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.