Marginal note:2001, c. 15, s. 16(1)

• 144. (1) Subsection 256.2(10) of the Act is replaced by the following:

  • Marginal note:Repayment of rebate

    (10) If a person was entitled to claim a rebate under subsection (3) in respect of a qualifying residential unit (other than a unit located in a multiple unit residential complex) and, within one year after the unit is first occupied as a place of residence after the construction or last substantial renovation of the unit was substantially completed, the person makes a supply by way of sale (other than a supply deemed under section 183 or 184 to have been made) of the unit to a purchaser who is not acquiring the unit for use as the primary place of residence of the purchaser or of a relation of the purchaser, the person shall pay to the Receiver General an amount equal to the rebate plus interest at the prescribed rate less 2% per year, calculated on that amount for the period beginning on the day the rebate was paid or applied to a liability of the person and ending on the day the amount of the rebate is paid by the person to the Receiver General.

• (2) Subsection (1) applies in respect of any rebate that a person was entitled to claim if the amount of the rebate is paid by the person to the Receiver General on or after April 1, 2007, except that if the rebate was paid to the person before that day, subsection 256.2(10) of the Act, as enacted by subsection (1), shall be read as follows:

  • (10) If a person was entitled to claim a rebate under subsection (3) in respect of a qualifying residential unit (other than a unit located in a multiple unit residential complex) and, within one year after the unit is first occupied as a place of residence after the construction or last substantial renovation of the unit was substantially completed, the person makes a supply by way of sale (other than a supply deemed under section 183 or 184 to have been made) of the unit to a purchaser who is not acquiring the unit for use as the primary place of residence of the purchaser or of a relation of the purchaser, the person shall pay to the Receiver General an amount equal to the rebate, plus the total of

    • (a) interest at the rate prescribed for the purposes of paragraph 280(1)(b), calculated on that amount for the period beginning on the day the rebate was paid or applied to a liability of the person and ending on March 31, 2007, and

    • (b) interest at the prescribed rate less 2% per year, calculated on the total of that amount plus the interest referred to in paragraph (a) for the period beginning on April 1, 2007, and ending on the day the amount of the rebate is paid by the person to the Receiver General.

• 145. (1) The Act is amended by adding the following after section 263.01:

  Marginal note:Restriction on rebate

  263.02 A rebate under this Part shall not be paid to a person at any time, unless all returns of which the Minister has knowledge and that are required to be filed at or before that time by the person under this Act, the Air Travellers Security Charge Act, the Excise Act, 2001 and the Income Tax Act have been filed with the Minister.

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

Marginal note:1990, c. 45, s. 12(1); 2000, c. 30, s. 83(1)(F)

• 146. (1) Subsection 280(1) of the Act is replaced by the following:

  Marginal note:Interest

  • 280. (1) Subject to this section and section 281, if a person fails to remit or pay an amount to the Receiver General when required under this Part, the person shall pay interest at the prescribed rate on the amount, computed for the period beginning on the first day following the day on or before which the amount was required to be remitted or paid and ending on the day the amount is remitted or paid.

• Marginal note:1997, c. 10, s. 235(1); 2000, c. 30, s. 83(2)(F)

  (2) Subsection 280(1.1) of the Act is replaced by the following:

  • Marginal note:Interest on net tax of selected listed financial institutions

    (1.1) Despite subsection (1), if a selected listed financial institution that is required to pay an amount under subsection 228(2.1) on account of the financial institution’s net tax for a reporting period fails to pay all of that amount within the time specified in that subsection, the financial institution shall pay, on the amount not paid, interest at the prescribed rate, computed for the period beginning on the first day following that time and ending on the earlier of

    • (a) the day the total of the amount and interest is paid, and

    • (b) the day on or before which the financial institution is required under subsection 238(2.1) to file a final return for that reporting period.

• Marginal note:1990, c. 45, s. 12(1); 2000, c. 30, s. 83(3)(F)

  (3) Subsection 280(2) of the Act is replaced by the following:

  • Marginal note:Interest on instalments

    (2) Despite subsection (1), if a person fails to pay all of an instalment payable by the person under subsection 237(1) within the time specified in that subsection, the person shall pay, on the amount of the instalment not paid, interest at the prescribed rate, computed for the period beginning on the first day following that time and ending on the earlier of

    • (a) the day the total of the amount and interest is paid, and

    • (b) the day on or before which the tax on account of which the instalment was payable is required to be remitted.

• Marginal note:1990, c. 45, s. 12(1)

  (4) Subsection 280(3) of the Act is replaced by the following:

  • Marginal note:Interest on instalments

    (3) Despite subsection (2), the total interest payable by a person under that subsection for the period beginning on the first day of a reporting period for which an instalment on account of tax is payable and ending on the day on or before which the tax on account of which the instalment was payable is required to be remitted shall not exceed the amount, if any, by which

    • (a) the amount of interest that would be payable under subsection (2) for the period by the person if no amount were paid by the person on account of instalments payable in the period

    exceeds

    • (b) the total of all amounts each of which is an amount of interest at the prescribed rate that applies in the case of interest to be paid to the Receiver General, calculated on an instalment of tax paid for the period beginning on the day of that payment and ending on the day on or before which the tax on account of which the instalment was payable is required to be remitted.

• Marginal note:1993, c. 27, s. 126(1)

  (5) Subsection 280(4) of the Act is replaced by the following:

  • Marginal note:Unpaid interest on instalments

    (4) If a person is required to pay interest under subsection (2) in respect of an instalment required under subsection 237(1) to be paid within the time specified in that subsection and the interest has not been paid on or before the day on or before which the tax on account of which the instalment was payable is required to be remitted, the interest is deemed, for the purposes of this Part, to be an amount required to be remitted by the person on or before that day that has not been remitted on or before that day.

• Marginal note:1997, c. 10, s. 235(2)

  (6) Subsection 280(4.01) of the Act is replaced by the following:

  • Marginal note:Unpaid interest on net tax of selected listed financial institutions

    (4.01) If a selected listed financial institution is required to pay interest under subsection (1.1) in respect of an amount required under subsection 228(2.1) to be paid within the time specified in that paragraph and the interest has not been paid on or before the day on or before which the financial institution is required under subsection 238(2.1) to file a final return for that reporting period, the interest is deemed, for the purposes of this Part, to be an amount required to be remitted by the financial institution on or before that day that has not been remitted on or before that day.

• Marginal note:1993, c. 27, s. 126(1)

  (7) Subsection 280(4.1) of the Act is replaced by the following:

  • Marginal note:Payment of interest

    (4.1) If interest is compounded on a partic­ular day on an amount that a person has failed to pay or remit when required under this Part, the interest so compounded is deemed, for the purposes of this section, to be required to be paid by the person to the Receiver General at the end of the particular day and, if the person has not paid the interest so computed by the end of the next following day, the interest shall be added to the amount at the end of the particular day.

• Marginal note:1990, c. 45, s. 12(1)

  (8) Subsection 280(5) of the Act is repealed.

• Marginal note:1990, c. 45, s. 12(1)

  (9) Subsection 280(6) of the Act is repealed.

• Marginal note:1990, c. 45, s. 12(1)

  (10) Subsection 280(7) of the Act is replaced by the following:

  • Marginal note:Payment before specified date

    (7) If the Minister has served a demand that a person pay or remit on or before a specified date all tax, net tax, instalments, amounts under section 264, penalties and interest payable by the person under this Part on the date of the demand, and the person pays the total on or before the specified date, the Minister may waive interest for the period beginning on the first day following the date of the demand and ending on the day of payment.

• (11) Subsections (1) and (7) come into force on April 1, 2007.

• (12) Subsection (2) applies in respect of any reporting period of a selected listed financial institution that ends on or after April 1, 2007, and for the purposes of calculating any penalty and interest in respect of an amount that the selected listed financial institution is required to pay under subsection 228(2.1) of the Act before that day and fails to pay before that day, subsection 280(1.1) of the Act, as enacted by subsection (2), shall be read as follows:

  • (1.1) Despite subsection (1), if a selected listed financial institution that is required to pay an amount under subsection 228(2.1) on account of the financial institution’s net tax for a reporting period fails to pay all of that amount within the time specified in that subsection, the financial institution shall pay

    • (a) a penalty of 6% per year and interest at the prescribed rate on the amount not paid, computed for the period beginning on the first day following that time and ending on March 31, 2007; and

    • (b) interest at the prescribed rate on the total of the amount that remains unpaid on March 31, 2007, plus the interest and penalty referred to in paragraph (a), computed for the period beginning on April 1, 2007, and ending on the earlier of

      • (i) the day the total of the amount, penalty and interest is paid, and

      • (ii) the day on or before which the financial institution is required under subsection 238(2.1) to file a final return for that reporting period.

• (13) Subsection (3) applies in respect of any instalment payable by a person on or after April 1, 2007, and for the purposes of calculating any penalty and interest in respect of an instalment that the person is required to pay under subsection 237(1) of the Act before that day and fails to pay before that day, subsection 280(2) of the Act, as enacted by subsection (3), shall be read as follows:

  • (2) Despite subsection (1), if a person fails to pay all of an instalment payable by the person under subsection 237(1) within the time specified in that subsection, the person shall pay

    • (a) a penalty of 6% per year and interest at the prescribed rate on the amount of the instalment not paid, computed for the period beginning on the first day following that time and ending on March 31, 2007; and

    • (b) interest at the prescribed rate on the total of the amount of the instalment that remains unpaid on March 31, 2007, plus the interest and penalty referred to in paragraph (a), computed for the period beginning on April 1, 2007, and ending on the earlier of

      • (i) the day the total of the amount, penalty and interest is paid, and

      • (ii) the day on or before which the tax on account of which the instalment was payable is required to be remitted.

• (14) Subsection (4) applies in respect of any reporting period of a person that begins on or after April 1, 2007. However, if the person is required to pay an instalment under subsection 237(1) of the Act before April 1, 2007, fails to pay the instalment before the time provided under section 237 of the Act and is required to remit the tax on account of which the instalment was payable on or before a day that is on or after that day, for the purposes of calculating any penalty or interest in respect of the instalment, subsection 280(3) of the Act, as enacted by subsection (4), shall be read as follows:

  • (3) Despite subsection (2), the total interest payable by a person under that subsection for the period beginning on the first day of a reporting period for which an instalment on account of tax is payable and ending on the day on or before which the tax on account of which the instalment was payable is required to be remitted shall not exceed the amount, if any, by which

    • (a) the total of the interest and penalties that would be payable under subsection (2) for the period by the person if no amount were paid by the person on account of instalments payable in the period

    exceeds

    • (b) the total of all amounts each of which is

      • (i) an amount of interest at the prescribed rate plus 6% per year, calculated on a particular instalment of tax paid before April 1, 2007, for the period beginning on the day of that payment and ending on March 31, 2007,

      • (ii) an amount of interest at the prescribed rate that applies in the case of interest to be paid to the Receiver General, calculated on that particular instalment of tax for the period beginning on April 1, 2007, and ending on the day on or before which the tax on account of which the particular instalment was payable is required to be remitted, and

      • (iii) an amount of interest at the prescribed rate that applies in the case of interest to be paid to the Receiver General, calculated on an instalment of tax paid after March 31, 2007, for the period beginning on the day of that payment and ending on the day on or before which the tax on account of which the instalment was payable is required to be remitted.

• (15) Subsection (5) applies in respect of any instalment that a person first fails to pay on or after April 1, 2007.

• (16) Subsection (6) applies in respect of any amount that a selected listed financial institution is required to pay under subsection 228(2.1) of the Act and first fails to pay on or after April 1, 2007.

• (17) Subsection (8) applies in respect of any amount that a person fails to remit or pay on or after April 1, 2007.

• (18) Subsection (9) applies in respect of any reporting period of a person that ends on or after April 1, 2007.

• (19) Subsection (10) applies in respect of any demand served on or after April 1, 2007, by the Minister of National Revenue.

• 147. (1) The Act is amended by adding the following after section 280:

  Marginal note:Failure to file a return

  280.1 Every person who fails to file a return for a reporting period as and when required under this Part is liable to 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 remitted or paid for the reporting period and was not remitted or paid, as the case may be, on or before the day on or before 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 or before which the return was required to be filed to the day on which the return is filed.

  Marginal note:Minimum interest and penalty

  280.2 If at any time a person pays or remits all tax, net tax, instalments and amounts under section 264 payable by the person under this Part for a reporting period of the person and, immediately before that time, the total, for the reporting period, of all interest payable by the person under section 280 and penalties payable under section 280.1 is not more than $25, the Minister may cancel the total of the penalties and interest.

  Marginal note:Dishonoured instruments

  280.3 For the purposes of this Part and section 155.1 of the Financial Administration Act, any charge that becomes payable at any time by a person under that Act in respect of an instrument tendered in payment or settlement of an amount that is payable or remittable under this Part is deemed to be an amount that becomes payable by the person at that time under this Part. 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 that 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 Part is paid.

• (2) Section 280.1 of the Act, as enacted by subsection (1), applies

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

  • (b) in respect of any return that is required to be filed under Part IX of 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.

• (3) Section 280.2 of the Act, as enacted by subsection (1), applies in respect of any reporting period of a person that ends on or after April 1, 2007.

• (4) Section 280.3 of the Act, as enacted by subsection (1), applies in respect of any instrument that is dishonoured on or after April 1, 2007.

Marginal note:1990, c. 45, s. 12(1)

• 148. (1) Paragraphs 281(2)(c) and (d) of the Act are replaced by the following:

  • (c) any interest payable under section 280 on any tax or net tax payable that the person is required to report in the return shall be calculated as though the tax or net tax were required to be paid on or before the day on which the extended time expires; and

  • (d) any penalty payable under section 280.1 in respect of the return shall be calculated as though the return were required to be filed on or before the day on which the extended time expires.

• (2) Subsection (1) applies in respect of any extension of time that expires on or after April 1, 2007.