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Excise Tax Act (R.S.C., 1985, c. E-15)

Full Document:  

Act current to 2022-07-25 and last amended on 2022-06-23. Previous Versions

PART IXGoods and Services Tax (continued)

DIVISION VCollection and Remittance of Division II Tax (continued)

SUBDIVISION BRemittance of Tax (continued)

Marginal note:Instalments

  •  (1) Where the reporting period of a registrant is a fiscal year or a period determined under subsection 248(3), the registrant shall, within one month after the end of each fiscal quarter of the registrant ending in the reporting period, pay to the Receiver General an instalment equal to

    • (a) except where paragraph (b) applies, 1/4 of the registrant’s instalment base for that reporting period; or

    • (b) the amount determined under subsection (5).

  • Marginal note:Instalment base

    (2) A registrant’s instalment base for a particular reporting period of the registrant is the lesser of

    • (a) an amount equal to

      • (i) in the case of a reporting period determined under subsection 248(3), the amount determined by the formula

        A × (365/B)

        where

        A
        is the net tax for the particular reporting period, and
        B
        is the number of days in the particular reporting period, and
      • (ii) in any other case, the net tax for the particular reporting period, and

    • (b) the amount determined by the formula

      C × (365/D)

      where

      C
      is the total of all amounts each of which is the net tax for a reporting period of the registrant ending in the twelve month period immediately preceding the particular reporting period, and
      D
      is the number of days in the period commencing on the first day of the first of those preceding reporting periods and ending on the last day of the last of those preceding reporting periods.
  • Marginal note:Minimum instalment base

    (3) For the purposes of subsection (1), if a registrant’s instalment base for a reporting period is less than $3,000, it is deemed to be nil.

  • (4) [Repealed, 1993, c. 27, s. 98]

  • Marginal note:Selected listed financial institution — Instalments in first fiscal year

    (5) For the purposes of subsection (1), where a person becomes a selected listed financial institution during a reporting period of the person that begins on or after April 1, 1997, the instalment to be paid within one month after the end of each fiscal quarter in the reporting period is

    • (a) where the fiscal quarter is the first fiscal quarter in the reporting period, 1/4 of the amount determined under subsection (2); and

    • (b) in any other case, the lesser of

      • (i) 1/4 of the amount determined under paragraph (2)(a), and

      • (ii) the amount determined by the formula

        A + B

        where

        A
        is 1/4 of the financial institution’s instalment base for the reporting period determined under paragraph (2)(b) as if the financial institution were not a selected listed financial institution and tax were not imposed under any of subsection 165(2), sections 212.1 and 218.1 and Division IV.1, and
        B
        is the total of all amounts, each of which is determined, for a participating province, by the formula

        C × D

        where

        C
        is the amount determined for A in this subparagraph, and
        D
        is the financial institution’s percentage for the participating province for the immediately preceding fiscal quarter, determined in accordance with the prescribed rules that apply to that financial institution.
  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 98
  • 1997, c. 10, s. 216
  • 2007, c. 35, s. 5

SUBDIVISION CReturns

Marginal note:Filing required

  •  (1) Every registrant shall file a return with the Minister for each reporting period of the registrant

    • (a) where the registrant’s reporting period is or would, in the absence of subsection 251(1), be the fiscal year,

      • (i) if the registrant is a listed financial institution described in any of subparagraphs 149(1)(a)(i) to (x), within six months after the end of the year,

      • (ii) if subparagraph (i) does not apply, the registrant is an individual, the fiscal year is a calendar year and, for the purposes of the Income Tax Act, the individual carried on a business in the year and the filing-due date of the individual for the year is June 15 of the following year, on or before that day, and

      • (iii) in any other case, within three months after the end of the year; and

    • (b) in every other case, within one month after the end of the reporting period of the registrant.

  • Marginal note:Idem

    (2) Every person who is not a registrant shall file a return with the Minister for each reporting period of the person for which net tax is remittable by the person within one month after the end of the reporting period.

  • Marginal note:Filing by certain selected listed financial institutions

    (2.1) Despite paragraph (1)(b) and subsection (2), if a selected listed financial institution’s reporting period is a fiscal month or fiscal quarter, the financial institution shall

    • (a) file an interim return for the period with the Minister within one month after the end of the period; and

    • (b) file a final return for the period with the Minister within six months after the end of the fiscal year in which the period ends.

  • Marginal note:Non-resident performers, etc.

    (3) Notwithstanding subsection (1), where, in a reporting period of a non-resident person, the person makes a taxable supply in Canada of an admission in respect of a place of amusement, a seminar, an activity or an event, the person shall

    • (a) file with the Minister a return for that period on or before the earlier of

      • (i) the day on or before which a return for that period is required to be filed under subsection (1), and

      • (ii) the day the person, or one or more employees of the person who are involved in the commercial activity in which the supply was made, leaves Canada; and

    • (b) on or before that earlier day, remit all amounts that became collectible, and all other amounts collected by the person, in the period as or on an account of tax under Division II.

  • Marginal note:Form and content

    (4) Every return under this Subdivision shall be made in prescribed form containing prescribed information and shall be filed in prescribed manner.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 99
  • 1994, c. 9, s. 15
  • 1996, c. 21, s. 66
  • 1997, c. 10, s. 217
  • 2010, c. 12, s. 73

Marginal note:Definitions

  •  (1) In this section,

    cumulative amount

    cumulative amount for a reporting period of a registrant means the total of

    • (a) the amount that would be the registrant’s net tax for the period if it were determined without reference to subsection (4) and if no input tax credits were claimed, and no amounts were deducted, in determining that net tax, and

    • (b) the amount required under subsection (4) to be added in determining the net tax for the period; (montant cumulatif)

    designated reporting period

    designated reporting period of a person means a reporting period of the person in respect of which a designation under subsection (2) is in effect, but does not include a reporting period in which the person ceases to be a registrant. (période désignée)

  • Marginal note:Designation by Minister

    (2) The Minister may, on the application of a registrant and by notice in writing, designate, as an eligible reporting period for the purposes of this section, a particular reporting period (other than a fiscal year) of the registrant specified in the application and ending in a fiscal year of the registrant if

    • (a) the Minister is satisfied that it can reasonably be expected that the cumulative amount for the particular reporting period will not exceed $1000;

    • (b) the registrant’s application in respect of the particular reporting period is made in prescribed form, contains prescribed information and is filed with the Minister in prescribed manner before the beginning of the particular reporting period; and

    • (c) at the time the application is made,

      • (i) no designation under this subsection of a reporting period of the registrant ending in the fiscal year has been revoked,

      • (ii) all amounts required under this Part to be remitted before that time by the registrant in respect of reporting periods of the registrant or supplies of real property made to the registrant and all amounts payable under this Part before that time by the registrant as penalty, interest, an instalment of tax or a repayment in respect of reporting periods of the registrant have been remitted or paid,

      • (iii) all amounts required under this Act (other than this Part), sections 21 and 33 of the Canada Pension Plan, the Excise Act, the Customs Act, the Income Tax Act, section 82 and Part VII of the Employment Insurance Act, the Customs Tariff, the Excise Act, 2001 and the Underused Housing Tax Act to be remitted or paid before that time by the registrant have been remitted or paid, and

      • (iv) all returns required under this Part to be filed with the Minister before that time by the registrant have been filed.

  • Marginal note:No return

    (3) Subject to section 282, a registrant is not required to file a return under section 238 for a designated reporting period of the registrant if the cumulative amount for the period does not exceed $1000.

  • Marginal note:Determination of net tax

    (4) Where the cumulative amount for a designated reporting period of a registrant does not exceed $1000, that amount

    • (a) shall be added in determining the registrant’s net tax for the reporting period of the registrant immediately following the designated reporting period; and

    • (b) notwithstanding any other provision of this Part, shall not be included in determining the registrant’s net tax for the designated reporting period.

  • Marginal note:Revocation by Minister

    (5) Where the Minister has made a designation under subsection (2) in respect of a reporting period of a registrant and

    • (a) the condition described in paragraph (2)(a) is no longer met in respect of the period, or

    • (b) the conditions described in paragraph (2)(c) would not be met if an application for such a designation were made at the beginning of the period,

    the Minister may revoke the designation.

  • Marginal note:Notice of revocation

    (6) Where, under subsection (5), the Minister revokes a designation of a reporting period of a registrant, the Minister shall send a notice in writing of the revocation to the registrant.

  • Marginal note:Automatic revocation

    (7) Where

    • (a) a registrant files, or is required to file, a return under section 238 or 282 for a designated reporting period of the registrant ending in a fiscal year of the registrant, or

    • (b) the Minister revokes a designation of a reporting period of a registrant ending in a fiscal year of the registrant,

    the designations under subsection (2) of all subsequent reporting periods of the registrant ending in the fiscal year are revoked.

  • Marginal note:Filing deadlines

    (8) In this Part (other than this section), any reference to the day on or before which a person is required to file a return shall, where the person is, because of subsection (3), not required to file the return, be read as a reference to the day on or before which the person would, but for that subsection, be required to file the return.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1994, c. 9, s. 16
  • 1996, c. 23, s. 170
  • 2002, c. 22, s. 388
  • 2022, c. 5, s. 17

Marginal note:Authority for separate returns

  •  (1) A registrant who engages in one or more commercial activities in separate branches or divisions may file with the Minister in prescribed manner an application, in prescribed form containing prescribed information, for authority to file separate returns under this Division in respect of a branch or division specified in the application.

  • Marginal note:Authorization by Minister

    (2) Where the Minister receives an application under subsection (1) in respect of a branch or division of a registrant and is satisfied that

    • (a) the branch or division can be separately identified by reference to the location thereof or the nature of the activities engaged in by it, and

    • (b) separate records, books of account and accounting systems are maintained in respect of the branch or division,

    the Minister may, in writing, authorize the registrant to file separate returns in relation to the specified branch or division, subject to such conditions as the Minister may at any time impose.

  • Marginal note:Revocation of authorization

    (3) The Minister may, in writing, revoke an authorization granted under subsection (2) where

    • (a) the registrant fails to comply with any condition attached thereto or any provision of this Part;

    • (b) the Minister considers that the authorization is no longer required for the purposes for which it was originally granted, or generally for the purposes of this Part;

    • (c) the Minister is no longer satisfied that the requirements of paragraphs (2)(a) and (b) in respect of the registrant are met; or

    • (d) the registrant, in writing, requests the Minister to revoke the authorization.

  • Marginal note:Notice of revocation

    (4) Where under subsection (3) the Minister revokes an authorization, the Minister shall send a notice in writing of the revocation to the registrant and shall specify therein the effective date thereof.

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12

SUBDIVISION DRegistration

Marginal note:Registration required

  •  (1) Every person who makes a taxable supply in Canada in the course of a commercial activity engaged in by the person in Canada is required to be registered for the purposes of this Part, except where

    • (a) the person is a small supplier;

    • (b) the only commercial activity of the person is the making of supplies of real property by way of sale otherwise than in the course of a business; or

    • (c) the person is a non-resident person who does not carry on any business in Canada.

  • Marginal note:Taxi business

    (1.1) Notwithstanding subsection (1), every small supplier who carries on a taxi business is required to be registered for the purposes of this Part in respect of that business.

  • Marginal note:Prescribed selected listed financial institutions

    (1.2) Every selected listed financial institution that is prescribed is required to be registered for the purposes of this Part.

  • Marginal note:Group registration of selected listed financial institutions

    (1.3) The following rules apply in respect of a prescribed group of selected listed financial institutions:

    • (a) the group is required to be registered for the purposes of this Part;

    • (b) a person that is prescribed in respect of the group must apply to the Minister for registration of the group before the day that is prescribed;

    • (c) each member of the group is deemed to be a registrant for the purposes of this Part; and

    • (d) despite subsections (1) to (1.2), each member of the group is not required to be separately registered.

  • Marginal note:Additional member of group

    (1.4) If a selected listed financial institution becomes, on a particular day, a member of an existing group that is required to be registered for the purposes of this Part or that is registered under this Subdivision, the following rules apply:

    • (a) if the group is required to be registered, the application for the registration of the group under paragraph (1.3)(b) must list the financial institution as a member of the group;

    • (b) if the group is registered, the financial institution or the person that is prescribed in respect of the group for the purpose of paragraph (1.3)(b) must, before the day that is 30 days after the particular day, apply to the Minister to add the financial institution to the registration of the group;

    • (c) the financial institution is deemed to be a registrant for the purposes of this Part as of the particular day; and

    • (d) despite subsections (1) to (1.2), the financial institution is not required to be separately registered as of the particular day.

  • Marginal note:Non-resident supplier — tangible personal property

    (1.5) Despite subsection (1), every person that is required under section 211.22 to be registered under this Subdivision is required to be registered for the purposes of this Part.

  • Marginal note:Non-resident performers, etc.

    (2) Every person (other than a person registered under Subdivision E of Division II) that enters Canada for the purpose of making taxable supplies of admissions in respect of a place of amusement, a seminar, an activity or an event is required to be registered for the purposes of this Part and shall, before making any such supply, apply to the Minister for registration.

  • Marginal note:Application

    (2.1) A person required under any of subsections (1) to (1.2) and (1.5) to be registered must apply to the Minister for registration before the day that is 30 days after

    • (a) in the case of a person required under subsection (1.1) to be registered in respect of a taxi business, the day the person first makes a taxable supply in Canada in the course of that business;

    • (a.1) in the case of a selected listed financial institution required under subsection (1.2) to be registered, the day that is prescribed;

    • (a.2) in the case of a person required under subsection (1.5) to be registered, the first day on which the person is required under section 211.22 to be registered under this Subdivision; and

    • (b) in any other case, the day the person first makes a taxable supply in Canada, otherwise than as a small supplier, in the course of a commercial activity engaged in by the person in Canada.

  • Marginal note:Registration permitted

    (3) An application for registration for the purposes of this Part may be made to the Minister by any person that is not required under subsection (1), (1.1), (1.2), (1.5), (2) or (4) to be registered, that is not required to be included in, or added to, the registration of a group under subsection (1.3) or (1.4) and that

    • (a) is engaged in a commercial activity in Canada;

    • (b) is a non-resident person who in the ordinary course of carrying on business outside Canada

      • (i) regularly solicits orders for the supply by the person of tangible personal property for export to, or delivery in, Canada, or

      • (ii) has entered into an agreement for the supply by the person of

        • (A) services to be performed in Canada, or

        • (B) intangible personal property to be used in Canada or that relates to

          • (I) real property situated in Canada,

          • (II) tangible personal property ordinarily situated in Canada, or

          • (III) services to be performed in Canada;

    • (c) is a listed financial institution resident in Canada;

    • (d) is resident in Canada and is

      • (i) a particular corporation, partnership or trust that owns units (as defined in subsection 186(0.1)) or holds indebtedness of a corporation that is, for the purposes of section 186, an operating corporation of the particular corporation, partnership or trust, or

      • (ii) a particular corporation that is acquiring, or proposes to acquire, all or substantially all of the issued and outstanding shares of the capital stock of another corporation, having full voting rights under all circumstances, if all or substantially all of the property of the other corporation is, for the purposes of section 186, property that was last manufactured, produced, acquired or imported by the other corporation for consumption, use or supply exclusively in the course of its commercial activities,

    • (e) is the recipient of a qualifying supply (as defined in subsection 167.11(1)), or of a supply that would be a qualifying supply if the recipient were a registrant, and the recipient files an election referred to in subsection 167.11(2) with the Minister in respect of the qualifying supply before the particular day that is referred to in paragraph 167.11(7)(a); or

    • (f) a corporation that would be a temporary member, as defined in subsection 156(1), in the absence of paragraph (a) of that definition.

  • Marginal note:Extended registration permitted for taxi business

    (3.1) Where a person who is a small supplier carrying on a taxi business files with the Minister in prescribed manner a request, in prescribed form containing prescribed information, to have the registration of the person apply in respect of all commercial activities engaged in by the person in Canada, the Minister may approve the request and shall thereupon notify the person in writing of the date from which the registration so applies.

  • Marginal note:Suppliers of prescribed property

    (4) Every person (other than a small supplier), whether or not resident in Canada, who, in Canada, whether through an employee or agent or by means of advertising directed at the Canadian market, solicits orders for the supply by the person of, or offers to supply, property that is prescribed property for the purposes of section 143.1 and that is to be sent by mail or courier to the recipient at an address in Canada

    • (a) shall be deemed, for the purposes of this Part, to be carrying on business in Canada; and

    • (b) is required to be registered for the purposes of this Part.

  • Marginal note:Form and contents of application

    (5) An application for registration, or an application to be added to the registration of a group, is to be filed with the Minister in prescribed manner and is to be made in prescribed form containing prescribed information.

  • Marginal note:Security

    (6) Every person who

    • (a) is not resident in Canada or would not, but for subsection 132(2), be resident in Canada,

    • (b) does not have a permanent establishment in Canada or would not, but for paragraph (b) of the definition permanent establishment in subsection 123(1), have such an establishment, and

    • (c) applies or is required to be registered for the purposes of this Part

    shall give and thereafter maintain security, in an amount and a form satisfactory to the Minister, that the person will pay or remit all amounts payable or remittable by the person under this Part.

  • Marginal note:Failure to comply

    (7) Where, at any time, a person referred to in subsection (6) fails to give or maintain, as required under that subsection, security in an amount satisfactory to the Minister, the Minister may retain as security, out of any amount that may be or may become payable under this Part to the person, an amount not exceeding the amount by which

    • (a) the amount of security that would, at that time, be satisfactory to the Minister if it were given by the person in accordance with that subsection

    exceeds

    • (b) the amount of security, if any, given and maintained by the person in accordance with that subsection,

    and the amount so retained is deemed

    • (c) to have been paid, at that time, by the Minister to the person, and

    • (d) to have been given, immediately after that time, by the person as security in accordance with subsection (6).

  • [NOTE: Application provisions are not included in the consolidated text
  • see relevant amending Acts and regulations.]
  • 1990, c. 45, s. 12
  • 1993, c. 27, s. 100
  • 1997, c. 10, ss. 54, 218
  • 2007, c. 18, s. 33
  • 2012, c. 31, s. 82
  • 2021, c. 23, s. 108
 
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