Budget Implementation Act, 2006 (S.C. 2006, c. 4)
Full Document:
Assented to 2006-06-22
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 (1) Section 79.1 of the Act is repealed.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.
135. (1) The Act is amended by adding the following after section 95:
Marginal note:Failure to file a return when required
95.1 Every person who fails to file a return for a fiscal month as and when required under subsection 79(1) 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 on 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.
(2) Subsection (1) comes into force on April 1, 2007.
(3) For the purposes of section 95.1 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.
136. (1) The definition “financial service” in subsection 123(1) of the Act is amended by adding the following after paragraph (r.1):
(r.2) a debt collection service, rendered under an agreement between a person agreeing to provide, or arranging for, the service and a particular person other than the debtor, in respect of all or part of a debt, including a service of attempting to collect, arranging for the collection of, negotiating the payment of, or realizing or attempting to realize on any security given for, the debt, but does not include a service that consists solely of accepting from a person (other than the particular person) a payment of all or part of an account unless
(i) under the terms of the agreement the person rendering the service may attempt to collect all or part of the account or may realize or attempt to realize on any security given for the account, or
(ii) the principal business of the person rendering the service is the collection of debt,
(2) Subsection (1) applies to a debt collection service rendered under an agreement for a supply if
(a) any consideration for the supply becomes due after November 17, 2005, or is paid after that day without having become due; or
(b) all of the consideration for the supply became due or was paid on or before that day unless the supplier did not, on or before that day, charge, collect or remit any amount as or on account of tax under Part IX of the Act in respect of the supply or in respect of any other supply that includes a debt collection service and that is made under the agreement.
Marginal note:1997, c. 10, s. 44(1)
137. (1) Subparagraph 225(3)(b)(ii) of the Act is replaced by the following:
(ii) if the person does not report the error to the Minister at least three months before the time limited by subsection 298(1) for assessing the net tax of the person for that preceding period expires, the person pays, at or before the time the return for the particular reporting period is filed, the amount and any applicable interest to the Receiver General.
(2) Subsection (1) applies for the purpose of determining the net tax for a reporting period of a person if the person’s preceding reporting period referred to in subsection 225(3) of the Act ends on or after April 1, 2007.
Marginal note:1997, c. 10, s. 45(1)
138. (1) Subparagraph 225.1(4)(b)(ii) of the Act is replaced by the following:
(ii) if the charity does not report the error to the Minister at least three months before the time limited by subsection 298(1) for assessing the net tax of the charity for that preceding period expires, the charity pays, at or before the time the return for the particular reporting period is filed, the amount and any applicable interest to the Receiver General.
(2) Subsection (1) applies for the purpose of determining the net tax for a reporting period of a charity if the charity’s preceding reporting period referred to in subsection 225.1(4) of the Act ends on or after April 1, 2007.
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