  (4) Every person providing a taxable service for an amount charged who ceases to be a small undertaking shall make an application in the prescribed form to the Minister for a licence for the purposes of this Part not later than the last day of the first month immediately following the month in which that person ceases to be a small undertaking.

Marginal note:Issue of licence

21.18 The Minister may issue a licence for the purposes of this Part to any person applying therefor under section 21.17.