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

Act current to 2017-11-20 and last amended on 2017-07-01. Previous Versions

Marginal note:Compound interest
  •  (1) Interest computed at a prescribed rate and any penalty computed at a rate per year under any provision of this Part shall be compounded daily.

  • Marginal note:Idem

    (2) Where, on any day, both penalty computed at a rate per year and interest are required to be compounded, they shall, on that day, be compounded together at a single rate equal to the total of the penalty rate and the interest rate as though both the penalty and interest were interest computed at that single rate.

  • Marginal note:Application of interest

    (3) Where an amendment to this Part, or an amendment or an enactment that relates to this Part,

    • (a) applies to a person who did something or to or for whom something was done,

    • (b) applies to property or a service that was supplied or in respect of which something was done,

    • (c) applies to an event or a transaction that occurred,

    • (d) applies to a period all or part of which is, or

    • (e) comes into force on a particular day that is,

    before the day the amendment or enactment is assented to or promulgated, for the purposes of applying the provisions of this Part that relate to or that provide for the payment, or the liability for payment, of interest in respect of any amount, the amount shall be determined and interest shall be computed thereon as though the amendment or enactment had been assented to or promulgated before the thing was done, the supply was made, the occurrence of the event or transaction, the beginning of the period or the particular day, as the case may be.

  • Marginal note:Exception

    (4) Subsection (3) does not apply for the purposes of computing any penalties under this Part.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 1993, c. 27, s. 11.
Marginal note:Negative amounts

 Except as specifically otherwise provided, where an amount or a number is required under this Part to be determined or calculated by or in accordance with an algebraic formula, if the amount or number when so determined or calculated would, but for this section, be a negative amount or number, it shall be deemed to be nil.

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

Relationships, Associations, Separate Persons and Residence

Marginal note:Arm’s length
  •  (1) For the purposes of this Part, related persons shall be deemed not to deal with each other at arm’s length and it is a question of fact whether persons not related to each other were, at any particular time, dealing with each other at arm’s length.

  • Marginal note:Related persons

    (2) Persons are related to each other for the purposes of this Part if, by reason of subsections 251(2) to (6) of the Income Tax Act, they are related to each other for the purposes of that Act.

  • Marginal note:Idem

    (3) For the purposes of this Part, a member of a partnership shall be deemed to be related to the partnership.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12.
Marginal note:Associated persons
  •  (1) A particular corporation is associated with another corporation for the purposes of this Part if, by reason of subsections 256(1) to (6) of the Income Tax Act, the particular corporation is associated with the other corporation for the purposes of that Act.

  • Marginal note:Idem

    (2) A person other than a corporation is associated with a particular corporation for the purposes of this Part if the particular corporation is controlled by the person or by a group of persons of which the person is a member and each of whom is associated with each of the others.

  • Marginal note:Idem

    (3) For the purposes of this Part, a person is associated with

    • (a) a partnership if the total of the shares of the profits of the partnership to which the person and all other persons who are associated with the person are entitled is more than half of the total profits of the partnership, or would be more than half of the total profits of the partnership if it had profits; and

    • (b) a trust if the total of the values of the interests in the trust of the person and all other persons who are associated with the person is more than half of the total value of all interests in the trust.

  • Marginal note:Idem

    (4) For the purposes of this Part, a person is associated with another person if each of them is associated with the same third person.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12.
Marginal note:Closely related corporation
  •  (1) For the purposes of this Part, a particular corporation and another corporation are closely related to each other at any time if at that time

    • (a) qualifying voting control in respect of the other corporation is held by, and not less than 90% of the value and number of the issued and outstanding shares, having full voting rights under all circumstances, of the capital stock of the other corporation are owned by,

      • (i) the particular corporation,

      • (ii) a qualifying subsidiary of the particular corporation,

      • (iii) a corporation of which the particular corporation is a qualifying subsidiary,

      • (iv) a qualifying subsidiary of a corporation of which the particular corporation is a qualifying subsidiary, or

      • (v) any combination of the corporations or subsidiaries referred to in subparagraphs (i) to (iv); or

      • (vi) [Repealed, 1993, c. 27, s. 12]

    • (b) the other corporation is a prescribed corporation in relation to the particular corporation.

  • Marginal note:Qualifying voting control

    (1.1) For the purposes of this Part, a person or a group of persons holds qualifying voting control in respect of a corporation at any time if at that time

    • (a) the person, or the members of the group collectively, as the case may be, own shares of the corporation to which are attached not less than 90% of the shareholder votes that may be cast in respect of each matter, other than a matter

      • (i) for which a statute of a country, or of a state, province, or other political subdivision of a country, that applies to the corporation provides, in respect of the vote of the shareholders of the corporation on the matter, that

        • (A) any shareholder of the corporation has voting rights that are different from the voting rights that the shareholder would otherwise have under the letters patent, instrument of continuance or other constating instrument by which the corporation was incorporated or continued, including any amendment to, or restatement of, the constating instrument, or

        • (B) holders of a class or series of shares of the corporation are entitled to vote separately as a class or series, or

      • (ii) that is a prescribed matter or a matter that meets prescribed conditions or arises in prescribed circumstances; or

    • (b) the person or group, as the case may be, is a prescribed person or group in relation to the corporation.

  • Marginal note:Corporations closely related to the same corporation

    (2) If under subsection (1) two corporations are closely related to the same corporation, they are closely related to each other for the purposes of this Part.

  • Marginal note:Investment funds

    (3) For the purposes of this section, an investment fund that is a member of a mutual insurance group is deemed to be a corporation.

  • Marginal note:Voting right controlled by another person

    (4) For the purposes of subsection (1.1), a particular person is deemed not to own a share at a particular time if

    • (a) another person has a right under a contract, in equity or otherwise, either immediately or in the future and either absolutely or contingently, to control the voting rights attached to the share, unless the right is not exercisable at the particular time because its exercise is contingent on the death, bankruptcy or permanent disability of an individual; and

    • (b) the other person is not closely related to the particular person at the particular time.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending Acts. 1990, c. 45, s. 12;
  • 1993, c. 27, s. 12;
  • 2007, c. 18, s. 3;
  • 2016, c. 12, s. 90.
 
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