Digital Services Tax Act (S.C. 2024, c. 15, s. 96)

Marginal note:Notice of assessment

• 68 (1) After assessing a person under this Act, the Minister must send to the person a notice of the assessment.

• Marginal note:Payment of remainder

  (2) If the Minister has assessed a person for an amount, any portion of that amount remaining unpaid is payable to the Receiver General for Canada as of the date of the notice of assessment.

Marginal note:Payment by Minister on assessment

69 Subject to subsections 72(11), 82(2) and 90(2), if an assessment of a person in respect of a particular calendar year establishes that the person has paid an amount in excess of the amount determined on that assessment to be payable in respect of the particular calendar year by the person, the Minister must pay to the person a refund of the amount of the excess together with interest, at the rate prescribed by regulation, on the amount of the excess for the period beginning on the day that is the later of July 30 of the following calendar year and the day on which the excess was paid and ending on the day on which the refund is paid.

Marginal note:Limitation period for assessments

• 70 (1) Subject to subsections (2) to (5) and (10), no assessment in respect of any tax or other amount payable by a person under this Act is permitted more than seven years after the day on which the return to which the tax or other amount payable relates was filed under section 45.

• Marginal note:Exception — objection or appeal

  (2) An assessment in respect of any tax or other amount payable by a person under this Act may be made at any time if the assessment is made

  • (a) to give effect to a decision on an objection or appeal;

  • (b) with the written consent of an appellant to dispose of an appeal; or

  • (c) to give effect to an alternative basis or argument advanced by the Minister under subsection (5).

• Marginal note:Exception — neglect or fraud

  (3) An assessment in respect of any matter may be made at any time if the person to be assessed or the person filing a return has, in respect of that matter,

  • (a) made a misrepresentation that is attributable to neglect, carelessness or wilful default; or

  • (b) committed fraud in filing a return or an application for a refund or in providing any information under this Act.

• Marginal note:Exception — other period

  (4) If, in making an assessment, the Minister determines that a person has paid in respect of any matter an amount in respect of a particular calendar year that was in fact payable in respect of another calendar year, the Minister may at any time make an assessment for that other calendar year in respect of that matter.

• Marginal note:Alternative basis or argument

  (5) The Minister may advance an alternative basis or argument in support of an assessment of a person, or in support of all or any portion of the total amount determined on assessment to be payable by a person under this Act, at any time after the period otherwise limited by subsection (1) for making the assessment unless, on an appeal under this Act,

  • (a) there is relevant evidence that the person is no longer able to adduce without leave of the court; and

  • (b) it is not appropriate in the circumstances for the court to order that the evidence be adduced.

• Marginal note:Limitation — alternative basis or argument

  (6) If a reassessment of a person gives effect to an alternative basis or argument advanced by the Minister under subsection (5) in support of a particular assessment of the person, the Minister is not to reassess for an amount that is greater than the total amount of the particular assessment.

• Marginal note:Exception — alternative basis or argument

  (7) Subsection (6) does not apply to any portion of an amount determined on reassessment that the Minister would, if this Act were read without reference to subsection (5), be entitled to reassess under this Act at any time after the period otherwise limited by subsection (1) for making the reassessment.

• Marginal note:Filing waiver

  (8) A person may, within the period otherwise limited by subsection (1) for an assessment, waive the application of that subsection by filing with the Minister a waiver, in the form and manner prescribed by the Minister, specifying the period for which, and the matter in respect of which, the person waives the application of that subsection.

• Marginal note:Revoking waiver

  (9) Any person that has filed a waiver may revoke it by filing with the Minister a notice of revocation in the form and manner prescribed by the Minister. The waiver remains in effect for 180 days after the day on which the notice is filed.

• Marginal note:Exception — waiver

  (10) An assessment in respect of any matter specified in a waiver filed under subsection (8) may be made at any time within the period specified in the waiver unless the waiver has been revoked under subsection (9), in which case an assessment may be made at any time during the 180 days that the waiver remains in effect.

Marginal note:Assessment deemed valid and binding

71 An assessment is, subject to being varied or vacated on an objection or appeal under this Act and subject to a reassessment, deemed to be valid and binding despite any irregularity, informality, error, defect or omission in the assessment or in any proceeding under this Act relating to the assessment.

DIVISION JObjections to Assessment

Marginal note:Objections to assessment

• 72 (1) A person that has been assessed and that objects to the assessment may, within 90 days after the date of the notice of the assessment, file with the Minister a notice of objection, in the form and manner prescribed by the Minister, setting out the reasons for the objection and all relevant facts.

• Marginal note:Issue to be decided

  (2) A notice of objection must

  • (a) reasonably describe each issue to be decided;

  • (b) specify in respect of each issue the relief sought, expressed as the change in any amount that is relevant for the purposes of the assessment; and

  • (c) provide the facts and reasons relied on by the person in respect of each issue.

• Marginal note:Late compliance

  (3) Despite subsection (2), if a notice of objection does not include the information required under paragraph (2)(b) or (c) in respect of an issue to be decided that is described in the notice, the Minister may request that the person provide the information, and that paragraph is deemed to be complied with in respect of the issue if, within 60 days after the request is made, the person submits the information in writing to the Minister.

• Marginal note:Limitation on objections

  (4) Despite subsection (1), if a person has filed a notice of objection to an assessment (in this section referred to as the “earlier assessment”) and the Minister makes a particular assessment under subsection (8) as a result of the notice of objection, the person may object to the particular assessment in respect of an issue only

  • (a) if the person complied with subsection (2) in the notice with respect to that issue; and

  • (b) with respect to the relief sought in respect of that issue as specified by the person in the notice.

• Marginal note:Application of limitations

  (5) If a particular assessment is made under subsection (8) as a result of an objection made by a person to an earlier assessment, subsection (4) does not limit the right of the person to object to the particular assessment in respect of an issue that was part of the particular assessment and not part of the earlier assessment.

• Marginal note:Limitation on objections

  (6) Despite subsection (1), a person is not permitted to make an objection in respect of an issue for which the person has waived the right of objection.

• Marginal note:Acceptance of objection

  (7) The Minister may accept a notice of objection even if it was not filed in the form and manner prescribed by the Minister.

• Marginal note:Consideration of objection

  (8) On receipt of a notice of objection, the Minister must, without delay, reconsider the assessment and vacate, confirm or vary it or make a reassessment.

• Marginal note:Waiving reconsideration

  (9) If, in a notice of objection, a person that wishes to appeal directly to the Tax Court of Canada requests the Minister not to reconsider the assessment objected to, the Minister may confirm the assessment without reconsideration.

• Marginal note:Notice of decision

  (10) After reconsidering an assessment under subsection (8) or confirming an assessment under subsection (9), the Minister must, in writing, notify the person objecting to the assessment of the Minister’s decision.

• Marginal note:Payment by Minister on objection

  (11) If the variation of an assessment for a particular calendar year as a result of an objection establishes that a person has paid an amount in excess of the amount determined on that assessment to be payable by the person, the Minister must pay to the person a refund of the amount of the excess together with interest, at the rate prescribed by regulation, on the amount of the excess for the period beginning on the day that is the later of July 30 of the following calendar year and the day on which the excess was paid and ending on the day on which the refund is paid.

Marginal note:Extension of time by Minister

• 73 (1) If no objection to an assessment is filed under section 72 within the time limited by this Act, a person may apply to the Minister for an extension of the time for filing a notice of objection and the Minister may grant the application.

• Marginal note:Contents of application

  (2) An application under subsection (1) must set out the reasons for which the notice of objection was not filed within the time limited by this Act for doing so.

• Marginal note:How application made

  (3) An application under subsection (1) must be made to the Assistant Commissioner of the Appeals Branch of the Agency in the form and manner prescribed by the Minister and must be accompanied by a copy of the notice of objection.

• Marginal note:Defect in application

  (4) The Minister may accept an application under subsection (1) even though it was not made in accordance with subsection (3).

• Marginal note:Duties of Minister

  (5) On receipt of an application under subsection (1), the Minister must, without delay, consider the application and grant or refuse it, and notify the person in writing of the decision.

• Marginal note:Date of objection if application granted

  (6) If an application under subsection (1) is granted, the notice of objection is deemed to have been filed on the day of the decision of the Minister.

• Marginal note:Conditions for grant of application

  (7) An application may be granted under this section only if

  • (a) the application is made within one year after the expiry of the time limited by this Act for objecting; and

  • (b) the person demonstrates that

    • (i) within the time limited by this Act for objecting, the person

      • (A) was unable to act or to give a mandate to act in the person’s name, or

      • (B) had a bona fide intention to object to the assessment,

    • (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application, and

    • (iii) the application was made as soon as circumstances permitted.

DIVISION KAppeal

Marginal note:Extension of time by Tax Court of Canada

• 74 (1) A person that has made an application under section 73 may apply to the Tax Court of Canada to have the application granted after either

  • (a) the Minister has refused the application; or

  • (b) 90 days have elapsed after the day on which the application was made and the Minister has not notified the person of the Minister’s decision.

• Marginal note:When application may not be made

  (2) A person is not permitted to make an application under subsection (1) after the expiry of 30 days after the day on which notification of the decision referred to in subsection 73(5) was sent to the person.

• Marginal note:How application made

  (3) An application under subsection (1) must be made by filing in the Registry of the Tax Court of Canada, in accordance with the Tax Court of Canada Act, the documents referred to in subsection 73(3) and the notification, if any, referred to in subsection 73(5).

• Marginal note:Copy to the Commissioner

  (4) The Tax Court of Canada must send a copy of any application received under subsection (3) to the Commissioner.

• Marginal note:Powers of Tax Court of Canada

  (5) The Tax Court of Canada may dispose of an application received under subsection (3) by dismissing or granting it and, in granting it, the Court may impose any terms that it considers just or order that the notice of objection be deemed to be a valid objection as of the date of the order.

• Marginal note:Conditions for grant of application

  (6) An application is to be granted by the Tax Court of Canada under this section only if

  • (a) the application under subsection 73(1) is made within one year after the expiry of the time limited by this Act for objecting; and

  • (b) the person demonstrates that

    • (i) within the time limited by this Act for objecting, the person

      • (A) was unable to act or to give a mandate to act in the person’s name, or

      • (B) had a bona fide intention to object to the assessment,

    • (ii) given the reasons set out in the application under this section and the circumstances of the case, it would be just and equitable to grant the application, and

    • (iii) the application under subsection 73(1) was made as soon as circumstances permitted.

Marginal note:Appeal to Tax Court of Canada

• 75 (1) Subject to subsection (2), a person that has filed a notice of objection to an assessment may appeal to the Tax Court of Canada to have the assessment varied or vacated, or a reassessment made, after either

  • (a) the Minister has confirmed the assessment or has made a reassessment, or

  • (b) 180 days have elapsed after the day on which the notice of objection was filed and the Minister has not notified the person that the Minister has vacated or confirmed the assessment or has made a reassessment.

• Marginal note:No appeal

  (2) A person is not permitted to institute an appeal under subsection (1) after the expiry of 90 days after the day on which the notice that the Minister has confirmed the assessment or made a reassessment is sent to the person under subsection 72(10).

• Marginal note:Amendment of appeal

  (3) The Tax Court of Canada may, on any terms that it sees fit, authorize a person that has instituted an appeal in respect of a matter to amend the appeal to include any further assessment in respect of the matter that the person is entitled under this section to appeal.

Marginal note:Extension of time to appeal

• 76 (1) If no appeal to the Tax Court of Canada under section 75 has been instituted within the time limited by that section for doing so, a person may make an application to the Tax Court of Canada for an order extending the time within which an appeal may be instituted, and the Court may make an order extending the time for appealing and may impose any terms that it considers just.

• Marginal note:Contents of application

  (2) An application under subsection (1) must set out the reasons why the appeal was not instituted within the time limited by section 75 for doing so.

• Marginal note:How application made

  (3) An application under subsection (1) must be made by filing in the Registry of the Tax Court of Canada, in accordance with the Tax Court of Canada Act, the application and the notice of appeal.

• Marginal note:Copy to Deputy Attorney General of Canada

  (4) The Tax Court of Canada must send a copy of any application under subsection (1) to the office of the Deputy Attorney General of Canada.

• Marginal note:Conditions for order to be made

  (5) An order may be made under this section only if

  • (a) the application under subsection (1) is made within one year after the expiry of the time limited by section 75 for appealing; and

  • (b) the person demonstrates that

    • (i) within the time limited by section 75 for appealing, the person

      • (A) was unable to act or to give a mandate to act in the person’s name, or

      • (B) had a bona fide intention to appeal,

    • (ii) given the reasons set out in the application and the circumstances of the case, it would be just and equitable to grant the application,

    • (iii) the application was made as soon as circumstances permitted, and

    • (iv) there are reasonable grounds for the appeal.