Budget Implementation Act, 2006 (S.C. 2006, c. 4)

• 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.

Marginal note:1993, c. 27, s. 127(1)

• 149. (1) Section 281.1 of the Act is replaced by the following:

  Marginal note:Waiving or cancelling interest

  • 281.1 (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 interest payable by the person under section 280 on an amount that is required to be remitted or paid by the person under this Part in respect of the reporting period.

  • Marginal note:Waiving or cancelling penalties

    (2) 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 all or any portion of any

    • (a) penalty that became payable by the person under section 280 before April 1, 2007, in respect of the reporting period; and

    • (b) penalty payable by the person under section 280.1 in respect of a return for the reporting period.

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

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

• 150. (1) Section 283 of the Act is replaced by the following:

  Marginal note:Failure to answer demand

  283. Every person who fails to file a return when required pursuant to a demand issued under section 282 is liable to a penalty equal to $250.

• (2) Subsection (1) applies in respect of any demand under section 282 of the Act served by the Minister of National Revenue on or after April 1, 2007.

Marginal note:1997, c. 10, s. 78(2)

• 151. (1) The portion of subsection 296(2) of the French version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Application d’un crédit non demandé

    (2) Le ministre, s’il constate les faits ci-après relativement à un montant (appelé « crédit déductible » au présent paragraphe) lors de l’établissement d’une cotisation concernant la taxe nette d’une personne pour une période de déclaration donnée de celle-ci, prend en compte le crédit déductible dans l’établissement de la taxe nette pour cette période comme si la personne avait demandé le crédit déductible dans une déclaration produite pour cette pé- riode :

• Marginal note:1997, c. 10, s. 78(2)

  (2) The portion of subsection 296(2) of the English version of the Act after paragraph (c) is replaced by the following:

  the Minister shall take the allowable credit into account in assessing the net tax for the particular reporting period as if the person had claimed the allowable credit in a return filed for the period.

• Marginal note:1997, c. 10, s. 78(2)

  (3) The portion of subsection 296(2.1) of the French version of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Application d’un montant de remboursement non demandé

    (2.1) Le ministre, s’il constate les faits ci-après relativement à un montant (appelé « montant de remboursement déductible » au présent paragraphe) lors de l’établissement d’une cotisation concernant la taxe nette d’une personne pour une période de déclaration de celle-ci ou concernant un montant (appelé « montant impayé » au présent paragraphe) qui est devenu payable par une personne en vertu de la présente partie, applique tout ou partie du montant de remboursement déductible en réduction de la taxe nette ou du montant impayé comme si la personne avait payé ou versé, à la date visée aux sous-alinéas a)(i) ou (ii), le montant ainsi appliqué au titre de la taxe nette ou du montant impayé :

• Marginal note:1997, c. 10, s. 78(2)

  (4) The portion of subsection 296(2.1) of the English version of the Act after paragraph (c) is replaced by the following:

  the Minister shall apply all or part of the allowable rebate against that net tax or overdue amount as if the person had, on the particular day, paid or remitted the amount so applied on account of that net tax or overdue amount.

• Marginal note:1997, c. 10, s. 78(2)

  (5) The portion of subsection 296(3) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Application or payment of credit

    (3) If, in assessing the net tax of a person for a particular reporting period of the person, the Minister determines that there is an overpayment of net tax for the particular period, except where the assessment is made in the circumstances described in paragraph 298(4)(a) or (b) after the time otherwise limited for the assessment by paragraph 298(1)(a), the Minister shall

• Marginal note:1997, c. 10, s. 78(2)

  (6) The portion of subparagraph 296(3)(b)(i) of the Act before clause (A) is replaced by the following:

  • (i) all or part of the overpayment that was not applied under paragraph (a) together with interest at the prescribed rate on all or that part of the overpayment, computed for the period beginning on the day that is 30 days after the latest of

• Marginal note:1997, c. 10, s. 78(2)

  (7) The portion of paragraph 296(3)(c) of the Act before subparagraph (i) is replaced by the following:

  • (c) refund to the person that part of the overpayment that was not applied under paragraphs (a) and (b) together with interest at the prescribed rate on that part of the overpayment, computed for the period beginning on the day that is 30 days after the latest of

• Marginal note:1997, c. 10, s. 78(2)

  (8) The portion of subsection 296(3.1) of the Act before paragraph (a) is replaced by the following:

  • Marginal note:Application or payment of rebate

    (3.1) If, in assessing the net tax of a person for a particular reporting period of the person or an amount (in this subsection referred to as the “overdue amount”) that became payable by a person under this Part, all or part of an allowable rebate referred to in subsection (2.1) is not applied under that subsection against that net tax or overdue amount, except where the assessment is made in the circumstances described in paragraph 298(4)(a) or (b) after the time otherwise limited for the assessment by paragraph 298(1)(a), the Minister shall

• Marginal note:1997, c. 10, s. 78(2)

  (9) The portion of subparagraph 296(3.1)(b)(i) of the Act before clause (A) is replaced by the following:

  • (i) all or part of the allowable rebate that was not applied under subsection (2.1) or paragraph (a) together with interest at the prescribed rate on all or that part of the allowable rebate, computed for the period beginning on the day that is 30 days after the later of

• Marginal note:1997, c. 10, s. 78(2)

  (10) The portion of paragraph 296(3.1)(c) of the Act before subparagraph (i) is replaced by the following:

  • (c) refund to the person that part of the allowable rebate that was not applied under any of subsection (2.1) and paragraphs (a) and (b) together with interest at the prescribed rate on that part of the allowable rebate, computed for the period beginning on the day that is 30 days after the later of

• Marginal note:1997, c. 10, s. 78(2)

  (11) Paragraph 296(4)(b) of the Act is replaced by the following:

  • (b) shall not be refunded under paragraph (3)(c) unless the input tax credit or deduction would have been allowed as an input tax credit or deduction, as the case may be, in determining the net tax for another reporting period of the person if the person had claimed the input tax credit or deduction in a return under Division V filed on the day notice of the assessment is sent to the person.

• Marginal note:1997, c. 10, s. 78(2)

  (12) Paragraph 296(4.1)(b) of the Act is replaced by the following:

  • (b) shall not be refunded under paragraph (3.1)(c) unless the allowable rebate would have been payable to the person as a rebate if the person had claimed it in an application under this Part filed on the day notice of the assessment is sent to the person, and, where the rebate is in respect of an amount that is being assessed, if the person had paid or remitted that amount.

• Marginal note:1990, c. 45, s. 12(1)

  (13) Subsection 296(7) of the Act is replaced by the following:

  • Marginal note:Interest on cancelled amounts

    (6.1) Despite subsection (6), if a person has paid an amount of interest or penalty and the Minister cancels that amount under section 281.1, the Minister shall refund the amount to the person, together with interest on the amount at the prescribed rate for the period beginning on the day that is 30 days after the day on which the Minister received a request in a manner satisfactory to the Minister to apply that section and ending on the day on which the refund is paid.

  • Marginal note:Restriction on refunds

    (7) An amount under this section shall not be refunded 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.

• (14) Subsections (1) to (5), (8) and (11) to (13) come into force on April 1, 2007.

• (15) Subsections (6), (7), (9) and (10) apply to any reporting period of a person that ends on or after April 1, 2007.