Global Minimum Tax Act (S.C. 2024, c. 17, s. 81)

Marginal note:Part 2 return

• 61 (1) A person that is liable to pay tax under Part 2 for a fiscal year must file in the prescribed form and manner with the Minister, on or before the GIR due date, a return for the fiscal year containing an estimate of the tax payable.

• Marginal note:Part 3 return

  (2) A person that is liable to pay tax under Part 3 for a fiscal year must file in the prescribed form and manner with the Minister, on or before the GIR due date, a return for the fiscal year containing an estimate of the tax payable.

• Marginal note:Canadian filing entity

  (3) If more than one person, in respect of an MNE group, is required to file a return under subsection (1) or (2) for a fiscal year, one of those persons that is resident in Canada may be appointed as the Canadian filing entity in the return, with the consent of the person, to file the return on behalf of all the persons that would, in the absence of subsection (4), be required to file the return for the fiscal year.

• Marginal note:Consequences — Canadian filing entity

  (4) If a Canadian filing entity is appointed, in respect of an MNE group, under subsection (3) to file a return with the Minister for a fiscal year,

  • (a) the Canadian filing entity must file the return — on behalf of all persons that are required to file returns under subsection (1) or (2), as the case may be, in respect of the MNE group for the fiscal year — on or before the GIR due date for the fiscal year; and

  • (b) if the Canadian filing entity does so, the return is deemed to have been filed at that time by each of those persons.

• Marginal note:Consequences — appointment

  (5) If a designated filing entity that is located in Canada, a designated local entity or a Canadian filing entity (each referred to in this subsection as an “appointed entity”) is appointed to act on behalf of one or more persons in respect of an MNE group for a fiscal year,

  • (a) the appointed entity must act on behalf of those persons for the purposes of this Part in respect of the fiscal year;

  • (b) any action taken by the appointed entity on behalf of those persons for the purposes of this Part in respect of the fiscal year is deemed to have been performed by those persons; and

  • (c) the Minister must direct to the appointed entity and those persons any communication for the purposes of this Part as it applies to those persons in respect of the fiscal year.

Marginal note:Demand for return

62 A person must, on demand sent by the Minister, file, within any reasonable time that may be specified in the demand, a return under this Act for any fiscal year that is designated in the demand.

Marginal note:Trustees, etc.

63 Every trustee in bankruptcy, assignee, liquidator, curator, receiver, trustee or committee and every agent or other person administering, managing, winding up, controlling or otherwise dealing with the property, business, estate or income of a person that has not filed a return for a fiscal year as required by this Division must file the return.

DIVISION 3Payments

Marginal note:Payments

64 The tax payable under this Act by a person in respect of a fiscal year must be paid on or before the GIR due date for the fiscal year.

Marginal note:Manner and form of payments

65 Every person that is required under this Act to pay tax or any other amount must make the payment to the account of the Receiver General for Canada in the manner and form prescribed by the Minister.

Marginal note:Part 2 — assessment of another constituent entity

• 66 (1) The Minister may assess a particular constituent entity of an MNE group that is located in Canada in respect of tax and other amounts payable under this Part or Part 2 by another constituent entity of the MNE group that is located in Canada. If such an assessment is made, the particular constituent entity is jointly and severally, or solidarily, liable with the other constituent entity to pay the amount assessed and this Part applies to the particular constituent entity in respect of the amount assessed, with any modifications that the circumstances require.

• Marginal note:Limitation

  (2) Subsection (1) does not limit the liability of the other constituent entity under any other provision of this Act or the liability of the particular constituent entity for the interest that the particular constituent entity is liable to pay under this Act on an assessment in respect of the amount that the particular constituent entity is liable to pay because of that subsection.

• Marginal note:Part 3 — joint and several, or solidary, liability

  (3) A particular constituent entity that is located in Canada is, in respect of tax and other amounts payable under this Part or Part 3 by another constituent entity of the same MNE group or a joint venture entity in respect of the same MNE group, jointly and severally, or solidarily, liable with the other constituent entity or joint venture entity to pay those amounts and this Part applies to the particular constituent entity in respect of those amounts, with any modifications that the circumstances require.

• Marginal note:Part 3 — joint and several, or solidary, liability of joint venture entities

  (4) A particular joint venture entity that is located in Canada is, in respect of tax and other amounts payable under this Part or Part 3 by another joint venture entity of the same joint venture group, jointly and severally, or solidarily, liable with the other joint venture entity to pay those amounts and this Part applies to the particular joint venture entity in respect of those amounts, with any modifications that the circumstances require.

• Marginal note:Partnerships — joint and several, or solidary, liability

  (5) A partnership and each member or former member of the partnership (other than a member that is a limited partner and is not a general partner) are jointly and severally, or solidarily, liable for

  • (a) the payment of all amounts that are required to be paid by the partnership under this Act before or during the period during which the member is a member of the partnership and, if the member is a member of the partnership when the partnership is dissolved, after the dissolution of the partnership, except that

    • (i) the member is liable for the payment of amounts that become payable before the period only to the extent of the property that is regarded as property of the partnership under the relevant laws of general application to partnerships in force in a province or other jurisdiction, and

    • (ii) the payment by the partnership or any member of the partnership of an amount in respect of the liability discharges their liability to the extent of that amount; and

  • (b) all other obligations under this Act that arose before or during that period for which the partnership is liable or, if the member was a member of the partnership at the time the partnership was dissolved, the obligations that arose upon or as a consequence of the dissolution.

• Marginal note:Partnerships — tiers

  (6) For the purposes of this section, a partnership or other person that is (or is deemed by this subsection to be) a member of a particular partnership that is a member of another partnership is deemed to be a member of the other partnership.

• Marginal note:Trusts — joint and several, or solidary, liability

  (7) A trust and all persons that are trustees of that trust at any time during a fiscal year are jointly and severally, or solidarily, liable for the payment of all amounts that are required to be paid by the trust under this Act for the fiscal year.

• Marginal note:Persons liable in respect of other entities

  (8) All persons that are, in respect of a constituent entity, liable to pay an amount under this Act for a fiscal year are jointly and severally, or solidarily, liable with the constituent entity to pay all amounts that are required to be paid by any of those persons or the constituent entity under this Act for the fiscal year.

• Marginal note:Discharge of liability

  (9) If a particular person and another person are jointly and severally, or solidarily, liable in respect of part or all of the liability of the other person under this Act, the following rules apply:

  • (a) a payment by the particular person on account of the particular person’s liability discharges, to the extent of the payment, the joint liability; and

  • (b) a payment by the other person on account of the other person’s liability discharges the particular person’s liability only to the extent that the payment operates to reduce the particular person’s liability to an amount less than the amount in respect of which the particular person is jointly and severally, or solidarily, liable.

Marginal note:Definition of transaction

• 67 (1) In this section and section 102, a transaction includes an arrangement or event.

• Marginal note:Tax liability — property transferred not at arm’s length

  (2) If at any time a person transfers property, either directly or indirectly, by means of a trust or by any other means to another person with which the transferor was not, at that time, dealing at arm’s length, the transferee and transferor are jointly and severally, or solidarily, liable to pay under this Act an amount equal to the lesser of

  • (a) the amount determined by the formula

    A − (B − C)

    where

    A

    is the amount, if any, by which the fair market value of the property at that time exceeds the fair market value at that time of the consideration given by the transferee for the transfer of the property,

    B

    is the total of all amounts, if any, the transferee was assessed under paragraph 97.44(1)(b) of the Customs Act, subsection 325(2) of the Excise Tax Act, subsection 160(2) of the Income Tax Act, subsection 297(3) of the Excise Act, 2001, subsection 161(1) of the Greenhouse Gas Pollution Pricing Act, subsection 80(3) of the Underused Housing Tax Act, subsection 150(4) of the Select Luxury Items Tax Act or subsection 52(5) of the Digital Services Tax Act in respect of the property, and

    C

    is the amount paid by the transferor in respect of the amount determined for B, and

  • (b) the total of all amounts each of which is

    • (i) an amount that the transferor is liable to pay under this Act in respect of

      • (A) the fiscal year that includes that time, or

      • (B) any preceding fiscal year, or

    • (ii) interest or penalties (other than amounts referred to in subparagraph (i)) for which the transferor is liable at that time.

• Marginal note:Limitation

  (3) Subsection (2) does not limit the liability of the transferor under any other provision of this Act or the liability of the transferee for the interest that the transferee is liable to pay under this Act on an assessment in respect of the amount that the transferee is liable to pay because of that subsection.

• Marginal note:Fair market value of undivided interest or right

  (4) For the purposes of this section, the fair market value at any time of an undivided interest in, or for civil law an undivided right in, a property that is expressed as a proportionate interest or right in that property is deemed to be equal to the same proportion of the fair market value of that property at that time.

• Marginal note:Assessment

  (5) Despite subsection 85(1), the Minister may at any time assess a transferee in respect of any amount payable because of this section, and this Part applies to the transferee with any modifications that the circumstances require.

• Marginal note:Rules applicable

  (6) If a transferor and transferee become, because of subsection (2), jointly and severally, or solidarily, liable in respect of part or all of the liability of the transferor under this Act, the following rules apply:

  • (a) a payment by the transferee on account of the transferee’s liability discharges, to the extent of the payment, the joint liability; and

  • (b) a payment by the transferor on account of the transferor’s liability discharges the transferee’s liability only to the extent that the payment operates to reduce the transferor’s liability to an amount less than the amount in respect of which the transferee is, because of subsection (2), jointly and severally, or solidarily, liable.

• Marginal note:Anti-avoidance rules

  (7) For the purposes of subsections (1) to (6), if a person (referred to in this section as the “transferor”) transfers property, either directly or indirectly, by means of a trust or by any other means whatever to another person (referred to in this section as the “transferee”) in a transaction or as part of a series of transactions, the following rules apply:

  • (a) the transferor is deemed to not be dealing at arm’s length with the transferee at all times in the transaction or series of transactions if

    • (i) the transferor and the transferee do not deal at arm’s length at any time during the period beginning immediately before the transaction or series of transactions and ending immediately after the transaction or series of transactions, and

    • (ii) it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the transferee and the transferor under this section for an amount payable under this Act;

  • (b) an amount that the transferor is liable to pay under this Act (including, for greater certainty, an amount that the transferor is liable to pay under this section, regardless of whether the Minister has made an assessment under subsection (5) in respect of that amount) is deemed to have become payable in the fiscal year in which the property is transferred, if it is reasonable to conclude that one of the purposes of the transfer of the property is to avoid the payment of a future amount payable under this Act by the transferor or transferee; and

  • (c) the amount determined for A in paragraph (2)(a) is deemed to be the greater of

    • (i) the amount otherwise determined for A in paragraph (2)(a) without reference to this paragraph, and

    • (ii) the amount determined by the formula

      A − B

      where

      A

      is the fair market value of the property at the time of the transfer, and

      B

      is

      • (A) the lowest fair market value of the consideration (that is held by the transferor) given for the property at any time during the period beginning immediately before the transaction or series of transactions and ending immediately after the transaction or series of transactions, or

      • (B) if the consideration is in a form that is cancelled or extinguished during the period referred to in clause (A),

        • (I) the amount that is the lower of the amount determined under clause (A) and the fair market value during that period of any property, other than property that is cancelled or extinguished during the period, that is substituted for the consideration referred to in clause (A), or

        • (II) if no property is substituted for the consideration referred to in clause (A), other than property that is cancelled or extinguished during the period, nil.

Marginal note:Payment in Canadian dollars

• 68 (1) Every person that is required under this Act to pay an amount to the Receiver General for Canada must pay the amount in Canadian dollars.

• Marginal note:Exchange rate

  (2) If an amount payable by a person for a fiscal year under this Act would, in the absence of this subsection, be denominated in a currency other than the Canadian dollar, that amount is to be converted to Canadian dollars using the average for the fiscal year of the daily rates of exchange quoted by the Bank of Canada, or if there is no daily rate quoted by the Bank of Canada for a particular day, a daily rate of exchange that is acceptable to the Minister, in respect of the two currencies.

• Marginal note:Exception

  (3) The Minister may, at any time, waive the requirement under subsection (1) and accept a currency other than Canadian dollars. If such a waiver is granted, the amount is to be converted from Canadian dollars to the other currency using a rate of exchange that is acceptable to the Minister.

Marginal note:Definition of electronic payment

• 69 (1) In this section, electronic payment means any payment to the Receiver General for Canada that is made through electronic services offered by a person described in any of paragraphs (2)(a) to (d) or by any electronic means specified by the Minister.

• Marginal note:Electronic payment

  (2) Every person that is required under this Act to pay an amount to the Receiver General for Canada must, if the amount is $10,000 or more, make the payment by way of electronic payment, unless the person cannot reasonably pay the amount in that manner, to the account of the Receiver General for Canada at or through

  • (a) a bank;

  • (b) a credit union;

  • (c) a corporation that is authorized under the laws of Canada or a province to carry on the business of offering its services as a trustee to the public; or

  • (d) a corporation that is authorized under the laws of Canada or a province to accept deposits from the public and that carries on the business of lending money on the security of real property or immovables or investing in indebtedness on the security of mortgages on real property or hypothecs on immovables.