• 118. (1) Subsection 189(4) of the Act is replaced by the following:

  • Marginal note:Restriction

    (4) A refund shall not be paid until the person has filed with the Minister all returns and other records of which the Minister has knowledge and that are required to be filed under this Act, the Air Travellers Security Charge Act, the Customs Act, the Excise Act, the Excise Tax Act and the Income Tax Act.

• (2) Subsection (1) comes into force on April 1, 2007.

• 119. (1) Section 251 of the Act is replaced by the following:

  Marginal note:Failure to answer demand

  251. Every person who does not file a return as and when required under a demand issued under section 169 is liable to a penalty equal to $250.

  Marginal note:Failure to file return

  251.1 Every person who fails to file a return for a fiscal month as and when required under this Act shall pay a penalty equal to the sum of

  • (a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the fiscal month and was not paid before the end of the day on which the return was required to be filed, and

  • (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on which the return was required to be filed to the day on which the return is filed.

  Marginal note:Dishonoured instruments

  251.2 For the purposes of this Act and section 155.1 of the Financial Administration Act, any charge that becomes payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable under this Act is deemed to be an amount that becomes payable by the person at that time under this Act. In addition, Part II of the Interest and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Act is paid.

• (2) Section 251 of the Act, as enacted by subsection (1), applies in respect of any demand under section 169 of the Act served by the Minister of National Revenue on or after April 1, 2007.

• (3) Section 251.1 of the Act, as enacted by subsection (1), applies

  • (a) in respect of any return that is required to be filed under the Act on or after April 1, 2007; and

  • (b) in respect of any return that is required to be filed under the Act before that day if it is not filed on or before March 31, 2007, in which case the day on or before which the return is required to be filed is deemed to be March 31, 2007 for the purposes of calculating any penalty under that section.

• (4) Section 251.2 of the Act, as enacted by subsection (1), applies in respect of any instrument that is dishonoured on or after April 1, 2007.

• 120. (1) Subsection 254(1) of the Act is replaced by the following:

  Marginal note:Notice of imposed penalty

  • 254. (1) A penalty that a person is liable to pay under any of sections 233 to 253, other than section 251.1, may be imposed by the Minister by serving on the person a written notice of the imposed penalty or by sending the notice by registered or certified mail to the person’s last known address.

• (2) Subsection (1) comes into force on April 1, 2007.

• 121. (1) The Act is amended by adding the following after section 255:

  Marginal note:Waiving or reducing failure to file penalty

  255.1 The Minister may, on or before the day that is ten calendar years after the end of a fiscal month of a person, waive or reduce any penalty payable by the person under section 251.1 in respect of a return for the fiscal month.

• (2) Subsection (1) comes into force on April 1, 2007.

• 122. (1) Paragraph 286(1)(e) of the Act is repealed.

• (2) Subsection (1) comes into force on April 1, 2007.

• 123. (1) Paragraphs 288(12)(a) and (b) of the Act are replaced by the following:

  • (a) to set out, as the amount payable by the debtor, the total of amounts payable by the debtor without setting out the separate amounts making up that total;

  • (b) to refer to the rate of interest to be charged on the separate amounts making up the amount payable in general terms as interest at the prescribed rate under this Act applicable from time to time on amounts payable to the Receiver General, without indicating the specific rates of interest to be charged on each of the separate amounts or to be charged for any period; and

  • (c) to refer to the penalty calculated under section 251.1 to be charged on the separate amounts making up the amount payable in general terms as a penalty under that section on amounts payable to the Receiver General.

• (2) Subsection (1) applies in respect of any certificate made under subsection 288(1) of the Act in respect of amounts that became payable to the Receiver General on or after April 1, 2007.

R.S., c. E-15Excise Tax Act

Marginal note:2003, c. 15, s. 94(1)

• 124. (1) Subsection 7(1) of the Excise Tax Act is replaced by the following:

  Marginal note:Definition

  • 7. (1) In this section, “month” means a period beginning on a particular day in a calendar month and ending on

    • (a) the day immediately before the day in the next calendar month that has the same calendar number as the particular day; or

    • (b) if the next calendar month does not have a day that has the same calendar number as the particular day, the last day of that next calendar month.

  • Marginal note:Failure to file a return when required

    (1.1) Every person who fails to file a return for a period as and when required under subsection 5(1) shall pay a penalty equal to the sum of

    • (a) an amount equal to 1% of the amount of tax unpaid at the expiration of the time for filing the return, and

    • (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from the day on which the return was required to be filed to the day on which the return is filed.

• (2) Subsection (1) comes into force on April 1, 2007.

• (3) For the purposes of subsections 7(1) and (1.1) of the Act, as enacted by subsection (1), a return that is required to be filed before April 1, 2007 and that has not been filed before that day is deemed to be required to be filed on March 31, 2007.

• 125. (1) Section 68.5 of the Act is amended by adding the following after subsection (9):

  • Marginal note:Failure to file a report when required

    (9.1) Every person who fails to file a reconciliation report for a period as and when required under this section shall pay a penalty equal to the sum of

    • (a) an amount equal to 1% of the total of all amounts each of which is an amount that is required to be paid for the period and was not paid before April 1, 2007, and

    • (b) the amount obtained when one quarter of the amount determined under paragraph (a) is multiplied by the number of complete months, not exceeding 12, from that day to the day on which the report is filed.

• (2) Subsection (1) comes into force on April 1, 2007.

• 126. (1) The Act is amended by adding the following after section 76:

  Marginal note:Restriction on refunds and credits

  77. A refund shall not be paid, and a credit shall not be allowed, to a person under this Act until the person has filed with the Minister all returns and other records of which the Minister has knowledge that are required to be filed under the Excise Tax Act, the Excise Act, 2001, the Air Travellers Security Charge Act and the Income Tax Act.

• (2) Subsection (1) comes into force on April 1, 2007.

• 127. (1) Section 79 of the Act is amended by adding the following after subsection (3):

  • Marginal note:Demand for return

    (4) The Minister may, by a demand served personally or by registered or certified mail, require a person to file within any reasonable time that may be stipulated in the demand a return under this Act for any period that may be designated in the demand.

  • Marginal note:Failure to answer a demand

    (5) Every person who fails to file a return as and when required under a demand issued under subsection (4) is liable to a penalty of $250.

• (2) Subsection (1) comes into force on April 1, 2007.

Marginal note:2003, c. 15, s. 100(1)

• 128. (1) Section 79.01 of the Act is repealed.

• (2) Subsection (1) comes into force on April 1, 2007.

Marginal note:2003, c. 15, s. 100(1)

• 129. (1) Subsection 79.02(2) of the Act is replaced by the following:

  • Marginal note:Amounts payable of $2 or less in total

    (2) If, at any time, the total of all amounts payable by the Minister to a person under this Act does not exceed two dollars, the Minister may apply those amounts against any amount owing, at that time, by the person to Her Majesty in right of Canada. However, if the person, at that time, does not owe any amount to Her Majesty in right of Canada, those amounts payable are deemed to be nil.

• (2) Subsection (1) comes into force on April 1, 2007.

Marginal note:2003, c. 15, s. 100(1)

• 130. (1) Subsection 79.03(4) of the Act is replaced by the following:

  • Marginal note:Interest and penalty amounts of $25 or less

    (4) If, at any time, a person pays an amount not less than the total of all amounts, other than interest and penalty under subsection 7(1.1) or 68.5(9.1) or section 95.1, owing at that time to Her Majesty in right of Canada under this Act for a reporting period of the person and the total amount of interest and penalty payable by the person under this Act for that reporting period is not more than $25.00, the Minister may cancel the interest and penalty.

• (2) Subsection (1) applies in respect of any reporting period of a person that ends on or after April 1, 2007.

Marginal note:R.S., c. 12 (4th Supp.), s. 33(1); 2002, c. 22, s. 384(4); 2003, c. 15, ss. 101(1) and (3) and 130(3), (4) and (6)

• 131. (1) Section 79.1 of the Act is repealed.

• (2) Subsection (1) applies to fiscal months that begin after March 31, 2007.

• 132. (1) The Act is amended by adding the following after section 81.39:

  Administrative Charge under the Financial Administration Act

  Marginal note:Dishonoured instruments

  81.4 For the purposes of this Act and section 155.1 of the Financial Administration Act, any charge that becomes payable at any time by a person under the Financial Administration Act in respect of an instrument tendered in payment or settlement of an amount that is payable under this Act is deemed to be an amount that becomes payable by the person at that time under this Act. In addition, Part II of the Interest and Administrative Charges Regulations does not apply to the charge and any debt under subsection 155.1(3) of the Financial Administration Act in respect of the charge is deemed to be extinguished at the time the total of the amount and any applicable interest under this Act is paid.

• (2) Subsection (1) applies in respect of any instrument that is dishonoured on or after April 1, 2007.

Marginal note:R.S., c. 7 (2nd Supp.), s. 41(1)

• 133. (1) Subsection 86(4) of the Act is amended by adding the word “or” at the end of paragraph (b), by striking out the word “or” at the end of paragraph (c) and by repealing paragraph (d).

• Marginal note:R.S., c. 7 (2nd Supp.), s. 41(1)

  (2) Subsection 86(5) of the Act is replaced by the following:

  • Marginal note:Delay where objection

    (5) If a person has served a notice of objection under section 81.15, otherwise than pursuant to section 81.33, the Minister shall not, for the purpose of collecting the sum in controversy, take any of the actions described in paragraphs (4)(a) to (c) before ninety days after the day on which the notice of decision is sent to that person.

• Marginal note:R.S., c. 7 (2nd Supp.), s. 41(1); 2002, c. 8, par. 183(1)(j)

  (3) The portion of subsection 86(6) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Delay where appeal

    (6) If a person has appealed to the Tribunal or the Federal Court under this Part, otherwise than pursuant to section 81.33, in respect of an assessment, the Minister shall not, for the purpose of collecting the sum in controversy, take any of the actions described in paragraphs (4)(a) to (c),

• Marginal note:R.S., c. 7 (2nd Supp.), s. 41(1); 2002, c. 8, s. 140

  (4) Subsections 86(7) and (8) of the Act are replaced by the following:

  • Marginal note:Delay where reference

    (7) If a person is named in a reference under section 81.36, agrees to a reference under section 81.37 or appears as a party at the hearing of any such reference, the Minister shall not, for the purpose of collecting any sum for which that person has been assessed and of which the liability for payment will be affected by the determination of the question, take any of the actions described in paragraphs (4)(a) to (c) before the day on which the question is determined by the Court.

  • Marginal note:Delay when agreement

    (8) Despite subsections (1) to (7), if a person has served a notice of objection under section 81.15 or has appealed to the Tribunal or the Federal Court under this Part, otherwise than under section 81.33, in respect of an assessment and agrees in writing with the Minister to delay proceedings on the objection or appeal until a decision or judgment is rendered in another action before the Tribunal, the Federal Court, the Federal Court of Appeal or the Supreme Court of Canada in which the issue is the same or substantially the same as that raised in the objection or appeal of that person, the Minister may take any of the actions described in paragraphs (4)(a) to (c) for the purpose of collecting any sum for which that person has been assessed, determined in a manner consistent with the decision or judgment of the Tribunal or Court in the other action, at any time after the Minister notifies the person in writing that the decision or judgment has been rendered.

• (5) Subsections (1) to (4) come into force on April 1, 2007.

Marginal note:R.S., c. 7 (2nd Supp.), s. 41(1)

• 133.1 (1) Subsection 87(1) of the Act is replaced by the following:

  Marginal note:Collection in jeopardy

  • 87. (1) Despite section 86, if it may reasonably be considered that the collection of any sum for which a person has been assessed would be jeopardized by a delay under that section and the Minister has, by a notice served personally or by registered or certified mail, so advised that person and directed them to pay that sum or any part of it, the Minister may without delay take any of the actions described in paragraphs 86(4)(a) to (c) with respect to that sum or part.

• (2) Subsection (1) comes into force on April 1, 2007.

Marginal note:2003, c. 15, s. 109(1)

• 134. (1) Subsection 88(1) of the Act is replaced by the following:

  Marginal note:Waiver or cancellation of interest or penalty

  • 88. (1) The Minister may, on or before the day that is ten calendar years after the end of a reporting period of a person, waive or cancel any amount otherwise payable to the Receiver General under this Act that is interest or a penalty on an amount that is required to be paid by the person under this Act in respect of the reporting period.

• (2) Subsection (1) comes into force on April 1, 2007.